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NATIONAL LAW INSTITUTE UNIVERSITY BHOPAL Project On LABOUR LAW-II WELFARE MEASURES UNDER THE FACTORIES ACT, 1948 Submitted by: Anshul chandra 2006 BA.LLB 17(Hons) Submitted to: Prof. Surya prakash

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Page 1: Labour Law (1)

NATIONAL LAW INSTITUTE UNIVERSITY

BHOPAL

Project On

LABOUR LAW-II

WELFARE MEASURES UNDER THE

FACTORIES ACT, 1948

Submitted by: Anshul chandra

2006 BA.LLB 17(Hons)

Submitted to: Prof. Surya prakash

Page 2: Labour Law (1)

TABLE OF CONTENTS

1. RESEARCHMETHODOLOGY……………………………………………………..….3

2. INTRODUCTION……………………………………………………………………….4

3. HEALTH OF FACTORY WORKERS…….……………………………………………7

4. WELFARE PROVISIONS……..……………………………………………… ………14

5. CONCLUSION…………………………………………………………………………19

6. BIBLIOGRAPHY…………………………………………………………………...…..20

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RESEARCH METHODOLOGY

SUBJECT: Labour Law II

AREA: Factories Act, 1948

TOPIC: Welfare Measures under the Factories Act, 1948

SPECIFIC OBJECTIVES:

To describe the provisions regarding health of workers in factories, and

To explain the provisions relating to various welfare measures in factories.

DATA: The data compiled is secondary in the manner of documents and write-ups which

affected this work and are of any pith to the topic at hand.

RESEARCH TECHNIQUES FOR DATA COLLECTION: This has been through appraisal of

the legislations, scrutiny of the numerous amendments and analysis of judgments relating

to the particular theme.

INTRODUCTION

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The term ‘Labour Welfare’ refers to the facilities provided to workers in and outside the

factory premises such as canteens, rest and recreation facilities, housing and all other

services that contribute to the wellbeing of workers. Welfare measures are concerned with

general well being and efficiency of workers. In the early stages of industrialization, welfare

activities for factory workers did not receive adequate attention. Employers were not

inclined to accept the financial burden of welfare activities. Wherever employers provided

for such amenities, it was more with a paternalistic approach to labour rather than

recognition of workers’ needs. Hence the state had to intervene, in discharge of its welfare

responsibility, by using its persuasive powers and/or by enforcing legislation, where

persuasion failed. Compulsory provisions are thus incorporated in the Factories Act, 1948

with respect to the health, safety and welfare of workers engaged in the manufacturing

process.

The welfare measures involve three major aspects which are - occupational health care,

suitable working time and appropriate salary. It refers to the physical, mental, moral, and

emotional well-being of an individual. The safe work environment provides the basis for

the person to enjoy working. The work should not pose a health hazard for the person. The

welfare measures aim at integrating the socio-psychological needs of employees, the

unique requirements of a particular technology, the structure and processes of the

organization and the existing socio-cultural environment. It creates a culture of work

commitment in organizations and society which ensure higher productivity and greater job

satisfaction to the employees. The welfare measures are defined in the same way1 as

defined by the I.L.O. at its Asian Regional Conference "A term which is understood to include

such services, facilities and amenities as may be established in or in the vicinity of

undertakings to enable the persons employed in them to perform their work in healthy,

congenial surroundings and to provide them with amenities conducive to good health and

high morale." 2

1 VKR Menon , Influence of International Labour Convention on Indian Labour Legislation, Int'l Lab. Rev.,

1956

2 George A. Johnston, The Emergent Countries and the Transformation of the I.L.O, Studies: An Irish Quarterly

Review, Vol. 54, No. 214/215 (Summer/Autumn, 1965), pp. 241-251 http://www.jstor.org/stable/30089012

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Due to the welfare measures, the employees feel that the management is interested in

taking care of the employees that result in the sincerity, commitment and loyalty of the

employees towards the organization.3 The employees work with full enthusiasm and

energetic behavior which results in the increase in production and ultimately the increased

profit. The measures of welfare give result after a long period of time.4 It is a long process,

so the management has to keep patience while providing the welfare facilities for the

employees. While deciding the welfare facility for the employees, the management has to

do discussions with the persons who are now going to avail the facilities. The

communication increases the cohesiveness between the management and the employees

and thus industrial relations improve.

After the independence, the Government of India makes strict rules and regulations to

safeguard the interest of the workers in the factories. The welfare facilities are provided to

the workers as per the provisions laid down in Chapter 5 (Section 42 to 50) of 'The

Factories Act, 1948' for the benefit of employees of the factories. Analyzing the benefits of

the welfare provisions, the management bears the huge cost spend on the welfare

activities. The experts have a firm opinion that by providing the welfare facilities to the

employees especially women, the productivity of the employees increases and ultimately

profit increases.5 According to Section 49 of 'The Factories Act, 1948' – "In every factory

wherein five hundred or more workers are ordinarily employed the occupier shall employ

in the factory such number of welfare officers as may be prescribed". The major role of

welfare officer is to facilitate and observe the welfare measures for the employees in the

organization.

3 Rohini Hensman, The Impact of Globalisation on Employment in India and Responses from the Formal and

Informal Sectors, IIAS/IISG CLARA Working Paper, No. 15 Amsterdam, 2001

<http://www.iisg.nl/clara/publicat/clara15.pdf> 4 Michele Landis Dauber, The Sympathetic State, Law and History Review, Vol. 23, No. 2 (Summer, 2005), pp.

387-4425 Mark R. Rosenzweig, Women, Insurance Capital, and Economic Development in Rural India Women, Insurance

Capital, and Economic Development in Rural India, The Journal of Human Resources, Vol. 28, No. 4, Special

Issue: Symposium on Investments in Women's Human Capital and Development (Autumn, 1993), pp. 735-

758

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This project evaluates the health and welfare measures for workers in factories.

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HEALTH OF FACTORY WORKERS

Health is a component of welfare. The declared aim of the Government is to usher in a

Welfare State. In such a Welfare state, there shall be no place for the “five giants” namely

poverty, disease, ignorance, squalor and idleness. To increase the welfare or “level of

living” is the general goal of social policy.6

The Constitution of India envisages that the State shall direct its policy towards securing

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 strength7

that childhood and youth are protected against exploitation and against moral and

material abandonment.8

The State shall, within the limits of its economic capacity and development, make

effective provision for securing the right to work, to education and to public

assistance in cases of unemployment, old age, sickness, and disablement and in

other cases of undeserved want.9

The State shall make provision for securing just and humane conditions of work and

for maternity relief.10

The State shall regard the raising of the level of nutrition and the standard of living

of its people and the improvement of public health as among its primary duties.11

6 AM Sarma, Aspects of Labour Welfare and Social Security, Himalaya Publishing House, 9th edn reprint, 2007,

page 907 Article 39(e) , Constitution of India8 Article 39(f), Constitution of India9 Article 41, Constitution of India10 Article 42, Constitution of India11 Article 47, Constitution of India

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To take care of the health of workers in factories, the Factories Act, 1948 has provided for

certain measures which are stated below, which are essential to ensure the well being and

health of workers, since medical and health care facilities for industrial workers form an

integral part of labour welfare programmes:

(i) Cleanliness of the factory premises12

Every factory shall be kept clean and free from effluvia arising from any drain, privy or

other nuisance. It is specifically provided that in a factory—

accumulations of dirt and refuse shall be removed daily, by sweeping or any other

method, from the floors and benches of work rooms and from stair cases and

passages, and disposed off in a suitable manner;

the floor of every room shall be cleaned. This shall be done at least once every week

by washing, using disinfectant or by some other effective method;

where a floor is liable to become wet in the course of any manufacturing process to

such an extent as is capable of being drained, effective means of drainage shall be

provided.

all inside wall and partitions, all ceilings or tops of rooms and all walls, sides and

tops of passages and staircases shall be

o painted or varnished, and repainted and re-varnished at least once in a

period of five years; where they are painted or varnished, be cleaned at least

once in a period of 14 months by such methods as may be prescribed by the

Government.

o Where painting or varnishing is not required, be kept white washed or colour

washed, and the white washing or colour washing shall be carried out at least

once in every period of 14 months.

(ii) Disposal of Wastes and Effluents13

Effective arrangement shall be made for the disposal of wastes and effluents arising out of

manufacturing process in the factories.

12 Section 11, Chapter III, Factories Act, 194813 Section 12, Factories Act, 1948

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(iii) Ventilation and Temperature14

Provision is to be made for ventilation and regulation of temperature in the factories.

Effective and suitable measures shall be adopted for securing and maintaining in every

room:

adequate ventilation by the circulation of fresh air, and

such a temperature as will secure to workers reasonable conditions of comfort, and prevent

injury to health, and in particular the walls and roofs shall be of such material and so designed

that such temperature shall not exceed but kept within reasonable limits. The state government

shall prescribe the standards of adequate ventilation and reasonable temperature for any

factory or part thereof.

(iv) Dust and Fume15

In every factory, where due to manufacturing process, dust or fume or other impurity arise

which is likely to be injurious to the health of workers employed, effective measures shall

be taken to prevent its inhalation, and accumulation in any workroom. If it is necessary to

instal exhaust appliances, it would be installed near the point of origin of the dust, fumes,

or other impurity. Measures shall be taken to enclose such points.

(v) Artificial humidification16

Artificial creation of humidity is employed in India in cotton textile mills and in cigarette

making factories. In respect of factories, where humidity of the air is artificially increased, it

is provided to make rules—

prescribing standard of humidification;

regulating the methods used for artificially increasing the humidity of the air;

directing prescribed tests for determining the humidity of the air to be correctly

carried out and recorded, and

Prescribing methods to be adopted for securing adequate ventilation and cooling of

the air and the work rooms.

(vi) Overcrowding17

14 Section 13, Factories Act, 194815 Section 14, Factories Act, 194816 Section 15, Factories Act, 1948

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No room in any factory shall be overcrowded to such an extent which becomes injurious to

the health of the workers employed therein. The Chief Inspector of factories by order in

writing shall fix the maximum member of workers to be employed in each room in the

factory.

(vii) Lighting18

The Factories Act provides for sufficient and suitable lighting, natural or artificial where

workers are working or passing through. Provision of cleaning of inner and outer surface is

provided for all glazed windows and skylights used for the lighting of the workrooms. In

every factory, effective provision shall be made for the prevention of

glare, either directly from a source of light or by reflection from a smooth or

polished surface;

the formation of shadows to such an extent as to cause eyestrain

Or the risk of accident to any worker.

(viii) Drinking Water19

In every factory, effective arrangement shall be made at suitable places for sufficient supply

of wholesome drinking water. Such places shall be legibly marked ‘Drinking Water’ in a

language understood by a majority of the workers employed in the factory. In case of

factories employing more than 250 workers, provisions shall be made for cooling drinking

water during hot weather by effective means, and for its distribution.

(ix) Latrines and Urinals20

The Factories Act requires that provision should be made for —

Sufficient latrine and urinal accommodation conveniently situated and accessible to

workers while they are in the factory;

separate enclosed accommodation for male and female workers;

such accommodation being adequately lighted and ventilated;

17 Section 16, Factories Act, 194818 Section 17, Factories Act, 194819 Section 18, Factories Act, 194820 Section 19, Factories Act, 1948

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all such accommodation being maintained in a clean and sanitary condition;

sweepers being employed to clean latrines, urinals and washing places;

Where the number of workers in a factory is more than 250

latrines and urinals shall be of prescribed sanitary types;

the floor and internal walls of the latrines and urinals shall be laid with glazed tiles;

Floors and walls and the sanitary pans of latrines and urinals shall be thoroughly

washed and cleaned at least once in every seven days with suitable detergents or

disinfectants or with both.

(x) Spittoons21

Sufficient number of spittoons must be provided in every factory and maintained in clean

and hygienic condition. No person shall spit within the premises of a factory except in the

spittoons. A notice containing this provision and the penalty for its violation shall be

prominently displayed at suitable places in the factory premises.

These provisions described above are not categorized as welfare provisions, but they can

be classified as the same due to the welfare nature of the same. They not only provide

against sickness, but also ensure availability of a physically fit and stable manpower for

economic development. This is, keeping in mind, the definition of health as given by the

W.H.O. as “a state of complete physical, mental and social well being and not merely the

absence of disease and infirmity”. Health and medical care are broad terms embracing the

economic, social and emotional life of a man. Expenditure on medical facilities yields is an

excellent investment with immediate returns, if not through increased productivity, at least

through reduction in absenteeism on grounds of sickness and ill health.22

The Factories (Amendment) Act, 1987, stipulates that every person who designs,

manufactures, imports or supplies any article for use in any factory shall ensure. So far as is

21 Section 20, Factories Act, 194822 AM Sarma, Aspects of Labour Welfare and Social Security, Himalaya Publishing House, 9th edn reprint, 2007,

page 89

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reasonable practicable, that the article is so designed and constructed as to be safe and

without risks to the health of the workers when properly used. It lays down that the

occupier of every factory involving a hazardous process shall disclose to the Chief Inspector

of Factories and also to the local authority in the manner prescribed all information

regarding dangers, including health hazards, and the measures to overcome such hazards

arising from the exposures to or handling of the materials or substances. It also specifies

that every occupier of a factory involving any hazardous process shall maintain accurate

and up to date health records of the workers who are exposed to any chemical, toxic or any

other harmful substances. The Act also confers right to the workers employed in any

hazardous process to warn about imminent danger to their lives or health due to any

accident.23

The National Commission on Labour observed that, Industrial health comprises measures

for:

a) Protecting the workers against any health hazards which may arise out of their

work or the conditions in which it is carried on;

b) Contributing towards the workers’ physical and mental adjustment in particular by

the adaptation of workers to the jobs for which they are suited; and

c) Contributing to the establishment and maintenance of the highest possible degree of

physical and mental well being of the workers.

The first one is very important, while the rest should be left up to the process of evolution.

There are both preventive and curative methods of protection against health hazards. The

former consists of pre-employment and periodic medical examination, removal of health

hazards to the extent possible, surveillance over certain classes of workers such as women,

young persons and persons exposed to special risks, emergency treatment for accidents,

training of first aid personnel and education of workers in health and hygiene. The

statutory provisions in labour laws for safeguarding the health of workers such as

restrictions on employment of women at certain hours and places, protection for young

23 AM Sarma, Aspects of Labour Welfare and Social Security, Himalaya Publishing House, 9th edn reprint, 2007,

page 91

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persons, provisions of first aid and ambulance services, provisions relating to cleanliness,

disposal of wastes and effluents, ventilation and temperature, and dust, fumes and lighting

are known already.24

24 AM Sarma, Aspects of Labour Welfare and Social Security, Himalaya Publishing House, 9th edn reprint, 2007,

page 104

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WELFARE PROVISIONS

Welfare measures are important in any industry, for the benefit of the workers. There are

several statutory provisions provided in the Factories Act for the same, as well as some

voluntary steps that are taken by the employers at times. The statutory measures are

discussed below.

(i) Washing facilities:25

The Factories Act provides for –

Adequate and suitable facilities for washing for the use of workers in the factories.

The workers who live in crowded areas have inadequate facilities for washing at

their homes, and bathing facilities add to their comfort, health and efficiency.

Separate and adequately screened washing facilities for the use of male and female

workers.

Such facilities being conveniently accessible, and being kept clean.

(ii) Facilities for storing and drying clothes:26

A suitable place for keeping clothes not worn during working hours shall be provided in

every factory. Facilities shall also be provided for the drying of wet clothes. A safe

environment for the same is very important. Not only should the facility be suitable for

storing items, there should be very minimal possibility of theft. The risk of theft has to be

considered as an element in deciding whether the accommodation was adequate and

suitable.27

(iii) Facilities for sitting:28

25 Section 42, Chapter V, Factories Act, 194826 Section 43, Factories Act, 194827 McCarthy v. Daily Mirror Ltd., (1949) 1 All ER 801, cited in KD Srivastava, Commentaries on Factories Act

1948, 5th edition, Eastern Book Company, Lucknow, page 47428 Section 44, Factories Act, 1948

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For workers who are to work in a standing position, suitable arrangement for sitting shall

be provided in the factories. This is to enable workers to take advantage of any opportunity

for rest

which may occur in the course of their work.

(iv) First-aid appliances:29

First-aid boxes or cupboards equipped with the required contents should be provided for

workers in every factory. This should be readily accessible to them during all working

hours. The number

of such first aid boxes shall not be less than one for every 150 workers employed in the

factory. Such first-aid box shall be kept in the charge of a responsible person who is trained

in first-aid treatment and who shall be available during the working hours of the factory.

By responsible person, the only qualification for the same is not the first aid training;

otherwise the word responsible would be redundant. Whether the person is responsible or

not would be a question of fact. It is a question of satisfaction for the occupier and in case of

dispute, has to be decided as a question of fact.30

In factories employing more than 500 workers, there shall be an ambulance room. It should

contain the prescribed equipments, and be in the charge of such medical and nursing staff

as may

be prescribed.

The Royal Commission on Labour recommended provision for first aid to be made in

factories. Referring to this point it observed; “In some provinces the larger factories are

requires by rules made under Factories Act to maintain first-aid appliances; but the

practice is by no means generally enforced even in the larger factories. We recommend

that, in the case of all factories where mechanical power is used, a first aid box of

prescribed standard, which n eed not involve any great outlay, should be provided and

maintained in the different departments according to the number of workers employed, on

29 Section 45, Factories Act, 194830 KD Srivastava, Commentaries on Factories Act 1948,5th edition, Eastern Book Company, Lucknow, page 478

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a basis to be laid down by local Governments. Steps should be taken to ensure that there

are persons on the staff of the different departments in every factory capable of utilizing

the appliances in the proper manner in case of need.”

(v) Canteens:31

In factories employing more than 250 workers, there shall be a canteen for the use of

workers. The government may prescribe the rules in respect of the —

food stuff to be served in the canteen;

charges to be made;

constitution of a managing committee for the canteen ; and

Representation of the workers in the management of the canteen.

In the case of M.M.R. Khan v. UOI32the Supreme Court distinguished between canteens that

are statutory and non statutory. It was held that statutory canteens are those which

according to a statute shall be provided and held that the employees in statutory canteens

are to be treated as regular employees. In the said case it was further held that employees

in a non statutory canteen, i.e. where canteens are provided even though there was no legal

obligation to do so provide the employees in such non statutory canteens cannot claim to

be regular employees. Where it is statutorily obligatory on the employer to provide a

canteen for the use of his employees, the canteen becomes part of the establishment and

therefore the workers employed in the canteen are the employees of the Management.

(vi) Shelters, restrooms and lunch rooms:33

Adequate and suitable shelters, rest rooms, and lunch rooms with drinking water facility

shall be made in factories employing 150 workers or more. Workers can eat meals brought

by them in

such rooms. Rest and lunch rooms shall be sufficiently lighted and ventilated. It shall be

maintained in cool and clean conditions.

31 Section 46, Factories Act, 194832 (1990) Supp SCC 19133 Section 47, Factories Act, 1948

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(vii) Creches:34

Earlier, it was seen that participation of the womenfolk was only in industries such as

textiles, cashewnut, tea factories, etc.35 Women formed a quarter of the labour force in

these industries. 36However, it was seen that there wasn't much participation in other

spheres. This has changed over the time and women are seen in almost all kinds of

factories today.

In every factory, where more than 50 women workers are employed, provision shall be

made for suitable and adequate room for the use of children under the age of six years of

such women. Such a room shall be adequately lighted and ventilated. It shall be maintained

in clean and sanitary conditions under the charge of a woman trained in the care of

children and infants.

(viii) Welfare Officer:37

The factories Act also provides for employment of welfare officers with prescribed

qualification to look into the implementation of various facilities provided for. Such a

provision exists in every factory employing more than 500 workers.

Apart from the above elucidated steps, some voluntary measures are taken at times by

employers to ensure the well being of their employees. In addition to providing welfare

facilities in the factory premises, workers are also provided certain benefits and facilities

outside the factory. These include:

maternity benefits;

gratuity, pension and provident fund benefits;

medical benefits;

educational facilities;

housing facilities;

recreational facilities including sports and cultural activities;

34 Section 48, Factories Act, 194835 N.K.Adyanthaya, Director, Labour Bureau, Ministry of Labour, Government of India, Women's employment

in India, 70 Int'l Lab. Rev. 44 (1954)36 "Women Employment in Asian Countries", International Labour Review, Vol.LXVIII, No.3, Sep.1953, p.30337 Section 49, Factories Act, 1948

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library and reading rooms;

holiday home and leave travel facilities;

consumers’ cooperative stores and fair price shops;

vocational training; and

Transportation facility to and from the place of work.

CONCLUSION

Labor welfare facilities are those which result in improving the conditions under which

workers are employed and work. These include not only the health but also welfare

measures adopted for the benefit of the workers. The Factories Act, 1948 has provided for

certain health and welfare measures for workers working in factories in India. Health

facilities provided in factories for workers include provision for cleanliness of the factory

premises, disposal of wastes and effluents, ventilation and temperature, dust and fumes,

artificial humidification, overcrowding, lighting, drinking water, latrines and urinals and

spittoons. Welfare facilities for workers include adequate washing facilities, facilities for

storing and drying clothing, sitting facility, first-aid, and canteen facility; and facilities for

shelters, rest rooms, lunch rooms and creches. Welfare amenities provided to workers

outside the factory premises include medical and retirement benefits, housing and

educational facilities, recreational facilities, holiday homes and leave travel facilities and

transportation facility to and from the place of work.

It has been found that there is a correlation between the welfare measures and manpower

productivity i.e. if the proper welfare measures are taken then the productivity of the

employees will increase and ultimately the profit of the organization will increase.

The welfare measures increases the productivity of the organization as well as it enhances

the morale and motivation of the employees which gives a positive impact on the efficiency

level of the organization.

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The productivity of labor is an essential condition for the prosperity of enterprises and the

well being of the workers and their families. While the production facilities at workplace

and the remuneration are important, attitudes towards work, and the value placed by the

society on dignity of labor are equally important in influencing the productivity of labor.

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BIBLIOGRAPHY

ARTICLES

1. AM Sarma, Aspects of Labour Welfare and Social Security, Himalaya Publishing

House, 9th edn reprint, 2007,

2. KD Srivastava, Commentaries on Factories Act 1948, 5th edition, Eastern Book

Company, Lucknow, page 478

BOOKS

1. George A. Johnston, The Emergent Countries and the Transformation of the I.L.O,

Studies: An Irish Quarterly Review, Vol. 54, No. 214/215 (Summer/Autumn, 1965),

pp. 241-251 http://www.jstor.org/stable/30089012

2. Mark R. Rosenzweig, Women, Insurance Capital, and Economic Development in Rural

India Women, Insurance Capital, and Economic Development in Rural India, The

Journal of Human Resources, Vol. 28, No. 4, Special Issue: Symposium on

Investments in Women's Human Capital and Development (Autumn, 1993), pp. 735-

758

3. N.K.Adyanthaya, Director, Labour Bureau, Ministry of Labour, Government of India,

Women's employment in India, 70 Int'l Lab. Rev. 44 (1954)

4. Rohini Hensman, The Impact of Globalisation on Employment in India and Responses

from the Formal and Informal Sectors, IIAS/IISG CLARA Working Paper, No. 15

Amsterdam, 2001 <http://www.iisg.nl/clara/publicat/clara15.pdf>

5. VKR Menon , Influence of International Labour Convention on Indian Labour

Legislation, Int'l Lab. Rev., 1956

20