Basic Industrial Management

4.1 Labour law

As per labor act, 2074, "Labour" means a worker or employee or a person employed with any job
title who performs a physical or intellectual work for the employer.
Labour Law is the legal framework that governs the relationship between employers and
workers. In Nepal, it is mainly governed by the Labour Act, 2074 B.S. (2017 A.D.).

It defines the rights, duties, working conditions, wages, safety, benefits, and dispute resolution
mechanisms related to employment. The law aims to protect workers from exploitation while
ensuring fair treatment and a productive work environment.

Key Features:

1. Scope of Application:
o Applies to all sectors (public, private, organized, and unorganized) except civil
service and domestic work.
2. Employment Agreement:
o Every employee must have a written employment contract stating nature of work,
wages, working hours, leave, etc.
3. Working Hours:
o Max 8 hours/day, 48 hours/week.
o Overtime allowed up to 4 hours/day and 24 hours/week, paid at 1.5 times the
regular wage.
4. Leave Provisions:
o Annual Leave: 1 day per 20 days worked.
o Sick Leave: 15 days/year (50% wage paid).
o Maternity Leave: 98 days (60 days paid).
o Paternity Leave: 15 days.
o Public Holidays: As per law/company policy.
5. Wages and Benefits:
o Minimum wage fixed by the government (revised periodically).
o Wages to be paid within 7 days of wage period.
o No wage discrimination based on gender or caste.
6. Occupational Safety and Health (OSH):
o Employers must provide:
 Safe working environment
 PPE (Personal Protective Equipment)
 First aid and emergency arrangements
  Health checkups for hazardous jobs

7. Prohibition of Child and Forced Labor:
o Employment of children under 14 is prohibited.
o Forced labor is illegal.
8. Termination and Dismissal:
o Justified termination includes:
 Misconduct
 Inefficiency
 Voluntary resignation
 Medical unfitness
o Employee has the right to appeal unfair termination.
9. Dispute Resolution:
o Through:
 Internal complaint handling mechanism
 Labor Office
 Labor Court or Arbitration
10. Social Security:

 Employers must contribute to the Social Security Fund (SSF).

 Covers: medical care, maternity protection, old-age pension, accident/injury, etc.

Duties of labour:
(1) The duties of the labour in relation to occupational safety and health shall be as follows:
(a) Not to perform any such act in the workplace intentionally or recklessly that may cause
adverse effect or risk on the safety and health of him or her or of others,
(b) To provide necessary assistance to the employer and concerned person in the fulfilment of
any duties mentioned in this Chapter,
(c) To obtain information about the manuals, instructions and other matters prepared for the
operation and use of the equipment, product or material to be operated and used in the
workplace safely and cautiously,
(d) To operate and use the workplace, equipment, product or material safely and cautiously in
accordance with the manuals, information and instructions prepared for the operation and use
of such a workplace, equipment, product or material, and
(e) To use compulsorily the personal safety equipment provided by the employer.
Types of employment:
(1) An employer may engage a labour in any type of the
following employment:
(a) Regular employment,
(b) Work-based employment,
(c) Time-based employment,
(d) Casual employment,
(e) Part-time employment.
Explanation: For the purpose of this Section, -
(1) “Regular employment” means employment of any type whatever other than that set forth in
clauses (b), (c) and (d).
(2) “Work-based employment” means employment that the employer provides or has provided
specifying any particular work or service for performance.
(3) “Time-based employment” means employment that the employer provides or has provided
to the labour specifying a certain period on
the condition that the labour has to provide any service or perform any work within that period.
(4) “Casual employment” means employment that the employer provides or has provided to the
labour on the condition that the labour has to provide any service or perform any work, for seven
days or less within a period of one month.
(5) "Part-time employment" means employment that the employer provides or has provided to
the labour on the condition that the labour has to perform a work in thirty-five hours or less than
thirtyfive hours in a week.
(2) If there arises a question as to whether any employment is regular or not, it shall be
determined as prescribed on the basis of the nature of the work, notwithstanding anything
contained in the employment contract.
4.2 Rights of Unions
Definition
A trade union or labour union is a continuing long term association of employees formed to pro-
mote, protect and improve, through collective action, the social, economic and political interests
of its members.
A trade union may also be defined as any combination, whether temporary or permanent,
formed primarily for the purpose of regulating the relations between workmen and employers
or between workmen and workmen or between employers and employers or for imposing
restric-tive conditions on the conduct of any trade or business and includes any federation of two
or more unions.
RIGHTS:
1. To take labour out of the competitive process; because if a number of workers freely compete
for a job, the employer will definitely offer them less wages.
2. To negotiate at all levels with employers over wages and conditions of work.
3. To protect the workers in their inalienable right to higher and better life.
4. To make workers to take part in union activities and to obey union rules and decisions.
5. To protect and promote the interests of the workers.
6. To provide legal assistance to workers (ie., union members) in connection with work affairs.
7. To improve economic status of workers.
8. To protect the jobs of the workers against lay off, retrenchment, etc.
9. To ensure that workers get as per rule, the pension, provident fund, compensation for injuries,
etc.
10. To ensure for the workers, better health, safety and welfare standards.
11. To have a voice or participation in the factory management.
12. To ensure that workers get respect and human treatment from the foremen, managers, etc.
13. To improve their political status.
14. To offer educational services to the workers.
4.3 Wages and compensation
3. Wages
 Wages include all remunerations (salary+allowances, etc.) payable to an employee in
respect of his employment. Wages also include over-time remuneration, bonus, gratuity,
pension, provident fund con-tribution by the employer, etc.
 Responsibility for Payment of Wages
 An employer shall be responsible for the payment of wages to all his employees.
 An employer shall fix wage period (not exceeding one month) by which he shall pay wages
to his employees.
 If the number of employees is less than one thousand, wages have to be paid before the
expiry of the seventh day after the last day of wage period. In the other case, payment
shall be made before the expiry of tenth day after the last wage period.
 Wages shall be paid on a working day.
 Wages shall be paid in current coins or currency notes or in both.
 Deductions from Wages
 Only those deductions as authorized by the Payment of Wages act will be made from the
wages of an employee.

Deductions may be such as

(1) fines;
(ii) those for absence from duty;
(iii) due to damage to or loss of goods;
(iv) for house-accommodation supplied by employer;
(vi) for amenities and services supplied by the employer; for recovery of advance and loan
given to the employee;
(vii) for income tax;
(viii) provident fund; and
(ix) those by the order of a court.
Fixation and Revision of Minimum Wages
(i) Appropriate government shall fix the minimum rates of wages for persons employed.
(ii) Appropriate government shall review at interval not exceeding five years, the minimum
rates of wages so fixed and revise the minimum rates.
(iii) In fixing or revising rates of wages: different minimum rates of wages be fixed for different
scheduled employments, different classes of work and for adults, children and apprentices,
minimum rates of wages may be fixed either by hour, by day, by month or by other longer wage
period as may be prescribed.

2. Compensation:

 Workplace Injury or Illness:

o Employers must bear the cost of medical treatment for workplace injuries.
o Sick or injured employees are entitled to paid leave during recovery.
 Death or Disability:
o In case of an employee's death or permanent disability due to work, compensation must
be provided to the family or the worker as per the Social Security Fund Act.
 Social Security Fund (SSF):
o Both employers and employees contribute to SSF.
o Covers:
 Medical and maternity benefits
 Accidental injury compensation
 Retirement pension
 Dependent family benefits

. Employer's Liability for Compensation

The employer is liable to compensate if
(i) injury has been caused by accident:
(ii) during the course of employment;
(iii) and has resulted in workman's death; permanent or temporary, total or partial
disablement. The employer is not liable to pay compensation if
(i) the injury disables a workman for less than 3 days;
(ii) the injury is caused by an accident which occurred while the workman was under the
influence of drink or drugs;
(iii) the injury is caused due to wilful disobedience of the rules by the workman; or
(iv) the injury is caused owing to the wilful removal of any safety guard by the workman.
4.4 Labour and Management relations
WORKER'S (EMPLOYEE'S) PARTICIPATION IN MANAGEMENT

Concept

Worker's participation in managerment can be in any shape, from establishing work-committee to auto-
management by the employees.

The aim of management is to get work through others. Workers, if they are permitted to participate and
involve themselves in some of the decisions relating to work situation, etc., perhaps more effectively the
company objectives can be achieved.

Objectives or Necessity. The objectives or the necessity of permitting workers to participate in man-

agement can be:

(i) To achieve industrial peace and harmony.

(ii) To develop internal motivation in the workers.

(iii) To boost the morale of employees.

(iv) To raise the levels of the employee production, productivity and product quality.

(v) To satisfy workers by making them feel that they have their voice in the management.

(vi) To give workers a better understanding of their role in the working of industry.

(vii) To develop better mutual understanding so that the workers do not resist a change for the

betterment of the concern (e.g., introduction of work study, etc.).

(viii) To reduce labour turn-over, absenteeism and tardiness.

(ix) To minimize the number of grievances and therefore industrial disputes.

(x) To make managing the subordinates easy.

Types of Worker's Participation

Worker's participation in management may take many forms, e.g.

(a) Formal participation.

1. Ascending participation

2. Descending participation.

(b) Informal participation.

(a) Formal Participation. It consists of some plan for labour-management cooperation, Le., to some
degree, recognised as a modus operandi between management and workers, frequently through a
union.

Workers and management may work together on such plans as

Accident prevention

Elimination of waste and defective work

Attendance & Absenteeism

Employee insurance plans, etc.

In Ascending type of participation, the elected representatives of workers partícipate in managerial

decisions at higher levels such as in the board of directors of the enterprise.

In Descending type of participation, workers participate in the planning and deciding their own work on
the shop floor.

Collectively, workers can participate in

(i) Works Committees which are meant for promoting measures for securing and preserving amity and
good relations between workers and management. A works committee com-ments upon matters of
common interest and attempts to settle any material difference of opinion between the two parties.

Joint-councils of workers and management may decide the issues on which interests of

Collectively, workers can participate in

(1) Works Committees which are meant for promoting measures for securing and preserving amity and
good relations between workers and management. A works committee com-ments upon matters of
common interest and attempts to settle any material difference of opinion between the two parties.

(ii) Joint-councils of workers and management may decide the issues on which interests of management
and workers are identical, e.g., accident prevention and safety measures, determination of production
standards, worker's training, weifare measures etc.

(iii) Information sharing in which workers are told about certain aspects of the company, e.g., plans for
expansion, financial position of the company, etc.

(iv) Employee's director, ie., an elected representative of the (employee's or) worker's is one of the Board
Directors.

- Individually workers can participate in management through

(1) Suggestion System .

(ii) Delegation and job enlargement in which workers plan and decide their own work.

(b) Informal Participation

It is more typically at the work-group level, where the foreman develops the opportunity for the group of
workers to take part in a problem-solving or decision making process. Typically, the matters on which
decisions are taken are those within the prerogatives of the foreman or super-visor.

Conditions for the Success of Worker's Participation in Management

11. There should be an atmosphere of cooperation and trust between the management and the
workers
12. (ii) Workers those who are participating must be capable of understanding the problems, their
complicacies and interactions.
13. (iii) The participating workers should be able to express themselves to their own satisfaction.
14. , introducing new machinery, newer methods of operation, etc.
15. e.g. (iv) Workers should be permitted to participate in the decision on maximum of company
matter,
16. (v) The participation of a worker must not adversely affect his status or role.
17. (vi) Discussions should be frank and free and without any reservation.
18. (vii) Besides caring for the immediate interests of itself, both the parties should respect each
other's interests also. For example, workers need not remain solely interested in their wages and
welfare and employers in raising efficiency and reducing cost of production.
19. (viii) It is generally commented that "most of the relatively rare successes of such consultations
seem to occur where an unusually progressive manager is blessed with unusually competent
union officials".

4.5 Basic functions of ILO

The International Labour Organization (ILO) is a United Nations agency dealing with
labour issues, particularly international labour standards, social protection, and work
opportunities for all.

 It was established by the Treaty of Versailles in 1919.

The basis of the ILO is the tripartite principle. The ILO comprises the International
Labour Conference, the Governing Body, and the International Labour Office.

RED -JUST FOR EXTRAA KNOWLEDGE

 International Labour Conference:

 The progressive policies of the ILO are set by the International Labour Conference.
 The Conference is an annual event, which happens in Geneva, Switzerland. The
conference brings together all the representatives of the ILO.
  Function: It is a panel for the review of the important issues regarding labour.
 Governing Body:
 The Governing Body is the executive body of the International Labour Organization.
 The governing body meets in Geneva. It meets three times annually.
 The Office is the secretariat of the Organization.
 It is composed of 56 titular members, and 66 deputy members.
 Functions:
 Makes decisions regarding the agenda and the policies of the International
Labour Conference.
 It adopts the draft Programme and Budget of the Organization for submission
to the Conference.
 Election of the Director-General.
 International Labour Office:
 It is the permanent secretariat of the International Labour Organization.
 Functions: It decides the activities for ILO and is supervised by the Governing Body
and the Director-General.
 The ILO member States hold periodically regional meetings to discuss the
relevant issues of the concerned regions.
 Each of the ILO’s 183 Member States has the right to send four delegates to the
Conference: two from government and one each representing workers and employers,
each of whom may speak and vote independently.

The ILO plays an important role in the formulation of policies which are focussed on
solving labour issues. The ILO also has other functions, such as:

 It adopts international labour standards. They are adopted in the form of

conventions. It also controls the implementation of its conventions.
 It aids the member states in resolving their social and labour problems.
 It advocates and works for the protection of Human rights.
 It is responsible for the research and publication of information regarding social
and labour issues.

OTHER FUNCTIONS

 The ILO also assumes a supervisory role: it monitors the implementation of ILO conventions
ratified by member states.
 Registration of complaints: The ILO registers complaints against entities that are violating
international rules.
 International Labour Standards: The ILO is also responsible for setting International Labour
Standards.
4.6 Industrial Hygine and safety
Industrial Hygiene and Safety refers to the science and practice of identifying, evaluating, and
controlling workplace hazards to ensure the health and safety of workers. It involves preventing
occupational illnesses, injuries, and long-term health effects caused by exposure to chemical, physical,
biological, and ergonomic hazards.

Key Components of Industrial Hygiene and Safety:

1. Anticipation of Hazards

o Identifying potential risks in the workplace before they cause harm (e.g., chemical
exposure, noise, radiation).

2. Recognition of Hazards

o Assessing workplace conditions to detect existing dangers (e.g., air contaminants,

unsafe machinery).

3. Evaluation of Hazards

o Measuring exposure levels (e.g., air sampling, noise monitoring) and comparing them
with regulatory standards (OSHA, NIOSH, ACGIH).

4. Control of Hazards

o Implementing measures to eliminate or reduce risks:

 Engineering Controls (ventilation, machine guarding)

 Administrative Controls (work rotation, training)

 Personal Protective Equipment (PPE) (respirators, gloves)

5. Compliance with Regulations

o Following laws such as OSHA (Occupational Safety and Health Administration) in the
U.S., EU directives, or local workplace safety laws.

Common Workplace Hazards Addressed:

 Chemical Hazards (toxic gases, solvents, dust)

 Physical Hazards (noise, heat, radiation)

 Biological Hazards (mold, bacteria, viruses)

 Ergonomic Hazards (repetitive strain, poor posture)

 Safety Hazards (slips, falls, machinery accidents)

Importance of Industrial Hygiene and Safety:

✔ Prevents workplace injuries & illnesses

✔ Reduces absenteeism and improves productivity
✔ Ensures legal compliance and avoids fines
✔ Enhances employee morale and retention

Career Roles in Industrial Hygiene & Safety:

 Industrial Hygienist

 Safety Officer/Manager

 Occupational Health Specialist

 Environmental Health and Safety (EHS) Engineer

Safety is the state in which risk or harm to person or damage to property is limited to an acceptable
limit.

•Hazard is an act or a condition in the workplace that has the potential to cause injury, illness, or death
to a person and/or damage to company property, equipment and materials

•Risk is the chance or probability that a person will be harmed or experience an adverse health effect if
exposed to a hazard.

Industrial Hygiene is “that science and art devoted to the anticipation, recognition, evaluation, and
control of those environmental factors or stresses arising in or from the workplace, which may cause
sickness, impaired health and well-being, or significant discomfort among workers or among the citizens
of the community.
Figure 1 THE FOUR BASIC PRINCIPLES OF INDUSTRIAL HYGIENE IN MINING
4.7 Basic functions of ICAO

The International Civil Aviation Organization (ICAO) was established on December 7, 1944, following the
signing of the Chicago Convention on International Civil Aviation.

The ICAO is a specialized agency of the United Nations and is headquartered in Montreal, Canada. The
organization was established to promote the safe, efficient, and orderly development of international civil
aviation throughout the world 193 countries.

Its core function is to maintain an administrative and expert Secretariat of international civil servants
supporting these diplomatic interactions, and to research new air transport policy and standardization
innovations as directed and endorsed by governments through the ICAO Assembly, or by the ICAO Council
which the assembly elects.

Basic Functions of ICAO

1. Standardization & Regulation

o Develops Standards and Recommended Practices (SARPs) for aviation safety, security,
and environmental protection.

o Publishes Annexes to the Chicago Convention (e.g., Annex 1 – Personnel Licensing,

Annex 6 – Operation of Aircraft).

2. Aviation Safety Oversight

o Conducts Universal Safety Oversight Audit Programme (USOAP) to assess member

states' compliance with safety standards.

o Provides guidance on accident investigation and air navigation.

3. Air Navigation & Infrastructure Development

o Promotes Global Air Navigation Plan (GANP) for efficient air traffic management.

o Supports modernization of aviation infrastructure (e.g., PBN – Performance-Based

Navigation).

4. Aviation Security & Facilitation

o Establishes global security protocols .

o Works to prevent acts of unlawful interference (hijacking, terrorism).

5. Environmental Protection

o Sets emission standards (e.g., CORSIA – Carbon Offsetting and Reduction Scheme for
International Aviation).

o Promotes sustainable aviation fuels (SAF) and noise reduction measures.

6. Technical Assistance & Capacity Building

o Provides training and support to developing nations to improve aviation safety and
infrastructure.

o Implements programs like No Country Left Behind (NCLB).

7. Dispute Resolution & International Cooperation

o Mediates conflicts between member states regarding airspace and aviation policies.

o Facilitates treaties and agreements (e.g., air services agreements).