FACTORIES ACT 1948

UNIT-3

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• According to sec 2(m) of the factories Act, factory means any
premises where the manufacturing is being carried on by
employing
• 10 or more persons if power is used, or 20
• Or more person if power is not used.
• Premises include land as well, in counting the number
of workers, temporary, part time or piece-rate workers
also must be included.
• Factory does not include a mine, a mobile unit
belonging to the armed forces of the union, railway
running shed or a hotel, restaurant or eating place.
Similarly it does not include an industrial school where
cloth is produced for demonstration only. It does not
include a theater exhibition films.
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 HEALTH
Sec11 to 20 contains provision as regard to the health of the workers.
• Cleanliness
• Disposal of waste & effluent.
• Ventilation & temperature.
• Dust and fumes.
• Artificial humidification
• Over crowding
• Lighting
• Drinking water
• Latrines and urinal
• spittoons

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 SAFETY
Sec 21-41 of the factories Act, contain provision relating to the
safety of the workers :
• Fencing of machinery
• Work on or near machinery in motion.
• Employment of young person on dangerous machines.
• Striking gear and device for cutting off power.
• Self acting machines.
• Casing of new machinery.
• Prohibition of employment of women children near cotton
openers
• Hoist and lifts.
• Lifting machines, chain, ropes and lifting tackles.
• Revolving machinery
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 Safety (con)
• Floor stair and means of access.
• Pressure plant
• Pits sumps opening
• Excessive weights
• protection of eyes
• Precaution against dangerous fumes
• Precaution in case of fire.
• Precaution regarding the use of portable electric light.
• Precaution against explosive or inflammable dust, gas
• Power to require specification of defective parts or test of
stability.
• Safety of machinery and building
• Maintenance of building
• Safety officer

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 WELFARE

• Sec 42-50
• Washing facilities.
• Facilities for storing and dyeing cloth
• Facilities for sitting
• First-aid appliances
• Canteen
• Shelter, rest room and lunch room.
• Crèches.
• welfare officer
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 WORKING HOURS
• Weekly hours
• Daily hours
• Interval for rest
• Spread over of work
• Night shift.
• Extra wages for overtime
• restriction on double employment
• Notice of period of work for adults
• Register of adult workers
• Holidays
– Weekly holiday.
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 EMPLOYMENT OF YOUNG PERSON
• Prohibition of employment of young children
• Non-adult worker to carry token
• Certificate of fitness.
• Working hours for children
• Notice of the period of work for
• Register of child workers.
• Safety provision.
• EMPLOYMENT OF WOMEN
– Work on or near machinery in motion
– Prohibition of employment of women near cotton opener not allowed.
– Provision of crèches
– Restriction on employment of women
– Maternity leave.
– Dangerous operation.

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 PROVISION REGARDING LEAVE WITH WAGES
• Annual leave with wages
• Maternity leave
• Worked joined in the service in the middle of the
year.
• Workers discharge from service
• Unavailed leave
• Application for leave
• Period of illness
• Payment of wages unavailed leave
• Payment in advance in certain cases
• Mode of recovery of unpaid.
• Wages during leave period.

• SPECIAL PROVISION
– Power to apply the Act of certain premises
– Dangerous operation.s
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PAYMENT OF WAGES ACT 1936

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 THE PAYMENT OF WAGES ACT
• Wages sec2(vi) all remuneration whether by way of
salary, allowances or otherwise expressed in term of
money or capable of being so expressed which would if
the terms of employment, expressed or implied, were
fulfilled, be payable to a person employed in respect of
his employment or of work done in such employments.
• Rules for payment of wages
– Responsibility for payment of wages(sec3)
– Fixation wage period
– Time of payment of wages
– Medium of payment of wages.

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 DEDUCTION FROM WAGES
• Kinds of deduction
• Deduction for absence from duty
• Deduction for damages or loss
• Deduction for service rendered
• Deduction for recovery of advance
• Deduction for recovery of loans
• Deduction for payment to co-operative societies and
insurance schemes.
• Other deduction
• Limit on deduction
• ENFORCEMENT OF THE ACT
– inspector
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THE MINIMUM WAGES ACT
1948

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• Competent authority [sec2(e)]
• Cost of living index number.
• Fixation and revision of wages
– Fixing of minimum rate of wages(sec3)
– Minimum number of employees
– Different minimum rate
– Minimum rate of wages(sec4)
• Procedure for fixing and revising minimum wages (sec5)
• Correction of errors
• Advisory board
• Safe guard in payment of minimum wages.(
– Wages in Kind sec11(1))
– Payment of minimum rate of wages(sec12)
– Fixing hours for a normal working day (sec13)
– Rates of overtime
– Wages of worker who works for less than normal working day
[sec15]
– Wages for 2 or more classes of work [sec16]
– Minimum time rate wages for piece work[sec(17)]
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INDUSTRIAL DISPUTE ACT 1947

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 DEFINITION

According sec 2(k) of industrial dispute Act,

industrial dispute means “any dispute or difference
between employers and employers. Or between employers
and workmen or between workmen and workmen
connected with the employment or non employment or
the terms of employment or with the condition of labour
of any person..

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 Lay-off
MEANING:
sec2(kkk) lay off means the failure, refusal
or inability of an employer to give employment to a
workmen whose name is borne on the muster rolls of
this industrial establishment and who has not been
retrenched.

• Essentials of lay off.

• Rights of an workman laid off for compensation.

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 RETRENCHMENT
MEANING:
“The discharge of surplus labour or staff”. It
involves break of service.
• Condition of valid retrenchment sec 25-f
– Notice to the workman.
– Application to be made for permission.
– Order granting permission or refusing permission
– Compensation.
– Penalty
– Procedure for retrenchment.

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 AWARD AND SETTLEMENT
Definition:
according to sec 2(b) award means an interim or
final determination of any industrial dispute or of any
question relating there to by any labour court, industrial
tribunal or national tribunal. It also includes an
arbitration award made under sec 10a.

• Essential of award

• Reasons on whom settlement and award are

binding.

• Period of operation of settlement and award.

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 STRIKES AND LOCKOUTS
According to sec 2(q) of industrial dispute Act
strike means “ a cessation of work by a body of person
employed in any industry acting in combination or a
concerted refusal or a refusal under a common understanding
of any number of persons who are have been so employed to
continue to work or to accept employment.”
According to sec2(i) of the industrial dispute Act,
lockout means “ temporary closing of the place of
employment, or the suspension of work or the refusal by an
employer to continue to employ any number of person
employed by him.”
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• Prohibition of strike& lock out in public
utility services

• Penalties regarding strikes & lock out:

– Penalties of illegal strikes or lockout
– Penalty for giving financial aids for
illegal strikes & lockout
– Penalty for instigation
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 AUTHORITIES UNDER THE ACT
• Works committee
• Conciliation officer
• Board of conciliation
• Court of enquiry
• Labour court
• Industrial tribunals
• National tribunals
• Grievances committee
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PAYMENT OF BONUS ACT 1965

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 The term bonus has no where been defined
under the bonus Act, however the dictionary meaning
of bonus signifies “ something paid or given in
addition to normal amount” or “extra benefit”.

DEFINITIONS:
– Accounting year
– Allocable surplus
– Available surplus

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• Employees entitled to bonus.
• An employee in the following case is entitled to bonus.
– A temporary workman
– An employee of a seasonal factory.
– A part time employee as a sweeper
– A retrenched employee
– A probationer
– A dismissed employee reinstated with back wages
– A piece rate worker.

• An employee in the following case not entitled to bonus.

– An apprentice
– An employee employed through contract on building
operation.
– An employee dismissed from service.
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• Calculation of direct tax payable by the employer:
• Payment of minimum bonus
• Payment of maximum bonus
• Calculation of bonus with respect to certain employees.
• Set on and set –off allocable surplus.
• Payment of bonus linked with production or productivity.
• Adjustment of customary or interim bonus against bonus
payable under the Act.
• Deduction of certain amount from bonus payable under the
Act.
• Time limit for payment of bonus.

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