amendments in acts 2014

Amendmentsin

acts

1. Contract Labour Act , 1970

2. Industrial Disputes Act, 1947

3. Factories Act, 1948

contents

Contract Labour Act , 1970SECTION 1 (4)

It applies--

(a)To every establishment in which twenty or

more workmen are employed or were

employed on any day of the preceding twelve

months as contract labour;

(b) to every contractor who employees or

who employed on any day of the preceding

twelve months twenty or more workmen:

Provided that the State Government

may, after giving not less than two months'

notice of its intention so to do, by notification

in the Official Gazette, apply the provisions

of this Act to any establishment or contractor

employing such number of workmen less

than twenty as may be specified in the

notification.

BEFORE AMENDMENT

It applies--

(a)To every establishment in which fifty or

more workmen are employed or were

employed on any day of the preceding twelve

months as contract labour;

(b) to every contractor who employees or

who employed on any day of the preceding

twelve months fifty or more workmen:

Provided that the State Government

may, after giving not less than two months'

notice of its intention so to do, by notification

in the Official Gazette, apply the provisions

of this Act to any establishment or contractor

employing such number of workmen less

than twenty as may be specified in the

notification.

AFTER AMENDMENT

Before amendment,

Act was applied in which

20 or more workmen are

Employed.

Now, minimum workmen

should be 50.




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INDUSTRIAL DISPUTES ACT, 1947SECTION 2 Definitions

Clause g (iii)

Employer means:-

Where the owner of any industry

in the course of or for the purpose

of conducting the industry contracts

with any person for the execution by

or under the contractor of the whole

or any part of any work which is

ordinarily a part of the industry,

the owner of the industry

BEFORE AMENDMENT

Clause g (iii)

This clause is being deleted

form the act

AFTER AMENDMENT

Since a separate Act, The

Contract Labour (Regulation and

Abolition) Act, 1970 was enacted by

the Parliament for regulating the

employment of contract workers in

Certain establishments and for its

abolition of certain circumstances,

therefore, sub-clause (iii) of clause (g)

vide State Amendment

of 1958 has become irrelevant

and ineffective. Hence,

this need to be deleted.

INDUSTRIAL DISPUTES ACT, 1947SECTION 2 (Clause s) - Definitions

Workman means –

Any person (including an apprentice)

employed in an industry by an

employer or by the contractor in

relation to the execution of his

contract with such employer to do

manual, unskilled, skilled, technical,

operational, clerical or supervisory

work for hire or reward, whether the

terms of employment be express or

implied, and for the purposes of any

proceeding under this Act in relation

to an industrial dispute, includes any

such person who has been dismissed,

discharged or retrenched in

connection with, or as a consequence

of, that dispute, or whose dismissal,

dischasrge or retrenchment has led

to that dispute,

BEFORE AMENDMENT

Workman means –

Any person (including an apprentice)

employed in an industry to do

manual, unskilled, skilled, technical,

operational, clerical or supervisory

work for hire or reward, whether the

terms of employment be express or

implied, and for the purposes of any

proceeding under this Act in relation

to an industrial dispute, includes any

such person who has been dismissed,

discharged or retrenched in

connection with, or as a consequence

of, that dispute, or whose dismissal,

dischasrge or retrenchment has led

to that dispute,

AFTER AMENDMENT

Since a separate Act, The

Contract Labour (Regulation and

Abolition) Act, 1970 was enacted by

the Parliament for regulating the

employment of contract workers in

Certain establishments and for its

abolition of certain circumstances,

therefore, the expression in

clause (s) vide State Amendment

of 1958 has become irrelevant

and ineffective. Hence,

this need to be deleted.

INDUSTRIAL DISPUTES ACT, 1947SECTION 2 (A)

Dismissal, etc., of an individual workman to be deemed to be an Industrial dispute.

Dismissal, etc., of an individual workman

to be deemed to be an industrial dispute:-

Consists of 3 subsections which depicts

no time limit prescribed for raising

disputes connected with or arising

out of discharge, dismissal,

retrenchment or termination of an

individual workman and sometimes

Such disputes are raised after a lapse

of many years which cause difficulties

in settlement of disputes.

BEFORE AMENDMENT

4th Sub-section is added:-

(4) Notwithstanding anything in sub-sections

(1),(2) and (3), no such dispute or difference

between that workman and his employer

connected with, or arising out of, such discharge,

dismissal, retrenchment or termination shall be

deemed to be an industrial dispute if such dispute

is not raised in conciliation proceeding within a

period of 2 three years from the date of such

discharge, dismissal, retrenchment or termination:

Provided that an authority, as

may be specified by the State Government,

may consider to extend the said period of

3 years when the applicant workman satisfies

the authority that he had sufficient cause for not

raising the dispute within the period of 3 years.

AFTER AMENDMENT

It is, therefore, proposed

that a time limit of

three years be provided for

raising the industrial disputes

covered under section 2A & the

time limit so prescribed could be

extended by the competent

authority on

sufficient grounds

INDUSTRIAL DISPUTES ACT, 1947CHAPTER II (B)

Reference of certain individual disputes to grievance settlement authorities

Chapter II (B) depicts Reference of certain

Individual disputes to Grievances

Settlement Authorities

BEFORE AMENDMENT

Renumbered as Chapter II (C).

AFTER AMENDMENT

Chapter 9 (C) depicts Setting up of

Grievance Settlement authorities &

reference of certain individual disputes

To such authorities

BEFORE AMENDMENT

Renumbered as Chapter 9 (CC)

AFTER AMENDMENT

CHAPTER 9 (C)Setting up og Grievance settlement authorities and reference of certain

individual disputes to such authorities

INDUSTRIAL DISPUTES ACT, 1947

Because of existing limit,

many unions may become eligible

for making application for registration as

representative union which may possibly

increase inter union conflicts and also

multiplicity of unions in an industry.

To minimize this possibility, it

is proposed to increase membership

from “fifteen per cent” to

“thirty per cent”

Section 9 (D)

Application of Registration

Any Union which has for the whole of

the period of at least three months

during the period of six months

immediately preceding the calendar

month in which it so applies under this

section a membership of not less than

fifteen per cent of the total number of

workmen employed in unit of an industry

may apply in the prescribed form to the

Registrar for registration as a

representative Union.

BEFORE AMENDMENT

Any Union which has for the whole of

the period of at least three months

during the period of six months

immediately preceding the calendar

month in which it so applies under this

section a membership of not less than

thirty per cent of the total number of

workmen employed in unit of an industry

may apply in the prescribed form to the

Registrar for registration as a

representative Union.

AFTER AMENDMENT

INDUSTRIAL DISPUTES ACT, 1947CHAPTER V (B)

Special Provisions related to Lay-Off, Retrenchment & Closure in certain establishments

Section 25 (K)APPLICATION OF CHAPTER V-B

The provisions of this Chapter shall

apply to an industrial establishment

(not being an establishment of a

seasonal character or in which work is

performed only intermittently) in which

not less than one hundred workmen

were employed on an average per

working day for the preceding

twelve months.

BEFORE AMENDMENT

Section 25 (K)APPLICATION OF CHAPTER V-B

The provisions of this Chapter shall

apply to an industrial establishment

(not being an establishment of a

seasonal character or in which work is

performed only intermittently) in which

not less than three hundred workmen

were employed on an average per

working day for the preceding

twelve months.

AFTER AMENDMENT It is proposed vide this amendment

to increase the number

of workmen from one hundred to three

hundred, which would help and encourage

the employers to employ more number of

Workers in the establishment.

However, if State Government is satisfied

that maintenance of industrial peace or for

prevention of victimization of workmen so

requires, it could apply the provisions of

the Chapter VB to an industrial

establishment in which less than

three hundred but not less

than one hundred

workmen are employed.

INDUSTRIAL DISPUTES ACT, 1947

Section 25 (N)

Clause (a) of Sub-section (1)CONDITIONS PRECEDENT TO

RETRENCHMENT OF WORKMEN

No workman employed in any industrial

establishment to which this Chapter

applies, who has been in continuous

service for not less than one year

under an employer shall be retrenched

by that employer until :-

(a)the workman has been given three

months' notice in writing indicating

the reasons for retrenchment and the

period of notice has expired, or the

Workman has been paid in lieu of

such notice, wages for the period of

the notice;

BEFORE AMENDMENT

Section 25 (N)

Clause (a) of Sub-section (1)CONDITIONS PRECEDENT TO

RETRENCHMENT OF WORKMEN

This clause to be deleted

AFTER AMENDMENT

This amendment is being

Processed to provide the

financial security

to the workmen who affects

by the retrenchment.

CHAPTER V (B)

INDUSTRIAL DISPUTES ACT, 1947Section 25 (O)

Procedure for closing down an undertaking

Sub-section (8)Where an undertaking is permitted to

be closed down or where permission

for closure is deemed to be granted,

every workman who is employed in that

undertaking immediately before the

date of application for permission

under this section, shall be entitled

to receive compensation which shall

be equivalent to fifteen days' average

pay for every completed year of

continuous service or any part thereof

in excess of six months.

BEFORE AMENDMENT

Sub-section (8)Where an undertaking is permitted to

be closed down or where permission

for closure is deemed to be granted,

every workman who is employed in that

undertaking immediately before the

date of application for permission

under this section, shall be entitled

to receive compensation which shall

be equivalent to fifteen days' average

pay for every completed year of

continuous service or any part thereof

in excess of six months and an amount

equivalent to his three months

average pay.

AFTER AMENDMENT

This amendment is being processed

to provide payment of an amount

equivalent to three month’s average pay,

along with compensation on prescribed

rates, must also be paid to

the workers who are being affected by

the closure of the establishment.

INDUSTRIAL DISPUTES ACT, 1947Schedule V (Unfair Labour Practices)

Part II

Paragraph 5To stage, encourage or instigate

such forms of coercive actions as

wilful "go slow", squatting on the

work premises after working hours

or "gherao" of any of the members

of the managerial or other staff.

BEFORE AMENDMENT

Part II

Paragraph 5For the purpose of this paragraph,

‘go slow’ means any such activity by

any number of persons, employed in

any industry, acting in combination

or with common understanding, to slow

down or to delay the process of

production or work purposely whether

called by work to rule or by any other

name, so as the fixed or average or

normal level of production or work or

output of workman or workmen of the

establishment is not achieved:

Provided that all necessary ingredients

or inputs for standard quality production

or work are made available in time and

in sufficient quantity.

AFTER AMENDMENT

Term "go slow" is included in

paragraph 5 of Part II of the

Fifth Schedule of the Act but the same

has not been defined, which

causes difficulty in disposal of

matters relating to "go slow".

Therefore, for the purpose of removing

this difficulty, an explanation after the existing

paragraph 5 of Part II of the Fifth

Schedule is proposed to be added to

define the term "go slow"..




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Factories act, 1948Section 2 (Interpretation)

Clause (m) of sub-section (i)“Factory" means any premises including

the precincts thereof –

(i)whereon ten or more workers are

working, or were working on any day of

the preceding twelve months, and in any

part of which a manufacturing process

is being carried on with the aid of power,

or is ordinarily so carried on, or

Clause (m) of sub-section (ii)(ii) whereon twenty or more workers are




is being carried on without the aid of

power, or is ordinarily so carried on

BEFORE AMENDMENT

Clause (m) of sub-section (i)“Factory" means any premises including

the precincts thereof –

(i)whereon twenty or more workers

are working, or were working on any day of



is being carried on with the aid of power,

or is ordinarily so carried on, or

Clause (m) of sub-section (ii)(ii) whereon forty or more workers are




is being carried on without the aid of

power, or is ordinarily so carried on

AFTER AMENDMENT

Because of the existing limit,

small units are also covered under

the definition of “factory”.

Due to increase in manufacturing

activities by small units in the State, the

existing threshold limit of “ten” &

“twenty” is proposed to be amended by

“twenty” & “forty” respectively,

so that establishing of small

manufacturing units be promoted

resulting in creation of more

employment opportunities for

workers.

Factories act, 1948

Clause (i) of sub-section (1)The State Government may, by notification

in the Official Gazette, declare that all or any

of the provisions of this Act shall apply to

any place wherein a manufacturing process

is carried on with or without the aid of power

or is so ordinarily carried on,

notwithstanding that-

(i)the number of persons employed therein

is less than ten, if working with the aid of

power and less than twenty if working

without the aid of power

BEFORE AMENDMENT

Clause (i) of sub-section (1)The State Government may, by notification

in the Official Gazette, declare that all or

any of the provisions of this Act shall apply

To any place wherein a manufacturing

process is carried on with or without the

aid of power or is so ordinarily carried on,

notwithstanding that-

(i)the number of persons employed

therein is less than twenty, if working with

the aid of power and less than forty, if

Working without the aid of power,

AFTER AMENDMENT

Due to increase in

Manufacturing activities by

small units in the State, the

existing threshold limit of “ten” &

“twenty” is proposed to be amended by

“twenty” & “forty” respectively,

so that establishing of small

manufacturing units be promoted

resulting in creation of more

employment opportunities for

workers.

SECTION 85Power to apply the Act to certain premises

Factories act, 1948

No Court shall take cognizance of any

offence under this Act except on complaint

by, or with the previous sanction in writing

of, an Inspector.

BEFORE AMENDMENT

No Court shall take cognizance of any

offence under this Act except on complaint

by an Inspector with the previous sanction

in writing by the State Government

AFTER AMENDMENTIn order to maintain uniformity

in smaller cases and

transparency in implementation

the existing sub-section (1) of

section 105 is proposed to be

amended to the effect that cognizance

of any offence shall be taken by the

Court on complaint made by an

Inspector after obtaining

previous sanction in writing from

the State Government.

SECTION 105 {Sub-section - (1)}Cognizance of offences

Factories act, 1948

The Inspector may, subject to any general or special order of the State Government in this behalf,

compound any offence punishable under this Act with fine only, and committed for the first time, either

before or after the institution of the prosecution, on realization of such amount of composition fee as he

thinks fit not exceeding the maximum amount of fine fixed for the offence; and where the offence is so

compounded,-

(i) before the institution of the prosecution, the offender shall not be liable to prosecution, for such offence

and shall, if in custody, be set at liberty;

(ii) after the institution of the prosecution the composition shall amount to acquittal of the offender.".

AFTER AMENDMENT

Under the existing provisions of the Act, there is no provision

for compounding of offences, resulting in higher number of

prosecution cases. For speedy disposal of offences and to minimise

number of litigation, a new provision, i.e. section 106B is proposed

to be inserted for compounding of offences.

New Section 106 B to be insertedCompounding of offences




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amendments in acts 2014

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