AL-AMEEN COLLEGE OF LAW, BANGALORE

MODEL ANSWERS

LABOUR LAW-II

Q1. Explain the constitutional provisions which protects the Labourers

Over the years, labour laws have undergone change with regard to their object and scope. Early
labour legislations were enacted to safeguard the interest of employers. They were governed by
the doctrine of laissez-faire. Modern labour legislations, on the other hand, aims to protect
workers against exploitation by employers. The advent of doctrine of welfare state is based on
the notion of progressive social philosophy which has rendered the old doctrine of laissez-faire
obsolete. The theory of 'hire and fire' as well as the theory of 'supply and demand' which found
free scope under the old doctrine of laissezfaire no longer hold good.

The growth of industrial jurisprudence can significantly be noticed not only from increase in
labour and industrial legislation but also from a large number of industrial law matters decided
by Supreme Court and High Courts. It affects directly a considerable population of our country
consisting of industrialists, workmen and their families. Those who are the affected indirectly
constitute a still larger bulk of the country’s population.

After India became independent, it adopted a Constitution on the 26 April 1949. Indian
Constitution is a unique basic national document. Besides providing basic principles for
governance, it presents the aspirations of the Weaker Section of Society, specially the working
classes. It has conferred innumerable rights on the protection of labour. It is also a strange
phenomenon of history that national freedom struggle and struggle of working class
emancipation coincided and our leaders fought for both- the betterment of worker's lots and
India's freedom.

During this period, they made some promises and pledges to the working classes, which were to
be redeemed after independence. The redemption of all those promises and pledges get
expression in our Constitution.
Constitution is the supreme law of a nation and all legislations draw their inspiration from it.
Constitution is a document of social revolution casting an obligation on every instrumentality
including the judiciary to transform the status quo ante into a new human order in which justice,
social, economic and political will inform all institutions of national life and there should be
equality of status and opportunity to all.

The Indian Constitution, the Preamble, the Fundamental Rights and the Directive Principles of
State Policy, embody the fundamental principles, which provide guide to all legislations,
including the labour legislations. This constitutional trinity assures its citizens to provide
"Socialistic Pattern of Society" and create "Welfare State" and all legislations, specially the
Labour legislations, are deeply influenced by them.

Article 14 commands State to treat any person equally before the law. Article (19) (1) (c) grants
citizens the right to form association or unions. Article 21 promises protection of life and
personal liberty.

Article 23 prohibits forced labour he Committee on Labour Welfare, 1969, noted that “labour
welfare includes such services, as facilities and amenities as adequate canteen, rest and
recreational facilities, sanitary and medical facilities, arrangement for travel to and from work
and for the accommodation of the workers employed at a distance from their homes and such
other services amenities and facilities as contribute to improve the condition under which
workers are employed.”

Q2. Define bonded labour explain the international conventions in support of bonded
labour.

Under this system when an elder of an Indian family took a loan mostly for agriculture and fails
to repay the same, his descendants or dependents have to work for the creditor without
reasonable wages until the loan is repaid. This system is commonly known as “Bandhua
Mazdoori”. Also it is to be mentioned here that because of illiteracy and backwardness the loan
structure was made in a way that the interest over a small period of time will be greater than the
principal sum and then there was interest charged on the already existing interest. Hence the
loans were made in a way that they cannot be repaid. Several generations are made to work in
degradable condition and extreme poverty under this system. Even after India got independence
and Indian Constitution came to power that enshrines the principal of Equality and Dignity the
practice of Bandhua Mazdoori continued. With an aim to end this practice, Indian Parliament
enacted Bonded Labour System (Abolition) Act, 1976.

Bonded labour has been defined in the Bonded Labour System (Abolition ) Act, 1976, under Sec
2(e) "bonded labour" means any labour or service rendered under the bonded labour system; Sec
2 (f) "bonded labourer" means a labourer who incurs, or has, or is presumed to have, incurred a
bonded debt;

Bonded labour has been defined as well as addressed as a prohibited practice in several
international conventions as well as a many Indian legislations.

As per ILO’s Forced Labour Convention, 1930 (No. 29) [Article 2(i)] — The term forced or
compulsory labour shall mean all work or service, which is exacted, from any person under the
menace of any penalty and for which the said person has not offered himself voluntarily.

Universal Declaration of Human Rights — On December 10, 1948, the General Assembly of the
United Nations adopted and proclaimed the Universal Declaration of Human Rights. Article 4
says: “No one shall be held in slavery or servitude; slavery and slave trade shall be prohibited in
all their forms.

” UN Supplementary Convention on the Abolition of Slavery (1956) — Under this Convention

debt bondage is defined as “the status or condition arising from a pledge by a debtor of his
personal service or those of a person under his control as security for a debt, if the value of those
services as reasonably assessed is not applied toward the liquidation of the debt or the length and
nature of those services are not respectively limited and defined.”

As per ILO Report on Stopping Forced Labour (2001) — The term (Bonded Labour) refers to a
worker who rendered service under condition of bondage arising from economic consideration,
notably indebtedness through a loan or an advance. Where debt is the root cause of bondage, the
implication is that the worker (or dependents or heirs) is tied to a particular creditor for a
specified or unspecified period until the loan is repaid.

The ILO & Bonded Labour,

Through various conventions the ILO protects bonded Labour some of the conventions are,

1. Forced Labour convention 1930

2. The Universal declaration of HR

3. Un Supplementary Convention on the Abolition of Slavery 1956

The ILO report on Stopping Forced Labour (2001): It defines Bonded Labour as, workers who
render services under the condition of the bondage arising from the economic consideration, like
ineptness through a loan or an advance, where the debt is the root cause of the bondage, the
implementation is that the worker is tied to a particular creditor for a specified or an unspecified
period until the loan is repaid.

The ILO conventions have prohibited the bonded labour, child labour & implemented with
compulsory education with a view to provide appropriate facilities for all round development of
the child labour. The right to education is provided in the UDHR (universal Declaration of
Human Rights), the ICESCR (International Covenant on Economic, Social, & Cultural Rights),
ICCPR (international Covenant on civil & political rights) & the Universal Declaration forms the
bill of Human Rights.

These instruments specify education must be compulsory & free to all, secondary education;
including vocational education must be available & accessible to all children. These conventions
further states that, the states must make education, vocational information & guidance available
& accessible to all children & take measures to encourage regular attendance & reduction of
drop outs rates .

Q3. Define bonded labour explain the constitutional provisions relating to bonded labour.

Bonded labour has been defined in the Bonded Labour System (Abolision ) Act, 1976, under Sec
2(e) "bonded labour" means any labour or service rendered under the bonded labour system; as
well as Bonded Labourer has been defined under Sec 2 (f) "bonded labourer" means a labourer
who incurs, or has, or is presumed to have, incurred a bonded debt;
Bonded labour has been defined as well as addressed as a prohibited practice in several
international conventions as well as a many Indian legislations.

As per ILO’s Forced Labour Convention, 1930 (No. 29) [Article 2(i)] — The term forced or
compulsory labour shall mean all work or service, which is exacted, from any person under the
menace of any penalty and for which the said person has not offered himself voluntarily.

Forced Labour: It is widely defined, whenever a person is compelled to give his labour or
service, even though remuneration is paid for it. The same would be the result where the labourer
is obliged to work at wages less than the minimum wages.

Labour Rights and Indian Constitution Indian constitution provides numerous safeguards for the
protection of labour rights. These safeguards are in the form of fundamental rights and the
Directive principle of State policy.

Articles 14,19,21,23 and 24 comprise of fundamental rights promised under part III of the
Constitution. Articles 38, 39, 39A, 41, 42, 43,43A and 47 form part of the Directive Principles of
State Policy under Part IV of the Constitution, but they are not enforceable in a court of law.
Article 39, 39A, 41, 42, 43 and 43A collectively can be termed “Magna Carta of working class in
India.” Article 14 commands State to treat any person equally before the law. Article (19) (1) (c)
grants citizens the right to form association or unions. Article 21 promises protection of life and
personal liberty. Article 23 prohibits forced labour. Article 24 prohibits employment of children
below the age of fourteen years. Article 39(a) provides that the State shall secure to its citizens
equal right to an adequate means of livelihood. Article 39A provides that the State shall secure
the equal opportunities for access to justice to its citizens and ensure that such opportunities are
not denied by reason of economic or other disabilities. Article 41 provides that within the limits
of its economic capacity the State shall secure for the Right to work and education. Article 42
instructs State to make provisions for securing just and humane conditions of work and for
maternity relief. Article 43 orders the State to secure a living wage, decent condition of work and
social and cultural opportunities to all workers through legislation or economic organisation.
And Article 43A provides for the participation of workers in Management of Industries through
legislation.
1. Article 21 of the Indian Constitution – This is the most important and foremost safeguard
against any exploitation of human lives and their liberty. It is part of the Basic Structure of the
Constitution and cannot be amended. It secures the right to life and right to live with human
dignity to every person in India. So, any practice of bonded labour would be in contravention of
this Constitutional provision since bonded labour deprives a person of numerous liberties.

2. Article 23 of the Indian Constitution – As discussed above, the Constitution of India expressly
provides for the abolition of forced labour and prohibits this form of forced labour in the territory
of India. This not only prohibits bonded labour but also covers the practice of Begar and other
forms of human trafficking in India.

3. Article 39 of the Constitution – This is covered in Part IV of the Indian Constitution which
deals with the Directive Principles of State Policy is albeit not enforceable but are considered
irrefutable for the purpose of governance. This constitutional provision directs the State to secure
the right to an adequate livelihood. It also directs the state to formulate its policies with an object
that no citizen is forced out of economic necessity to enter into avocations which are not suited
to them.

4. Article 42 of the Constitution – This is also a Directive Principle of State Policy which states
“The State shall make provision for securing just and humane conditions of work” This means
that the state must ensure that every person has a working condition which are just and humane
for them. However, since it is part of Part IV, it cannot be enforced.

5. Article 43 of the Constitution – This directive directs the State to secure i.e. conditions for
work ensuring a decent standard of life.

Indian judiciary has played significant role in the implementation of the Act. The Court has tried
to expand the scope of forced labour and protect the rights of citizens time and again. There have
been cases in India even after the enactment of the Act which the Apex Court has dealt.

An-interesting custom of Manipur State came to the notice of the Court in Kahaosan Thangkhul
v. Simirei Shaileis (AIR 1961 Mani 1). There appears to have been a custom for each of the
householders in the village to offer one day's free labour to the headman of the village. The
appellant in that case refused to offer such free labour and challenged the custom as being
opposed to the provisions of Article 23(1) of the Constitution, which prohibits begar and other
forms of forced labour. The court held the custom as violative of Article 23(1) of the
Constitution.

In the case of Neerja Chaudhury v. State of Madhya Pradesh (1984 3 SCC 243), The Supreme
Court held – “It is the plainest requirement of Articles 21 and 23 of the Constitution that bonded
labourers must be identified and released and on release, they must be suitably rehabilitated. Any
failure of action on the part of the State Government in implementing the provisions of [the
Bonded Labour System (Abolition) Act would be the clearest violation of Article 21 and Article
23of the Constitution.” As mentioned above, there are a few constitutional provisions that
safeguard the system of bonded labour from being practised. In this case, the Apex Court did
very well by relating the issue of bonded labour system with the person’s fundamental right
enshrined in Article 21 of the Constitution and gave a clear thrust to the State to implement
Article 21 and Article 23 of the Constitution.

Also, in the case of People’s Union for Democratic Rights v. Union of India (AIR 1982 SC
1473), The Supreme Court of India delivered the judgement stating – “Where a person provides
labour or service to another for remuneration which is less than minimum wage, the labour or
service provided by him clearly falls within the scope and ambit of the word `forced labour’ ” As
seen, the Court has tried to expand the scope of forced labour and protect the rights of citizens
time and again.

In Sathyajit Rai V/S State of Rajasthan (AIR 1983 SC 328), the court invalidated that provision
of Rajasthan Famine Relief Wok Employees Act 1964 which exempted the application of
Minimum wages Act 1948 to the employment of famine relief works. The law laid down in the
Asiad workers case & followed in Stahyajit Rays case has been fully endorsed.

In Bandhu Muckthi Morcha V/S Union of India (1984 3 SCC 161), Where the Sc declared
bonded labour as a crude form of forced labour, which is prohibited u/Art 23 of the constitution.
SC further held that failure of the state to identify the bonded labour, to release them from they
bondage & to rehabilate them as envisaged by the Bonded Labour Act 1976 violates Art 21 of
the constitution.
In Bandhua Mukti Morcha v. Union of India, the main issue concerned the existence of bonded
labour in the Faridabad stone quarries near the city of Delhi. It was alleged that majority of the
workers were compelled to migrate from other states, and turned into bonded labourers. The
workers were living in sub-human and miserable conditions. A violation of various labour laws
and the Bonded Labour System (Abolition) Act 1976 was alleged. The SC stated that before a
bonded labour can be regarded as a bonded labourer, he must not only be forced to provide
labour to the employer but he must have also received an advance or other economic
consideration from the employer, unless he is made to provide forced labour in pursuance of any
custom or social obligation or by reason of his birth in any particular caste or community.

Begar is a form of forced labour under which a person is compelled to work without receiving
any remuneration. Other similar forms of forced labour were interpreted the Supreme Court
when it ruled in the Asiad Workers Case that both unpaid and paid labour were prohibited by
Article 23, so long as the element of force or compulsion was present in the worker's ongoing
services to the employer. Thus the Supreme Court set a new constitutional standard at a time
when State on its part had completely neglected the human values. The court further remarked
that the state government is under the constitutional scheme, charged with the mission of
bringing about a new socio-economic order where there will be socio-economic justice for
everyone and equality of status and opportunity for all.

Q4. Explain the provisions regarding prohibition & abolition of bonded labour.

Abolition of bonded labour system

Sec 4 of the bonded Labour Act deals with Abolition of bonded labour system , according to sub-
sec (1), the bonded labour system shall stand abolished, any & every bonded labourer shall, on
such commencement, stand freed and discharged from any obligation to render any bonded
labour.

According to sub-sec(2) no person shall- (a) make any advance under, or in pursuance of, the
bonded labour system, or (b) compel any person to render any bonded labour or other form of
forced labour. The bonded labour system has been abolished from 25th October, 1975 and every
bonded labourer has been set free and has been discharged from any obligation to render any
bonded labour from this date. No person is allowed to make an advance under, or in pursuance of
the bonded labour system. No one can compel any person to render any bonded labour or other
form of forced labour.

Sec 5. Agreement, custom, etc., to be void.-On the commencement of this Act, any custom or
tradition or any contract, agreement or other instrument, whether entered into or executed before
or after the commencement of this Act, by virtue of which any person, or any member of the
family or dependent of such person, is required to do any work or render any service as a bonded
labourer, shall be void and inoperative.

From 25th October, 1975 any custom or tradition or any agreement or other instrument, whether
entered into or executed before or after 25th October, 1975 by virtue of which any person or any
member of his family or dependent is required to do any work or rendor any service as a bonded
labourer, shall be void and it shall not be operative. Under section 6 of the Act every obligation
of a bonded labourer to repay any bonded debt have been extinguished no suit or other
proceeding shall lie for the recovery of any such debt. Every decree or order for the recovery of
bonded debt shall be deemed to have been fully satisfied. Every attach made for the recovery of
bonded debt shall stand vacated. If possession of any property belonging to a bonded labourer or
a member of his family or other dependent was forcibly taken over by any creditor for the
recovery of the bonded debt, such property shall be restored.

Sec 7. Property of bonded labourer to be freed from mortgage, etc.- (1) All property vested in a
bonded labourer which was, immediately before the commencement of this Act under any
mortgage, charge, lien or other encumbrances in connection with any bonded debt shall, in so far
as it is relatable to the bonded debt, stand freed and discharged from such mortgage, charge, lien
or other encumbrances, and where any such property was, immediately before the
commencement of this Act, in the possession of the mortgagee or the holder of the charge, lien
or incumbrance, such property shall except where it was subject to any other charge, on such
commencement, be restored to the possession of the bonded labourer .

(2) If any delay is made in restoring any property referred to in subsection (1) to the possession
of the bonded labourer, such labourer shall be entitled, on and from the date of such
commencement, to recover from the mortgagee or holder of the lien, charge or incumbrance,
such mesne profits as may be determined by the civil court of the lowest pecuniary jurisdiction
within the local limits of whose jurisdiction such property is situated.

Any property vested in a bonded labourer which was under any mortgage, charge, lien or other
encumbrances in connection with any bonded debt stands freed and discharged and if the
possession of the said property was with the mortgagee or other holder of the charge, lien or
incumberance will be restored to the possession of the bonded labourer.

Sec 8. Freed bonded labourer not to be evicted from homestead, etc.- (1) No person who has
been freed and discharged under this Act from any obligation, to render any bonded labour, shall
be evicted from any homestead or other residential premises which he was occupying
immediately before the commencement of this Act as part of the consideration for the bonded
labour. (2) If, after the commencement of this Act, any such person is evicted by the creditor
from any homestead or other residential premises, referred to in sub-section (1), the Executive
Magistrate in charge of the Sub-Division within which such homestead or residential premises is
situated shall, as early as practicable, restore the bonded labourer to the possession of such
homestead or other residential premises. No person who has been freed and discharged from any
obligation to render any bonded labour will be evicted from any homestead or other residential
premises as part of the consideration for the bonded labour.

Sec 9. Creditor not to accept payment against extinguished debt.- (1) No creditor shall accept
any payment against any bonded debt which has been extinguished or deemed to have been
extinguished or fully satisfied by virtue of the provisions of this Act. No person who has been
freed and discharged from any obligation to render any bonded labour will be evicted from any
homestead or other residential premises as part of the consideration for the bonded labour. (2)
Whoever contravenes the provisions of sub-section (1) shall be punishable with imprisonment
for a term which may extend to three years and also with fine. (3) The court, convicting any
person under sub-section (2) may, in addition to the penalties which may be imposed under that
sub-section, direct the person to deposit, in court, the amount accepted in contravention of the
provisions of sub-section (1), within such per as may be specified in the order for being refunded
to the bonded labourer.

Q5. Explain the authorities under the Bonded Labour Act.

The authorities under the Bonded Labour Act are the, vigilance committee, under sec 13 of the
act. Sec 13. Vigilance Committees.-(1) Every State Government shall, by notification in the
Official Gazette, constitute such number of Vigilance Committees in each district and each Sub-
Division as it may think fit. (2) Each Vigilance Committee, constituted for a district, shall consist
of the following members, namely:- (a) The District Magistrate, or a person nominated by him,
who shall be the Chairman; (b) Three persons belonging to the Scheduled Castes or Scheduled
Tribes and residing in the district, to be nominated by the District Magistrate; (c) Two social
workers, resident in the district, to be nominated by the District Magistrate; (d) Not more than
three persons to represent the official or nonofficial agencies in the district connected with rural
development, to be nominated by the State Government; (e) One person to represent the financial
and credit institutions in the district, to be nominated by the District Magistrate. (3) Each
Vigilance Committee, constituted for a Sub-Division, shall consist of the following members,
namely (a) the Sub-Divisional Magistrate, or person nominated by him, who shall be the
Chairman; (b) three persons belonging to the Scheduled Castes or Scheduled Tribes and residing
in the Sub-Division, to be nominated by the SubDivisional Magistrate; (c) two social workers,
resident in the SubDivision, to be nominated by the Sub- Divisional Magistrate; (d) Not more
than three persons to represent the official or non-official agencies in the Sub-Division connected
with rural development to be nominated by the District Magistrate; (e) One person to represent
the financial and credit institutions in the Sub-Division, to be nominated by the Sub-Divisional
Magistrate; (f) One officer specified under section 10 and functioning in the SubDivision. (4)
Each Vigilance Committee shall regulate its own procedure and secretarial-assistance, as may be
necessary, shall be provided by- (a) the District Magistrate, in the case of a Vigilance Committee
constituted for the district; (b) the Sub-Divisional Magistrate, in the case of a Vigilance
Committee constituted for the Sub-Division. (5) No proceeding of a Vigilance Committee shall
be invalid merely by reason of any defect in the constitution, or the proceedings, of the Vigilance
Committee. Functions of the vigilance committee are described under

sec 14 of the act . Sec 14. Functions of Vigilance Committees - (1) The functions of each
Vigilance Committee shall be,- (a) To advise the District Magistrate or any officer authorised by
him as to the efforts made, and action taken, to ensure that the provisions of this Act or of any
rule made there under are properly implemented; (b) To provide for the economic and social
rehabilitation of the freed bonded labourers; (c) To co-ordinate the functions of rural banks and
co-operative societies with a view to analysing adequate credit to the freed bonded labourer; (d)
To keep an eye on the number of offences of which cognizance has been taken under this Act;
(e) To make a survey as to whether there is any offence of which cognizance ought to be taken
under this Act; (f) to defend any suit instituted against a freed bonded labourer or a number of his
family or any other person dependent on him for the recovery of the whole or part of any bonded
debt or any other debt which is claimed by such person to be bonded debt. (2) A Vigilance
Committee may authorise one of its members to defend a suit against a freed bonded labourer
and the member so authorised shall be deemed, for the purpose of such suit, to be the authorised
agent of the freed bonded labourer.

Sec 15. Burden of proof.-Whenever any debt is claimed by a bonded labourer, or a Vigilance
Committee, to be a bonded debt, the burden of proof that such debt is not a bonded debt shall lie
on the creditor. The burden of proving that a particular debt is not a bonded debt will be on the
creditor.

Q6. Explain the features of Equal pay for equal wages Act

In order to ensure this, the Government of India has taken several steps for creating a congenial
work environment for women workers. A number of protective provisions have been
incorporated in the various Labour Laws. Article 39 of Constitution of India envisages that the
State shall direct its policy, among other things, towards securing that there is equal pay of equal
work for both men and women.

To give effect to this Constitutional provision and also to ensure the enforcement of ILO
Convention the Equal Remuneration Act, 1976 was enacted by the Parliament.

Equal Remuneration Act, 1976 provides for the payment of equal remuneration to men and
women workers and for the prevention of discrimination, on the ground of sex, against women in
the matter of employment and for matters connected therewith or incidental thereto.

As the Constitution of India, 1950 is the basic law of land which enshrines number of provisions
of prohibit gender discrimination and protect the interest of women, whether it is political field
or industrial field. The State under its constitutional power had formulated number of legislations
pertaining to women engaged in industrial activities.
Generally speaking, the wages of women have traditionally tended to lag behind those of men,
except in a very few cases. Moreover, the net earnings of women invariably happen to be lower
than those of men. Women all over the world, had till recently been very much inarticulate and
were prepared to accept lower wages even when they were employed on the same jobs as men.
Even in the economically and socially advanced countries while remarkable progress has been
made, discrimination still exists. The principle of equal value has not been always fully
implemented. In India, in the initial stages when legislation for the protection of workers was
hardly thought of, factory owners taking advantage of the backwardness and social handicaps of
the poorer classes, recruited women on a large scale at lower wages and made them work under
inhuman conditions .

There are various reasons, why the employment of women has not been up to the mark. In a
developing country like India the income, by and large, is low but social conventions weigh
against employment of women. Due to labour surplus the unemployment and under employment
problems, many men are available; hence, the problem of participation of women, economic
activity becomes serious. Secondly, technological changes, fixation of minimum work load and
standardisation of wages, rationalisation and mechanisation schemes and certain occupations
being found hazardous, they have necessitated retrenchment of women workers.

The economic reasons involving additional cost is an impediment to women employment. Some
employers recruit unmarried women only. on condition to resign their post on getting married.
This has been discriminatory, unfair and unjust.

SALIENT FEATURES OF THE ACT .

1. This act is a central act & is applicable to the whole of India.

2. Restrict the employer to create the terms &conditions of work in contract of services or work
of labour in contrary to equal pay for equal work doctrine & provision for equal remuneration
Act.

3. The act applies to all workers even if engaged for a day or few days.

4. When the employer does not comply with the act he will be liable to pay fine, imprisonment or
both as per sec 10 of the act .
5. Any settlement or any agreement with the employee that is harmful to the employee isn’t
allowed.

With a view to give effect to the goal of equal pay for equal work set out in clause (d) of Article
39 of the Constitution and Equal Remuneration Convention of the ILO, the President of India
promulgated on 26th September, 1975, the Equal Remuneration Ordinance, 1975 so that the
Directive Principle could be implemented in the year which was being celebrated as the
International Women’s year. The above Ordinance was later converted into an Act as Act No. 25
of 1976. The Equal Remuneration Act, 1976 provides for the payment of equal remuneration to
men and women workers and for prevention of discrimination, on the ground of sex, against
women in the matter of employment and for matters connected therewith or incidental thereto.

The Act ensures against discrimination in recruitment and promotion of men and women. It
provides for the setting up of Advisory Committees to promote employment opportunities for
women. It consists of III Chapters and 18 Sections.

Q7. Discuss the duties of the employers under the Equal Remuneration act of 1976.

Duties of Employer,

1. Duty of employer to pay equal remuneration to men and women workers for same work or
work of a similar nature. (Sec. 4)

As per Sec. 4 of the Act, no employer shall pay to any worker, employed by him in an
establishment or employment, remuneration, whether payable in cash or in kind, at rates less
favourable than those at which remuneration is paid by him to the workers of the opposite sex in
such establishment or employment for performing the same work or work of a similar nature.
Further no employer shall, for the purpose of complying with the provisions of sub-section (1),
reduce the rate of remuneration of any worker.

In M/s. Mackinnon Mackenzie and Co. Ltd. v. Andrey D’Costa and another, a female
confidential stenographer after the termination of her services filed a petition under sub-section
(1) of Section 7 of the Equal Remuneration Act, 1976 complaining that during the period of her
service she was paid remuneration at lesser rates than those of male stenographers who were also
performing same or similar work. The employer contended that the lady was working as a
Confidential Stenographer and is part of a different class. The court rejected the plea of the
employer that the woman was in a different class. It held, ‘If only women are working as
Confidential Stenographers it is because the management wants them there. Women are neither
specially qualified to be Confidential Stenographers nor disqualified on account of sex to do the
work assigned to the male Stenographers. Even if there is a practice in the establishment to
appoint women as Confidential Stenographer such practice cannot be relied on to deny them
equal remuneration due to them under the Act.’ Therefore, the Court applied the Equal
Remuneration Act to grant equal salary to female stenographers. Exception (Sec. 16) Regarding
the power to make declaration of differences Section 16 of the Act provides that: “Where the
appropriate Government is, on a consideration of all the circumstances of the case, satisfied that
the differences in regard to the remuneration, or a particular species of remuneration, or men and
women workers in any establishment or employment is based on a factor other than sex, it may,
by notification, make a declaration to that effect, and any act of the employer attributable to such
a difference shall not be deemed to be contravention of any provision of this Act.”

In C. Girijambal v. Government of AP, [(1981) 2 SCC. 155], it has been held that the principal
of equal pay for equal work is not applicable in professional services.

In M/s. Mackinnon Mackenzie and Co. Ltd. v. Andrey D’Costa and another, It was also held
that the Act does not permit the Management to pay to a section of its employees doing the same
work or work of a similar nature lesser pay contrary to Section 4(1) of the Act because of its
financial position which does not permit payment of equal remuneration to all. The applicability
of the Act does not depend upon the financial ability of Management to pay equal remuneration
as provided by the Act.

In Ashok Kumar Garg v. State of Rajasthan, [(1994) 3 SCC 357] it has been observed that the
question of equal work depends on various factors like responsibility, skill, effort and condition
of work.

In State of AP and others v. G Sreenivasa Rao & others, 1989 SCC (2) 290, It was held that
equal pay for equal work does not mean that all the members of the same cadre must receive the
same pay packet irrespective of their seniority, source of recruitment, educational qualifications
and various other incidents of service.
2. No discrimination to be made while recruiting men and women workers As provided under
Section 5 of the Act, no employer shall be allowed to make discrimination while making
recruitment for the same work or work of a similar nature or make any discrimination on the
basis of sex unless that particular employment of women or men is restricted or prohibited by
any statute. Therefore, in matter of recruitment policy and condition of service such as
promotions, training or transfer, the employer is not authorised to make discrimination against
women only on the basis of sex. This provision is similar to the provision contained in Article
16(1) of the Constitution of India, 1950. Provided that the provisions of this section shall not
affect any priority or reservation for scheduled castes or scheduled tribes, ex-servicemen,
retrenched employees of any other class or category of persons in the matter of recruitment to the
posts in an establishment or employment.

3. Duty to Maintain Registers As per section 8, it is the duty of every employer, to maintain
registers and other documents in relation to the workers employed by him in the prescribed
manner.

Q8. Discuss the causes of migration of the workers under the Interstate Migrant Workmen
Act.

The system of employment of Inter-State Migrant Labour (known in Orissa as Dadan Labour) is
an exploitative system prevalent in Orissa and in some other States. In Orissa, Dadan Labour is
recruited from various parts of the State through contractors or agents called Sardars/Khatadars
for work outside the State in large construction projects. This system lends itself to various
abuses. Though the Sardars promise at the time of recruitment that wages calculated on piece-
rate basis would be settled every month, the promise is not usually kept. Once the worker comes
under the clutches of the contractor, he takes him to a far-off place on payment of railway fair
only. No working hours are fixed for these workers and they have to work on all the days in a
week under extremely bad working conditions. The provisions of the various labour laws are not
being observed in their case and they are subjected to various malpractices.

The Twenty-eighth Session of the 'Labour Ministers' Conference (New Delhi, October 26, 1976)
which considered the question of protection and welfare of Dadan Labour recommended the
setting up of a small Compact Committee to go in to the whole question and to suggest measures
for eliminating the abuses prevalent in this system. The interState migrant workmen are
generally illiterate, unorganised and have normally to work under extremely adverse conditions
and in view of these hardships, some administrative and legislative arrangements both in the
State from where they are recruited and also in the State where they are engaged for work are
necessary to secure effective protection against their exploitation. The Compact Committee
which was constituted in February, 1977, therefore, recommended the enactment of a separate
Central Legislation to regulate the employment of interState migrant workmen as it was felt that
the provisions of the Contract Labour (Regulation and Abolition) Act, 1970, even after necessary
amendments would not adequately take care of the variety of malpractices indulged in by the
contractors/ Sardars/ Khatadars, etc., and the facilities required to be provided to these workmen
in view of the peculiar circumstances in which they have to work.

The recommendations of Compact Committee had been examined in consultation with the State
Governments and the relevant Central Ministries, Interstate Migrant Workmen (Regulation of
Employment and Conditions of Service) Act, 1979 was passed by both the houses of Parliament
and President of India gave his assent on 11- 06-1979.

Causes of Migration

Basically, situations of surplus labour arising from scarcity of agricultural land, inequitable land
distribution, low agricultural productivity, high population density and the concentration of rural
economy almost exclusively on agriculture frequently lead to an increase in out migration. This
combination of factors creates a force that is encountered more often in fragile environments.
Such as natural calamities like drought, floods, water lagging, river bank erosion etc. Another
important factor is down sizing of public sector jobs and overall stagnation in job creation
strategy in India and inadequate planning. Population explosion, rapid growth of labour forces,
high rate of unemployment, uneven growth and development, religious backwardness, poverty,
socio-economic and educational backwardness, illiteracy and acute scarcity of livelihood
resources are few more factors responsible for migration. In case of voluntary migration of
unorganised work force is mostly on account of wage variations.

The major causes are as follows:

1. Better employment opportunities and higher wages in economically developed regions and
non-availability of employment opportunities and consequent hardship in the under-developed
regions. 2. The economic necessity, inter-regional disparity in economic growth due to uneven
development and disparity between socioeconomic classes is the most important reason in view
of National Commission on Rural Labour. 3. Freedom of movement in any part of the territory of
lndia and freedom to pursue any avocation of choice as guaranteed by Article 19 of the
Constitution of lndia legally permit people to migrate for better job avenues and on account of
these constitutional provisions migration cannot be prohibited, although the migrant workers are
hardly aware of these provisions.Despite hardship and exploitation the income of migrant labour
may be generally higher than what they would have been able to earn without migration.
4.Features of Migrant Labour The basic features of migrant labour force may be identified. They
are generally unskilled, unorganised, uneducated and have low bargaining power, rather no
bargaining power, they are poor ignorant or in a socially or economically disadvantaged position
belonging to the lowest strata of society. It is useful to keep an eye on labour migration patterns
in India. The studies on Migrant Labour indicate that poor households participate extensively in
migration in India. When the male Worker migrates with his family he is more prone to
exploitationeconomic, social and otherwise. His children form part of child labour and
sometimes even bonded labour without any sympathetic look towards their tender age and
development. These unfortunate members of the society remain so unguarded that they become
victims of crushing accidents, killings and terrorist violence the people are shocked to read in
newspapers.

- Hardships and Problems Faced by Migrant Labour Migration itself is a tough undertaking as
the migrants travel with or without family and live in very hard and difficult conditions and face
strategy of hire and fire. They are required to work for long hours in the harsh and unhygienic
conditions. No shelters, no medical facilities, no drinking water, no welfare fund for migrant
workers, no creche for their children are provided. They are low paid and the contractors
generally make deductions from their wages and they face discriminatory treatment by the
employers. The accidental injuries are a common feature and fall short of adequate medical
assistance or compensation. Fuel, sanitation and insecurity (physical as well as job) are the major
problems they face un-armed, unguarded, un-heard, unwept and un-aware of their own rights
guaranteed by their own Constitution, welfare legislation and welfare schemes launched by their
own States. One may believe or not they face harassment, abuse, theft, forcible eviction or
demolition of their dwellings by urban authorities or police force under beautification schemes.
The sexual exploitation of women by masons, contractors and other powerful persons of the
locality is a routine but unreported in fear of untold consequences (loss of employment and
violence). The children are even more vulnerable to such abuse.

The labour welfare laws, Government welfare programmes and schemes are meaning less and
beyond their imagination on account of ignorance, illiteracy, lack of information social and
economic backwardness.

Q9. Explain the provisions relating to registration of establishments under the Interstate
Migrant workmen Act.

Registration of Establishment Employing Inter-State Migrant Workmen (Secs. 3-6)

The establishment proposing to employ inter-State Migrant workmen will be required to be

registered with registering officers appointed under the Central Government or the State
Governments, as the case may be, depending on whether the establishment falls under the
Central sphere or State sphere. Every principal employer of an establishment to which this Act
applies makes an application to the registering officers for the registration of the establishment.
The registration of the principal employer is compulsory if the Inter-State Migrant Workers are
employed or intended to be employed in his establishment. The registering officer shall register
the establishment and issue a certificate of registration within one month after the receipt of the
application from the principal employer if the application for registration is complete in all
respects. (Sec. 3 and 4)

The Act empowers the registering officer to revoke the registration certificate issued if he is
satisfied that the registration has been obtained by misrepresentation or suppression of any
material fact or it has become useless or ineffective for any other reasons, after giving the
principal employer an opportunity of being heard and after obtaining prior approval of the
appropriate Government. This Act also empowers the registering officer to suspend the operation
of the certificate pending such revocation for such period as may be specified in the order and
serve the order by the registered post to the principal employer. It must contain the reasons why
such action is being taken. (Sec. 5)
The Act prohibits the principal employer to employ Inter-State Migrant Workmen without
obtaining a certificate of registration. The Act does not prohibit employment of Inter-State
Migrant workers if the registration application is pending before the registering officer. (Sec. 6)

Q10. Discuss sexual Harassment of Women at Workplace as a Problem .

Sexual Harassment is one of the biggest problems our women are facing today in different
sectors of life. We rarely pass through a week without a reminder of these kinds of incidents
which should be termed as “social problems”.

It is a growing problem and all are trying their best to combat this problem by adopting new
policies and measures. The definition of sexual harassment varies from person to person and
from jurisdiction to jurisdiction. The definition of Sexual Harassment in simple words is “any
unwanted or inappropriate sexual attention. It includes touching, looks, comments, or gestures”.

A key part of Sexual Harassment is that it is one sided and unwanted. There is a great difference
between Sexual Harassment and Romance and Friendship, since those are mutual feelings of two
people. Often Sexual Harassment makes the victim feel guilty, but it is important for the victim
to remember that it is not her fault; the fault lies totally on the person who is a harasser. Sexual
Harassment affects all women in some form or the other. Lewd remarks, touching, wolf whistles,
looks are part of any women’s life, so much so that it is dismissed as normal. Working women
are no exception. In fact, working women most commonly face the backlash to women taking
new roles, which belong to male domains within patriarchy. Sexual Harassment at work is an
extension of violence in everyday life and is discriminatory, exploitative, thriving in the
atmosphere of threat, terror and reprisal. Many times fear is involved in Sexual Harassment
because it isn’t physical attraction, it’s about power. In fact, many Sexual Harassment incidents
take place when one person is in a position of power over the other; or when a woman has an
untraditional job such as police officer, factory worker, business executive, or any other
traditionally male job. It has also been observed that there are lots of sexual harassment incidents
taking place in the workplace, but the victims fear to report the same to the higher officials or the
concerned authorities. They fear to file a complaint against such offenders who does such
heinous acts. The fear is due to the fear of boss, fear of guilt in the society that they might have
to face, fear of being thrown out of the job or being demoted, fear that it will jeopardize their
career as in it will put a blot on their resume and would render them un-hirable. Some women
have lack of knowledge- they do now know what exactly qualifies a sexual harassment and fail
to report the same.

Every country is facing this problem daily. No female worker is safe and the sense of security is
lacking in them. There are certain developments in laws of many countries to protect women
workers from Sexual Harassment

Q11. Discuss the genesis of vishaka guidelines laid down by the SC of India.

VISHAKA v. STATE OF RAJASTHAN, 1997: A LAND MARK JUDGEMENT.

Indian judiciary has played significant role in the evolution of industrial jurisprudence. It has not
only made a distinct contribution to laws relating to industrial relations, social security and
minimum standards of employment but has innovated new methods and devised new strategies
for the purpose of providing access to justice to weaker sections of society who are denied their
basic rights and to whom freedom and liberty have no meaning. Indeed, the court assumed the
role of protectionist of the weaker by becoming the court for the poor and struggling masses of
the country. Further, the courts at times played a role of legislators where law is silent or vague.
Indeed, a number of legislation and legislative amendments have been made in response to the
call by the judiciary. The Act is one among such legislations.

The Genesis

In 1992, a rural level change agent, Bhanwari Devi, was engaged by the state of Rajasthan as a
Sathin (meaning ‘friend’) to work towards the prevention of the practice of child marriages.
During the course of her work, she prevented the marriage of a one year old girl in the
community. Her work was met with resentment and attracted harassment from men of that
community. Bhanwari Devi reported this to the local authority but no action was taken. That
omission came at great cost – Bhanwari was subsequently gang raped by those very men. The
Bhanwari Devi case revealed the ever-present sexual harm to which millions of working women
are exposed across the country, everywhere and everyday irrespective of their location. It also
shows the extent to which that harm can escalate if nothing is done to check sexually offensive
behaviour in the workplace.
Based on the facts of Bhanwari Devi’s case, a Public Interest Litigation (PIL) was filed by
Vishaka and other women groups against the State of Rajasthan and Union of India before the
Supreme Court of India. It proposed that sexual harassment be recognized as a violation of
women’s fundamental right to equality and that all workplaces/ establishments/ institutions be
made accountable and responsible to uphold these rights.

In this landmark judgment, the Supreme Court of India created legally binding guidelines basing
it on the right to equality and dignity accorded under the Indian Constitution as well as by the
UN Convention on the Elimination of All Forms of Discrimination against Women (CEDAW).

It included: • A definition of sexual harassment • Shifting accountability from individuals to

institutions • Prioritizing prevention • Provision of an innovative redress mechanism.

The Supreme Court defined sexual harassment as any unwelcome, sexually determined physical,
verbal, or non-verbal conduct. Examples included sexually suggestive remarks about women,
demands for sexual favours, and sexually offensive visuals in the workplace. The definition also
covered situations where a woman could be disadvantaged in her workplace as a result of threats
relating to employment decisions that could negatively affect her working life. It placed
responsibility on employers to ensure that women did not face a hostile environment, and
prohibited intimidation or victimization of those cooperating with an inquiry, including the
affected complainant as well as witnesses.

It directed for the establishment of redressal mechanism in the form of Complaints Committee,
which will look into the matters of sexual harassment of women at workplace. The Complaints
Committees were mandated to be headed by a woman employee, with not less than half of its
members being women and provided for the involvement of a third party person/ NGO expert on
the issue, to prevent any undue pressure on the complainant. The guidelines extended to all kinds
of employment, from paid to voluntary, across the public and private sectors.

Vishaka established that international standards/ law could serve to expand the scope of India’s
Constitutional guarantees and fill in the gaps wherever they exist. India’s innovative history in
tackling workplace sexual harassment beginning with the Vishaka Guidelines and subsequent
legislation has given critical visibility to the issue. Workplaces must now own their responsibility
within this context and ensure that women can work in safe and secure spaces.
Apparel Export Promotion Council v. A.K Chopra, (1999) 1 SCC 759 The Vishaka judgment
initiated a nationwide discourse on workplace sexual harassment and threw out wide open an
issue that was swept under the carpet for the longest time. The first case before the Supreme
Court after Vishaka in this respect was the case of Apparel Export Promotion Council v. A.K
Chopra. In this case, the Supreme Court reiterated the law laid down in the Vishaka Judgment
and upheld the dismissal of a superior officer of the Delhi based Apparel Export Promotion
Council who was found guilty of sexually harassing a subordinate female employee at the
workplace. In this judgment, the Supreme Court enlarged the definition of sexual harassment by
ruling that physical contact was not essential for it to amount to an act of sexual harassment. The
Supreme Court asserted that in case of a non-compliance or nonadherence of the Vishaka
Guidelines, it would be open to the aggrieved persons to approach the respective High Courts.

National Legislative Frameworks

In India, the Vishaka Guidelines was the first ever legal action that provided a broad framework
for preventing and addressing cases of sexual harassment of women within the workplace. It
recognized that sexual harassment of women in the workplace resulted in the violation of their
fundamental rights of gender equality, right to life and liberty, and the right to carry out any
occupation, trade or profession.

Q12. Is sexual harassment violation of Fundamental Rights guaranteed under the Indian
Constitution explain.

Sec 2 (n) “sexual harassment” includes any one or more of the following unwelcome acts or
behaviour (whether directly or by implication) namely :-

(i) physical contact and advances; or (ii) a demand or request for sexual favours; or (iii) making
sexually coloured remarks; or (iv) showing pornography; or (v) any other unwelcome physical,
verbal or nonverbal conduct of sexual nature; Since sexual harassment of women at employment
place is against the principle of gender equality, it is violation of the fundamental right,
particularly Articles 14, 15 of the Constitution which enshrined principles i.e., equality before
law and prohibition of discrimination on grounds of religion, race, caste, sex and place of birth.
Such sexual harassment also violates Article 21 of the Constitution which deals with the
protection of life and personal liberty.
As the Supreme Court observed in Vishaka v. State of Rajasthan supra that in the absence of
domestic law occupying the field to formulate effective measures to check the evil of sexual
harassment of working women at all work places, the contents of International Conventions and
norms are significant for purpose of interpretation of the guarantee of gender equality, right to
work within human dignity in Articles 14, 15, 19(1) (g) and 21 of the Constitution and the
safeguards against sexual harassment implicit therein. Any International Convention not
inconsistent with the fundamental rights and in harmony with its spirit must be read into these
provisions to enlarge the meaning and content thereof to promote the object of the constitutional
guarantee. This is implicit in Article 51(c) and the enabling power of the Parliament to enact
laws for implementing the International Conventions and norms by virtue of Article 253 read
with Entry 14 of the Union List in 7th Schedule of the Constitution. Article 73 also is relevant. It
provides that the executive power of the Union shall extend to the matters with respect to which
Parliament has power to make laws. The executive power of the Union is, therefore, available till
the Parliament enacts legislation to expressly provide measures needed to curb the evil.

The power of Supreme Court under Article 32 for enforcement of the fundamental rights and the
executive power of the Union have to meet the challenge to protect the working women from
sexual harassment and to make their fundamental rights meaningful. Governance of the society
by the rule of law mandates this requirement as a logical commitment of the Constitutional
scheme.

The meaning and content of the fundamental rights guaranteed in the Constitution of India are of
sufficient amplitude to encompass all the facets of gender equality including prevention of sexual
harassment or abuse.

Q13. Explain the committees under sexual harassment act of 2013

Internal Complainants Committee

(Sec. 4) Section 4 provides elaborated provisions for constitution of Internal Complainants

Committee (ICC) imposing statutory obligation on every employer of a workplace to constitute
the said committee for the purpose of effective implementation of the object of the Act. The
committee has to be constituted at each office or branch with 10 or more employees. The
committee will be headed by a senior-level woman employee. Details of the committee and
members must be displayed at the workplace. All employers must provide necessary facilities for
the ICC to deal with the complaint and to conduct an inquiry. Each ICC is required to prepare an
annual report to the employer.

The committee must have not less than two members from amongst employees who are
committed to the cause of women, or have experience in social work or have a good legal
knowledge. One member must be from an NGO or such Association. At least half of the
committee must comprise women. In case of establishments with less than ten members and no
complaints committee, the appropriate government must constitute a Local Complaints
Committee in every district.

Local Complaints Committee (Sec. 5-8)

Central and State Governments are mandated to notify either of the following individuals to be a
District Officer for each District to implement the requirements under the Act: • District
Magistrate • Additional District Magistrate • Collector • Deputy Collector. Every District Officer
must constitute a Local Complaints Committee (LCC) to receive complaints of sexual
harassment from establishments where the Internal Complaints Committee (ICC) has not been
constituted due to having less than 10 employees or if the complaint is against the employer
himself. Each LCC is required to prepare an annual report and submit it to the District Officer.
The District Officer must designate one nodal officer in every block, taluka and tehsil in rural or
tribal area and ward or municipality in the urban area, to receive complaints and forward it to the
concerned LCC within 7 days.

Q14. Discuss the provisions regarding the procedure for trial under the bonded labour act.

Sec 16. Punishment for enforcement of bonded labour.-any person, after the commencement of
this Act, compels any person to render any bonded labour shall be punishable with imprisonment
for a term which may extend to three years and also with fine which may extend to two thousand
rupees.

Punishment for compelling any person to rendor any bonded labour is imprisonment for three
years and a fine of two thousand rupeesSec 17. Punishment for advancement of bonded debt.-
Whoever advances, after the commencement of this Act, any bonded debt shall be punishable
with imprisonment for a term which may extend to three years and also with fine which may
extend to two thousand rupees. Sec 18. Punishment for extracting bonded labour under the
bonded labour system.- Whoever enforces after the commencement of this Act, any custom,
tradition, contract, agreement or other instrument, by virtue of which any person or any member
of the family of such person or any dependent of such person is required to render any service
under the bonded labour system, shall be punishable with imprisonment for a term which may
extend to three years and also with fine which may extend to two thousand rupees; and, out of
the fine, if recovered, payment shall be made to the bonded labourer at the rate of rupees five for
each day for which the bonded labour was extracted from him. Sec 19. Punishment for omission
or failure to restore possession of property to bonded labourers.-Whoever, being required by this
Act to restore any property to the possession of any bonded labourer, omits or fails to do so,
within a period of thirty days from the commencement of this Act, shall be punishable with
imprisonment for a term which may extend to one year, or with fine which may extend to one
thousand rupees, or with both; and, out of the fine, if recovered, payment shall be made to the
bonded labourer at the rate of rupees five for each day during which possession of the property
was not restored to him ; Sec 20. Abetment to be an offence. Whoever abets any offence
punishable under this Act shall, whether or not the offence abetted is committed, be punishable
with the same punishment as is provided for the offence which has been abetted.

Explanation.-For the purpose of this Act, "abetment" has the meaning assigned to it in the Indian
Penal Code (45 of 1860). Sec 21. Offences to be tried by Executive Magistrates.-(1) The State
Government may confer, on an Executive Magistrate, the powers of a Judicial Magistrate of the
first class or of the second class for the trial of offences under this Act; and, on such conferment
of powers, the Executive Magistrate on whom the powers are so conferred, shall be deemed, for
the purposes of the Code of Criminal Procedure, 1973 (2 of 1974), to be a Judicial Magistrate of
the first class, or of the second class, as the case may be. (2) An offence under this Act may be
tried summarily by a Magistrate.

Sec 22. Cognizance of offences.-Every offence under this Act shall be cognizable and bailable.

Sec 23. Offences by companies. (1) Where an offence under this Act has been committed by a
company, every person who, at the time the offence was committed, was in charge of, and was
responsible to, the company for the conduct of the business of the company, as well as the
company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against
and punished accordingly. (2) Notwithstanding anything contained in sub-section (1), where any
offence under this Act, has been committed by a company and it is proved that the offence has
been committed with the consent or connivance of, or is attributable to, any neglect on the part
of, any director, manager, secretary or other officer of the company, such director, manager,
secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be
proceeded against and punished accordingly. According to S. 25 of the Act, no civil court shall
have jurisdiction in respect of any matter to which any provision of this Act applies and no
injunction shall be granted by any civil court in respect of anything which is done or intended to
be done by or under this Act.

Q15. What is minimum wages & explain the theories & its kinds

Minimum wages means some of the most important theories of wages are as follows:

1. Wages Fund Theory

2. Subsistence Theory

3. The Surplus Value Theory of Wages

4. Residual Claimant Theory

5. Marginal Productivity Theory

6. The Bargaining Theory of Wages

7. Behavioral Theories of Wages.

How much and on which basis wages should be paid to the workers for services rendered by
them has been a subject matter of great concern among economic thinkers for a long time This
has given birth to several wage theories, i.e. how wages are determined. Out of them, some
important theories of wages are discussed here.

1. Wages Fund Theory: This theory was developed by Adam Smith (1723-1790). His theory
was based on the basic assumption that workers are paid wages out of a pre-determined fund of
wealth. This fund, he called, wages fund created as a result of savings. According to Adam
Smith, the demand for labour and rate of wages depend on the size of the wages fund.
Accordingly, if the wages fund is large, wages would be high and vice versa.

2. Subsistence Theory: This theory was propounded by David Recardo (1772-1823). According
to this theory, “The labourers are paid to enable them to subsist and perpetuate the race without
increase or diminution”. This payment is also called as ‘subsistence wages’. The basic
assumption of this theory is that if workers are paid wages more than subsistence level, workers’
number will increase and, as a result wages will come down to the subsistence level. On the
contrary, if workers are paid less than subsistence wages, the number of workers will decrease as
a result of starvation death; malnutrition, disease etc. and many would not prefer to marry. The
subsistence wages refers to minimum wages.

3. The Surplus Value Theory of Wages: This theory was developed by Karl Marx (1849-1883).
This theory is based on the basic assumption that like other article, labour is also an article which
could be purchased on payment of its price i e wages. This payment, according to Karl Marx, is
at subsistence level which is less than in proportion to time labour takes to produce items. The
surplus, according to him, goes to the owner. Karl Marx is well known for his advocating in the
favour of labour.

4. Residual Claimant Theory: This theory owes its development to Francis A. Walker (1840-
1897). According to Walker, there are four factors of production or business activity, viz., land,
labour, capital, and entrepreneurship. He views that once all other three factors are rewarded
what remains left is paid as wages to workers. Thus, according to this theory, worker is the
residual claimant.
5. Marginal Productivity Theory: This theory was propounded by Phillips Henry Wick-steed
(England) and John Bates Clark of U.S.A. According to this theory, wages is determined based
on the production contributed by the last worker, i.e. marginal worker. His/her production is
called ‘marginal production’. 6. The Bargaining Theory of Wages: John Davidson was the
propounder of this theory. According to this theory, the fixation of wages depends on the
bargaining power of workers/trade unions and of employers. If workers are stronger in
bargaining process, then wages tends to be high. In case, employer plays a stronger role, then
wages tends to be low.

7. Behavioural Theories of Wages: Based on research studies and action programmes conducted,
some behavioural scientists have also developed theories of wages. Their theories are based on
elements like employee’s acceptance to a wage level, the prevalent internal wage structure,
employee’s consideration on money or’ wages and salaries as motivators.

KINDS OF WAGES

Wages can broadly be divided into three categories ie Living Wages, Minimum Wages and Fair
Wages.

1. LIVING WAGES: Living wages means the wages that may be sufficient to provide for the
bare necessities as well as certain amenities for the employee. It means the level of wages that
may be sufficient to provide for the bare necessities and such amenities that are considered
necessary for the well-being of the employee and his family members in accordance with his
social status.

Article 43 of the Constitution of India States that, the state shall endeavour to secure by suitable
legislation or economic organisation or in any other way to all workers, agricultural, industrial or
otherwise work, a living wage, conditions of work ensuring decent standard of life and full
enjoyment of leisure and social and cultural opportunities.

The term Living Wages has been defined as, the Fair Wage Committee Report, “The living wage
should enable the male earner to provide himself and his family not merely the base essentials of
food, clothing and shelter but a measure of frugal comfort including education for the children,
protection against ill health, requirements of essential social needs, and measures of insurance
against the more import misfortunes against old age.”

These Standards of Living are classified as Follows:

1. Minimum Subsistence Level: When an employee gets the remuneration enough only for
providing the bare necessities for himself and his family members, is called minimum
subsistence level. In this situation, the remuneration of an employee can meet only the bare
requirements for himself and his family members.

2. Comfortable Level: When an employee can provide for all the bare necessities and can enjoy
all the amenities, it is called comfortable level, in this case, the remuneration of an employee is
so high that he can provide for all the bare necessities and meet all the requirements of comfort
for himself and his family members.

3. Poverty Level: When an employee is unable in providing for bare necessities also for himself
and his family members, this situation is known as poverty. In this situation, the remuneration of
an employee is less than he requires for providing food, clothes and shelter for himself and his
family members.

4. Semi-Comfortable Standard of Living: When the remuneration of an employee is sufficient for

providing the bare necessities and meeting social needs, it is called Semi-comfortable level. In
this case the employee can provide for the basic needs of clothes, food, and shelter for himself
and his family members. Besides he can meet his social needs also such as—maintenance,
education of children, travelling, insurance and recreation etc. On the basis of above
classification, the adequate wage in India can be determined easily. In the present economic
conditions of our country, Semi-comfortable level can be taken as the basis of wage
determination. The wages of employees should enable them to maintain their efficiency.

2. FAIR WAGES: It is very difficult to give a precise definition of Fair Wages because it varies
from country to country and from time to time. Therefore, it is possible that an amount of wages
that is fair for one country at one time may not be fair for another country or for next time.
Therefore, fair wages can be determined only after considering the specific circumstances of the
industry for which the wages are to be determined. The term ‘Fair Wages’ has been defined as
under:

Encyclopaedia of Social Sciences, “Fair wages mean the remuneration which is paid to the
workers for the jobs requiring equal efficiency, difficulty and pains.” On the basis of analytical
study of above definitions, it can be concluded that Fair Wages is the amount of wages that may
provide the basic needs and amenities to the workers according to their social status. Fair Wage
is more than minimum wages. Fair Wage is determined after considering several factors such as
the wages paid for similar work in other trades and industries requiring same amount of ability
and adjustment, productivity of the labour and paying capacity of the industry.

Fair Wage is determined between the lower and upper limits. The lower limit of wage is the
minimum wage and the upper limit is the capacity of the industry to pay.

Norms for the Fixation of Minimum Wages: The 15th Indian Labour Conference considered the
question of minimum wage and adopted a resolution, the relevant portion of which is reproduced
below: With regard to the minimum wage fixation it was agreed that the minimum wage was
need based” and should ensure the minimum human need of the industrial worker, irrespective of
any other considerations.

To calculate the minimum wage, the following should be taken into consideration.

(i) In calculating the minimum wage, the standard of working class family should be
taken to consist of three consumption units for earners; the earnings of women,
children and adolescents should be disregarded.
(ii) Minimum food requirements.
(iii) Clothing requirements
(iv) In respect of housing, houses provided under the Subsidised Industrial Housing
Scheme for low income groups.
(v) (v) Fuel, lighting and other, “Miscellaneous” items of expenditure should constitute
20 per cent of the total minimum wage.
3. MINIMUM WAGES:

According to Fair Wages Committee, “Minimum Wages should provide not only for the bare
necessities of a worker. It should also provide for the maintenance of efficiency of the
worker. From this point of view, minimum wages must be sufficient to provide for all
requirements of education, health and other essential amenities”.

Minimum Wages means the minimum payment to worker so that he may be able in
providing for basic needs for himself and his family members and to maintain his working
efficiency only. Some other scholars are of the view that minimum wages should also
provide for minimum education, medical facilities and other amenities. According to them,
minimum wages should ensure a minimum standard of living considering the health,
efficiency and well-being of the worker.

What should be the amount of fair wages is a question for which no specific answer can be
given. It depends upon the economic, social and geographical factors of the country. Besides,
it depends upon the size and paying capacity of the enterprise also. However, it can be said
that minimum wages is the amount that is enough for providing basic needs of the worker
and his family and to enable him to maintain his efficiency.

Q16. Explain the procedure for fixing & revising minimum rate of wages .

Section 3: Fixation of minimum rates of wages: Appropriate Government shall fix the
minimum rates of wages in respect of the employment specified in Part-I or II of the
Schedule and review at such intervals not exceeding (5) years, to revise the wages.

Section 4: Minimum rate of wages: The Minimum rate of wage may consist of basic rate of
wage and special allowance (cost of living allowance) to be notified by the commissioner of
labour once in six months effective 1st April and 1st October.

Section 5: Minimum rate of wages: Procedure for fixing and revising minimum wages (a)
Appoint as many committees and sub-committees as it considers necessary to hold enquiries
and advise it in respect of such fixation or revision, as the case may be, or (b) By notification
in the Official Gazette, publish its proposals for the information of persons likely to be
affected thereby and specify a date, not less than two months from the date of the
notification, on which the proposals will be taken into consideration.

Procedure for fixing and revising minimum wages. (1) In fixing minimum rates of wages in
respect of any scheduled employment for the first time under this Act or in revising
minimum rates of wages so fixed, the appropriate Government shall either, (a) Appoint as
many committees and sub-committees as it considers necessary to hold enquiries and advise
it in respect of such fixation or revision, as the case may be, or (b) By notification in the
Official Gazette, publish its proposals for the information of persons likely to be affected
thereby and specify a date, not less than two months from the date of the notification, on
which the proposals will be taken into consideration. RECOMMENDATIONS AND
SUGGESTIONS REGARDING NORMS FOR FIXATION AND REVISION OF
MINIMUM WAGES, There are no norms prescribed for fixing/revising minimum rates of
wages so far under Minimum Wages Act, 1948 and the Act is silent on the point of gradation
of wages according to the Skill level. The Indian labour conference in the year 1957, the
Indian Labour Conference has recommended to adopt the following 5 elements while fixing
minimum wages:- 1) For the purpose of fixation of minimum wages, a family is taken, as a
norm, to include three units (one earner, wife and children) 2) Dr. Aykrovd’s prescription of
the average of 2700 calories of nutrition may be taken as the standard for calculating the
minimum nutritional requirements. 3) Provision of 72 yards of cloth by considering a family
as four units in connection with the requirements of 18 yards of cloth per capita, per annum.
4) For the purposes of fixation of house rent, the rates of rent granted by Industrial Housing
Plan may be considered. 5) 20 per cent of the minimum wages may be ear-marked for
meeting the expense on fuel, light and other ancillaries.

The Hon’ble Supreme Court in the case of Reptakos Brett and Co. Ltd., while affirming the
use of the five above norms prescribed in the 15th Indian Labour conference for fixation of
Wage has directed that keeping in view the Socio economic aspect “25% of the Total
minimum wages shall also be taken into account for Children education, medical
requirement, minimum recreation including festivals/ceremonies and provision for old age,
marriage etc.,” The above norms are only useful for arriving the wage for the lowest category
worker.
THE GUIDELINES OF GOVERNMENT OF INDIA

The Principal Advisor, Planning Commission, Government of India, New Delhi in his letter
dated 18-09-2006 had informed that it is proposed to have the wage differential at 15 per cent
between unskilled to Semi- Skilled and semi-skilled to Skilled. He has also stated that in the
year 1999-2000 a study on the pay differences was carried out through job Evaluation
Technique and it was proposed to have pay difference 19- 20 percent between Unskilled to
Semi-Skilled and 1213 percent between Semi Skilled to Skilled.

10 NATIONAL FLOOR LEVEL WAGE FIXED BY THE GOVERNMENT OF INDIA The

Government of India has stated that while reviewing the movement of Consumer Price Index
for Industrial Workers (CPI-IW) during October 2012 to March, 2013 over the period
October 2010 to March 2011, it was observed that the National Floor Level Minimum Wage
has been revised upwards from Rs.115/- to Rs.137/- per day w.e.f 01.07.2013. The minimum
wage of the lowest categories in all scheduled employments reached the National Floor Level
in Andhra Pradesh. It is, however, clarified that the National Floor Level Minimum Wage, is
a non-statutory measure to ensure upward revision of minimum wages in different in States
& union territories. Thus, the State Governments are persuaded to fix minimum wages such
that in none of the scheduled employments, the minimum wage is less than National Floor
Level Minimum Wage. This method has helped in reducing disparity among different rates
of minimum wages to some extent.

Commissioners of Labour, Deputy Commissioners of Labour and Joint Commissioners of

Labour as Inspectors under Section- 19 in their respective jurisdictions. The inspector under
the Act is responsible to ensure payment of minimum wages by conducting regular
inspections. He should verify maintenance of certain registers like muster roll and wages
register and to secure to every employee a wage slip every month. Department under
Payment of Wages Act, 1936 and the provisions of Payment of Wage Department to all
establishments engaged in scheduled employments, all factories, all industries and all shops
and establishments. It is required to pay wages to every employee by remittance in the bank
account of the employee in accordance with the said and the inspectors under the Act should
ensure the same towards simplification of enforcement.
Q17. What is bonus explain the provision relating to maximum amount of bonus
payable.

Bonus means profit sharing. The bonus act provides 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. Sec 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.

Sec 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 (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. The provision for paying maximum bonus is provided under, sec 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.

Q18. Explain the provision relating to determination of amount of gratuity.

Section 7 ,Duty to Pay Gratuity (Determination of the amount of grat uity) (1)A person who
is eligible for payment of gratuity under this A ct orAny Person authorised, in writing to
acton his behalf shall send a written application to the employer, within such time and in
such form, as may be prescribed, for payment of such gratuity.

(2)As soon as gratuity becomes payable, the employer shall, determine the amount of
gratuity and give notice in writing to the person to whom the gratuity is payable and also to
the controlling authority specifying the amount of gratuity sod determined.
(3) The employer shall arrange to pay the amount of gratuity within thirty days from the date
it becomes payable to the person to whom the gratuity is payable.

(4) If the amount of gratuity payable is not paid by the employer within the period of 30
days , the employer shall pay from the date on which the gratuity becomes payable to the
date on which it is paid, simple interest at such rate, not exceeding the rate notified by the
Central Government from time to time for repayment of long-term deposits. Howeverno such
interest shall be payable if the delay in the pa yment is due to the fault of the employee and
the employer hasobtained permission in writing f rom the controlling authority for the
delayed payment on this ground.

(5) If there is any dispute to the amount of gratuity payable to an empl oyee under this Act or
as to the admissibility ofany claim of, or in relation to, an e mployee for payment of gratuity,
or as to the person entitled to receive the gratuity,t he employer shall deposit with the
controlling authority such amount as he admits t o be payable by him as gratuity. Where
there is a dispute the employer or employee or any other pers on raising the dispute may
make an application to the controlling authority for deciding the dispute. The controlling
authority shall, after due inquiry and after giving the parties to the dispute a reasonable
opportunity of being heard, determine the matter or matter s in dispute and if, as a result of
such inquiry any amount is found to be payable to the employe e, the controlling authority
shall direct theemployer to pay such amount or, as the case may be, such amount as reduced
by the amount already deposited bythe employer. The controlling authority shall pay the
amount deposited, including th e excess amount, if any, deposited by theemployer, to the
person entitled thereto. As soon as may be after a deposit is made the controlling authority
sha ll pay the amount of the deposit—

(i) To the applicant where he is the employee; or

(ii) Where the applicant is not the employee, to the nominee or, a s the case may be, the
guardian of such nominee or heir of the employee if the controlling authority is satisfied that
there is no dispute as to the right of theapplicati on to receive the amount of gratuity.

In H. Gangahanume Gowda V/S Karnataka Agro Industries Corporation Ltd , (2003, SCC
257) where the appellant was under suspension from 15/3/1999 to 21/5/1999 on attaining the
age of Superannuation & he retired from the service of the respondents corporation on
1/1/2000 & payment of gratuity was not made . the court held that the employer to pay
gratuity u/sec7 & 8 of the act, the employer whether any application has been made or not is
obliged to make determination of gratuity & give notice to the employee, & arrange the
payment of gratuity to the employee to whom the amount is due within 30 days from the date
it becomes payable till the date it is payed a simple interest as specified by the central Govt if
repayment for long time due. The employer is not entitled to pay on the fault of the employee
& the employer has obtained permission to do so in writing from the controlling Authority
for the delayed payment. Q19. Discuss the provisions relating to recovery of gratuity under
the gratuity act. Section 8: Recovery of gratuity. If the amount of gratuity payable under this
Act is not paid by the employer, within the prescribed time, to the personentitled thereto, the
controlling authorit y shall, on an application made to it in this behalf by the aggrieved
person, issue a certificate for that amount to the Collector who shall recover the same,
together with compound intere st thereon atsuch rate as the Central Government may, by
notification, specify, from the date of expiry of the prescribed time asarrears of land revenue
and pay the same to the perso n entitled thereto.Provided that the controlling authority
shall,before iss uing a certificate under this section, give the employer a reasonable op
portunity of showing causeagainst the issue of such certificate. Provided further that the
amount of interest payable under this sectio n shall, in no case exceed the amount of gratuity
payable under this Act. Section 9: Penalties.

(1) Whoever, for the purpose of avoiding any payment to be made b y himself under this Act
or of enabling any otherperson to avoid such payment, knowi ngly makes or causes to be
made any false statement or false representat ion shallbe punishable with imprisonment for a
term which may exten d to six months or with fine which may extend to tenthousand rupees
or with both.

(2) An employer who contravenes, or make default in complying w ith, any of the provisions
of this Act or anyrule or order made thereun der shall be punishable with imprisonment for a
term which shall not be less than three monthsbut which may extend to one year, or with fine
which shall not be less than ten thous and rupees but which may extend to twenty thousand
rupees, or with both. Provided that where the offence relates to non-payment of any gratuity
payable under this Act, the employer shall be punishable with imprisonment, for a term
which shall not be less than six months but which may extend to two years unless the Court
trying the offence, for reasons to be recorded by it in writing, is of opinion that a lesser term
of imprisonment or the imposition of a fine would meet the ends of justice.

Q20. Under what circumstances the employer is exempted from paying gratuity under
the act.

Sec10, states about the exemption of employer from liability in certain cases.-

Where an employer is charged with an offence punishable under this Act, he shall be entitled,
upon complaint duly made by him and on giving to the complainant not less than three clear
days' notice in writing of his intention to do so, to have any other person whom he charges as
the actual offender brought before the Court at the time appointed for hearing the charge; and
if, after the commission of the offence has been proved, the employer proves to the
satisfaction of the Court-

(a) That he has used due diligence to enforce the execution of this Act; and

(b) That the said other person committed the offence in question without his knowledge,
consent or connivance, that other person shall be convicted of the offence and shall be liable
to the like other punishment as if he were the employer and the employer shall be discharged
from any liability under this Act in respect of such offence, Provided that in seeking to prove
as aforesaid, the employer may be examined on oath and his evidence and that of any witness
whom he calls in his support shall be subject to cross examination on behalf of the person he
charges as the actual offender and by the prosecutor , Provided further that, if the person
charged as the actual offender by the employer cannot be brought before the Court at the time
appointed for hearing the charge, the Court shall adjourn the hearing from time to time for a
period not exceeding three months and if by the end of the said period the person charged as
the actual offender cannot still be brought before the Court, the Court shall proceed to hear
the charge against the employer and shall, if the offence be proved, convict the employer.
Q21. Explain the constitutional provisions regarding child labour

A child is a person who is below the age of 14 yrs of age. Child is been defined under sec
2(ii) of the child labours act 1986. A "child" means a person who has not completed his
fourteenth year of age ;

Legal definition of child, Section 2 (2) of Shops and Establishment act – 1948 states that
child is a person who hasn’t completed 15 years of his age.

Article 45 of the Constitution of India defines child as a person younger than 14 years. Mines
Act – 1952 says that a child is a person not older than 16 years. According to the Suppression
of Immoral Traffic in Women and Girls Act 1956, a child is a person who is not 21 Years
old. According to the Juvenile Justice (care and Protection of a Child) Act, a child is a person
who has not completed18 years of age.

LAW DEFINES CHILD LABOUR AS under the Act, „Child‟ means a person who has not
completed his fourteenth year of age. Any such person engaged for wages, whether in cash or
kind, is a child worker. According to UNICEF, all the children not being provided education
at a school are considered as Child Labours. International conventions define children as
people aged 18 and under. Individual governments may define "child" according to different
ages or other criteria. "Child" and "childhood" are also defined differently by different
cultures. A "child" is not necessarily defined by a fixed age. Social scientists point out that
children’s abilities and maturities vary so much that defining a child’s maturity by calendar
age can be misleading.

Constitutional provisions regarding child labour:

Several articles of Indian Constitution provide protection and provisions for child labour.

Article 15 (3) The State is empowered to make the special provisions relating to child, which
will not be violative of right to equality.

Article 21 No person shall be deprived of his life or personal liberty, except according to
procedure established by law. The Supreme Court held that „life‟ includes free from
exploitation and to live a dignified life.
Article 21A (Right to Education) The State shall provide free and compulsory education to
all children of the age of six to fourteen years, in such manner as the State may, by law,
determine. Where children are allowed to work, in such establishment, it is the duty of
employer to make provisions for the education of child labourer.

Article 23 Traffic in human beings and beggar and other similar forms of forced labour are
prohibited and any contravention of this prohibition shall be an offence punishable in
accordance with law.

Article 24 (Prohibition of Employment of Children in Factories, etc.) No child below the age
of 14 years shall be employed to work in any factory or mine or engaged in any other
hazardous employment. The Supreme Court held that “hazardous employment” includes
construction work, match boxes and fireworks therefore; no child below the age of 14 years
can be employed. Positive steps should be taken for the welfare of such children as well as
for improving the quality of their life.

Article 39 (e) The State shall, in particular, direct its policy towards securing the health and
strength of the tender age of children are not abused and that citizens are not forced by
economic necessity to enter avocations unsuited to their age or strength.

Article 39 (f) The State shall, in particular, direct its policy towards securing that children are
given opportunities and facilities to develop in a healthy manner and in conditions of
freedom and dignity; and that childhood and youth are protected against exploitation and
against moral and material abandonment. Article 45 The State shall endeavour to provide
early childhood care and education for all children until they complete the age of six years.

Article 51A(e) It shall be the duty of every citizen of India, who is a parent or guardian to
provide opportunities for education to his child or ward as the case may be, between the age
of six and fourteen years.

BandhuaMuktiMorcha Vs Union of India (AIR 1984 SC 802) In this case the Supreme
Court of India stated that if no steps are taken under Bonded Labour System Act – 1976 by
the Government then it would be a violation of Article 23 of the Constitution. Article 23
states that children should not be forced to work at cheap wages due to their economical or
social disadvantage.

M. C. Metha Vs State of Tamil Nadu, 1991 The Supreme Court has not allowed children to
work in a prohibited occupation. According to the judges, "the provisions of Article 45 in the
Directive Principles of State Policy has still remained a far cry and according to this
provision all children up to the age of 14 years are sponsored to be in school, economic
necessity forces grown up children to seek employment.

Q22. Explain the rights available to child labour .

Rights of Children under National Laws: India has also taken effective measure under
national level. In order to eliminate child labour, India has brought constitutional, statutory
development measures. The Indian constitution has consciously incorporated provisions to
secure compulsory elementary education as well as the labour protection for the children.
Labour commission in India have gone into the problems of child labour and have made
extensive recommendations.

The constitution of India too provides certain rights to children and prohibits child labour
such provisions are as follows:

1. No child below the age of 14 years shall be employed in any factory or mine or engaged in
any other hazardous work.

2.state in particular shall direct its policy towards securing that the health and strength of
workers, men and women and the tender age of the children are not abused and that citizen
are not forced by economic necessity to enter vocations unsuited to their age or strength.

3. Children are given opportunities and facilities to develop in a healthy manner and in
conditions of freedom and the dignity and that childhood and youth are protected against
exploitations and against moral and material abandon.

4. The state shall endeavour to provide, within the period of 10 years from the
commencement of constitution, free and compulsory education for all children until they
complete the age of 14 years. 5. The state shall provide free and compulsory education to all
children between the ages of 6 to 14 years as such a manner as the state may by law
determine.

6. Who is parent or guardian to provide opportunities for education to his child or the case
may be, ward between the age of six and fourteen years. There are wide range of laws, which
guarantee the substantial extent the rights and entitlement as provided in the constitution and
in the UN convention. Some of them are given below:

1. The apprentices Act 1861

2. The child labour Act 1986

3. The child marriage restraint act 1929

4. The children (pledging of labour) Act 1929

5. Children Act 1960 6. The guardian and wards Act 1890

7 .The Hindu minority and guardianship Act 1956

8 .The Hindu Adoption and maintenance Act 1956

9. The Immoral Traffic (prevention) Act 1956

10. Juvenile justice Act 1986

11. The Orphanages and other charitable Homes (supervision and control) Act 1960

12. Probation and offenders Act 1958 13. Reformatory schools Act 1857

14. The women's and children's institutions (licensing) Act 1956

15. The young persons (harmful publications) Act 1956

Q23. Discuss the provisions regarding prohibition of appointment of Child Labour under the
Child Labour Act 1986.

Section 3-6 of the act deals with the provisions of prohibition of appointment of Child
Labour . Sec 3. Prohibition of employment of children in certain occupations and processes.
No child shall be employed or permitted to work in any of the occupations set forth in Part A
of the Schedule or in any workshop wherein any of the processes set forth in Part B of the
Schedule is carried on : Provided that nothing in this section shall apply to any workshop
wherein any process is carried on by the occupier with the aid of his family or to any school
established by, or receiving assistance or recognition from, Government.

Sec 4of the act states about the Power to amend the Schedule. The Central Government, after
giving by notification in the Official Gazette, not less than three months' notice of its
intention so to do, may, by like notification, add any occupation or process to the Schedule
and thereupon the Schedule shall be deemed to have been amended accordingly.

Sec 5 of the act states about Child Labour Technical Advisory Committee, constructed under
the act ,

(1) The Central Government may, by notification in the Official Gazette, constitute an
advisory committee to be called the Child Labour Technical Advisory Committee (hereafter
in this section referred to as the Committee) to advise the Central Government for the
purpose of addition of occupations and processes to the Schedule.

(2) The Committee shall consist of a Chairman and such other members not exceeding ten, as
may be appointed by the Central Government.

(3) The Committee shall meet as often as it may consider necessary and shall have power to
regulate its own procedure.

(4) The Committee may, if it deems it necessary so to do, constitute one or more sub-
committees and may appoint to any such subcommittee, whether generally or for the
consideration of any particular matter, any person who is not a member of the Committee.

(5) The term of office of, the manner of filling casual vacancies in the office of, and the
allowances, if any, payable to, the Chairman and other members of the Committee, and the
conditions and restrictions subject to which the Committee may appoint any person who is
not a member of the Committee as a member of any of its sub-committees shall be such as
may be prescribed.
Q24. Liability on employing child labour.

Section 14 of the child labour act talks about penalties on appointment of children at work
under the legislation. (1) Whoever employs any child or permits any child to work in
contravention of the provisions of Section 3 shall be punishable with imprisonment for a term
which shall not be less than three months but which may extend to one year or with fine
which shall not be less than ten thousand rupees but which may extend to twenty thousand
rupees or with both. (2) Whoever, having been convicted of an offence under Section 3,
commits a like offence afterwards, he shall be punishable with imprisonment for a term
which shall not be less than six months but which may extend to two years.

(3) Whoever, (a) fails to give notice as required by Section 9, or (b) Fails to maintain a
register as required by Section 11 or makes any false entry in any such register ; or (c)Fails to
display a notice containing an abstract of Section 3 and this section as required by Section 12
; or (d) fails to comply with or contravenes any other provisions of this Act or the rules made
there under, shall be punishable with simple imprisonment which may extend to one month
or with fine which may extend to ten thousand rupees or with both. Under sec 15, it consists
modified application of certain laws in relation to penalties. (1)Where any person is found
guilty and convicted of contravention of any of the provisions mentioned in sub-section (2),
he shall be liable to penalties as provided in sub-sections (1) and (2) of Section 14 of this Act
and not under the Acts in which those provisions are contained. (2) The provisions referred to
in sub-section (1) are the provisions mentioned below: (a) Section 67 of the Factories Act,
1948 (63 of 1948) ; (b) Section 40 of the Mines Act, 1952 (35 of 1952) ; (c) Section 109 of
the Merchant Shipping Act, 1958 (44 of 1958) ; and (d) Section 21 of the Motor Transport
Workers Act, 1961 (27 of 1961). Sec 16 provides for procedure relating to offences. (1) Any
person, police officer or Inspector may file a complaint of the commission of an offence
under this Act in any court of competent jurisdiction. (2) Every certificate as to the age of a
child which has been granted by a prescribed medical authority shall, for the purposes of this
Act, be conclusive evidence as to the age of the child to whom it relates. (3) No court inferior
to that of a Metropolitan Magistrate or a Magistrate of the first class shall try any offence
under this Act.
Q25. Explain contract labour & provisions relating to registration of establishments
under the contract labour act.

The present day and age of extensive globalisation has resulted in people and corporate
increasing their pace of production in order to maximise their profits. This has resulted in
careful cost cutting by companies thus promoting contract labour. Contract workers form a
large part of the total workforce in India. Most of these workers are engaged in seasonal or
occasional employment as and when they are called for. The primary sectors that mainly
function through contract labour are loading and unloading of goods and materials; catering
including canteen services; security services; civil and construction works; electrical/ air
conditioning/ painting/whitewashing; house-keeping services; computer maintenance, etc.
Contract labourers are usually recruited through contractors who work as a link between the
actual employers and the workers.

For the purpose of securing the rights and address the welfare of contract labourers, the
Government deemed it fit to pass the Contract Labour (Regulation and Abolition) Act 1970.
Contract Labour (Regulation and Abolition) Act, 1970 defines contract labour as under: “A
workman shall be deemed to be employed as contract labour in or in connection with the
work of an establishment when he is hired on or in connection with such work by or through
a contractor, with or without the knowledge of the principal employer.” Based on the above
definitions, the ingredients of contract labour may be inferred as follows: That the person
concerned must be a workman; That he must be employed in or in connection with the work
of an establishment; That the employment may be by or through a contractor; and That the
employment as such may be with or without the knowledge of the principal employer.
Registration of establishments and licensing of contractors Section 6 provides for the
appointment of registering officers by the appropriate Government for the purposes of this
Act.

If a principal employer falls within the vicinity of this Act then, such principal employer and
the contractor will have to apply for registration of the establishment and license respectively
with the appropriate authorities. The Act also provides for temporary registration in case the
contract labour is hired for a period not more than 15 days. Any change occurring in the
particulars specified in the Registration or Licensing Certificate needs to be informed to the
 concerned Registering Officer within 30 days of such change. From a combined reading of
Section 7 and Rules 17 & 18 of the Contract Labour (Regulation and Abolition) Central
Rules, 1971 (hereinafter referred to as the Rules), it appears that the Principal Employer has
to apply for registration in respect of each establishment. Another important point to note is
that a License issued for one contract cannot be used for an entirely different contractual
work even though there is no change in the Establishment. The law mandates that every
establishment to which the Act applies has to register with the registering officer. The
government also has the power to prohibit employment of contract labour in any process,
operation or other work in any establishment. The Act further stipulates that no Contractor to
whom the Act applies can undertake or execute any work through contract labour without
having a license issued by the licensing officer. Failure to obtain a licence amounts to a
criminal offence under Sections 16 to 21 of the Act read with Rules 41 to 62 of the Rules.
Sec 8, states abput Revocation of registration in certain cases.- If the registering officer is
satisfied, either on a reference made to him in this behalf or otherwise, that the registration of
any establishment has been obtained by misrepresentation or suppression of any material
fact, or that for any other reason the registration has become useless or ineffective and,
therefore, requires to be revoked, the registering officer may, after giving an opportunity to
the principal employer of the establishment to be heard and with the previous approval of the
appropriate Government, revoke the registration. 9. Effect of nonregistration.- No principal
employer of an establishment, to which this Act applies, shall—

(a) in the case of an establishment required to be registered under section 7, but which has
not been registered within the time fixed for the purpose under that section, (b) in the
case of an establishment the registration in respect of which has been revoked under
section 8, employ contract labour in the establishment after the expiry of the period
referred to in clause
(b) (a) or after the revocation of registration referred to in clause (b), as the case may be.

Q26 discuss the concept of payment of wages to the contract labours under the contract
labour act 1970.

Every contractor has been made responsible for payment of wages to each worker employed by
him as contract labour. For ensuring the regular payment of the minimum wages to the contract
labour, the Act provides that the wages to the contract labour are to be paid in the presence of the
authorized representative of the principal employer, who has to certify that the wages as per the
stipulation have really been paid to the contract labour. If the Contractor fails to make payment
of wages within the prescribed period or makes short payment, then the Principal Employer shall
be liable to make payment of wages in full or the unpaid balance due, as the case may be, to the
contract labour employed by the Contractor but he can recover the amount so paid from the
Contractor. A Principal Employer is liable to compensate underpaid contract labour. The contract
labour that performs same or similar kind of work as regular workmen will be entitled to the
same wages and service conditions as regular workmen as per the Contract Labour (Regulation
and Abolition) Central Rules, 1971. This issue has been dealt with extensively in the next section
of the paper. The basic provisions regarding the payment of wages have been discussed in the
previous chapter. This section deals with certain landmark cases pertaining to this issue.

In Senior Regional Manager, Food Corporation of India, Calcutta v. Tulsi Das Bauri, the
employer contended that arrears of wages are not wages within the meaning of Section 21 of
the Act, therefore, the employer is not liable to make the payment to the respondent of the
same. The Supreme Court held that the principal employer is statutorily responsible to ensure
payment of wages in case of default by the contractor, and the term ‘wages’ includes the
arrears of wages. In B.H.E.L. Workers’ Association Haridwar and Ors. v. Union of India,
there was arbitrariness in classifying 1000 workers out of the 16,000 odd workers as contract
labourers and thereby receiving salary lesser than that of the directly employed workmen.
Although they all did the same work as the regular workers directly employed by the
undertaking, under the same conditions of service, their wages bore no comparison to those
paid to the regular workers. They were paid their salary after deducting a large commission
out of it.

The Court held that no particular distinction should be made on the basis of contract labour.
Contract labourers are entitled to the same wages, holidays, hours of work, and conditions of
service as are applicable to the directly employed workmen by the principal employer. They
are entitled to recover their wages and their conditions of service in a manner akin to the
workers employed by the principal employer under the appropriate industrial and labour
laws. In spite of the steps taken by the Parliament to promote the well being of contract
 labourers, there exist certain problems in the industrial sector, which haven’t been overcome
yet. These problems have been enumerated in this section. Derisory Wages- According to the
Act, the companies are supposed to adhere to the minimum wage norms. However, it has
been found that there are workers earning less than Rs 1000 per month, which evidently does
not satisfy the minimum wage criterion. A category of firms that largely comprises small
private firms prefer employing uneducated workers who can be paid even less than minimum
wages. Much of the migrant labourers from rural areas, especially the eastern and
northeastern regions of India and also from Nepal, fall in this category, who migrate to urban
establishments in search of jobs and a better standard of living but are eventually exploited
due to lack of awareness.

Q27. Discuss the provisions relating to prohibition of employment of women under to the
meternity Benefit Act 1961 .

No employer shall knowingly employ a woman in any establishment during the six weeks
immediately following the day of her delivery, or miscarriage, nor shall any woman work during
this period. Besides, no pregnant woman shall, on a request made by her in this behalf, be
required by her employer to do any work of arduous nature, or that 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 likely to cause her miscarriage or otherwise to adversely affect
her health, during the one month immediately preceding the six weeks before the date of her
expected delivery. Section 4 absolutely prohibits any women from working in an establishment
during the six weeks after her delivery or miscarriage. Employers are forbidden to knowingly
employ women during this period and employed women are required to take paid six-weeks
leave. Pregnant women have the further option of taking paid leave of absence up to six weeks
before their expected date of delivery under Section 6(2). All working women are thus eligible
for a total of 12 weeks of paid maternity leave, 6 weeks before and 6 weeks after delivery. A
woman worker is entitled to maternity protection, as per the mandate of the Act she must receive
at least 12 weeks of leave with pay . The period referred to in sub-section (3) shall be –

(a) at the period of one month immediately preceding the period of six weeks, before the date
of her expected delivery; (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. Every woman shall be
entitled to, and her employer shall be liable for, the payment of Maternity benefits at the rate
of the average daily wage for the period of her actual absence immediately preceding and
including the day of her delivery and for the six weeks immediately following that day, says
the provision under Section 5. However no woman shall be entitled to these benefits unless
she has actually worked in an establishment of the employer from whom she claims them, for
a period of not less than 80 days in the twelve months immediately preceding the date of her
expected delivery. The maximum period for which any woman shall be entitled to Maternity
benefits shall be 84 days. In case a woman dies during this period, then the Maternity benefit
shall be payable only for the days up to, and including, the day of her death. Similarly, if a
woman dies during her delivery, or during the period of Implementation of Maternity Benefit
Act of six weeks immediately following the date of delivery, leaving behind in either case the
child, the employer shall be liable for the Maternity benefits for the entire period of six
weeks immediately following the day of her delivery. Besides a woman suffering from
illness arising out of pregnancy, delivery, premature birth of child or miscarriage shall be
entitled to an additional leave with wages at the rate of Maternity benefit for a maximum
period of one month under Section 10. Regarding nursing breaks Section 11 provides for two
additional breaks of the prescribed duration for nursing the child until the child attains the
age of 15 months. Moreover, deduction of wages in certain cases has been made unlawful. A
woman cannot be discharged or dismissed by the employer when she absents herself from
work in accordance with the provisions of this Act.

Q28. Discuss the Impact of globalisation on industry and labour. Concept of

Globalisation.

Globalisation essentially means integration of the national economy with the world economy.
It implies a free flow of information, ideas, technology, goods and services, capital and even
people across different countries and societies. It increases connectivity between different
markets in the form of trade, investments and cultural exchanges. Effects of Globalisation on
Industry and Labour After Independence in 1947 Indian government faced a significant
problem to develop the economy and to solve the issues. Considering the difficulties
pertaining at that time government decided to follow LPG Model. The Growth Economics
conditions of India at that time were not very good. This was because it did not have proper
resources for the development, not regarding natural resources but financial and industrial
development. At that time India needed the path of economic planning and for that used
‘Five Year Plan’ concept of which was taken from Russia and feet that it will provide a fast
development like that of Russia, under the view of the socialistic pattern society. India had
practiced some restrictions ever since the introduction of the first industrial policy resolution
in 1948. Soon after independence, the period was known as License Raj. As a result of the
restriction in the past, India’s performance in the global market has been very dismal; it never
reached even the 1% in the worldwide market. India has vast natural resources with
highefficiency labor, but after all this, it was still contributing with 0.53% till 1992.

The Government of India announced a New Economic Policy on July 24, 1991.After
liberalization, India became the second world of development and became the 7th largest
economies. It contributed 1.3 trillion in the world’s GDP. Dr. Manmohan Singh, the former
finance minister, opened the way for a free economy in the country which led to the
significant development of the country. It is pertinent to note that the adoption of open
economy affected the country positively and as well negatively. On the one hand, it
witnessed high economic development, infrastructure development, and urbanization and on
the other hand had a widening cleft between the rich and poor and class divide continues to
plague the country. Social and human development remains absurdly low leading to a
profoundly fragmented nation. The noteworthy impacts of the policy on industry and labour
are as follows:

• Organized workforce Organized workforce is decreasing. Number of operations given to

subcontractors have increased and that also in the unorganised sector.

• Trade unions Trade unions are on a decline. Thus is a worldwide phenomenon. It is

generally agreed that the trade unions movement has fallen on hard tunes. The extent of its
difficulties may sometimes, of-course, be exaggerated by overemphasising adverse national
situation. Nonetheless, workers' organizations are losing members. Some even have doubts
about their future. • Wages and employment The increase in international competition and
rapid changes in the technology has led to a fall in real wages of unskilled workers and
increased inequalities in the developed countries. Worst employment crisis is being faced by
the world after 1930s. About one-third of the earth's 2.8 billion workers are either jobless or
underemployed and many of those employed receive low wages and the working condition is
poor. New labour saving technologies have increased the woes of the workers. The process
has gained momentum due to global competition and financial squeeze on governments.
Growing income inequality, job insecurity and unemployment have resulted due to
globalisation. Except in few countries, real wages fell, and the labour market conditions
started to deteriorate. Although open employment fell in my instances job tended to become
more precarious and the urban informal sector proliferated. Living condition in general
worsened. Globalisation has compelled the developing countries also to carry out structural
adjustments programmes. These program are having an adverse impact on their workers. Due
to closure of uneconomic units, shrinkage in public sector employment, reduction in
expenditure in different activities of governments many workers in developing countries
have lost their jobs. Competition has forced restructuring of many units. This involves labour
restructuring leading to loss of jobs and increased unemployment in different forms. The
most vulnerable section of the society- the poor, women, children and the old suffer the most.

• Indian Scenario Globalisation has also affected the Indian industry. In order to remain
competitive, managements have introduced flexibility by restructuring companies. Not
employing permanent category employees, closing down units, departments, transferring jobs
from bargainable to nonbargainable categories, introducing functional flexibility, putting
pressure to increase productivity, opening parallel plants, employing contract workers and
subcontracting out production. In order to keep the company small the trend is to outsource
work as far as possible Units are being relocated in interior places reducing the power of the
unions. VRS is being resorted to. Trade unions have been forced to give up or curb gain and
accept Job loss due to threat or industrial closure. Norms relating to work load have gone up.
Thus globalisation and liberalisation have created an enabling environment for cutting down
regular, salaried jobs in organised sector through VRS, contractual employment, sub-
contracting, outsourcing, feminisation, etc. and weakening trade unions. Links between the
trade unions and political party is weakening which is reducing their economic strength and
political influence. In order to remain competitive in the present phase of globalisation it has
become imperative to restructure the economies. The capacity of governments to regulate
labour markets is weakening in the face of heightened international economic competition.
Informal sector is on rise. Trade unions have been adversely affected. Bargaining position of
workers is decreasing. What is required is a holistic and long-term framework to cope with
the challenges posed by globalisation.

Q29. Explain the duties of the employers under the Karnataka Shop & Establishment
Act.

Section 2(i) of the act defines establishment, “Establishment” means a shop or a commercial
establishment; Section 2(u) of the act shop, “shop” means any premises where any trade or
business is carried on or where services are rendered to customers, and includes offices,
storerooms, godowns, or warehouses, whether in the same premises or otherwise, used in
connection with such trade or business, but does not include a commercial establishment or a
shop attached to a factory where the persons employed in the shop fall within the scope of
the Factories Act, 1948.

Duties of Employer Employment and Regulation:

• Every employer, employing any person in or in connection with his establishment shall
issue an appointment order in form ‘P’. • Every day, employee attendance shall be registered
in form ‘T. • The organizations having weekly holiday exemption, after taking continuous
service of 6 days from any employee, shall give 7thday as mandatory holiday for him. In
special cases 7th day cannot be given as holiday, 11th day should be given as mandatory
holiday. • After each month salary shall be paid before 7th date of next month. • Working
period of any employee should not exceed 48 hours and 58 hours including extra working
hours. • End of the year, counting the working day of the employees for present year; 1 day
per 20 days as earned leave and 1 day per 30 days as sick leave shall be calculated. This
leave account shall be recorded in the format ‘F’. • Any employee who has completed 180
days service to the establishment cannot be dismissed without prior notice.

Records management:

Use format 'A'; for Establishment registration/Renewal/To report change of information. •

Use format 'P'; to fix the different day as the weekly holiday. • Use format 'F'; to maintain
leave records and Use format ‘H’; to give the copy to the employee. • Use format 'T'; to
maintain daily attendance of employee. • Use format 'R'; to get permission to allow women to
work after 8 pm.

Submission of annual report: Annual report ending with 31st December shall be submitted
before 31st January of next year in the format 'U'.

SHORT NOTES

1. Who to approach in case of bondage?

According to S. 25 of the Act, no civil court shall have jurisdiction in respect of any matter to
which any provision of this Act applies and no injunction shall be granted by any civil court
in respect of anything which is done or intended to be done by or under this Act. The
aggrieved person or any person on his behalf can approach to the District Magistrate who is
chairman of the Vigilance Committee constitute under the Act and has been entrusted with
certain duties and responsibilities for implementing the provisions of the Act. Matter can also
be brought to the notice of the Sub Divisional Magistrate of the area or any other person who
is a member of the Vigilance Committee of District or Sub-division. Relief available to the
victim The bonded labour is to immediately release from the bondage. His liability to repay
bonded debt is deemed to have been extinguished. Freed bonded labour shall not be evicted
from his homesteads or other residential premises which he was occupying as part of
consideration for the bonded labour. A rehabilitation grant of Rs. 20,000/- to each of the
bonded labour is to be granted and assistance for his rehabilitation provided.

2. Liability of the employer under Equal Remuneration Act of 1976

Sec. 10, of the act imposes penalty in cases where the employer violates the provisions of this
act he is liable for punishment under this section.

A) If any employer after the commencement of this Act omits or fails to maintain or fails to
produce any register or other documents etc. shall be punishable with simple
imprisonment for a term which may extend to one month or with fine which may extend
to ten thousand rupees or with both. B) If any employer – (a) Makes any recruitment in
contravention of the provisions of his Act,
or (b) Makes any payment or remuneration at unequal rates to men and women worker, for
the same work or work of a similar nature, or (c) Makes any discrimination between men and
women workers in contravention of the provisions of this Act, or (d) omits or fails to carry
out any direction made by the appropriate Government under sub-section

(5) of Section 6, he shall be punishable with fine which shall not be less than ten thousand
rupees but which may extend to twenty thousand rupees or with imprisonment for a term
which shall be not less than three months but which may extend to one year or with both for
the first offence, and with imprisonment which may extend to two years for the second and
subsequent offences. C) Omitting or refusal to produce any register or other documents to an
Inspector or to give any information shall be punishable with fine which may extend to five
hundred rupees.

3. Doctrine of ‘Equal Pay for equal work’

The Doctrine of ‘equal pay for equal work’ is not a fundamental right but a Constitutional
right. Equal remuneration for men and women is the right of an employee without any
qualification. The Act of Equal Remuneration, 1976 was enacted to comply with the
provisions of Directive Principle of State Policy under Article 39. The Act, being a beneficial
legislation, ensures adequate payment or remuneration to be made irrespective of the
physical strength of employee and removing the scope of social and economic injustice
merely on the ground of sex, thereby working to establish a just society in the country. As
provided under Section 5 of the Act, no employer shall be allowed to make discrimination
while making recruitment for the same work or work of a similar nature or make any
discrimination on the basis of sex unless that particular employment of women or men is
restricted or prohibited by any statute. Therefore, in matter of recruitment policy and
condition of service such as promotions, training or transfer, the employer is not authorised
to make discrimination against women only on the basis of sex. This provision is similar to
the provision contained in Article 16(1) of the Constitution of India, 1950.

4. Licences of contractors under the Interstate Migrant Workmen under the Act.

Licensing of Contractors (Secs. 7-11)

Every contractor who proposes to recruit or employ inter-State migrant workmen will be
required to obtain a licence from the specified authority both of the State to which the
workman belongs (home State) and the State in which he is proposed to be employed (host
State). The license under the Act may contain the terms and conditions of the agreement or
other arrangement under which the workmen will be recruited, the remuneration payable,
hours of work, fixation of wages and other essential amenities to be provided to the Inter-
State Migrant Workmen as deemed fit by the appropriate Government in accordance with the
rules and shall be issued on payment of prescribed fees. The Act lays down the conditions
under which the license issued may be revoked or suspended or the security or any part
thereof furnished by the contractor may be forfeited and also procedure for filing an appeal.

5. IPC & sexual harassment.

Sec 2(n) defines sexual harassment under the act , “sexual harassment” includes any one or
more of the following unwelcome acts or behaviour (whether directly or by implication)
namely :- (i) physical contact and advances; or (ii) a demand or request for sexual favours; or
(iii) making sexually coloured remarks; or (iv) showing pornography; or (v) any other
unwelcome physical, verbal or non-verbal conduct of sexual nature; Conduct that may be
construed as sexual harassment not only violates the Prevention of Workplace Sexual
Harassment Act, but also could constitute an offence under the IPC. In 2013, substantial
changes were made in the way sexual harassment was viewed within the criminal justice
system in India. The Criminal Law Amendment Act of 2013, which commenced on April 3,
2013, included Section 354A of the Indian Penal Code, 1860 that defined sexual harassment.
The India Penal Code, 1860 has also defined the term sexual harassment and related offences
and put forth punishments for the same: Section 354A- Sexual harassment is: A man
committing any of the following acts— (a) physical contact and advances involving
unwelcome and explicit sexual overtures; or (b) a demand or request for sexual favours; or
(c) showing pornography against the will of a woman; or (d) making sexually coloured
remarks, shall be guilty of the offence of sexual harassment. The provisions are: • Sec. 354.
Outraging the modesty of a woman • Sec. 354A. Sexual harassment by a man • Sec. 354B.
Assault or use of criminal force to woman with intent to disrobe • Sec. 354C. Voyeurism •
Sec. 354D. Stalking • Sec. 509. Insulting the modesty of a woman.
6. Duties of the employers under the sexual harassment act of 2013.

Section 3 makes provision for prevention of sexual harassment. It provides that no woman
shall be subjected to sexual harassment at any workplace. The harassment may include, but is
not limited to- (i) Implied or overt promise of preferential treatment in her employment; or
(ii) Implied or overt threat of detrimental treatment in her employment; or (iii) Implied or
overt threat about her present or future employment status; or (iv) Conduct of any person
which interferes with her work or creates an intimidating or offensive or hostile work
environment for her; or (v) Humiliating conduct constituting health and safety problems for
her. Duties of Employer (Sec. 19) This section deals with the duties of the employer. These
are as under- (i) Provide a safe working environment; (ii) Display penal consequence of
sexual harassment; (iii) Organise workshop and awareness programme; (iv) Provide
necessary facilities to Internal Complaints Committee/ Local Complaints Committee; (v)
Ensure attendance / appearance of the respondent and witness before the committee; (vi)
Provide relevant information to the committee; (vii) Provide assistance to the aggrieved
woman; (viii) Cause to initiate action under the Indian Penal Code, 1860; (ix) Treat the cases
of sexual harassment as a misconduct; (x) Ensure timely submission of Internal Complaints
Committee's report.

7. Period for payment of bonus: The provision dealing with payment of bonus within the time
duration is specified under, Sec 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 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. 8. Health & safety
measures of child Labour. Sec 13 of the act deals with the health and safety of the child
labour guaranteed under the act. (1) The appropriate Government may, by notification in the
Official Gazette, make rules for the health and safety of the children employed or permitted
to work in any establishment or class of establishments. (2) Without prejudice to the
generality of the foregoing provisions, the said rules may provide for all or any of the
following matters, namely : (a) Cleanliness in the place of work and its freedom from
nuisance (b) Disposal of wastes and effluents; (c) Ventilation and temperature; (d) Dust and
fume; (e) Artificial humidification; (f) Lighting; (g) Drinking water; (h) Latrine and urinals;
(i) Spittoons; (j) Fencing of machinery; (k) Work at or near machinery in motion; (l)
Employment of children on dangerous machines; (m) Instructions, training and supervision
in relation to employment of children on dangerous machines; (n) Device for cutting off
power; (o) Self-acting machines; (p) Easing of new machinery; (q) Floor, stairs and means of
access; (r) Pits, sumps, openings in floors, etc. (s) Excessive weights; (t) Protection of eyes;
(u) Explosive or inflammable dust, gas, etc. ; (v) Precautions in case of fire; (w) Maintenance
of buildings; and (x) Safety of buildings and machinery.

9. Contract labour and judicial intervention

Judiciary plays an extremely important role in developing the law and in shaping and
influencing its course by way of its interpretations of the various provisions of the law.
Before the enactment of this Act, there was no specific legislation which comprehensively
dealt with the predicament of contract labour in India. Although there were laws such as the
Industrial Disputes Act, 1947 and Payment of Wages Act, 1936, inter alia, none of them was
exclusively designed to regulate contract labour. This restricted the Courts from formulating
the basic guidelines in order to abolish or restrict contract labour. Therefore in order to ease
the process of adjudication of industrial disputes that were related primarily to contract
labour, the Courts required an Act which completely dealt with the regulations of contract
labour. After the enactment of the Act in 1970, the Courts did not have to face impediments
in granting relief to the wronged party in disputes regarding the facilities which should be
provided to contract labourers for, those guidelines had unambiguously been enumerated in
Sections 16, 17, 18 and 19 of the Act. The definitions of employer, contractor and workmen
had also been provided by the Act in Section 2 which helped the court interpret the meaning
of these words which under normal circumstances seem too broad and vague. The Courts can
now also construe as to when certain labourers are to be considered as contract labourers and
to what rights they are lawfully entitled.

Some landmark judgments which have thrown light upon the provisions of the Act and have
acted as precedents in determining similar questions of law that were placed before the
Courts have been discussed in this section of the paper.

Some renowned decisions among the plethora of cases that came up before the Courts have
been grouped under the issues or the questions of law that governed them. The judgments
may be discussed as follows: The Courts have had to construe the significance of
‘appropriate government’ time and again. The criteria for deciding the issue of appropriate
government under the Act is that the industry must be carried on by or under the authority of
the Central Government and not that the company/undertaking is an instrumentality or an
agency of the Central Government for purposes of Article 12 of the Constitution. Such an
authority may be conferred either by a statute or by virtue of relationship of principal
employer and agent or delegation of power and this fact has to be ascertained on the facts and
circumstances of each case.

Heavy Engineering Mazdoor Union v. State of Bihar was one of the first cases wherein the
expression ‘appropriate government’ was elucidated upon by the Court. It was asserted in
this case that the phrase ‘under the Authority of’ must be interpreted in detail and that
‘Authority’ must be construed according to its ordinary meaning which means legal power
given by one person to another to perform an act. A person is said to be ‘authorized’ or to
have ‘authority’ when he is in such a position as to produce the same effect as if the person
granting the ‘authority’ had for himself done by the act. The Court critically examined the
phrase ‘under the Authority of’ and maintained that it implies pursuant to an authority such
as where an agent or servant acts under or pursuant to the authority of his principal or master.
It established in light of the situation that albeit the entire share capital was vested in the
name of President of India, and its nominees and extensive control were vested in the Central
Government, it did not make the organization in question an industry carried on under the
authority of Central Government.
The above ratio was upheld in the decisions of Hindustan Aeronautics Ltd. v. Their
Workmen and Rashtriya Mill Mazdoor Sangh v. Model Mill, Nagpur and this position of law
continued to be valid till December 6, 1996. The Supreme Court expressed its contrary view
in Air India Statutory Corporation v. United Labour Union and Ors., wherein it was held that
‘appropriate government’ in respect of all PSUs will be the Central Government and not the
State Government which is under the control and regulation of the Central Government.
After this verdict, the Central Government delegated its power as Appropriate Government
under section 39 of Industrial Disputes Act, 1947 to the concerned State Governments in
which the Central PSUs were situated. The above decision was reversed and the position in
Heavy Engineering case was restored by the Apex Court in Steel Authority of India Limited
and Ors. v. National Union Water Front Workers and Ors, asserting that ‘appropriate
government’ in relation to an establishment would be the Central Government if (i) the
concerned Central Government company or undertaking is included by name in clause (a) of
Section 2 of the Industrial Disputes Act, or (ii) any industry carried on by or under the
authority of Central Government or by a railway company, or (iii) any such controlled
industry as may be specified in this behalf by the Central Government, otherwise in relation
to any other establishment, the Government of the State in which that other establishment is
situated, will be the appropriate Government.

10. The central and state advisory boards under the contract labour act 1970.

Under Sections 3 and 4 of the Act, there is a provision for the constitution of Central and
State Advisory Contract Labour Boards to advise the Central/State Government on matters
arising out of the administration of the Act. In matters relating to the abolition of contract
labour system, the Board normally constitutes a 3 member Tripartite Committee from
amongst members of the Central Advisory Contract Labour Board representing the
employers and workers and a Government official as Member Convener to study the issue in
detail. The report submitted by the Committee is placed before the Central Advisory Contract
Labour Board and keeping in view the recommendations of the Board, the Central
Government takes a decision on the matter. At present, 12 such Committees are functioning
either to study abolition of contract labour system or to consider the requests for exemption
from prohibitory notifications in various establishments.
11. Does the act provide the workers under it the right to be absorbed into the mainstream
workforce of the establishment after the abolition of contract labour? Although the Act aims
at the regulation of contract labour, at the end its goal is the abolition of the same. This poses
several questions as to the employment status and opportunities of those who are currently
enjoying benefits under the Act. An abolition of contract labour would result in loss of
employment which would be a far worse scenario than that of working as a contract worker.
This concern has, however, been addressed in almost every case that relates to contract
labour. It has been clearly held that upon abolishment of contract labour, workers who were
working in such capacity will directly get absorbed into the mainstream workforce of the
establishment. It was further stated that loss of jobs would not be a possibility as this would
be against the very aim of this Act i.e. to provide secure employment to the workers.
However in the case of RK Panda v. Steel Authority of India where the same issue was
brought before the Supreme Court of India, it was held that the primary objective of the Act
was to protect contract workers from exploitation. However the decision to absorb them in
the workforce or terminate their employment is the sole discretion of the employer. Over
time there have been several cases that have given varying opinions. However, most of them
have maintained that the decision to absorb or terminate should be that of the employer
alone.

12. Licensing of contractors under the contract labour act 1970

Sec 11 to 14 deals with the contracting of licences of the contractors under the act .
Appointment of licensing officers.-- The appropriate Government may, by an order notified
in the Official Gazette, (a) appoint such persons, being Gazetted Officers of Government, as
it thinks fit to be licensing officers for the purposes of this Chapter; and (b) define the limits,
within which a licensing officer shall exercise the powers conferred on licensing officers by
or under this Act. According to sec 12 Licensing of contractors.- (1) With effect from such
date as the appropriate Government may, by notification in the Official Gazette, appoint, no
contractor to whom this Act applies, shall undertake or execute any work through contract
labour except under and in accordance with a licence issued in that behalf by the licensing
officer. (2) Subject to the provisions of this Act, a licence under sub-section (1) may contain
such conditions including, in particular, conditions as to hours of work, fixation of wages and
other essential amenities in respect of contract labour as the appropriate Government may
deem fit to impose in accordance with the rules, if any, made under section 35 and shall be
issued on payment of such fees and on the deposit of such sum, if any, as security for the due
performance of the conditions as may be prescribed. Sec 13. Grant of licences.- (1) Every
application for the grant of a licence under sub-section (1) of section 12 shall be made in the
prescribed form and shall contain the particulars regarding the location of the establishment,
the nature of process, operation or work for which contract labour is to be employed and such
other particulars as may be prescribed. (2) The licensing officer may make such investigation
in respect of the application received under sub-section (1) and in making any such
investigation the licensing officer shall follow such procedure as may be prescribed. (3) A
licence granted under this provision shall be valid for the period specified therein and may be
renewed from time to time for such period and on payment of such fees and on such
conditions as may be prescribed. Sec 14 deals with the, Revocation, suspension and
amendment of licences (a) licence granted under section 12 has been obtained by
misrepresentation or suppression of any material fact, or (b) the holder of a licence has,
without reasonable cause, failed to comply with the conditions subject to which the licence
has been granted or has contravened any of the provisions of this Act or the rules made There
under, then, without prejudice to any other penalty to which the holder of the licence may be
liable under this Act, the licensing officer may, after giving the holder of the licence an
opportunity of showing cause, revoke or suspend the licence or forfeit the sum, if any, or any
portion thereof deposited as security for the due performance of the conditions subject to
which the licence has been granted. Under sub-sec (2) of this section, the licensing officer
may vary or amend a licence granted under section 12.

13.Payment of minimum and maximum bonus

Payment of Minimum Bonus

Section 10 of the Payment of Bonus Act, 1965 stipulates that, subject to the other provisions
of this Act, every employer shall be bound to pay to every employee in respect of every
accounting year, a minimum bonus which shall be 8.33% of the salary or wage earned by the
employee during the accounting year or Rs.100 (Rs.60 in case of employee below the age of
15 years), whichever is higher, whether or not the employer has any allocable surplus in the
 accounting year. Even if the employer suffers losses during the accounting year he is bound
to pay minimum bonus as prescribed by Section 10. This Act creates a statutory right in the
employees to get minimum bonus and also creates a statutory liability upon the employers
covered by the Act to pay minimum bonus. Payment of Maximum Bonus Section 11
provides, 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 20% of
such salary or wage. In computing the allocable surplus under the above-mentioned
provision, the amount set on or the amount set off under the provisions of Section 15 shall be
taken into account in accordance with the provision of that section. Calculation of Bonus
with respect to certain Employees According to section 12, where the salary or wage of an
employee exceeds ten thousand rupees or the minimum wage for the scheduled employment,
as fixed by the appropriate Government, whichever is higher 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 wages were ten thousand rupees or the minimum wage for the
scheduled employment, as fixed by the appropriate Government, whichever is higher per
mensem. For the purposes of this section, the expression “scheduled employment” shall have
the same meaning as assigned to it in clause (g) of section 2 of the Minimum Wages Act,
1948.

Solve any two of the following problems:

a) The Government of India as an employer employed some employees for the purpose of
construction works. The minimum wages were denied to the employees. A public interest
litigation was filed alleging that denial of minimum wages amounts to “forced labour”
within the ambit of Article 23 of the Constitution. Decide.

Ans : Yes, the denial of minimum wages amounts to forced labour within the ambit of Article 23
of the Constitution. The same is abolished under the Bonded Labour System (Abolition) Act,
1976. In People’s Union for Democratic Rights v. Union of India (AIR 1982 SC 1473) popularly
known as Asiad Workers case, where non-payment of minimum wages to construction workers
was successfully challenged, among others, for the violation of Article 23, the Supreme Court,
after an elaborate discussion on the background, philosophy and scope of that article, held that
the prohibition against ”traffic in human beings and begar and other similar forms of forced
labour” is ”a general prohibition, total in its effect and all pervasive in its range”. It is a charter of
recognition of human dignity, the Court said, against allState as well as private person. Rejecting
the argument of the Union that it prohibit only begar or other unpaid labour the Court held that
all unwilling labour is forced labour whether paid or not and is, therefore, prohibited. On the
specific question of minimum wages the Court held that where someone works for less than
minimum wages the presumption is that he is working under some compulsion. The compulsion
may be either the result of physical force or of legal provisions or of want, hunger and poverty.
Emphasizing on the last factor and declaring the non-payment of wages a forced labour the Court
concluded: “Any factor which deprives a person of a choice of alternatives and compels him to
adapt one particular course of action may properly be regarded as ”force” and if labour or service
is compelled as a result of such ”force”, it would be forced labour.”

b) Mr. Karthik is working as a senior medical practitioner in a Government Hospital and

drawing a salary of A scale. Mrs. Asha was appointed as junior medical practitioner in
the same hospital and her salary was fixed on the basis of B scale. Mrs. Asha challenged
her scale of payment as it is violating the provisions of Equal Remuneration Act.
Whether Mrs. Asha will succeed? Give reasons.

Ans : No. Mrs. Asha will not succeed in this case. As per section 4 of the Equal Remuneration
Act, it is the duty of employer to pay equal remuneration to men and women workers for same
work or work of a similar nature. But it is not applicable in the present case because Mrs. Asha is
working in different capacity compare to Mr. Karthik. The facts of the given case are similar to
the following case; In C. Girijambal v. Government of AP, [(1981) 2 SCC. 155], it has been held
that the principal of equal pay for equal work is not applicable in professional services. In Ashok
Kumar Garg v. State of Rajasthan, [(1994) 3 SCC 357] it has been observed that the question of
equal work depends on various factors like responsibility, skill, effort and condition of work. In
State of AP and others v. G Sreenivasa Rao & others, 1989 SCC (2) 290, It was held that equal
pay for equal work does not mean that all the members of the same cadre must receive the same
pay packet irrespective of their seniority, source of recruitment, educational qualifications and
various other incidents of service.

B) .Two persons aged about 13yrs & 15yrs were appointed by the employer of CBZX
establishment run by the family which manufactured handicrafts. Decide whether the
employment of the two children is child labour.

Ans: In this case the employment of two children is not called as child labour. Cause the
appointment of children in the family business is not termed to be as child labour. Under sec 5 of
the Child Labour Act 2016 , as according to sction 3 of the principal Act ie the act of 1986 , the
following section shall be substituted, namely:—(1) No child shall be employed or permitted to
work in any occupation or process. But under clause (2) of sec 5 Nothing in sub-section (1) shall
apply where the child,— (a) helps his family or family enterprise, which is other than any
hazardous occupations or processes set forth in the Schedule, after his school hours or during
vacations; (b) works as an artist in an audio-visual entertainment industry, including
advertisement, films, television serials or any such other entertainment or sports activities except
the circus, subject to such conditions and safety measures, as may be prescribed: Provided that
no such work under this clause shall effect the school education of the child. As per this
provision the purposes of this section, the expression, (a) ‘‘family’’ in relation to a child, means
his mother, father, brother, sister and father’s sister and brother and mother’s sister and brother;
(b) ‘‘family enterprise’’ means any work, profession, manufacture or business which is
performed by the members of the family with the engagement of other persons.

c) A, an employee of x, establishment died within two years of employment during work,

his widow claims gratuity from the employer advise her.

Ans: In his case the widow is entitled to claim gratuity as the provision of sec 4 apply in these
cases. Usually the eligibility for claiming gratuity by the employee is when an employee on the
termination of his employment after he has rendered continuous service of not less than 5 years
i.e. on superannuation, retirement, resignation, death or disablement due to accident or disease,
under Sec 4. The period of 5 years is not necessary if the termination of the employee is because
of death or disablement. In the case of death the amount is paid to the legal heirs “Continuous
Service” means uninterrupted service which may be interrupted on account of sickness, accident,
leave, absence from duty without (not being treated as break in service), lay-off, strike, lock-out
or cessation of work not due to the fault of the employee.