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THE EMPLOYEES’ PROVIDENT FUNDS ANDTHE EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952MISCELLANEOUS PROVISIONS ACT, 1952

(Act No. 19 of 1952)(Act No. 19 of 1952)An Act to provide for the institution of provident funds, pension fund andAn Act to provide for the institution of provident funds, pension fund and

deposit-linked insurance fund for employees in factories and other establishments.deposit-linked insurance fund for employees in factories and other establishments.

Be it enacted by Parliament as follows:- Be it enacted by Parliament as follows:-

1. Short title, extent and application.1. Short title, extent and application.- (1) This Act may be called the- (1) This Act may be called the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.

(2) (2) It extends to the whole of India except the State of Jammu andIt extends to the whole of India except the State of Jammu and KashmirKashmir..

(3) Subject to the provisions contained in section 16, it applies - (3) Subject to the provisions contained in section 16, it applies - (a) to every establishment which is a factory engaged in any industry(a) to every establishment which is a factory engaged in any industry

specified in Schedule I and in which twenty or more persons are employed and specified in Schedule I and in which twenty or more persons are employed and (b) to any other establishment employing twenty or more persons or class of(b) to any other establishment employing twenty or more persons or class of

such establishments which the Central Government may, by notification in thesuch establishments which the Central Government may, by notification in the Official Gazette, specify, in this behalf:Official Gazette, specify, in this behalf:

Provided that the Central Government may, after giving not less than twoProvided that the Central Government may, after giving not less than two months’ notice of its intention so to do, by notification in the Official Gazette,months’ notice of its intention so to do, by notification in the Official Gazette, apply the provisions of this Act to any establishment employing such number ofapply the provisions of this Act to any establishment employing such number of persons less than twenty as may be specified in the notification.persons less than twenty as may be specified in the notification.

2. Definitions. - In this Act, unless the context otherwise requires, -2. Definitions. - In this Act, unless the context otherwise requires, -

(a) (a) “Appropriate Government”“Appropriate Government” means - means -

(i) in relation to an establishment belonging to, or under the control of, the(i) in relation to an establishment belonging to, or under the control of, the Central Government or in relation to, an establishment connected with a railwayCentral Government or in relation to, an establishment connected with a railway company, a major port, a mine or an oil-filed or a controlled industry or in relationcompany, a major port, a mine or an oil-filed or a controlled industry or in relation to an establishment having departments or branches in more than one State, theto an establishment having departments or branches in more than one State, the Central Government: andCentral Government: and

(ii) in relation to any other establishment, the State Government:(ii) in relation to any other establishment, the State Government:

(aa) (aa) “authorised officer”“authorised officer” means the Central Provident Fund Commissioner, means the Central Provident Fund Commissioner, Additional Central Provident Fund Commissioner, Deputy Provident FundAdditional Central Provident Fund Commissioner, Deputy Provident Fund Commissioner, Regional Provident Fund Commissioner or such other officer asCommissioner, Regional Provident Fund Commissioner or such other officer as

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may be authorised by the Central Government, by notification in the Officialmay be authorised by the Central Government, by notification in the Official Gazette;Gazette;

(b) (b) “basic wages”“basic wages” means all emoluments which are earned by an employee means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordancewhile on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cashwith the terms of the contract of employment and which are paid or payable in cash to him, but does not include- to him, but does not include-

(i) the cash value of any food concession;(i) the cash value of any food concession;

(ii) any dearness allowance that is to say, all cash payments by whatever(ii) any dearness allowance that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living, house-name called paid to an employee on account of a rise in the cost of living, house-rent allowance, overtime allowance, bonus, commission or any other similarrent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work doneallowance payable to the employee in respect of his employment or of work done in such employment;in such employment;

(iii) any presents made by the employer;(iii) any presents made by the employer;

(c) (c) “Contribution”“Contribution” means a contribution payable in respect of a member means a contribution payable in respect of a member under a scheme or the contribution payable in respect of an employee to whom theunder a scheme or the contribution payable in respect of an employee to whom the Insurance Scheme applies;Insurance Scheme applies;

(d) (d) “controlled industry”“controlled industry” means any industry the control of which by the means any industry the control of which by the Union has been declared by a Central Act to be expedient in the public interest;Union has been declared by a Central Act to be expedient in the public interest;

(e) (e) “employer”“employer” means- means-

(i) in relation to an establishment which is a factory, the owner or occupier(i) in relation to an establishment which is a factory, the owner or occupier of the factory, including the agent of such owner or occupier, the legalof the factory, including the agent of such owner or occupier, the legal representative of a deceased owner or occupier and, where a person has beenrepresentative of a deceased owner or occupier and, where a person has been named as a manager of the factory under clause f of sub-section 1 of section 7 ofnamed as a manager of the factory under clause f of sub-section 1 of section 7 of the Factories Act, 1948 (63 of 1948), the person so named; and the Factories Act, 1948 (63 of 1948), the person so named; and

(ii) in relation to any other establishment, the person who, or the authority(ii) in relation to any other establishment, the person who, or the authority which, has the ultimate control over the affairs of the establishment, and where thewhich, has the ultimate control over the affairs of the establishment, and where the said affairs are entrusted to a manager, managing director or managing agent, suchsaid affairs are entrusted to a manager, managing director or managing agent, such manager, managing director or managing agent;manager, managing director or managing agent;

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(f) (f) “employee”“employee” means any person who is employed for wages in any kind of means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an establishmentwork, manual or otherwise, in or in connection with the work of an establishment and who gets his wages directly or indirectly from the employer, and includes anyand who gets his wages directly or indirectly from the employer, and includes any person,-person,-

(i) employed by or through a contractor in or in connection with the work of(i) employed by or through a contractor in or in connection with the work of the establishment;the establishment;

(ii) engaged as an apprentice, not being an apprentice engaged under the(ii) engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of 1961) or under the standing orders of theApprentices Act, 1961 (52 of 1961) or under the standing orders of the establishment;establishment;

(ff) (ff) “exempted employee”“exempted employee” means an employee to whom a Scheme or the means an employee to whom a Scheme or the Insurance Scheme, as the case may be, would, but for the exemption granted underInsurance Scheme, as the case may be, would, but for the exemption granted under section 17, have applied;section 17, have applied;

(fff) (fff) “exempted establishment”“exempted establishment” means an establishment in respect of means an establishment in respect of which an exemption has been granted under section 17 from the operation of all orwhich an exemption has been granted under section 17 from the operation of all or any of the provisions of any Scheme or the Insurance Scheme, as the case may be,any of the provisions of any Scheme or the Insurance Scheme, as the case may be, whether such exemption has been granted to the establishment as such or to anywhether such exemption has been granted to the establishment as such or to any person or class of persons employed therein;person or class of persons employed therein;

(g) (g) “factory”“factory” means any premises, including the precincts thereof, in any means any premises, including the precincts thereof, in any part of which a manufacturing process is being carried on or is ordinarily so carriedpart of which a manufacturing process is being carried on or is ordinarily so carried on, whether with the aid of power or without the aid of power; on, whether with the aid of power or without the aid of power;

(h) (h) “Fund”“Fund” means the Provident Fund established under a Scheme; means the Provident Fund established under a Scheme;

(i) (i) “industry”“industry” means any industry specified in Schedule I, and includes any means any industry specified in Schedule I, and includes any other industry added to the Schedule by notification under section 4; other industry added to the Schedule by notification under section 4;

(ib) (ib) “Insurance Scheme”“Insurance Scheme” means the Employees’ Deposit-linked Insurance means the Employees’ Deposit-linked Insurance Scheme framed under sub-section 1 of section 6C;Scheme framed under sub-section 1 of section 6C;

(ic) (ic) “manufacture” or “manufacturing process”“manufacture” or “manufacturing process” means any process for means any process for making, altering, repairing, ornamenting, finishing, packing, oiling, washing,making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing or otherwise treating or adapting any article orcleaning, breaking up, demolishing or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal;substance with a view to its use, sale, transport, delivery or disposal;

(j) (j) “member”“member” means a member of the Fund; means a member of the Fund;

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(k) (k) “occupier of a factory”“occupier of a factory” means the person, who has ultimate control over means the person, who has ultimate control over the affairs of the factory, and, where the said affairs are entrusted to a managingthe affairs of the factory, and, where the said affairs are entrusted to a managing agent, such agent shall be deemed to be the occupier of the factory;agent, such agent shall be deemed to be the occupier of the factory;

(kA) (kA) “Pension Fund”“Pension Fund” means the Employees’ Pension Fund established under means the Employees’ Pension Fund established under sub-section 2 of section 6A;sub-section 2 of section 6A;

(kB) (kB) “Pension Scheme”“Pension Scheme” means the Employees’ Pension Scheme framed means the Employees’ Pension Scheme framed under sub-section 1 of section 6A;under sub-section 1 of section 6A;

(kb) (kb) “Recovery Officer”“Recovery Officer” means any officer of the Central Government, means any officer of the Central Government, State Government or the Board of Trustees constituted under section 5A, who mayState Government or the Board of Trustees constituted under section 5A, who may be authorised by the Central Government, by notification in the Official Gazette,be authorised by the Central Government, by notification in the Official Gazette, to exercise the powers of a Recovery Officer under this Act;to exercise the powers of a Recovery Officer under this Act;

(l) (l) “Scheme”“Scheme” means the Employees’ Provident Funds scheme framed under means the Employees’ Provident Funds scheme framed under section 5;section 5;

(l1) (l1) “superannuation”“superannuation”, in relation to an employee, who is the member of, in relation to an employee, who is the member of the Pension Scheme, means the attainment, by the said employee, of the age ofthe Pension Scheme, means the attainment, by the said employee, of the age of fifty-eight years.fifty-eight years.

(m) (m) “Tribunal”“Tribunal” means the Employees’ Provident Funds Appellate Tribunal means the Employees’ Provident Funds Appellate Tribunal constituted under section 7D.constituted under section 7D.

2A. 2A. Establishments to include all departments and branches.Establishments to include all departments and branches. - For the - For the removal of doubts, it is hereby declared that where an establishment consists ofremoval of doubts, it is hereby declared that where an establishment consists of different departments or has branches, whether situate in the same place or indifferent departments or has branches, whether situate in the same place or in different places, all such departments or branches shall be treated as parts of thedifferent places, all such departments or branches shall be treated as parts of the same establishment.same establishment.

3. Power to apply Act to an establishment which has a common3. Power to apply Act to an establishment which has a common provident fund with another establishmentprovident fund with another establishment..

4. Power to add to Schedule I 4. Power to add to Schedule I (to add new industry to the schedule)(to add new industry to the schedule)

5. Employees’ Provident Funds Scheme.5. Employees’ Provident Funds Scheme. – (1) The Central Government – (1) The Central Government may, by notification in the Official Gazette, frame a scheme to be called themay, by notification in the Official Gazette, frame a scheme to be called the

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Employees’ Provident Fund Scheme for the establishment of provident fundsEmployees’ Provident Fund Scheme for the establishment of provident funds under this Act for employees or for any class of employees and specify theunder this Act for employees or for any class of employees and specify the establishments or class of establishments to which the said Scheme shall apply andestablishments or class of establishments to which the said Scheme shall apply and there shall be established, as soon as may be after the framing of the Scheme, athere shall be established, as soon as may be after the framing of the Scheme, a Fund in accordance with the provisions of this Act and the Scheme Fund in accordance with the provisions of this Act and the Scheme

(1A) The Fund shall vest in, and be administered by, the Central Board(1A) The Fund shall vest in, and be administered by, the Central Board constituted under section 5A.constituted under section 5A. (1B) Subject to the provisions of this Act, a Scheme framed under sub(1B) Subject to the provisions of this Act, a Scheme framed under sub section 1 may provide for all or any of the matters specified in Schedule II.section 1 may provide for all or any of the matters specified in Schedule II. (2) A Scheme framed under sub-section 1 may provide that any of its (2) A Scheme framed under sub-section 1 may provide that any of its provisions shall take effect either prospectively or retrospectively on such date asprovisions shall take effect either prospectively or retrospectively on such date as may be specified in this behalf in the Scheme.may be specified in this behalf in the Scheme.

5A. Central Board.5A. Central Board. - (1) The Central Government may, by notification in - (1) The Central Government may, by notification in the Official Gazette, constitute, with effect from such date as may be specifiedthe Official Gazette, constitute, with effect from such date as may be specified therein, a Board of Trustees for the territories to which this Act extendstherein, a Board of Trustees for the territories to which this Act extends hereinafter in this Act referred to as the Central Board consisting of the followinghereinafter in this Act referred to as the Central Board consisting of the following persons as members, namely:-persons as members, namely:-

(a) a Chairman and a Vice-Chairman to be appointed by the Central(a) a Chairman and a Vice-Chairman to be appointed by the Central Government;Government;

(aa) the Central Provident Fund Commissioner, Ex officio;(aa) the Central Provident Fund Commissioner, Ex officio;(b) not more than five persons appointed by the Central Government from(b) not more than five persons appointed by the Central Government from

amongst its officials;amongst its officials;(c) not more than fifteen persons representing Governments of such States(c) not more than fifteen persons representing Governments of such States

as the Central Government may specify in this behalf, appointed by the Centralas the Central Government may specify in this behalf, appointed by the Central Government;Government;

(d) ten persons representing employers of the establishments to which the(d) ten persons representing employers of the establishments to which the Scheme applies, appointed by the Central Government after consultation with suchScheme applies, appointed by the Central Government after consultation with such organisations of employers as may be recognised by the Central Government inorganisations of employers as may be recognised by the Central Government in this behalf; andthis behalf; and

(e) ten persons representing employees in the establishments to which the(e) ten persons representing employees in the establishments to which the Scheme applies, appointed by the Central Government after consultation with suchScheme applies, appointed by the Central Government after consultation with such organisations of employees as may be recognised by the Central Government inorganisations of employees as may be recognised by the Central Government in this behalf.this behalf.

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(2) The terms and conditions subject to which a member of the Central(2) The terms and conditions subject to which a member of the Central Board may be appointed and the time, place and procedure of the meetings of theBoard may be appointed and the time, place and procedure of the meetings of the Central Board shall be such as may be provided for in the Scheme.Central Board shall be such as may be provided for in the Scheme.

(3) The Central Board shall subject to the provisions of section 6 and(3) The Central Board shall subject to the provisions of section 6 and section 6C administer the Fund vested in it in such manner as may be specified insection 6C administer the Fund vested in it in such manner as may be specified in the Scheme.the Scheme.

(4) The Central Board shall perform such other functions as it may be(4) The Central Board shall perform such other functions as it may be required to perform by or under any provisions of the Scheme, the Pension Schemerequired to perform by or under any provisions of the Scheme, the Pension Scheme and the Insurance scheme.and the Insurance scheme.

(5) The Central Board shall maintain proper accounts of its income and(5) The Central Board shall maintain proper accounts of its income and expenditure in such form and in such manner as the Central Government may, afterexpenditure in such form and in such manner as the Central Government may, after consultation with the Comptroller and Auditor-General of India, specify in theconsultation with the Comptroller and Auditor-General of India, specify in the Scheme.Scheme.

(6) The accounts of the Central Board shall be audited annually by the(6) The accounts of the Central Board shall be audited annually by the comptroller and Auditor-General of India and any expenditure incurred by him incomptroller and Auditor-General of India and any expenditure incurred by him in connection with such audit shall be payable by the Central Board to theconnection with such audit shall be payable by the Central Board to the Comptroller and Auditor-General of India.Comptroller and Auditor-General of India.

(7) The Comptroller and Auditor-General of India and any person appointed(7) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Central Board shall haveby him in connection with the audit of the accounts of the Central Board shall have the same rights and privileges and authority in connection with such audit as thethe same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General has, in connection with the audit of GovernmentComptroller and Auditor-General has, in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books,accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers, documents and papers and inspect any of the officesaccounts, connected vouchers, documents and papers and inspect any of the offices of the Central Board.of the Central Board.

(8) The accounts of the Central Board as certified by the Comptroller and(8) The accounts of the Central Board as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalfAuditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded to the Central Boardtogether with the audit report thereon shall be forwarded to the Central Board which shall forward the same to the Central Government along with its commentswhich shall forward the same to the Central Government along with its comments on the report of the Comptroller and Auditor-General.on the report of the Comptroller and Auditor-General.

(9) It shall be the duty of the Central Board to submit also to the Central(9) It shall be the duty of the Central Board to submit also to the Central Government an annual report of its work and activities and the CentralGovernment an annual report of its work and activities and the Central Government shall cause a copy of the annual report, the audited accounts togetherGovernment shall cause a copy of the annual report, the audited accounts together with the report of the Comptroller and Auditor-General of India and the commentswith the report of the Comptroller and Auditor-General of India and the comments of the Central Board thereon to be laid before each House of Parliament.of the Central Board thereon to be laid before each House of Parliament.

5AA.Executive Committee.5AA.Executive Committee. – (1) The Central Government may, by – (1) The Central Government may, by notification in the Official Gazette, constitute, with effect from such date as may benotification in the Official Gazette, constitute, with effect from such date as may be specified therein, an Executive Committee to assist the Central Board in thespecified therein, an Executive Committee to assist the Central Board in the performance of its functions.performance of its functions.

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(2) The Executive Committee shall consist of the following persons as (2) The Executive Committee shall consist of the following persons as members, namely:-members, namely:-

(a) a Chairman appointed by the Central Government from amongst the(a) a Chairman appointed by the Central Government from amongst the members of the Central Board:members of the Central Board:

(b) two persons appointed by the Central Government from amongst the(b) two persons appointed by the Central Government from amongst the persons referred to in clause b of sub-section 1 of section 5A;persons referred to in clause b of sub-section 1 of section 5A;

(c) three persons appointed by the Central Government from amongst the(c) three persons appointed by the Central Government from amongst the persons referred to in clause c of sub-section 1 of section 5A;persons referred to in clause c of sub-section 1 of section 5A;

(d) three persons representing the employers elected by the Central Board(d) three persons representing the employers elected by the Central Board from amongst the persons referred to in clause d of sub-section 1 of section 5A;from amongst the persons referred to in clause d of sub-section 1 of section 5A;

(e) three persons representing the employees elected by the Central Board(e) three persons representing the employees elected by the Central Board from amongst the persons referred to in clause e of sub-section 1 of section 5A;from amongst the persons referred to in clause e of sub-section 1 of section 5A;

(f) the Central Provident Fund Commissioner, ex-officio.(f) the Central Provident Fund Commissioner, ex-officio.

(3) The terms and conditions subject to which a member of the Central(3) The terms and conditions subject to which a member of the Central Board may be appointed or elected to the Executive Committee and the time, placeBoard may be appointed or elected to the Executive Committee and the time, place and procedure of the meetings of the Executive Committee shall be such as may beand procedure of the meetings of the Executive Committee shall be such as may be provided for in the Scheme.provided for in the Scheme.

5B. State Board.5B. State Board.- (1) The Central Government may, after consultation- (1) The Central Government may, after consultation with the Government of any State, by notification in the Official Gazette,with the Government of any State, by notification in the Official Gazette, constitute for that State a Board of Trustees hereinafter in this Act referred to as theconstitute for that State a Board of Trustees hereinafter in this Act referred to as the State Board in such manner as may be provided for in the Scheme.State Board in such manner as may be provided for in the Scheme.

(2) A State Board shall exercise such powers and perform such duties as the(2) A State Board shall exercise such powers and perform such duties as the Central Government may assign to it from time to time.Central Government may assign to it from time to time.

(3) The terms and conditions subject to which a member of a State Board(3) The terms and conditions subject to which a member of a State Board may be appointed and the time, place and procedure of the meetings of a Statemay be appointed and the time, place and procedure of the meetings of a State Board shall be such as may be provided for in the Scheme.Board shall be such as may be provided for in the Scheme.

5C. Board of Trustees to be body corporate.5C. Board of Trustees to be body corporate.- Every Board of Trustees- Every Board of Trustees constituted under section 5A or section 5B shall be a body corporate under theconstituted under section 5A or section 5B shall be a body corporate under the name specified in the notification constituting it, having perpetual succession andname specified in the notification constituting it, having perpetual succession and a common seal and shall by the said name sue and be sued.a common seal and shall by the said name sue and be sued.

5DD. Acts and proceedings of the Central Board or its Executive5DD. Acts and proceedings of the Central Board or its Executive Committee or the State Board not to be invalidated on certain grounds.Committee or the State Board not to be invalidated on certain grounds. – No – No act done or proceeding taken by the Central Board or the Executive Committeeact done or proceeding taken by the Central Board or the Executive Committee

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constituted under section 5AA or the State Board shall be questioned on the groundconstituted under section 5AA or the State Board shall be questioned on the ground merely of the existence of any vacancy in, or any defect in the constitution of, themerely of the existence of any vacancy in, or any defect in the constitution of, the Central Board or the Executive Committee or the State Board, as the case may be.Central Board or the Executive Committee or the State Board, as the case may be.

5E. Delegation.5E. Delegation. - The Central Board may delegate to the Executive - The Central Board may delegate to the Executive Committee or to the Chairman of the Board or to any of its officers and a StateCommittee or to the Chairman of the Board or to any of its officers and a State Board may delegate to its Chairman or to any of its officers, subject to suchBoard may delegate to its Chairman or to any of its officers, subject to such conditions and limitations, if any, as it may specify, such of its powers andconditions and limitations, if any, as it may specify, such of its powers and functions under this Act as it may deem necessary for the efficient administrationfunctions under this Act as it may deem necessary for the efficient administration of the Scheme, the Pension Scheme and the Insurance Scheme. of the Scheme, the Pension Scheme and the Insurance Scheme.

6. Contributions and matters which may be provided for in Schemes.6. Contributions and matters which may be provided for in Schemes. – –

The contribution which shall be paid by the employer to the Fund shallThe contribution which shall be paid by the employer to the Fund shall be ten percent. Of the basic wages, dearness allowance and retainingbe ten percent. Of the basic wages, dearness allowance and retaining allowanceallowance, if any, for the time being payable to each of the employees , if any, for the time being payable to each of the employees whetherwhether employed by him directly or by or through a contractoremployed by him directly or by or through a contractor , , and the employee’sand the employee’s contribution shall be equal to the contribution payable by the employer incontribution shall be equal to the contribution payable by the employer in respect of himrespect of him and may, and may, if any employee so desires, be an amount exceedingif any employee so desires, be an amount exceeding ten percent of his basic wages, dearness allowance and retaining allowance iften percent of his basic wages, dearness allowance and retaining allowance if any, subject to the condition that the employer shall not be under anany, subject to the condition that the employer shall not be under an obligation to pay any contribution over and above his contribution payableobligation to pay any contribution over and above his contribution payable under this sectionunder this section: :

Provided that in its application to any establishmentProvided that in its application to any establishment or class of or class of establishments which the Central Government, after making such inquiry as itestablishments which the Central Government, after making such inquiry as it deems fit, may, by notification in the Official Gazette specify, deems fit, may, by notification in the Official Gazette specify, this section shall bethis section shall be subject to the modification that for the words “ten percent”, at both the placessubject to the modification that for the words “ten percent”, at both the places where they occur, the words “12 percent” shall be substitutedwhere they occur, the words “12 percent” shall be substituted::

Provided further that where the amount of any contribution payableProvided further that where the amount of any contribution payable under this Act involves a fraction of a rupee, the Scheme may provide forunder this Act involves a fraction of a rupee, the Scheme may provide for rounding off of such fraction to the nearest rupee, half of a rupee, or quarterrounding off of such fraction to the nearest rupee, half of a rupee, or quarter of a rupee.of a rupee.

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Explanation I – For the purposes of this section dearness allowance shall beExplanation I – For the purposes of this section dearness allowance shall be deemed to include also the cash value of any food concession allowed to thedeemed to include also the cash value of any food concession allowed to the employee.employee.

Explanation II. – For the purposes of this section, “retaining allowance”Explanation II. – For the purposes of this section, “retaining allowance” means allowance payable for the time being to an employee of any factory or othermeans allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working, forestablishment during any period in which the establishment is not working, for retaining his services.retaining his services.

6A. Employees’ Pension Scheme.6A. Employees’ Pension Scheme. – (1) The Central Government may, by – (1) The Central Government may, by notification in the Official Gazette, frame a scheme to be called the Employees’ notification in the Official Gazette, frame a scheme to be called the Employees’

Pension Scheme for the purpose of providing for –Pension Scheme for the purpose of providing for –

(a) superannuation pension, retiring pension or permanent total disablement(a) superannuation pension, retiring pension or permanent total disablement pension to the employees of any establishment or class of establishments to whichpension to the employees of any establishment or class of establishments to which this Act applies; andthis Act applies; and

(b) Widow or widower’s pension, children pension or orphan pension(b) Widow or widower’s pension, children pension or orphan pension payable to the beneficiaries of such employees.payable to the beneficiaries of such employees. (2) Notwithstanding anything contained in section 6, there shall be(2) Notwithstanding anything contained in section 6, there shall be established , as soon as may be after framing of the Pension Scheme, a Pensionestablished , as soon as may be after framing of the Pension Scheme, a Pension Fund into which there shall be paid, from time to time, in respect of everyFund into which there shall be paid, from time to time, in respect of every employee who is a member of the Pension Scheme, -employee who is a member of the Pension Scheme, -

(a) (a) such sums from the employer’s contribution under section 6, notsuch sums from the employer’s contribution under section 6, not exceeding eight and one-third per cent of the basic wages, dearness allowanceexceeding eight and one-third per cent of the basic wages, dearness allowance and retaining allowanceand retaining allowance, if any, of the concerned employees, as may be specified, if any, of the concerned employees, as may be specified in the Pension Scheme;in the Pension Scheme;

(b) such sums as are payable by the employers of exempted establishments(b) such sums as are payable by the employers of exempted establishments under sub-section (6) of section 17;under sub-section (6) of section 17;

(c) the net assets of the Employees’ Family Pension as on the date of(c) the net assets of the Employees’ Family Pension as on the date of establishment of the Pension Fund; establishment of the Pension Fund;

(d) such sums as the central Government may, after due appropriation by(d) such sums as the central Government may, after due appropriation by Parliament by law in this behalf, specify.Parliament by law in this behalf, specify.

(3) On the establishment of the Pension Fund, the Family Pension Scheme(3) On the establishment of the Pension Fund, the Family Pension Scheme hereinafter referred to as the ceased scheme shall cease to operate and all assets ofhereinafter referred to as the ceased scheme shall cease to operate and all assets of the ceased scheme shall vest in and shall stand transferred to, and all liabilitiesthe ceased scheme shall vest in and shall stand transferred to, and all liabilities under the ceased scheme shall be enforceable against, the Pension Fund and theunder the ceased scheme shall be enforceable against, the Pension Fund and the

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beneficiaries under the ceased scheme shall be entitled to draw the benefits, notbeneficiaries under the ceased scheme shall be entitled to draw the benefits, not less than the benefits, they were entitled to under the ceased scheme, from theless than the benefits, they were entitled to under the ceased scheme, from the Pension fund.Pension fund.

(4) Pension Fund shall vest in and be administered by the Central Board in(4) Pension Fund shall vest in and be administered by the Central Board in such manner as may be specified in the Pension Scheme.such manner as may be specified in the Pension Scheme.

(5) Subject to the provisions of this Act, the Pension Scheme may provide(5) Subject to the provisions of this Act, the Pension Scheme may provide for all or any of the matters specified in Schedule III.for all or any of the matters specified in Schedule III.

(6) The Pension Scheme may provide that all or any of its provisions shall(6) The Pension Scheme may provide that all or any of its provisions shall take effect either prospectively or retrospectively on such date as may be specifiedtake effect either prospectively or retrospectively on such date as may be specified in that behalf in that scheme.in that behalf in that scheme.

(7) A Pension Scheme, framed under sub-section 1 shall be laid, as soon as(7) A Pension Scheme, framed under sub-section 1 shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, formay be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two ora total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediatelymore successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree infollowing the session or the successive sessions aforesaid, both Houses agree in making any modification in the scheme or both Houses agree that the schememaking any modification in the scheme or both Houses agree that the scheme should not be made, the scheme shall thereafter have effect only in such modifiedshould not be made, the scheme shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any suchform or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anythingmodification or annulment shall be without prejudice to the validity of anything previously done under the scheme.previously done under the scheme.

6C. Employees’ Deposit-linked Insurance Scheme.6C. Employees’ Deposit-linked Insurance Scheme. - (1) The Central - (1) The Central Government may, by notification in the Official Gazette, frame a scheme to beGovernment may, by notification in the Official Gazette, frame a scheme to be called the Employees’ Deposit-linked Insurance Scheme for the purpose ofcalled the Employees’ Deposit-linked Insurance Scheme for the purpose of providing life insurance benefits to the employees of any establishment orproviding life insurance benefits to the employees of any establishment or class of establishments to which this Act appliesclass of establishments to which this Act applies..

(2) There shall be established, as soon as may be after the framing of(2) There shall be established, as soon as may be after the framing of Insurance Scheme, Insurance Scheme, a Deposit-linked Insurance Fund into which shall be paida Deposit-linked Insurance Fund into which shall be paid by the employer from time to time in respect of every such employee inby the employer from time to time in respect of every such employee in relation to whom he is the employer, such amount, not being more than onerelation to whom he is the employer, such amount, not being more than one per cent of the aggregate of the basic wages, dearness allowance andper cent of the aggregate of the basic wages, dearness allowance and retaining allowanceretaining allowance if any for the time being payable in relation to such employee if any for the time being payable in relation to such employee as the Central Government may, by notification in the Official Gazette, specify.as the Central Government may, by notification in the Official Gazette, specify.

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Explanation. - For the purposes of this sub-section, the expressionsExplanation. - For the purposes of this sub-section, the expressions “dearness allowance’ and ‘retaining allowance’ have the same meanings as in“dearness allowance’ and ‘retaining allowance’ have the same meanings as in section 6. section 6.

(4) (a) (4) (a) The employer shall pay into the Insurance Fund such furtherThe employer shall pay into the Insurance Fund such further sums of money, not exceeding one-fourth of the contribution which he issums of money, not exceeding one-fourth of the contribution which he is required to make under sub-section 2, as the Central Government may, fromrequired to make under sub-section 2, as the Central Government may, from time to time, determine to meet all the expenses in connection with thetime to time, determine to meet all the expenses in connection with the administration of the Insurance Scheme other than the expenses towards theadministration of the Insurance Scheme other than the expenses towards the cost of any benefits provided by or under that Schemecost of any benefits provided by or under that Scheme..

(5) The Insurance Fund shall vest in the Central Board and be administered(5) The Insurance Fund shall vest in the Central Board and be administered by it in such manner as may be specified in the Insurance Scheme.by it in such manner as may be specified in the Insurance Scheme.

(6) The insurance Scheme may provide for all or any of the matters specified(6) The insurance Scheme may provide for all or any of the matters specified in Schedule IV.in Schedule IV.

(7) The Insurance Scheme may provide that any of its provision shall take(7) The Insurance Scheme may provide that any of its provision shall take effect either prospectively or retrospectively on such date as may be specified ineffect either prospectively or retrospectively on such date as may be specified in this behalf in that Scheme.this behalf in that Scheme.

6D. Laying of Schemes before Parliament.6D. Laying of Schemes before Parliament. - Every scheme framed under - Every scheme framed under section 5, section 6A and section 6C shall be laid, as soon as may be after it issection 5, section 6A and section 6C shall be laid, as soon as may be after it is framed, before each House of Parliament, while it is in session, for a total period offramed, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successivethirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the sessionsessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making anyor the successive sessions aforesaid, both Houses agree in making any modification in the scheme, or both Houses agree that the scheme should not bemodification in the scheme, or both Houses agree that the scheme should not be framed, the scheme shall thereafter have effect only in such modified form or be offramed, the scheme shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however, that any such modification or annulmentno effect, as the case may be; so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under thatshall be without prejudice to the validity of anything previously done under that scheme.scheme.

7. Modification of Scheme7. Modification of Scheme – (1) The Central Government may, by – (1) The Central Government may, by notification in the Official Gazette add to, amend or vary either prospectively ornotification in the Official Gazette add to, amend or vary either prospectively or retrospectively, the Scheme, the Pension Scheme or the Insurance Scheme, as theretrospectively, the Scheme, the Pension Scheme or the Insurance Scheme, as the case may be.case may be.

(2) Every notification issued under sub-section 1 shall be laid, as soon as(2) Every notification issued under sub-section 1 shall be laid, as soon as may be after it is issued, before each House of Parliament while it is in session, formay be after it is issued, before each House of Parliament while it is in session, for

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a total period of thirty days, which may be comprised in one session or in two ora total period of thirty days, which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediatelymore successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree infollowing the session or the successive sessions aforesaid, both Houses agree in making any modification in the notification, or both Houses agree that themaking any modification in the notification, or both Houses agree that the notification should not be issued, the notification shall thereafter have effect onlynotification should not be issued, the notification shall thereafter have effect only in such modified form or be of no effect, as the case may be ; so, however, that anyin such modified form or be of no effect, as the case may be ; so, however, that any such modification or annulment shall be without prejudice to the validity ofsuch modification or annulment shall be without prejudice to the validity of anything previously done under that notification.anything previously done under that notification.

7D. Employees’ Provident Funds Appellate Tribunal.7D. Employees’ Provident Funds Appellate Tribunal. – (1) The – (1) The Central Government may, by notification in the Official Gazette, constitute one orCentral Government may, by notification in the Official Gazette, constitute one or more Appellate Tribunals to be known as the Employees’ Provident Fundsmore Appellate Tribunals to be known as the Employees’ Provident Funds Appellate Tribunal to exercise the powers and discharge the functions conferred onAppellate Tribunal to exercise the powers and discharge the functions conferred on such Tribunal by this Act and every such Tribunal shall have jurisdiction insuch Tribunal by this Act and every such Tribunal shall have jurisdiction in respect of establishments situated in such area as may be specified in therespect of establishments situated in such area as may be specified in the notification constituting the Tribunal.notification constituting the Tribunal.

(2) A Tribunal shall consist of one person only to be appointed by the(2) A Tribunal shall consist of one person only to be appointed by the Central Government.Central Government.

(3) A person shall not be qualified for appointment as a Presiding Officer of(3) A person shall not be qualified for appointment as a Presiding Officer of a Tribunal hereinafter referred to as the Presiding Officer, unless he is, or has been,a Tribunal hereinafter referred to as the Presiding Officer, unless he is, or has been, or is qualified to be, -or is qualified to be, -

(i) a Judge of a High Court; or(i) a Judge of a High Court; or(ii) a District Judge.(ii) a District Judge.

7E. Term of office.7E. Term of office. - The Presiding Officer of a Tribunal shall hold office - The Presiding Officer of a Tribunal shall hold office for a term of five years from the date on which he enters upon his office or until hefor a term of five years from the date on which he enters upon his office or until he attains the age of sixty-two years, whichever is earlier.attains the age of sixty-two years, whichever is earlier.

7 – I. Appeals to the Tribunal.7 – I. Appeals to the Tribunal. – (1) Any person aggrieved by a – (1) Any person aggrieved by a notification issued by the Central Government, or an order passed by the Centralnotification issued by the Central Government, or an order passed by the Central Government, or any authority, under the proviso to sub-section 3, or sub-section4,Government, or any authority, under the proviso to sub-section 3, or sub-section4, of section I, or section3, or sub-section 1 of section 7A, or section 7B except anof section I, or section3, or sub-section 1 of section 7A, or section 7B except an order rejecting an application for review referred to in sub-section 5 thereof, ororder rejecting an application for review referred to in sub-section 5 thereof, or section 7C, or section 14B may prefer an appeal to a Tribunal against such order.section 7C, or section 14B may prefer an appeal to a Tribunal against such order.

(2) Every appeal under sub-section 1 shall be filed in such form and manner,(2) Every appeal under sub-section 1 shall be filed in such form and manner, within such time and be accompanied by such fees, as may be prescribed.within such time and be accompanied by such fees, as may be prescribed.

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7 – J. Procedure of Tribunals.7 – J. Procedure of Tribunals. – (1) A Tribunal shall have power to – (1) A Tribunal shall have power to regulate its own procedure in all matters arising out of the exercise of its powersregulate its own procedure in all matters arising out of the exercise of its powers or of the discharge of its functions including the places at which the Tribunal shallor of the discharge of its functions including the places at which the Tribunal shall have its sittings.have its sittings.

(2) A Tribunal shall, for the purpose of discharging its functions, have all(2) A Tribunal shall, for the purpose of discharging its functions, have all the powers which are vested in the officers referred to in section 7A and anythe powers which are vested in the officers referred to in section 7A and any proceeding before the Tribunal shall be deemed to be a judicial proceeding withinproceeding before the Tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purpose of section 196, of thethe meaning of sections 193 and 228, and for the purpose of section 196, of the Indian Penal Code (45 of 1860) and the Tribunal shall be deemed to be a civilIndian Penal Code (45 of 1860) and the Tribunal shall be deemed to be a civil court for all the purposes of section 195 and Chapter XXVI of the Code ofcourt for all the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).Criminal Procedure, 1973 (2 of 1974).

7K. Right of appellant to take assistance of legal practitioner and of7K. Right of appellant to take assistance of legal practitioner and of Government, etc., to appoint presenting officers.Government, etc., to appoint presenting officers. – (1) A person preferring an – (1) A person preferring an appeal to a Tribunal under this Act may either appear in person or take theappeal to a Tribunal under this Act may either appear in person or take the assistance of a legal practitioner of his choice to present his case before theassistance of a legal practitioner of his choice to present his case before the Tribunal.Tribunal.

(2) The Central Government or a State Government or any other authority(2) The Central Government or a State Government or any other authority under this Act may authorise one or more legal practitioners or any of its officersunder this Act may authorise one or more legal practitioners or any of its officers to act as presenting officers and every person so authorised may present the caseto act as presenting officers and every person so authorised may present the case with respect to any appeal before a Tribunal.with respect to any appeal before a Tribunal.

7L. Orders of Tribunal.7L. Orders of Tribunal. – (1) A Tribunal may, after giving the parties to – (1) A Tribunal may, after giving the parties to the appeal, an opportunity of being heard, pass such orders thereon as it thinks fit,the appeal, an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or annulling the order appealed against or may refer theconfirming, modifying or annulling the order appealed against or may refer the case back to the authority which passed such order with such directions as thecase back to the authority which passed such order with such directions as the tribunal may think fit, for a fresh adjudication or order, as the case may be, aftertribunal may think fit, for a fresh adjudication or order, as the case may be, after taking additional evidence, if necessary.taking additional evidence, if necessary.

(2) A Tribunal may, at any time within five years from the date of its order,(2) A Tribunal may, at any time within five years from the date of its order, with a view to rectifying any mistake apparent from the record, amend any orderwith a view to rectifying any mistake apparent from the record, amend any order passed by it under sub-section 1 and shall make such amendment in the order if thepassed by it under sub-section 1 and shall make such amendment in the order if the mistake is brought to its notice by the parties to the appeal:mistake is brought to its notice by the parties to the appeal:

Provided that an amendment which has the effect of enhancing the amountProvided that an amendment which has the effect of enhancing the amount due from, or otherwise increasing the liability of, the employer shall not be madedue from, or otherwise increasing the liability of, the employer shall not be made under this sub-section, unless the Tribunal has given notice to him of its intentionunder this sub-section, unless the Tribunal has given notice to him of its intention to do so and has allowed him a reasonable opportunity of being heard.to do so and has allowed him a reasonable opportunity of being heard.

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(3) A Tribunal shall send a copy of every order passed under this section to(3) A Tribunal shall send a copy of every order passed under this section to the parties to the appeal.the parties to the appeal.

(4) Any order made by a Tribunal finally disposing of an appeal shall not be(4) Any order made by a Tribunal finally disposing of an appeal shall not be questioned in any court of law.questioned in any court of law.

7N. Finality of orders constituting a Tribunal.7N. Finality of orders constituting a Tribunal. – No order of the Central – No order of the Central Government appointing any person as the Presiding Officer shall be called inGovernment appointing any person as the Presiding Officer shall be called in question in any manner, and no act or proceeding before a Tribunal shall be calledquestion in any manner, and no act or proceeding before a Tribunal shall be called in question in any manner on the ground merely of any defect in the constitution ofin question in any manner on the ground merely of any defect in the constitution of such Tribunal.such Tribunal.

7–O. Deposit of amount due, on filing appeal.7–O. Deposit of amount due, on filing appeal. – No appeal by the – No appeal by the employer shall be entertained by a Tribunal unless he has deposited with itemployer shall be entertained by a Tribunal unless he has deposited with it seventy-five per cent of the amount due from him as determined by an officerseventy-five per cent of the amount due from him as determined by an officer referred to in section 7A:referred to in section 7A:

Provided that the Tribunal may, for reasons to be recorded in writing, waiveProvided that the Tribunal may, for reasons to be recorded in writing, waive or reduce the amount to be deposited under this section.or reduce the amount to be deposited under this section.

8. Mode of recovery of moneys due from employers8. Mode of recovery of moneys due from employers– any amount due - – any amount due - (a) from the employer in relation to an establishment to which any Scheme(a) from the employer in relation to an establishment to which any Scheme

or the Insurance Scheme applies in respect of any contribution payable to the Fundor the Insurance Scheme applies in respect of any contribution payable to the Fund or, as the case may be, the Insurance Fund, damages recoverable under sectionor, as the case may be, the Insurance Fund, damages recoverable under section 14B, accumulations required to be transferred under sub section 2 of section 15 or14B, accumulations required to be transferred under sub section 2 of section 15 or under sub-section 5 of section 17 or any charges payable by him under any otherunder sub-section 5 of section 17 or any charges payable by him under any other provision of this Act or of any provision of the Scheme or the Insurance Scheme;provision of this Act or of any provision of the Scheme or the Insurance Scheme; or or

(b) from the employer in relation to an exempted establishment in respect of(b) from the employer in relation to an exempted establishment in respect of any damages recoverable under section 14B or any charges payable by him theany damages recoverable under section 14B or any charges payable by him the appropriate Government under any provision of this Act or under any of theappropriate Government under any provision of this Act or under any of the conditions specified under section 17 or in respect of the contribution payable byconditions specified under section 17 or in respect of the contribution payable by him towards the Pension Scheme under the said section 17, may, if the amount ishim towards the Pension Scheme under the said section 17, may, if the amount is in arrear, be recovered in the manner specified in section 8B to 8G.in arrear, be recovered in the manner specified in section 8B to 8G.

8A. Recovery of moneys by employers and contractors8A. Recovery of moneys by employers and contractors..

(1) The amount of contribution that is to say, the employer’s contribution as(1) The amount of contribution that is to say, the employer’s contribution as well as the employee’s contribution in pursuance of any Scheme and thewell as the employee’s contribution in pursuance of any Scheme and the

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employer’s contribution in pursuance of the Insurance Scheme and any charges foremployer’s contribution in pursuance of the Insurance Scheme and any charges for meeting the cost of administering the Fund paid or payable by an employer inmeeting the cost of administering the Fund paid or payable by an employer in respect of an employee employed by or through a contractor may be recovered byrespect of an employee employed by or through a contractor may be recovered by such employer from the contractor, either by deduction from any amount payablesuch employer from the contractor, either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.to the contractor under any contract or as a debt payable by the contractor.

(2) A contractor from whom the amounts mentioned in sub-section 1 may be(2) A contractor from whom the amounts mentioned in sub-section 1 may be recovered in respect of any employee employed by or through him, may recoverrecovered in respect of any employee employed by or through him, may recover from such employee the employee’s contribution under any Scheme by deductionfrom such employee the employee’s contribution under any Scheme by deduction from the basic wages, dearness allowance andm retaining allowance if any payablefrom the basic wages, dearness allowance andm retaining allowance if any payable to such employee.to such employee.

(3) Notwithstanding any contract to the contrary, no contractor shall be(3) Notwithstanding any contract to the contrary, no contractor shall be entitled to deduct the employer’s contribution or the charges referred to in sub-entitled to deduct the employer’s contribution or the charges referred to in sub-section 1 from the basic wages, dearness allowance, and retaining allowance if anysection 1 from the basic wages, dearness allowance, and retaining allowance if any payable to an employee employed by or through him or otherwise to recover suchpayable to an employee employed by or through him or otherwise to recover such contribution or charges from such employee.contribution or charges from such employee.

Explanation. – In this section, the expressions “dearness allowance” andExplanation. – In this section, the expressions “dearness allowance” and “retaining allowance” shall have the same meanings as in section 6.“retaining allowance” shall have the same meanings as in section 6.

8B. Issue of certificate to the Recovery Officer8B. Issue of certificate to the Recovery Officer..

(1) Where any amount is in arrear under section8, the authorised officer(1) Where any amount is in arrear under section8, the authorised officer may issue, to the Recovery Officer, a certificate under his signature specifying themay issue, to the Recovery Officer, a certificate under his signature specifying the amount of arrears and the Recovery Officer, on receipt of such certificate, shallamount of arrears and the Recovery Officer, on receipt of such certificate, shall proceed to recover the amount specified therein from the establishment or, as theproceed to recover the amount specified therein from the establishment or, as the case may be, the employer by one or more of the modes mentioned below:-case may be, the employer by one or more of the modes mentioned below:-

(a) attachment and sale of the movable or immovable property of the(a) attachment and sale of the movable or immovable property of the establishment or, as the case may be, the employer;establishment or, as the case may be, the employer;

(b) arrest of the employer and his detention in prison;(b) arrest of the employer and his detention in prison;(c) appointing a receiver for the management of the movable or immovable(c) appointing a receiver for the management of the movable or immovable

properties of the establishment or, as the case may be, the employer:properties of the establishment or, as the case may be, the employer:

Provided that the attachment and sale of any property under this section shallProvided that the attachment and sale of any property under this section shall first be effected against the properties of the establishment and where suchfirst be effected against the properties of the establishment and where such attachment and sale is insufficient for recovery the whole of the amount of arrearsattachment and sale is insufficient for recovery the whole of the amount of arrears specified in the certificate, the Recovery Officer may take such proceedingsspecified in the certificate, the Recovery Officer may take such proceedings against the property of the employer for recovery of the whole or any part of suchagainst the property of the employer for recovery of the whole or any part of such arrears.arrears.

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(2) The authorised officer may issue a certificate under sub-section 1,(2) The authorised officer may issue a certificate under sub-section 1, notwithstanding that proceedings for recovery of the arrears by any other modenotwithstanding that proceedings for recovery of the arrears by any other mode have been taken.have been taken.

8C. Recovery officer to whom certificate is to be forwarded8C. Recovery officer to whom certificate is to be forwarded..

(1) The authorised officer may forward the certificate referred to in section(1) The authorised officer may forward the certificate referred to in section 8B to the Recovery Officer within whose jurisdiction the employer – 8B to the Recovery Officer within whose jurisdiction the employer –

(a) carries on his business or profession or within whose jurisdiction the(a) carries on his business or profession or within whose jurisdiction the principal place of his establishment is situated; orprincipal place of his establishment is situated; or

(b) resides or any movable or immovable property of the establishment or(b) resides or any movable or immovable property of the establishment or the employer is situated.the employer is situated.

(2) Where an establishment or the employer has property within the(2) Where an establishment or the employer has property within the jurisdiction of more than one Recovery Officers and the Recovery Officer tojurisdiction of more than one Recovery Officers and the Recovery Officer to whom a certificate is sent by the authorised officer - whom a certificate is sent by the authorised officer -

(a) is not able to recover the entire amount by the sale of the property(a) is not able to recover the entire amount by the sale of the property movable or immovable, within his jurisdiction; ormovable or immovable, within his jurisdiction; or

(b) is of the opinion that, for the purpose of expediting or securing the(b) is of the opinion that, for the purpose of expediting or securing the recovery of the whole or any part of the amount, it is necessary so to do, he mayrecovery of the whole or any part of the amount, it is necessary so to do, he may send the certificate or, where only a part of the amount is to be recovered, a copysend the certificate or, where only a part of the amount is to be recovered, a copy of the certificate certified in the prescribed manner and specifying the amount to beof the certificate certified in the prescribed manner and specifying the amount to be recovered to the Recovery Officer within whose jurisdiction the establishment orrecovered to the Recovery Officer within whose jurisdiction the establishment or the employer has property or the employer resides, and thereupon that Recoverythe employer has property or the employer resides, and thereupon that Recovery Officer shall also proceed to recover the amount due under this section as if theOfficer shall also proceed to recover the amount due under this section as if the certificate or the copy thereof had been the certificate sent to him by the authorisedcertificate or the copy thereof had been the certificate sent to him by the authorised officer.officer.

8D. Validity of certificate, and amendment thereof. 8D. Validity of certificate, and amendment thereof.

(1) When the authorised officer issues a certificate to a Recovery Officer(1) When the authorised officer issues a certificate to a Recovery Officer under section 8B, it shall not be open to the employer to dispute before theunder section 8B, it shall not be open to the employer to dispute before the Recovery Officer the correctness of the amount, and no objection to the certificateRecovery Officer the correctness of the amount, and no objection to the certificate on any other ground shall also be entertained by the Recovery Officer. on any other ground shall also be entertained by the Recovery Officer.

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(2) Notwithstanding the issue of a certificate to a Recovery Officer, the(2) Notwithstanding the issue of a certificate to a Recovery Officer, the authorised officer shall have power to withdraw the certificate or correct anyauthorised officer shall have power to withdraw the certificate or correct any clerical or arithmetical mistake in the certificate by sending an intimation to theclerical or arithmetical mistake in the certificate by sending an intimation to the Recovery Officer.Recovery Officer.

(3) The authorised officer shall intimate to the Recovery Officer any orders(3) The authorised officer shall intimate to the Recovery Officer any orders withdrawing or canceling a certificate or any correction made by him under sub-withdrawing or canceling a certificate or any correction made by him under sub-section 2 or any amendment made under sub-section 4 of section 8E.section 2 or any amendment made under sub-section 4 of section 8E.

8G. Application of certain provisions of Income-tax Act8G. Application of certain provisions of Income-tax Act..The provisions of the Second and Third Schedules to the Income-tax Act,The provisions of the Second and Third Schedules to the Income-tax Act,

1961 (43 of 1961) and the Income-tax Certificate Proceedings rules, 1962, as in1961 (43 of 1961) and the Income-tax Certificate Proceedings rules, 1962, as in force from time to time, shall apply with necessary modifications as if the saidforce from time to time, shall apply with necessary modifications as if the said provisions and the rules referred to the arrears of the amount mentioned in sectionprovisions and the rules referred to the arrears of the amount mentioned in section 8 of this Act instead of to the income-tax:8 of this Act instead of to the income-tax:

Provided that any reference in the said provisions and the rules to theProvided that any reference in the said provisions and the rules to the “assessee” shall be construed as a reference to an employer as defined in this Act.“assessee” shall be construed as a reference to an employer as defined in this Act.

9. Fund to be recognised under Act 11 of 19229. Fund to be recognised under Act 11 of 1922..

For the purpose of the Indian Income-tax Act, 1922 (11 of 1922), the FundFor the purpose of the Indian Income-tax Act, 1922 (11 of 1922), the Fund shall be deemed to be a recognised provident fund within the meaning of Chaptershall be deemed to be a recognised provident fund within the meaning of Chapter IXA of that Act:IXA of that Act:

Provided that nothing contained in the said Chapter shall operate to renderProvided that nothing contained in the said Chapter shall operate to render ineffective any provision of the Scheme under which the Fund is established,ineffective any provision of the Scheme under which the Fund is established, which is repugnant to any of the provisions of that Chapter or of the rules madewhich is repugnant to any of the provisions of that Chapter or of the rules made thereunder.thereunder.

10. Protection against attachment.10. Protection against attachment.

11. Priority of payment of contributions over other debts.11. Priority of payment of contributions over other debts.

12. Employer not to reduce wages, etc.12. Employer not to reduce wages, etc.

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THE EMPLOYEES’ STATE INSURANCE ACT, 1948THE EMPLOYEES’ STATE INSURANCE ACT, 1948

THE EMPLOYEES’ STATE INSURANCE ACT, 1948THE EMPLOYEES’ STATE INSURANCE ACT, 1948

[Act No. 34 of 1948][Act No. 34 of 1948]An Act to provide for certain benefits to employees in case of sickness,An Act to provide for certain benefits to employees in case of sickness,

maternity and ‘employment injury ’ and to make provision for certain other mattersmaternity and ‘employment injury ’ and to make provision for certain other matters in relation thereto.in relation thereto.

WHEREAS it is expedient to provide for certain benefits toWHEREAS it is expedient to provide for certain benefits to employees in case of sickness, maternity and employment injury and to makeemployees in case of sickness, maternity and employment injury and to make provision for certain other matters in relation thereto ;provision for certain other matters in relation thereto ;

It is hereby enacted as follows : —It is hereby enacted as follows : —

CHAPTER ICHAPTER I

PRELIMINARYPRELIMINARY

1. 1. Short title, extent, commencement and application.Short title, extent, commencement and application. — (1) This Act may — (1) This Act may be called the Employees’ State Insurance Act, 1948.be called the Employees’ State Insurance Act, 1948.

(2) It extends to [the whole of India [***]].(2) It extends to [the whole of India [***]].

(3) It shall come into force on such date or dates as the Central Government(3) It shall come into force on such date or dates as the Central Government may, by notification in the Official Gazette, appoint, and different dates may bemay, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and [for different States or forappointed for different provisions of this Act and [for different States or for different parts thereof].different parts thereof].

(4) It shall apply, in the first instance, to all factories (including factories(4) It shall apply, in the first instance, to all factories (including factories belonging to the [Government]) other than seasonal factories.belonging to the [Government]) other than seasonal factories.

[Provided that nothing contained in this sub-section shall apply to a[Provided that nothing contained in this sub-section shall apply to a factory or establishment belonging to or under the control of the Governmentfactory or establishment belonging to or under the control of the Government whose employees are otherwise in receipt of benefits substantially similar orwhose employees are otherwise in receipt of benefits substantially similar or superior to the benefits provided under this Act.].superior to the benefits provided under this Act.].

2. Definitions.2. Definitions. — In this Act, unless there is anything repugnant in the — In this Act, unless there is anything repugnant in the subject or context, —subject or context, —

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(1) (1) “ appropriate Government ”“ appropriate Government ” means, in respect of establishments under means, in respect of establishments under the control of the Central Government or [a railway administration] or a major portthe control of the Central Government or [a railway administration] or a major port or a mine or oil-field, the Central Government, and in all other cases, the [State]or a mine or oil-field, the Central Government, and in all other cases, the [State] Government ;Government ;

[(2)[(2) * * *]* * *]

(3) (3) “ confinement ”“ confinement ” means labour resulting in the issue of a living child, or means labour resulting in the issue of a living child, or labour after twenty-six weeks of pregnancy resulting in the issue of a child whetherlabour after twenty-six weeks of pregnancy resulting in the issue of a child whether alive or dead ;alive or dead ;

(4) (4) “ contribution ”“ contribution ” means the sum of money payable to the Corporation by means the sum of money payable to the Corporation by the principal employer in respect of an employee and includes any amount payablethe principal employer in respect of an employee and includes any amount payable by or on behalf of the employee in accordance with the provisions of this Act ;by or on behalf of the employee in accordance with the provisions of this Act ;

(6) (6) “ Corporation ”“ Corporation ” means the Employees’ State Insurance Cor¬poration means the Employees’ State Insurance Cor¬poration set up under this Act ;set up under this Act ;

[(6-A) [(6-A) “ dependant ”“ dependant ” means any of the following relatives of a deceased means any of the following relatives of a deceased insured person, namely : —insured person, namely : —

[(i) a widow, a legitimate or adopted son who has not attained the age [(i) a widow, a legitimate or adopted son who has not attained the age of twenty-five years, an unmarried legitimate or adopted daughter ; ]of twenty-five years, an unmarried legitimate or adopted daughter ; ]

[(ia) a widowed mother ;][(ia) a widowed mother ;](ii) if wholly dependent on the earnings of the insured person at the (ii) if wholly dependent on the earnings of the insured person at the

time of his death, a legitimate or adopted son or daughter who has time of his death, a legitimate or adopted son or daughter who has attained the age of 4[twenty-five] and who is infirm ;attained the age of 4[twenty-five] and who is infirm ;

(iii) if wholly or in part dependent on the earnings of the insured(iii) if wholly or in part dependent on the earnings of the insured person person at the time of his death, —at the time of his death, —

(a) a parent other than a widowed mother,(a) a parent other than a widowed mother,(b) a minor illegitimate son, an unmarried illegitimate (b) a minor illegitimate son, an unmarried illegitimate

daughter or a daughter legitimate or adopted or illegitimate if daughter or a daughter legitimate or adopted or illegitimate if married and a minor or if widowed and a minor,married and a minor or if widowed and a minor,

(c) a minor brother or an unmarried sister or a widowed sister (c) a minor brother or an unmarried sister or a widowed sister if a minor,if a minor,

(d) a widowed daughter-in-law,(d) a widowed daughter-in-law,(e) a minor child of a pre-deceased son,(e) a minor child of a pre-deceased son,(f) a minor child of a pre-deceased daughter where no parent (f) a minor child of a pre-deceased daughter where no parent

of the child is alive, orof the child is alive, or

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(g) a paternal grand-parent if no parent of the insured person (g) a paternal grand-parent if no parent of the insured person is alive ;]is alive ;]

(7) (7) “ duly appointed ”“ duly appointed ” means appointed in accordance with the provisions means appointed in accordance with the provisions of this Act or with the rules or regulations made there-under ;of this Act or with the rules or regulations made there-under ;

[(8) [(8) “ employment injury ”“ employment injury ” means a personal injury to an employee caused means a personal injury to an employee caused by accident or an occupational disease arising out of and in the course of hisby accident or an occupational disease arising out of and in the course of his employment, being an insurable employment, whether the accident occurs or theemployment, being an insurable employment, whether the accident occurs or the occupational disease is contracted within or outside the territorial limits of India ;]occupational disease is contracted within or outside the territorial limits of India ;]

(9) (9) “ employee ”“ employee ” means any person employed for wages in or in connection means any person employed for wages in or in connection with the work of a factory or establishment to which this Act applies and —with the work of a factory or establishment to which this Act applies and —

(i) who is directly employed by the principal employer on any work of, or(i) who is directly employed by the principal employer on any work of, or incidental or preliminary to or connected with the work of, the factory orincidental or preliminary to or connected with the work of, the factory or establishment, whether such work is done by the employee in the factory orestablishment, whether such work is done by the employee in the factory or establishment or elsewhere ; orestablishment or elsewhere ; or

(ii) who is employed by or through an immediate employer on the premises(ii) who is employed by or through an immediate employer on the premises of the factory or establishment or under the supervision of the principal employerof the factory or establishment or under the supervision of the principal employer or his agent on work which is ordinarily part of the work of the factory oror his agent on work which is ordinarily part of the work of the factory or establishment or which is preliminary to the work carried on in or incidental to theestablishment or which is preliminary to the work carried on in or incidental to the purpose of the factory or establishment ; orpurpose of the factory or establishment ; or (iii) whose services are temporarily lent or let on hire to the principal(iii) whose services are temporarily lent or let on hire to the principal employer by the person with whom the person whose services are so lent or let onemployer by the person with whom the person whose services are so lent or let on hire has entered into a contract of service ; [and includes any person employed forhire has entered into a contract of service ; [and includes any person employed for wages on any work connected with the administration of the factory orwages on any work connected with the administration of the factory or establishment or any part, department or branch thereof or with the purchase ofestablishment or any part, department or branch thereof or with the purchase of raw materials for, or the distribution or sale of the products of, the factory orraw materials for, or the distribution or sale of the products of, the factory or establishment ;establishment ;

[or any person engaged as an apprentice, not being an apprentice engaged[or any person engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of 1961), [and includes such person engagedunder the Apprentices Act, 1961 (52 of 1961), [and includes such person engaged as apprentice whose training period is extended to any length of time]as apprentice whose training period is extended to any length of time]

but does not include] — ]but does not include] — ](a) any member of 3[the Indian] naval, military or air forces ; or(a) any member of 3[the Indian] naval, military or air forces ; or

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[(b) any person so employed whose wages (excluding remuneration for[(b) any person so employed whose wages (excluding remuneration for overtime work) exceed [such wages as may be prescribed by the Centralovertime work) exceed [such wages as may be prescribed by the Central Government] :Government] :

Provided that an employee whose wages (excluding remuneration forProvided that an employee whose wages (excluding remuneration for overtime work) exceed 5[such wages as may be prescribed by the Centralovertime work) exceed 5[such wages as may be prescribed by the Central Government] at any time after (and not before) the begin¬ning of the contributionGovernment] at any time after (and not before) the begin¬ning of the contribution period, shall continue to be an employee until the end of that period ;]period, shall continue to be an employee until the end of that period ;]

(10) “ (10) “ exempted employeeexempted employee ” means an employee who is not liable under ” means an employee who is not liable under this Act to pay the employee’s contributionthis Act to pay the employee’s contribution

(11)“ family ” means all or any of the following relatives of an insured(11)“ family ” means all or any of the following relatives of an insured person, namely : —person, namely : — (i) a spouse ;(i) a spouse ; (ii) a minor legitimate or adopted child dependent upon the insured(ii) a minor legitimate or adopted child dependent upon the insured person ;person ; (iii) a child who is wholly dependent on the earnings of the insured(iii) a child who is wholly dependent on the earnings of the insured person and who is —person and who is —

(a) receiving education, till he or she attains the age of twenty-one(a) receiving education, till he or she attains the age of twenty-one years,years,

(b) an unmarried daughter ;(b) an unmarried daughter ;(iv) a child who is infirm by reason of any physical or mental(iv) a child who is infirm by reason of any physical or mental

abnormality or abnormality or injury and is wholly dependent on the earnings of the insuredinjury and is wholly dependent on the earnings of the insured person, so long person, so long as the infirmity continues ;as the infirmity continues ;

[(v) dependant parents, whose income from all sources does not[(v) dependant parents, whose income from all sources does not exceed exceed such income as may be prescribed by the Central Government ;such income as may be prescribed by the Central Government ;

(vi) in case the insured person is unmarried and his or her parents are(vi) in case the insured person is unmarried and his or her parents are not not alive, a minor brother or sister wholly dependant upon the earnings of the alive, a minor brother or sister wholly dependant upon the earnings of the

insured person ;]]insured person ;]]

[(12)[(12) “ factory ”“ factory ” means any premises including the precincts thereof means any premises including the precincts thereof whereon ten or more persons are employed or were employed on any day of thewhereon ten or more persons are employed or were employed on any day of the preceding twelve months, and in any part of which a manufacturing process ispreceding twelve months, and in any part of which a manufacturing process is being carried on or is ordinarily so carried on, but does not include a mine subjectbeing carried on or is ordinarily so carried on, but does not include a mine subject to the operation of the Mines Act, 1952 (35 of 1952), or a railway running shed ;]to the operation of the Mines Act, 1952 (35 of 1952), or a railway running shed ;]

(13) (13) “ immediate employer ”“ immediate employer ” in relation to employees employed by or in relation to employees employed by or through him, means a person who has undertaken the execution on the premises ofthrough him, means a person who has undertaken the execution on the premises of

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a factory or an establishment to which this Act applies or under the supervision ofa factory or an establishment to which this Act applies or under the supervision of the principal employer or his agent, of the whole or any part of any work which isthe principal employer or his agent, of the whole or any part of any work which is ordinarily part of the work of the factory or establishment of the principalordinarily part of the work of the factory or establishment of the principal employer or is preliminary to the work carried on in, or incidental to the purposeemployer or is preliminary to the work carried on in, or incidental to the purpose of, any such factory or establishment and includes a person by whom the servicesof, any such factory or establishment and includes a person by whom the services of an employee who has entered into a contract of service with him are temporarilyof an employee who has entered into a contract of service with him are temporarily lent or let on hire to the principal employer [lent or let on hire to the principal employer [and includes a contractorand includes a contractor].].

[(13-A) [(13-A) “ insurable employment ”“ insurable employment ” means an employment in a factory or means an employment in a factory or establishment to which this Act applies ;]establishment to which this Act applies ;]

(14) (14) “ insured person ”“ insured person ” means a person who is or was an employee in means a person who is or was an employee in respect of whom contributions are or were payable under this Act and who is, byrespect of whom contributions are or were payable under this Act and who is, by reason thereof, entitled to any of the benefits provided by this Act ;reason thereof, entitled to any of the benefits provided by this Act ;

[(14A) [(14A) “ managing agent ”“ managing agent ” means any person appointed or acting as the means any person appointed or acting as the representative of another person for the purpose of carrying on such other person’srepresentative of another person for the purpose of carrying on such other person’s trade or business, but does not include an individual manager subordinate to antrade or business, but does not include an individual manager subordinate to an employer ;employer ;

[(14AA) [(14AA) “ manufacturing process ”“ manufacturing process ” shall have the meaning assigned to it shall have the meaning assigned to it in the Factories Act, 1948 (63 of 1948) ;]in the Factories Act, 1948 (63 of 1948) ;]

(14-B) (14-B) “ mis-carriage ”“ mis-carriage ” means expulsion of the contents of a pregnant means expulsion of the contents of a pregnant uterus at any period prior to or during the twenty-sixth week of pregnancy but doesuterus at any period prior to or during the twenty-sixth week of pregnancy but does not include any miscarriage, the causing of which is punishable under the Indiannot include any miscarriage, the causing of which is punishable under the Indian Penal Code (45 of 1860) ;]Penal Code (45 of 1860) ;]

(15) (15) “ occupier ”“ occupier ” of the factory shall have the meaning assigned to it in the of the factory shall have the meaning assigned to it in the Factories Act, 5[1948 (63 of 1948)] ;Factories Act, 5[1948 (63 of 1948)] ;

[(15A) [(15A) “ permanent partial disablement ”“ permanent partial disablement ” means such disablement of a means such disablement of a permanent nature, as reduces the earning capacity of an employee in everypermanent nature, as reduces the earning capacity of an employee in every employment which he was capable of undertaking at the time of the accidentemployment which he was capable of undertaking at the time of the accident resulting in the disablement :resulting in the disablement :

Provided that every injury specified in Part II of the Second Schedule shallProvided that every injury specified in Part II of the Second Schedule shall be deemed to result in permanent partial disablement ;be deemed to result in permanent partial disablement ;

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(15B)(15B) “ permanent total disablement ”“ permanent total disablement ” means such disablement of a means such disablement of a permanent nature as incapacitates an employee for all work which he was capablepermanent nature as incapacitates an employee for all work which he was capable of performing at the time of the accident resulting in such disablement :of performing at the time of the accident resulting in such disablement :

Provided that permanent total disablement shall be deemed to result fromProvided that permanent total disablement shall be deemed to result from every injury specified in Part I of the Second Schedule or from any combination ofevery injury specified in Part I of the Second Schedule or from any combination of injuries specified in Part II thereof where the aggregate percentage of the loss ofinjuries specified in Part II thereof where the aggregate percentage of the loss of earning capacity, as specified in the said Part II against those injuries, amounts toearning capacity, as specified in the said Part II against those injuries, amounts to one hundred percent. or more ;]one hundred percent. or more ;]

[(15C) [(15C) “ power ”“ power ” shall have the meaning assigned to it in the Factories Act, shall have the meaning assigned to it in the Factories Act, 1948 (63 of 1948) ;]1948 (63 of 1948) ;]

(16) (16) “ prescribed ”“ prescribed ” means prescribed by rules made under this Act ; means prescribed by rules made under this Act ;

(17) (17) “ principal employer ”“ principal employer ” means — means —

(i) in a factory, the owner or occupier of the factory and includes the(i) in a factory, the owner or occupier of the factory and includes the managing agent of such owner or occupier, the legal representative of a deceasedmanaging agent of such owner or occupier, the legal representative of a deceased owner or occupier, and where a person has been named as the manager of theowner or occupier, and where a person has been named as the manager of the factory under 3[the Factories Act, 1948] (63 of 1948), the person so named ;factory under 3[the Factories Act, 1948] (63 of 1948), the person so named ;

(ii) in any establishment under the control of any department of any(ii) in any establishment under the control of any department of any Government in India, the authority appointed by such Government in this behalf orGovernment in India, the authority appointed by such Government in this behalf or where no authority is so appointed, the head of the department ;where no authority is so appointed, the head of the department ;

(iii) in any other establishment, any person responsible for the supervision(iii) in any other establishment, any person responsible for the supervision and control of the establishment ;and control of the establishment ;

(18) (18) “ regulation ”“ regulation ” means a regulation made by the Corporation ; means a regulation made by the Corporation ;

(19) (19) “ Schedule ”“ Schedule ” means a schedule to this Act ; means a schedule to this Act ;

[(19A) [(19A) “ seasonal factory ”“ seasonal factory ”, means a factory which is exclusively engaged, means a factory which is exclusively engaged in one or more of the following manufacturing processes, namely, cotton ginning,in one or more of the following manufacturing processes, namely, cotton ginning, cotton or jute pressing, decortication of ground-nuts, the manufacture of coffee,cotton or jute pressing, decortication of ground-nuts, the manufacture of coffee, indigo, lac, rubber, sugar (including gur) or tea or any manufacturing processindigo, lac, rubber, sugar (including gur) or tea or any manufacturing process which is incidental to or connected with any of the aforesaid processes andwhich is incidental to or connected with any of the aforesaid processes and includes a factory which is engaged for a period not exceeding seven months in aincludes a factory which is engaged for a period not exceeding seven months in a year —year —

(a) in any process of blending, packing or repacking of tea or coffee ; or(a) in any process of blending, packing or repacking of tea or coffee ; or

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(b) in such other manufacturing process as the Central Government may, by(b) in such other manufacturing process as the Central Government may, by notification in the Official Gazette, specify ;]notification in the Official Gazette, specify ;]

(20) (20) “ sickness ”“ sickness ” means a condition which requires medical treatment and means a condition which requires medical treatment and attendance and necessitates abstention from work on medical grounds ;attendance and necessitates abstention from work on medical grounds ;

(21) (21) “ temporary disablement ”“ temporary disablement ” means a condition resulting from an means a condition resulting from an employment injury which requires medical treatment and renders an employee, asemployment injury which requires medical treatment and renders an employee, as a result of such injury temporarily incapable of 2[doing the work which he wasa result of such injury temporarily incapable of 2[doing the work which he was doing prior to or at the time of the injury] ;doing prior to or at the time of the injury] ;

(22) (22) “ wages ”“ wages ” means all remuneration paid or payable in cash to an means all remuneration paid or payable in cash to an employee, if the terms of the contract of employment, express or implied, wereemployee, if the terms of the contract of employment, express or implied, were fulfilled and includes [any payment to an employee in respect of any period offulfilled and includes [any payment to an employee in respect of any period of authorised leave, lock-out, strike which is not illegal or layoff and] other additionalauthorised leave, lock-out, strike which is not illegal or layoff and] other additional remuneration, if any, 2[paid at intervals not exceeding two months], butremuneration, if any, 2[paid at intervals not exceeding two months], but

does not include —does not include —(a) any contribution paid by the employer to any pension fund or provident(a) any contribution paid by the employer to any pension fund or provident

fund, or under this Act ;fund, or under this Act ;(b) any travelling allowance or the value of any travelling concession ;(b) any travelling allowance or the value of any travelling concession ;(c) any sum paid to the person employed to defray special expenses entailed(c) any sum paid to the person employed to defray special expenses entailed

on him by the nature of his employment ; oron him by the nature of his employment ; or(d) any gratuity payable on discharge ;(d) any gratuity payable on discharge ;

[(23) [(23) “ wage period ”“ wage period ” in relation to an employee means the period in respect in relation to an employee means the period in respect of which wages are ordinarily payable to him whether in terms of the contract ofof which wages are ordinarily payable to him whether in terms of the contract of employment, express or implied or otherwise;]employment, express or implied or otherwise;]

[(24)[(24) all other words and expressions used but not defined in this Act andall other words and expressions used but not defined in this Act and defined in the Industrial Disputes Act, 1947 (14 of 1947), shall have the meaningsdefined in the Industrial Disputes Act, 1947 (14 of 1947), shall have the meanings respectively assigned to them in that Act.]respectively assigned to them in that Act.]

2-A. Registration of factories and establishments.2-A. Registration of factories and establishments. — Every factory or — Every factory or establishment to which this Act applies shall be registered within such time and inestablishment to which this Act applies shall be registered within such time and in such manner as may be specified in the regulations made in this behalf.]such manner as may be specified in the regulations made in this behalf.]

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CHAPTER IICHAPTER II

CORPORATION, STANDING COMMITTEE AND MEDICAL BENEFITCORPORATION, STANDING COMMITTEE AND MEDICAL BENEFIT COUNCILCOUNCIL

3. Establishment of Employees’ State Insurance Corporation.3. Establishment of Employees’ State Insurance Corporation. — (1) — (1) With effect from such date as the Central Government may, by notification in theWith effect from such date as the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established for theOfficial Gazette, appoint in this behalf, there shall be established for the administration of the scheme of Employees’ State Insurance in accordance with theadministration of the scheme of Employees’ State Insurance in accordance with the provisions of this Act a Corporation to be known as the Employees’ Stateprovisions of this Act a Corporation to be known as the Employees’ State Insurance Corporation.Insurance Corporation.•• The Corporation shall be a body corporate by the name of Employees’ StateThe Corporation shall be a body corporate by the name of Employees’ State

Insurance Corporation having perpetual succession and a common seal andInsurance Corporation having perpetual succession and a common seal and shall by the said name sue and be sued.shall by the said name sue and be sued.

4. Constitution of Corporation.4. Constitution of Corporation. — The Corporation shall consist of the — The Corporation shall consist of the following members, namely : —following members, namely : —

[(a) a Chairman to be [appointed] by the Central Government ;[(a) a Chairman to be [appointed] by the Central Government ;(b) a Vice-Chairman to be [appointed] by the Central Government ;](b) a Vice-Chairman to be [appointed] by the Central Government ;](c) not more than five persons to be [appointed] by the Central Government;(c) not more than five persons to be [appointed] by the Central Government;(d) one person each representing each of the [States] in which this Act is in(d) one person each representing each of the [States] in which this Act is in

force] to be 3[appointed] by the State Government concerned ;force] to be 3[appointed] by the State Government concerned ;

(e) one person to be [appointed] by the Central Government to represent the(e) one person to be [appointed] by the Central Government to represent the [Union territories] ;[Union territories] ;

(f) [ten] persons representing employers to be [appointed] by the Central(f) [ten] persons representing employers to be [appointed] by the Central Government in consultation with such organisations of employers as may beGovernment in consultation with such organisations of employers as may be recognised for the purpose by the Central Government ;recognised for the purpose by the Central Government ;

(g) [ten] persons representing employees to be [appointed] by the Central(g) [ten] persons representing employees to be [appointed] by the Central Government in consultation with such organisations of employees as may beGovernment in consultation with such organisations of employees as may be recognised for the purpose by the Central Government ;recognised for the purpose by the Central Government ;

(h) two persons representing the medical profession to be [appointed] by the(h) two persons representing the medical profession to be [appointed] by the Central Government in consultation with such organisations of medicalCentral Government in consultation with such organisations of medical practitioners as may be recognised for the purpose by the Central Govern ment ;practitioners as may be recognised for the purpose by the Central Govern ment ;

[(i) three members of Parliament of whom two shall be members of the[(i) three members of Parliament of whom two shall be members of the House of the People (Lok Sabha) and one shall be a member of the Council ofHouse of the People (Lok Sabha) and one shall be a member of the Council of States (Rajya Sabha) elected respectively by the members of the House of theStates (Rajya Sabha) elected respectively by the members of the House of the People and the members of the Council of States ; andPeople and the members of the Council of States ; and (j) the Director-General of the Corporation, ex-officio.](j) the Director-General of the Corporation, ex-officio.]

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5. Term of office of the members of the Corporation.5. Term of office of the members of the Corporation. — (1) Save as — (1) Save as otherwise expressly provided in this Act, the term of office of members of theotherwise expressly provided in this Act, the term of office of members of the Corporation, other than 1[the members referred to in clauses (a), (b), (c), (d) andCorporation, other than 1[the members referred to in clauses (a), (b), (c), (d) and (e) of section 4 and the ex-officio member,] shall be four years commencing from(e) of section 4 and the ex-officio member,] shall be four years commencing from the date on which their 2[appointment] or election is notified.the date on which their 2[appointment] or election is notified.

Provided that a member of the Corporation shall notwithstanding the expiryProvided that a member of the Corporation shall notwithstanding the expiry of the said period of four years, continue to hold office until the [appointment] orof the said period of four years, continue to hold office until the [appointment] or election of his successor is notified.election of his successor is notified.

(2) The member of the Corporation referred to in clauses [(a), (b), (c), (d)(2) The member of the Corporation referred to in clauses [(a), (b), (c), (d) and (e)] of section 4 shall hold office during the pleasure of the Governmentand (e)] of section 4 shall hold office during the pleasure of the Government [appointing] them.[appointing] them.

6. Eligibility for [re-appointment] or re-election.6. Eligibility for [re-appointment] or re-election. — An outgoing member — An outgoing member of the Corporation, the Standing Committee, or the Medical Benefit Council shallof the Corporation, the Standing Committee, or the Medical Benefit Council shall be eligible for [re-appointment] or re-election as the case may be.be eligible for [re-appointment] or re-election as the case may be.

[7. Authentication of orders, decisions, etc.[7. Authentication of orders, decisions, etc. — All orders and decisions of — All orders and decisions of the Corporation shall be authenticated by the signature of the Director General ofthe Corporation shall be authenticated by the signature of the Director General of the Corporation and all other instruments issued by the Corporation shall bethe Corporation and all other instruments issued by the Corporation shall be authenticated by the signature of the Director-General or such other officer of theauthenticated by the signature of the Director-General or such other officer of the Corporation as may be authorised by him.]Corporation as may be authorised by him.]

8. Constitution of Standing Committee.8. Constitution of Standing Committee. — A Standing Committee of the — A Standing Committee of the Corporation shall be constituted from among its members, consisting of —Corporation shall be constituted from among its members, consisting of —

(a) a Chairman [appointed] by the Central Government ;(a) a Chairman [appointed] by the Central Government ;(b) three members of the Corporation, [appointed] by the Central(b) three members of the Corporation, [appointed] by the Central

Government] ;Government] ; [(bb) three members of the Corporation representing such three State[(bb) three members of the Corporation representing such three State Governments thereon as the Central Government may, by notification in theGovernments thereon as the Central Government may, by notification in the Official Gazette, specify from time to time ;]Official Gazette, specify from time to time ;] (c) [eight] members elected by the Corporation as follows : —(c) [eight] members elected by the Corporation as follows : —

(i) [* * *](i) [* * *] (ii) [three] members from among the members of the Corporation(ii) [three] members from among the members of the Corporation representing employers ;representing employers ; (iii) [three] members from among the members of the Corporation(iii) [three] members from among the members of the Corporation representing employees ;representing employees ;

(iv) one member from among the members of the Corporation representing(iv) one member from among the members of the Corporation representing the medical profession ; andthe medical profession ; and

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(v) one member from among the members of the Corporation elected by(v) one member from among the members of the Corporation elected by [Parliament] ;[Parliament] ;

[(d) the Director-General of the Corporation, ex-officio.][(d) the Director-General of the Corporation, ex-officio.]

9. Term of office of members of Standing Committee.9. Term of office of members of Standing Committee. — (1) Save as — (1) Save as otherwise expressly provided in this Act, the term of office of a member of theotherwise expressly provided in this Act, the term of office of a member of the Standing Committee, other than a member referred to in clause (a) or [clause (b)Standing Committee, other than a member referred to in clause (a) or [clause (b) or clause (bb)] of section 8, shall be two years from the date on which his electionor clause (bb)] of section 8, shall be two years from the date on which his election is notified :is notified :

Provided that a member of the Standing Committee shall,Provided that a member of the Standing Committee shall, notwithstanding the expiry of the said period of two years, continue to hold officenotwithstanding the expiry of the said period of two years, continue to hold office until the election of his successor is notified :until the election of his successor is notified :

Provided further that a member of the Standing Committee shall ceaseProvided further that a member of the Standing Committee shall cease to hold office when he ceases to be a member of the Corporation.to hold office when he ceases to be a member of the Corporation.

(2) A member of the Standing Committee referred to in clause (a) or [clause(2) A member of the Standing Committee referred to in clause (a) or [clause (b) or clause (bb)] of section 8 shall hold office during the pleasure of the Central(b) or clause (bb)] of section 8 shall hold office during the pleasure of the Central Government.Government.

10. Medical Benefit Council.10. Medical Benefit Council. — (1) The Central Government shall — (1) The Central Government shall constitute a Medical Benefit Council consisting of —constitute a Medical Benefit Council consisting of — [(a) the Director General, the Employees’ State Insurance Corporation, ex[(a) the Director General, the Employees’ State Insurance Corporation, ex officio as Chairman ;officio as Chairman ;

(b) the Director General, Health Services, ex-officio as Co-Chairman ; ](b) the Director General, Health Services, ex-officio as Co-Chairman ; ]

(c) the Medical Commissioner of the Corporation, ex-officio ;(c) the Medical Commissioner of the Corporation, ex-officio ;(d) one member each representing each of the [States (other than Union(d) one member each representing each of the [States (other than Union

territories)] in which this Act is in force to be [appointed] by the State Governmentterritories)] in which this Act is in force to be [appointed] by the State Government concerned ;concerned ;

(e) three members representing employers to be [appointed] by the Central(e) three members representing employers to be [appointed] by the Central Government in consultation with such organisations of employers as may beGovernment in consultation with such organisations of employers as may be recognised for the purpose by the Central Government ;recognised for the purpose by the Central Government ;

(f) three members representing employees to be [appointed] by the Central(f) three members representing employees to be [appointed] by the Central Government in consul-tation with such organisations of employees as may beGovernment in consul-tation with such organisations of employees as may be recognised for the purpose by the Central Govern-ment ; andrecognised for the purpose by the Central Govern-ment ; and

(g) three members, of whom not less than one shall be a woman,(g) three members, of whom not less than one shall be a woman, representing the medical profession, to be [appointed] by the Central Governmentrepresenting the medical profession, to be [appointed] by the Central Government in consul-tation with such organisations of medical practitioners as may bein consul-tation with such organisations of medical practitioners as may be recognised for the purpose by the Central Government.recognised for the purpose by the Central Government.

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(2) Save as otherwise expressly provided in this Act, the term of office of a(2) Save as otherwise expressly provided in this Act, the term of office of a member of the Medical Benefit Council, other than a member referred to in any ofmember of the Medical Benefit Council, other than a member referred to in any of the clauses (a) to (d) of sub-section (1), shall be four years from the date on whichthe clauses (a) to (d) of sub-section (1), shall be four years from the date on which his 3[appointment] is notified:his 3[appointment] is notified:

[Provided that a member of the Medical Benefit Council shall,[Provided that a member of the Medical Benefit Council shall, notwithstanding the expiry of the said period of four years continue to hold officenotwithstanding the expiry of the said period of four years continue to hold office until the [appointment] of his successor is notified.]until the [appointment] of his successor is notified.]

(3) A member of the Medical Benefit Council referred to in clauses (b) and(3) A member of the Medical Benefit Council referred to in clauses (b) and (d) of sub-section (1) shall hold office during the pleasure of the Government(d) of sub-section (1) shall hold office during the pleasure of the Government [appointing] him.[appointing] him.

11. Resignation of membership.11. Resignation of membership. — A member of the Corporation, the — A member of the Corporation, the Standing Committee or the Medical Benefit Council may resign his office byStanding Committee or the Medical Benefit Council may resign his office by notice in writing to the Central Government and his seat shall fall vacant on thenotice in writing to the Central Government and his seat shall fall vacant on the acceptance of the resignation by that Government.acceptance of the resignation by that Government.

12. Cessation of membership.12. Cessation of membership. — 2[(1)] A member of the Corporation, — 2[(1)] A member of the Corporation, the Standing Committee or the Medical Benefit Council shall cease to be a memberthe Standing Committee or the Medical Benefit Council shall cease to be a member of that body if he fails to attend three consecutive meetings thereof of that body if he fails to attend three consecutive meetings thereof

Provided that the Corporation, the Standing Committee or the MedicalProvided that the Corporation, the Standing Committee or the Medical Benefit Council, as the case may be, may, subject to rules made by the CentralBenefit Council, as the case may be, may, subject to rules made by the Central Government in this behalf, restore him to membership.Government in this behalf, restore him to membership.

[(2) Where in the opinion of the Central Government any person [(2) Where in the opinion of the Central Government any person [appointed] or elected to represent employers, employees or the medical profession[appointed] or elected to represent employers, employees or the medical profession on (sic.) the Corporation, the Standing Committee or the Medical Benefit Council,on (sic.) the Corporation, the Standing Committee or the Medical Benefit Council, as the case may be, has ceased to represent such employers, employees or theas the case may be, has ceased to represent such employers, employees or the medical profession, the Central Government may, by notification in the Officialmedical profession, the Central Government may, by notification in the Official Gazette, declare that with effect from such date as may be specified therein suchGazette, declare that with effect from such date as may be specified therein such person shall cease to be a member of the Corporation, the Standing Committee orperson shall cease to be a member of the Corporation, the Standing Committee or the Medical Benefit Council, as the case may be.]the Medical Benefit Council, as the case may be.]

[(3) A person referred to in clause (i) of section 4 shall cease to be a member[(3) A person referred to in clause (i) of section 4 shall cease to be a member of the Corporation when he ceases to be a Member of Parliament.]of the Corporation when he ceases to be a Member of Parliament.]

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13. Disqualification.13. Disqualification. — A person shall be disqualified for being chosen as — A person shall be disqualified for being chosen as or for being a member of the Corporation, the Standing Committee or the Medicalor for being a member of the Corporation, the Standing Committee or the Medical Benefit Council —Benefit Council —

(a) if he is declared to be of unsound mind by a competent Court ; or(a) if he is declared to be of unsound mind by a competent Court ; or(b) if he is an undischarged insolvent ; or(b) if he is an undischarged insolvent ; or(c) if he has directly or indirectly by himself or by his partner any interest in(c) if he has directly or indirectly by himself or by his partner any interest in

subsisting contract with, or any work being done for, the Corporation except as asubsisting contract with, or any work being done for, the Corporation except as a medical practitioner or as a share-holder (not being a Director) of a com-pany ; or medical practitioner or as a share-holder (not being a Director) of a com-pany ; or

(d) if before or after the commencement of this Act, he has been convicted(d) if before or after the commencement of this Act, he has been convicted of an offence involving moral turpitude.of an offence involving moral turpitude.

14. Filling of vacancies.14. Filling of vacancies. — (1) Vacancies in the office of [appointed] or — (1) Vacancies in the office of [appointed] or elected members of the Corporation, the Standing Committee Medical Benefitelected members of the Corporation, the Standing Committee Medical Benefit Council shall be filled by [appointment] or election, as the case may be.Council shall be filled by [appointment] or election, as the case may be.

(2) A member of the Corporation, the Standing Committee or the Medical(2) A member of the Corporation, the Standing Committee or the Medical Benefit Council [appointed] or elected to fill a casual vacancy shall hold officeBenefit Council [appointed] or elected to fill a casual vacancy shall hold office only so long as the member in whose place he is [appointed] or elected would haveonly so long as the member in whose place he is [appointed] or elected would have been entitled to hold office if the vacancy had not occurred.been entitled to hold office if the vacancy had not occurred.

15. Fees and allowances.15. Fees and allowances. — Members of the Corporation, the Standing — Members of the Corporation, the Standing Committee and the Medical Benefit Council shall receive such fees and allowancesCommittee and the Medical Benefit Council shall receive such fees and allowances as may from time to time be prescribed by the Central Government.as may from time to time be prescribed by the Central Government.

16. Principal officers.16. Principal officers. — [(1) The Central Government may, in — [(1) The Central Government may, in consultation with the Corporation, appoint a Director-General and a Financialconsultation with the Corporation, appoint a Director-General and a Financial Commissioner.]Commissioner.]

(2) The Director-General shall be the Chief Executive Officer of the(2) The Director-General shall be the Chief Executive Officer of the Corporation.Corporation.

(3) [The Director-General and the Financial Commissioner] shall be whole(3) [The Director-General and the Financial Commissioner] shall be whole time officers of the Corporation and shall not undertake any work unconnectedtime officers of the Corporation and shall not undertake any work unconnected with their office without the sanction of the Central Government [and of thewith their office without the sanction of the Central Government [and of the Corporation].Corporation].

(4) [The Director-General or the Financial Commissioner] shall hold office(4) [The Director-General or the Financial Commissioner] shall hold office for such period, not exceeding five years, as may be specified in the orderfor such period, not exceeding five years, as may be specified in the order appointing him. An outgoing 4[Director-General or Financial Commissioner] shallappointing him. An outgoing 4[Director-General or Financial Commissioner] shall be eligible for re-appointment if he is otherwise qualified.be eligible for re-appointment if he is otherwise qualified.

(5) [The Director-General or the Financial Commissioner] shall receive such(5) [The Director-General or the Financial Commissioner] shall receive such salary and allowances as may be prescribed by the Central Government.salary and allowances as may be prescribed by the Central Government.

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(6) A person shall be disqualified from being appointed as or for being [the(6) A person shall be disqualified from being appointed as or for being [the Director-General or the Financial Commissioner] if he is subject to any of theDirector-General or the Financial Commissioner] if he is subject to any of the disqualifications specified in section 13.disqualifications specified in section 13.

(7) The Central Government may at any time remove 6[the Director-General(7) The Central Government may at any time remove 6[the Director-General or the Financial Commissioner] from office and shall do so if such removal isor the Financial Commissioner] from office and shall do so if such removal is recommended by a resolution of the Corporation passed at a special meeting calledrecommended by a resolution of the Corporation passed at a special meeting called for the purpose and supported by the votes of not less than two-third is of the totalfor the purpose and supported by the votes of not less than two-third is of the total strength of the Corporation.strength of the Corporation.

18. Powers of the Standing Committee.18. Powers of the Standing Committee. — (1) Subject to the general — (1) Subject to the general superintendence and control of the Corporation, the Standing Committee shallsuperintendence and control of the Corporation, the Standing Committee shall administer the affairs of the Corporation and may exercise any of the powers andadminister the affairs of the Corporation and may exercise any of the powers and perform any of the functions of the Corporation.perform any of the functions of the Corporation.

(2) The Standing Committee shall submit for the consideration and decision(2) The Standing Committee shall submit for the consideration and decision of the Corporation all such cases and matters as may be specified in the regulationsof the Corporation all such cases and matters as may be specified in the regulations made in this behalf.made in this behalf.

(3) The Standing Committee may, in its discretion, submit any other case or(3) The Standing Committee may, in its discretion, submit any other case or matter for the decision of the Corporation.matter for the decision of the Corporation.

19. Corporation’s power to promote measures for health, etc., of19. Corporation’s power to promote measures for health, etc., of insured persons.insured persons. — The Corporation may, in addition to the scheme of benefits — The Corporation may, in addition to the scheme of benefits specified in this Act, promote measures for the improvement of the health andspecified in this Act, promote measures for the improvement of the health and welfare of insured persons and for the rehabilitation and re employment of insuredwelfare of insured persons and for the rehabilitation and re employment of insured persons who have been disabled or injured and may incur in respect of suchpersons who have been disabled or injured and may incur in respect of such measures expenditure from the funds of the Corporation within such limits as maymeasures expenditure from the funds of the Corporation within such limits as may be prescribed by the Central Government.be prescribed by the Central Government.

20. Meetings of Corporation, Standing Committee and Medical Benefit20. Meetings of Corporation, Standing Committee and Medical Benefit Council.Council. — Subject to any rules made under this Act, the Corporation, the — Subject to any rules made under this Act, the Corporation, the Standing Committee and the Medical Benefit Coun¬cil shall meet at such timesStanding Committee and the Medical Benefit Coun¬cil shall meet at such times and places and shall observe such rules of procedure in regard to transaction ofand places and shall observe such rules of procedure in regard to transaction of business at their meetings as may be specified in the regulations made in thisbusiness at their meetings as may be specified in the regulations made in this behalf.behalf.

21. Supersession of the Corporation and Standing Committee.21. Supersession of the Corporation and Standing Committee. — (1) If — (1) If in the opinion of the Central Government, the Corporation or the Standingin the opinion of the Central Government, the Corporation or the Standing Committee persistently makes default in performing the duties imposed on it by orCommittee persistently makes default in performing the duties imposed on it by or under this Act or abuses its powers, that Government may, by notification in theunder this Act or abuses its powers, that Government may, by notification in the official Gazette, supersede the Corporation, or in the case of the Standingofficial Gazette, supersede the Corporation, or in the case of the Standing

31

Committee, supersede in consultation with the Corporation, the StandingCommittee, supersede in consultation with the Corporation, the Standing Committee :Committee :

Provided that therefore issuing a notification under this sub-section theProvided that therefore issuing a notification under this sub-section the Central Government shall give a reasonable opportunity to the Corporation or theCentral Government shall give a reasonable opportunity to the Corporation or the Standing Committee, as the case may be, to show cause why it should not beStanding Committee, as the case may be, to show cause why it should not be superseded and shall consider the explanations and objections, if any, of thesuperseded and shall consider the explanations and objections, if any, of the Corporation or the Standing Committee, as the case may be.Corporation or the Standing Committee, as the case may be.

(2) Upon the publication of a notification under sub-section (1) superseding(2) Upon the publication of a notification under sub-section (1) superseding the Corporation or the Standing Committee, all the members of the Corporation orthe Corporation or the Standing Committee, all the members of the Corporation or the Standing Committee, as the case may be, shall, as from the date of suchthe Standing Committee, as the case may be, shall, as from the date of such publication, be deemed to have vacated their offices.publication, be deemed to have vacated their offices.

(3) When the Standing Committee has been superseded, a new Standing(3) When the Standing Committee has been superseded, a new Standing Committee shall be immediately constituted in accordance with section 8.Committee shall be immediately constituted in accordance with section 8.

(4) When the Corporation has been superseded, the Central Government(4) When the Corporation has been superseded, the Central Government may —may —

(a) immediately [appoint] or cause to be [appointed] or elected new(a) immediately [appoint] or cause to be [appointed] or elected new members to the Corporation in accordance with section 4 and may constitute a newmembers to the Corporation in accordance with section 4 and may constitute a new Standing Committee under section 8 ;Standing Committee under section 8 ;

(b) in its discretion, appoint such agency, for such period as it may think fit,(b) in its discretion, appoint such agency, for such period as it may think fit, to exercise the powers and perform the functions of the Corporation and suchto exercise the powers and perform the functions of the Corporation and such agency shall be competent to exercise all the powers and perform all the functionsagency shall be competent to exercise all the powers and perform all the functions of the Corporation.of the Corporation.

(5) The Central Government shall cause it full report of any action taken(5) The Central Government shall cause it full report of any action taken under this section and the circumstances leading to such action to be laid beforeunder this section and the circumstances leading to such action to be laid before [Parliament] at the earliest opportunity and in any case [Parliament] at the earliest opportunity and in any case not later than threenot later than three months from the date of the notification superseding the Corporation or themonths from the date of the notification superseding the Corporation or the Standing CommitteeStanding Committee, as the case may be., as the case may be.

22. Duties of Medical Benefit Council.22. Duties of Medical Benefit Council. — The Medical Benefit Council — The Medical Benefit Council shall —shall —

(a) advise 4[the Corporation and the Standing Committee] on matters(a) advise 4[the Corporation and the Standing Committee] on matters relating to the administration of medical benefit, the certification for purposes ofrelating to the administration of medical benefit, the certification for purposes of the grant of benefits and other connected matters ;the grant of benefits and other connected matters ;

(b) have such powers and duties of investigation as may be prescribed in(b) have such powers and duties of investigation as may be prescribed in relation to complaints against medical practitioners in connection with medicalrelation to complaints against medical practitioners in connection with medical treatment and attendance ; andtreatment and attendance ; and

32

(c) perform such other duties in connection with medical treatment and(c) perform such other duties in connection with medical treatment and attendance as may be specified in the regulations.attendance as may be specified in the regulations.

23. Duties of [Director-General and the Financial Commissioner].23. Duties of [Director-General and the Financial Commissioner]. — — The [Director-General and the Financial Commissioner] shall exercise such powersThe [Director-General and the Financial Commissioner] shall exercise such powers and discharge such duties as may be prescribed. They shall also perform such otherand discharge such duties as may be prescribed. They shall also perform such other functions as may be specified in the regulations.functions as may be specified in the regulations.

24. Acts of Corporation, etc., not invalid by reason of defect in24. Acts of Corporation, etc., not invalid by reason of defect in constitution, etc.constitution, etc. — No act of the Corporation, the Standing Committee or the — No act of the Corporation, the Standing Committee or the Medical Benefit Council shall be deemed to be invalid by reason of any defect inMedical Benefit Council shall be deemed to be invalid by reason of any defect in the constitution of the Corporation, the Standing Committee or the Medical Benefitthe constitution of the Corporation, the Standing Committee or the Medical Benefit Council, or on the ground that any member thereof was not entitled to hold orCouncil, or on the ground that any member thereof was not entitled to hold or continue in office by reason of any disqualification or of any irregularity in hiscontinue in office by reason of any disqualification or of any irregularity in his [appointment] or election, or by reason of such act having been done during the[appointment] or election, or by reason of such act having been done during the period of any vacancy in the office of any member of the Corporation, the Standingperiod of any vacancy in the office of any member of the Corporation, the Standing Committee or the Medical Benefit Council.Committee or the Medical Benefit Council.

25. Regional Board, Local Committees, Regional and Local Medical25. Regional Board, Local Committees, Regional and Local Medical Benefit Councils.Benefit Councils. — The Corporation may appoint Regional Boards, Local — The Corporation may appoint Regional Boards, Local Committees and Regional and Local Medical Benefit Councils in such areas and inCommittees and Regional and Local Medical Benefit Councils in such areas and in such manner, and delegate to them such powers and functions, as may be providedsuch manner, and delegate to them such powers and functions, as may be provided by the regulations.by the regulations.

CHAPTER IIICHAPTER III

FINANCE AND AUDITFINANCE AND AUDIT

26. Employees’ State Insurance Fund.26. Employees’ State Insurance Fund. — (1) All contributions paid under — (1) All contributions paid under this Act and all other moneys received on behalf of the Corporation shall be paidthis Act and all other moneys received on behalf of the Corporation shall be paid into a fund called the Employees’ State Insurance Fund which shall be held andinto a fund called the Employees’ State Insurance Fund which shall be held and administered by the Corporation for the purposes of this Act.administered by the Corporation for the purposes of this Act.

(2) The Corporation may accept grants, donations and gifts from the Central(2) The Corporation may accept grants, donations and gifts from the Central or any [State] Government, [* * *] Local authority, or any individual or bodyor any [State] Government, [* * *] Local authority, or any individual or body whether incorporated or not, for all or any of the purposes of this Act.whether incorporated or not, for all or any of the purposes of this Act.

[(3) Subject to the other provisions contained in this Act and to any rules or[(3) Subject to the other provisions contained in this Act and to any rules or regulations made in this behalf, all moneys accruing or payable to the said Fundregulations made in this behalf, all moneys accruing or payable to the said Fund shall be paid into the Reserve Bank of India or such other bank as may beshall be paid into the Reserve Bank of India or such other bank as may be

33

approved by the Central Government to the credit of an account styled the Accountapproved by the Central Government to the credit of an account styled the Account of the Employees’ State Insurance Fund.]of the Employees’ State Insurance Fund.]

(4) Such account shall be operated on by such officers as may be authorised(4) Such account shall be operated on by such officers as may be authorised by the Standing Committee with the approval of the Corporation.by the Standing Committee with the approval of the Corporation.

28. Purposes for which the Fund may be expended.28. Purposes for which the Fund may be expended. — Subject to the — Subject to the provisions of this Act and of rules made by the Central Government in that behalf,provisions of this Act and of rules made by the Central Government in that behalf, the Employees’ State Insurance Fund shall be expended only for the followingthe Employees’ State Insurance Fund shall be expended only for the following purposes, namely —purposes, namely —

(i) payment of benefits and provision of medical treatment and attendance to(i) payment of benefits and provision of medical treatment and attendance to insured persons and, where the medical benefit is extended to their families, theinsured persons and, where the medical benefit is extended to their families, the provision of such medical benefit to their families, in accordance with theprovision of such medical benefit to their families, in accordance with the provisions of this Act and defraying the charges and costs in connection therewith ;provisions of this Act and defraying the charges and costs in connection therewith ;

(ii) payment of fees and allowances to members of the Corporation, the(ii) payment of fees and allowances to members of the Corporation, the Standing Committee and the Medical Benefit Council, the Regional Boards, LocalStanding Committee and the Medical Benefit Council, the Regional Boards, Local Committees and Regional and Local Medical Benefit Councils ;Committees and Regional and Local Medical Benefit Councils ;

(iii) Payment of salaries, leave and joining time allowances, travelling and(iii) Payment of salaries, leave and joining time allowances, travelling and compensatory allowances, gratuities and compassionate allowances, pensions,compensatory allowances, gratuities and compassionate allowances, pensions, contributions to provident or other benefit fund of officers and servants of thecontributions to provident or other benefit fund of officers and servants of the Corporation and meeting the expenditure in respect of officers and other servicesCorporation and meeting the expenditure in respect of officers and other services set up for the purpose of giving effect to the provisions of this Act ;set up for the purpose of giving effect to the provisions of this Act ;

(iv) establishment and maintenance of hospitals, dispensaries and other(iv) establishment and maintenance of hospitals, dispensaries and other institutions and the provision of medical and other ancillary services for the benefitinstitutions and the provision of medical and other ancillary services for the benefit of insured persons and, where the medical benefit is extended to their families,of insured persons and, where the medical benefit is extended to their families, their families ;their families ;

(v) payment of contributions to any [State] Government 2[***] local(v) payment of contributions to any [State] Government 2[***] local authority or any private body or individual, towards the cost of medical treatmentauthority or any private body or individual, towards the cost of medical treatment and attendance provided to insured persons and, where the medical benefit isand attendance provided to insured persons and, where the medical benefit is extended to their families, their families, including the cost of any building andextended to their families, their families, including the cost of any building and equipment, in accordance with any agreement entered into by the Corporation ;equipment, in accordance with any agreement entered into by the Corporation ;

(vi) defraying the cost (including all expenses) of auditing the accounts of(vi) defraying the cost (including all expenses) of auditing the accounts of the Corporation and of the valuation of its assets and liabilities ;the Corporation and of the valuation of its assets and liabilities ;

34

(vii) defraying the cost (including all expenses) of the Employees’ Insurance(vii) defraying the cost (including all expenses) of the Employees’ Insurance Courts set up under this Act ;Courts set up under this Act ;

(viii) payment of any sums under any contract entered into for the purposes(viii) payment of any sums under any contract entered into for the purposes of this Act by the Corporation or the Standing Committee or by any officer dulyof this Act by the Corporation or the Standing Committee or by any officer duly authorised by the Corporation or the Standing Committee in that behalf ;authorised by the Corporation or the Standing Committee in that behalf ;

(ix) payment of sums under any decree, order or award of and Court or(ix) payment of sums under any decree, order or award of and Court or Tribunal against the Corporation or any of its officers or servants for any act doneTribunal against the Corporation or any of its officers or servants for any act done in the execution of his duty or under a compromise or settlement of any suit orin the execution of his duty or under a compromise or settlement of any suit or other legal proceeding or claim instituted or made against the Corporation ;other legal proceeding or claim instituted or made against the Corporation ;

(x) defraying the cost and other charges of instituting or defending any civil(x) defraying the cost and other charges of instituting or defending any civil or criminal proceedings arising out of any action taken under this Act ;or criminal proceedings arising out of any action taken under this Act ;

(xi) defraying expenditure, within the limits prescribed, on measures for the(xi) defraying expenditure, within the limits prescribed, on measures for the improvement of the health and welfare of insured persons and for the rehabilitationimprovement of the health and welfare of insured persons and for the rehabilitation and re-employment of insured persons who have been disabled or injured ; andand re-employment of insured persons who have been disabled or injured ; and

(xii) such other purposes as may be authorised by the Corporation with the(xii) such other purposes as may be authorised by the Corporation with the previous approval of the Central Government.previous approval of the Central Government.

32. Budget estimates.32. Budget estimates. — The Corporation shall in each year frame a budget — The Corporation shall in each year frame a budget showing the probable receipts and the expenditure which it proposes to incurshowing the probable receipts and the expenditure which it proposes to incur during the following year and shall submit a copy of the budget for the approval ofduring the following year and shall submit a copy of the budget for the approval of the Central Government before such date as may be fixed by it in that behalf. Thethe Central Government before such date as may be fixed by it in that behalf. The budget shall contain provisions adequate in the opinion of the Central Governmentbudget shall contain provisions adequate in the opinion of the Central Government for the discharge of the liabilities incurred by the Corporation and for the main-for the discharge of the liabilities incurred by the Corporation and for the main-tenance of a working balance.tenance of a working balance.

33. Accounts.33. Accounts. — The Corporation shall maintain correct accounts of its — The Corporation shall maintain correct accounts of its income and expenditure in such form and in such manner as may be prescribed byincome and expenditure in such form and in such manner as may be prescribed by the Central Government.the Central Government.

[34. Audit.[34. Audit. — (1) The accounts of the Corporation shall be audited — (1) The accounts of the Corporation shall be audited annually by the Comptroller and Auditor-General of India and any expenditureannually by the Comptroller and Auditor-General of India and any expenditure incurred by him in connection with such audit shall be payable by the Corporationincurred by him in connection with such audit shall be payable by the Corporation to the Comptroller and Auditor-General of India.to the Comptroller and Auditor-General of India.

(2) The Comptroller and Auditor-General of India and any person appointed(2) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Corporation shall haveby him in connection with the audit of the accounts of the Corporation shall have

35

the same rights and privileges and authority in connection with such audit as thethe same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General has, in connection with the audit of GovernmentComptroller and Auditor-General has, in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books,accounts and, in particular, shall have the right to demand the production of books, accounts, con¬nected vouchers and other documents and papers and to inspect anyaccounts, con¬nected vouchers and other documents and papers and to inspect any of the offices of the Corporation.of the offices of the Corporation.

(3) The accounts of the Corporation as certified by the Comptroller and(3) The accounts of the Corporation as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalfAuditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded to the Corporation whichtogether with the audit report thereon shall be forwarded to the Corporation which shall forward the same to the Central Government along with its comments on theshall forward the same to the Central Government along with its comments on the report of the Comptroller and Auditor¬ General.]report of the Comptroller and Auditor¬ General.]

35. Annual Report.35. Annual Report. — The Corporation shall submit to the Central — The Corporation shall submit to the Central Government an annual report of its work and activities.Government an annual report of its work and activities.

36. Budget, audited accounts and the annual report to be placed before36. Budget, audited accounts and the annual report to be placed before [Parliament].[Parliament]. — The annual report, the audited accounts of the Corporation, — The annual report, the audited accounts of the Corporation, [together with the [report of the Comptroller and Auditor General of India thereon[together with the [report of the Comptroller and Auditor General of India thereon and the comments of the Corporation on such report] under section 34] and theand the comments of the Corporation on such report] under section 34] and the budget as finally adopted by the Corporation shall be placed before [Parliament] .budget as finally adopted by the Corporation shall be placed before [Parliament] .

37. Valuation of assets and liabilities.37. Valuation of assets and liabilities. — The Corporation shall, at — The Corporation shall, at intervals of [three years], have a valuation of its assets and liabilities made by aintervals of [three years], have a valuation of its assets and liabilities made by a valuer appointed with the approval of the Central Government :valuer appointed with the approval of the Central Government :

Provided that it shall be open to the Central Government to direct aProvided that it shall be open to the Central Government to direct a valuation to be made at such other times as it may consider necessary.valuation to be made at such other times as it may consider necessary.

CHAPTER IVCHAPTER IV

CONTRIBUTIONSCONTRIBUTIONS

38. All employees to be insured.38. All employees to be insured. — Subject to the provisions of this Act, — Subject to the provisions of this Act, all employees in factories or establishments to which this Act applies shall beall employees in factories or establishments to which this Act applies shall be insured in the manner provided by this Act.insured in the manner provided by this Act.

39. Contributions.39. Contributions. — (1) The contribution payable under this Act in respect — (1) The contribution payable under this Act in respect of an employee shall comprise contribution payable by the employer (hereinafterof an employee shall comprise contribution payable by the employer (hereinafter referred to as the employer’s contribution) and contribution payable by thereferred to as the employer’s contribution) and contribution payable by the

36

employee (hereinafter referred to as the employee’s contribution) and shall be paidemployee (hereinafter referred to as the employee’s contribution) and shall be paid to the Corporation.to the Corporation.

[(2) The contributions shall be paid at such rates as may be prescribed by the[(2) The contributions shall be paid at such rates as may be prescribed by the Central Government :Central Government :

Provided that the rates so prescribed shall not be more than the rates whichProvided that the rates so prescribed shall not be more than the rates which were in force immediately before the commencement of the Employees’ Statewere in force immediately before the commencement of the Employees’ State Insurance (Amendment) Act, 1989 (29 of 1989).]Insurance (Amendment) Act, 1989 (29 of 1989).]

[(3) The wage period in relation to an employee shall be the unit in respect[(3) The wage period in relation to an employee shall be the unit in respect of which all contributions shall be payable under this Act.]of which all contributions shall be payable under this Act.]

(4) The contributions payable in respect of each [wage period] shall(4) The contributions payable in respect of each [wage period] shall ordinarily fall due on the last day of the [wage period], and where an employee isordinarily fall due on the last day of the [wage period], and where an employee is employed for part of the [wage period], or is employed under two or moreemployed for part of the [wage period], or is employed under two or more employers during the same [wage period] the contri-butions shall fall due on suchemployers during the same [wage period] the contri-butions shall fall due on such days as may be specified in the regulations.days as may be specified in the regulations.

[(5) (a) If any contribution payable under this Act is not paid by the principal[(5) (a) If any contribution payable under this Act is not paid by the principal employer on the date on which such contribution has become due, he shall beemployer on the date on which such contribution has become due, he shall be liable to pay simple interest at the rate of twelve per cent. per annum or at suchliable to pay simple interest at the rate of twelve per cent. per annum or at such higher rate as may be specified in the regulations till the date of its actualhigher rate as may be specified in the regulations till the date of its actual payment :payment :

Provided that higher interest specified in the regulations shall notProvided that higher interest specified in the regulations shall not exceed the lending rate of interest charged by any scheduled bank.exceed the lending rate of interest charged by any scheduled bank.

(b) Any interest recoverable under clause (a) may be recovered as an arrear(b) Any interest recoverable under clause (a) may be recovered as an arrear of land revenue or under section 45-C to section 45-I.of land revenue or under section 45-C to section 45-I.

Explanation. — In this sub-section “ scheduled bank ” means a bank for theExplanation. — In this sub-section “ scheduled bank ” means a bank for the time being included in the Second Schedule to the Reserve Bank of India Act,time being included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934).]1934 (2 of 1934).]

40.Principal employer to pay contributions in the first instance.40.Principal employer to pay contributions in the first instance. — (1) — (1) The principal employer shall pay in respect of every employee, whether directlyThe principal employer shall pay in respect of every employee, whether directly employed by him or by or through an immediate employer, both the employer’semployed by him or by or through an immediate employer, both the employer’s contribution and the employee’s contribution.contribution and the employee’s contribution.

(2) Notwithstanding anything contained in any other enactment but subject(2) Notwithstanding anything contained in any other enactment but subject to the provisions of this Act and the regulations, if any, made thereunder, theto the provisions of this Act and the regulations, if any, made thereunder, the principal employer shall, in the case of an employee directly employed by him (notprincipal employer shall, in the case of an employee directly employed by him (not being an exempted employee), be entitled to recover from the employee thebeing an exempted employee), be entitled to recover from the employee the employee’s contribution by reduction from his wages and not otherwise :employee’s contribution by reduction from his wages and not otherwise :

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Provided that no such deduction shall be made from any wages other thanProvided that no such deduction shall be made from any wages other than such as relate to the period or part of the period in respect of which thesuch as relate to the period or part of the period in respect of which the contribution is payable] or in excess of the sum representing the employee’scontribution is payable] or in excess of the sum representing the employee’s contribution for the period.contribution for the period.

(3) Notwithstanding any contract to the contrary, neither the principal(3) Notwithstanding any contract to the contrary, neither the principal employer nor the immediate employer shall be entitled to deduct the employer’semployer nor the immediate employer shall be entitled to deduct the employer’s contribution from any wages payable to an employee or otherwise to recover itcontribution from any wages payable to an employee or otherwise to recover it from him.from him.

(4) Any sum deducted by the principal employer from wages under this Act(4) Any sum deducted by the principal employer from wages under this Act shall be deemed to have been entrusted to him by the employee for the purpose ofshall be deemed to have been entrusted to him by the employee for the purpose of paying the contribution in respect of which it was deducted.paying the contribution in respect of which it was deducted.

(5) The principal employer shall bear the expenses of remitting the(5) The principal employer shall bear the expenses of remitting the contributions to the Corporation.contributions to the Corporation.

41.Recovery of contributions from immediate employer.41.Recovery of contributions from immediate employer. — (1) A — (1) A principal employer, who has paid contribution in respect of an employee employedprincipal employer, who has paid contribution in respect of an employee employed by or through an immediate employer, shall be entitled to recover the amount ofby or through an immediate employer, shall be entitled to recover the amount of the contribution so paid (that is to say the employer’s contribution as well as thethe contribution so paid (that is to say the employer’s contribution as well as the employee’s contribution, if any,) from the immediate employer, either byemployee’s contribution, if any,) from the immediate employer, either by deduction from any amount payable to him by the principal employer under anydeduction from any amount payable to him by the principal employer under any contract, or as a debt payable by the immediate employer.contract, or as a debt payable by the immediate employer.

[(1-A) The immediate employer shall maintain a register of employees[(1-A) The immediate employer shall maintain a register of employees employed by or through him as provided in the regulations and submit the same toemployed by or through him as provided in the regulations and submit the same to the principal employer before the settlement of any amount payable under sub-the principal employer before the settlement of any amount payable under sub-section (1).]section (1).]

(2) In the case referred to in sub-section (1), the immediate employer shall(2) In the case referred to in sub-section (1), the immediate employer shall be entitled to recover the employee’s contribution from the employee employed bybe entitled to recover the employee’s contribution from the employee employed by or through him by deduction from wages and not otherwise, subject to theor through him by deduction from wages and not otherwise, subject to the conditions specified in the proviso to sub-section (2) of section 40.conditions specified in the proviso to sub-section (2) of section 40.

42. General provisions as to payment of contributions.42. General provisions as to payment of contributions. — (1) No — (1) No employee’s contribution shall be payable by or on behalf of an employee whoseemployee’s contribution shall be payable by or on behalf of an employee whose average daily wages [during a wage period are below [such wages as may beaverage daily wages [during a wage period are below [such wages as may be prescribed by the Central Government.]]prescribed by the Central Government.]]

Explanation. — The average daily wages of an employee shall be calculatedExplanation. — The average daily wages of an employee shall be calculated [in such manner as may be prescribed by the Central Government].[in such manner as may be prescribed by the Central Government].

(2) Contribution (both the employer’s contribution and the employee’s(2) Contribution (both the employer’s contribution and the employee’s contribution) shall be payable by the principal employer for each [wage period] [incontribution) shall be payable by the principal employer for each [wage period] [in respect of the whole or part of which wages are payable to the employee and notrespect of the whole or part of which wages are payable to the employee and not otherwise].otherwise].

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43. Method of payment of contribution.43. Method of payment of contribution. — Subject to the provisions of — Subject to the provisions of this Act, the Corporation may make regulations for any matter relating orthis Act, the Corporation may make regulations for any matter relating or incidental to the payment and collection of contributions payable under this Actincidental to the payment and collection of contributions payable under this Act and without prejudice to the generality of the foregoing power such regulationsand without prejudice to the generality of the foregoing power such regulations may provide for — may provide for —

(a) the manner and time of payment of contributions ;(a) the manner and time of payment of contributions ;(b) the payment of contributions by means of adhesive or other stamp(b) the payment of contributions by means of adhesive or other stamp

affixed to or impressed upon books, cards or otherwise and regulating the manner,affixed to or impressed upon books, cards or otherwise and regulating the manner, times and conditions in, at and under which, such stamps are to be affixed ortimes and conditions in, at and under which, such stamps are to be affixed or impressed ;impressed ; [(bb)[(bb) the date by which evidence of contributions having been paid is to bethe date by which evidence of contributions having been paid is to be received by the Corporation ;]received by the Corporation ;]

(c) the entry in or upon books or cards of particular of contributions paid and(c) the entry in or upon books or cards of particular of contributions paid and benefits distributed in the case of the insured persons to whom such books or cardsbenefits distributed in the case of the insured persons to whom such books or cards relate ; andrelate ; and

(d) the issue, sale custody, production, inspection and delivery of books or(d) the issue, sale custody, production, inspection and delivery of books or cards and the replacement of books or cards which have been lost, destroyed orcards and the replacement of books or cards which have been lost, destroyed or defaced.defaced.

45-B. Recovery of contributions.45-B. Recovery of contributions. — Any contribution payable under this — Any contribution payable under this Act may be recovered as an arrear of land revenue.]Act may be recovered as an arrear of land revenue.]

[45-C. Issue of certificate to the Recovery Officer.[45-C. Issue of certificate to the Recovery Officer. — (1) Where any — (1) Where any amount is in arrear under this Act, the authorised officer may issue, to theamount is in arrear under this Act, the authorised officer may issue, to the Recovery Officer, a certificate under his signature specifying the amount of arrearsRecovery Officer, a certificate under his signature specifying the amount of arrears and the Recovery Officer, on receipt of such certificate, shall proceed to recoverand the Recovery Officer, on receipt of such certificate, shall proceed to recover the amount specified therein from the factory orm establishment or, as the casethe amount specified therein from the factory orm establishment or, as the case may be, the principal or immediate employer by one or more of the modesmay be, the principal or immediate employer by one or more of the modes mentioned below : — mentioned below : —

(a) attachment and sale of the movable or immovable property of the factory(a) attachment and sale of the movable or immovable property of the factory or establishment or, as the case may be, the principal or immedi¬ate employer ;or establishment or, as the case may be, the principal or immedi¬ate employer ;

(b) arrest of the employer and his detention in prison ;(b) arrest of the employer and his detention in prison ;(c) appointing a receiver for the management of the movable or immovable(c) appointing a receiver for the management of the movable or immovable

properties of the factory or establishment, or, as the case may be, the employer :properties of the factory or establishment, or, as the case may be, the employer :Provided that the attachment and sale of any property under this section shallProvided that the attachment and sale of any property under this section shall

first be effected against the properties of the factory or establishment and wherefirst be effected against the properties of the factory or establishment and where such attachment and sale is insufficient for recovering the whole of the amount ofsuch attachment and sale is insufficient for recovering the whole of the amount of arrears specified in the certificate, the Recovery Officer may take such proceedingsarrears specified in the certificate, the Recovery Officer may take such proceedings against the property of the employer for recovery of the whole or any part of suchagainst the property of the employer for recovery of the whole or any part of such arrears.arrears.

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(2) The authorised officer may issue a certificate under sub-section (1)(2) The authorised officer may issue a certificate under sub-section (1) notwithstanding that proceedings for recovery of the arrears by any other modenotwithstanding that proceedings for recovery of the arrears by any other mode have been taken.have been taken.

CHAPTER VCHAPTER V

BENEFITSBENEFITS

46. Benefits.46. Benefits. — (1) Subject to the provisions of this Act, the insured — (1) Subject to the provisions of this Act, the insured persons, [their dependants or the persons hereinafter mentioned, as the case maypersons, [their dependants or the persons hereinafter mentioned, as the case may be,] shall be entitled to the following benefits, namely : —be,] shall be entitled to the following benefits, namely : —

(a) periodical payments to any insured person in case of his (a) periodical payments to any insured person in case of his sicknesssickness certified by a duly appointed medical practitioner [or by any other personcertified by a duly appointed medical practitioner [or by any other person possessing such qualifications and experience as the Corporation may, bypossessing such qualifications and experience as the Corporation may, by regulations, specify in this behalf] (regulations, specify in this behalf] (hereinafter referred to as sickness benefithereinafter referred to as sickness benefit) ;) ;

[(b) periodical payments to an insured woman in case of [(b) periodical payments to an insured woman in case of confinement orconfinement or miscarriage or sickness arising out of pregnancy, confinement, prematuremiscarriage or sickness arising out of pregnancy, confinement, premature birth of child or miscarriagebirth of child or miscarriage, such woman being certified to be eligible for such, such woman being certified to be eligible for such payments by an authority specified in this behalf by the regulations (payments by an authority specified in this behalf by the regulations (hereinafterhereinafter referred to as maternity benefitreferred to as maternity benefit) ;]) ;]

(c) periodical payments to an insured person suffering from (c) periodical payments to an insured person suffering from disablementdisablement as as a result of an employment injury sustained as an employee under this Act anda result of an employment injury sustained as an employee under this Act and certified to be eligible for such payments by an authority specified in this behalf bycertified to be eligible for such payments by an authority specified in this behalf by the regulations (the regulations (hereinafter referred to as disablement benefithereinafter referred to as disablement benefit) )

(d) periodical payments to such dependants of an (d) periodical payments to such dependants of an insured person who diesinsured person who dies as a result of an employment injuryas a result of an employment injury sustained as an employee under this Act, as sustained as an employee under this Act, as are entitled to compensation under this Act (are entitled to compensation under this Act (hereinafter referred to ashereinafter referred to as dependants’ benefitdependants’ benefit) ; ) ;

(e) (e) medical treatment for and attendance on insured personsmedical treatment for and attendance on insured persons (hereinafter referred to as medical benefit)(hereinafter referred to as medical benefit) ; [and] ; [and]

[(f) payment to the eldest surviving member of the family of an insured[(f) payment to the eldest surviving member of the family of an insured person who has died, person who has died, towards the expenditure on the funeral of the deceasedtowards the expenditure on the funeral of the deceased insured personinsured person, or, where the insured person did not have a family or was not, or, where the insured person did not have a family or was not living with his family at the time of his death, living with his family at the time of his death, to the person who actually incursto the person who actually incurs the expenditure on the funeral of the deceased insured person (to be known asthe expenditure on the funeral of the deceased insured person (to be known as [funeral expenses[funeral expenses].].

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Provided that the amount of such payment shall not exceed [such amount asProvided that the amount of such payment shall not exceed [such amount as may be prescribed by the Central Government] and the claim for such paymentmay be prescribed by the Central Government] and the claim for such payment shall be made within three months of the death of the insured person or within suchshall be made within three months of the death of the insured person or within such extended period as the Corporation or any officer or authority authorised by it inextended period as the Corporation or any officer or authority authorised by it in this behalf may allow.]this behalf may allow.]

(2) The Corporation may, at the request of the appropriate Government, and(2) The Corporation may, at the request of the appropriate Government, and subject to such conditions as may be laid down in the regulations, extend thesubject to such conditions as may be laid down in the regulations, extend the medical benefits to the family of an insured person.medical benefits to the family of an insured person.

[49.Sickness benefit.[49.Sickness benefit. — The qualification of a person to claim sickness — The qualification of a person to claim sickness benefit, the conditions subject to which such benefit may be given, the rate andbenefit, the conditions subject to which such benefit may be given, the rate and period thereof shall be such as may be prescribed by the Central Government.period thereof shall be such as may be prescribed by the Central Government.

50. Maternity Benefit.50. Maternity Benefit. — The qualification of an insured woman to claim — The qualification of an insured woman to claim maternity benefit, the conditions subject to which such benefit may be given, thematernity benefit, the conditions subject to which such benefit may be given, the rates and period thereof shall be such as may be prescribed by the Centralrates and period thereof shall be such as may be prescribed by the Central Government.]Government.]

[51. Disablement benefit.[51. Disablement benefit. — Subject to the provisions of this Act 4[* * *] — Subject to the provisions of this Act 4[* * *] ——

(a) a person who sustains temporary disablement for not less than three days(a) a person who sustains temporary disablement for not less than three days (excluding the day of accident) shall be entitled to periodical payment [at such(excluding the day of accident) shall be entitled to periodical payment [at such rates and for such periods and subject to such conditions as may be prescribed byrates and for such periods and subject to such conditions as may be prescribed by the Central Government] ;the Central Government] ;

(b) a person who sustains permanent disablement, whether total or partial,(b) a person who sustains permanent disablement, whether total or partial, shall be entitled to periodical payment 6[at such rates and for such periods andshall be entitled to periodical payment 6[at such rates and for such periods and subject to such conditions as may be prescribed by the Central Government].subject to such conditions as may be prescribed by the Central Government].

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The Factories Act, 1948The Factories Act, 1948Salient FeaturesSalient Features

1.1. Employers are required to follow stringent licensing and safety measures.Employers are required to follow stringent licensing and safety measures.

2.2. Factory is defined as a place where ‘manufacturing process’ is carried outFactory is defined as a place where ‘manufacturing process’ is carried out using 10 workers using electrical power or 20 workers without power.using 10 workers using electrical power or 20 workers without power.

3.3. ‘Manufacturing process’ also includes petrol pumps, retail workshops,‘Manufacturing process’ also includes petrol pumps, retail workshops, handicraft industries etc.handicraft industries etc.

4.4. Post Bhopal tragedy (Union Carbide case) special chapter (IVA) has beenPost Bhopal tragedy (Union Carbide case) special chapter (IVA) has been added making disclosures mandatory for hazardous processes.added making disclosures mandatory for hazardous processes.

5.5. The working hours, leave , weekly days off and wages are similar to ShopThe working hours, leave , weekly days off and wages are similar to Shop and Establishment Acts- this is discussed later herein.and Establishment Acts- this is discussed later herein.

6.6. Under the Act the “occupier “ is responsible for all compliances and in theUnder the Act the “occupier “ is responsible for all compliances and in the case of an incorporated company the Director on the board of the companycase of an incorporated company the Director on the board of the company must be designated for the purpose of an “occupier”. Failing which allmust be designated for the purpose of an “occupier”. Failing which all directors could become liable.directors could become liable.

ObjectivesObjectives

1. To ensure adequate safety measures and to promote the health and welfare of the1. To ensure adequate safety measures and to promote the health and welfare of the workers employed in factories. workers employed in factories.

2. To prevent haphazard growth of factories through the provisions related to the2. To prevent haphazard growth of factories through the provisions related to the approval of plans before the creation of a factory. approval of plans before the creation of a factory. Applicability of the ActApplicability of the Act

1.1. Applicable to the whole of India including Jammu & Kashmir. Applicable to the whole of India including Jammu & Kashmir.

•• Covers all manufacturing processes and establishments falling within theCovers all manufacturing processes and establishments falling within the definition of ‘factory’.definition of ‘factory’.

3.3. Applicable to all factories using power and employing 10 or more workers, Applicable to all factories using power and employing 10 or more workers, and if not using power, employing 20 or more workers on any day of the precedingand if not using power, employing 20 or more workers on any day of the preceding 12 months. 12 months.

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Scheme of the ActScheme of the Act

•• The Act consists of 120 Sections and 3 Schedules.The Act consists of 120 Sections and 3 Schedules.

•• Schedule 1 contains list of industries involving hazardous processesSchedule 1 contains list of industries involving hazardous processes

•• Schedule 2 is about permissible level of certain chemical substances in workSchedule 2 is about permissible level of certain chemical substances in work environment.environment.

4.4. Schedule 3 consists of list of notifiable diseases.Schedule 3 consists of list of notifiable diseases.DefinitionsDefinitionsAdultAdult – means a person who has completed his eighteenth year of age. – means a person who has completed his eighteenth year of age.AdolescentAdolescent – means a person who has completed his fifteenth year of age but has – means a person who has completed his fifteenth year of age but has not completed his eighteenth year.not completed his eighteenth year.Calendar YearCalendar Year – means the period of twelve months beginning with the first day – means the period of twelve months beginning with the first day of January in any yearof January in any yearChildChild – means a person who has not completed his fifteenth year of age. – means a person who has not completed his fifteenth year of age.*Competent person*Competent person – in relation to any provisions of the Act, means a person or – in relation to any provisions of the Act, means a person or an institution recognised as such by the Chief Inspector for the purposes ofan institution recognised as such by the Chief Inspector for the purposes of carrying out tests, examinations and inspections required to be done in a factorycarrying out tests, examinations and inspections required to be done in a factory under the provisions of this Act under the provisions of this Act

………CONTD………CONTDHazardous Process – means any process or activity in relation to an industryHazardous Process – means any process or activity in relation to an industry specified in the First Schedule where, unless special care is taken, rawspecified in the First Schedule where, unless special care is taken, raw materials used therein or the intermediate or finished products, bye-products,materials used therein or the intermediate or finished products, bye-products, wastes or effluents thereof would ----wastes or effluents thereof would ----

(i) cause material impairment to the health of the persons engaged in or(i) cause material impairment to the health of the persons engaged in or connected therewith, orconnected therewith, or

(ii) result in the pollution of the general environment(ii) result in the pollution of the general environment

Provided that the State Government may, by notification in the OfficialProvided that the State Government may, by notification in the Official Gazette, amend the First Schedule by way of addition, omission or variationGazette, amend the First Schedule by way of addition, omission or variation of any industry specified in the said Schedule;} of any industry specified in the said Schedule;}

………CONTD………CONTDYoung personYoung person – means a person who is either a child or an adolescent – means a person who is either a child or an adolescentDayDay – means a period of twenty-four hours beginning at midnight – means a period of twenty-four hours beginning at midnight

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WeekWeek – means a period of seven days beginning at midnight on Saturday night or – means a period of seven days beginning at midnight on Saturday night or such other night as may be approved in writing for a particular area by the Chiefsuch other night as may be approved in writing for a particular area by the Chief Inspector of FactoriesInspector of FactoriesPowerPower – means electrical energy or any other form of energy which is – means electrical energy or any other form of energy which is mechanically transmitted and is not generated by human or animal agencymechanically transmitted and is not generated by human or animal agencyManufacturing ProcessManufacturing Process – means any process for ----- – means any process for -----

(i)(i) making, altering, repairing, ornamenting, finishing, packing, oiling, making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing, or otherwise treating or adapting anywashing, cleaning, breaking up, demolishing, or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal, orarticle or substance with a view to its use, sale, transport, delivery or disposal, or

(ii)(ii) pumping oil, water, sewage or any other substance; or} pumping oil, water, sewage or any other substance; or}

………CONTD………CONTD(iii)(iii) generating, transforming or transmitting power; or generating, transforming or transmitting power; or(iv)(iv) composing types for printing, printing by letter press, lithography, composing types for printing, printing by letter press, lithography,

photogravure, or other similar process or book binding;] [or]photogravure, or other similar process or book binding;] [or](v)(v) constructing, reconstructing, repairing, refitting, finishing or breaking up constructing, reconstructing, repairing, refitting, finishing or breaking up

ships or vessels; [or]ships or vessels; [or](vi)(vi) preserving or storing any article in cold storage;] preserving or storing any article in cold storage;]

WorkerWorker – means a person [employed, directly or by or through any agency – means a person [employed, directly or by or through any agency (including a contractor) with or without the knowledge of the principal employer,(including a contractor) with or without the knowledge of the principal employer, whether for remuneration or not], in any manufacturing process, or in cleaning anywhether for remuneration or not], in any manufacturing process, or in cleaning any part of the machinery or premises used for a manufacturing process, or in any otherpart of the machinery or premises used for a manufacturing process, or in any other kind of work incidental to, or connected with, the manufacturing process, or thekind of work incidental to, or connected with, the manufacturing process, or the subject of the manufacturing process [but does not include any member of thesubject of the manufacturing process [but does not include any member of the armed forces of the union]; armed forces of the union];

………CONTD………CONTDFactoryFactory – means any premises including the precincts thereof ---- – means any premises including the precincts thereof ----

(i)(i) whereon ten or more workers are working, or were working on any day of 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 isthe 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 being carried on with the aid of power, or is ordinarily so carried on, or

(ii)(ii) whereon twenty or more workers are working, or were working on any whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturingday of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on,process is being carried on without the aid of power, or is ordinarily so carried on, --------

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but does not include a mine subject to the operation of [the Mines Act, 1952,but does not include a mine subject to the operation of [the Mines Act, 1952, or a mobile unit belonging to the armed forces of the Union, railway running shedor a mobile unit belonging to the armed forces of the Union, railway running shed or a hotel, restaurant or eating place]. or a hotel, restaurant or eating place].

………CONTD………CONTDOccupier – of a factory means the person who has ultimate control over the affairsOccupier – of a factory means the person who has ultimate control over the affairs of the factory.of the factory.

[Provided that -----[Provided that -----(i) in the case of a firm or other association of individuals, any one of the(i) in the case of a firm or other association of individuals, any one of the

individual partners or members thereof shall be deemed to be the occupier ;individual partners or members thereof shall be deemed to be the occupier ;(ii) in the case of a company, any one of the directors shall be deemed to be(ii) in the case of a company, any one of the directors shall be deemed to be

the occupier ;the occupier ;(iii) in the case of a factory owned or controlled by the Central Government(iii) in the case of a factory owned or controlled by the Central Government

or any State Government , or any local authority, the person or persons appointedor any State Government , or any local authority, the person or persons appointed to manage the affairs of the factory by the Central Government, the Stateto manage the affairs of the factory by the Central Government, the State Government or the local authority, as the case may be, shall be deemed to be theGovernment or the local authority, as the case may be, shall be deemed to be the occupier]occupier]

Chapter IIChapter II

The INSPECTING STAFFThe INSPECTING STAFF(Sec 8) Inspectors(Sec 8) Inspectors

( 1) The State Government may, by notification in the Official Gazette,( 1) The State Government may, by notification in the Official Gazette, appoint such persons as possess the prescribed qualification to be Inspectors for theappoint such persons as possess the prescribed qualification to be Inspectors for the purposes of this Act and may assign to them such local limits as it may think fit.purposes of this Act and may assign to them such local limits as it may think fit.

(2) The State Government may, by notification in the Official Gazette,(2) The State Government may, by notification in the Official Gazette, appoint any person to be a Chief Inspector who shall, in addition to the powersappoint any person to be a Chief Inspector who shall, in addition to the powers conferred on a Chief Inspector under this Act, exercise the powers of an Inspectorconferred on a Chief Inspector under this Act, exercise the powers of an Inspector throughout the State.throughout the State.

(3) No person shall be appointed or, having been so appointed, shall(3) No person shall be appointed or, having been so appointed, shall continue to hold office, who is or becomes directly or indirectly interested in acontinue to hold office, who is or becomes directly or indirectly interested in a factory or in any process or business carried on therein or in any patent offactory or in any process or business carried on therein or in any patent of machinery connected herewith.machinery connected herewith.

(4) Every District Magistrate shall be an Inspector for his district.(4) Every District Magistrate shall be an Inspector for his district.………CONTD………CONTD

(5) The State Government may also, by notification as aforesaid, appoint(5) The State Government may also, by notification as aforesaid, appoint such public officers as it thinks fit to be additional Inspectors for all or any of thesuch public officers as it thinks fit to be additional Inspectors for all or any of the purposes of the Act, within such local limits as it may assign to them respectively. purposes of the Act, within such local limits as it may assign to them respectively.

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(6) In any area where there are more Inspectors than one the State(6) In any area where there are more Inspectors than one the State Government may, by notification as aforesaid, declare the powers which suchGovernment may, by notification as aforesaid, declare the powers which such Inspectors shall respectively exercise and the Inspector to whom the prescribedInspectors shall respectively exercise and the Inspector to whom the prescribed notices are to be sent.notices are to be sent.

(7) [Every Chief Inspector, Additional Chief Inspector, Joint Chief(7) [Every Chief Inspector, Additional Chief Inspector, Joint Chief Inspector, Deputy Chief Inspector, Inspector and every other officer appointedInspector, Deputy Chief Inspector, Inspector and every other officer appointed under this section] shall be deemed to be a public servant within the meaning of theunder this section] shall be deemed to be a public servant within the meaning of the Indian Penal Code (45 of 1860), and shall be officially subordinate to suchIndian Penal Code (45 of 1860), and shall be officially subordinate to such authority as the State Government may specify in this behalf. authority as the State Government may specify in this behalf.

………CONTD………CONTD(Sec 9) Powers of Inspectors – Subject to any rules made in this behalf, an(Sec 9) Powers of Inspectors – Subject to any rules made in this behalf, an Inspector may, within the local limits for which he is appointed, ---Inspector may, within the local limits for which he is appointed, ---

(a) enter, with such assistants, being person in the service of the(a) enter, with such assistants, being person in the service of the Government, or any local or other public authority, [or with an expert] as he thinksGovernment, or any local or other public authority, [or with an expert] as he thinks fit, any place which is used, or which he has reason to believe is used, as a factory;fit, any place which is used, or which he has reason to believe is used, as a factory;

(b) make examination of the premises, plant, machinery, article or substance;(b) make examination of the premises, plant, machinery, article or substance;

(c) inquire into any accident or dangerous occurrence, whether resulting in(c) inquire into any accident or dangerous occurrence, whether resulting in bodily injury, disability or not, and take on the spot or otherwise statements of anybodily injury, disability or not, and take on the spot or otherwise statements of any person which he may consider necessary for such inquiry;person which he may consider necessary for such inquiry;

………CONTD………CONTD(d) require the production of any prescribed register or any other document relating(d) require the production of any prescribed register or any other document relating to the factory to the factory

(e) seize, or take copies of, any register, record or other document or any portion(e) seize, or take copies of, any register, record or other document or any portion thereof as he may consider necessary in respect of any offence under this Act,thereof as he may consider necessary in respect of any offence under this Act, which he has reason to believe, has been committed;which he has reason to believe, has been committed;

(f) direct the occupier that any premises or any part thereof, or anything lying(f) direct the occupier that any premises or any part thereof, or anything lying therein, shall be left undisturbed (whether generally or in particular respects) for sotherein, shall be left undisturbed (whether generally or in particular respects) for so long as is necessary for the purpose of any examination under clause (b);long as is necessary for the purpose of any examination under clause (b);

(g) take measurements and photographs and make such recordings as he considers(g) take measurements and photographs and make such recordings as he considers necessary for the purpose of any examination under clause (b), taking with him anynecessary for the purpose of any examination under clause (b), taking with him any necessary instrument or equipmentnecessary instrument or equipment………CONTD………CONTD

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(h) in case of any dangerous article or substance found in any premises(h) in case of any dangerous article or substance found in any premises which having caused or likely to cause danger to health and safety of the workers,which having caused or likely to cause danger to health and safety of the workers, direct it to be dismantled or subject it to any process or test and take possession ofdirect it to be dismantled or subject it to any process or test and take possession of any such article or substance or a part thereof, and detain it for so long as isany such article or substance or a part thereof, and detain it for so long as is necessary for such examination;necessary for such examination;

(i) exercise such other powers as may be prescribed :] (i) exercise such other powers as may be prescribed :]

Provided the no person shall be compelled under this section to answer anyProvided the no person shall be compelled under this section to answer any question or give any evidence tending to indiscriminate himself.question or give any evidence tending to indiscriminate himself.

CHAPTER IIICHAPTER III

HEALTHHEALTH11. Cleanliness11. Cleanliness12. Disposal of wastes and effluents12. Disposal of wastes and effluents13. Ventilation and temperature13. Ventilation and temperature14. Dust and fume14. Dust and fume15. Artificial humidification15. Artificial humidification16. Overcrowding16. Overcrowding17. Lighting17. Lighting18. Drinking water18. Drinking water19. Latrines and urinals19. Latrines and urinals20. Spittoons 20. Spittoons

CHAPTER IVCHAPTER IVSAFETYSAFETY21. Fencing of machinery21. Fencing of machinery22. Work on or near machinery in motion22. Work on or near machinery in motion23. Employment of young persons on dangerous machines23. Employment of young persons on dangerous machines24. Striking gear and devices for cutting off power24. Striking gear and devices for cutting off power25. Self-acting machines25. Self-acting machines26. Casing of new machinery26. Casing of new machinery27. Prohibition of employment of women and children near cotton-openers27. Prohibition of employment of women and children near cotton-openers28. Hoists and lifts28. Hoists and lifts29. Lifting machines, chains, ropes and lifting tackles29. Lifting machines, chains, ropes and lifting tackles30. Revolving machinery30. Revolving machinery31 Presssure plant31 Presssure plant

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………CONTD………CONTD32. Floors, stairs and means of access32. Floors, stairs and means of access33. Pits, sumps, openings in floors, etc.33. Pits, sumps, openings in floors, etc.34. Excessive weights34. Excessive weights35. Protection of eyes35. Protection of eyes36. Precautions against dangerous fumes, gases, etc.36. Precautions against dangerous fumes, gases, etc.37. Explosive or inflammable dust, gas, etc.37. Explosive or inflammable dust, gas, etc.38. Precautions in case of fire38. Precautions in case of fire39. Power to require specifications of defective parts or tests39. Power to require specifications of defective parts or tests

of stabilityof stability40. Safety of buildings and machinery40. Safety of buildings and machinery

40A. Maintenance of buildings40A. Maintenance of buildings40B. Safety Officers40B. Safety Officers

………CONTD………CONTD40B. Safety Officers. (1) In every factory,--40B. Safety Officers. (1) In every factory,--

(i) wherein one thousand or more workers are ordinarily employed, or(i) wherein one thousand or more workers are ordinarily employed, or(ii) wherein, in the opinion of the State Government, any manufacturing(ii) wherein, in the opinion of the State Government, any manufacturing

process or operation is carried on, which process or operation involves any risk ofprocess or operation is carried on, which process or operation involves any risk of bodily injury, poisoning or disease, or any other hazard to health, to the personsbodily injury, poisoning or disease, or any other hazard to health, to the persons employed in the factory,employed in the factory,

the occupier shall, if so required by the State Government by the occupier shall, if so required by the State Government bynotification in the Official Gazette, employ such number of Safetynotification in the Official Gazette, employ such number of SafetyOfficers as may be specified in that notification.Officers as may be specified in that notification.

(2) The duties, qualifications and conditions of service of(2) The duties, qualifications and conditions of service ofSafety Officers shall be such as may be prescribed by the StateSafety Officers shall be such as may be prescribed by the StateGovernment.]Government.]CHAPTER IV CHAPTER IV A PROVISIONS RELATING TO HAZARDOUS PROCESSESA PROVISIONS RELATING TO HAZARDOUS PROCESSESSec 41A. Constitution of Site Appraisal CommitteesSec 41A. Constitution of Site Appraisal Committees

(1) The State Government may, for purposes of advising it to consider(1) The State Government may, for purposes of advising it to consider applications for grant of permission for the initial location of a factory involving aapplications for grant of permission for the initial location of a factory involving a hazardous process or for the expansion of any such factory, appoint a Sitehazardous process or for the expansion of any such factory, appoint a Site Appraisal Committee consisting of—Appraisal Committee consisting of—

(a) the Chief Inspector of the State who shall be its Chairman;(a) the Chief Inspector of the State who shall be its Chairman;

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(b) a representative of the Central Board for the Prevention and Control of(b) a representative of the Central Board for the Prevention and Control of Water Pollution appointed by the Central Government under section 3 of the WaterWater Pollution appointed by the Central Government under section 3 of the Water (Prevention and Control of Pollution) Act, 1974 (6 of 1974);(Prevention and Control of Pollution) Act, 1974 (6 of 1974);………CONTD………CONTD

(c) a representative of the Central Board for the Prevention and Control(c) a representative of the Central Board for the Prevention and Control of Air Pollution referred to in section 3 of the Air (Prevention and Control ofof Air Pollution referred to in section 3 of the Air (Prevention and Control of Pollution) Act, 1981 (14 of 1981);Pollution) Act, 1981 (14 of 1981);

(d) a representative of the State Board appointed under section 4 of the(d) a representative of the State Board appointed under section 4 of the Water (Prevention and Control of Pollution) Act, 1974; (6 of 1974).Water (Prevention and Control of Pollution) Act, 1974; (6 of 1974).

(e) a representative of the State Board for the Prevention and Control of Air(e) a representative of the State Board for the Prevention and Control of Air Pollution referred to in section 5 of the Air (Prevention and Control of Pollution)Pollution referred to in section 5 of the Air (Prevention and Control of Pollution) Act, 1981 (14 of 1981);Act, 1981 (14 of 1981);

(f) a representative of the Department of Environment in the State;(f) a representative of the Department of Environment in the State;(g) a representative of the Meteorological Department of the Government(g) a representative of the Meteorological Department of the Government

of India;of India;(h) an expert in the field of occupational health; and(h) an expert in the field of occupational health; and(i) a representative of the Town Planning Department of the(i) a representative of the Town Planning Department of the State Government, State Government,

………CONTD………CONTDand not more than five other members who may be co-opted by the Stateand not more than five other members who may be co-opted by the State

Government who shall be—Government who shall be—(i) a scientist having specialised knowledge of the hazardous process which(i) a scientist having specialised knowledge of the hazardous process which

will be involved in the factory,will be involved in the factory,(ii) a representative of the local authority within whose jurisdiction the(ii) a representative of the local authority within whose jurisdiction the

factory is to be established, andfactory is to be established, and(iii) not more than three other persons as deemed fit by the State(iii) not more than three other persons as deemed fit by the State

Government.Government.

(2) The Site Appraisal Committee shall examine an application for(2) The Site Appraisal Committee shall examine an application forthe establishment of a factory involving hazardous process and makethe establishment of a factory involving hazardous process and makeits recommendation to the State Government within a period of ninetyits recommendation to the State Government within a period of ninetydays of the receipt of such applications in the prescribed form.days of the receipt of such applications in the prescribed form.………CONTD………CONTD

(3) Where any process relates to a factory owned or controlled by the(3) Where any process relates to a factory owned or controlled by the Central Government or to a corporation or a company owned or controlled by theCentral Government or to a corporation or a company owned or controlled by the Central Government, the State Government shall co-opt in the Site AppraisalCentral Government, the State Government shall co-opt in the Site Appraisal Committee a representative nominated by the Central Government as a member ofCommittee a representative nominated by the Central Government as a member of that Committee.that Committee.

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(4) The Site Appraisal Committee shall have power to call for any(4) The Site Appraisal Committee shall have power to call for any information from the person making an application for the establishment orinformation from the person making an application for the establishment or expansion of a factory involving a hazardous process.expansion of a factory involving a hazardous process.

(5) Where the State Government has granted approval to an application for(5) Where the State Government has granted approval to an application for the establishment or expansion of a factory involving a hazardous process, it shallthe establishment or expansion of a factory involving a hazardous process, it shall not be necessary for an applicant to obtain a further approval from the Centralnot be necessary for an applicant to obtain a further approval from the Central Board or the State Board established under the Water (Prevention and Control ofBoard or the State Board established under the Water (Prevention and Control of Pollution) Act,1974 (6 of 1974) and the Air (Prevention and Control of Pollution)Pollution) Act,1974 (6 of 1974) and the Air (Prevention and Control of Pollution) Act 1981 (14 of 1981).Act 1981 (14 of 1981).………CONTD………CONTD41B. Compulsory disclosure of information by the occupier.41B. Compulsory disclosure of information by the occupier. --- (1) --- (1)The occupier of every factory involving a hazardous process shall disclose in theThe occupier of every factory involving a hazardous process shall disclose in the manner prescribed all information regarding dangers, including health hazards andmanner prescribed all information regarding dangers, including health hazards and the measures to overcome such hazards arising from the exposure to or handling ofthe measures to overcome such hazards arising from the exposure to or handling of the materials or substances in the manufacture, transportation, storage and otherthe materials or substances in the manufacture, transportation, storage and other processes, to the workers employed in the factory, the Chief Inspector, the localprocesses, to the workers employed in the factory, the Chief Inspector, the local authority within whose jurisdiction the factory is situate and the general public inauthority within whose jurisdiction the factory is situate and the general public in the vicinity.the vicinity.

(2) The occupier shall, at the time of registering the factory(2) The occupier shall, at the time of registering the factoryinvolving a hazardous process lay down a detailed policy with respect to theinvolving a hazardous process lay down a detailed policy with respect to the

health and safety of the workers employed therein and intimate such policy to thehealth and safety of the workers employed therein and intimate such policy to the Chief Inspector and the local authority and, thereafter, at such intervals as may beChief Inspector and the local authority and, thereafter, at such intervals as may be prescribed, inform the Chief Inspector and the local authority of any change madeprescribed, inform the Chief Inspector and the local authority of any change made in the said policy.in the said policy.………CONTD………CONTD

(3) The information furnished under sub-section (1) shall include(3) The information furnished under sub-section (1) shall includeaccurate information as to the quantity, specifications and otheraccurate information as to the quantity, specifications and othercharacteristics of wastes and the manner of their disposal.characteristics of wastes and the manner of their disposal.(4) Every occupier shall, with the approval of the Chief(4) Every occupier shall, with the approval of the ChiefInspector, draw up an on-site emergency plan and detailed disasterInspector, draw up an on-site emergency plan and detailed disastercontrol measures for his factory and make known to the workerscontrol measures for his factory and make known to the workersemployed therein and to the general public living in the vicinity ofemployed therein and to the general public living in the vicinity ofthe factory the safety measures required to be taken in the event ofthe factory the safety measures required to be taken in the event ofan accident taking place.an accident taking place.(5) Every occupier of a factory shall,--(5) Every occupier of a factory shall,-- (a) if such factory engaged in a hazardous process on the (a) if such factory engaged in a hazardous process on the commencement of the Factories (Amendment) Act, 1987, commencement of the Factories (Amendment) Act, 1987, within a within a

period of thirty days of such commencement; andperiod of thirty days of such commencement; and………CONTD………CONTD

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(b) if such factory proposes to engage in a hazardous process at any time(b) if such factory proposes to engage in a hazardous process at any time after such commencement, within a period of thirty days before theafter such commencement, within a period of thirty days before the commencement of such process,commencement of such process,inform the Chief Inspector of the nature and details of the process ininform the Chief Inspector of the nature and details of the process insuch form and in such manner as may be prescribed.such form and in such manner as may be prescribed.

(6) Where any occupier of a factory contravenes the provisions of sub-(6) Where any occupier of a factory contravenes the provisions of sub-section (5), the licence issued under section 6 to such factory shall,section (5), the licence issued under section 6 to such factory shall, notwithstanding any penalty to which the occupier or factory shall be subjected tonotwithstanding any penalty to which the occupier or factory shall be subjected to under the provisions of this Act, be liable forunder the provisions of this Act, be liable for

cancellation.cancellation.(7) The occupier of a factory involving a hazardous process shall with the(7) The occupier of a factory involving a hazardous process shall with the

previous approval of the Chief Inspector, lay down measures for the handling,previous approval of the Chief Inspector, lay down measures for the handling, usage, transportation and storage of hazardous substances inside the factoryusage, transportation and storage of hazardous substances inside the factory premises and publicise them in the manner prescribed among the workers and thepremises and publicise them in the manner prescribed among the workers and the general public living in the vicinity.general public living in the vicinity.………CONTD………CONTD

41C. Specific responsibility of the occupier in relation to hazardous41C. Specific responsibility of the occupier in relation to hazardous processes. processes. --- Every occupier of a factory involving any hazardous process shall—--- Every occupier of a factory involving any hazardous process shall—

(a) maintain accurate and up-to-date health records or, as the case may be,(a) maintain accurate and up-to-date health records or, as the case may be, medical records, of the workers in the factory who are exposed to any chemical,medical records, of the workers in the factory who are exposed to any chemical, toxic or any other harmful substances which are manufactured, stored, handled ortoxic or any other harmful substances which are manufactured, stored, handled or transported and such records shall be accessible to the workers subject to suchtransported and such records shall be accessible to the workers subject to such conditions as may be prescribed;conditions as may be prescribed;

(b) appoint persons who possess qualifications and experience in handling(b) appoint persons who possess qualifications and experience in handling hazardous substances and are competent to supervise such handling within thehazardous substances and are competent to supervise such handling within the factory and to provide at the working place all the necessary facilities forfactory and to provide at the working place all the necessary facilities for protecting the workers in the manner prescribed:protecting the workers in the manner prescribed:

Provided that where any question arises as to the qualifications andProvided that where any question arises as to the qualifications and experience of a person so appointed, the decision of the Chief Inspector shall beexperience of a person so appointed, the decision of the Chief Inspector shall be final;final;………CONTD………CONTD

(c) provide for medical examination of every worker--(c) provide for medical examination of every worker-- (a) before such worker is assigned to a job involving the (a) before such worker is assigned to a job involving the

handling of, or working with, a hazardous substance, andhandling of, or working with, a hazardous substance, and (b) while continuing in such job, and after he has ceased to (b) while continuing in such job, and after he has ceased to work in work in

such job, at intervals not exceeding twelve months, such job, at intervals not exceeding twelve months, in such manner as may in such manner as may be prescribed.be prescribed.

41G. Workers' participation in safety management. (Safety Committee)41G. Workers' participation in safety management. (Safety Committee)

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41H. Right of workers to warn about imminent danger.41H. Right of workers to warn about imminent danger.

CHAPTER VCHAPTER VWELFAREWELFARE42. Washing facilities.42. Washing facilities. ---- (1) In every factory— ---- (1) In every factory—

(a) adequate and suitable facilities for washing shall be provided and(a) adequate and suitable facilities for washing shall be provided and maintained for the use of the workers therein;maintained for the use of the workers therein;

(b) separate and adequately screened facilities shall be provided for the use(b) separate and adequately screened facilities shall be provided for the use of male and female workers; of male and female workers;

(c) such facilities shall be conveniently accessible and shall be kept clean.(c) such facilities shall be conveniently accessible and shall be kept clean.

(2) The State Government may, in respect of any factory or class or description of(2) The State Government may, in respect of any factory or class or description of factories or of any manufacturing process, prescribe standards of adequate andfactories or of any manufacturing process, prescribe standards of adequate and suitable facilities for washing.suitable facilities for washing.………CONTD………CONTD43. Facilities for storing and drying clothing. ---43. Facilities for storing and drying clothing. --- The State Government may, in The State Government may, in respect of any factory or class or description of factories, make rules requiring therespect of any factory or class or description of factories, make rules requiring the provision therein of suitable places for keeping clothing not worn during workingprovision therein of suitable places for keeping clothing not worn during working hours and for the drying of wet clothing.hours and for the drying of wet clothing.

44. Facilities for sitting.44. Facilities for sitting. ---- (1) In every factory suitable arrangements for sitting ---- (1) In every factory suitable arrangements for sitting shall be provided and maintained for all workers obliged to work in a standingshall be provided and maintained for all workers obliged to work in a standing position, in order that they may take advantage of any opportunities for rest whichposition, in order that they may take advantage of any opportunities for rest which may occur in the course of their work.may occur in the course of their work.………CONTD………CONTD(2) If, in, the opinion of the Chief Inspector, the workers in any factory engaged in(2) If, in, the opinion of the Chief Inspector, the workers in any factory engaged in a particular manufacturing process or working in a particular room are able to doa particular manufacturing process or working in a particular room are able to do their work efficiently in a sitting position, he may, by order in writing, require thetheir work efficiently in a sitting position, he may, by order in writing, require the occupier of the factory to provide before a specified date such seatingoccupier of the factory to provide before a specified date such seating arrangements as may be practicable for all workers so engaged or working.arrangements as may be practicable for all workers so engaged or working.

(3) The State Government may, by notification in the Official Gazette, declare that(3) The State Government may, by notification in the Official Gazette, declare that the provisions of sub-section (1) shall not apply to any specified factory or class orthe provisions of sub-section (1) shall not apply to any specified factory or class or description of factories or to any specified manufacturing process.description of factories or to any specified manufacturing process.………CONTD………CONTD45. First-aid appliances.45. First-aid appliances. ---- (1) There shall in every factory be provided and ---- (1) There shall in every factory be provided and maintained so as to be readily accessible during all working hours first-aid boxesmaintained so as to be readily accessible during all working hours first-aid boxes or cupboards equipped with the prescribed contents, and the number of such boxesor cupboards equipped with the prescribed contents, and the number of such boxes or cupboards to be provided and maintained shall not be less than one for everyor cupboards to be provided and maintained shall not be less than one for every one hundred and fifty workers ordinarily employed [at any one time] in the factory.one hundred and fifty workers ordinarily employed [at any one time] in the factory.

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(2) Nothing except the prescribed contents shall be kept in a first-aid box or(2) Nothing except the prescribed contents shall be kept in a first-aid box or cupboard.cupboard.

………CONTD………CONTD(3) Each first-aid box or cupboard shall be kept in the charge of a separate(3) Each first-aid box or cupboard shall be kept in the charge of a separate responsible person [who holds a certificate in first-aid treatment recognised by theresponsible person [who holds a certificate in first-aid treatment recognised by the State Government] and who shall always be readily available during the workingState Government] and who shall always be readily available during the working hours of the factory.]hours of the factory.]

(4)] In every factory wherein more than five hundred workers are [ordinarily(4)] In every factory wherein more than five hundred workers are [ordinarily employed] there shall be provided and maintained an ambulance room of theemployed] there shall be provided and maintained an ambulance room of the prescribed size, containing the prescribed equipment and in the charge of suchprescribed size, containing the prescribed equipment and in the charge of such medical and nursing staff as may be prescribed [and those facilities shall always bemedical and nursing staff as may be prescribed [and those facilities shall always be made readily available during the working hours of the factory].made readily available during the working hours of the factory].………CONTD………CONTD46. Canteens. 46. Canteens. --- (1) The State Government may make rules requiring that in any--- (1) The State Government may make rules requiring that in any specified factory wherein more than two hundred and fifty workers are ordinarilyspecified factory wherein more than two hundred and fifty workers are ordinarily employed, a canteen or canteens shall be provided and maintained by the occupieremployed, a canteen or canteens shall be provided and maintained by the occupier for the use of the workers.for the use of the workers.(2) Without prejudice to the generality of the foregoing power, such rules may(2) Without prejudice to the generality of the foregoing power, such rules may provide for--provide for--

(a) the date by which such canteen shall be provided;(a) the date by which such canteen shall be provided;(b) the standards in respect of construction, accommodation, furniture and(b) the standards in respect of construction, accommodation, furniture and

other equipment of the canteen;other equipment of the canteen;(c) the foodstuffs to be served therein and the charges(c) the foodstuffs to be served therein and the charges

which may be made therefor;which may be made therefor;………CONTD………CONTD

(d) the constitution of a managing committee for the(d) the constitution of a managing committee for thecanteen and representation of the workers in thecanteen and representation of the workers in themanagement of the canteen;management of the canteen;[(dd) the items of expenditure in the running of the canteen which are not to[(dd) the items of expenditure in the running of the canteen which are not to

be taken into account in fixing the cost of foodstuffs and which shall be borne bybe taken into account in fixing the cost of foodstuffs and which shall be borne by the employer;]the employer;]

(e) the delegation to the Chief Inspector, subject to such conditions as may(e) the delegation to the Chief Inspector, subject to such conditions as may be prescribed, of the power to make rules under clause (c).be prescribed, of the power to make rules under clause (c).………CONTD………CONTD

47. Shelters, rest rooms and lunch rooms.47. Shelters, rest rooms and lunch rooms. --- (1) In every factory wherein --- (1) In every factory wherein more than one hundred and fifty workers are ordinarily employed, adequate andmore than one hundred and fifty workers are ordinarily employed, adequate and suitable shelters or rest rooms and a suitable lunch room, with provision forsuitable shelters or rest rooms and a suitable lunch room, with provision for

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drinking water, where workers can eat meals brought by them, shall be provideddrinking water, where workers can eat meals brought by them, shall be provided and maintained for the use of the workers:and maintained for the use of the workers:

Provided that any canteen maintained in accordance with theProvided that any canteen maintained in accordance with the provisions of section 46 shall be regarded as part of the requirements of this sub-provisions of section 46 shall be regarded as part of the requirements of this sub-section:section:

Provided further that where a lunch room exists no worker shall eatProvided further that where a lunch room exists no worker shall eat any food in the work room.any food in the work room.………CONTD………CONTD

(2) The shelters or rest rooms or lunch rooms to be provided under sub-(2) The shelters or rest rooms or lunch rooms to be provided under sub-section (1) shall be sufficiently lighted and ventilated and shall be maintained in asection (1) shall be sufficiently lighted and ventilated and shall be maintained in a cool and clean condition.cool and clean condition.

(3) The State Government may--(3) The State Government may--(a) prescribe the standards in respect of construction, accommodation,(a) prescribe the standards in respect of construction, accommodation,

furniture and other equipment of shelters, rest rooms and lunch rooms to befurniture and other equipment of shelters, rest rooms and lunch rooms to be provided under this section;provided under this section;

(b) by notification in the Official Gazette, exempt any factory or class(b) by notification in the Official Gazette, exempt any factory or class or description of factories from the requirements of this section.or description of factories from the requirements of this section.………CONTD………CONTD48. Creches.48. Creches. --- (1) In every factory wherein more than [thirty women workers] --- (1) In every factory wherein more than [thirty women workers] are ordinarily employed there shall be provided and maintained a suitable room orare ordinarily employed there shall be provided and maintained a suitable room or rooms for the use of children under the age of six years of such women.rooms for the use of children under the age of six years of such women.

(2) Such rooms shall provide adequate accommodation, shall be adequately(2) Such rooms shall provide adequate accommodation, shall be adequately lighted and ventilated, shall be maintained in a clean and sanitary condition andlighted and ventilated, shall be maintained in a clean and sanitary condition and shall be under the charge of women trained in the care of children and infants.shall be under the charge of women trained in the care of children and infants.(3) The State Government may make rules--(3) The State Government may make rules--

(a) prescribing the location and the standards in respect of construction, (a) prescribing the location and the standards in respect of construction, accommodation, furniture and other equipment of rooms to be provided under thisaccommodation, furniture and other equipment of rooms to be provided under this section;section;………CONTD………CONTD

(b) requiring the provision in factories to which this section applies of (b) requiring the provision in factories to which this section applies of additional facilities for the care of children belonging to women workers, includingadditional facilities for the care of children belonging to women workers, including suitable provision of facilities for washing and changing their clothing;suitable provision of facilities for washing and changing their clothing;

(c) requiring the provision in any factory of free milk or refreshment or both(c) requiring the provision in any factory of free milk or refreshment or both for such children;for such children;

(d) requiring that facilities shall be given in any factory for the mothers of(d) requiring that facilities shall be given in any factory for the mothers of such children to feed them at the necessary intervals.such children to feed them at the necessary intervals.………CONTD………CONTD

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49. Welfare officers.49. Welfare officers. (1) In every factory wherein five hundred or more workers (1) In every factory wherein five hundred or more workers are ordinarily employed the occupier shall employ in the factory such number ofare ordinarily employed the occupier shall employ in the factory such number of welfare officers as may be prescribed.welfare officers as may be prescribed.

(2) The State Government may prescribe the duties, qualifications and conditions(2) The State Government may prescribe the duties, qualifications and conditions of service of officers employed under sub-section (1).of service of officers employed under sub-section (1).

CHAPTER VICHAPTER VIWORKING HOURS OF ADULTSWORKING HOURS OF ADULTS

51. Weekly hours.51. Weekly hours. ---- No adult worker shall be required or allowed to work in a ---- No adult worker shall be required or allowed to work in a factory for more than factory for more than forty-eight hoursforty-eight hours in any week. in any week.52. Weekly holidays.52. Weekly holidays. ---- (1) No adult worker shall be required or allowed to work ---- (1) No adult worker shall be required or allowed to work in a factory on the in a factory on the first day of the weekfirst day of the week (hereinafter referred to as the said day), (hereinafter referred to as the said day), unless—unless—

(a) he has or will have a holiday for a whole day on one of the three days(a) he has or will have a holiday for a whole day on one of the three days immediately before or after the said day, andimmediately before or after the said day, and

(b) the manager of the factory has, before the said day or the substituted day(b) the manager of the factory has, before the said day or the substituted day under clause (a), whichever is earlier,--under clause (a), whichever is earlier,--………CONTD………CONTD

(i) (i) delivered a noticedelivered a notice at the office of the Inspector of his intention to require at the office of the Inspector of his intention to require the worker to work on the said day and of the day which is to be the worker to work on the said day and of the day which is to be substitutedsubstituted, and, and

(ii) (ii) displayed a noticedisplayed a notice to that effect in the factory: to that effect in the factory:

Provided that Provided that no substitutionno substitution shall be made which will result in any worker shall be made which will result in any worker working for more than working for more than ten days consecutivelyten days consecutively without a holiday for a whole day. without a holiday for a whole day.

(2) Notices given under sub-section (1) may be (2) Notices given under sub-section (1) may be cancelled by a noticecancelled by a notice delivered at delivered at the the office of the Inspectoroffice of the Inspector and a notice and a notice displayed in the factorydisplayed in the factory not later than the not later than the day before the said day or the holiday to be cancelled, whichever is earlier.day before the said day or the holiday to be cancelled, whichever is earlier.………CONTD………CONTD(3) Where, in accordance with the provisions of sub-section (1), any worker (3) Where, in accordance with the provisions of sub-section (1), any worker worksworks on the said daon the said day and has had a holiday on one of the y and has had a holiday on one of the three days immediatelythree days immediately beforebefore it, that said day shall, for the purpose of calculating his weekly hours of it, that said day shall, for the purpose of calculating his weekly hours of work, be included in the work, be included in the preceding weekpreceding week..53. Compensatory holidays.53. Compensatory holidays. --- (1) Where, as a result of the --- (1) Where, as a result of the passing of an orderpassing of an order or the making of a ruleor the making of a rule under the provisions of this Act under the provisions of this Act exemptingexempting a factory or a factory or the workers therein from the provisions of section 52, a worker is the workers therein from the provisions of section 52, a worker is deprived of anydeprived of any of the weekly holidaysof the weekly holidays for which provision is made in sub-section (1) of that for which provision is made in sub-section (1) of that

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section, he shall be section, he shall be allowedallowed, , within the monthwithin the month in which the holidays were due to in which the holidays were due to him him or within the two monthsor within the two months immediately following that monthimmediately following that month, compensatory, compensatory holidays of holidays of equal numberequal number of the of the holidays so lostholidays so lost..

………CONTD………CONTD(2) The State Government may (2) The State Government may prescribe the mannerprescribe the manner in which the holidays for in which the holidays for which provision is made in sub section (1) which provision is made in sub section (1) shall be allowedshall be allowed..

54. Daily hours.54. Daily hours.--- Subject to the provisions of section 51, --- Subject to the provisions of section 51, no adult workerno adult worker shall shall be required or allowed to work in a factory for be required or allowed to work in a factory for more than nine hoursmore than nine hours in any day: in any day:

[Provided that, subject to the [Provided that, subject to the previous approvalprevious approval of the of the Chief InspectorChief Inspector, the, the daily maximum specifieddaily maximum specified in this section may be in this section may be exceededexceeded in order to facilitate the in order to facilitate the change of shifts.]change of shifts.]

………CONTD………CONTD55. Intervals for rest.55. Intervals for rest. --- [(1)] [The periods of work] of --- [(1)] [The periods of work] of adult workersadult workers in a in a factory each day shall be factory each day shall be so fixedso fixed that no period shall that no period shall exceed five hoursexceed five hours and that and that no worker shall work for more than five hours before he has had an interval for restno worker shall work for more than five hours before he has had an interval for rest of of at least half an hourat least half an hour..

[(2) The [(2) The State GovernmentState Government or, subject to the or, subject to the controlcontrol of the State Government, the of the State Government, the Chief InspectorChief Inspector, may, by , may, by written orderwritten order and for the and for the reasons specifiedreasons specified therein, therein, exemptexempt any factory from the provisions of sub-section (1) so however that the any factory from the provisions of sub-section (1) so however that the total number of hourstotal number of hours worked by a worker without an interval worked by a worker without an interval does not exceeddoes not exceed sixsix.].]………CONTD………CONTD56. Spreadover. ---56. Spreadover. --- The periods of work of an The periods of work of an adult workeradult worker in a factory shall be in a factory shall be so arrangedso arranged that that inclusive of his intervals for restinclusive of his intervals for rest under section 55, they shall under section 55, they shall not spreadover more than not spreadover more than ten and a half hoursten and a half hours in any day: in any day:Provided that the Provided that the Chief InspectorChief Inspector may, for may, for reasonsreasons to be to be specified inspecified in writingwriting,, increaseincrease the [spreadover the [spreadover up to twelve hoursup to twelve hours].].

57. Night shifts.57. Night shifts.--- Where a worker in a factory works on a shift which extends--- Where a worker in a factory works on a shift which extends beyond midnightbeyond midnight,--,--

(a) for the purposes of sections 52 and 53, a (a) for the purposes of sections 52 and 53, a holidayholiday for a for a whole daywhole day shall shall mean in his case a period of mean in his case a period of twenty-four consecutive hourstwenty-four consecutive hours beginning when his beginning when his shift ends;shift ends;………CONTD………CONTD

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(b) the (b) the following dayfollowing day for him shall be for him shall be deemeddeemed to be the period of to be the period of twenty-twenty-four hoursfour hours beginning when such shift ends, and the beginning when such shift ends, and the hourshours he has worked he has worked afterafter midnightmidnight shall be shall be countedcounted in the previous day. in the previous day.58. Prohibition of overlapping shifts.58. Prohibition of overlapping shifts. --- (1) Work shall --- (1) Work shall not be carried onnot be carried on in any in any factory by means of a factory by means of a system of shiftssystem of shifts so arrangedso arranged that more than that more than one relayone relay of of workers is engaged in work of the workers is engaged in work of the same kindsame kind at the at the same timesame time..[(2) The [(2) The State GovernmentState Government or subject to the or subject to the controlcontrol of the State Government, the of the State Government, the Chief InspectoChief Inspector, may, by r, may, by written orderwritten order and for the and for the reasons specified thereinreasons specified therein,, exemptexempt on such on such conditionsconditions as may be as may be deemed expedientdeemed expedient, any factory or class or, any factory or class or description of factories or any department or section of a factory or any category ordescription of factories or any department or section of a factory or any category or description of workers therein from the provisions of sub-section (1).]description of workers therein from the provisions of sub-section (1).]………CONTD………CONTD59. Extra wages for overtime.59. Extra wages for overtime. --- (1) Where a --- (1) Where a workerworker works in a factory for works in a factory for more than nine hoursmore than nine hours in any in any dayday or for or for more than forty-eight hoursmore than forty-eight hours in any in any weekweek, he shall, in respect of overtime work, be , he shall, in respect of overtime work, be entitledentitled to wages at the rate of to wages at the rate of twicetwice his his ordinary rateordinary rate of wages. of wages.[(2) For the purposes of sub-section (1), "[(2) For the purposes of sub-section (1), "ordinary rateordinary rate of wages" means the of wages" means the basicbasic wages plus such allowances, including the cash equivalent of the advantagewages plus such allowances, including the cash equivalent of the advantage accruing through the concessional sale to workers of foodgrains and otheraccruing through the concessional sale to workers of foodgrains and other articlesarticles, as the worker is for the time being entitled to, but , as the worker is for the time being entitled to, but does not include adoes not include a bonus and wages for overtime workbonus and wages for overtime work..………CONTD………CONTD(3) The (3) The State GovernmentState Government may make rules may make rules prescribingprescribing--

(a) the (a) the mannermanner in which the cash equivalent of the advantage accruing in which the cash equivalent of the advantage accruing through the concessional sale to a worker of foodgrains and other articles shall bethrough the concessional sale to a worker of foodgrains and other articles shall be computedcomputed; and; and

(b) the (b) the registersregisters that shall be that shall be maintainedmaintained in a factory for the in a factory for the purposepurpose of of securing securing compliancecompliance with the provisions of this section.] with the provisions of this section.]

60. Restriction on double employment. ---60. Restriction on double employment. --- No adultNo adult workerworker shall be shall be requiredrequired or allowedor allowed to work in any factory on any day on which he has to work in any factory on any day on which he has already beenalready been workingworking in any other factory, save in such in any other factory, save in such circumstancescircumstances as may be as may be prescribedprescribed..………CONTD………CONTD61. Notice of periods of work for adults.61. Notice of periods of work for adults. --- (1) There shall be --- (1) There shall be displayeddisplayed and and correctly maintainedcorrectly maintained in every factory in in every factory in accordanceaccordance with the provisions of sub- with the provisions of sub-section (2) of section 108, a section (2) of section 108, a notice of periodsnotice of periods of work for of work for adultsadults, , showing clearlyshowing clearly for every day the for every day the periodsperiods during which during which adultadult workers may be required to work. workers may be required to work.

(2) The (2) The periods shown in the noticeperiods shown in the notice required by sub-section (1) shall be required by sub-section (1) shall be fixedfixed beforehand in accordancebeforehand in accordance with the with the following provisionsfollowing provisions of this section, and shall of this section, and shall

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be such that workers working for those periods would not be working inbe such that workers working for those periods would not be working in contraventioncontravention of any of the provisions of sections, 51,52,54, 1*[55,56 and 58]. of any of the provisions of sections, 51,52,54, 1*[55,56 and 58].………CONTD………CONTD(3) Where all the (3) Where all the adultadult workers in a factory are workers in a factory are requiredrequired to work to work during theduring the same periodssame periods, the , the managermanager of the factory of the factory shall fixshall fix those those periodsperiods for such workers for such workers generallygenerally..(4) Where all the (4) Where all the adultadult workers in a factory are workers in a factory are not requirednot required to work during the to work during the same periods, the same periods, the managermanager of the factory of the factory shall classifyshall classify them into them into groupsgroups according to the according to the nature of their worknature of their work indicating the indicating the number of workers in eachnumber of workers in each groupgroup..(5) For (5) For each groupeach group which which is not requiredis not required to work on a to work on a system of shiftssystem of shifts, the, the managermanager of the factory of the factory shall fixshall fix the periods during which the group may be the periods during which the group may be required to workrequired to work..(6) Where (6) Where any groupany group i is requireds required to work on a to work on a system of shiftssystem of shifts and the and the relays arerelays are notnot to be subject to to be subject to predetermined periodical changes of shiftspredetermined periodical changes of shifts , the manager of, the manager of the factory the factory shall fix the periodsshall fix the periods during which during which each relayeach relay of the group may be of the group may be required to workrequired to work..

………CONTD………CONTD(7) Where (7) Where any groupany group is to workis to work on a on a system of shiftssystem of shifts and and the relaysthe relays are toare to

be subject to predetermined periodical changes of shiftsbe subject to predetermined periodical changes of shifts , the , the managermanager of the of the factory factory shall draw up a scheme of shiftsshall draw up a scheme of shifts where-under the where-under the periodsperiods during which during which any relayany relay of the group of the group may be required to workmay be required to work and the relay which will be and the relay which will be working at any time of the day working at any time of the day shall be known for any dayshall be known for any day..

(8) The (8) The State GovernmentState Government may prescribe forms of the notice may prescribe forms of the notice required byrequired by sub-section (1) and sub-section (1) and the mannerthe manner in which it in which it shall be maintainedshall be maintained..

(9) (9) In the caseIn the case of a factory of a factory beginning work after the commencement ofbeginning work after the commencement of this Actthis Act, a , a copy of the noticecopy of the notice referred to in subsection (1) referred to in subsection (1) shall be sent inshall be sent in duplicateduplicate to the to the Inspector before the dayInspector before the day on which work on which work is begunis begun in the factory. in the factory.………CONTD………CONTD(10) Any (10) Any proposed changeproposed change in the system of work in any factory which in the system of work in any factory which willwill necessitatenecessitate a a change in the noticechange in the notice referred to in subsection (1) shall be referred to in subsection (1) shall be notifiednotified to to the the InspectorInspector in in duplicateduplicate before the change is madebefore the change is made, and , and exceptexcept with the with the previous sanctionprevious sanction of the Inspector, of the Inspector, no such changeno such change shall be made until shall be made until one weekone week has has elapsedelapsed since the last change. since the last change.………CONTD………CONTD62. Register of adult workers.62. Register of adult workers. --- (1) The --- (1) The managermanager of every factory shall of every factory shall maintain a register of adult workersmaintain a register of adult workers, to be , to be availableavailable to the to the InspectorInspector at at allall timestimes during working hoursduring working hours, or when any , or when any workwork is being is being carried oncarried on in the in the factory, showing—factory, showing—

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(a) the (a) the namename of each adult worker in the factory; of each adult worker in the factory;(b) the (b) the naturenature of his work; of his work;(c) the (c) the groupgroup, if any, in which he is included;, if any, in which he is included;(d) where his group works on shifts, the (d) where his group works on shifts, the relayrelay to which he is allotted; to which he is allotted;(e) such (e) such other particularsother particulars as may be as may be prescribedprescribed::

………CONTD………CONTDProvided that, if the Inspector is of opinion that any Provided that, if the Inspector is of opinion that any muster roll or registermuster roll or register

maintained as part of the routine of a factory gives in respect of any or all themaintained as part of the routine of a factory gives in respect of any or all the workers in the factory the particulars required under this section, he may, by workers in the factory the particulars required under this section, he may, by orderorder in writingin writing, direct that such muster roll or register shall to the , direct that such muster roll or register shall to the correspondingcorresponding extentextent be maintained in place of, and be treated as, the be maintained in place of, and be treated as, the register of adult workersregister of adult workers in that factory.in that factory.[(1A) [(1A) No adult workerNo adult worker shall be required or allowed to work in any factory shall be required or allowed to work in any factory unlessunless his namehis name and other particulars and other particulars have been enteredhave been entered in the in the registerregister of adult of adult workers.]workers.](2) The (2) The State GovernmentState Government may prescribemay prescribe the formthe form of the of the register of adultregister of adult workersworkers, the , the mannermanner in which it shall be in which it shall be maintainedmaintained and the and the periodperiod for which it for which it shall be shall be preservedpreserved..………CONTD………CONTD

63. Hours of work to correspond with notice under section 61 and register63. Hours of work to correspond with notice under section 61 and register under section 62under section 62

64. Power to make exempting rules64. Power to make exempting rules65. Power to make exempting orders65. Power to make exempting orders

66. Further restrictions on employment of women66. Further restrictions on employment of women

•• The provisions of this Chapter shall, in their application to The provisions of this Chapter shall, in their application to women inwomen in factories,factories, be supplemented by the following further restrictionsbe supplemented by the following further restrictions, namely:-, namely:-

(a) (a) no exemptionno exemption from the provisions of from the provisions of section 54section 54 may be granted in may be granted in respect of any woman;respect of any woman;

(b) (b) no womanno woman shall be shall be required or allowedrequired or allowed to work in any factory to work in any factory exceptexcept between the hours of 6 A.M. and 7 P.M.between the hours of 6 A.M. and 7 P.M.

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ProvidedProvided that the that the State GovernmentState Government may, by notification in the Officialmay, by notification in the Official GazetteGazette, in respect of any factory or group or class or description of factories,, in respect of any factory or group or class or description of factories, vary the limits laid down in clause (b)vary the limits laid down in clause (b) , , butbut so that so that no such variation shallno such variation shall authorize the employment of any woman between the hours of 10 P.M. and 5authorize the employment of any woman between the hours of 10 P.M. and 5 A.M.;A.M.;

CONTD….CONTD….(c) there shall be (c) there shall be no change of shifts except after a weekly holiday or any otherno change of shifts except after a weekly holiday or any other holiday.holiday.(2) The (2) The State GovernmentState Government may make rulesmay make rules providing for the providing for the exemptionexemption from from the the restrictions set out in sub-section (1)restrictions set out in sub-section (1), to , to such extentsuch extent and subject to and subject to suchsuch conditionsconditions as it may prescribe, of women working in as it may prescribe, of women working in fish-curing or fish-canningfish-curing or fish-canning factoriesfactories, where the employment of women , where the employment of women beyondbeyond the hours specified in the said the hours specified in the said restrictions is restrictions is necessarynecessary to to prevent damageprevent damage to, or to, or deteriorationdeterioration in, any in, any rawraw materialmaterial..

(3) The rules made under sub-section (2) (3) The rules made under sub-section (2) shall remain in forceshall remain in force for for not more thannot more than three years at a timethree years at a time..

CHAPTER VIICHAPTER VIIEMPLOYMENT OF YOUNG PERSONSEMPLOYMENT OF YOUNG PERSONS

67. Prohibition of employment of young children.67. Prohibition of employment of young children. No childNo child who has who has notnot completedcompleted his his fourteenth yearfourteenth year shall be shall be required or allowedrequired or allowed to work in any to work in any factory.factory.

68. Non-adult workers to carry tokens.68. Non-adult workers to carry tokens. A childA child who has completed his who has completed his fourteenth year or an adolescentfourteenth year or an adolescent shall not be required or allowed to work in any shall not be required or allowed to work in any factory factory unlessunless——

(a) a (a) a certificate of fitness grantedcertificate of fitness granted with reference to him under with reference to him under section 69section 69 is is in the in the custody of the managercustody of the manager of the factory, and of the factory, and

(b) such child or adolescent (b) such child or adolescent carries while he is at work a tokencarries while he is at work a token giving a giving a reference to such certificate.reference to such certificate.

69. Certificates of fitness.69. Certificates of fitness. (1) A (1) A certifying surgeoncertifying surgeon shall, on the shall, on the application ofapplication of any young person or his parent or guardian accompanied by a documentany young person or his parent or guardian accompanied by a document signed by the managersigned by the manager of a factory that such person will be employed therein of a factory that such person will be employed therein ifif

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certified to be fit for workcertified to be fit for work in a factory, in a factory, or onor on the the application of the managerapplication of the manager of of the factory in which any young person the factory in which any young person wisheswishes to work, to work, examine such person andexamine such person and ascertain his fitnessascertain his fitness for work in a factory. for work in a factory.

(2) The certifying surgeon, after examination, (2) The certifying surgeon, after examination, may grantmay grant to such young person, in to such young person, in the the prescribed formprescribed form, , or may renewor may renew——

(a) a certificate of fitness to work in a factory as a (a) a certificate of fitness to work in a factory as a childchild, , if he is satisfiedif he is satisfied that the young person that the young person has completedhas completed his fourteenth year, that he his fourteenth year, that he has attained thehas attained the prescribed physical standards and that he is fit for such workprescribed physical standards and that he is fit for such work;;

(b) a certificate of fitness to work in a factory as an (b) a certificate of fitness to work in a factory as an adultadult, , if he is satisfiedif he is satisfied that the that the young person young person has completedhas completed his fifteenth year, and his fifteenth year, and is fit for a full day's workis fit for a full day's work in in a factory:a factory:

Provided that unlessProvided that unless the certifying surgeon has the certifying surgeon has personal knowledge of thepersonal knowledge of the placeplace where the young person where the young person proposesproposes to work and of the to work and of the manufacturingmanufacturing processprocess in which in which he willhe will be employed, be employed, he shall not grant or renew a certificatehe shall not grant or renew a certificate under this sub-section under this sub-section until he has examined such place.until he has examined such place.

(3) A certificate of fitness (3) A certificate of fitness granted or renewedgranted or renewed under sub-section (2)-- under sub-section (2)--

(a) shall be (a) shall be valid onlyvalid only for a period of for a period of twelve months from the datetwelve months from the date thereofthereof;;

(b) (b) may be mademay be made subject to conditions in subject to conditions in regardregard to the to the naturenature of the work of the work in which the young person may be employed, in which the young person may be employed, or requiring re-examinationor requiring re-examination of the of the young person young person before the expirybefore the expiry of the period of of the period of twelve months.twelve months.

(4) A certifying surgeon (4) A certifying surgeon shall revoke any certificate granted or renewedshall revoke any certificate granted or renewed under under sub-section (2) if in sub-section (2) if in his opinion the holderhis opinion the holder of it is of it is no longer fitno longer fit to work in the to work in the capacity stated therein in a factory.capacity stated therein in a factory.

(5) Where a certifying surgeon (5) Where a certifying surgeon refuses to grant or renewrefuses to grant or renew a certificate or a a certificate or a certificate certificate of the kindof the kind requested or revokes a certificate, requested or revokes a certificate, he shallhe shall, , if so requestedif so requested by any personby any person who could have who could have appliedapplied for the certificate or the renewal thereof, for the certificate or the renewal thereof, state his reasons in writing for so doing.state his reasons in writing for so doing.

(6) Where a certificate under this section with reference to any young person (6) Where a certificate under this section with reference to any young person isis granted or renewedgranted or renewed subject to such conditions as are referred to in subject to such conditions as are referred to in clause (b) ofclause (b) of

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sub-section (3)sub-section (3), the young person , the young person shall not be required or allowedshall not be required or allowed to work in to work in any factory any factory except in accordanceexcept in accordance with those conditions. with those conditions.

(7) (7) Any fee payableAny fee payable for a certificate under this section for a certificate under this section shall be paid by theshall be paid by the occupieroccupier and and shall not be recoverableshall not be recoverable from the young person, his parents or from the young person, his parents or guardian.guardian.

70. Effect of certificate of fitness granted to adolescent. 70. Effect of certificate of fitness granted to adolescent. (1) An (1) An adolescent who has been adolescent who has been grantedgranted a certificate of fitness to work in a factory as an a certificate of fitness to work in a factory as an adult under adult under clause (b) of sub-section (2) of section 69clause (b) of sub-section (2) of section 69, and who , and who whilewhile at work in a at work in a factory factory carries a tokencarries a token giving reference to the certificate, giving reference to the certificate, shall be deemed to beshall be deemed to be an adultan adult for all the purposes of Chapters VI and VIII: for all the purposes of Chapters VI and VIII:

(1A) (1A) No female adolescent or a male adolescentNo female adolescent or a male adolescent who who has nothas not attained the age of attained the age of seventeen yearsseventeen years but who has been but who has been grantedgranted a certificate of fitness to work in a a certificate of fitness to work in a factory as an factory as an adultadult, shall be , shall be required or allowedrequired or allowed to work in any factory to work in any factory exceptexcept between 6 A.M. and 7 P.Mbetween 6 A.M. and 7 P.M: Provided that the : Provided that the State GovernmentState Government may, by may, by notification in the Official Gazettenotification in the Official Gazette, in respect of any factory or group or class or, in respect of any factory or group or class or description of factories,--description of factories,--

(i) (i) vary the limitsvary the limits laid down in this subsection so, however, that laid down in this subsection so, however, that nono such sectionsuch section shall shall authoriseauthorise the employment of any the employment of any female adolescentfemale adolescent betweenbetween 10 P.M. and 5 A.M.10 P.M. and 5 A.M.;;

(ii) (ii) grant exemptiongrant exemption from the provisions of this sub-section in case of from the provisions of this sub-section in case of serious emergency where national interest is involvedserious emergency where national interest is involved.].]

(2) An adolescent who has (2) An adolescent who has not beennot been granted a certificate of fitness to work granted a certificate of fitness to work in a factory as an adult under the aforesaid clause (b) in a factory as an adult under the aforesaid clause (b) shall, notwithstanding hisshall, notwithstanding his age, be deemed to be a childage, be deemed to be a child for all the purposes of this Act. for all the purposes of this Act.

71. Working hours for children.71. Working hours for children. (1) (1) No childNo child shall be employed or permitted to shall be employed or permitted to work, in any factory—work, in any factory—

(a) for (a) for more thanmore than four and a half hours in any day; four and a half hours in any day;(b) during the (b) during the nightnight..

Explanation.--For the purpose of this sub-section "night" shall mean a periodExplanation.--For the purpose of this sub-section "night" shall mean a period of at least of at least twelve consecutive hourstwelve consecutive hours which which shall includeshall include the interval between the interval between 1010 P.M. and 6 A.M.P.M. and 6 A.M.]]

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(2) The period of work of (2) The period of work of all childrenall children employed in a factory shall be employed in a factory shall be limited to two shiftslimited to two shifts which shall which shall not overlap or spread over more than fivenot overlap or spread over more than five hours eachhours each; and ; and each childeach child shall be employed in shall be employed in only one of the relaysonly one of the relays which which shall shall not, exceptnot, except with the with the previous permission in writing of the Chief Inspectorprevious permission in writing of the Chief Inspector ,, be changedbe changed more frequently than once in a period of more frequently than once in a period of thirty daysthirty days..

(3) The provisions of (3) The provisions of section 52 shall apply also to child workerssection 52 shall apply also to child workers and and nono exemptionexemption from the provisions of that section may be granted in respect of any from the provisions of that section may be granted in respect of any child.child.

(4) (4) No childNo child shall be required or allowed to work in any factory shall be required or allowed to work in any factory on any dayon any day on which on which he has already been workinghe has already been working in another factory. in another factory.

(5) (5) No female childNo female child shall be required or allowed to work in any factory shall be required or allowed to work in any factory except between 8 A.M. and 7 P.M.except between 8 A.M. and 7 P.M.]]

72. Notice of periods of work for children.72. Notice of periods of work for children. (1) There shall be (1) There shall be displayeddisplayed and and correctly maintainedcorrectly maintained in every factory in which children are employed, in every factory in which children are employed, inin accordanceaccordance with the provisions of with the provisions of sub-section (2) of section 108sub-section (2) of section 108 a notice ofa notice of periods of work for childrenperiods of work for children, showing , showing clearly for every dayclearly for every day the periods during the periods during which children which children maymay be required or allowed to work. be required or allowed to work.

(2) The periods shown in the notice required by sub-section (1) (2) The periods shown in the notice required by sub-section (1) shall beshall be fixed beforehandfixed beforehand in accordance with the in accordance with the method laid down for adult workers inmethod laid down for adult workers in section 61section 61, and shall be such that children working for those periods would not be, and shall be such that children working for those periods would not be working working in contraventionin contravention of any of the provisions of of any of the provisions of section 71section 71..

(3) The provisions of sub-sections (8), (9) and (10) of section 61 shall apply(3) The provisions of sub-sections (8), (9) and (10) of section 61 shall apply also to the notice required by sub-section (1) of this section.also to the notice required by sub-section (1) of this section.

73. Register of child workers.73. Register of child workers. (1) (1) The managerThe manager of every factory in which of every factory in which children are employed children are employed shall maintain a register of child workersshall maintain a register of child workers, to be , to be availableavailable to the Inspector at all times during working hours or when any work is beingto the Inspector at all times during working hours or when any work is being carried on in a factorycarried on in a factory, showing-, showing-

(a) the (a) the namename of each child worker in the factory, of each child worker in the factory,(b) the (b) the naturenature of his work, of his work,(c) the (c) the groupgroup, if any, in which he is , if any, in which he is includedincluded,,(d) where his group works on shifts, the (d) where his group works on shifts, the relayrelay to which he is to which he is allottedallotted, and, and

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(e) the (e) the numbernumber of his certificate of fitnessof his certificate of fitness granted under section 69. granted under section 69.

(1A) (1A) No child workerNo child worker shall be required or allowed to work in any factory shall be required or allowed to work in any factory unlessunless his his name and other particulars have been entered in the register ofname and other particulars have been entered in the register of child workerschild workers.].]

(2) The (2) The State GovernmentState Government may prescribe the form of the registermay prescribe the form of the register of child of child workers, the workers, the mannermanner in which it shall be in which it shall be maintainedmaintained and the and the periodperiod for which it for which it shall be shall be preservedpreserved..

74. Hours of work to correspond with notice under section 72 and register74. Hours of work to correspond with notice under section 72 and register under section 73.under section 73. No childNo child shall be employed in any factory shall be employed in any factory otherwiseotherwise than in than in accordance with the accordance with the notice of periodsnotice of periods of work for children of work for children displayeddisplayed in the in the factoryfactory and the and the entries made beforehand against his nameentries made beforehand against his name in the register of in the register of child workers of the factory.child workers of the factory.

75. Power to require medical examination.75. Power to require medical examination. Where an Where an InspectorInspector is of is of opinionopinion——

(a) that (a) that any personany person working in a factory working in a factory withoutwithout a certificate of fitness is a a certificate of fitness is a young personyoung person, or, or

(b) that a (b) that a young personyoung person working in a factory working in a factory withwith a certificate of fitness is a certificate of fitness is no longer fitno longer fit to work in the to work in the capacity stated thereincapacity stated therein,--,--

he he may serve on the managermay serve on the manager of the factory a of the factory a noticenotice requiring that such requiring that such person or young person, as the case may be, person or young person, as the case may be, shall be examined by a certifyingshall be examined by a certifying surgeonsurgeon, and such person or young person , and such person or young person shall notshall not, , if the Inspector so directsif the Inspector so directs,, be employed, or permittedbe employed, or permitted to work, in any factory to work, in any factory untiluntil he has been he has been so examinedso examined and has been and has been grantedgranted a certificate of fitness or a fresh certificate of fitnessa certificate of fitness or a fresh certificate of fitness , as, as the case may be, under section 69, or has been the case may be, under section 69, or has been certifiedcertified by the certifying surgeon by the certifying surgeon examining him examining him not to be a young personnot to be a young person..

76. Power to make rules.76. Power to make rules.

77. Certain other provisions of law not barred.77. Certain other provisions of law not barred.

CHAPTER VIIICHAPTER VIIIANNUAL LEAVE WITH WAGESANNUAL LEAVE WITH WAGES

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78. Application of Chapter.78. Application of Chapter. --- (1) The provisions of this Chapter --- (1) The provisions of this Chapter shall notshall not operate to the prejudice of any rightoperate to the prejudice of any right to which a worker may be entitled under to which a worker may be entitled under any other law orany other law or under the under the terms of any award, 1*[agreementterms of any award, 1*[agreement (including (including settlement)] or contract of service:settlement)] or contract of service:

Provided that if such award, agreement (including settlement) or contract ofProvided that if such award, agreement (including settlement) or contract of service service provides for a longer annual leave with wagesprovides for a longer annual leave with wages than provided in this than provided in this Chapter, Chapter, the quantum of leavethe quantum of leave, which the worker shall be entitled to, , which the worker shall be entitled to, shall be inshall be in accordance with such awardaccordance with such award, , agreement or contract of serviceagreement or contract of service, but in relation, but in relation to to matters not providedmatters not provided for in such award, agreement or contract of service for in such award, agreement or contract of service oror matters which are provided for matters which are provided for less favourably thereinless favourably therein, the provisions of sections, the provisions of sections 79 to 82, so far as may be, 79 to 82, so far as may be, shall applyshall apply.].](2) The provisions of this Chapter (2) The provisions of this Chapter shall not applyshall not apply to workers to workers

in any factory of in any factory of any railway administeredany railway administered by the Government, who are by the Government, who are governed by leave rules approved by the Central Governmentgoverned by leave rules approved by the Central Government..

79. Annual leave with wages.79. Annual leave with wages. --- (1) --- (1) Every workerEvery worker who has worked for a who has worked for a period of period of 240 days or more240 days or more in a factory during a in a factory during a calendar yearcalendar year shall be allowedshall be allowed during the subsequent calendar year, leave with wages for a number of daysduring the subsequent calendar year, leave with wages for a number of days calculated at the rate of—calculated at the rate of—

(i) (i) if an adultif an adult, , one day for every twenty daysone day for every twenty days of work of work performedperformed by him during the previous calendar year;by him during the previous calendar year;

(ii) if (ii) if a childa child, , one day for every fifteen daysone day for every fifteen days of work of work performedperformed by him during the previous calendar year.by him during the previous calendar year.

Explanation 1Explanation 1.--For the purpose of this sub-section-.--For the purpose of this sub-section-(a) (a) any days of lay offany days of lay off, by agreement or contract or as , by agreement or contract or as permissiblepermissible

under the standing orders;under the standing orders;(b) in the case of a female worker, (b) in the case of a female worker, maternity leavematernity leave for any for any

number of days number of days not exceeding twelve weeksnot exceeding twelve weeks; and; and(c) (c) the leave earned in the year prior to that in which the the leave earned in the year prior to that in which the leaveleave

is enjoyedis enjoyed; ; shall be deemed to be daysshall be deemed to be days on which the worker has worked in a factory on which the worker has worked in a factory

for the for the purpose of computationpurpose of computation of the period of 240 days or more, of the period of 240 days or more, but he shallbut he shall not earn leave for these daynot earn leave for these days.s.

Explanation 2Explanation 2.--The leave admissible under this sub-section shall be.--The leave admissible under this sub-section shall be exclusive of all holidays whether occurring during or at either end of the period ofexclusive of all holidays whether occurring during or at either end of the period of leave.leave.

(2) A worker whose (2) A worker whose service commences otherwise than on the first day ofservice commences otherwise than on the first day of JanuaryJanuary shall be entitled to leave with wages at the rate laid down in clause (i) or, shall be entitled to leave with wages at the rate laid down in clause (i) or,

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as the case may be, clause (ii) of sub-section (1) if he has worked foras the case may be, clause (ii) of sub-section (1) if he has worked for two-thirds of two-thirds of the total number of days in the remainder of the calendar yearthe total number of days in the remainder of the calendar year..

(3) If a worker is (3) If a worker is discharged or dismisseddischarged or dismissed from service from service or quits hisor quits his employment or is superannuated or dies while in serviceemployment or is superannuated or dies while in service , during the course of, during the course of the calendar year, the calendar year, he or his heir or nomineehe or his heir or nominee, as the case may be, , as the case may be, shall be entitledshall be entitled to wages in lieu of the quantum of leaveto wages in lieu of the quantum of leave to which he was entitled to which he was entitled immediatelyimmediately beforebefore his discharge, dismissal, quitting of employment, superannuation or death his discharge, dismissal, quitting of employment, superannuation or death calculated at the rates specified in sub-section (1), calculated at the rates specified in sub-section (1), even if he had not worked foreven if he had not worked for the entire periodthe entire period specified in sub-section (1) or sub-section (2) specified in sub-section (1) or sub-section (2) making himmaking him eligibleeligible to avail of such leave, and such payment shall be made- to avail of such leave, and such payment shall be made-

(i) where the worker is discharged or dismissed or quits employment, (i) where the worker is discharged or dismissed or quits employment, beforebefore the expiry of the second working daythe expiry of the second working day from the date of such discharge, dismissal from the date of such discharge, dismissal or quitting; andor quitting; and

(ii) where the worker is superannuated or dies while in service, (ii) where the worker is superannuated or dies while in service, before thebefore the expiry of two monthsexpiry of two months from the date of such superannuation or death.] from the date of such superannuation or death.]

(4) In calculating leave under this section, (4) In calculating leave under this section, fraction of leave of half a day orfraction of leave of half a day or more shall be treated as one full day's leavemore shall be treated as one full day's leave , and , and fraction of less than half afraction of less than half a day shall be omittedday shall be omitted..

(5) If a worker (5) If a worker does notdoes not in any one calendar year take the whole of the leave in any one calendar year take the whole of the leave allowed to him under sub-section (1) or sub-section (2),as the case may be, anyallowed to him under sub-section (1) or sub-section (2),as the case may be, any leave leave not takennot taken by him by him shall be addedshall be added to the leave to the leave to be allowedto be allowed to him in the to him in the succeeding calendar year:succeeding calendar year:

Provided that the Provided that the total numbertotal number of days of leave that of days of leave that may be carriedmay be carried forwardforward to a succeeding year to a succeeding year shall not exceed thirtyshall not exceed thirty in the case of an in the case of an adultadult or or fortyforty in the case of a in the case of a childchild::

Provided further that a worker, Provided further that a worker, who has appliedwho has applied for leave with wages but for leave with wages but has not been givenhas not been given such leave in accordance with any scheme laid down in sub- such leave in accordance with any scheme laid down in sub-sections (8) and (9) 2*[or in contravention of sub section (10)] sections (8) and (9) 2*[or in contravention of sub section (10)] shall be entitled toshall be entitled to carry forwardcarry forward the 1*[leave refused] without any limit.the 1*[leave refused] without any limit.

(6) A worker (6) A worker may at any time apply in writingmay at any time apply in writing to the manager of a factory to the manager of a factory not less than fifteen days beforenot less than fifteen days before the date on which he the date on which he wisheswishes his leave to his leave to beginbegin,,

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to take to take all the leave or any portion thereofall the leave or any portion thereof allowable to him during the calendar allowable to him during the calendar year:year:

Provided that the Provided that the application shall be made not less than thirty daysapplication shall be made not less than thirty days beforebefore the date on which the worker wishes his leave to begin, the date on which the worker wishes his leave to begin, if he is employedif he is employed in a public utility servicein a public utility service as defined in clause (n) of section 2 of the Industrial as defined in clause (n) of section 2 of the Industrial Disputes Act, 1947: (14 of 1947.)Disputes Act, 1947: (14 of 1947.)

Provided further that the Provided further that the number of timesnumber of times in which leave may be taken in which leave may be taken during any year during any year shall not exceed threeshall not exceed three..

(7) If a worker (7) If a worker wants to avail himselfwants to avail himself of the leave with wages due to him of the leave with wages due to him toto cover a period of illnesscover a period of illness, he , he shall be grantedshall be granted such leave such leave even if the applicationeven if the application for leave is not made within the time specifiedfor leave is not made within the time specified in sub-section (6); and in such a in sub-section (6); and in such a case wages as admissible under section 81 case wages as admissible under section 81 shall be paid not later than fifteenshall be paid not later than fifteen days, or in the case of a public utility service not later than thirty daysdays, or in the case of a public utility service not later than thirty days from from the date of the application for leave.the date of the application for leave.

(8) For the purpose of (8) For the purpose of ensuring the continuity of workensuring the continuity of work, the occupier or, the occupier or manager of the factory, manager of the factory, in agreementin agreement with the with the Works CommitteeWorks Committee of the factory of the factory constituted under section 3 of the Industrial Disputes Act, 1947 (14 of 1947), or aconstituted under section 3 of the Industrial Disputes Act, 1947 (14 of 1947), or a similar Committeesimilar Committee constituted under constituted under any other Actany other Act or if there is no such Works or if there is no such Works Committee or a similar Committee in the factory, Committee or a similar Committee in the factory, in agreement with thein agreement with the representatives of the workers therein chosen in the prescribed mannerrepresentatives of the workers therein chosen in the prescribed manner , , maymay lodgelodge with the Chief Inspector with the Chief Inspector a scheme in writinga scheme in writing whereby the grant of leave whereby the grant of leave allowableallowable under this section under this section may be regulatedmay be regulated..

(9) (9) A scheme lodgedA scheme lodged under sub-section (8) under sub-section (8) shall be displayed at someshall be displayed at some conspicuous and convenient placesconspicuous and convenient places in the factory and in the factory and shall be in force for ashall be in force for a period of twelve months from the date on which it comes into forceperiod of twelve months from the date on which it comes into force , and , and maymay thereafter be renewed with or without modificationthereafter be renewed with or without modification for a for a further period offurther period of twelve months at a timetwelve months at a time, by the manager , by the manager in agreement with the Worksin agreement with the Works Committee or a similar CommitteeCommittee or a similar Committee, or as the case may be, , or as the case may be, in agreement within agreement with the representatives of the workers as specifiedthe representatives of the workers as specified in sub-section (8), and in sub-section (8), and a noticea notice of renewal shall be sentof renewal shall be sent to the Chief Inspector to the Chief Inspector before it is renewedbefore it is renewed..

(10) An application for leave which (10) An application for leave which does not contravenedoes not contravene the provisions of the provisions of sub-section (6) sub-section (6) shall not be refusedshall not be refused, , unless refusal isunless refusal is in accordance with thein accordance with the scheme for the time being in operationscheme for the time being in operation under sub-sections (8) and (9). under sub-sections (8) and (9).

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(11) If the employment of a worker who is entitled to leave under sub-(11) If the employment of a worker who is entitled to leave under sub-section (1) or sub-section (2), as the case may be, section (1) or sub-section (2), as the case may be, is terminated by the occupieris terminated by the occupier before he has taken the entire leave to which he is entitledbefore he has taken the entire leave to which he is entitled , or , or if having appliedif having applied for and having not been granted such leavefor and having not been granted such leave , the worker , the worker quitsquits his employment his employment beforebefore he has taken the leave, the he has taken the leave, the occupieroccupier of the factory of the factory shall pay himshall pay him the the amount payableamount payable under section 80 under section 80 in respect of the leave not takenin respect of the leave not taken, and , and suchsuch payment shall be madepayment shall be made, where the employment of the worker is terminated by the, where the employment of the worker is terminated by the occupier, occupier, before the expiry of the second working day after such terminationbefore the expiry of the second working day after such termination ,, and where a worker who quits his employment, and where a worker who quits his employment, on or before the next pay dayon or before the next pay day..

(12) The (12) The unavailedunavailed leave of a worker leave of a worker shall not be taken into considerationshall not be taken into consideration in in computingcomputing the period of any the period of any noticenotice required to be given required to be given beforebefore discharge or discharge or dismissal.dismissal.80. Wages during leave period.80. Wages during leave period.

(1) For the leave allowed to him under [section 78 or section 79, as the case(1) For the leave allowed to him under [section 78 or section 79, as the case may be,] a worker [shall be entitled to wages] at a rate equal to the daily average ofmay be,] a worker [shall be entitled to wages] at a rate equal to the daily average of his total full time earnings for the days on which [he actually worked] during thehis total full time earnings for the days on which [he actually worked] during the month immediately preceding his leave, exclusive of any overtime and bonus butmonth immediately preceding his leave, exclusive of any overtime and bonus but inclusive of dearness allowance and the cash equivalent of the advantage accruinginclusive of dearness allowance and the cash equivalent of the advantage accruing through the concessional sale to the worker of foodgrains and other articles.through the concessional sale to the worker of foodgrains and other articles.

[Provided that in the case of a worker who has not worked on any day during[Provided that in the case of a worker who has not worked on any day during the calendar month immediately preceding his leave, he shall be paid at a ratethe calendar month immediately preceding his leave, he shall be paid at a rate equal to the daily average of his total full time earnings for the days on which heequal to the daily average of his total full time earnings for the days on which he actually worked during the last calendar month preceding his leave, in which heactually worked during the last calendar month preceding his leave, in which he actually worked, exclusive of any overtime and bonus but inclusive of dearnessactually worked, exclusive of any overtime and bonus but inclusive of dearness allowance and the cash equivalent of the advantage accruing through theallowance and the cash equivalent of the advantage accruing through the concessional sale to the workers of foodgrains and other articles.]concessional sale to the workers of foodgrains and other articles.]

(2) The cash equivalent of the advantage accruing through the concessional(2) The cash equivalent of the advantage accruing through the concessional sale to the worker of foodgrains and other articles shall be computed as often assale to the worker of foodgrains and other articles shall be computed as often as may be prescribed, on the basis of the maximum quantity of foodgrains and othermay be prescribed, on the basis of the maximum quantity of foodgrains and other articles admissible to a standard family.articles admissible to a standard family.

Explanation 1.--"Standard family" means a family consisting of a worker,Explanation 1.--"Standard family" means a family consisting of a worker, his or her spouse and two children below the age of fourteen years requiring in allhis or her spouse and two children below the age of fourteen years requiring in all three adult consumption units.three adult consumption units.

Explanation 2.--"Adult consumption unit" means the consumption unit of aExplanation 2.--"Adult consumption unit" means the consumption unit of a male above the age of fourteen years; and the consumption unit of a female abovemale above the age of fourteen years; and the consumption unit of a female above

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the age of fourteen years and that of a child below the age of fourteen years shallthe age of fourteen years and that of a child below the age of fourteen years shall be calculated at the rates of .8 and .6 respectively of one adult consumption unit.be calculated at the rates of .8 and .6 respectively of one adult consumption unit.

(3) The State Government may make rules prescribing--(3) The State Government may make rules prescribing--(a) the manner in which the cash equivalent of the advantage accruing(a) the manner in which the cash equivalent of the advantage accruing

through the concessional sale to a worker of foodgrains and other articles shall bethrough the concessional sale to a worker of foodgrains and other articles shall be computed; andcomputed; and

(b) the registers that shall be maintained in a factory for the purpose of(b) the registers that shall be maintained in a factory for the purpose of securing compliance with the provisions of this section.securing compliance with the provisions of this section.

81. Payment in advance in certain cases.81. Payment in advance in certain cases. A worker who has been allowed A worker who has been allowed leave for not less than four days, in the case of an adult, and five days, in the caseleave for not less than four days, in the case of an adult, and five days, in the case of a child shall, before his leave begins, be paid the wages due for the period of theof a child shall, before his leave begins, be paid the wages due for the period of the leave allowed.leave allowed.

82. Mode of recovery of unpaid wages.82. Mode of recovery of unpaid wages. Any sum required to be paid by an Any sum required to be paid by an employer, under this Chapter but not paid by him shall be recoverable as delayedemployer, under this Chapter but not paid by him shall be recoverable as delayed wages under the provisions of the Payment of Wages Act 1936 (4 of 1936),wages under the provisions of the Payment of Wages Act 1936 (4 of 1936),

83. Power to make rules.83. Power to make rules. The State Government may make rules directing The State Government may make rules directing managers of factories to keep registers containing such particulars as may bemanagers of factories to keep registers containing such particulars as may be prescribed and requiring the registers to be made available for examination byprescribed and requiring the registers to be made available for examination by Inspectors.Inspectors.

84. Power to exempt factories.84. Power to exempt factories. Where the State Government is satisfied Where the State Government is satisfied that the leave rules applicable to workers in a factory provide benefits which in itsthat the leave rules applicable to workers in a factory provide benefits which in its opinion are not less favourable than those for which this Chapter makes provisionopinion are not less favourable than those for which this Chapter makes provision it may, by written order, exempt the factory from all or any of the provisions ofit may, by written order, exempt the factory from all or any of the provisions of this Chapter subject to such conditions as may be specified in the order.this Chapter subject to such conditions as may be specified in the order.

[Explanation.--For the purposes of this section, in deciding whether the[Explanation.--For the purposes of this section, in deciding whether the benefits which are provided for by any leave rules are less favourable than thosebenefits which are provided for by any leave rules are less favourable than those for which this Chapter makes provision, or not, the totality of the benefits shall befor which this Chapter makes provision, or not, the totality of the benefits shall be taken into account.]taken into account.]

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THE INDUSTRIAL DISPUTES ACT, 1947THE INDUSTRIAL DISPUTES ACT, 1947ACT NO. 14 OF 1947ACT NO. 14 OF 1947

An Act to make provision for the investigation and settlement of industrialAn Act to make provision for the investigation and settlement of industrial disputes, and for certain other purposes.disputes, and for certain other purposes.

WHEREAS it is expedient to make provision for the investigation andWHEREAS it is expedient to make provision for the investigation and settlement of industrial disputes, and for certain other purposes hereinaftersettlement of industrial disputes, and for certain other purposes hereinafter appearing;appearing;

It is hereby enacted as follows:--It is hereby enacted as follows:--

CHAPTER ICHAPTER IPRELIMINARYPRELIMINARY

1. Short title, extent and commencement.1. Short title, extent and commencement.

- (1) This Act may be called the Industrial Disputes Act, 1947.- (1) This Act may be called the Industrial Disputes Act, 1947.[(2) It extends to the whole of India:[(2) It extends to the whole of India:(3) It shall come into force on the first day of April, 1947.(3) It shall come into force on the first day of April, 1947.

2. Definitions.2. Definitions.[(j) [(j) "industry""industry" means any systematic activity carried on by co-operation means any systematic activity carried on by co-operation

between an employer and his workmen (whether such workmen are employed bybetween an employer and his workmen (whether such workmen are employed by such employer directly or by or through any agency, including a contractor) for thesuch employer directly or by or through any agency, including a contractor) for the production, supply or distribution of goods or services with a view to satisfyproduction, supply or distribution of goods or services with a view to satisfy human wants or wishes (not being wants or wishes which are merely spiritual orhuman wants or wishes (not being wants or wishes which are merely spiritual or religious in nature), whether or not,--religious in nature), whether or not,--

(i) any capital has been invested for the purpose of carrying on such activity;(i) any capital has been invested for the purpose of carrying on such activity; oror

(ii) such activity is carried on with a motive to make any gain or profit,(ii) such activity is carried on with a motive to make any gain or profit,

and includes—and includes—

(a) any activity of the Dock Labour Board established under section 5A of(a) any activity of the Dock Labour Board established under section 5A of the Dock Workers (Regulation of Employment) Act, 1948 (9 of 1948);the Dock Workers (Regulation of Employment) Act, 1948 (9 of 1948);

(b) any activity relating to the promotion of sales or business or both carried(b) any activity relating to the promotion of sales or business or both carried on by an establishment.on by an establishment.

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but does not include--but does not include--(1) any agricultural operation except where such agricultural operation is(1) any agricultural operation except where such agricultural operation is

carried on in an integrated manner with any other activity (being any such activitycarried on in an integrated manner with any other activity (being any such activity as is referred to in the foregoing provisions of this clause) and such other activity isas is referred to in the foregoing provisions of this clause) and such other activity is the predominant one.the predominant one.

Explanation.--For the purposes of this sub-clause, "agricultural operation"Explanation.--For the purposes of this sub-clause, "agricultural operation" does not include any activity carried on in a plantation as defined in clause (f) ofdoes not include any activity carried on in a plantation as defined in clause (f) of section 2 of the Plantations Labour Act, 1951 (69 of 1951); orsection 2 of the Plantations Labour Act, 1951 (69 of 1951); or

(2) hospitals or dispensaries; or(2) hospitals or dispensaries; or(3) educational, scientific, research or training institutions; or(3) educational, scientific, research or training institutions; or(4) institutions owned or managed by organisations wholly or substantially(4) institutions owned or managed by organisations wholly or substantially

engaged in any charitable, social or philanthropic service; orengaged in any charitable, social or philanthropic service; or(5) khadi or village industries; or(5) khadi or village industries; or(6) any activity of the Government relatable to the sovereign functions of the(6) any activity of the Government relatable to the sovereign functions of the

Government including all the activities carried on by the departments of theGovernment including all the activities carried on by the departments of the Central Government dealing with defence research, atomic energy and space; orCentral Government dealing with defence research, atomic energy and space; or

(7) any domestic service; or(7) any domestic service; or

(8) any activity, being a profession practised by an individual or body or(8) any activity, being a profession practised by an individual or body or individuals, if the number of persons employed by the individual or body ofindividuals, if the number of persons employed by the individual or body of individuals in relation to such profession is less than ten; orindividuals in relation to such profession is less than ten; or

(9) any activity, being an activity carried on by a co-operative society or a(9) any activity, being an activity carried on by a co-operative society or a club or any other like body of individuals, if the number of persons employed byclub or any other like body of individuals, if the number of persons employed by the co-operative society, club or other like body of individuals in relation to suchthe co-operative society, club or other like body of individuals in relation to such activity is less than ten;]activity is less than ten;]

(k) (k) "industrial dispute""industrial dispute" means any dispute or difference between means any dispute or difference between employers and employers or between employers and workmen, or betweenemployers and employers or between employers and workmen, or between workmen and workmen, which is connected with the employment or non-workmen and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labour, of anyemployment or the terms of employment or with the conditions of labour, of any person;person;

[(kkk) [(kkk) "lay-off""lay-off" (with its grammatical variations and cognate expressions) (with its grammatical variations and cognate expressions) means the failure, refusal or inability of an employer on account of shortage ofmeans the failure, refusal or inability of an employer on account of shortage of coal, power or raw materials or the accumulation of stocks or the breakdown ofcoal, power or raw materials or the accumulation of stocks or the breakdown of machinery [or natural calamity or for any other connected reason] to givemachinery [or natural calamity or for any other connected reason] to give

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employment to a workman whose name is borne on the muster rolls of hisemployment to a workman whose name is borne on the muster rolls of his industrial establishment and who has not been retrenched.industrial establishment and who has not been retrenched.

(l) (l) "lock-out""lock-out" means the [temporary closing of a place of employment] or means the [temporary closing of a place of employment] or the suspension of work, or the refusal by an employer to continue to employ anythe suspension of work, or the refusal by an employer to continue to employ any number of persons employed by him;number of persons employed by him;

(n) (n) "public utility service""public utility service" means-- means--(i) any railway service 2*[or any transport service for the carriage of(i) any railway service 2*[or any transport service for the carriage of

passengers or goods by air];passengers or goods by air];[(ia) any service in, or in connection with the working of, any major port or[(ia) any service in, or in connection with the working of, any major port or

dock;]dock;](ii) any section of an industrial establishment, on the working of which the(ii) any section of an industrial establishment, on the working of which the

safety of the establishment or the workmen employed therein depends;safety of the establishment or the workmen employed therein depends;(iii) any postal, telegraph or telephone service;(iii) any postal, telegraph or telephone service;(iv) any industry which supplies power, light or water to the public;(iv) any industry which supplies power, light or water to the public;(v) any system of public conservancy or sanitation;(v) any system of public conservancy or sanitation;(vi) any industry specified in the [First Schedule] which the appropriate(vi) any industry specified in the [First Schedule] which the appropriate

Government may, if satisfied that public emergency or public interest so requires,Government may, if satisfied that public emergency or public interest so requires, by notification in the Official Gazette, declare to be a public utility service for theby notification in the Official Gazette, declare to be a public utility service for the purposes of this Act, for such period as may be specified in the notification:purposes of this Act, for such period as may be specified in the notification:

Provided that the period so specified shall not, in the first instance, exceedProvided that the period so specified shall not, in the first instance, exceed six months but may, by a like noti-fication, be extended from time to time, by anysix months but may, by a like noti-fication, be extended from time to time, by any period not exceeding six months, at any one time if in the opinion of theperiod not exceeding six months, at any one time if in the opinion of the appropriate Government public emergency or public interest requires suchappropriate Government public emergency or public interest requires such extension;extension;

[(oo) [(oo) "retrenchment"retrenchment means the termination by the employer of the service means the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflictedof a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but does not include--by way of disciplinary action, but does not include--

(a) voluntary retirement of the workman; or(a) voluntary retirement of the workman; or(b) retirement of the workman on reaching the age of superannuation if the(b) retirement of the workman on reaching the age of superannuation if the

contract of employment between the employer and the workman concernedcontract of employment between the employer and the workman concerned contains a stipulation in that behalf; orcontains a stipulation in that behalf; or

[(bb) termination of the service of the workman as a result of the non-[(bb) termination of the service of the workman as a result of the non-renewal of the contract of employment between the employer and the workmanrenewal of the contract of employment between the employer and the workman

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concerned on its expiry or of such contract being terminated under a stipulation inconcerned on its expiry or of such contract being terminated under a stipulation in that behalf contained therein; or]that behalf contained therein; or]

(c) termination of the service of a workman on the ground of continued ill-(c) termination of the service of a workman on the ground of continued ill-health;]health;]

[(p) [(p) "settlement""settlement" means a settlement arrived at in the course of conciliation means a settlement arrived at in the course of conciliation proceeding and includes a written agreement between the employer and workmenproceeding and includes a written agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding where sucharrived at otherwise than in the course of conciliation proceeding where such agreement has been signed by the parties thereto in such manner as may beagreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof has been sent to [an officer authorised in this behalfprescribed and a copy thereof has been sent to [an officer authorised in this behalf by] the appropriate Government and the conciliation officer;]by] the appropriate Government and the conciliation officer;]

(q) (q) "strike""strike" means a cessation of work by a body of persons employed in means a cessation of work by a body of persons employed in any industry acting in combination or a concerted refusal, or a refusal under aany industry acting in combination or a concerted refusal, or a refusal under a common understanding, of any number of persons who are or have been socommon understanding, of any number of persons who are or have been so employed to continue to work or to accept employment;employed to continue to work or to accept employment;

[(r) [(r) "Tribunal""Tribunal" means an Industrial Tribunal constituted under section 7A means an Industrial Tribunal constituted under section 7A and includes an Industrial Tribunal constituted before the 10th day of March, 1957,and includes an Industrial Tribunal constituted before the 10th day of March, 1957, under this Act;]under this Act;]

[(ra) [(ra) "unfair labour practice""unfair labour practice" means any of the practices specified in the means any of the practices specified in the Fifth Schedule;Fifth Schedule;

[(rr) [(rr) "wages""wages" means all remuneration capable of being expressed in terms of means all remuneration capable of being expressed in terms of money, which would, if the terms of employment, expressed or implied, weremoney, which would, if the terms of employment, expressed or implied, were fulfilled, be payable to a workman in respect of his employment or of work done infulfilled, be payable to a workman in respect of his employment or of work done in such employment, and includes—such employment, and includes—

(i) such allowances (including dearness allowance) as the workman is for the(i) such allowances (including dearness allowance) as the workman is for the time being entitled to;time being entitled to;

(ii) the value of any house accommodation, or of supply of light, water,(ii) the value of any house accommodation, or of supply of light, water, medical attendance or other amenity or of any service or of any concessionalmedical attendance or other amenity or of any service or of any concessional supply of food-grains or other articles;supply of food-grains or other articles;

(iii) any travelling concession;(iii) any travelling concession;[(iv) any commission payable on the promotion of sales or business or both;][(iv) any commission payable on the promotion of sales or business or both;]

but does not include--but does not include--

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(a) any bonus;(a) any bonus;(b) any contribution paid or payable by the employer to any pension fund or(b) any contribution paid or payable by the employer to any pension fund or

provident fund or for the benefit of the workman under any law for the time beingprovident fund or for the benefit of the workman under any law for the time being in force;in force;

(c) any gratuity payable on the termination of his service;](c) any gratuity payable on the termination of his service;]

[(s) [(s) "workman""workman" means any person (including an apprentice) employed in means any person (including an apprentice) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical orany industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be expresssupervisory 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 anor 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 orindustrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute, or whoseretrenched in connection with, or as a consequence of, that dispute, or whose dismissal, dischasrge or retrenchment has led to that dispute, but does not includedismissal, dischasrge or retrenchment has led to that dispute, but does not include any such person -any such person -

(i) who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act,(i) who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950 (46 of 1950), or the Navy Act, 1957 (62 of 1957); or1950 (46 of 1950), or the Navy Act, 1957 (62 of 1957); or

(ii) who is employed in the police service or as an officer or other employee(ii) who is employed in the police service or as an officer or other employee of a prison; orof a prison; or

(iii) who is employed mainly in a managerial or administrative capacity; or(iii) who is employed mainly in a managerial or administrative capacity; or(iv) who, being employed in a supervisory capacity, draws wages exceeding(iv) who, being employed in a supervisory capacity, draws wages exceeding

one thousand six hundred rupees per mensem or exercises, either by the nature ofone thousand six hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functionsthe duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature.mainly of a managerial nature.

CHAPTER VCHAPTER VSTRIKES AND LOCK-OUTSSTRIKES AND LOCK-OUTS

22. Prohibition of strikes and lock-outs.- (1) No person employed in a public22. Prohibition of strikes and lock-outs.- (1) No person employed in a public utility service shall go on strike in breach of contract--utility service shall go on strike in breach of contract--

(a) without giving to the employer notice of strike, as herein-after provided,(a) without giving to the employer notice of strike, as herein-after provided, within six weeks before striking; orwithin six weeks before striking; or

(b) within fourteen days of giving such notice; or(b) within fourteen days of giving such notice; or(c) before the expiry of the date of strike specified in any such notice as(c) before the expiry of the date of strike specified in any such notice as

aforesaid; oraforesaid; or(d) during the pendency of any conciliation proceedings before a(d) during the pendency of any conciliation proceedings before a

conciliation officer and seven days after the conclusion of such proceedings.conciliation officer and seven days after the conclusion of such proceedings.

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(2) No employer carrying on any public utility service shall lock-out any of(2) No employer carrying on any public utility service shall lock-out any of his workmen--his workmen--

(a) without giving them notice of lock-out as hereinafter provided, within six(a) without giving them notice of lock-out as hereinafter provided, within six weeks before locking out; orweeks before locking out; or

(b) within fourteen days of giving such notice; or(b) within fourteen days of giving such notice; or(c) before the expiry of the date of lock-out specified in any such notice as(c) before the expiry of the date of lock-out specified in any such notice as

aforesaid; oraforesaid; or

(d) during the pendency of any conciliation proceedings before a(d) during the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings.conciliation officer and seven days after the conclusion of such proceedings.

(3) The notice of lock-out or strike under this section shall not be necessary(3) The notice of lock-out or strike under this section shall not be necessary where there is already in existence a strike or, as the case may be, lock-out in thewhere there is already in existence a strike or, as the case may be, lock-out in the public utility service, but the employer shall send intimation of such lock-out orpublic utility service, but the employer shall send intimation of such lock-out or strike on the day on which it is declared, to such authority as may be specified bystrike on the day on which it is declared, to such authority as may be specified by the appropriate Government either generally or for a particular area or for athe appropriate Government either generally or for a particular area or for a particular class of public utility services.particular class of public utility services.

(4) The notice of strike referred to in sub-section (1) shall be given by such(4) The notice of strike referred to in sub-section (1) shall be given by such number of persons to such person or persons and in such manner as may benumber of persons to such person or persons and in such manner as may be prescribed.prescribed.

(5) The notice of lock-out referred to in sub-section (2) shall be given in(5) The notice of lock-out referred to in sub-section (2) shall be given in such manner as may be prescribed.such manner as may be prescribed.

(6) If on any day an employer receives from any persons employed by him(6) If on any day an employer receives from any persons employed by him any such notices as are referred to in sub-section (1) or gives to any personsany such notices as are referred to in sub-section (1) or gives to any persons employed by him any such notices as are referred to in sub-section (2), he shallemployed by him any such notices as are referred to in sub-section (2), he shall within five days thereof report to the appropriate Government or to such authoritywithin five days thereof report to the appropriate Government or to such authority as that Government may prescribe the number of such notices received or given onas that Government may prescribe the number of such notices received or given on that day.that day.[CHAPTER VA[CHAPTER VALAY-OFF AND RETRENCHMENTLAY-OFF AND RETRENCHMENT

25A. Application of sections 25C to 25E.25A. Application of sections 25C to 25E.-(1) Sections 25C to 25E-(1) Sections 25C to 25E inclusive [shall not apply to industrial establishments to which Chapter VB applies,inclusive [shall not apply to industrial establishments to which Chapter VB applies, or--]or--]

(a) to industrial establishments in which less than fifty workmen on an(a) to industrial establishments in which less than fifty workmen on an average per working day have been employed in the preceding calendar month; oraverage per working day have been employed in the preceding calendar month; or

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(b) to industrial establishments which are of a seasonal character or in which(b) to industrial establishments which are of a seasonal character or in which work is performed only intermittently.work is performed only intermittently.

(2) If a question arises whether an industrial establishment is of a seasonal(2) If a question arises whether an industrial establishment is of a seasonal character or whether work is performed therein only intermittently, the decision ofcharacter or whether work is performed therein only intermittently, the decision of the appropriate Government thereon shall be final.the appropriate Government thereon shall be final.

[Explanation.--In this section and in sections 25C, 25D and 25E, "industrial[Explanation.--In this section and in sections 25C, 25D and 25E, "industrial establishment" means--establishment" means--

(i) a factory as defined in clause (m) of section 2 of the Factories Act 1948(i) a factory as defined in clause (m) of section 2 of the Factories Act 1948 (63 of 1948); or(63 of 1948); or

(ii) a mine as defined in clause (j) of section 2 of the Mines Act, 1952 (35 of(ii) a mine as defined in clause (j) of section 2 of the Mines Act, 1952 (35 of 1952); or1952); or

(iii) a plantation as defined in clause (f) of section 2 of the Plantations(iii) a plantation as defined in clause (f) of section 2 of the Plantations Labour Act, 1951 (69 of 1951).]Labour Act, 1951 (69 of 1951).]

[25B. Definition of continuous service.[25B. Definition of continuous service.

[25C. Right of workmen laid-off for compensation.- Whenever a workman[25C. Right of workmen laid-off for compensation.- Whenever a workman (other than a badli workman or a casual workman) whose name is borne on the(other than a badli workman or a casual workman) whose name is borne on the muster rolls of an industrial establishment and who has completed not less than onemuster rolls of an industrial establishment and who has completed not less than one year of continuous service under an employer is laid-off, whether continuously oryear of continuous service under an employer is laid-off, whether continuously or intermittently, he shall be paid by the employer for all days during which he is sointermittently, he shall be paid by the employer for all days during which he is so laid-off, except for such weekly holidays as may intervene, compensation whichlaid-off, except for such weekly holidays as may intervene, compensation which shall be equal to fifty per cent. of the total of the basic wages and dearnessshall be equal to fifty per cent. of the total of the basic wages and dearness allowanceallowance that would have been payable to him had he not been so laid-off: that would have been payable to him had he not been so laid-off:

Provided that if during any period of twelve months, a workman is so laid-Provided that if during any period of twelve months, a workman is so laid-off for more than forty-five days, no such compensation shall be payable in respectoff for more than forty-five days, no such compensation shall be payable in respect of any period of the lay-off after the expiry of the first forty-five days, if there is anof any period of the lay-off after the expiry of the first forty-five days, if there is an agreement to that effect between the workman and the employer:agreement to that effect between the workman and the employer:

Provided further that it shall be lawful for the employer in any case fallingProvided further that it shall be lawful for the employer in any case falling within the foregoing proviso to retrench the workman in accordance with thewithin the foregoing proviso to retrench the workman in accordance with the provisions contained in section 25F at any time after the expiry of the first forty-provisions contained in section 25F at any time after the expiry of the first forty-five days of the lay-off and when he does so, any compensation paid to thefive days of the lay-off and when he does so, any compensation paid to the workman for having been laidoff during the preceding twelve months may be setworkman for having been laidoff during the preceding twelve months may be set off against the compensation payable for retrenchment.off against the compensation payable for retrenchment.

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THE INDUSTRIAL DIPSUTES (AMENDMENT) ACT, 2010THE INDUSTRIAL DIPSUTES (AMENDMENT) ACT, 2010No.24 OF 2010No.24 OF 2010“CHAPTER IIB“CHAPTER IIB(GRIEVANCE REDRESSAL MACHINERY)(GRIEVANCE REDRESSAL MACHINERY)

9C.9C. (l) Every industrial establishment employing twenty or more workmen (l) Every industrial establishment employing twenty or more workmen shall have one or more Grievance Redressal Committee for the resolution ofshall have one or more Grievance Redressal Committee for the resolution of disputes arising out of individual grievances.disputes arising out of individual grievances.

(2) The Grievance Redressal Committee shall consist of equal number of(2) The Grievance Redressal Committee shall consist of equal number of members from the employer and the workmen.members from the employer and the workmen.

(3) The chairperson of the Grievance Redressal Committee shall be selected(3) The chairperson of the Grievance Redressal Committee shall be selected from the employer and from among the workmen alternatively on rotation basisfrom the employer and from among the workmen alternatively on rotation basis every year.every year.

(4) The total number of members of the Grievance Redressal Committee(4) The total number of members of the Grievance Redressal Committee shall not exceed more than six:shall not exceed more than six:

Provided that there shall be, as far as practicable, one woman member if theProvided that there shall be, as far as practicable, one woman member if the Grievance Redressal Committee has two members and in case the number ofGrievance Redressal Committee has two members and in case the number of members are more than two, the number of women members may be increasedmembers are more than two, the number of women members may be increased proportionately.proportionately.

(5) Notwithstanding anything contained in this section, the setting up of(5) Notwithstanding anything contained in this section, the setting up of Grievance Redressal Committee shall not affect the right of the workman to raiseGrievance Redressal Committee shall not affect the right of the workman to raise industrial dispute on the same matter under the provisions of this Act.industrial dispute on the same matter under the provisions of this Act.

(6) The Grievance Redressal Committee may complete its proceedings(6) The Grievance Redressal Committee may complete its proceedings within forty-five days on receipt of a written application by or on behalf of thewithin forty-five days on receipt of a written application by or on behalf of the aggrieved party.aggrieved party.

(7) The workman who is aggrieved of the decision of the Grievance(7) The workman who is aggrieved of the decision of the Grievance Redressal Committee may prefer an appeal to the employer against the decision ofRedressal Committee may prefer an appeal to the employer against the decision of Grievance Redressal Committee and the employer shall, within one month fromGrievance Redressal Committee and the employer shall, within one month from the date of receipt of such appeal, dispose off the same and send a copy of histhe date of receipt of such appeal, dispose off the same and send a copy of his decision to the workman concerned.decision to the workman concerned.

(8) Nothing contained in this section shall apply to the workmen for whom(8) Nothing contained in this section shall apply to the workmen for whom there is an established Grievance Redressal Mechanism in the establishmentthere is an established Grievance Redressal Mechanism in the establishment concerned.”concerned.”

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THE MATERNITY BENEFIT ACT,1961THE MATERNITY BENEFIT ACT,1961

STATEMENT OF OBJECTS AND REASONSSTATEMENT OF OBJECTS AND REASONS

The Maternity Benefit Act, 1961 regulates the employment of women in factories,The Maternity Benefit Act, 1961 regulates the employment of women in factories, mines, the circus industry, plantations and shops or establishments employing mines, the circus industry, plantations and shops or establishments employing 1010 or more persons except the employees who are covered under the Employees'or more persons except the employees who are covered under the Employees' State Insurance (ESI)State Insurance (ESI) for certain periods before and after child-birth and provides for certain periods before and after child-birth and provides for for maternity and other benefitsmaternity and other benefits..

2. With the gradual extension of coverage under the Employees' State Insurance2. With the gradual extension of coverage under the Employees' State Insurance Act, 1948 (ESI Act) which also provides for maternity and certain other benefits,Act, 1948 (ESI Act) which also provides for maternity and certain other benefits, the area of application of the Maternity Benefit Act, 1961 has shrunk to somethe area of application of the Maternity Benefit Act, 1961 has shrunk to some extent. The coverage under the ESI Act is, however, at present restricted toextent. The coverage under the ESI Act is, however, at present restricted to factories and certain other specified categories of establishments located infactories and certain other specified categories of establishments located in specified areas. specified areas. The Act is, therefore, still applicable to women employeesThe Act is, therefore, still applicable to women employees employed in establishments which are not covered by the ESI Act, as also toemployed in establishments which are not covered by the ESI Act, as also to women employees, employed in establishments covered by the ESI Act, butwomen employees, employed in establishments covered by the ESI Act, but who are out of its coverage because of the wage-limit.who are out of its coverage because of the wage-limit.

3. Under the Maternity Benefit Act, 1961, women employees are entitled to3. Under the Maternity Benefit Act, 1961, women employees are entitled to maternity benefit at the rate of average daily wage for the period of their actualmaternity benefit at the rate of average daily wage for the period of their actual absence up to 12 weeks due to the delivery. In cases of illness arising due toabsence up to 12 weeks due to the delivery. In cases of illness arising due to pregnancy, etc., they are entitled to additional leave with wages for a period of onepregnancy, etc., they are entitled to additional leave with wages for a period of one month. They are also entitled to six weeks maternity benefit in case of miscarriage.month. They are also entitled to six weeks maternity benefit in case of miscarriage. The Maternity Benefit Act, 1961 also makes certain other provisions to safeguardThe Maternity Benefit Act, 1961 also makes certain other provisions to safeguard the interest of pregnant women workers.the interest of pregnant women workers.

4. Section 8 of the Maternity Benefit Act, 1961 provides that every woman4. Section 8 of the Maternity Benefit Act, 1961 provides that every woman entitled to maternity benefit shall also be entitled to receive from her employerentitled to maternity benefit shall also be entitled to receive from her employer medical bonus of Rs. 250, if no pre-natal confinement and post-natal care ismedical bonus of Rs. 250, if no pre-natal confinement and post-natal care is provided for by the employer free of charge.provided for by the employer free of charge.

5. In the present economic scenario, it is felt that the medical bonus, which5. In the present economic scenario, it is felt that the medical bonus, which is presently Rs. 250/-, is inadequate. Therefore, it is proposed—is presently Rs. 250/-, is inadequate. Therefore, it is proposed—

(i) to raise the medical bonus payable under the Maternity Benefit(i) to raise the medical bonus payable under the Maternity Benefit Act, 1961 from Rs. 250/- to Rs. 2,500/-; andAct, 1961 from Rs. 250/- to Rs. 2,500/-; and

(ii) to give powers to the Central Government to revise medical bonus(ii) to give powers to the Central Government to revise medical bonus from time to time subject to a maximum of Rs. 20,000/-.from time to time subject to a maximum of Rs. 20,000/-.

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6. The Bill seeks to achieve the above objects.6. The Bill seeks to achieve the above objects.

An Act to regulate the employment of women in certain establishmentAn Act to regulate the employment of women in certain establishment for certain period before and after child-birth and to provide for maternityfor certain period before and after child-birth and to provide for maternity benefit and certain other benefits.benefit and certain other benefits.

Be it enacted by Parliament in the Twelfth Year of the Republic of India asBe it enacted by Parliament in the Twelfth Year of the Republic of India as follows: -follows: -

1. Short title, extend and commencement. -- (1) This Act may be called the1. Short title, extend and commencement. -- (1) This Act may be called the Maternity Benefit Act, 1961.Maternity Benefit Act, 1961.

(2) It extends to the whole of India 2[* * *](2) It extends to the whole of India 2[* * *]

(3) It shall come into force on such date as may be notified in this behalf in(3) It shall come into force on such date as may be notified in this behalf in the Official Gazette, --the Official Gazette, --

[(a) in relation to mines and to any other establishment wherein persons are[(a) in relation to mines and to any other establishment wherein persons are employed for the exhibition of equestrian, acrobatic and other performances, by theemployed for the exhibition of equestrian, acrobatic and other performances, by the Central Government, and]Central Government, and]

(b) in relation to other establishments in a State, by the State Government.(b) in relation to other establishments in a State, by the State Government.

2. 2. Application of Act. Application of Act. -- (1) It applies in the first instance, to every-- (1) It applies in the first instance, to every establishment being a factory, mine or plantation 4[including any suchestablishment being a factory, mine or plantation 4[including any such establishment belonging to Government and to every establishment whereinestablishment belonging to Government and to every establishment wherein persons are employed for the exhibition of equestrian, acrobatic and otherpersons are employed for the exhibition of equestrian, acrobatic and other performances]:performances]:

Provided that the State Government may, with the approval of the CentralProvided that the State Government may, with the approval of the Central Government, after giving not less than two months’ notice of its intention of soGovernment, after giving not less than two months’ notice of its intention of so doing, by notification In the official on In the official Gazette, declare that all ordoing, by notification In the official on In the official Gazette, declare that all or any of the provisions of this Act shall apply also to any other establishment or classany of the provisions of this Act shall apply also to any other establishment or class of establishments, industrial, commercial, agricultural or otherwise.of establishments, industrial, commercial, agricultural or otherwise.

(2) 5[Save as otherwise provided in 6[sections 5A and 5B] nothing(2) 5[Save as otherwise provided in 6[sections 5A and 5B] nothing contained in this Act] shall apply to any factory or other establishment to which thecontained in this Act] shall apply to any factory or other establishment to which the provisions of the Employees’ State Insurance Act, 1948 (84 of 1948), apply for theprovisions of the Employees’ State Insurance Act, 1948 (84 of 1948), apply for the time being.time being.

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3. 3. Definitions.Definitions. -- In this Act, unless the context otherwise requires, ---- In this Act, unless the context otherwise requires, --

(a) “appropriate Government” (a) “appropriate Government” means in relation to an establishment beingmeans in relation to an establishment being a mine 7[or an establishment where persons are employed for the exhibition ofa mine 7[or an establishment where persons are employed for the exhibition of equestrian, acrobatic and other performances], the Central Government and inequestrian, acrobatic and other performances], the Central Government and in relation to any other establishment, the State Government;relation to any other establishment, the State Government;

(b) “child”(b) “child” includes a still-born child; includes a still-born child;

(c) “delivery”(c) “delivery” means the birth of a child; means the birth of a child;

(d) “employer”(d) “employer” means – means –

(i) in relation to an establishment which is under the control of the(i) in relation to an establishment which is under the control of the Government, a person or authority appointed by the Government for theGovernment, a person or authority appointed by the Government for the supervision and control of employees or where no person or authority is sosupervision and control of employees or where no person or authority is so appointed, the head of the department;appointed, the head of the department;

(ii) in relation to an establishment which is under any local authority, the(ii) in relation to an establishment which is under any local authority, the person appointed by such authority for the supervision and control of employees orperson appointed by such authority for the supervision and control of employees or where no person is so appointed, the chief executive officer of the local authority;where no person is so appointed, the chief executive officer of the local authority;

(iii) in any other case, the person who are the authority which has the(iii) in any other case, the person who are the authority which has the ultimate control over the affairs of the establishment and where the said affairs areultimate control over the affairs of the establishment and where the said affairs are entrusted to any other person whether called a manager, managing director,entrusted to any other person whether called a manager, managing director, managing agent, or by any other name, such person;managing agent, or by any other name, such person;

(e) “establishment”(e) “establishment” means – means –(i) a factory;(i) a factory;(ii) a mine;(ii) a mine;(iii) a plantation;(iii) a plantation;(iv) an establishment wherein persons are employed for the exhibition of(iv) an establishment wherein persons are employed for the exhibition of

equestrian, acrobatics and other performances; orequestrian, acrobatics and other performances; or(v) an establishment to which the provisions of this Act have been declared(v) an establishment to which the provisions of this Act have been declared

under sub-section (4) of section 2 to be applicable;]under sub-section (4) of section 2 to be applicable;]

(f) “factory”(f) “factory” means a factory as defined in clause (m) of section 2 of the means a factory as defined in clause (m) of section 2 of the Factories Act, 1948 (63 of 1948);Factories Act, 1948 (63 of 1948);

(g) “Inspector”(g) “Inspector” means an Inspector appointed under section 14; means an Inspector appointed under section 14;

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(h) “maternity benefit”(h) “maternity benefit” means the payment refereed to in sub-section (1) of means the payment refereed to in sub-section (1) of section 5;section 5;

(i) “mine”(i) “mine” means a mine as defined in clause (j) of section 2 of the Mines means a mine as defined in clause (j) of section 2 of the Mines Act, 1952 (35 of 1952)Act, 1952 (35 of 1952)

(j) “miscarriage”(j) “miscarriage” means expulsion of the contents of a pregnant uterus at means expulsion of the contents of a pregnant uterus at any period prior to or during the twenty-sixth week of pregnancy but does notany period prior to or during the twenty-sixth week of pregnancy but does not include any miscarriage the causing of which ins punishable under the Indian Penalinclude any miscarriage the causing of which ins punishable under the Indian Penal Code (45 of 1860);Code (45 of 1860);

(k) “plantation”(k) “plantation” means a plantation as defined in clause (f) of section 2 of means a plantation as defined in clause (f) of section 2 of the Plantations Labour Act, 1951 (69 of 1951);the Plantations Labour Act, 1951 (69 of 1951);

(l) “prescribed”(l) “prescribed” means prescribed by rules made under this Act; means prescribed by rules made under this Act;

(m) “State Government”(m) “State Government” in relation to a Union territory, means the in relation to a Union territory, means the Administrator thereof;Administrator thereof;

(n) “wages”(n) “wages” means all remuneration paid or payable in cash to a woman, if means all remuneration paid or payable in cash to a woman, if the terms of the contract of employment, express or implied, were fulfilled andthe terms of the contract of employment, express or implied, were fulfilled and includes –includes –

(1) such cash allowances (including dearness allowance and house rent(1) such cash allowances (including dearness allowance and house rent allowance) as a woman is for the time being entitled to;allowance) as a woman is for the time being entitled to;

(2) incentive bonus; and(2) incentive bonus; and(3) the money value of the concessional supply of foodgrains and other(3) the money value of the concessional supply of foodgrains and other

articles,articles,

but does not include –but does not include –

(i) any bonus other than incentive bonus;(i) any bonus other than incentive bonus;(ii) overtime earnings and any deduction or payment made on account of(ii) overtime earnings and any deduction or payment made on account of

fines;fines;(iii) any contribution paid or payable by the employer to any pension fund or(iii) any contribution paid or payable by the employer to any pension fund or

provident fund or for the benefit of the woman under any law for the time being inprovident fund or for the benefit of the woman under any law for the time being in force; andforce; and

(iv) any gratuity payable on the termination of service;(iv) any gratuity payable on the termination of service;

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(o) “woman”(o) “woman” means a woman employed, whether directly or through any means a woman employed, whether directly or through any agency, for wages in any establishment.agency, for wages in any establishment.

4. Employment of, or work by, women prohibited during certain period.4. Employment of, or work by, women prohibited during certain period.

-- (1) No employer shall knowingly employ a woman in any establishment-- (1) No employer shall knowingly employ a woman in any establishment during the six weeks immediately following the day of her delivery or herduring the six weeks immediately following the day of her delivery or her miscarriage.miscarriage.

(2) No woman shall work in any establishment during the six weeks(2) No woman shall work in any establishment during the six weeks immediately following the day of her delivery of her miscarriage.immediately following the day of her delivery of her miscarriage.

(3) Without prejudice to the provisions of section 6, no pregnant woman(3) Without prejudice to the provisions of section 6, no pregnant woman shall, on a request being made by her in this behalf, be required by her employer toshall, on a request being made by her in this behalf, be required by her employer to do during the period specified in sub-section (4) any work which is of an arduousdo during the period specified in sub-section (4) any work which is of an arduous nature or which involves long hours of standing or which in any way is likely tonature 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 likelyinterfere with her pregnancy or the normal development of the foetus, or is likely to cause her miscarriage or otherwise to adversely affect her health.to cause her miscarriage or otherwise to adversely affect her health.

(4) The period referred to in sub-section (3) shall be –(4) The period referred to in sub-section (3) shall be –

(a) at the period of one month immediately preceding the period of six(a) at the period of one month immediately preceding the period of six weeks, before the date of her expected delivery;weeks, before the date of her expected delivery;

(b) any period during the said period of six weeks for which the pregnant(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.woman does not avail of leave of absence under section 6.

5. Right to payment of maternity benefit.5. Right to payment of maternity benefit. -- (1) Subject to the provisions -- (1) Subject to the provisions of this Act, every woman shall be entitled to, and her employer shall be liable for,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 thethe payment of maternity benefit at the rate of the average daily wage for the period of her actual absence immediately preceding and including the day of herperiod of her actual absence immediately preceding and including the day of her delivery and for the six weeks immediately following that day.delivery and for the six weeks immediately following that day.

Explanation.Explanation. – For the purpose of this sub-section, the average daily wage – For the purpose of this sub-section, the average daily wage means the average of the woman’s wages payable to her for the days on which shemeans the average of the woman’s wages payable to her for the days on which she has worked during the period of three calendar months immediately preceding thehas worked during the period of three calendar months immediately preceding the date from which she absents herself on account of maternity, or one rupee a day,date from which she absents herself on account of maternity, or one rupee a day, whichever is higher.whichever is higher.

(2) No woman shall be entitled to maternity benefit unless she has actually(2) No woman shall be entitled to maternity benefit unless she has actually worked in an establishment of the employer from whom she claims maternityworked in an establishment of the employer from whom she claims maternity

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benefit for a period of not less than one hundred and sixty days in the twelvebenefit for a period of not less than one hundred and sixty days in the twelve months immediately preceding the date of her expected delivery:months immediately preceding the date of her expected delivery:

Provided that the qualifying period of one hundred and sixty days aforesaidProvided that the qualifying period of one hundred and sixty days aforesaid shall not apply to a woman who has immigrated into the State of Assam and wasshall not apply to a woman who has immigrated into the State of Assam and was pregnant at the time of the immigration.pregnant at the time of the immigration.

Explanation:Explanation: - For the purpose of calculating under this sub-section the - For the purpose of calculating under this sub-section the days on which a woman has actually worked in the establishment, the days fordays on which a woman has actually worked in the establishment, the days for which she has been laid-off during the period of twelve months immediatelywhich she has been laid-off during the period of twelve months immediately preceding the date of her expected delivery shall be taken into account.preceding the date of her expected delivery shall be taken into account.

(3) The maximum period for which any woman shall be entitled to maternity(3) The maximum period for which any woman shall be entitled to maternity benefit shall be twelve weeks, that is to say, six weeks up to and including the daybenefit shall be twelve weeks, that is to say, six weeks up to and including the day of her delivery and six weeks immediately following that day:of her delivery and six weeks immediately following that day:

Provided that where a woman dies during this period, the maternityProvided 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: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 diesProvided further that where a woman, having been delivered of a child dies during her delivery or during the period of six weeks immediately following theduring her delivery or during the period of six weeks immediately following the date of her delivery, leaving behind in either case the child, the employer shall bedate of her delivery, leaving behind in either case the child, the employer shall be liable for the maternity benefit for the entire period of six weeks immediatelyliable for the maternity benefit for the entire period of six weeks immediately following the day of her delivery but if the child also dies during the said period,following the day of her delivery but if the child also dies during the said period, then for the days up to and including the day of the death of the child.then for the days up to and including the day of the death of the child.

5-A. Continuance of payment of maternity benefit in certain cases.5-A. Continuance of payment of maternity benefit in certain cases. – – Every woman entitled to the payment of maternity benefit under this Act shall,Every woman entitled to the payment of maternity benefit under this Act shall, notwithstanding the application of the Employees’ State Insurance Act, 1948 (34notwithstanding the application of the Employees’ State Insurance Act, 1948 (34 of 1948), to the factory or other establishment in which she is employed, continueof 1948), to the factory or other establishment in which she is employed, continue to be so entitled until she becomes qualified to claim maternity benefit under Sec.to be so entitled until she becomes qualified to claim maternity benefit under Sec. 50 of that Act.]50 of that Act.]

[5-B. Payment of maternity benefit in certain cases.[5-B. Payment of maternity benefit in certain cases. -- Every woman – -- Every woman –

(a) who is employed in a factory or other establishment to which the(a) who is employed in a factory or other establishment to which the provisions of the Employees’ State Insurance Act, 1948 (34 of 1948), apply;provisions of the Employees’ State Insurance Act, 1948 (34 of 1948), apply;

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(b) whose wages (excluding remuneration for overtime work) for a month(b) whose wages (excluding remuneration for overtime work) for a month exceed the amount specified in sub-clause (b) of clause (a) of section 2 of that Act;exceed the amount specified in sub-clause (b) of clause (a) of section 2 of that Act; andand

(c) who fulfils the conditions specified in sub-section (2) of section 5, shall(c) who fulfils the conditions specified in sub-section (2) of section 5, shall be entitled to the payment of maternity benefit under this Act].be entitled to the payment of maternity benefit under this Act].

6. Notice of claim for maternity benefit and payment thereof.6. Notice of claim for maternity benefit and payment thereof. -- (1) Any -- (1) Any woman employed in an establishment and entitled to maternity benefit under thewoman employed in an establishment and entitled to maternity benefit under the provisions of this Act may give notice in writing in such form as may beprovisions of this Act may give notice in writing in such form as may be prescribed, to her employer, stating that her maternity benefit and any otherprescribed, to her employer, stating that her maternity benefit and any other amount to which she may be entitled under this Act may be paid to her or to suchamount to which she may be entitled under this Act may be paid to her or to such person as she may nominate in the notice and that she will not work in anyperson as she may nominate in the notice and that she will not work in any establishment during the period for which she receives maternity benefit.establishment during the period for which she receives maternity benefit.

(2) In the case of a woman who is pregnant, such notice shall state the date(2) In the case of a woman who is pregnant, such notice shall state the date from which she will be absent from work, not being a date earlier than six weeksfrom which she will be absent from work, not being a date earlier than six weeks from the date of her expected delivery.from the date of her expected delivery.

(3) Any woman who has not given the notice when she was pregnant may(3) Any woman who has not given the notice when she was pregnant may give such notice as soon as possible after the delivery.give such notice as soon as possible after the delivery.

(4) On receipt of the notice, the employer shall permit such woman to absent(4) On receipt of the notice, the employer shall permit such woman to absent herself from the establishment until the expiry of six weeks after the day of herherself from the establishment until the expiry of six weeks after the day of her delivery.delivery.

(5) The amount of maternity benefit for the period preceding the date of her(5) The amount of maternity benefit for the period preceding the date of her expected delivery shall be paid in advance by the employer to the woman on theexpected delivery shall be paid in advance by the employer to the woman on the production of such proof as may be prescribed that the woman is pregnant, and theproduction of such proof as may be prescribed that the woman is pregnant, and the amount due for the subsequent period shall be paid by the employer to the womanamount due for the subsequent period shall be paid by the employer to the woman within forty-eight hours of production of such proof as may be prescribed that thewithin forty-eight hours of production of such proof as may be prescribed that the woman has been delivered of a child.woman has been delivered of a child.

(6) The failure to give notice under this section shall not disentitle a woman(6) The failure to give notice under this section shall not disentitle a woman to maternity benefit or any other amount under this Act if she is otherwise entitledto maternity benefit or any other amount under this Act if she is otherwise entitled to such benefit or amount and in any such case an Inspector may either of his ownto such benefit or amount and in any such case an Inspector may either of his own motion or on an application made to him by the woman, order the payment of suchmotion or on an application made to him by the woman, order the payment of such benefit or amount within such period as may be specified in the order.benefit or amount within such period as may be specified in the order.

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7. Payment or maternity benefit in case of death of a woman.7. Payment or maternity benefit in case of death of a woman. -- If a -- If a woman entitled to maternity benefit or any other amount under this Act, dieswoman entitled to maternity benefit or any other amount under this Act, dies before receiving such maternity benefit or amount, or where the employer is liablebefore receiving such maternity benefit or amount, or where the employer is liable for maternity benefit under the second proviso to sub-section (3) of section 5, thefor maternity benefit under the second proviso to sub-section (3) of section 5, the employer shall pay such benefit or amount to the person nominated by the womanemployer shall pay such benefit or amount to the person nominated by the woman in the notice given under section 6 and in case there is no such nominee, to herin the notice given under section 6 and in case there is no such nominee, to her legal representative.legal representative.

8. Payment of medical bonus.8. Payment of medical bonus. -- Every woman entitled to maternity benefit -- Every woman entitled to maternity benefit under this Act shall also be entitled to receive from her employer under this Act shall also be entitled to receive from her employer a medical bonusa medical bonus of two hundred fifty rupeesof two hundred fifty rupees, if no pre-natal confinement and post-natal care is, if no pre-natal confinement and post-natal care is provided for by the employer free of charge.provided for by the employer free of charge.

In the Maternity Benefit Act, 1961, for section 8, the following sectionIn the Maternity Benefit Act, 1961, for section 8, the following section shall be substituted, namely:shall be substituted, namely:——

“8. (1) Every woman entitled to maternity benefit under this Act shall“8. (1) Every woman entitled to maternity benefit under this Act shall also be entitled to receive from her employer also be entitled to receive from her employer a medical bonus of one thousanda medical bonus of one thousand rupeesrupees, if no pre-natal confinement and post-natal care is provided for by the, if no pre-natal confinement and post-natal care is provided for by the employer free of charge.employer free of charge.

(2) The Central Government may (2) The Central Government may from time to timefrom time to time, by notification, by notification in the Official Gazette, in the Official Gazette, increase the amount of medical bonusincrease the amount of medical bonus subject to the subject to the maximum of twenty thousand rupeesmaximum of twenty thousand rupees.”..”.

The proposed provisions will ensure payment of medical bonus onThe proposed provisions will ensure payment of medical bonus on comparatively higher rates than existing rates.comparatively higher rates than existing rates.

9. Leave for miscarriage.9. Leave for miscarriage. -- In case of miscarriage, a woman shall, on -- In case of miscarriage, a woman shall, on production of such proof as may be prescribed, be entitled to leave with wages atproduction of such proof as may be prescribed, be entitled to leave with wages at the rate of maternity benefit for a period of six weeks immediately following thethe rate of maternity benefit for a period of six weeks immediately following the day of her miscarriage.day of her miscarriage.

10. Leave for illness arising out of pregnancy, delivery, premature birth10. Leave for illness arising out of pregnancy, delivery, premature birth of child, or miscarriage.of child, or miscarriage. -- A woman suffering illness arising out of pregnancy, -- A woman suffering illness arising out of pregnancy, delivery, premature birth of child or miscarriage shall, on production of such proofdelivery, premature birth of child or miscarriage shall, on production of such proof as may be prescribed, be entitled in addition to the period of absence allowed toas may be prescribed, be entitled in addition to the period of absence allowed to

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her under section 6, or, as the case may be, under section 9, to leave with wages ather under section 6, or, as the case may be, under section 9, to leave with wages at the rate of maternity benefit for a the rate of maternity benefit for a maximum period of one monthmaximum period of one month..

11. Nursing breaks.11. Nursing breaks. -- Every woman delivered of a child who returns to -- Every woman delivered of a child who returns to duty after such delivery shall, in addition to the interval for rest allowed to her, beduty after such delivery shall, in addition to the interval for rest allowed to her, be allowed in the course of her daily work two breaks of the prescribed duration forallowed in the course of her daily work two breaks of the prescribed duration for nursing the child until the child attains the age of fifteen months.nursing the child until the child attains the age of fifteen months.

12. Dismissal during absence or pregnancy.12. Dismissal during absence or pregnancy. -- (1) Where a woman absents -- (1) Where a woman absents herself from work in accordance with the provisions of this Act, it shall beherself from work in accordance with the provisions of this Act, it shall be unlawful for her employer to discharge or dismiss her during or on account of suchunlawful for her employer to discharge or dismiss her during or on account of such absence or to give notice of discharge or dismissal on such a day that the noticeabsence or to give notice of discharge or dismissal on such a day that the notice will expire during such absence, or to vary to her disadvantage any of thewill expire during such absence, or to vary to her disadvantage any of the conditions of her service.conditions of her service.

(2) (a) The discharge or dismissal of a woman at any time during her(2) (a) The discharge or dismissal of a woman at any time during her pregnancy, if the woman but for such discharge of dismissal would have beenpregnancy, if the woman but for such discharge of dismissal would have been entitled to maternity benefit or medical bonus referred to in section 8, shall notentitled to maternity benefit or medical bonus referred to in section 8, shall not have the effect of depriving her of the maternity benefit or medical bonus:have the effect of depriving her of the maternity benefit or medical bonus:

Provided that where the dismissal is for any prescribed grossProvided that where the dismissal is for any prescribed gross misconduct the employer may, by order in writing communicated to themisconduct the employer may, by order in writing communicated to the woman, deprive her of the maternity benefit or medical bonus or both.woman, deprive her of the maternity benefit or medical bonus or both.

(b) Any woman deprived of maternity benefit or medical bonus or both may,(b) Any woman deprived of maternity benefit or medical bonus or both may, within sixty days from the date on which the order of such deprivation iswithin sixty days from the date on which the order of such deprivation is communicated to hercommunicated to her, appeal to such authority as may be prescribed, and the, appeal to such authority as may be prescribed, and the decision of that authoritydecision of that authority on such appeal, whether the woman should or should on such appeal, whether the woman should or should not be deprived of maternity benefits or medical bonus or both, not be deprived of maternity benefits or medical bonus or both, shall be finalshall be final..

(c) Nothing contained in this sub-section shall affect the provisions(c) Nothing contained in this sub-section shall affect the provisions contained in subsection (1).contained in subsection (1).

13. No deduction of wages in certain cases.13. No deduction of wages in certain cases. -- No deduction from the -- No deduction from the normal and usual daily wages of a woman entitled to maternity benefit under thenormal and usual daily wages of a woman entitled to maternity benefit under the provisions of this Act shall be made by reason only of –provisions of this Act shall be made by reason only of –

(a) the nature of work assigned to her by virtue of the provisions contained(a) the nature of work assigned to her by virtue of the provisions contained in subsection (3) of section 4 : orin subsection (3) of section 4 : or

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(b) breaks for nursing the child allowed to her under the provisions of(b) breaks for nursing the child allowed to her under the provisions of section 11.section 11.

14. Appointment of Inspectors.14. Appointment of Inspectors. – The appropriate Government may, by – The appropriate Government may, by notification in the Official Gazette, appoint such officers as it thinks fit to bynotification in the Official Gazette, appoint such officers as it thinks fit to by Inspectors for the purposes of this Act and Inspectors for the purposes of this Act and may define the local limits of themay define the local limits of the jurisdictionjurisdiction within which they shall exercise their function under this Act. within which they shall exercise their function under this Act.

15. Powers and duties of Inspectors.15. Powers and duties of Inspectors. -- An Inspector may, subject to such -- An Inspector may, subject to such restrictions or conditions as may be prescribed, exercise all or any of the followingrestrictions or conditions as may be prescribed, exercise all or any of the following powers, namely: -powers, namely: -

(a) enter at all reasonable times with such assistants, if any, being persons in(a) enter at all reasonable times with such assistants, if any, being persons in the service of the Government or any local or other public authority as he thinksthe service of the Government or any local or other public authority as he thinks fit, any premises or place where women are employed or work is given to them infit, any premises or place where women are employed or work is given to them in an establishment, for the purposes or examining any registers, records and noticesan establishment, for the purposes or examining any registers, records and notices required to be kept or exhibited by or under this Act and require their productionrequired to be kept or exhibited by or under this Act and require their production for inspection;for inspection;

(b) examine any person whom he finds in any premises or place and who, he(b) examine any person whom he finds in any premises or place and who, he has reasonable cause to believe, is employed in the establishment:has reasonable cause to believe, is employed in the establishment:

Provided that no person shall be compelled under this section to answer anyProvided that no person shall be compelled under this section to answer any question or give any evidence tending to incriminate himself:question or give any evidence tending to incriminate himself:

(c) require the employer to give information regarding the names and(c) require the employer to give information regarding the names and addresses of women employed, payments made to them, and applications oraddresses of women employed, payments made to them, and applications or notices received form them under this Act; andnotices received form them under this Act; and

(d) take copies of any registers and records or notices or any portions(d) take copies of any registers and records or notices or any portions thereof.thereof.

16. Inspectors to be public servants.16. Inspectors to be public servants. -- Every Inspector appointed under -- Every Inspector appointed under this Act shall be deemed to be a public servant within the meaning of section 21 ofthis Act shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860).the Indian Penal Code (45 of 1860).

17. Power of Inspector to direct payments to be made.17. Power of Inspector to direct payments to be made. -- (1) Any woman -- (1) Any woman claiming that maternity benefit or any other amount to which she is entitled underclaiming that maternity benefit or any other amount to which she is entitled under this Act and any person claiming that payment due under section 7 this Act and any person claiming that payment due under section 7 has beenhas been improperly withheld, may make a complaint to the inspectorimproperly withheld, may make a complaint to the inspector..

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(2) The Inspector may, (2) The Inspector may, of his own motion or on receipt of a complaintof his own motion or on receipt of a complaint referred to in subsection (1), referred to in subsection (1), make an enquiry or cause an inquirymake an enquiry or cause an inquiry to be made to be made and if satisfiedand if satisfied that payment has been that payment has been wrongfully withheldwrongfully withheld, , may direct themay direct the payment to be made in accordance with his orders.payment to be made in accordance with his orders.

(3) (3) Any person aggrieved by the decision of the InspectorAny person aggrieved by the decision of the Inspector under sub- under sub-section (2) section (2) may, within thirty daysmay, within thirty days from the date on which such decision is from the date on which such decision is communicated to such person, communicated to such person, appeal to the prescribed authority.appeal to the prescribed authority.

(4) (4) The decision of the prescribed authorityThe decision of the prescribed authority where an appeal has been where an appeal has been preferred to it under sub-section (3) preferred to it under sub-section (3) or of the Inspectoror of the Inspector where no such appeal has where no such appeal has been preferred, been preferred, shall be final.shall be final.

(5) (5) Any amount payableAny amount payable under these sections under these sections shall be recoverable as anshall be recoverable as an arrear of lane revenue.arrear of lane revenue.

18. Forfeiture of maternity benefit.18. Forfeiture of maternity benefit. -- If a woman works in any -- If a woman works in any establishment after she has been permitted by her employer to absent herself underestablishment after she has been permitted by her employer to absent herself under the provisions of section 6 for any period during such authorized absence, the provisions of section 6 for any period during such authorized absence, he shallhe shall forfeit her claim to the maternity benefit for such period.forfeit her claim to the maternity benefit for such period.

19. Abstracts of Act and rules thereunder to be exhibited.19. Abstracts of Act and rules thereunder to be exhibited. -- An abstract -- An abstract of the provisions of this Act and the rules made thereunder of the provisions of this Act and the rules made thereunder in the language orin the language or languages of the locality shall be exhibited in a conspicuous place by thelanguages of the locality shall be exhibited in a conspicuous place by the employeremployer in every part of the establishment in which women are employed. in every part of the establishment in which women are employed.

20. Registers, etc.20. Registers, etc. – Every employer – Every employer shall prepare and maintain suchshall prepare and maintain such registers, records and muster-rollsregisters, records and muster-rolls and in such manner as may be prescribed. and in such manner as may be prescribed.

24. Protection of action taken in good faith.24. Protection of action taken in good faith. -- -- No suit, prosecution orNo suit, prosecution or other legal proceeding shall lieother legal proceeding shall lie against any person for anything against any person for anything which is in goodwhich is in good faith done or intended to be done in pursuance of this Actfaith done or intended to be done in pursuance of this Act or of any rule or or of any rule or order made thereunder.order made thereunder.

27. Effect of laws and agreements inconsistent with this Act.27. Effect of laws and agreements inconsistent with this Act. -- (1) The -- (1) The provisions of this Act shall have effect notwithstanding anything inconsistentprovisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law or in the terms of any award, agreement ortherewith contained in any other law or in the terms of any award, agreement or contract of service, whether made before or after the coming into force of this Act:contract of service, whether made before or after the coming into force of this Act:

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Provided that where under any such award, agreement, contract ofProvided that where under any such award, agreement, contract of service or otherwise, a woman is entitled to benefits in respect of any matter whichservice or otherwise, a woman is entitled to benefits in respect of any matter which are are more favourable to hermore favourable to her than those to which she would be entitled under this than those to which she would be entitled under this Act, Act, the woman shall continue to be entitled to the more favourable benefits inthe woman shall continue to be entitled to the more favourable benefits in respect of that matterrespect of that matter, notwithstanding that she is entitled to receive benefit in, notwithstanding that she is entitled to receive benefit in respect of other matters under this Act.respect of other matters under this Act.

(2) Nothing contained in this Act (2) Nothing contained in this Act shall be construed to preclude a womanshall be construed to preclude a woman from entering into an agreement with her employer for granting her rights orfrom entering into an agreement with her employer for granting her rights or privileges in respect of any matter, which are more favourable to her than those toprivileges in respect of any matter, which are more favourable to her than those to which she would be entitled under this Act.which she would be entitled under this Act.

30. Repeal.30. Repeal. -- On the application of this Act. – -- On the application of this Act. –(i) to mines, the Mines Maternity Benefit Act, 1941 (19 of 1941); and(i) to mines, the Mines Maternity Benefit Act, 1941 (19 of 1941); and

Maternity Benefit Act, 1929 (Bom. Act VII of 1929), as in force in that territory,Maternity Benefit Act, 1929 (Bom. Act VII of 1929), as in force in that territory, shall stand repealed.shall stand repealed.

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THE PAYMENT OF BONUS ACT, 1965

INTRODUCTION

The practice of paying bonus in India appears to have originated during First World War when certain textile mills granted 10% of wages as war bonus to their workers in 1917.

In certain cases of industrial disputes demand for payment of bonus was also included.

In 1950, the Full Bench of the Labour Appellate evolved a formula for determination of bonus. A plea was made to raise that formula in 1959.

At the second and third meetings of the Eighteenth Session of Standing Labour Committee (G. O.I.) held in New Delhi in March/April 1960, it was agreed that a Commission be appointed to go into the question of bonus and evolve suitable norms.

A Tripartite Commission was set by the Government of India by their resolution No.WB-20(9)/61, dated 6th December, 1961 to consider in a comprehensive manner, the question of payment of bonus based on profits to employees employed in establishments and to make recommendations to the Government.

The Government of India accepted the recommendations of the Commission subject to certain modifications.

To implement these recommendations the Payment of Bonus Ordinance, 1965 was promulgated on 29th May, 1965.

To replace the said Ordinance the Payment of Bonus Bill was introduced in the Parliament.

ACT 21 OF 1965

The Payment of Bonus Bill having been passed by both the Houses of Parliament received the assent of the President on 25th September, 1965. It

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came on the Statute Book as THE PAYMENT OF BONUS ACT, 1965 (21 of 1965).

LIST OF AMENDING ACTS

1. The Insurance (Amendment) Act, 1968 (62 of 1968).

2. The Payment of Bonus (Amendment) Act, 1969 (8 of 1969).

3. The Central Labour Laws (Extension of Jammu And Kashmir) Act, 1970 (51 of 1970).

4. The Payment of Bonus (Amendment) Act, 1972 (68 of 1972).

5. The Payment of Bonus (Amendment) Act, 1973 (39 of 1973).

6. The Payment of Bonus (Second Amendment) Act, 1973 (55 of 1973).

7. The Payment of Bonus (Amendment) Act, 1974(42 of 1974).

8. The Payment of Bonus (Amendment) Act, 1976(23 of 1976).

9. The Payment of Bonus (Amendment) Act, 1977 (43 of 1977) [as amended by the Payment of Bonus (Amendment) Act, 1978 (48of 1978) and the Payment of Bonus (Amendment) Act, 1980 (5 of 1980)].

10. The Payment of Bonus (Second Amendment) Act, 1980 (66 of 1980).

11. The National Bank for Agriculture and Rural Development Act, 1981 (61 of 1981).

12. The Payment of Bonus (Amendment) Act, 1985 (30 of 1985).

13. The Payment of Bonus (Second Amendment) Act, 1985 (67of 1985).

14. The National Housing Bank Act, 1987 (53 of 1987).

15. The Small Industries Development Bank of India Act, 1989 (39 of 1989).

16. The Payment of Bonus (Amendment) Act, 1995 (34 of 1995).

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{An Act to provide for the payment of bonus to persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matters connected therewith.}

• Short title, extent and application.-(1) This Act may be called the Payment of Bonus Act, 1965.

• It extends to the whole of India [***].

(3). Save as otherwise provided in this Act, it shall apply to –

• every factory; and

• every other establishment in which twenty or more persons are employed on any day during an accounting year.

[Provided that the appropriate 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 with effect from; such accounting year as may be specified in the notification, to any establishment or class of establishment [including an establishment being a factory within the meaning of sub-clause (ii) of clause (m) of section 2 of the Factories Act, 1948 (63 of 1948)] employing such number of persons less than twenty as may be specified in the notification; so, however, that the number of persons so specified shall in no case be less than ten.]

An establishment to which this Act applies 1[***] shall continue to be governed by this Act notwithstanding that the number of person employed therein falls below twenty 2[or, as the case may be, the number specified in the notification issued under the proviso to sub-section (3)].

2 . Definition. - In this Act, unless the context otherwise requires,-

(1) “accounting year” means -

(i) in relation to a corporation, the year ending on the day on which the books and accounts of the corporation are to be closed and balanced.

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(ii) in relation to a company, the period in respect of which any profit and loss account of the company laid before it in annual general meeting is made up, whether that period is a year or not;

(iii) in any other case -

(a) the year commencing on the 1st day of April; or

(b) if the accounts of an establishment maintained by the employer thereof are closed and balanced on any day other than the 31st day of March, then, at the option of the employer, the year ending on the day on which its accounts are so closed and balanced:

Provided that an option once exercised by the employer under paragraph (b) of this sub-clause shall not again be exercised except with the previous permission in writing of the prescribed authority and upon such conditions as that authority may think fit;

(4) “allocable surplus” means-

(a) in relation to an employer, being a company 3[(other than a banking company)] which has not made the arrangements prescribed under the Income-tax Act for the declaration and payment within India of the dividends payable out of its profits in accordance with the provisions of section 194 of that Act, sixty-seven per cent of the available surplus in an accounting; year;

(b) in any other case, sixty percent of such available surplus;

(5) “appropriate Government” means-

(i) in relation to an establishment in respect of which the appropriate Government under the Industrial Disputes Act, 1947 (14 of 1947), is the Central Government, the Central Government;

(ii) in relation to any other establishment, the Government of the State in which that other establishment is situate;

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(6) “available surplus” means the available surplus computed under section 5;

• “award” means an interim or a final determination of any industrial dispute or of any question relating thereto by any Labour Court, Industrial Tribunal or National Tribunal constituted under the Industrial Disputes Act, 1947 (14 of 1947), or by any other authority constituted under any corresponding law relating to investigation and settlement of industrial disputes in force in a State and includes an arbitration award made under section 10A of that Act or under that law;

(12) “direct tax” means-

(a) any tax chargeable under-

(i) the Income-tax Act;

(ii) the Super Profits Tax Act, 1963 (14 of 1963);

(iii) the Companies (Profits) Surtax Act, 1964 (7 of 1964);

(iv) the agricultural income-tax law; and

(b) any other tax which, having regard to its nature or incidence, may by declared by the Central Government, by notification in the Official Gazette, to be a direct tax for the purposes of this Act;

(13) “employee” means any person (other than an apprentice) employed on a salary or wage not exceeding 1[three thousand and five hundred rupees] per mensem in any industry to do any skilled or unskilled manual, supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment be express or implied;

Amendment in Section 2 of the Act: It is proposed to make amendment in Section 2 clause 13 which defines “employee” and who can be covered under the Act. “employee” means any person (other than an apprentice) employed on a salary or wage not exceeding [three thousand and five hundred rupees] per mensem in any industry to do any skilled or unskilled manual, supervisory, managerial, administrative, technical or clerical work for hire or reward, whether

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the terms of employment be express or implied. In this the word “three thousand and five hundred rupees” is to be substituted by “ten thousand rupees”.

(14) “employer includes-

(i) in relation to an establishment which is a factory, the owner or occupier of the factory, including the agent of such owner or occupier, the legal representative of a deceased owner or occupier and where a person has been named as a manager of the factory under clause (f) of sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948), the person so named; and

(ii) in relation to any other establishment, the person who, or the authority which, has the ultimate control over the affairs of the establishment and where the said affairs are entrusted to a manager, managing director or managing agent, such manager, managing director or managing agent;

(15) “establishment in private sector” means any establishment other than an establishment in public sector;

(16) “establishment in public sector” means an establishment owned, controlled or managed by-

(a) a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956);

(b) a corporation in which not less than forty per cent of its capital is held (whether singly or taken together) by-

(i) the Government; or

(ii) the Reserve Bank of India; or

(iii) a corporation owned by the Government or the Reserve Bank of India;

(17) “factory” shall have the same meaning as in clause (m) of section 2 of the Factories Act, 1948 (63 of 1948);

(18) “gross profits” means the gross profits calculated under section 4;

(19) “Income-tax Act” means the Income-tax Act, 1961 (43 of 1961);

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(21) “salary or wage” means all remuneration (other than remuneration in respect of over-time work) capable of being expressed in terms of money, which would, if the terms of employment, express or implied, were fulfilled, be payable to an employee in respect of his employment or of work done in such employment and includes dearness allowance (that is to say, all cash payments, by whatever name called, paid to an employee on account of a rise in the cost of living), but does not include-

(i) any other allowance which the employee is for the time being entitled to;

(ii) the value of any house accommodation or supply of light, water, medical attendance or other amenity or of any service or of any concessional supply of food grains or other articles;

(iii) any traveling concession;

(iv) any bonus (including incentive, production and attendance bonus);

(v) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the employee under any law for the time being in force;

(vi) any retrenchment compensation or any gratuity or other retirement benefit payable to the employee or any ex gratia payment made to him;

(vii) any commission payable to the employee.

3. Establishments to include departments, undertakings and branches.—

Where an establishment consists of different department or undertakings or has branches, whether situated in the same place or in different places, all; such departments or undertakings or branches shall be treated as parts of the same establishment for the purpose of computation of bonus under this Act:

Provided that where for any accounting year a separate balance-sheet and profit and loss account are prepared and maintained in respect of any such department or undertaking or branch, then such department or undertaking or

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branch shall be treated as a separate establishment for the purpose of computation of bonus, under this Act for that year, unless such department or undertaking or branch was, immediately before the commencement of that accounting year treated as part of the establishment for the purpose of computation of bonus.

4. Computation of gross profits.—The gross profits derived by an employer from an establishment in respect of the accounting year shall—

(a) in the case of a banking company, be calculated in the manner specified in the First Schedule;

(b) in any other case, be calculated in the manner specified in the Second Schedule;]

5. Computation of available surplus.—The available surplus in respect of any accounting year shall be the gross profits for that year after deducting therefrom the sums referred to in section 6;

2[Provided that the available surplus in respect of the accounting year commencing on any day of 1968 and in respect of every subsequent accounting year shall be the aggregate of –

(a) the gross profits for that accounting year after deducting therefrom the sums referred to in section 6; and

(b) an amount equal to the difference between --

(i) the direct tax, calculated in accordance with the provisions of section 7, in respect of an amount equal to the gross profits of the employer for the immediately preceding accounting year; and

(ii) the direct tax, calculated in accordance with the provisions of section 7, in respect of an amount equal to the gross profits of the employer for such preceding accounting year after deducting therefrom the amount of bonus which the employer has paid or is liable to pay to his employees in accordance with the provisions of this Act for that year.]

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6. Sums deductible from gross profits.—The following sums shall be deducted from the gross profits as prior charges, namely:-

(a) any amount by way of depreciation admissible in accordance with the provisions of sub-section (1) of section 32 of the Income-tax Act, or in accordance with the provisions of the agricultural income-tax law, as the case may be:

Provided that where an employer has been paying bonus to his employees under a settlement or an award or agreement made before the 29th May, 1965, and subsisting on that date after deducting from the gross profits notional normal depreciation, then, the amount of depreciation to be deducted under this clause shall, at the option of such employer (such option to be exercised once and within one year from the date) continue to be such notional normal depreciation;

(b) any amount by way of 1[development rebate or investment allowance or development allowance] which the employer is entitled to deduct from his income under the income-tax Act;

(c) subject to the provisions of section 7, any direct tax which the employer is liable to pay for the accounting year in respect of his income, profits and gains during that year;

(d) such further sums as are specified in respect of the employer in the 2[Third Schedule].

7. Calculation of direct tax payable by the employer.

8. Eligibility for bonus.—Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year

9. Disqualification for bonus.—Notwithstanding anything contained in this Act, an employee shall be disqualified from receiving bonus under this Act, if he is dismissed from service for --

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(a) fraud; or

(b) riotous or violent behaviour while on the premises of the establishment; or

(c) theft, misappropriation or sabotage of any property of the establishment.

10. Payment of minimum bonus.—Subject to the other provisions of this Act, every employer shall be bound to pay to every employee in respect of the accounting year commencing on any day in the year 1979 and in respect of every subsequent accounting year, a minimum bonus which shall be 8.33 per cent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year:

Provided that where an employee has not completed fifteen years of age at the beginning of the accounting year, the provisions of this section shall have effecting relation to such employee as if for the words “one hundred rupees”, the words “sixty rupees” were substituted.

Amendment in Section 10 of the Act: Section 10 is known as “Payment of minimum bonus” and which provides details regarding minimum amount of payable bonus to eligible employees. As per the proposed amendment, subject to the other provisions of the Act, “every employer shall be bound to pay to every employee in respect of the accounting year commencing on any day in the year 2009 and in respect of every subsequent accounting year, a minimum bonus which shall be 11 per cent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year:

Provided that there an employee has not employed fifteen years of age at the beginning of the accounting year, the provision of this section shall have effect in relation to such employee as if for the words "one hundred rupees", the words "sixty rupees" were substituted.” Earlier the minimum bonus was equivalent to 8.33 percent of the salary or wage earned by the employee during the year.

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11. Payment of maximum bonus.—(1) Where in respect of any accounting year referred to in section 10, the allocable surplus exceeds the amount of minimum bonus payable to the employees under that section, the employer shall, in lieu of such minimum bonus, be bound to pay to every employee in respect of that accounting; year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of twenty per cent, of such salary or wage.

(2) In computing the allocable surplus under this section, the amount set on or the amount set off under the provisions of section 15 shall be taken into account in accordance with the provisions of that section.

12. Calculation of bonus with respect to certain employees.—Where the salary or wage of an employee exceeds 4[three thousand and five hundred rupees] per mensem, the bonus payable to such employee under section 10 or, as the case may be, under section 11, shall be calculated as if his salary or wage were [two thousand and five hundred rupees] per mensem.]

Amendment in Section 12 of the Act: Section 12 refers as “Calculation of bonus with respect to certain employees” under which earlier where the salary or wage of an employee exceeds [three thousand and five hundred rupees] per mensem, the bonus payable to such employee under section 10 or, as the case may be, under section 11, shall be calculated as if his salary or wage were [three thousand and five hundred rupees] per mensem.] But now it is proposed to be substitute word “three thousand and five hundred rupees” to “five thousand rupees”.

The amendment Bill is introduced to meet the high rate of inflation and provide support to the employees by changing definition of employees who will be eligible for coverage under the Payment of Bonus Act.

13. Proportionate reduction in bonus in certain cases . —Where an employee has not worked for all the working days in an accounting year, the minimum bonus of one hundred rupees or, as the case may be, of sixty rupees, if such bonus is higher than 8.33 per cent, of his salary or wage for the days he has worked in that accounting year, shall be proportionately reduced.

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14. Computation of number of working days.—For the purposes of section 13, an employee shall be deemed to have worked in an establishment in any accounting year also on the days on which--

(a) he has been laid off under an agreement or as permitted by standing orders under the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), or under the Industrial Disputes Act, 1947 (14 of 1947), or under any other law applicable to the establishment;

(b) he has been on leave with salary or wage;

(c) he has been absent due to temporary disablement caused by accident arising out of and in the course of his employment; and

(d) the employee has been on maternity leave with salary or wage, during the accounting year.

15. Set on and set off of allocable surplus.— (1) Where for any accounting year, the allocable surplus exceeds the amount of maximum bonus payable to the employees in the establishment under section 11, then, the excess shall, subject to a limit of twenty per cent. of the total salary or wage of the employees employed in the establishment in that accounting year, be carried forward for being set on in the succeeding accounting year and so on up to and inclusive of the fourth accounting year to be utilized for the purpose of payment of bonus in the manner illustrated in the Fourth Schedule.

(2) Where for any accounting year, there is no available surplus or the allocable surplus in respect of that year falls short of the amount of minimum bonus payable to the employees in the establishment under section 10, and there is no amount or sufficient amount carried forward and set on under sub-section (1) which could be utilized for the purpose of payment of the minimum bonus, then, such minimum amount or the deficiency, as the case may be, shall be carried forward for being set off in the succeeding accounting year and so on up to and inclusive of the fourth accounting year in the manner illustrated in the Fourth Schedule.

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(3) The principle of set on and set off as illustrated in the Fourth Schedule shall apply to all other cases not covered by sub section (1) or sub-section (2) for the purpose of payment of bonus under this Act.

(4) Where in any accounting year any amount has been carried forward and set on or set off under this section, then, in calculating bonus for the succeeding accounting year, the amount of set on or set off carried forward from the earliest accounting year shall first be taken into account.

16. Special provisions with respect to certain establishment

17. Adjustment of customary or interim bonus against bonus payable under the Act.—Whether in any accounting year --

(a) an employer has paid any puja bonus or other customary bonus to an employee; or

(b) an employer has paid a part of the bonus payable under this Act to an employee before the date on which such bonus becomes payable.

then, the employer shall be entitled to deduct the amount of bonus so paid from the amount of bonus payable by him to the employee under this Act in respect of that accounting year and the employee shall be entitled to receive only the balance.

18. Deduction of certain amounts from bonus payable under the Act. – Where in any accounting year, an employee is found guilty of misconduct causing financial loss to the employer, then, it shall be lawful for the employer to deduct the amount of loss from the amount of bonus payable by him to the employee under this Act in respect of that accounting year only and the employee shall be entitled to receive the balance, if any.

19. Time-limit for payment of bonus. – All amounts payable to an employee by way of bonus under this Act shall be paid in cash by his employer --

(a) where there is a dispute regarding payment of bonus pending before any authority under section 22, within a month from the date on which the

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award becomes enforceable or the settlement comes into operation, in respect of such dispute;

(b) in any other case, within a period of eight months from the close of the accounting year:

Provided that the appropriate Government or such authority as the appropriate Government may specify in this behalf may, upon an application made to it by the employer and for sufficient reasons, by order, extended the said period of eight months to such further period or periods as it thinks fit; so, however, that the total period so extended shall not in any case exceed two years.

21. Recovery of bonus due from an employer.- Where any money is due to an employee by way of bonus from his employer under a settlement or an award or agreement, the employee himself or any other person authorised by him in writing in this behalf, or in the case of the death of the employee, his assignee or heirs may, without prejudice to any other mode of recovery, make an application to the appropriate Government or such authority as the appropriate Government may specify in this behalf is satisfied that any money is so due, it shall issue a certificate for that amount to the Collector who shall proceed to recover the same in the same manner as an arrears of land revenue.

Provided that every such application shall be made within one year from the date on which the money became due to the employee from the employer.

Provided further that any such application may be entertained after the expiry of the said period of one year, if the appropriate Government is satisfied that the applicant had sufficient cause for not making the application within the said period.

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THE TRADE UNIONS ACT, 1926THE TRADE UNIONS ACT, 1926&&

THE TRADE UNIONS (AMENDMENT) ACT, 2001THE TRADE UNIONS (AMENDMENT) ACT, 2001

Trade UnionTrade UnionSection 2(h) of the Trade Unions Act, 1926 has defined a trade union as Section 2(h) of the Trade Unions Act, 1926 has defined a trade union as

“Any combination, whether temporary or permanent, formed primarily for“Any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers, orthe purpose of regulating the relations between workmen and employers, or between workmen and workmen, or between employers and employers, or forbetween workmen and workmen, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, andimposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more trade unions.”includes any federation of two or more trade unions.”

Then this definition talks about three relationships. They are relationshipThen this definition talks about three relationships. They are relationship between the: between the:

Workmen and workmen Workmen and workmen Workmen and employers Workmen and employers Employers and employers. Employers and employers.

Features of trade unions Features of trade unions It is an organisation formed by employees or workers. It is an organisation formed by employees or workers.

It is formed on a continuous basis. It is a permanent body and not a casual orIt is formed on a continuous basis. It is a permanent body and not a casual or temporary one. temporary one.

It is formed to protect and promote all kinds of interests –economic, political andIt is formed to protect and promote all kinds of interests –economic, political and social-of its members. The dominant interest with which a union is concerned is,social-of its members. The dominant interest with which a union is concerned is, however, economic. however, economic.

It includes federations of trade unions also. It includes federations of trade unions also.

It achieves its objectives through collective action and group effort It achieves its objectives through collective action and group effort Objectives of Trade Union Objectives of Trade Union

To improve the economic lot of employees by securing for them better wages. To improve the economic lot of employees by securing for them better wages. To secure better working conditions for the workers. To secure better working conditions for the workers. To secure bonus for the employees from the profit of the concern, To secure bonus for the employees from the profit of the concern, To resist schemes of the management which reduce employment, e.g.,To resist schemes of the management which reduce employment, e.g., rationalisation and automation. rationalisation and automation.

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To secure welfare of employees through group schemes which give benefit toTo secure welfare of employees through group schemes which give benefit to every employee. every employee. To protect the interests of employees by taking active participation in theTo protect the interests of employees by taking active participation in the management. management. To secure social welfare of the employees. To secure social welfare of the employees. To secure organisational stability, growth, and leadership. To secure organisational stability, growth, and leadership.

Functions of Trade UnionsFunctions of Trade UnionsAnother broad classification of the functions of unions may be as followsAnother broad classification of the functions of unions may be as follows

Intra-mural activitiesIntra-mural activities. These consist of those functions of the unions that lead to. These consist of those functions of the unions that lead to the betterment of employment conditions such as ensuring adequate wages andthe betterment of employment conditions such as ensuring adequate wages and salaries, etc. for which the methods adopted may be collective bargaining,salaries, etc. for which the methods adopted may be collective bargaining, negotiations, strikes, etc. negotiations, strikes, etc.

Extra-mural activitiesExtra-mural activities. These activities help the employees to maintain and. These activities help the employees to maintain and improve their efficiency or productivity, e.g., measures intended to foster a spirit ofimprove their efficiency or productivity, e.g., measures intended to foster a spirit of cooperation, promote friendly relations, and diffuse education among members andcooperation, promote friendly relations, and diffuse education among members and various other types of welfare measures. various other types of welfare measures.

Political activitiesPolitical activities. Modern trade unions also take up political activities to achieve. Modern trade unions also take up political activities to achieve their objectives. Such activities may be related to the formation of a political partytheir objectives. Such activities may be related to the formation of a political party or those reflecting an attempt to seek influence on public policy relating to mattersor those reflecting an attempt to seek influence on public policy relating to matters connected with the interests of working class. connected with the interests of working class.

Motivation to Join UnionsMotivation to Join Unions

Greater Bargaining PowerGreater Bargaining PowerMake their Voices HeardMake their Voices HeardMinimise DiscriminationMinimise DiscriminationSense of SecuritySense of SecuritySense of ParticipationSense of ParticipationSense of BelongingnessSense of Belongingness

Structure of Trade UnionsStructure of Trade Unions Plant level UnionsPlant level UnionsLocal Level federationsLocal Level federationsRegional level federationsRegional level federationsNational federationsNational federations

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Problems & weaknesses of Trade Unions Problems & weaknesses of Trade Unions Uneven GrowthUneven GrowthLimited MembershipLimited MembershipMultiplicity of UnionsMultiplicity of UnionsOutside LeadershipOutside LeadershipFinancial Problems (Check Off)Financial Problems (Check Off)

Indifferent Attitude of Workers.Indifferent Attitude of Workers. In India, a large number of workers have not joined any union. Moreover, allIn India, a large number of workers have not joined any union. Moreover, all

the members of the trade unions do not show interest in their affairs. Thethe members of the trade unions do not show interest in their affairs. The attendance at the general meetings of the unions is very low. Under suchattendance at the general meetings of the unions is very low. Under such circumstance, trade unionism cannot be expected to make much progress. circumstance, trade unionism cannot be expected to make much progress.

Suggestions for the development Unions Suggestions for the development Unions One Union in One IndustryOne Union in One IndustryPaid Union OfficialsPaid Union OfficialsDevelopment of Leadership from WithinDevelopment of Leadership from WithinRecognition of Trade UnionsRecognition of Trade Unions

CHAPTER ICHAPTER I•• Short title, extent and commencementShort title, extent and commencement

(1) This Act may be called the 3[***] Trade Unions Act, 1926.(1) This Act may be called the 3[***] Trade Unions Act, 1926.[(2) It extends to the whole of India[(2) It extends to the whole of India(3) It shall come into force on such date as the Central Government may by(3) It shall come into force on such date as the Central Government may by notification in the Official Gazette, appoint.notification in the Official Gazette, appoint.

2. Definitions2. Definitions

In this Act “In this Act “the appropriate Governmentthe appropriate Government” means, in relation to Trade” means, in relation to Trade Unions whose objects Unions whose objects are not confinedare not confined to one State, the Central to one State, the Central Government, and in relation to other Trade Unions, the State Government,Government, and in relation to other Trade Unions, the State Government, and], unless there is anything repugnant in the subject or context,----and], unless there is anything repugnant in the subject or context,----

(a) (a) ""executiveexecutive" means the body, by whatever name called, to which the" means the body, by whatever name called, to which the management of the affairsmanagement of the affairs of a Trade Union is entrusted; of a Trade Union is entrusted;

(b) “(b) “office-beareroffice-bearer", in the case of a Trade Union, ", in the case of a Trade Union, includes any member ofincludes any member of the executive thereofthe executive thereof, but , but does notdoes not include an include an auditorauditor;;

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(c) "(c) "prescribedprescribed" means prescribed by regulations made under this Act;" means prescribed by regulations made under this Act;

(d) "(d) "registered officeregistered office" means that office of a Trade Union which is" means that office of a Trade Union which is registered under this Act as the registered under this Act as the head officehead office thereof; thereof;

(e) "(e) "registered Trade Unionregistered Trade Union" means a Trade Union registered under this" means a Trade Union registered under this Act;Act;

(f) "(f) "RegistrarRegistrar" means" means --------

(i) a Registrar of Trade Unions appointed by the (i) a Registrar of Trade Unions appointed by the appropriate Governmentappropriate Government under under section 3section 3, and , and includesincludes any Additional or Deputy Registrar of Trade Unions; any Additional or Deputy Registrar of Trade Unions; andand

(ii) in relation to any Trade Union, the Registrar appointed for the (ii) in relation to any Trade Union, the Registrar appointed for the StateState in in which the which the head or registered officehead or registered office, as the case may be, of the Trade Union is, as the case may be, of the Trade Union is situated ;situated ;

(g) "(g) "trade disputetrade dispute" means any dispute between employers and workmen or" means any dispute between employers and workmen or between workmen and workmen, or between employers and employers between workmen and workmen, or between employers and employers which iswhich is connected with the employment or non-employment, or the terms ofconnected with the employment or non-employment, or the terms of employment or the conditions of labouremployment or the conditions of labour, of any person, and "workmen" means, of any person, and "workmen" means all persons employed in trade or industryall persons employed in trade or industry whether or notwhether or not in the employment of in the employment of the employer with whom the the employer with whom the trade dispute arisestrade dispute arises; and; and

(h)"(h)"Trade UnionTrade Union" means any " means any combination, whether temporary orcombination, whether temporary or permanentpermanent, formed primarily for the purpose of , formed primarily for the purpose of regulating the relationsregulating the relations between between workmen and employers or between workmen and workmen, or betweenworkmen and employers or between workmen and workmen, or between employers and employers, or for employers and employers, or for imposing restrictive conditions on the conductimposing restrictive conditions on the conduct of any trade or businessof any trade or business, and includes any , and includes any federation of two or more Tradefederation of two or more Trade UnionsUnions::

Provided that this Act shall not affect—Provided that this Act shall not affect—

(i) any (i) any agreement between partnersagreement between partners as to their own business; as to their own business;

(ii) any agreement between an employer and those employed by him as to(ii) any agreement between an employer and those employed by him as to such employment; orsuch employment; or

(iii) any agreement in consideration of the sale of the good-will of a(iii) any agreement in consideration of the sale of the good-will of a

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business or of instruction in any profession, trade or handicraft.business or of instruction in any profession, trade or handicraft.

CHAPTER IICHAPTER IIREGISTRATION OF TRADE UNIONSREGISTRATION OF TRADE UNIONS

3. Appointment of Registrars3. Appointment of Registrars(1) The (1) The appropriate Governmentappropriate Government shall appoint a person to be the Registrar shall appoint a person to be the Registrar

of Trade Unions for [of Trade Unions for [each Stateeach State].].

(2) The appropriate Government (2) The appropriate Government may appointmay appoint as many Additional andas many Additional and Deputy RegistrarsDeputy Registrars of Trade Unions as it of Trade Unions as it thinks fitthinks fit for the purpose of for the purpose of exercisingexercising and dischargingand discharging, under the , under the superintendence and directionsuperintendence and direction of the Registrar, such of the Registrar, such powers and functionspowers and functions of the Registrar under this Act as it may, of the Registrar under this Act as it may, by orderby order, specify, specify and define the and define the local limitslocal limits within whichwithin which any such Additional or Deputy Registrar any such Additional or Deputy Registrar shall exercise and dischargeshall exercise and discharge the powers and functions the powers and functions so specifiedso specified..

(3) Subject to the provisions of any order under sub-section (2), where an(3) Subject to the provisions of any order under sub-section (2), where an Additional or Deputy Registrar exercises and discharges the powers and functionsAdditional or Deputy Registrar exercises and discharges the powers and functions of a Registrar of a Registrar in an area within which the registered office of a Trade Union isin an area within which the registered office of a Trade Union is situatedsituated, the Additional or Deputy Registrar , the Additional or Deputy Registrar shall be deemed to be the Registrarshall be deemed to be the Registrar in relation to the Trade Union for the purposes of this Act.in relation to the Trade Union for the purposes of this Act.

4. Mode of registration4. Mode of registration

(1) Any (1) Any seven or more membersseven or more members of a Trade Union of a Trade Union maymay, by , by subscribingsubscribing their namestheir names to the rules of the Trade Union and by to the rules of the Trade Union and by otherwise complyingotherwise complying with the with the provisions of this Act with respect to registration, provisions of this Act with respect to registration, apply for registrationapply for registration of the of the Trade Union under this Act.Trade Union under this Act.

''Provided that ''Provided that no Trade Unionno Trade Union of workmen shall be registered of workmen shall be registered unless atunless at least ten per cent or one hundred of the workmen, whichever is lessleast ten per cent or one hundred of the workmen, whichever is less , engaged, engaged or employed in the establishment or industry with which it is connected or employed in the establishment or industry with which it is connected are theare the membersmembers of such Trade Union on the date of making of application for of such Trade Union on the date of making of application for registration:registration:

Provided further that Provided further that no Trade Unionno Trade Union of workmen shall be registered of workmen shall be registered unlessunless it has on the date of making application not less than seven persons asit has on the date of making application not less than seven persons as its membersits members, who are workmen engaged or employed in the establishment or, who are workmen engaged or employed in the establishment or industry with which it is connected .'’industry with which it is connected .'’

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(2) Where an application has been made under sub-section (1) for the registration(2) Where an application has been made under sub-section (1) for the registration of a Trade Union, of a Trade Union, such application shall not be deemed to have become invalidsuch application shall not be deemed to have become invalid merely by reasonmerely by reason of the factof the fact that, at any time that, at any time after theafter the date of the application, date of the application, but beforebut before the registration of the Trade Union, the registration of the Trade Union, some of the applicants, but notsome of the applicants, but not exceeding half of the total number of persons who made the application, haveexceeding half of the total number of persons who made the application, have ceased to be membersceased to be members of the Trade Union or have given of the Trade Union or have given notice in writingnotice in writing to the to the Registrar Registrar dissociating themselvesdissociating themselves from the application. from the application.

5. Application for registration5. Application for registration

(1) Every application for registration of a Trade Union shall be made to the(1) Every application for registration of a Trade Union shall be made to the Registrar, and shall be accompanied by a copy of the rules of the Trade Union andRegistrar, and shall be accompanied by a copy of the rules of the Trade Union and a statement of the following particulars, namely: —a statement of the following particulars, namely: —

(a) the names, occupations and addresses of the members making the(a) the names, occupations and addresses of the members making the application;application;

(aa) in the case of a Trade Union of workmen, the names, occupations and(aa) in the case of a Trade Union of workmen, the names, occupations and addresses of the place of work of the members of the Trade Union making theaddresses of the place of work of the members of the Trade Union making the application;''.application;''.

(b) the name of the Trade Union and the address of its head office; and(b) the name of the Trade Union and the address of its head office; and(c) the titles, names, ages, addresses and occupations of the office- bearers of(c) the titles, names, ages, addresses and occupations of the office- bearers of

the Trade Union.the Trade Union.

(2) Where a Trade Union has been in existence for more than one year(2) Where a Trade Union has been in existence for more than one year before the making of an application for its registration, there shall be delivered tobefore the making of an application for its registration, there shall be delivered to the Registrar, together with the application, a general statement of the assets andthe Registrar, together with the application, a general statement of the assets and liabilities of the Trade Union prepared in such form and containing such particularsliabilities of the Trade Union prepared in such form and containing such particulars as may be prescribed.as may be prescribed.

6. Provisions to be contained in the rules of a Trade Union6. Provisions to be contained in the rules of a Trade Union

A Trade Union shall not be entitled to registration under this Act, unless theA Trade Union shall not be entitled to registration under this Act, unless the executive thereof is constituted in accordance with the provisions of this Act, andexecutive thereof is constituted in accordance with the provisions of this Act, and the rules thereof provide for the following matters, namely: —the rules thereof provide for the following matters, namely: —

(a) the name of the Trade Union;(a) the name of the Trade Union;(b) the whole of the objects for which the Trade Union has been established;(b) the whole of the objects for which the Trade Union has been established;(c) the whole of the purposes for which the general funds of the Trade Union(c) the whole of the purposes for which the general funds of the Trade Union

shall be applicable, all of which purposes shall be purposes to which such funds areshall be applicable, all of which purposes shall be purposes to which such funds are lawfully applicable under this Act;lawfully applicable under this Act;

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(d) the maintenance of a list of the members of the Trade Union and(d) the maintenance of a list of the members of the Trade Union and adequate facilities for the inspection thereof by the office-bearers and members ofadequate facilities for the inspection thereof by the office-bearers and members of the Trade Union;the Trade Union;

(e) the admission of ordinary members who shall be persons actually(e) the admission of ordinary members who shall be persons actually engaged or employed in an industry with which the Trade Union is connected, andengaged or employed in an industry with which the Trade Union is connected, and also the admission of the number of honorary or temporary members as office-also the admission of the number of honorary or temporary members as office-bearers required under section 22 to form the executive of the Trade Union;bearers required under section 22 to form the executive of the Trade Union;

(ee) the payment of a minimum subscription by members of the Trade Union(ee) the payment of a minimum subscription by members of the Trade Union which shall not be less than-which shall not be less than-

(i) one rupee per annum for rural workers;(i) one rupee per annum for rural workers;(ii) three rupees per annum for workers in other unorganised sectors; and(ii) three rupees per annum for workers in other unorganised sectors; and(iii) twelve rupees per annum for workers in any other case;'';(iii) twelve rupees per annum for workers in any other case;'';

(f) the conditions under which any member shall be entitled to any benefit(f) the conditions under which any member shall be entitled to any benefit assured by the rules and under which any fine or forfeiture may be imposed on theassured by the rules and under which any fine or forfeiture may be imposed on the members;members;

(g) the manner in which the rules shall be amended, varied or rescinded;(g) the manner in which the rules shall be amended, varied or rescinded;(h) the manner in which the members of the executive and the other office-(h) the manner in which the members of the executive and the other office-

bearers of the Trade Union shall be bearers of the Trade Union shall be elected*elected* and removed; and removed;(hh) the duration of period being not more than three years, for which the(hh) the duration of period being not more than three years, for which the

members of the executive and other office-bearers of the Trade Union shall bemembers of the executive and other office-bearers of the Trade Union shall be elected;''.elected;''.

(i) the safe custody of the funds of the Trade Union, an annual audit, in such(i) the safe custody of the funds of the Trade Union, an annual audit, in such manner as may be prescribed, of the accounts thereof, and adequate facilities formanner as may be prescribed, of the accounts thereof, and adequate facilities for the inspection of the account books by the office- bearers and members of thethe inspection of the account books by the office- bearers and members of the Trade Union; andTrade Union; and

(j) the manner in which the Trade Union may be dissolved.(j) the manner in which the Trade Union may be dissolved.

7. Power to call for further particulars and to require alteration of name7. Power to call for further particulars and to require alteration of name

(1) The Registrar may call for further information for the purpose of(1) The Registrar may call for further information for the purpose of satisfying himself that any application complies with the provisions of section 5, orsatisfying himself that any application complies with the provisions of section 5, or that the Trade Union is entitled to registration under section 6, and may refuse tothat the Trade Union is entitled to registration under section 6, and may refuse to register the Trade Union until such information is supplied.register the Trade Union until such information is supplied.

(2) If the name under which a Trade Union is proposed to be registered is(2) If the name under which a Trade Union is proposed to be registered is identical with that by which any other existing Trade Union has been registered or,identical with that by which any other existing Trade Union has been registered or, in the opinion of the Registrar, so nearly resembles such name as to be likely toin the opinion of the Registrar, so nearly resembles such name as to be likely to

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deceive the public or the members of either Trade Union, the Registrar shalldeceive the public or the members of either Trade Union, the Registrar shall requirerequirethe persons applying for registration to alter the name of the Trade Union stated inthe persons applying for registration to alter the name of the Trade Union stated in the application, and shall refuse to register the Union until such alteration has beenthe application, and shall refuse to register the Union until such alteration has been donedone

8. Registration8. RegistrationThe Registrar, on being satisfied that the Trade Union has complied with allThe Registrar, on being satisfied that the Trade Union has complied with all

the requirements of this Act in regard to registration, shall register the Trade Unionthe requirements of this Act in regard to registration, shall register the Trade Union by entering in a register, to be maintained in such form as may be prescribed, theby entering in a register, to be maintained in such form as may be prescribed, the particulars relating to the Trade Union contained in the statement accompanyingparticulars relating to the Trade Union contained in the statement accompanying the application for registration.the application for registration.

9. Certificate of registration9. Certificate of registrationThe Registrar, on registering a Trade Union under section 8, shall issue aThe Registrar, on registering a Trade Union under section 8, shall issue a

certificate of registration in the prescribed form, which shall be conclusivecertificate of registration in the prescribed form, which shall be conclusive evidence that the Trade Union has been duly registered under this Act.evidence that the Trade Union has been duly registered under this Act.

**9A.9A. Minimum requirement about membership of a Trade UnionMinimum requirement about membership of a Trade Union .-A.-A registered Trade Union of workmen shall at all times continue to have not less thanregistered Trade Union of workmen shall at all times continue to have not less than ten per cent. or one hundred of the workmen, whichever is less, subject to aten per cent. or one hundred of the workmen, whichever is less, subject to a minimum of seven, engaged or employed in an establishment or industry withminimum of seven, engaged or employed in an establishment or industry with which it is connected, as its members.''which it is connected, as its members.''

10. Cancellation of registration10. Cancellation of registrationA certificate of registration of a Trade Union may be withdrawn or cancelledA certificate of registration of a Trade Union may be withdrawn or cancelled

by the Registrar—by the Registrar—

(a) on the application of the Trade Union to be verified in such manner as(a) on the application of the Trade Union to be verified in such manner as may be prescribed, ormay be prescribed, or

(b) if the Registrar is satisfied that the certificate has been obtained by fraud(b) if the Registrar is satisfied that the certificate has been obtained by fraud or mistake, or that the Trade Union has ceased to exist or has willfully and afteror mistake, or that the Trade Union has ceased to exist or has willfully and after notice from the Registrar contravened any provision of this Act or allowed any rulenotice from the Registrar contravened any provision of this Act or allowed any rule to continue in force which is inconsistent with any such provision, or has rescindedto continue in force which is inconsistent with any such provision, or has rescinded any rule providing for any matter provision for which is required byany rule providing for any matter provision for which is required by

section 6:section 6:

PROVIDED that not less than two months' previous notice in writingPROVIDED that not less than two months' previous notice in writing specifying the ground on which it is proposed to withdraw or cancel the certificatespecifying the ground on which it is proposed to withdraw or cancel the certificate

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shall be given by the Registrar to the Trade Union before the certificate isshall be given by the Registrar to the Trade Union before the certificate is withdrawn or cancelled otherwise than on the application of the Trade Union.withdrawn or cancelled otherwise than on the application of the Trade Union.

*(c)*(c) if the Registrar is satisfied that a registered Trade Union of workmen if the Registrar is satisfied that a registered Trade Union of workmen ceases to have the requisite number of members.ceases to have the requisite number of members.

12. Registered office12. Registered office

All Union communications may be addressed to its registered office. NoticeAll Union communications may be addressed to its registered office. Notice of any change in the address of the head office shall be given within fourteen daysof any change in the address of the head office shall be given within fourteen days of such change to the Registrar in writing, and the changed address shall beof such change to the Registrar in writing, and the changed address shall be recorded in the register referred to in section 8.recorded in the register referred to in section 8.

13. Incorporation of registered Trade Unions13. Incorporation of registered Trade UnionsEvery registered Trade Union shall be a body corporate by the name underEvery registered Trade Union shall be a body corporate by the name under

which it is registered, and shall have perpetual succession and a common seal withwhich it is registered, and shall have perpetual succession and a common seal with power to acquire and hold both movable and immovable property and to contract,power to acquire and hold both movable and immovable property and to contract, and shall by the said name sue and be sued.and shall by the said name sue and be sued.

14. Certain Acts not to apply to registered Trade Unions14. Certain Acts not to apply to registered Trade UnionsThe following Acts, namely—The following Acts, namely—(a) The Societies Registration Act, 1860 (21 of 1860)(a) The Societies Registration Act, 1860 (21 of 1860)(b) The Co-operative Societies Act, 1912 (2 of 1912)(b) The Co-operative Societies Act, 1912 (2 of 1912) (c) The Companies Act, 1956 (1 of 1956) (c) The Companies Act, 1956 (1 of 1956)

shall not apply to any registered Trade Union, and the registration of anyshall not apply to any registered Trade Union, and the registration of any such Trade Union under any such Act shall be void.such Trade Union under any such Act shall be void.

23. Change of name23. Change of nameAny registered Trade Union may, with the consent of not less than two-Any registered Trade Union may, with the consent of not less than two-

thirds of the total number of its members and subject to the provisions of sectionthirds of the total number of its members and subject to the provisions of section 25, change its name.25, change its name.

24. Amalgamation of Trade Unions24. Amalgamation of Trade UnionsAny two or more registered Trade Unions may become amalgamatedAny two or more registered Trade Unions may become amalgamated

together as one Trade Union with or without dissolution or division of the funds oftogether as one Trade Union with or without dissolution or division of the funds of such Trade Unions or either or any of them, provided that the votes of at least one-such Trade Unions or either or any of them, provided that the votes of at least one- halt of the members of each or every such trade Union entitled to vote arehalt of the members of each or every such trade Union entitled to vote are recorded, and that at least sixty percent. of the votes recorded are in favour of therecorded, and that at least sixty percent. of the votes recorded are in favour of the proposal.proposal.

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25. Notice of change of name or amalgamation25. Notice of change of name or amalgamation(1) Notice in writing of every change of name of every amalgamation,(1) Notice in writing of every change of name of every amalgamation,

signed, in the case of a change of name, by the Secretary and by seven members ofsigned, in the case of a change of name, by the Secretary and by seven members of the Trade Union changing its name, and, in the case of an amalgamation, by thethe Trade Union changing its name, and, in the case of an amalgamation, by the Secretary and by seven members of each and every Trade Union which is a partySecretary and by seven members of each and every Trade Union which is a party thereto, shall be sent to the Registrar, and where the head office of thethereto, shall be sent to the Registrar, and where the head office of the amalgamated Trade Union is situated in a different State, to the Registrar of suchamalgamated Trade Union is situated in a different State, to the Registrar of such State.State.

(2) If the proposed name is identical with that by which any other existing(2) If the proposed name is identical with that by which any other existing Trade Union has been registered or, in the opinion of the Registrar, so nearlyTrade Union has been registered or, in the opinion of the Registrar, so nearly resembles such name as to be likely to deceive the public or the members of eitherresembles such name as to be likely to deceive the public or the members of either Trade Union, the Registrar shall refuse to register the change of name.Trade Union, the Registrar shall refuse to register the change of name.

(3) Save as provided in sub-section (2), the Registrar shall, if he is satisfied(3) Save as provided in sub-section (2), the Registrar shall, if he is satisfied that the provisions of this Act in respect of change of name have been compliedthat the provisions of this Act in respect of change of name have been complied with, register the change of name in the register referred to in section 8, and thewith, register the change of name in the register referred to in section 8, and the change of name shall have effect from the date of such registration.change of name shall have effect from the date of such registration.

(4) The Registrar of the State in which the head office of the amalgamated(4) The Registrar of the State in which the head office of the amalgamated Trade Union is situated shall, if he is satisfied that the provisions of this Act inTrade Union is situated shall, if he is satisfied that the provisions of this Act in respect of amalgamation have been complied with and that the Trade Unionrespect of amalgamation have been complied with and that the Trade Union formed thereby is entitled to registration under section 6, register the Trade Unionformed thereby is entitled to registration under section 6, register the Trade Union in the manner provided in section 8, and the amalgamation shall have effect fromin the manner provided in section 8, and the amalgamation shall have effect from the date of such registration.the date of such registration.

26. Effects of change of name and of amalgamation26. Effects of change of name and of amalgamation

(1) The change in the name of a registered Trade Union shall not a affect any(1) The change in the name of a registered Trade Union shall not a affect any rights or obligations of the Trade Union or render defective any legal proceedingrights or obligations of the Trade Union or render defective any legal proceeding by or against the Trade Union, and any legal proceeding which might have beenby or against the Trade Union, and any legal proceeding which might have been continued or commenced by or against it by its former name may be continued orcontinued or commenced by or against it by its former name may be continued or commenced by or against it by its new name.commenced by or against it by its new name.

(2) An amalgamation of two or more registered Trade Unions shall not(2) An amalgamation of two or more registered Trade Unions shall not prejudice any right of any of such Trade Unions or any right of a creditor of any ofprejudice any right of any of such Trade Unions or any right of a creditor of any of them.them.

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CHAPTER IIICHAPTER IIIRIGHTS AND LIABILITIES OF REGISTERED TRADE UNIONSRIGHTS AND LIABILITIES OF REGISTERED TRADE UNIONS

5. Objects on which general funds may be spent5. Objects on which general funds may be spent

The general funds of a registered Trade Union shall not be spent on anyThe general funds of a registered Trade Union shall not be spent on any other objects than the following, namely—other objects than the following, namely—

(a) the payment of salaries, allowances and expenses to office bearers of the(a) the payment of salaries, allowances and expenses to office bearers of the Trade Union;Trade Union;

(b) the payment of expenses for the administration of the Trade Union,(b) the payment of expenses for the administration of the Trade Union, including audit of the accounts of the general funds of the Trade Union;including audit of the accounts of the general funds of the Trade Union;

(c) the prosecution or defence of any legal proceeding to which the Trade(c) the prosecution or defence of any legal proceeding to which the Trade Union or any member thereof is a party, when such prosecution or defence isUnion or any member thereof is a party, when such prosecution or defence is undertaken for the purpose of securing or protecting any rights of the Trade Unionundertaken for the purpose of securing or protecting any rights of the Trade Union as such or any rights arising out of the relations of any member with his employeras such or any rights arising out of the relations of any member with his employer or with a person whom the member employs;or with a person whom the member employs;

(d) the conduct of trade disputes on behalf of the Trade Union or any(d) the conduct of trade disputes on behalf of the Trade Union or any member thereof;member thereof;

(e) the compensation of members for loss arising out of trade disputes;(e) the compensation of members for loss arising out of trade disputes;(f) allowances to members or their dependants on account of death, old age,(f) allowances to members or their dependants on account of death, old age,

sickness, accidents or unemployment of such members;sickness, accidents or unemployment of such members;(g) the issue of, or the undertaking of liability under, policies of assurance on(g) the issue of, or the undertaking of liability under, policies of assurance on

the lives of members, or under policies insuring members against sickness,the lives of members, or under policies insuring members against sickness, accident or unemployment;accident or unemployment;

(h) the provision of educational, social or religious benefits for members(h) the provision of educational, social or religious benefits for members (including the payment of the expenses of funeral or religious ceremonies for(including the payment of the expenses of funeral or religious ceremonies for deceased members) or for the dependants of members;deceased members) or for the dependants of members;

(i) the upkeep of a periodical published mainly for the purpose of discussing(i) the upkeep of a periodical published mainly for the purpose of discussing questions affecting employers or workmen as such;questions affecting employers or workmen as such;

(j) the payment, in furtherance of any of the objects on which the general(j) the payment, in furtherance of any of the objects on which the general funds of the Trade Union may be spent, of contributions to any cause intended tofunds of the Trade Union may be spent, of contributions to any cause intended to benefit workmen in general, provided that the expenditure in respect of suchbenefit workmen in general, provided that the expenditure in respect of such contributions in any financial year shall not at any time during that year be incontributions in any financial year shall not at any time during that year be in excess of one- fourth of the combined total of the gross income which has up toexcess of one- fourth of the combined total of the gross income which has up to that time accrued to the general funds of the Trade Union during that year and ofthat time accrued to the general funds of the Trade Union during that year and of the balance at the credit of those funds at the commencement of that year; andthe balance at the credit of those funds at the commencement of that year; and

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16. Constitution of a separate fund for political purposes16. Constitution of a separate fund for political purposes(1) A registered Trade Union may constitute a separate fund, from(1) A registered Trade Union may constitute a separate fund, from

contributions separately levied for or made to that fund, from which payments maycontributions separately levied for or made to that fund, from which payments may be made, for the promotion of the civic and political interests of its members, inbe made, for the promotion of the civic and political interests of its members, in furtherance of any of the objects specified in sub-section (2).furtherance of any of the objects specified in sub-section (2).

(2) The objects referred to in sub-section (1) are:(2) The objects referred to in sub-section (1) are:

(a) the payment of any expenses incurred, either directly or indirectly, by a(a) the payment of any expenses incurred, either directly or indirectly, by a candidate or prospective candidate for election as a member of any legislative bodycandidate or prospective candidate for election as a member of any legislative body constituted under the Constitution or of any local authority, before, during, or afterconstituted under the Constitution or of any local authority, before, during, or after the election in connection with his candidature or election; orthe election in connection with his candidature or election; or

(b) the holding of any meeting or the distribution of any literature or(b) the holding of any meeting or the distribution of any literature or documents in support of any such candidate or prospective candidate; ordocuments in support of any such candidate or prospective candidate; or

(c) the maintenance of any person who is a member of any legislative body(c) the maintenance of any person who is a member of any legislative body constituted under the Constitution or of any local authority; orconstituted under the Constitution or of any local authority; or

(d) the registration of electors or the election of a candidate for any(d) the registration of electors or the election of a candidate for any legislative body constituted under the Constitution or for any local authority; orlegislative body constituted under the Constitution or for any local authority; or

(e) the holding of political meetings of any kind, or the distribution of(e) the holding of political meetings of any kind, or the distribution of political literature or political documents of any kind.political literature or political documents of any kind.

(3) No member shall be compelled to contribute to the fund constituted under(3) No member shall be compelled to contribute to the fund constituted under subsection (1); and a member who does not contribute to the said fund shall not besubsection (1); and a member who does not contribute to the said fund shall not be excluded from any benefits of the Trade Union, or placed in any respect eitherexcluded from any benefits of the Trade Union, or placed in any respect either directly or indirectly under any disability or at any disadvantage as compared withdirectly or indirectly under any disability or at any disadvantage as compared with other members of the Trade Union (except in relation to the control or managementother members of the Trade Union (except in relation to the control or management of the said fund) by reason of his not contributing to the said fund; and contributionof the said fund) by reason of his not contributing to the said fund; and contribution to the said fund shall not be made a condition for admission to the Trade Union.to the said fund shall not be made a condition for admission to the Trade Union.

By Divya kashyap