Statutory Measures for Employee Protection and Welfare in India The preamble to our Indian Constitution promises justice

social, economic and political. It also stresses Equality of status and of opportunity. Article 23 of the Constitution prohibits traffic in human beings and forced labour. Article 24 prohibits employment of children in factories. The article 38 and 39 spelt under Directive Principles of State Policy are now enforceable as per the dictums laid by our Supreme Court. Constitution of India, Article 38: State to secure a social order for the promotion of welfare of the people:

The State shall strive to promote the welfare of the people by securing and protecting as effectively as it may a social order in which justice, social, economic and political, shall inform all the institutions of the national life. The State shall, in particular, strive to minimize the inequalities in income, and endeavor to eliminate inequalities in status, facilities and opportunities, not only amongst individuals but also amongst groups of people residing in different areas or engaged in different vocations.

Constitution of India, Article 39: Certain principles of policy to be followed by the State. The State shall, in particular, direct its policy towards securing

That the citizens, men and women equally, have the right to an adequate means to livelihood; That the ownership and control of the material resources of the community are so distributed as best to sub serve the common good; That the operation of the economic system does not result in the concentration of wealth and means of production to the common detriment ; That there is equal pay for equal work for both men and women; That the health and strength of workers, men and women, and the tender age of children are not abused and that citizens are not forced by economic necessity to enter avocations unsuited to their age or strength That children are given opportunities and facilities to develop in a healthy manner and in conditions of freedom and dignity and that childhood and youth are protected against exploitation and against moral and material abandonment.

Through social security and social justice are spelt in our Constitution, they are never put into practice thanks to our Executives who only pretend to implement the programmes of the State. Some of the important Statutory Welfare measures given by the government are as follows:

(i) The Factories Act of 1948 (ii) The Employees State Insurance Act 1948 (iii) The payment of Wages Act 1936 (iv) The Workmens Compensation Act 1923 (v) The Employees Provident Funds and Miscellaneous Provisions Act 1952. (vi) The Payment of Gratuity Act, 1962 (vii) The Maternity Benefit Act, 1961 1. FACTORIES ACT OF 1948 Purpose of this Act: An act to consolidate and amend the law regulating labour in factories. The Factories Act is meant to provide protection to the workers from being exploited by the greedy business employments and provides for the improvement of working conditions within the factory premises. The main function of this act is to look after the welfare of the workers, to protect the workers from exploitations and unhygienic working conditions, to provide safety measurers and to ensure social justice. Sections 11 to 20 of the Factories Act deal about Health. HEALTH

Section 11: Cleanliness Section 12: Disposal of wastes and effluents Section 13: Providing proper ventilation and maintaining proper temperature Section 14: Removal of Dust and fume Section 15: Providing artificial humidification Section 16: No Overcrowding Section 17: Proper Lighting Section 18: Providing pure Drinking water Section 19: Providing Latrines and urinals Section 20: Providing Spittoons

SAFETY

Section 21: Proper Fencing of machinery Section 22: Precautions Work on or near machinery in motion Section 23: No Employment of young persons on dangerous machines Section 24: Providing Striking gear and devices for cutting off power Section 25: Precautions near Self-acting machines

Section 26: Casing of new machinery Section 27: Prohibition of employment of women and children near cotton openers Section 28: Providing Hoists and lifts Section 29: Provision for Lifting machines, chains, ropes and lifting tackles Section 30: Protection near revolving machinery Section 31: Protection near Pressure plant Section 32: Provision for Floors, stairs and means of access Section 33: Providing and precautions near Pits, sumps openings in floors, etc. Section 34: No Excessive weights Section 35: Protection of eyes Section 36: Precautions against dangerous fumes, gases, etc Section 36A: Precautions regarding the use of portable electric light Section 37: Explosive or inflammable dust, gas etc. Section 38: Precautions in case of fire Section 39: Power to require specifications of defective parts or tests of stability Section 40: Safety of buildings and machinery. Section 40A: Maintenance of buildings Section 40B: Appointment of Safety Officers

WELFARE

Section 42: Providing Washing facilities Section 43: Providing Facilities for storing and drying clothing Section 44: Providing Facilities for sitting Section 45: First-aid appliances to be kept. Section 46: Canteens at subsidized rates. Section 47: Shelters, rest rooms and lunch rooms for workmen. Section 48: Crches for babies of working women. Section 49: Appointment of Welfare officers.

It is the duty of the Chief Inspector of Factories to ensure enforcement of all the above provisions of the Factories Act in respect of safety, health and welfare of employees. 2. THE WORKMENS COMPENSATION ACT 1923 Purpose of the Act: An Act to provide for the payment of certain classes of employers to their workmen of compensation for injury by accident. The workmens compensation Act 1923 is one of the earliest pieces of labour legislation. This act encompasses all cases of accidents arising out of and in course of employment. The rate of Compensation to be paid in a lump sum is determined by a schedule provided in the act proportionate to the extent of injury and the loss of earning capacity. The younger the age of he worker and higher the wage the greater is the compensation. The Act provides the formula for calculating the compensation. The injured person can claim compensation and in the case of death, the compensation is claimed by dependents of the deceased. This law applies to the organized as well as unorganized sectors that are not covered by the E.S.I. scheme. The following definitions and the sections of law are presented for the students to take note of them.

Administration: The act is administered by the State Governments which appoint Commissioners for this purpose under Sec.20 of the Act. Benefits: Under the Act, compensation is payable by the employer to workman for all personal injuries caused to him by accident arising out of and in the course of his employment which disable him for more than 3 days. If the workman dies, the compensation is to be paid to his dependants. The Act distinguishes among three types of injuries: permanent total disablement, permanent partial disablement and temporary disablement. The amount of compensation to be paid on the death or disablement of workman is given in Fourth Schedule of the Act and varies according to his wages, the type of injury and age. It is an obligation upon the employer to make the payment of compensation within one month from the date on which it falls due. Sources of Funds: All compensation under the act is payable by the employer. 3. THE PAYMENT OF WAGES ACT: The Payment of Wages Act was enacted as early as 1936 during the colonial rule. The purpose of this act is to regulate payment of wages. This insists on the payment of wages by the seventh day or the tenth day of the succeeding month and in case of weekly payment the last day of the week. Section 3: Responsibility for payment of wages. Every employer shall be responsible for the payment to person employed by him of all wages required to be paid under this Act. Provided that, in the case of persons employed (otherwise than by a contractor)

In factories, if a person has been named as the manager of the factory under clause of sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948) In industrial or other establishments, if there is a person responsible to the employer for the supervision and control of the industrial or other establishments Upon railways (otherwise that in factories), if the employer is the railway administration and the railway administration has nominated a person in this behalf for the local area concerned, the person so named, the person so responsible to the employer, or the person so nominated, as the case may be (shall also be responsible) for such payment.

Section 4: Fixation of wage-periods:

Every person responsible for the payment of wages under section 3 shall fix periods (in this Act referred to as wage-periods) in respect of which such wages shall be payable. No wage-period shall exceed one month.

Section 5: Time of payment of wages. (1) The wages of every person employed upon or in

Any railway, factory or {industrial or other establishment} upon or in which less than one thousand persons are employed, shall be paid before the expiry of the seventh day. Any other railway, factory or {industrial or other establishment}, shall be paid before the expiry of the tenth day, after the last day of the wage-period in respect of which the wages are payable:

(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) Save as otherwise provided in sub-section (2), all payments of wages shall be made on a working day. 4. THE EMPLOYEES PROVIDENT FUND ACT 1952 The purpose of this Act: An Act to provide for the institution of Provident Funds, pension funds and deposit linked fund for employees in factories and other establishments. Contributions of 10% of the wages are paid by the employer and another 10% by the employees. This amount is deposited with the government which pays an interest. This Act also now has provisions for pension scheme. Administration: The employees Provident Funds, Pension and Insurance Schemes framed under the Act are administered by a tripartite Central Board of trustee, consisting of representatives of employers and employees and persons nominated by the Central and State Governments. Benefits: The act has made schemes for 3 types of benefits, provident fund, family pension and deposit linked insurance. Family pension is payable to the widow or widower up to the date of death or re-marriage whichever is earlier. In the absence of the widow or the widower it is payable to the eldest surviving unmarried daughter until she attains the age of 21 years or marries whichever is earlier. The dependents of the employee also receive an additional amount known as the deposit linked insurance which is equivalent to the average balance lying to the credit of the employee on his provident fund during the preceding 3 years, subject to a maximum of Rs 10000 provided that such employee has kept a minimum average balance of Rs. 1000 in the provident fund. Source of Funds: Here both the employer and the employee are required to contribute the provident fund every month at 8.33% of the basic wages, dearness allowance and retaining allowance. An employee can make a larger contribution up to 10% but there is no compulsion for the employer to make a matching contribution.

5. THE PAYMENT OF GRATUITY ACT, 1972 Purpose of the Act: An act to provide for scheme for the payment of gratuity to employees engaged in factories, mines, oil fields, plantations, ports, railway companies, shops or other establishments and matters connected therewith or incidental thereto. Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years. (a) On his superannuation (b) On his retirement or resignation (c) On his death or disablement For every completed year of service or part thereof in excess of six months the employer shall pay gratuity to an employee at the rate of 15 days wages based on the rate of wages last drawn by the employee concerned. Section 4: Payment of gratuity. (1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years: (a) On his superannuation, or (b) On his retirement or resignation, or (c) On his death or disablement due to accident or disease; Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement; provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs is a minor, the share of such minor, shall 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. (2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days wages based on the rate of wages last drawn by the employee concerned; provided that in the case of a piece-rated employee, daily wages shall be computed on the average of the total wages received by him for a period of three months immediately preceding the termination of his employment, and, for the purpose, the wages paid for any overtime work shall not be taken into account; provided further that that in the case of {an employee who is employed in a seasonal establishment and who is not so

employed throughout the year} the employer shall pay the gratuity at the rate of seven days wages for each season. (3) The amount of gratuity payable to an employee shall not exceed {three lakhs and fifty thousand} rupees. (4) For he purpose of computing the gratuity payable to an employee who is employed, after his disablement, on reduced wages, his wages for the period preceding his disablement shall be taken to be the wages received by him during that period, and his wages for the period subsequent to his disablement shall be taken to be the wages as so reduced. (5) Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer. (6) Notwithstanding anything contained in sub-section (a) The gratuity of an employee, whose services have been terminated for any act, willful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer shall be forfeited to the extent of the damage or loss so caused. (b) The gratuity payable to an employee {may be wholly or partially forfeited} (i) If the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or (ii) If the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment. 6. THE MATERNITY BENEFIT ACT, 1961 Purpose of the Act: An Act to regulate the employment of women in certain establishments for certain period before and after child-birth and to provide for maternity benefit and certain other benefits. Section 4: Employment of or work by, women, prohibited during certain periods (1) No employer shall knowingly employ a woman in any establishment during the six weeks immediately following the day of her delivery, (miscarriage or medical termination of pregnancy). (2) No women shall work in any establishment during the six weeks immediately following the day of her delivery (miscarriage or medical termination of pregnancy).

(3) Without prejudice to the provisions of section 6, no pregnant women hall, on a request being made by her in his behalf, is required by her employer to do during the period specified in subsection (4) Any work which is of an arduous nature or which involves long hours of standing, or which in any way is likely to interfere with her pregnancy or the normal development of the foetus, or is likely to cause her miscarriage or otherwise to adversely after her health. (4) The period referred to in sub-section (3) shall be (a) The period of one month immediately proceeding the period of six weeks, before the date of her expected delivery; (b) Any period during the said period of six weeks for which the pregnant woman does not avail of leave of absence under section 6. Section 5: Right to payment of maternity benefits: (1) Subject to the provisions of this Act, every woman shall be entitled to, and her employer shall be liable for, the payment of maternity benefit at the rate of the average daily wage for the period of her actual absence, that is to say, the period immediately preceding the day of her delivery, the actual day of her delivery and any period immediately following that day. (2) No woman shall be entitled to maternity benefit unless she has actually worked in an establishment of the employer from whom she claims maternity benefit, for a period of not less than {eighty days} in the twelve months immediately preceding the date of her expected delivery. Provided that the qualifying period of {eighty days} aforesaid shall not apply to a woman who has immigrated into the State of Assam and was pregnant at the time of the immigration. (3) The maximum period for which any woman shall be entitled to maternity benefit shall be twelve weeks of which not more than six weeks shall precede the date of her expected delivery. Provided that where a woman dies during this period, the maternity benefit shall be payable only for the days up to and including the day of her death ; Provided further that where a woman, having been delivered of a child, dies during her delivery or during the period immediately following the date of her delivery for which she is entitled for the maternity benefit, leaving behind in either case the child, the employer shall be liable for the maternity benefit for that entire period but if the child also dies during the said period, then, for the days up to and including the date of the death of the child. 7. EMPLOYEES STATE INSURANCE ACT 1948 Purpose of the Act: This Act covers all workers whose wages do not exceed Rs 1600 per month and who are working in factories, other than seasonal factories, run with power and employing 20 or more workers. The coverage can be extended by the State Government with the approval of the Central Government.

Administration: The Act is administered by the E.S.I Corporation, an autonomous body consisting of representatives of the Central and State Governments, employers, employees, medical profession and Parliament. Benefits: The Act, which provides for a system of compulsory insurance, is a landmark in the history of social security legislation in India. An insured person is entitled to receive the following types of benefits:

Medical Benefit Sickness Benefit Maternity Benefit Disablement benefit Dependants Benefit Funeral benefit

Sources of Funds: the Act provides for the setting up of the Employees State Insurance fund from the contributors received from employers and employees and various grants, donations and gifts received from Central or State Governments, local authorities and individuals. The rate of employers contribution is 5% of the wage bill and that of the employees contribution is 2.25%.

The Payment of Wages Act

The Payment of Wages Act, 1936 is a central legislation which has been enacted to regulate the payment of wages to workers employed in certain specified industries and to ensure a speedy and effective remedy to them against illegal deductions and/or unjustified delay caused in paying wages to them. It applies to the persons employed in a factory, industrial or other establishment, whether directly or indirectly, through a sub-contractor. The Central Government is responsible for enforcement of the Act in railways, mines, oilfields and air transport services, while the State Governments are responsible for it in factories and other industrial establishments. The basic provisions of the Act are as follows: The person responsible for payment of wages shall fix the wage period up to which wage payment is to be made. No wage-period shall exceed one month. All wages shall be paid in current legal tender, that is, in current coin or currency notes or both. However, the employer may, after obtaining written authorization of workers, pay wages either by cheque or by crediting the wages in their bank accounts.

All payment of wages shall be made on a working day. In railways, factories or industrial establishments employing less than 1000 persons, wages must be paid before the expiry of the seventh day after the last date of the wage period. In all other cases, wages must be paid before the expiry of the tenth day after the last day of the wage period. However, the wages of a worker whose services have been terminated shall be paid on the next day after such termination. The Act allows deductions from the wages of an employee on the account of the following:(i) fines; (ii) absence from duty; (iii) damage to or loss of goods expressly entrusted to the employee; (iv) housing accommodation and amenities provided by the employer; (v) recovery of advances or adjustment of over-payments of wages; (vi) recovery of loans made from any fund constituted for the welfare of labour in accordance with the rules approved by the State Government, and the interest due in respect thereof; (vii) subscriptions to and for repayment of advances from any provident fund;(viii) income-tax; (ix) payments to co-operative societies approved by the State Government or to a scheme of insurance maintained by the Indian Post Office; (x) deductions made with the written authorization of the employee for payment of any premium on his life insurance policy or purchase of securities. Responsibility for payment of wages: Every employer shall be responsible for the payment to persons employed by him of all wages required to be paid under this Act: (a) In factories, if a person has been named as the manager of the factory under clause f of subsection 1 of section 7 of the Factories Act, 1948 (63 of 1948). (b) In industrial or other establishments, if there is a person responsible to the employer for the supervision and control of the industrial or other establishments. (c) Upon railways (otherwise than in factories), if the employer is the railway administration and the railway administration has nominated a person in this behalf for the local area concerned. Fixation of wage-periods: (1) Every person responsible for the payment of wages under section 3 shall fix periods (in this Act referred to as wage-periods) in respect of which such wages shall be payable. (2) No wage-period shall exceed one month. Time of payment of wages: (1) The wages of every person employed upon or in(a) Any railway, factory or industrial or other establishment upon or in which less than one thousand persons are employed, shall be paid before the expiry of the seventh day,

(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) or to persons employed as daily-rated workers in the Public Works Department of the Central Government or the State Government from the operation of this section in respect of wages of any such persons or class of such persons: (4) Save as otherwise provided in sub-section 2, all payments of wages shall be made on a working day. 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 in a larger 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: Deductions for damage or loss: (1) A deduction under clause c or clause o of sub-section 2 of section 7 shall not exceed the amount of the damage or loss caused to the employer by the neglect or default of the employed person. (2) All such deduction and all realizations thereof shall be recorded in a register to be kept by the person responsible for the payment of wages under section 3 in such form as may be prescribed. Deductions for recovery of advances: Deductions under clause f of sub-section 2 of section 7 shall be subject to the following conditions, namely: (a) Recovery of an advance of money given before employment began shall be made from the first payment of wages in respect of a complete wage-period, but no recovery shall be made of such advances given for traveling-expenses;

(b) Recovery of advances of wages not already earned shall be subject to any rules made by the State Government regulating the extent to which such advances may be given and the installments by which they may be recovered. Deductions for recovery of loans: Deductions for recovery of loans granted under clause f of sub-section 2 of section 7 shall be subject to any rules made by the State Government regulating the extent to which such loans may be granted and the rate of interest payable there on. Maintenance of registers and records: (1) Every employer shall maintain such registers and records giving such particulars of persons employed by him, the work performed by them, the wages paid to them, the deductions made from their wages, the receipts given by them and such other particulars and in such form as may be prescribed. (2) Every register and record required to be maintained under this section shall, for the purposes of this Act, be preserved for a period of three years after the date of the last entry made there. Procedure in trial of offences: (1) No court shall take cognizance of a complaint against any person for an offence under subsection 1 of section 20 unless an application in respect of the facts constituting the offence has been presented under section 15 and has been granted wholly or in part and the authority empowered under the latter section or the appellate Court granting such application has sanctioned the making of the complaint. (2) Before sanctioning the making of a complaint against any person for an offence under subsection 1 of section 20, the authority empowered under section 15 or the appellate Court, as the case may be, shall give such person an opportunity of showing cause against the granting of such sanction, and the sanction shall not be granted if such person satisfies the authority or Court that his default was due to(a) A bona fide error or bona fide dispute as to the amount payable to the employed person. (b) The occurrence of an emergency or the existence of exceptional circumstances, such that the person responsible for the payment of the wages was unable, though exercising reasonable diligence, to make prompt payment. (c) The failure of the employed person to apply for or accept payment. (3) No Court shall take cognizance of a contravention of section 4 or of section 6 or of a contravention of any rule made under section 26 except on a complaint made by or with the sanction of an Inspector under this Act.

(4) Imposing any fine for an offence under sub-section 1 of section 20 the court shall take into consideration the amount of any compensation already awarded against the accused in any proceedings taken under section 15. Display by notice of abstracts of the Act: The person responsible for the payment of wages to persons; employed in a factory or an industrial or other establishment shall cause to be displayed in such factory or industrial or other establishment a notice containing such abstracts of this Act and of the rules made there under in English and in the language of the majority of the persons employed in the factory, or industrial or other establishment, as may be prescribed. Rule-making power: (1) The State Government may make rules to regulate the procedure to be followed by the authorities and courts referred to in sections 15 and 17. (2) The State Government may, by notification in the Official Gazette, make rules for the purpose of carrying into effect the provisions of this Act. (3) In particular and without prejudice to the generality of the foregoing power, rules made under sub-section 2. (a) require the maintenance of such records, registers, returns and notices as are necessary for the enforcement of the Act prescribe the form there of and the particulars to be entered in such registers or records; (b) require the display in a conspicuous place on premises where employment is carried on of notices specifying rates of wages payable to persons employed on such premises; (c) Provide for the regular inspection of the weights, measures and weighing machines used by employers in checking or ascertaining the wages of persons employed by them; (d) Prescribe the manner of giving notice of the days on which wages will be paid; (e) Prescribe the authority competent to approve under sub-section 1 of section 8 acts and omissions in respect of which fines may be imposed; (f) Prescribe the procedure for the imposition of fines under section 8 and for the making of the deductions referred to in section 10; (4) In making any rule under this section the State Government may provide that a contravention of the rule shall be punishable with fine which may extend to two hundred rupees. (5) All rules made under this section shall be subject to the condition of previous publication, and the date to be specified under clause 3 of section 23 of the General Clauses Act, 1897 (10 of

1897), shall not be less than three months from the date on which the draft of the proposed rules was published.