FACTORIES ACT 1948

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OBJECT

The main object of the Factories Act is to improve the working conditions of the workers by implementing as many provisions of industrial hygiene and industrial safety

The Factories Act makes it incumbent on the employers to take measures to safeguard the health of the workers

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• To ensure their safety to take care of their welfare

• To limit the hours and days of their work

• To observe certain conditions on the employing of young persons and to grant leave with wages

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FACTORY

• “Factory” means, any premises including the precincts thereof, wherein ten or more workers are working and in any part of which a manufacturing process is being carried on with the aid of power, or wherein twenty or more workers are working and in any part of which a manufacturing processes is being carried on without the aid of power

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FACTORIES ACT 1948• The Act deals with disposal of wastes and

effluents, ventilation and temperatures, dust and fumes, overcrowding, lighting, drinking water, latrines and urinals and spittoons and the measure to be taken to ensure safety of the workers

• The Act makes provisions for washing facilities, suitable arrangement for sitting, first aid appliances, canteens, shelter and rest rooms and other welfare measures

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BONUS ACT 1975• PROVISION OF ACT:

– This Act provides for the payment of bonus, linked with profit or productivity, to the employees in factories and establishments

– Bonus is payable to all categories of employees drawing wages up to Rs.4000/p.m. and engaged in any kind of work, whether skilled or unskilled, managerial, supervisory, manual, etc., Except Apprentices

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• An employee dismissed from service for fraud, riotous or violent behavior, theft, misappropriation or sabotage of any property of the establishment is not eligible for bonus

• Employees of general Insurance companies, LIC, Central and State Government establishments, Indian Red Cross Society, Universities and Educational Institutions, Hospitals, Chamber of Commerce, RBI, UTI, Social Welfare Institutions, local bodies, etc., are also NOT entitled to bonus under the Act

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• If they are paid Bonus, it is “Ex- Gratia payment”.

• The minimum bonus payable is 8.33% of the salary or wages during the accounting year

• Rs.100/- In case of employees above 15 years and Rs.60/- for those who below 15 years and Rs.60/- for those below 15 years at the beginning of Accounting Year

• The maximum Bonus payable is not to exceed 20%.

• Infringement or violation of ‘Act’ is punishable

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• The Act gives authority to the employer to make deductions from wages in certain cases.

• This Act extends to whole of India and applies to all Industrial or other establishments.

• No unauthorized deductions shall be made under any agreement

• Any agreement by the employee relinquishing hi right, is invalid under the Act

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INDUSTRIAL DISPUTES ACT 1947

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PURPOSE OF THE ACT

• This is an act to secure industrial peace and harmony providing a machinery and procedure for the investigation and settlement of industrial disputes by negotiation and for the protection of the rights and privileges of the workeres in the event of termination, layoff, etc.

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COVERAGE OF THE ACT:

• The Act covers all Industrial establishments carrying on any business, trade, manufacture or distribution of goods and services.

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AUTHORITIES UNDER THE ACT• Works Committee• Conciliation Officers• Board of Conciliation • Courts of Inquiry• Arbitration • Labor Court• Industrial Tribunal• National Tribunal

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• Strikes by employees and lockouts by employers without following the conditions stipulated in the Act are illegal

• Financial aid to illegal strike and lockout is punishable

• Employers are required to pay compensation to employees in the event of layoffs or retrenchment

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• The Act gives protection to the workers from unfair trade practices and victimization. The Act also provides protection of the workers for not joining any unions or participating in strikes

• The Industrial Disputes (Amendment and Miscellaneous Provisions) Act 1956 provides that employer who proposes to effect any change in the conditions of service must give notice of such change to workers

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PAYMENT OF WAGES ACT 1936

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Purpose of the Act

• This is an Act to regulate the payment of wages, imposition of fines and deduction from wages to persons employed in Industry drawing less than Rs.1600/month

• It Aims at eliminating all malpractices by prescribing wage periods and time and mode of payment of wages

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Provisions

• Provides that wage periods must be fixed at intervals not exceeding “1 Month”

• Wages must be paid on a working day and during working hours

• An employee discharged or who resigns must be paid within 48 hours and wages must be paid in current coin only

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Regulation of the Act

• Regulates the imposing of fines and provides that all fines realization must be utilized for the purposes beneficial to the employees

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The Act provides

• Daily and Weekly working hours

• Weekly holidays

• Intervals of rest

• Night shifts

• Overlapping shifts

• Extra wages for overtime

• Restriction on double employment

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The Act provides

• Register of workers and exemptions and lays down conditions for employment of young persons

• It makes provision for annual leaves with wages and payment of wages in advance

• It prescribes the schedule of dangerous operations and procedures to be followed in the event of fatal and dangerous accidents

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• It also prscribes the records, returns and reports to be followed and penalties on the event of violation of Act provisions

• The Act also deals with obligations of workers and responsiblities of management

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MINIMUM WAGES ACT 1948

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Purpose

• It is an Act to provide for fixing Minimum rates of wages in certain employments.

• It is meant to help workmen to strike a fair bargain with their employers and ensures fair wages to them

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About the Act

• It lays down procedures for fixing minimum wages and for appointment of advisory committees and board

• It prohibits wages in kinds • Time and conditions of payment of

wages are stipulated• Deductions from wages are restricted

to authorized ones only

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• Sunday is declared as weekly holiday

• Working hours in the case of an adult are fixed as 9 hours a day and 48 hours a week with an interval of at least ½ an hour after 5 hours work and restricting the spread over to 10 ½ hours a day

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• Wages at the rate of double time are to be paid for work beyond normal hours

• Register and records to be maintained under the Act are prescribed

• The Act extends to the whole of India and applies to all establishments employing one or more persons in scheduled employment

• Any agreement by an employee relinquishing or reducing his right to minimum wages or other privileges under the Act shall be null and void

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