labour law main

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LABOUR LAW IN INDIA: STRUCTURE AND WORKING

Debi S. Saini*

I. INTRODUCTION

Especially after the Second World War, labour law has enjoyed a significant place in developed

as well as developing economies. It is epected to wor! as an important instrument of welfare

state. It has helped countries to lay down foundations of societies as well as some of the basic

postulates of organi"ational governance. #he subject has occupied a prominent place in general

economic and social discourse as well. $abour law%%especially industrial relations law%%can

also be seen as an instrument of maintaining some !ind of balance between incomes of people

as also a medium of securing dignity of wor!life to wor!ing people. &ost nations view labour

rights as fundamental for ensuring fairness in the carrying out of the labour process. In actuality,

labour rights reflect some !ind of compromise between notions of productivity, efficiency and

freedom of contract on the one hand and social justice and labour standards on the other.

'fter Independence from the colonial rule in ()+, the Indian state consciously chose thepath of passing labour legislations on different spheres of wor!. ' number of such laws wereenacted with the active role of trade union leadership. #his branch of law has come to beaccepted as distinct from rest of the Indian legal system. or eample, most labour laws inthe country envisage -uasijudicial bodies for epeditious settlement of labour claims underdifferent labour laws. India adopted a system of ive/ear plans for planning its economicdevelopment. &ost fiveyear plans have made particular mention of promoting growth withsocial justice0 and labour laws were given a prominent place in this regard. #he Indian

judiciary has played a salutary role in progressive interpretation of these laws.

#his chapter attempts to analy"e the structure of Indian labour law in the overall contet of the

notion of social and economic justice as enshrined in the 1onstitution of India. It also focuses on the

wor!ing of the labour law framewor! in terms of its stated goals as also the changing needs of a

globali"ing economy. It deals with -uestions, among others2 the constitutional contet of labour law0

the structure and functioning of different branches of labour law i.e. law of wor!ing conditions, labour

relations law, law of wages and monetary benefits, law of social security0 and a review of the wor!ing

of these laws. While discussing the wor!ing of these laws in the last part, the chapter focuses,

among others, on the implementation of labour laws and the role being played in this regard by the

state and its agencies. #he concluding part discusses how the reali"ation of labour law objectives

can be made more realistic from the view point of the constitutional promise of socioeconomic

justice, as also the changing contet of the employer and employees3 power position.

II. CONSTITUTIONAL FRAMEWORK AND LABOUR LAW

#he 1onstitution of India % the superordinate law of the land % guides all legislative, eecutive and

judicial actions in the country. #he Seventh Schedule of the constitution envisages distribution of

* 4rofessor 5 1hairperson%%6uman 7esource &anagement 'rea, &anagement Development Institute,

&ehrauli 7oad, 8urgaon(99::(, 6aryana.

(


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legislative powers between central and state legislatures on different matters. #he Schedule contains

three lists % 1entral $ist ;$ist I. #he

former is titled, the undamental 7ights and the latter, the Directive 4rinciples of State 4olicy. #he

undamental 7ights are modeled after the 'merican =ill of 7ights. #heir violation can be challenged

though the writ jurisdiction of the Supreme 1ourt and the 6igh 1ourts. #hese rights limit the power of

the legislature to enact laws. 'mong others, the undamental 7ights pertain to right to e-uality

before law, along with rights to particular freedoms. #hese particular freedoms include speech0

association0 movement throughout the territory of India0 residence0 profession, trade and business0

protection of life and personal liberty and religion. #he 1onstitution confers a fundamental 7ight on

children, as per which it prevents employment of children below ( years of age in ha"ardous

employments. It also prevents traffic in human beings and employment of forced labour.(

#he 4reamble of the 1onstitution is also an important source of power to the legislature for enacting

laws for the protection of labour. It promises to secure to the people ?justice, social, economic and

political0 liberty of thought, epression, belief, faith and worship0 e-uality of status and of opportunity

@.A #he Directives 4rinciples of State 4olicy as envisaged in 4art I> of the 1onstitution are not

enforceable in any court of law. =ut they have been held by the Supreme 1ourt of India to be

Bnevertheless fundamental in the governance of the country3. 'nd, the judiciary in general has time

and again epressed its advice to the 8overnmentClegislature to apply them in ma!ing laws. It has

often ta!en the support of this chapter in holding the constitutional validity of many labour laws.

' reading of 4art I> of the constitution and its 4reamble helps to !now the basic philosophy of the1onstitution. #he Directive 4rinciples contained in 4art I> represent certain !ey values which are tobe rooted in the ?reconstruction of Indian society and 8overnment along lines of a modern welfare

stateA ;8alanter, ())


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and humane conditions of wor! and maternity relief0Gliving wage

+, participation of wor!ers

in management of industries0free and compulsory education for children0

)and to improve

public health.(:

Interestingly, much of the development of labour jurisprudence in the country owes to theabovementioned provisions contained in 4art I>. #his part in a way legitimi"es the labour3s

demands raised through demand charters submitted to managements. While deliveringmany judgements, the judiciary has often reminded the eecutive and the legislature toenact legislations that provide for basic needs of the people and to enforce them as per thespirit in which they have been created. #he directive principles are considered so importantthat some jurists have described them as the ?soul of the 1onstitutionA ;Dhavan, ())2 ii


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Industrial Disputes 'ct, ()+

Industrial Employment ;Standing Hrders< 'ct, ()G

InterState &igrant Wor!men ;7egulation of Employment 5 1onditions of Service< 'ct, ()+)

$abour $aws ;Eemption from urnishing 7eturns 5 &aintaining 7egisters by 1ertain

Establishments< 'ct,

() &aternity =enefit'ct, ()G( &ines 'ct, ()F9

&inimum Wages 'ct, ()

&otor #ransport Wor!ers 'ct, ()G(

Jational 1ommission for Safai Karamcharis 'ct,

()) 4ayment of =onus 'ct, ()GF

4ayment of 8ratuity 'ct, ()+9

4ayment of Wages 'ct, ()G

4lantations $abour 'ct, ()F(

4ublic $iability Insurance 'ct, ())(

Sales 4romotion Employees ;1onditions of Service< 'ct,()+G #rade Lnion 'ct, ()9GWee!ly 6olidays 'ct, ()

Wor!mens 1ompensation 'ct, ()9

$egislation is only one of the sources of labour law. 'lmost each labour legislations is

supplemented by a commensurate secondary legislation, which consists of 7egulations and

7ules made by the appropriate 8overnmentM1entral as well as state%%to give effect to the

legislations or to administer them. 1ase law in the form of decisions of the Supreme 1ourt and

various 6igh 1ourts are also a very important source of labour law. #housands of such

decisions have been delivered0 many of them have been overruled to bring in fresh perspectives

of the legal position concerned. urther, terms and conditions of a labour contract could be

derived from a collective bargaining contract or an individual contract between employer and

employee. International standards laid down by bodies li!e International $abour Hrgani"ation

;I$H< too have been referred by especially the higher judiciary to support its decisions0 thus they

are considered as important sources of labour law in appropriate situations.

III. THE LAW OF WORKING CONDITIONS

#here are several classes of wor! organi"ation where people are employed. #hese include2

factories, establishments, shops, mines, plantations, etc. 'griculture too is a major activity,

which employs the largest number of wor!ers in India0 but most parts of agricultural operations

are not regulated through law. #he issue of conditions of employment needs state attention in

case of contract wor!ers0 they are normally made to wor! in difficult wor! environment. Interstate migrant wor!ers and child wor!ers too are highly susceptible to eploitation. Indian state

has enacted legislation for regulating conditions of wor! of such categories of wor!ers. &ost of

the provisions of laws regulating conditions of wor! relate to health, safety and welfare of

wor!ers. #he judiciary has often epanded the scope of these provisions by giving them liberal

interpretation. In doing so, it has repeatedly referred to the Directive 4rinciples of State 4olicy

stated in the previous section. We may discuss these legislations as under2


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The Factories Act !"#$

#he actories 'ct, () regulates the wor! conditions of most wor!ers employed in the

organi"ed manufacturing sector in India. #he first legislation on factories in India dates bac! to

((. #en years later it was replaced by the Indian actories 'ct, ()(. Soon after

independence the actories 'ct, () was enacted to further humani"e the conditions of wor! infactories. #he word Bfactory3 has been defined as premises or precincts where a manufacturing

process is carried on by (: or more wor!ers with the aid of power or by 9: or more wor!ers

without the aid of power. #he word manufacturing process has been given a very wide definition0

and includes even processes such as repairing of movable things for the purpose of sale or

disposal0 and pumping of oil, water, etc. #he word wor!er too has a wide definition and includes

all persons involved in the manufacturing process0 the scope of this definition was further

widened in ()+G to include wor!ers employed through or by contractor.

#his legislation mainly deals with the following2 provisions related to health, welfare, and safety0

wor!ing hours for adults and children0 and protection to women and children against certain ha"ards.

#he 'ct also provides for registration and licensing of factories0 obtaining the approval of factory

sites0 obligations of occupier of a factory0 and provision of annual leave with wages to wor!ers. #he

'ct provides a maimum of nine hours of wor! per day with a rest interval of at least half an hour

after five hours of wor!. 'lso provided is a daily spread over of not more that ten and a half hours.

Hvertime wor! in a factory has to be paid double the rate. #he 'ct provides for a wee!ly holiday.

1hildren below ( years of age are not permitted to be employed in any factory. #he health

provisions deal with, among others, issues li!e cleanliness, disposal of wastes, ventilation, dust and

fumes, artificial humidification, over crowding, drin!ing water, latrines and urinals and spittoons.

4rovision has also been made for welfare facilities li!e washing, storing and drying of clothes, places

of sitting, rest shelters and lunch rooms, first aid appliances, canteens and crNches.

Safety provisions include, among others, detailed specification of space to be provided for every

person wor!ing0 installations of and wor!ing on machines0 hoists, lifts, lifting machines, chains,ropes, etc.0 pits sumps, opening in floors0 carrying of weights0 precautions in case of fire. In (),

the =hopal 8as disaster too! place at a factory of the Lnion 1arbide $td. in =hopal, &adhya

4radesh. #his led to !illing of nearly ::: people and disabling several thousand. #his tragedy

showed holes in the safety provisions of the actories 'ct, (). #his led to an amendment in the

'ct in ()+. 1onse-uently, chapter I>' was added to the 'ct which has been titled2 4rovisions

7elating to 6a"ardous 4rocesses. #his chapter provided new sections from (' to (6. #wo new

schedules were added to the 'ct in the form of the irst Schedule and the Second Schedule. #he

irst Schedule provides a list of 9) industries that involve ha"ardous processes. #he Second

Schedule provides the permissible levels of certain chemical substances in wor! environment.

4rovisions of the new chapter I>' relate to, among others, constitution of site appraisal committees,

compulsory disclosure of certain information by the occupier, permissible limits of eposure ofchemical and toic substances, wor!ers3 participation in safety management, and rights of wor!ers to

be warned against imminent danger. #he amended 'ct also gives a right to every wor!er ;section

((('< to obtain from the occupier information related to wor!ers3 health and safety at wor! and get

trained in health and safety matters at the epense of the employer.

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1ertain authorities li!e inspectors, welfare officers, certifying surgeons have been provided, who

are epected to ensure the implementation of the 'ct. 4enalties for violation of the 'ct have

been substantially hi!ed by the ()+ amendment to the 'ct. or eample, the general penalty

for offences can be imprisonment up to two years and a fine of 7s. one hundred thousand.

The Sho%s a&' Esta()ish*e&ts )e+is)atio&

India does not have any central legislation for shops and establishments. It has been left to be

enacted by the state legislature. Each state has enacted its own legislation, and has framed its own

rules under the 'ct. &ost state legislations have similar provisions, with minor differences here and

there. #his area of wor! pertains to mostly wor!ers in the unorgani"ed sector, as most shops and

establishments are small. 6owever, larger establishments are also covered. #hose units which do

not fall in the definition of the actories 'ct, () due to less number of people employed are

covered under the Shops 5 Establishments law. &ostly the state governments can eempt, either

permanently or for a specified period, any establishments from all or any provisions of its shops and

establishment legislation. It is applicable to all persons employed in an establishment with or without

wages, ecept the members of the employers family. #he 'ct provides for compulsory registration of

shopCestablishment concerned. 4rovisions related to hours of wor! per day and wee! as well as the

guidelines for spreadover, rest interval, opening and closing hours, closed days, national and

religious holidays, overtime wor!, etc. are usually there in each such law. #he Delhi Shops and

Establishments 'ct ()FF has etended the provisions of wor!men3s 1ompensation 'ct ()9 to all

wor!ers covered by that 'ct. &ost 'cts are administered by inspectors.

The Mi&es Act !",-

#he &ines 'ct, ()F9 contains provisions for measures relating to the health, safety and welfare of

wor!ers employed in mines. 'ccording to the 'ct, the term mine means any ecavation where any

operation for the purpose of searching for or obtaining minerals has been or is being carried on and

includes all borings, bore holes, oil wells and accessory crude conditioning plants, shafts, opencast

wor!ings, conveyors or aerial ropeways, planes, machinery wor!s, railways, tramways, slidings,

wor!shops, power stations, etc. or any premises connected with mining operations and near or in

the mining area. 'mong others, the 'ct provides for supply of drin!ing water, conservancy, and

medical appliances. #here is provision also for giving notice to appropriate authorities in case of

accidents and certain diseases. Hver time rate has been provided to be twice the daily wage both for

wor!ers wor!ing above and below the ground wor!. Women wor!ers are not allowed to wor! below

the ground. ' person below the age of ( years is not allowed to wor! in a mine. =ut apprentices

and other trainees not below the age of (G years may be allowed to wor! under proper supervision

by the manager. 4rovision has also been made for annual leave with wages. Such leaves are to be

calculated at the rate of one day for every fifteen days3 wor!.

#he 'ct is administered by inspectors and certifying surgeons. Since it is fully under thecentral jurisdiction, the central &inistry of $abour and Employment through the Directorate8eneral of &ines Safety ;D8&S< has been entrusted the responsibility for administering thislaw. D8&S conducts inspections and in-uiries, and issues competency tests for thepurpose of appointment to various posts in the mines. It also organi"esseminarsCconferences on various aspects of safety of wor!ers.

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The )a&tatio&s La(o/r Act !",!

#he 4lantation $abour 'ct, ()F( regulates the conditions of wor! for plantations labour. It applies to

tea, coffee, rubber, and cinchona plantations. #he state governments may apply it to any other

plantation. 'll plantations are re-uired to be registered with a registering officer. It mainly provides for

health and welfare measures. 'ccording to the 'ct, the term plantation means ?any plantation towhich this 'ct, whether wholly or in part, applies and includes offices, hospitals, dispensaries,

schools, and any other premises used for any purpose connected with such plantation@A.

'mong others, the 'ct provides for drin!ing water, conservancy, medical facilities, canteen, crNches,

recreational facilities, educational facilities, and housing for wor!ers and their families. 'lso, there is

provision for supply of umbrellas, blan!ets and rain coats. Employers are obliged to provide and

maintain necessary housing accommodation for every wor!er ;including his family< residing in

plantation0 and for every wor!er and family residing outside the plantation, who has put in si months

of continuous service in the plantation and has epressed a desire to reside in the plantation.

1hildren under (9 years of age are prohibited for employment in any plantation. 1hildren of wor!ers

between the age of G and (9 have to be provided free educational facilities. #he 'ct regulates

wor!ing hours, provides for a wee!ly holiday, and leave with wages. It also provides for appointment

of suitable inspecting, medical or other staff for the purpose of securing compliance with various

provisions of the 'ct. #he 'ct is administered by inspectors and certifying surgeons.

The Motor Tra&s%ort Wor0ers Act !"1!

#he &otor #ransport Wor!ers 'ct, ()G( see!s to regulate the conditions of wor! of motor

transport wor!ers. #he 'ct applies to every motor transport underta!ing employing five or more

motor transport wor!ers. #he State 8overnment has been authori"ed to etend the 'ct to any

motor transport underta!ing employing less than five motor transport wor!ers. It can do so after

giving notification in the Hfficial 8a"ette. 'ccording to the 'ct, a ?motor transport underta!ing

has been defined as ?an underta!ing engaged in carrying passengers or goods or both by road

for hire or reward and includes a private carrier.A Every employer of a motor transport

underta!ing to which this 'ct applies is obliged to register such underta!ing under this 'ct.

#he welfare and health provisions to be made available to all wor!ers include2 canteens where (::

or more motor transport wor!ers are employed, restrooms where wor!ers are re-uired to halt at

night, uniforms, and medical and firstaid facilities. Jo adult motor transport wor!er can be re-uired

or allowed to wor! for more than eight hours in any day and fortyeight hours in any wee!. #he hours

of wor! can not spread over more than (9 hours in any day. 4rovision has been made for wee!ly

day of rest and compensatory day of rest. 1hildren are prohibited to wor! as motor transport wor!er.

'lso, no adolescent shall be employed or re-uired to wor! as a motor transport wor!er in any motor

transport underta!ing for more than si hours a day including rest interval of halfanhour0 and

between the hours of (: 4.&. and G '.&. Hvertime has to be paid at the rate of twice the ordinary

rate of wages. 'nnual leave with wages are payable on similar pattern as in case of factory wor!ers.

#he 'ct is administered by inspectors and certifying surgeons.

The Co&tract La(o/r 2Re+/)atio& 3 A(o)itio&4 Act !"56

+


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1ontract wor!ers are subjected to intense eploitation by contractors as well as the principalemployers. #hese wor!ers are generally engaged in agricultural operations, plantation,construction industry, ports 5 doc!s, oil fields, factories, railways, shipping, airlines, roadtransport, etc. #he 1ontract $abour ;7egulation 5 'bolition< 'ct, ()+: ;1$'< was enacted toregulate employment of labour employed by contractors so as to provide some sense of

security to wor!ers wor!ing with them. It also regulates the conditions of wor! of suchwor!ers. #he 'ct provides for registration of all employers covered by the 'ct, and licensingof contractors and subcontractors. It re-uires payment of wages by the contractor in thepresence of the representative of the principle employer, who has to certify that correctpayment has been made in his presence. #here is provision for constitution of 1entral andState 'dvisory =oards for advising the appropriate government for administering the 1$'.

1hapter > of the 1$' provides for certain welfare and health measures for contract labour.In case (:: or more contract labourers are employed a canteen has to be provided. Wherecontract labour is supposed to halt at night, rest rooms have to be provided. irstaidfacilities have to be readily made available. Hther welfare facilities to be provided include2

wholesome drin!ing water0 sufficient number of latrines and urinals0 and washing facilities.

#he 'ct is implemented both by the 1entre and the State 8overnments. #he 1entral

8overnment has jurisdiction over establishments li!e railways, ban!s, mines, etc. and the

State 8overnments have jurisdiction over units located in that state.

The I&ter7State Mi+ra&t Wor0*e& 2Re+/)atio& o8 E*%)o9*e&t 3 Co&'itio&s o8

Serice4 Act !"5"

#he InterState &igrant Wor!men ;7egulation of Employment and 1onditions of Service< 'ct,

()+) ;IS&W'< was enacted to protect the rights of migrant wor!ers, and thus safeguard theirinterest. It regulates their employment and provides for minimum conditions of wor! for this

category of wor!ers. It applies to every establishment and the contractor that employs five ormore interstate migrant wor!men. 'mong others, it provides for compulsory registration of

principal employers and licensing of contractors. #he 'ct fies responsibility on the contractor

and the principal employer for payment of wages. It is provided that all liabilities of migrant

labourers are deemed to be etinguished after the completion of the period of employment.((

#he 'ct has provision for issue of 4ass=oo! to every interstate migrant wor!man with fulldetails, payment of displacement allowance, payment of journey allowance includingpayment of wage during the period of journey, suitable residential accommodation, medicalfacilities and protective clothing, payment of wages, e-ual pay for e-ual wor! irrespective ofse, etc. #he 'ct fies the responsibility of wage payment on the contractor as well as the

principal employer. #he 'ct is administered by inspectors.

Chi)' La(o/r 2A(o)itio& a&' Re+/)atio&4 Act !"$,

Jo enlightened society can allow its children to be subjected to wor! at a tender age. World over

child labour is a serious issue for human right activists. #here is considerable pressure on states for

its complete abolition. Indian situation on employment of child labour is -uite bad. Even as the best


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friends of children were waiting for compulsory primary education to become a reality and abolish

child labour altogether, the Indian 4arliament passed the 1hild $abour ;4rohibition and 7egulation

India had no social security system before the =ritish Indian 8overnment enacted the Wor!men3s

1ompensation 'ct ()9 ;W1'


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commissioner distributes the amount of compensation to the dependents as defined under the

'ct in his discretion. In case of persons under legal disability, the commissioner may invest the

money the way he li!es. #he commissioner also advises the wor!ers about the available course

of action to a wor!man in different situations. #he 'ct does not allow contracting out. In case the

employer does not pay compensation as per the 'ct, the wor!man concerned can ma!e an

application to the commissioner within a period of two years from the date of the accident. #hecommissioner can recover the amount due to a wor!er as arrears of land revenue.

The E*%)o9ees@ State I&s/ra&ce Act !"#$

#he !ey social insurance law in India is the Employees3 State Insurance 'ct () ;ESI'


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approval of the ESI1 arrange for their medical treatment at clinics of private medical practitioners.

#he State 8overnment also enters into an agreement with the ESI1 in regard to the nature and

scale of the medical treatment that should be provided by it to the insured persons and their families.

1ash benefits payable under the 'ct are not liable to attachment in relation to payment of

any debt by the employee. 'ny dispute under the provisions of the 'ct can be decided bythe Employees3 Insurance 1ourt and not by any civil court. #he 'ct provides for penalties

and imprisonment for various offences.

The E*%)o9ees@ roi'e&t F/&' 2a&' Misce))a&eo/s roisio&s4 Act !",-

'long with the ESI', the Employees3 4rovident und and &iscellaneous 4rovisions 'ct ()F9 ;E4

'ct< too is a !ey social security legislation in India. It applies to any factory relating to any industry

specified in Schedule I to the 'ct in which 9: or more persons are employed, and also to other

establishments employing 9: or more persons which may be specified by the central government by

a notification in this regard. 's on ( &arch 9::F, this includes (: industries0 and covers (.((

million wor!ers under the Employees3 4rovident und Scheme ;E4S< both in eempted anduneampled sectors. 'n all, :,( establishments are covered under this 'ct. #he 'ct covers

employees getting salaries up to 7s. G,F:: per month. or wor!ers employed in coal mines, the

relevant law is the 1oal &ines 4rovident und and &iscellaneous 4rovisions 'ct ().

#he E4 'ct provides for creation of three important schemes. #hese are2 the 4rovident und

Scheme0 the Depositlin!ed Insurance Scheme0 and the Employee 4ension Scheme. #he

Employees3 4rovident und Scheme ;E4S< is a !ind of savings and pension scheme in which the

employees as well as their employers pay regular contribution into a fund. Such contributions are

credited to the accounts of the subscribers concerned. #he fund is invested as per the norms laid

down in this regard. 'nnual interest is credited to the account of the employee on the total amount of

provident fund ;4< deposit in hisCher account. When an employee superannuates or dies or see!sretirement, the balance standing to the account is refunded.

#he Employees3 4ension Scheme ())F ;E4S< provides for pension on superannuation, retirement,

permanent total disablement and death. #he Employees3 Deposit$in!ed Insurance Scheme ()+G

;ED$IS< provides an insurance cover to the persons covered without payment of any premium for

this purpose. #he insurance cover has been lin!ed to the average balance in the provident fund

account of the deceased during (9 months preceding his or her death subject to a ceiling.

#he Employees3 4rovident und Scheme ;E4S< is financed through contributions from employees

with matching contributions from employers. #he normal rate of contribution to the provident fund by

the employees and the employers prescribed under the E4 'ct earlier was (: per cent of wages

for unnotified industries and establishments. #his rate has been hi!ed to (9 per cent of wages for

employees wor!ing in notified(

industries and establishments employing F: or more persons.

#he E4S derives its financial resource from and out of the contributions payable by the employer in

each month under the E4 'ct and the rules framed under it. 1ontribution representing . per

cent of the employees3 pay has to be remitted by the employer to the pension fund #he 1entral

()


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8overnment also contributes to the 4ension und at the rate of (.G per cent of the employee3s

pay. Jeither the employer nor the employee is re-uired to ma!e any additional contribution.

#he 'ct is administered by the Employees 4rovident und Hrgani"ation, which wor!s under the

overall supervision and direction of the 1entral =oard of #rustees and 1ommittees. #he 1entral

4rovident und 1ommissioner ;141< is the 1hief Eecutive Hfficer of the Hrganisation. #he=oard of #rustees ;=H#< is a body corporate having perpetual succession and a common seal.

Lnli!e the ESI1, however, the =oard of #rustees of the E4H enjoys much less autonomy0 the

control of the 1entral 8overnment in its wor!ing is much stronger.

1=H# is empowered to appoint such officers and employees as it may consider necessary for the

efficient administration of the schemes under the 'ct. #hese officers have been conferred -uasi

judicial powers. #hus, they conduct in-uiry as they deem necessary to determine the liability of the

employer and ma!e order on the basis of the in-uiry so conducted. #hese authorities under the 'ct

have a statutory duty to see that the provisions of the 'ct are complied with.

Mater&it9 Be&e8it Act !"1!

#he &aternity =enefit 'ct, ()G( ;&='< see!s to regulate the employment of women wor!ers in

certain establishments for certain period before and after child birth. #his law provides that all

women employees shall be paid maternity benefit in case of child birth, miscarriage or sic!ness

arising out of pregnancy. ' wor!er when governed by the ESI 'ct cannot claim maternity relief

under the &aternity =enefit 'ct. #his 'ct also envisages a unilateral responsibility of the

employer and the scheme contains no insurance element in it. It applies to factories, mines,

circus, plantations, and shops and establishments employing (: or more persons. 6owever, in

case a women employee is covered by the ESI 'ct, then this 'ct does not apply to her. #he

application of this legislation can be etended to other establishments by a State government

after the prior approval of the central government. #he central government is responsible for

administering this 'ct in mines and circuses, and the state governments are responsible for itsadministration in factories, plantations and other establishments. #he central 'ct has been

adopted in nearly all the states in the country ecept &anipur, Jagaland()

and Si!!im.

#he maimum periods for which the maternity benefit is available to any woman wor!er is (9

wee!s of which not less than si wee!s shall precede the date of her epected delivery. In case

of miscarriage, a woman is entitled to leave with wages at the rate of maternity benefit for a

period of si wee!s immediately following the day of her miscarriage. In case of illness arising

out of pregnancy, delivery, premature birth of a child or miscarriage, the woman is entitled to

leave with wages at the rate of maternity benefit for a maimum period of one month.

' woman whose maternity benefit is improperly withheld may ma!e a complaint to theinspector. Inspectors have been conferred powers, including -uasijudicial. If the inspectorafter ma!ing the in-uiry is satisfied that the benefit was improperly withheld, he may directthe payment of maternity benefit in accordance with his orders. 'n appeal over the decisionof the inspector lies to the prescribed authority in this regard. 'ny amount payable under the

'ct is recoverable by the collector in the same manner as an arrear of land revenue.

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The a9*e&t o8 Grat/it9 Act !"5-

4ayment of gratuity is another important social security benefit in India. 8ratuity is a lump sum

payment which is payable under the 4ayment of 8ratuity 'ct ()+9 ;48'


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Cha%ter ;7A a&' ;7B o8 I&'/stria) Dis%/tes Act !"#5


23/27

's such, India has no system of providing social security in the contingencies ofunemployment. #his is so despite the Bright to wor!3 having been provided for in the1onstitution as a Directive 4rinciple of State 4olicy. 4erhaps, the unemployment and theunderemployment situation in the country is so acute that no government has gone into thefeasibility of introducing a system of unemployment insurance.

#he Industrial Disputes 'ct ()+ ;ID'< provides some semblance of unemployment security in

a limited sense under its provisions relating to lay off, retrenchment, closure, and transfer of

industrial establishments. #he idea underlying the retrenchment and closure compensation is to

help the wor!ers to maintain themselves until they are able to find alternative jobs.

Reie< o8 Socia) Sec/rit9 )a

Date post:	13-Apr-2018
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