Labour Law Unit 5

Q1. Define Wages and explain the objectives of the Payment of wages Act 1936.

Ans.

INTRODUCTION
It is a well-known fact that India’s economy depends not just on the formal sector but also on the
informal sector. The significance of the informal sector in India cannot be ignored. Before
independence in 1947, the informal sector, primarily agriculture, contributed to 95 per cent of the
Gross Domestic Product (GDP). Even today, 70 per cent of the national income of India consists of
income generated through agriculture (Food and Agriculture Organisation of the United Nations).

Adhering to the Constitution of India, the Indian Government in the year 1948, right after
independence, introduced legislation named the Minimum Wages Act of 1948. The legislative intent
behind the Act was to make sure that workers in the informal sector receive at least a minimum
amount of money as wages to avoid exploitation. However, before this Act, the Payment of Wages
Act of 1936 was introduced. The Act made efforts so that informal sector workers could be linked
with mainstream development by providing minimum wages, which can be utilised to increase
living standards and benefit social development schemes.

Objectives of the Act

The Payment of Wages Act of 1936 was passed by the British Government on April 23, 1936. As
previously stated, this Act was enacted to regulate the payment of wages for a specific group of
workers. In accordance with the Payment of Wages Act, “wages” refers to any compensation given
to employees, with some exceptions listed in the specific exclusions mentioned under the Act.
These exclusions include any monetary value for housing accommodations or incentives, as well as
gratuities, travel expenses, and the amount offered for the delivery of electricity or water.

The Payment of Wages Act 1936 is a useful piece of legislation that governs how specific kinds of
people employed in industries get paid.

The primary goals of the Act are-

 To guarantee consistent and fast wage payments,

 To prevent wage employees from being exploited by eliminating arbitrary penalties and
wage deductions, and
 It outlines the obligations of businesses to pay wages; fix wage periods; compensation
schedules and methods; allowable deductions; and other related issues.

Application of the Payment of Wages Act, 1936

The Payment of Wages Act, 1936 applies to the entirety of India and is implemented by the
competent government in each jurisdiction on a state and national level. The Central Government is
the competent authority in cases involving railroads, air transportation, mining, and oil and gas
fields. In all other situations, the State Government is the competent authority to take decisions.

‘Wages’ as defined by the Payment of Wages Act, 1936

The financial reimbursement or remuneration that a company gives to workers in return for work
completed is known as a wage. It is also referred to as ‘personnel expenses’. The calculation of
wages can be done either as a fixed sum for each project executed or as an hourly, daily, or weekly
price based on a quantifiable number of tasks performed.
All financial compensation, ‘including’ the following, is considered to be waged.

 The sum payable under the conditions of employment;

 Amount due in accordance with any judgement, settlement, or award;
 Amount paid as overtime compensation or for time off during the holidays, and
 Amount payable due to employment termination.

Wages have been defined under Section 2(iv) of the Payment of Wages Act, 1936. “Wages” refers to
all remuneration (whether paid in the category of wage entitlements or otherwise) represented in
cash or qualified to be presented in finances that would be due for payment to a worker in respect of
his occupation or work performed in such employment. Also, wages include payments if the express
or implied terms of employment are satisfied, and include:

 Any earnings resulting from a judgement, award, or agreement reached between the parties;
 Any extra payment required by the terms of employment, regardless of whether it is referred
to as a bonus or by another name;
 Any compensation to which the employee is entitled in relation to overtime pay, holidays, or
any other leave period;
 Any amount due as a result of the worker’s termination of employment under any law,
agreement, or other documents that permits payment of the amount, regardless of any
deductions from the wages, but does not establish a deadline for payment;
 Any remuneration to which the employee has a right under any system established by any
law in effect at the time, with the following exceptions:
 Any benefit (whether through a profit-sharing agreement or elsewhere) that is not paid under
a prize, settlement, or court ruling and is not part of the payment due under the conditions of
employment;
 Any housing accommodations, access to electricity and water, basic healthcare, or other
perks, as well as any services not included in the calculation of wages under a general or
specific decree of the State Government;
 Any employer contributions to pensions or provident funds, as well as any interest that has
accrued;
 Any travel reimbursement or travel concessions value;
 Whatever amount is paid to the employee to cover specific costs that his work requires of
him; or
 Any gratuity due upon dismissal from work under conditions other than those mentioned in
subclause (d).

But does not include:

(1) any bonus (whether under a scheme of profit sharing or otherwise) which does not form part of
the remuneration payable under the terms of employment or which is not payable under any award
or settlement between the parties or order of a Court;
(2) the value of any house-accommodation, or of the supply of light, water, medical attendance or
other amenity or of any service excluded from the computation of wages by a general or special
order of appropriate Government;
(3) any contribution paid by the employer to any pension or provident fund, and the interest which
may have accrued thereon;
(4) any travelling allowance or the value of any travelling concession;
(5) any sum paid to the employed person to defray special expenses entailed on him by the nature of
his employment; or
(6) any gratuity payable on the termination of employment in cases other than those specified in
sub-clause (d).

SHAMBUNATH BATTACHARJEE V. ORIENTAL PAPER MILLS, 1995

The wide definition of wages under the provision includes bonus as well,
since it is remuneration by way of salary, allowance or otherwise expressed
in terms of money. Therefore, the employee can claim for bonus which has
not been paid.

Q. Describe the various deductions which may be lawfully made by an employer under the
Payment of Wages Act, 1948
Authorised Deductions
The authorised deduction under section 7 of the provision of Payment of wages act is explained in
detail below:

 Imposing fines on the employees

 Deduction of wages for absence from duty
 Deduction wages for payments to cooperative societies and insurance schemes
 Deduction wages for damage or loss
 Deduction of wages for house accommodation and services rendered
 Deduction of wages for recovery of loans
 Deduction for recovery of advances

Amounts that can be deducted under this Act

Fines
Employers should impose a fine on employees only with prior approval from the state government
or other authorised institutions. Before imposing a fine on the employee, the employer must go by
the rules listed below.

 In the workplace, a notice listing all fines imposed on employees should be posted. This
notice should also list any actions that the representative should not take.
 The worker shouldn’t be forced to pay a fine before explaining his actions and providing
justification for them.
 The total amount of the fines shouldn’t be more than 3% of his salary.
 Any person under the age of fifteen should not be required to pay a fine.
 In order to punish the worker for his acts or omissions, a fine should be imposed only once
on his wages.
 The mechanism for shareholdings or reimbursements from the representatives should not be
used to collect penalties.
 Within 60 days of the date the penalty was imposed, it must be deducted or recovered.
 On the day that the worker or employee commits the act of exclusion, a fine should be
imposed.
 All fines collected from workers should be added to the general reserve and used to assist
the workers.
 A record of all penalties and payments made must be kept by the individual in charge of the
payment of wages to the workers under Section 3 of the Payment of Wages Act of 1936.
 All funds received in relation to penalties imposed must be used strictly for the goals
determined by the competent authorities. Such goals should be in the long-term interests of
the workforce at the production line or mines.
  After 90 days have passed since the day the fines were imposed, no fines imposed on an
employee or worker may be recovered from them.

Deductions due to exclusion from duties

The worker’s absence from work for either a single day or for any other duration of time may result
in deductions from wages by the employer.

The amount deducted for the absence during working hours must not be greater than a total that has
a comparable connection to the pay. This pay is due in reference to the payment period as this
absence does to that wage period.

For instance, if a worker’s monthly salary is INR 15,000 and he misses one month of work due to
another obligation, the penalty for failure to fulfil an obligation should not exceed INR 15,000.

Employees who show up for work and refuse to participate in the business operation without a valid
excuse will be seen as being absent from their duties.

The employer may withdraw eight days’ worth of wages from the pay of the workers if at least ten
persons collectively fail to report for duty without being given a cause and without prior notice.

In the case of Align Components Pvt. Ltd. and another v. Union of India and others – (2020), which
was filed alongside a number of other petitions. The decision stated that workers’ wages do not have
to be paid if they choose not to report to work in regions where the lockdown has been removed.

Amount deducted for losses or damages

A register is to be maintained by the person responsible for the payment of the wages in such a
framework as might be recommended. Also, it will contain all such observations and all
confirmations thereof.

According to Section 10(2) of the Payment of Wages Act, 1936, the employer should give the
worker an opportunity to provide justification and reason for the damage that took place. The
deductions made by the employer from the wages of the worker should not exceed the value or
measure of the damage done by the worker.

Amount deducted for services provided

If a worker does not consider or admit the house-convenience service or administrative structure
provided by the employer, in this case, only the employer is authorised to deduct the cost from the
employee or worker’s pay.

The amount of the deduction should not be greater than the estimated value of the house-
convenience services or administrative structure.

Recovering advances from deductions

If an advance was given to employees by the employer prior to the start of business, the company
should be able to recover or recuperate that advance from the worker’s primary payment of wages
or salary. On the other hand, the employer shouldn’t be allowed to recoup or recover the loans made
for the employee’s travel expenses.

Deductions in relation to the recovery of the advances

Resolutions for the recovery of loans granted for home construction or other objectives will be
based on any rules established by the State Government that control the amount of flexibility with
which such loans may be permitted and the rate of interest payable afterwards.

Payments to cooperative organisations and insurance systems – subject to deductions.

The conditions that the State Government may impose will determine the justification for pension
contributions to cooperative organisations, deductions for payments to insurance coverage
maintained by the Indian Postal Service, or for worker recognition deductions made for
compensation of any premium on their additional security strategic plan to the Life Insurance
Corporation.

Keeping registrations and records updated (Section 13A)

Every employer is required to maintain the registers and information necessary to provide
information on the individuals they employ, the work they do for them, the pay they get, the
deduction taken from that pay, the receipts they provide, and other details in the format that may be
advised.

Every registration and record must be maintained and protected for a duration of three years
following the date of the last addition made to them. It means that both the employer and the
employee need to have a three-year history of transactions.

Unlawful deductions
Deductions other than those authorised under section 7 of the Payment of Wages Act are unlawful
deductions. Any deduction from the wages of the employee made on the ground other than those
mentioned under section 7 is termed as an unlawful deduction.

Deductions from wages are not permitted as per the grounds and procedures are given under the
Payment of Wages Act, 1936.

7 (3) Notwithstanding anything contained in this Act, the total amount of deductions
which may be made under sub-section (2) in any wage-period from the wages of any
employed person shall not exceed--

(i) in cases where such deductions are wholly or partly made for payments to
co-operative societies under clause (j) of sub-section (2), seventy-five per cent of such
wages, and

(ii) in any other case, fifty per cent. of such wages:

Provided that where the total deductions authorised under sub-section (2) exceed
seventy-five per cent. or, as the case may be, fifty per cent. of the wages, the excess
may be recovered in such manner as may be prescribed.

(4) Nothing contained in this section shall be construed as prevent the employer from
recovering from the wages of the employed person or otherwise any amount payable
by such person under any law for the time being in force other than the Railways Act,
1989.

Q. Write short note on Payment of Wages Authority.

Authorities under the Payment of Wages Act of 1936
Authority for the purposes of this Act may be chosen by the state government. Any authority will be
regarded as a public servant for the purposes of Section 14 of the Indian Penal Code, which was
passed in 1860.

Inspector
A monitor may be chosen by the state government to oversee the implementation of this legislation.
Each inspector will be treated as a member of the general public or a public worker for the purposes
of Section 14 of the Indian Penal Code, 1860.

Rights of the Inspector

The Inspector under this law has the following authority:

Inspectors have the authority to conduct investigations and evaluate whether employers are
appropriately adhering to the rules mentioned in this Act or not.

For the purposes of carrying out the purposes of this Act, the Inspector may, with the assistance, if
any, he deems necessary, may enter, investigate, and examine any property of any railway,
production system, industrial, or other establishments.

An inspector is capable of overseeing the payment of wages. It includes the payments to those
working on any foundation, whether it be a factory, machinery, other establishments, or a railway. It
includes taking possession of or making copies of any registers, records, or sections thereof that he
deems important in relation to a violation of the Act.

POWERS OF INSPECTOR

(4) An Inspector may,--

(a) make such examination and inquiry as he thinks fit in order to ascertain whether the
provisions of this Act or rules made thereunder are being observed;

(b) with such assistance, if any, as he thinks fit, enter, inspect and search any premises of any
railway, factory or industrial or other establishment at any reasonable time for the purpose of
carrying out the object of this Act;

(c) supervise the payment of wages to persons employed upon any railway or in any factory or
industrial or other establishment;

(d) require by a written order the production at such place, as may be prescribed, of any register
or record maintained in pursuance of this Act and take on the spot or otherwise statements of
any persons which he may consider necessary for carrying out the purposes of this Act;

(e) seize or take copies of such registers or documents or portions thereof as he may consider
relevant in respect of an offence under this Act which he has reason to believe has been
committed by an employer;

(f) exercise such other powers as may be prescribed

The resources that the Inspector will make available

For each registration, inspection, observation, evaluation, or request made in accordance with this
Act, each employer shall fund the reasonable costs of an inspector.
Requirement of a hearing for the claim
There shall be an authority mentioned below appointed by the competent authority to hear and
decide on all matters arising from observations regarding the payments or postponement in payment
of the salaries and benefits of people who are employed and compensated, along with all concerns
incidental to such claims.

 Any Commissioner of Workmen’s Compensation; or

 Someone working for the Central Government in the following capacities:
 Labour Commissioner for the region; or
 with at least two years of experience as an Assistant Labour Commissioner; or
 Any state government representative who, for the past two years, has not occupied the
position of the Assistant Labour Commissioner;
 A supervisory official of any Labour Court or Industrial Tribunal established under the
Industrial Disputes Act, 1947 (14 of 1947), or under any equivalent law governing the
investigation and resolution of industrial conflicts in existence in the State; or
 Any other representative or official with expertise as a Judge of a Civil Court or a Judicial
Magistrate, with authority to hear and decide for any predetermined jurisdiction all cases
arising out of findings on the salaries and benefits or postponement in the instalment of the
wages of people employed or paid there, along with all concerns inadvertent to such cases.
 If the appropriate Government deems it necessary to do so, it may choose more than one
specialist for any area that has been identified, and it may grant special or general proposals
to facilitate the conveyance of those experts or the part of the work that is required of them
under the Payment of Wages Act.
 Only one application for claims from the unpaid group
 The portion of this Act makes reference to the aforementioned title. If many employees have
not had their wages paid, there is no requirement for multiple applications. According to this
Act, all such employees may submit a single application to the specialist for the payment of
their wages.

Appeal
Section 17 of this Act mentions the right to appeal. The parties who are dissatisfied may file an
appeal with the district court under the following circumstances:

 In the unlikely event that the above organisations reject the applicant’s request.
 The authorities compel the employer to pay more than or equal to INR 300.
 In the unlikely event that the total exceeds INR 25, the employer will retain it for the single
unpaid employee. If several unpaid workers are present, they will each receive INR 50.

Power of the authorities designated by Section 15

In accordance with Section 15 of the Payment of Wages Act of 1936, the authorities have the
following powers –

 Taking evidence, putting it into practice, requiring witnesses to appear, and mandating the
production of reports.
 Provisional attachment of the employer’s or another party’s assets that are involved in the
wage-payment process

“Where whenever after an application has been made under sub-section (2) of Section 15 the
authority or where whenever after an intrigue or appeal has been filed under Section 17 by an
employed individual or any legitimate professional or any authority of an enlisted worker’s
organisation approved recorded as a hard copy to follow up for his sake or any Inspector under this
Act or some other individual allowed by the power to make an application under sub-section (2) of
Section 15.”

The court, at times, has referred to this Section and is satisfied that the company or another person
responsible for paying wages under Section 3 is likely going to avoid paying any sum that may be
arranged to be compensated under Section 15 or Section 17 by the officials or the court, as the case
may be, with the sole exception of circumstances where the institution or court has made the
decision that the components of the contractual arrangements be destroyed by the temporary
suspension.

After giving the employer or any other party an opportunity to be heard, it is feasible to make
arrangements for the connection of a significant amount of the employer’s or another party’s
liability for the payment of wages as determined by the authority or court to be sufficient to cover
the potential payment under the headingß. Any application for connection under subsection (1) will
be subject to the provisions of the Code of Civil Procedure (1908) (5 of 1908) dealing with
connection before judgement under that Code.

CONCLUSION
It will be exciting to see how the new labour code (which is inspired by the previous labour laws
such as the Minimum Wages Act, Payment of Wage Act, Factories Act, etc.) will improve the
prevalent situation of labourers across the country.

Q4. Explain the provisions of the factories act relating to health and safety of workers in a
factory. / outline the provisions related to welfare of the workers.

Introduction
The Factories Act of 1948 was enacted to protect the welfare of workers in a factory by regulating
employment conditions, working conditions, the working environment, and other welfare
requirements of specific industries. The Court held in Ravi Shankar Sharma v. State of
Rajasthan (1993) that the Factory Act is social legislation that covers the health, safety, welfare,
and other aspects of factory workers. The Factories Act lays out guidelines and safety measures for
using machinery, and with its strict compliance, it also provides owners with instructions. When
factory workers were taken advantage of and exploited by paying them low wages, the Factories
Act was passed.

Application of the Factories Act,1948

The important applications of the 1948 Act are as follows:

 The Act also applies to the whole country of India, including Jammu and Kashmir, and
covers all manufacturing processes and premises that fall under the definition of a factory as
defined in Section 2(m) of the Act. It also applies to factories owned by the central or state
governments, as defined in Section 116 of the Act.
 The Act is applied and limited to factories that use power and employ 10 or more people on
any working day in the preceding 12 months.
 The Act is applied and limited to factories that do not use power and employ 20 or more
people on any working day in the preceding 12 months.
 The Act is also covered under Section 85 of the Factories Act by the state governments or
Union Territories.
Salient features of Factories Act, 1948
The important features of the 1948 Act are as follows:

 The word “factory” has been expanded by the Factories (Amendment) Act of 1976 to
include contract labour when determining whether a factory has a maximum of 10 or 20
employees.
 The Act increased the minimum age for children to work in workplaces from 12 to 14 and
reduced their daily working hours from 5 to 4 and a half.
 The Act forbids women and children from working in factories from 7 p.m. to 6 a.m.
 The difference between a seasonal and non-seasonal factory has been abolished by the Act.
 The Act, which has provisions for factory registration and licencing.
 The state government is required to make sure that all factories are registered and also have
valid licences that are renewed from time to time.
 The Act gives state governments the authority to enact rules and regulations that ask for
management and employee association for the benefit of employees.
 The state government has the authority to apply the Act’s requirements to any establishment,
regardless of the number of employees inside and regardless of whether the establishment
engages in manufacturing operations.
 In Rabindra Agarwal v. State of Jharkhand (2010), the Jharkhand High Court held that the
Factories Act, special legislation would prevail over the Indian Penal Code

Definitions under the Factories Act, 1948

Competent person: A competent person is defined in Section 2(ca) of the Act. A competent person
is someone or a group of individuals who have been approved by the Chief Inspector to conduct
tests, examinations, and inspections that must be conducted in a plant. He/she is someone who has
the necessary knowledge and experience to handle the complexity of the issue.
Hazardous process: Hazardous process is defined in Section 2(cb) of the Act. A hazardous process
is defined as any process or activity related to the industry that requires special care of raw
materials that are used in it, intermediate or finished products, by-products, wastes, or effluents that
would cause material impairment to the health of those engaged in or connected with it or that result
in polluting the environment.
Machinery: Machinery is defined in Section 2(j) of the Act. The term covers prime movers,
transmission machinery, and any other equipment and appliances that produce, transform, transmit,
or apply power.
Power: Power is defined in Section 2(g) of the Act. Power is defined as any type of mechanically
transmitted energy that is not created by a human or animal agency.
Factory: The definition of a factory is specified in Section 2(m) of the Factories Act 1948. A
factory is any premises, where it has certain limits and boundaries-
If a manufacturing process is regularly carried out in any portion of the premises with the use of
power and with ten or more workers now engaged in such activity or were engaged in such work on
any day during the previous twelve months; or
If any element of a manufacturing process is performed inside the premises without the use of
power and is regularly performed with twenty or more employees working or having worked there
on any given day within the previous twelve months.
Manufacturing process: The manufacturing process definition is specified under Section 2(k). The
term “manufacturing process” refers to any process for:
Generating, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning,
demolishing, or otherwise treating or adapting any article or;
A substance in preparation for use, sale, transportation, delivery, or disposal or;
Producing, transforming, or transmitting energy or;
Creating type for printing, letterpress printing, lithography, bookbinding, or any other similar
process or;
Constructing, reconstructing, repairing, refitting, finishing, or breaking up ships or vessels, etc. (as
defined by the 1976 Amendment Act);
Preserving or storing any item in cold storage.
Worker: The worker definition is specified under Section 2(l). A worker is someone who performs
any job associated with a manufacturing process, whether they are employed directly or indirectly
through an agency, a contractor, or any other means. This helps to maintain any equipment or
facilities utilised in the manufacturing process. The worker may be hired with or without the
principal employer’s knowledge and with or without compensation.

Labour and welfare

The word ‘labour welfare’ refers to the services offered to employees within as well as outside the
factory, such as canteens, restrooms, recreation areas, housing, and any other amenities that support
employee well-being. States that take welfare measures care about the overall well-being and
productivity of their workforce. Early on in the industrialization process, social programmes for
manufacturing workers did not receive enough priority. In the past, industrial labour conditions in
India were terrible. Due to a growth in industrial activity in the latter part of the twenty-first
century, several attempts were made to improve the working conditions of the workforce through
the recommendations of the Royal Commission.
After gaining knowledge about the deficiencies and limitations of the previous Act, the Factories
Act of 1948 was amended. The definition of ‘factory’ was expanded to encompass any industrial
facility employing 10 or more people that uses power or any industrial establishment employing
more than 20 people that uses no power, which was a significant development.
Other significant amendments included-
Raising the minimum age of children who can work from 12 to 14 years old.
Reducing the number of hours a child can work from five to four and a half.
Preventing the kids from working between the hours of 7 p.m. and 6 a.m.
The health, safety, and well-being of all types of employees are given particular attention.
-Welfare measures
The three main components of welfare measures are occupational health care, appropriate working
hours, and appropriate remuneration. It speaks of a person’s complete health, including their
physical, mental, moral, and emotional states. The goal of welfare measures is to integrate the
socio-psychological demands of the workforce, the particular technological requirements, the
organisational structure and procedures, and the current socio-cultural environment. It fosters a
culture of work dedication in enterprises and society at large, ensuring increased employee
happiness and productivity.
Washing facilities (Section 42)
All factories should supply and maintain enough appropriate washing facilities for the use of the
employees.
For male and female employees, separate, well-screened facilities must be provided; these facilities
also need to be easily accessible and maintained clean.
The standards for appropriate and suitable facilities for washing must be set by the state
government.
Facilities for storing and drying clothing (Section 43)
The state government has a specific authority. It specifies that the state government has the
authority to give instructions to the manufacturers regarding where to store the worker’s clothing.
They can also provide them with instructions on how to dry the workers’ clothes. It refers to the
circumstance in which workers are not dressed for work.
Facilities for sitting (Section 44)
All factories should provide and maintain seating arrangements in appropriate areas for all workers
who are required to work in a standing position in order to take advantage of any chances for rest
that may arise throughout the course of the job.
According to the chief inspector, workers in any factory involved in a certain manufacturing process
or working in a specific room are able to perform their work effectively while seated.
First aid appliance (Section 45)
All factories must have first aid kits, appliances, or cupboards stocked with the required supplies
during all working hours, and they must be easily accessible for all manufacturing employees to
access. Accordingly, there must be more first aid boxes or cupboards than the usual ratio of one for
every 150 industrial employees, which must be fewer than that.
The first aid box or cupboard should only include the recommended supplies.
Throughout the factory’s operating hours, each first aid box or cupboard should be kept under the
supervision of a specific person who is accountable for it on a separate basis and must be readily
available at all times during the working hours of the factory.
Canteen (Section 46)
A canteen must be provided and kept up by the occupier for the benefit of the workers in any
specified factory where more than 250 people are usually employed, according to rules that the state
government may set.
Food must be served, and prices must be established for it.
Shelters, restrooms and lunch rooms (Section 47)
Every factory with more than 150 employees must have appropriate and suitable restrooms or
shelters and a lunchroom with drinking water where employees can eat food they have brought with
them and that is kept for their use. If a lunchroom is available, employees should stop eating in the
work area.
The shelters or restrooms need to be well-lighted, ventilated, kept clean, cool, and in good
condition.
The state government sets the standards.
Creches (Section 48)
Every factory with more than 30 female employees must have a suitable room for the use of
children under the age of six of such women.
Such rooms must be well furnished, well-lighted, and ventilated, and they must be kept clean and
hygienic. They must also be under the care of women who have received training in child and infant
care.
In addition, facilities for washing and changing clothes can be made available for the care of the
children of female workers.
Any factory may be forced to provide free milk, refreshments, or both to such children.
Small children can be fed by their mothers in any industry at necessary intervals.
Health
Sections 11-20 of Chapter III of the Act deal with the Health of the Factories Act, 1948.
Cleanliness (Section 11)
Every factory needs to be kept clean and clear of any effluvia from drains, latrines, or other
annoyances. In particular:
Dirt must be cleaned daily from floors, benches, staircases, and passages by sweeping or by another
method, and it must be properly disposed of.
The floor should be disinfectant-washed at least once a week.
During the manufacturing process, the floor becomes moist; this must be drained via drainage.
Disposal of wastes and effluents (Section 12)
Every factory has to have a method in place for treating wastes and effluents produced by the
manufacturing process they use.
Ventilation and temperature (Section 13)
In order to ensure worker comfort and prevent health problems, sufficient ventilation must be
created for the circulation of air in a factory, which should be maintained at a specific temperature.
Walls and roofing should be made of a material that is intended for a particular temperature that
shouldn’t go over as much as possible.
Certain precautions must be taken to protect the employees in facilities where the manufacturing
process requires extremely high or low temperatures.
Dust and fume (Section 14)
Every factory has to have efficient measures to remove or prevent any dust, fumes, or other
impurities that might harm or offend the employees employed and cause inhalation and buildup in
any workroom.
No factory may operate an internal combustion engine unless the exhaust is directed outside, and no
other internal combustion engine may be used. Additionally, precautions must be made to avoid the
buildup of fumes that might endanger the health of any employees inside the room.
Overcrowding (Section 16)
There should be no overcrowding in factories that might harm the health of the workers.
All employees must have ample space in a room to work in the building.
Lighting (Section 17)
Every area of a factory where employees are employed must have adequate natural, artificial, or
both types of lighting installed and maintained.
All glass windows and skylights that provide lighting for the workroom in factories must be kept
clean on the inside and outside.
The production of shadows should not cause eye strain during any manufacturing process, and all
factories must have preventative measures that should not cause glare from the source of light or via
reflection from a smooth or polished surface.
Drinking (Section 18)
All factories must have the appropriate installations in place, and maintain convenient locations
with an adequate supply of clean drinking water.
The distance between any drinking water and any washing area, urinal, latrine, spittoon, open drain
carrying sullage or effluent, or another source of contamination in the factory must be 6 metres
unless the chief inspector approves a shorter distance in writing. The labelling must be legible and
in a language that workers could understand.
In all factories with more than 250 regular employees, there needs to be a suitable method for
providing cold drinking water during hot weather.
Latrines and urinals (Section 19)
All factories should have enough restrooms, and urinal accommodations of the required types must
be offered in a location that is convenient and always accessible to workers.
Male and female employees must have separate enclosed rooms.
These locations must be thoroughly cleaned, kept in a hygienic state, and have sufficient lighting
and ventilation.
Sweepers must be used to maintain latrines, urinals, and washing facilities clean.
Spittoons (Section 20)
All factories must have spittoons in easily accessible locations, and they must be kept clean and
hygienic.
The state government specifies the number of spittoons that must be given, their placement in any
factory, as well as their maintenance in a clean and hygienic manner.
Except for spittoons designed, for this reason, no one should spit within the premises of a factory. A
notice must be posted if any violations occur, with a fine of five rupees.
Safety
Safety is covered in Chapter IV of the Act and is covered in Sections 21–41 of the Factories
Act, 1948.

Employment of young persons on dangerous machines (Section 23):

No young person is permitted to operate dangerous machines unless he has been adequately taught
the hazards associated with the machine and the measures to be taken, and has received suitable
training in working at the machine or adequate supervision by a person who has complete
knowledge and experience of the equipment.
Prohibition of employment of women and children near cotton openers (Section 27):
Women and children are not permitted to work in any area of a cotton pressing facility while a
cotton opener is in operation. Women and children may be employed on the side of the partition
where the feed-end is located if the inspector so specifies.
Hoists and lifts (Section 28):
Every hoist and lift must be of strong mechanical structure, enough strength, and sound material.
They also need to be regularly maintained, completely checked by a qualified person at least once
every six months, and a register kept for the mandatory exams.
A cage that is properly designed and installed must enclose all hoist and lift ways to prevent people
from being trapped between any of the equipment.
No larger load should be carried; the maximum safe operating load must be marked on the hoist or
lift.
Every hoist or lift gate must have interlocking or another effective system installed to prevent the
gate from opening except during landing.
Protection of eyes (Section 35):
The state government may require effective screens or appropriate goggles to be provided for the
protection of persons employed or in the vicinity of the process during any manufacturing process
carried out in any factory that involves risk to the eyes due to exposure to excessive light or injury
to the eyes from particles or fragments thrown off during the process.
Precautions against dangerous fumes, gases etc (Section 36):
No person shall be required or permitted to enter any chamber, tank, vat, pit, pipe, flue, or other
confined space in any factory where any gas, fume, vapour, or dust is present to such a degree as to
involve risk to persons being overcome, unless such chamber, tank, vat, pit, pipe, flue, or other
confined space is provided with an adequate manhole or other effective means of egress.
Explosive or inflammable dust, gas etc (Section 37):
Any factory involved in manufacturing processes that produce dust, gas, fume, or vapour of a nature
that could explode on ignition must take all reasonably practicable precautions to prevent any
explosion through
The effective enclosure of the plant or machinery.
The removal or prevention of the accumulation of such dust, gas, fume, or vapour, etc., or
Otherwise by the exclusion or effective enclosure of all potential ignition sources.
Precautions in case of fire (Section 38):
In order to protect and maintain safety to allow people to escape in the case of fire, all factories
should have precautionary measures in place to avoid the breakout and spread of fire, both
internally and externally. The required tools and facilities for extinguishing the fire must also be
made accessible.
All factory employees who are familiar with fire escape routes and have received sufficient training
on the procedure to be followed in such circumstances must have access to appropriate measures.
Q. Weekly leave and annual leave facilities.
Ans.
Annual Leave With Wages Section 79 Factory Act 1948
**Weekly and Annual Leave Policy:**
1. **Earned Leave:** Employees are entitled to one day off for every 20 days worked in the
previous calendar year, but only if they have worked for at least 240 days. During this leave, their
salary remains unaffected.
2. **Leave Application:** Employees must submit a written request at least 15 days in advance to
their manager, except in cases of medical emergencies or if they work in essential services, where a
20-day notice is required.
3. **Leave Entitlement in Special Circumstances:** If an employee leaves their job due to
discharge, dismissal, resignation, death, or retirement, their heir or nominee is entitled to receive
their wages.
4. **Handling Partial Days:** If an employee takes more than half a day off, it counts as a full
day of leave. Less than half a day off is not counted as leave.
5. **Carrying Forward Unused Leave:** Employees who don't take any leave in a calendar year
can carry forward their unused leave to the next year, up to a limit of 30 days for adults or 40 days
for minors.
6. **Notice Period for Leave:** Employees must inform their factory manager in writing at least
15 days in advance of their intention to take annual leave. For workers in essential services, this
notice period is extended to 20 days.
7. **Emergency Leave for Illness:** In case of illness, employees are not required to give written
notice before taking leave due to the emergency nature of the situation.
8. **Leave Scheme Agreement:** The factory manager can establish a leave policy in agreement
with a work committee or employees. This scheme must be submitted to the chief inspector for
approval and must be displayed prominently in the factory. It remains valid for 12 months and can
be renewed with or without modifications.
9. **Refusal of Leave:** If leave is denied, it must be in accordance with the terms and conditions
outlined in the leave scheme.
Section 80 Wages during leave period

When a worker takes leave according to section 78 or 79, they will get paid for this time off. The
amount they get paid is based on the average daily earnings from the last month when they worked
full time, but this doesn't include any extra money for overtime or bonuses. It does include money
for the cost of living (dearness allowance) and the value of any discounted food grains and other
items they might have bought from their employer.
If the worker didn't work at all in the month before taking leave, their pay is calculated based on the
last month they did work, following the same rules as above.
The value of the discounted food grains and other items is calculated based on how much a
'standard family' would be allowed, and this calculation is done as per the rules set by the
government.
Explanation 1 - A 'standard family' is considered to be the worker, their spouse, and two children
under fourteen years old, which together count as three adult people when it comes to how much
they eat and use.
Explanation 2 - An 'adult consumption unit' is how much a male over fourteen years old eats and
uses. A female over fourteen and a child under fourteen are counted as less, specifically 0.8 and 0.6
of what a male adult would consume.
The State Government can set rules on:
(a) how to figure out the value of the discounted items given to workers;
(b) what records factories need to keep to make sure they are following these pay rules.
Explanation using Example
Imagine a factory worker named Rohan who has been working consistently for the past month,
except for a few days of approved overtime. Rohan decides to take his entitled leave under Section
78 of the Factories Act, 1948. According to Section 80, during his leave, he is entitled to receive
wages that are calculated based on the average of his daily earnings from the previous month.
For instance, if Rohan worked for 20 days in the preceding month and earned a total of ₹10,000,
excluding any overtime and bonus, but including dearness allowance and the benefits from
concessional food grains provided by the employer, his daily average earning would be ₹500
(₹10,000 divided by 20 days).
During his leave period, Rohan's wages would be paid at this average daily rate. If the factory also
offers concessional sales of food grains, the cash equivalent of this benefit would also be included
in his leave wages, calculated as per the rules prescribed by the State Government.
If Rohan had not worked at all in the month immediately preceding his leave, his leave wages
would be calculated based on the last month he did work.
This section ensures that workers like Rohan can take their entitled leave without suffering a
financial penalty, thus providing financial security during their time off from work.
Weekly off Under Section 52
Simplified Act
(1) Workers who are adults should not have to work on the first day of the week, which is usually
Sunday, unless:
(a) They get a full day off either on the three days before or after Sunday, and
(b) The factory manager tells the Inspector in advance that they will need workers on Sunday and
also puts up a notice in the factory about this change:
(i) The manager must inform the Inspector before the upcoming Sunday or the day off that will
replace it, and
(ii) A notice must be put up in the factory for the workers to see.
However, even with this change, a worker cannot be made to work more than ten days in a row
without getting a full day off.
(2) If the factory has already informed the Inspector about making workers work on Sunday, they
can cancel this plan by telling the Inspector and putting up a notice in the factory no later than the
day before the planned workday or the day off that is being cancelled.
(3) If a worker does work on Sunday and had a day off on one of the three days before it, then for
the purpose of calculating weekly work hours, that Sunday will be counted as part of the previous
week.
Explanation using Example
Imagine a factory that operates 7 days a week and employs adult workers. According to Section 52
of The Factories Act, 1948, workers are typically entitled to a weekly day off, which is often
Sunday. However, due to a sudden increase in orders, the factory needs some workers to work on
the upcoming Sunday.
In this scenario, the manager decides to ask a group of workers to work on Sunday. To comply with
the law:
The manager ensures that each of these workers has a scheduled day off either on the Friday before
or the Monday after Sunday, thus maintaining their right to a weekly holiday.
Before Sunday, the manager submits a notice to the Inspector stating the intention to have workers
on duty on Sunday and specifying the substitute day off for each worker.
A notice is also displayed prominently within the factory informing the workers of the change.
The manager takes care that no worker is scheduled to work more than ten consecutive days without
a full day's holiday. If plans change and the workers do not need to work on Sunday, the manager
cancels the notice by informing the Inspector and updating the factory notice board by Saturday.
Q. Discuss the provisions relating to employment of young persons under The Factories Act,
1948.
Ans. Provision # 1. Prohibition of Employment of Young Children [Section 67]:
A child who has not completed his fourteenth year is prohibited from working in any factory. Under
any circumstances, whatsoever, no exemption even in case of emergency can be allowed to
overcome the provisions of this section.

This is an absolute prohibition and admits of no exception. It is the duty of the employer to
ascertain the age of the children whom he allows to work in his factory. He cannot depend on the
statement of the applicant.

Provision # 2. Non-Adult Workers to Carry Tokens [Section 68]:

A child who has completed his fourteenth year or an adolescent shall not be required or allowed to
work in any factory unless he is given a certificate of fitness by a competent certifying surgeon.
Such a certificate shall be in the custody of the manager of the factory. The young person shall carry
while he is at work a token giving a reference to such a certificate.

The object of section 68 is to prevent the exploitation of the young labour force.

Provision # 3. Certificate of Fitness [Section 69]:

The certificate of fitness is granted by a certifying surgeon on the application of young person or a
guardian. The application must be accompanied by a document signed by the manager of a factory
that the young person will be employed therein if certified to be fit for work in a factory.

The certifying surgeon must have personal knowledge of the proposed place of work and of the
manufacturing process involved.

The certificate of fitness is valid only for a period of 12 months. It may be granted subject to such
conditions as regard the nature of the work involved and periodical re-examination. The certificate
may be revoked by a certifying surgeon if the holder of the certificate is no longer fit to work.
Where certifying surgeon refuses to grant or renew a certificate or revokes a certificate, he shall
state his reasons in writing for so doing.

Any fee payable for a certificate under this section shall be paid by the occupier and shall not be
recovered from the young person, his parent or guardian.

Provision # 4. Effect of Certificate of Fitness Granted to Adolescent [Section 70]:

An adolescent who has been granted a certificate of fitness to work as an adult, would be deemed to
be an adult and all provisions of the Factories Act relating to adult workers would apply to him.

No female adolescent or a male adolescent who has not attained the age of seventeen years but who
has been granted a certificate of fitness to work in a factory as an adult shall be required or allowed
to work in any factory except between 6 A.M. and 7 P.M.

Provided that the State Government may by notification in the Official Gazette, in respect of any
factory or group or class or description of factories:

(i) Vary the limits laid down in this sub-section so that, no such section shall authorise the
employment of any female adolescent between 10 P.M. and 5 A.M.

(ii) Grant exemption from the provisions of the sub-section in case of serious emergency where
national interest is involved.
An adolescent who has not been granted a certificate of fitness to work in the factory as an adult
shall be deemed to be a child for the purposes of the Act.

Provision # 5. Working Hours for Children [Section 71]:

No Child can be employed or permitted to work in any factory:

(1) For more than four and a half hours in any day;

(2) During the night i.e., a period of at least twelve consecutive hours including the interval between
10 p.m. and 6 a.m.
(3) On any day on which he has already been working in any other factory.

The period of work of all children employed in a factory shall be limited to two shifts. Such shifts
shall not overlap or spread over more than five hours. Each child must be employed in only one of
the relays which must not be changed more frequently than once in thirty days, except with the
previous permission in writing of the Chief Inspector.

Provision relating to weekly holidays for adults under section 52 will also apply to child workers.
No child can be required or allowed to work in any factory on any day on which he has already
been working in another factory.

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

Provision # 6. Notice of Periods of Work for Children [Section 72]:

Every factory must display and correctly maintain a notice of periods work for children. Such notice
should show clearly the periods during which children may be required or allowed to work. The
periods shown in the notice shall be fixed beforehand as per section 61 regarding period of work for
adults, but there shall be no contravention of the provisions of section 71.

Provision # 7. Register of Child Workers [Section 73]:

The manager of every factory in which children are employed shall maintain a register of child
workers showing:

(a) The name of each child worker in the factory

(b) The nature of his work

(c) The group in which he is included

(d) Where his group works on shifts, the relay to which he is allotted

(e) The number of his certificate of fitness

No child worker shall be required or allowed to work in any factory unless his name other
particulars have been entered in the register of child workers Section73 (1—A)

This register must be made available to the Inspector at all times during working hours or when any
work is being carried on in a factory.

The State Government may prescribe the form of the register of child workers, the manner in which
it shall be maintained and the period for which it shall be preserved.
Provision # 8. Hours of work to Correspond with Notice Under Section 72 and Register Under
Section 73 [Section 74]:
No child shall be employed in any factory otherwise than in accordance with the notice of periods
of work for children displayed in the factory and the entries made before hand against his name in
the register of child workers of the factory.

Provision # 9. Power to Require Medical Examination [Section 75]:

An inspector has power to server a notice on the manager of the factory asking him for the medical
examination of the young person who works in a factory either without a certificate of fitness, or
with a certificate of fitness but is no longer fit to work in that capacity.

Such a young person, shall not, if the inspector so directs, be employed or permitted to work in any
factory until he has been granted certificate of fitness or fresh certificate of fitness as the case may
be or has been certified by the certifying surgeon examining him not to be a young person.

Provision # 10. Power to make Rules [Section 76]:

This section authorises the state Government to make rules:

(a) Prescribing the forms of certificates of fitness to be granted to young persons, and the procedure
for their issue

(b) Prescribing the physical standards to be attained by children and adolescents working in
factories

(c) Regulating the procedure of certifying surgeons

(d) Specifying other duties which the certifying surgeons may be required to perform in connection
with the employment of young persons in factories.

Provision # 11. Provisions relating to Safety of Young Persons:

The provisions relating to the safety of young persons are scattered through the Act, but for
the convenience of the readers are summarised as under:

1. No young person shall be allowed to clean, lubricate, or adjust any part of the machinery while it
is in motion if it is likely to expose him to risk of injury from any moving part (Section 22).

2. No young person shall work at any dangerous machine unless:

(a) He has been fully instructed as to the dangers arising in connection with the machine and the
precautions to be observed, and

(b) He has received sufficient training in work at the machine or is under adequate supervision by a
person who has a thorough knowledge and experience of the machine (Section 23).

3. No child shall be employed in any part of a factory for pressing cotton in which a cotton-opener
is at work. This prohibition may be relaxed in certain cases (Section 27).

4. Where the State Government declares any manufacturing process or operation in any factory as
dangerous or injurious to the health of young person, it may make rules prohibiting or restricting the
employment of young person in the operation (Section 87).