Labour Law Project On Workman: Prepared by
Labour Law Project On Workman: Prepared by
Labour Law Project On Workman: Prepared by
WORKMAN
Prepared by
Shreya Prabhudesai
S.Y.LLM
1
TABLE OF CONTENTS
1. Introduction 3
4-20
2. Workmen under Industrial Disputes Act, 1947
Act), 1946
28
Workmen under Factories Act,1948
5.
Bibliography 31
8.
2
WORKMAN
INTRODUCTION
organised, wage earners and self-employed, skilled, semi-skilled and unskilled and so on.
Every regulation relating to social security and working conditions has different meaning
and implication for every segment. The life of a worker is also not homogenous,
throughout his living, at different stages of life. The perception, understanding and need
of the things change and vary at different periods of life such as adolescence, youth, and
old age. The meaning of social security is not the same throughout the life of a worker. In
the same way, the perception pertaining to decency undergoes a change during the life
cycle of a worker. For him decency has a different meaning at different levels of age. At
the young age, it is something else than what it may be during the old age. It means the
social security and decency are not only significant for a worker but also have a different
meaning at different levels of living during the life of a worker. For any regulation, which
can become a source of employment promotion, it is very important that it should fulfill
its purpose. From this point of view, there is every need to evaluate different
1
DR. BALWINDER SINGH WORKER’S LIFE, WORK AND DECENCY : NEEDED REGULATORY MEASURES
IN INDIA (2009)
3
2. Workmen’s Compensation Act, 1923
The Industrial Disputes Act, 1947 (Act) is the governing legislation that provides the
machinery and procedure for the amicable settlement of conflicts between an employer
and employee so that industrial peace is maintained. This Act applies to all industries and
Section 2(j) of the Act, the definition of "industry" means any business, trade,
evolved, and at present it covers even establishments run without any profit motive, such
situation where his employment is terminated and such individual wants to avail the
protective umbrella of the Act, the employer contests by raising an objection that the
employee is not a workman within the definition of the Act. This article discusses various
workman.
2
Dr. V.G. Goswami- Labour Industrial Laws (2010)
4
Statutory definition & its analysis
The term ‘workman’ has been defined under Section 2(s) of the Industrial Disputes Act,
do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for
hire or reward, whether the terms of employment be express or implied, and for the
purposes of any proceeding under this Act in relation to an industrial dispute, includes
any such person who has been dismissed, discharged or retrenched in connection with, or
as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led
(i) who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950
prison; or
(iv) who, being employed in a supervisory capacity, draws wages exceeding one
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,
3
functions mainly of a managerial nature.
The first part envisages that for any person employed in an industry to qualify as a
workman, he must be engaged in a type of work mentioned in the definition. The second
part gives an extended meaning to the word workman as it includes employees dismissed,
3
Dr. V.G. Goswami- Labour Industrial Laws (2010)
5
discharged or retrenched in connection with an industrial dispute or whose dismissal,
discharge or retrenchment has led to an industrial dispute. The third part is exclusionary
in nature.
Therefore, it is clear that all workmen are employees but all employees may not be
workmen for the purpose of the Act. In order to be a workman it is not necessary that a
person must be employed in a substantive capacity. This means every person employed in
or probationer will be treated as a workman. Not all apprentices will fall within the four
corners of the definition; Indian jurisprudence has made it clear that an apprentice be
The important question is what does it mean to be a workman? The answer lies in the fact
that every employee covered in the definition can avail various benefits under the Act. A
workman can raise an industrial dispute with the employer regarding discharge, dismissal,
retrenchment or termination of his services. Section 25F of the Act provides mandatory
However, all those employees who do not fall within the ambit of the definition of a
workman will not be entitled to benefits under the Act. In Purandaran vs. Hindustan
Lever Limited, the petitioner adopted the Voluntary Retirement Scheme (VRS) 4
that there was a change of terms in the VRS under which 15% in excess of what the
petitioner got was payable. The petitioner claimed the payment of the enhanced amount
from the respondent and raised an industrial dispute. The Court held that the petitioner
had adopted the VRS, which amounted to his resignation, and, as a result thereof he is not
4
[2001 LLR 525 Kerala HC]
6
entitled to claim the status of a workman and so cannot raise any industrial dispute.
Clearly, the prerequisite for an industrial dispute is that the person raising it must fulfill
IMPORTANT POINTS
A. The object of Industrial Disputes Act, 1947 is to make provisions for the
investigation and settlement of industrial disputes, and for certain other purposes
definition explaining what sort of persons come under the purview of ‘workman’.
The approach of Section 2(s) is a positive one and not a negative one.
B. The word ‘workman’ means any person employed in any industry etc. It is a very
This is the most important question raised before the Courts on several occasions.
In the leading case Silver Jubilee Tailoring House vs Chief Inspector of Shops
within the meaning of Section 2(s) of the Industrial disputes Act, 1947.
7
Silver Jubilee tailoring House vs Chief Inspector of Shops and
Establishments 5
Introduction: Since the beginning of the human civilization upto the start of
appointed workers under him to assist and improve the production. If the worker
had any doubt with regards to the work, he approached the employer and clarified
the same. The employer was able to instruct his workmen what is to be done and
how it is to be done. The employer thus could exercise his control over the
knowledge and the skills that he possessed. This was the situation upto the
industrial revolution.
Even in the earlier cases in Great Britain, the employer exercised control over his
workers in extracting the work. This distinction of telling workers what to do and
how it is to be done was based upon the social conditions of an earlier age. It was
assumed that the employer was superior in the technology and was therefore
and in the earlier stages of Industrial revolution, the owner was regarded as
superior to the workmen in knowledge, skill and experience. This was called as
production coincided with the profession of technical knowledge and the skills
were largely acquired by being handed down by one generation to the next by oral
5
(1973) II LLJ 495 SC)
8
In the modern context, this division and control test are not useful because today
the same with the help of technocrats. Money plays an important role in the
hotel by employing experts and people engaged in the technical field. Today a
drastic division has been established between the managers and technocrats.
factor, however in every case it may not be so. This was decided in the leading
case.
Brief Facts: In this case the owner established ‘Silver jubilee tailoring House’. He
supplied cloth to the tailors and paid remuneration on a piece rate. He had never
controlled them in any manner apart from supplying the cloth as per the capacity
of the tailor and paying money as per the piece-rate. He provided sewing
machines, cloth and other sewing materials to them. He did not maintain any
registers under the labour laws. The Chief Inspector of Shops and Establishments
prosecuted him. The lower courts gave the judgment treating the piece-rated
tailors as the ‘workmen’ within the meaning of Section 2(s) of the industrial
disputes Act, 1947. He appealed to the Supreme Court. He argued that he had no
technical knowledge of tailoring and he had engaged them on contract basis, that
too on piece-rate, and that they were not regular employees, and also that his was
a seasonal business.
JUDGMENT: The Supreme Court gave judgment against the owner and treated
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PRINCIPLES: (i) Mathew J. observed: “it is in its application to skilled and
particularly professional work that control test in its traditional form has really
broken down. It has been said that in interpreting ‘control’ as meaning the power
to direct how a servant should do his work, the Court has been applying a concept
(ii) The rule laid down in this case has been applied in subsequent cases
(iii) The tailors working at one place at piece-rate for several employers are not
treated as workmen.
Court of Gujarat has held that any person who has been dismissed, discharged or
within the definition of the workman under Section 2(s). What is important and
definition of the term ‘workman’ as per Section 2(s) have to be satisfied. In this
case the workman was a dismissed workman and his salary on the date of
reference was clearly covered by the main definition of the term workman and did
F. In Arkal Govind Raj Rao vs Ciba Geigy of India Ltd 8 it was observed that :
workman or some other than a workman the Court must find out what are the
primary and basic duties of the person concerned and if he is incidentally asked to
6
(1983 II LLJ 413 SC)
7
1987) II LLJ 172
8
(1985) II LLJ 401(403) (SC)
10
do some other work, which may not be necessarily in tune with basic duties, these
additional duties cannot change the character and status of the person concerned.
In other words, dominant purpose of the employment must first be taken into
one has to see what is the main or substantial work which he is employed to do.
(i) Contract of employment: The first essential condition for a person to be a workman is
that there must be a contract of employment between the parties and a relationship of
employer-employee or master-servant must exist. Indian courts have ruled that the prima
facie test to determine the relationship between master and servant is the existence of the
right in the master to supervise and control the work done. It is important to be able to
direct not only the work to be performed but also the manner in which it shall be done.
absence of which no person can claim to be a workman. For instance, professionals like
doctors, lawyers, physicians who render part-time services in various institutions can
claim the status of workman only when it is established that they render services to an
Additionally, the employee must be paid some remuneration irrespective whether the
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operations increasingly use the services of an independent contractor who, in
workman of the contractor will not become the workman of the management.
The contractor is responsible for payment of remuneration to the employees and not the
management. However, under Indian law, the contract workers are legally bound to the
contractor, but if the contractor defaults in providing any benefits that a contract labour is
entitled under the law, the principal employer is liable. The principal employer will be the
company where the workers work. Contract labourers under the law are eligible to
receive, from the contractor, benefits such as provident fund and employee state
insurance.
There is ambiguity whether a contract worker will qualify as a workman. There have been
situations where such workers have come within the ambit of the definition of a
workman.
The terms of the contract between the contractor and the Company govern the
employment of the contract labour. The triggers for creation of a potential industrial
dispute for contract and temporary/casual employees may arise when there is: (i) a
tendency/frequency to hire workers who are engaged in the activities that are contrary to
employees including contract labour, and (iii) excessive control/check on the activities of
contract labour. The Courts have held that if the principal employer keeps control on
12
contract labour, including granting them leave or extending any salary advance, then the
contract between the contractor and principal employer is a sham. In Ram Singh & Others
v. U.T. of Chandigarh; 9 both the contractor and contract labours were held to be direct
It is not essential that the employment in the industry should have direct nexus with the
main industrial activity; the employees who are employed in connection with operations
incidental to the main industry will also be treated as workmen. For instance, if workers
are employed by a sugar factory to remove press-mud from the sugar factory, the workers
will be considered workmen, as removing press-mud is an activity which is the part of the
sugar factory.
(vii) Nature of work: Another determinative factor is the nature of duties and
of employees are often required to do more than one work. In such a scenario,
The scope of the present discussion is limited to the people who are engaged
9
(2004) I LLJ 227
13
(viii) Technical work: Any person who is engaged in doing any technical work
will fall under the definition of workman. However, every work of technical
nature which involves technical skill does not necessarily give rise to the
specialized skills required for performing the job. As a result, he will qualify
In Bombay Dyeing and Manufacturing Co Ltd v RA Bidoo10 it was held that a person
present case, the respondent was employed as a camera operator in the company. He was
working in the screen-making department of textile mills and was responsible for testing
new chemicals and graphite films and, accordingly, advice the management of their
suitability. The company terminated the employment of the respondent without assigning
any reason. The respondent raised an industrial dispute contending that his termination
was not justified. The Court considered the nature of his work and held that the work
done by him was not of a technical nature as it did not require application of any special
10
[1990 1 LLJ 98 Bombay HC]
14
knowledge which would result in the creation of a work peculiar to the talent of the
Therefore, it is pertinent to note here that there are two guiding factors which determine
technical nature. However, in order to determine whether the nature of duties performed
by a workman will fall under the technical category, the court has to consider the facts
otherwise, the court considers the primary duties of an employee and functions
with persons doing supervisory work and earning below Rs1,600 a month. An
the aforesaid limit will not qualify as a workman. In practice, very few people
will earn the sum mentioned, and yet be supervisors. Therefore, the legislators
In any event, Indian courts have ruled that where an employee has multifarious duties and
a question is raised whether he is a workman or not, the court should consider the primary
and basic duties of the person concerned. The determinative factor is the main duties of
the concerned employee and not some work done incidentally. For instance, where an
some clerical work, these additional duties cannot change the character and status of the
15
In Management of Sonepat Cooperative Sugar Mills Ltd. vs Ajit Singh 11 , the
respondent was appointed as a legal assistant by the appellant to prepare written statement
and notices and draft legal opinions. He also used to perform some quasi-judicial
functions like conducting departmental enquiries against the workmen employed in the
industrial undertaking of the appellant. While he was employed by the appellant in that
capacity, it was decided to abolish the position. The respondent raised an industrial
dispute raising his contention that his termination was not justified. However, the
appellant opposed the respondent's contention and pleaded that he was not performing
any managerial or supervisory duties and, therefore, would not be a workman. The
Supreme Court held that the job performed by the respondent was of "legal clerical
nature" which involves creativity of mind. Further, merely because the respondent had
not performed any managerial or supervisory duties did not disqualify him as a workman.
technical nature, the mere fact that some supervisory or other work is also done by him
incidentally or as a small fraction of his work, will not take him out of the purview of the
first taken into consideration and the gloss of some additional duties must be rejected
workman the nature of duties assigned to him are relevant. For instance, while
11
[2005 1 LLJ 1122]
16
considering whether a software engineer is a workman or not it is essential to
workman.
and others 12, respondent was a bank manager performing managerial and administrative
industrial dispute contending that his suspension is illegal. The court held that the role of
educating his customers along with his staff on various services the bank can offer.
Therefore, on account of the nature of his duties which are purely of managerial and
administration and development etc. he cannot come under the definition of workman.
PROTECTED WORKMEN
office bearer or member of the executive committee of a registered trade union connected
with the establishment, is recognised as such in accordance with rules made in this behalf.
12
[2000 LLR 84 Allahabad HC]
17
Rule 61(1) of Industrial Disputes (Central) Rules, 1957, provides that every registered
employer before the 30th April every year, the names and addresses of the officers of the
union who are employed in that establishment who should be recognised as protected
workmen. Rule 61(2) makes it obligatory on the part of employer to recognise such
number of workers as provided u/s 33 (4) of the Industrial Disputes Act, 1947, as
‘protected’ for a period of 12 months, within fifteen days of receipt of the proposal from
the union.
person nominated by the union, if any disciplinary proceeding is pending against such
workman. Union certainly cannot exercise their power under Rule 61(1) to give immunity
pending, by nominating his name for recognition as protected workman. HLL Lifecare
As per Section 33 (4) of the Industrial Disputes Act, 1947, the number of workmen to be
recognised as protected workmen shall be one per cent of the total number of workmen
13
W.A 1171 of 2010
18
Where the total number of names received by the employer exceeds the maximum
number of protected workmen, admissible for the establishment, u/s 33(4) of the Act, the
Where there are more than one registered trade unions in the establishment, the maximum
number of protected workmen shall be distributed among the unions in such a way that
membership of the unions. If the number of protected workmen allotted to a union is less
than that proposed by the union, the union will have to select from the proposed list the
names of such persons who should be recognised as protected workmen and intimate the
Section 33 (3) of Industrial Disputes Act, 1947, provides that during the pendency of any
industrial dispute, the employer should not initiate any action against any protected
(a) by altering, to the prejudice of such protected workman, the conditions of service
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(b) by discharging or punishing, whether by dismissal or otherwise, such protected
workman, save with the express permission in writing of the authority before which the
proceeding is pending.
If an employer wants to take action against a protected workman during the pendency of a
Court, Tribunal or National Tribunal, he should get express permission from the
conciliation Officer, Labour Court or Tribunal, as the case may be, by applying in form J.
It may be remembered that application for approval should be made before the action for
change in service conditions or discharge or dismissal, as the case may be, becomes
effective [McKenzie & Co Vs Workmen. 14 At the same time, during the pendency of
application for dismissal of a worker u/s 33, the employer can place him under
suspension.
14
(AIR 1959 SC 389)
20
WORKMEN’S COMPENSATION ACT, 1923
The Workmen’s Compensation Act, 1923 is really the first beneficial legislation for
labour in India. While the trade unionism and collective bargaining were in preliminary
stage, the then British Government enacted this statute for the welfare of labour and their
responsibility on the employer for the payment of compensation for death, permanent or
partial and temporary disablement. By enacting the Workmen’s Compensation Act, the
rigid formalities and technicalities were removed. Speedy remedy is now possible by the
The Commissioner has power to award compensation more than what is claimed by the
workman if the facts do warrant such an award; Karnataka State Road Transport
(i) It gives cheap and quick remedy to the injured workmen or the dependants of
(iv) The Commissioner is not bound to follow the technicalities and formalities of
(v) The Act clearly defines injury, workman, accident arising out of and in the
15
1994 LLR 251 (Karn)
21
(vi) The definition of a workman given under this Act is wider than any other
labour legislation.
(ix) Though the Act was enacted in 1923,the spirit of the Constitution Of India,
(i) a railway servant as defined in 3[clause (34) of section 2 of the Railways Act, 1989 (24
office of a railway and not employed in any such capacity as is specified in Schedule II,
or
(c) a person recruited as driver, helper, mechanic, cleaner or in any other capacity in
and who is employed outside India in any such capacity as is specified in Schedule II and
the ship, aircraft or motor vehicle, or company, as the case may be, is registered in India,
or;]
22
(ii) employed in any such capacity as is specified in Schedule II, whether the contract of
employment was made before or after the passing of this Act and whether such contract is
expressed or implied, oral or in writing; but does not include any person working in the
capacity of a member of the Armed Forces of the Union ; and any reference to a workman
who has been injured shall, where the workman is dead, includes a reference to his
IMPORTANT POINTS
A. Section 2(1)(n) of the Workmen’s Compensation Act, 1923 defines ‘workmen’ for
this purpose, it differs with the definitions given in other labour and industrial
legislations.
substitute driver working for two days on a lorry is a workman within the meaning
of this section. Example: A is the lorry owner. B is A’s lorry driver. For the
purpose of this Act, B is the workman of A. This was decided in Oriental fire
C. Casual employees appointed for a particular purpose are not ‘workmen’ within the
meaning of Section 2(1)(n). Daily rated workers are the casual workers. If a
worker works only one day on daily wages, and dies, the employer is not liable. If
under a contractor on daily rate. He was paid weekly. He worked for one month.
16
Dr. V.G. Goswami- Labour Industrial Laws (2010)
17
(AIR 1975 AP 222)
18
(1978(1)LLJ 147 AP
23
The Andhra Pradesh High Court held that he was not a casual employee, but a
whitewash on contract is not a workman. Case Law: Danni Devi vs. Gurbaksh
Singh 19
that a railway servant drawing less than 1000 per month iis a workman.
F. In Juthi Devi and others vs. pine Chemical Ltd and another 21. In this case a
watchman was appointed by a chemical factory. His duty was to watch and ward.
He was assaulted by the thieves. Due to injuries he died. The dependants claimed
compensation. The management raised objection that the watchman was not a
worker, as he was not concerned with the manufacturing process of the industry.
The High Court gave judgment in favour of the dependants and ordered the
management to pay compensation. The High Court held that the workman was
workman.
G. In Champal vs. Daryavbai and others 22. In this case, A-the house owner had
had to construct the wall and to take contracted amount @ square feet. While B
was constructing, it was collapsed and he died. The High Court gave judgment
19
(1973 ACJ 492 Del.)
20
(1984 ACJ 545 Ori)
21
(1990) 2 TAC 689 J&K HC)
22
(1992) 65 FLR 589 MP
24
The Court held that there was a clear distinction between an independent
“Batta” paid to a workman per day to cover special expenses incurred by him due to
nature of his employment does not amount to “wages” for the purposes of computing
compensation;New India Assurance Co. Ltd., Hyderabad v. Kotam Appa Rao, 1995 LLR
609 (AP).
From the definition of ‘workman’ given in section 2 (1) (n) of the Act, it is clear that for
not treating a person as workman, two conditions are required to be proved namely that
his employment is of casual nature and he is not employed for the purpose of employee’s
trade or business and the onus is on the employer to prove these conditions; Mangala
23
1990 LLR 287 (Bom
24
1998 LLR 656
25
Industrial Employment (Standing Orders) Act,1947
There are ‘service conditions’ or ‘service rules’ for various employees like Government
employees, bank employees, LIC employees etc. The Industrial Employment (Standing
What are ‘Standing Orders’ - ‘Standing Orders’ means rules of conduct for workmen
set out in the schedule to the Act. [section 2(g)]. The schedule to the Act requires that
temporary, badli, casual, permanent, skilled etc. (b) manner of intimating to workmen
working hours, shift working, transfers etc. (c) Holidays (d) Attendance and late coming
rules (e) Leave rules (f) Leave eligibility and leave conditions (g) Closing and reopening
dismissal etc. for misconduct and acts or omissions which constitute misconduct (i)
Retirement age (j) Means of redressal of workmen against unfair treatment or wrongful
Section 2 [(i) “wages” and “workman” have the meanings respectively assigned to them
in clauses (rr) and (s) of Section 2 of the Industrial Disputes Act, 1947 (14 of 1947). 25
Under Crown Construction Contracts Act. “workman" means a person who has a contract
25
Dr. V.G. Goswami- Labour Industrial Laws (2010)
26
with a contractor, or with a subcontractor who has a contract with a contractor, to provide
manufacturing process but does not include any member of the armed forces of
theUnion.
The Apprentice Act , 1961 :“ Worker “ means any person who is employed for wages in
any kind of work and gets his wages directly from the employer but shall not include as
26
Wikipedia.com
27
WORKMEN UNDER INTERNATIONAL LAW
SINGAPORE LAW
The Work Injury Compensation Act ('WICA') came into force on 1 April 2008
injuries that happen on and after 1 April 2008; for accidents that occurred before 1
Unlike the Workmen's Compensation Act which covers only manual workers and
non-manual workers earning $1,600 per month or less, WICA covers all employees
whether they are manual or non-manual workers and regardless of their level of
earnings.
WICA aims to provide a quick and simplified process for obtaining compensation
for workplace injuries that is an alternative to claiming for damages under the
common law.
Unlike civil lawsuits against the employer, compensation is payable under WICA on a
'no-fault basis', as long as an employee suffers an injury arising out of and in the
course of his employment. There is also a fixed formula in the Act on the amount of
compensation to be awarded, and capped so that the financial liability on the employer
is limited.
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Employees who sustain injuries or who contract occupational diseases arising out of
their work, or the estates of employees who die in a work-related accident, are
entitled to claim work injury compensation. WICA covers all employees engaged
workers, members of the Singapore Armed Forces, officers of the Singapore Police
Force, the Singapore Civil Defence Force, the Central Narcotics Bureau and the
An injured employee can make a claim under WICA for personal injury by accident
arising out of and in the course of his employment - i.e. arising during working
hours or while on official duties; including accidents that happen while travelling to
and from his place of work in company provided transport (not by public transport);
the case may be; the estate of an employee who dies in a work-related accident is
entitled to claim -
27
The law society of Singapore.com
29
CONCLUSION
Courts and scholars have been grappling with the question of ‘who is a workmen’ for
centuries. The addition of a new intermediate category has the potential of making the
distinction easier. It also has the potential of preventing or at least minimizing, the
by the judiciary. For both advantages to materialize, the term ‘employee’ and ‘workmen’
must be interpreted positively to achieve the goals behind the regulations in which they
are found. These purposes may be best served if courts and tribunals maintain a
distinction between two basic vulnerabilities suffered by people who work for others.
Therefore dependency itself should be used to identify ‘workers’ and trigger the
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BIBLIOGRAPHY / LIST OF REFERENCES
LIST OF BOOKS
LIST OF WEBSITES
a. www.indiakanoon.com
b. www.legalpundit.com
c. www.wikipedia.com
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