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INDUSTRIAL DISPUTE ACT/ FACTORIES ACT ANDWORKSMENS COMPENSATION ACT

Considering the changing role of power engineers in Energy Market as a team leader andManager, it is utmost necessary for them to know various provisions in above three majorenactments and the impact of these on the working environment. There are many Labour business enactments as list hereunder which are supposed to be broadly known to engineers sothat he shall be able to make decisions as a manager in the situations involving any of theprovisions of these enactments.

LABOUR LAWS BUSINESS ENACTMENTS!pprentice !ct "#$" Companies !ct "#%$Contract !ct "&'( )ncome Ta* !ct "#+&Contract egulation !bolition !ct "#'- !ir ollution !ct "#&"Employees rovident /und !ct "#%( 0ater ollution !ct/actories !ct "#+& 1ombay 2ales Ta* !ct "#%#)ndustrial 3ispute !ct "#+' Central 2ales Ta* !ct)ndustrial 2tanding 4rder !ct "#+$ Central E*cise !ct "#++

Minimum 0ages !ct "#+& Custom !ct "#++M T 5L !ct "#'( Consumer rotection !ct "#&$ayment of 0ages !ct "#6$ Essential Commodities !ct "#%%ayment of 7ratuity !ct "#'( Environmental 8 rotection9 !ct "#&$

Trade 5nion !ct "#($ Monopolies estrictive Trade ractices !ct "#$#0orkmen:s Compensation !ct "#(6 /oreign E*change egulation !ct "#'6

FACTORIES ACT 1948

4f these, /actories !ct "#+& deals with all provisions relating to regulation of laboursworking in factories in )ndia. )t deals with welfare of the workers and their protection frome*ploitation and unhygienic working conditions in the factory premises.C;! TE ) < Preliminaries: 2.$ =!pproval, Licensing and registration of /actories, 2.'> ?otice to

4ccupier, 2.'!> 7eneral 3uties of 4ccupierC;! TE )) < Inspe !in" S!a##: Chief )nspector, !ddl C.), @oint 3y Chief )nspectors.C;! TE ))) < $EALT$: 2."">Cleanliness, 2."(>3isposal of waste, 2."6>AentilationBTemp., 2."+>

3ust fumes, 2."$>4vercrowding, 2."'>Lighting, 2."&>3rinking 0ater, 2."#>LatrinesB5rinals, 2.(->2pittons etc

C;! TE )A< SAFET%: 2.("> /encing, 2>((> 0ork near machinery in motion, 2.(6> Employmentof young person, 2.(+> 2triking 7ear, 2.(%> 2elf acting mBc, 2.($> Casing of newmBc, 2.(&>;oist Lifts, 2.(#>Lifting mBcs,chains, ropes lifting tackles, 2.6">

ressure lants, 2.6(>/loors, stairs, 2.66> its, sumps,opening in floors, 2.6+ >E*cessive weights, 2.6%> rotection to Eyes, 2.6$!> ortable electric lights, 2.+-!>Maint. 4f buildings, 2.+-1>2afety 4fficers

C;! TE )A!< rovisions regarding ;a ardous rocess 2.+"! to 2.+";C;! TE A < WELFARE: 2.+(>0ashing /acilities, 2.++> sitting facilities, 2.+%>/irst !id

appliances,2.+$ Canteens, 2.+'> est rooms Lunch rooms, 2.+&> CrechesC;! TE A) < WOR&IN' $OURS 4/ !35LT2 2ections %" to $$C;! TE A))< EMPLO%MENTS OF %OUN' PERSONSC;! TE A)))< ANNUAL LEA(E 0)T; 0!7E2C;! TE )D < SPECIAL PRO(ISIONSC;! TE D < PENAULTIES 4CE35 E2

)n M2 7CL power plants, normally 2tation )n>charge comes under the definition of4ccupier or Manager responsible to look after the implementation of all welfare provisions,7enerally 0elfare 4fficer is posted to e*ecute implement the policy decisions. ;oweverresponsibility for many provisions specifically related to issues in Chapter )A, )A!, A and A)rests with 2ection incharges and concerned supervisory staff by implication or by specific order.

/or the purpose of provisions in /actories !ct, all staff in factories B plants in M2 7CL fallin the categories of workerF as per definition under 2(. The list of such workers covered underprovisions of /actories !ct is submitted every year to regional office of 3y Chief )nspectorcovering name designation of all employees on roll.

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WOR&IN' OUT %OUR WOR& T$E )APANESE WA% B% * S+ TEC$NI,UE

% 2: has been @apanese way of working in order to solve the problems, particularly, byattending to the machines and addressing various aspects related to the man behind themachine. Most of the provisions 8specially in Chapter )))9 in /actories !ct also demands sameattitude from 2upervisors, Managers visionary planners in ower plants.

* S+ - Meanin" an. Reali!/

2eiry = ?eatness2eiton = Tidiness2eiso = Cleanliness2eiketsu = 2tandardisation2eitsuke = 3iscipline

Seir/ - Nea!ness : Geep all things in neat manner, decide what is reHuired or not and disposeoff the unwanted items. )dentify place for each and everything 8Things reHuired orotherwise9.

Sei!0n - Ti.iness: Every thing should have a place and kept at the proper place. Thisensures immediate access to the tools and material. This will educate you by getting thefactual position as to how much time is reHuired for identifying and getting the reHuisiteitem. 3esignate the place for each everything. 3iscard the totally unwanted items.

Seis0 - Cleanliness: The workplace should be clean and even dust free as cleanliness isthe first step towards better working. This substantially helps in improving and maintainingthe Huality of services and workmanship.

Sei e!s2 - S!an.ar.isa!i0n: The tools, eHuipments, spares, consumables etc can bestandardi ed with respect to Huality. ?o sub standard material may be allowed to enter inthe premises. !ll tools should have inbuilt tags properly embossed or painted permanently.List of suppliers procedure for procurement of common 2pares and consumables should bedecided on Huality ground. ?ever forget that 2asta roye bar bar, Mehanga na roye ek bar:

The procedure work instructions should be standardi ed. )f you are doing certain workfirst time, prepare work instruction get approval. ?ever delay to modify the work instruction,once the flaw in it is practically evident. )t must be made the way of routine working. Ensurethat all amenities, tools etc are available for proper adoption of written work instructions. Thedaily routine work practice should support advance plan of all works, proper advance permit,enlisting related staffB supervisor, identifying hold up for tools materials in advance etc.

Sei!s2 e - 3is ipline: This means disciplined way of working. )n present managementterminology, it is I3o it right first time and keep it right always thereafter:

Ma 0r p0in!s !0 5e n0!e. in Fa !0ries A ! 32!ies 0# O 2pier 0r Mana"er:

i. ;e shall ensure the health, safety welfare of all workers.ii. ;e shall ensure that

The provision and maintenance of plant and system of works are safe and without risks to health. !rrangements about use, handling, storage transport of articles substance should be safe. rovision for information, instruction, training supervision as are necessary to ensure health

safety of all workers. Maintenance of all places of work in a condition that is safe without rik to health and with safe

means of access to and egress from such places as to avoid any risks. rovision, maintenance monitoring of such working environment in the factory for workers and

adeHuate facilities and arrangements for their welfare.iii. Every occupier shall prepare written statement of his general policy in respect of safety health of

the workers and the organisation arrangements for carrying out such policy.

Appr06al7 Li ensin" re"is!ra!i0n 0# Fa !0ries:

i. ules % to "% of Maha ashtra /actories ules"#$6 provide for registration licensing procedure.

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ii. !pplication is to be submitted in /orm ( for registration and thereafter in /orm 6 for licenses for aperiod not e*ceeding of three years duration along with prescribed fee in schedules 8schedule 1for 7enerating 2tations schedule C for 2ub stations9

iii. ules are provided for e*tention, renewal, suspension and withdrawal of licenses

Sa#e!/ el#are pr06isi0ns:i. /orm "" is prescribed in rule $( to maintain record of inspection of ;oists Lifts.

ii. egister in /orm "( is prescribed in rule $+ to maintain record of Lifting machines, chains,ropes and lifting Tackles.

iii. ule $% elaborates 2afety measures for pressure and plant and vessels operated underpressure over atmospheric pressure.

iv. ule $$ describes E*cessive weights. ule $' describes about protection to Eyes. ules '- isregarding provision of escape in case of fire

v. Every factory has to maintain /irefighting eHuipments system as provided in rule '"vi. Chapter A provides for norms for welfare facilities like washing facilities uBs +(, facility for

sitting uBs ++, /irst>aid>appliance uBs +%, Canteen uBs +$ appointments of welfare offic*er uBs+#. There are separate ules in Maharashtra providing duties, Hualifications and conditions ofservices for 2afety 4fficers and 0elfare officers.

3an"er02s Opera!i0ns: !s per 2.&' of !ct, any manufacturing process or operation whiche*poses employees to a serious risk of bodily injury, poisonng or diesease if declared as dangerousoperatios, following additional provisions shall be made applicable.

i. rohibiting or restricting employment of women, adolescents or children.ii. roviding for periodic medical e*amination by certifying surgeon.

iii. roviding for protection of all person in the vicinity of the place.iv. rohibiting, restricting or controlling the use of any specified materials or process.v. eHuiring the provision of additional welfare amenities and sanitory facilities having regard to

the dangerous nature of procesB operation.

Re"2la!in" W0r in" $02rs S;i#! 0r in" O6er!ime:Chapter A) specifically section %" provides that no worker shall be re887 R2le 11*?:i. 0hen any accident or dangerous occurance takes place notice within + hours is to be sent to

the )nspector.ii. )f accident is fatal or is likely to prove fatal, notice shall also be sent to 8a9 3istrict Magistrate or

234 8b9 ?earest olice station, and 8c9 nearest relative of the injured or deseased person.iii. ?otice shall be in /orm (+ . )n case of dangerous occurances, in /orm (+!.iv. )f injured person subseHuently dies, information shall be sent within (+ hours to 8a9 )nspector

8b9 Medical 4fficer 8c9 3istrict MagistrateB 234 8d9 olice station

O5li"a!i0ns Ri";!s 0# 0r ers: These included right to get information about health andsafety, to get training for worker:s health and safety and to represent to )nspector directly in the

matter of inadeHuate provisions for protection of his health or safety. 4bligations includes duty onworkers not to wilfully interfere with or misuse any appliance meant for safety health, not to doanything which shall endanger his or others health safety and shall not neglect to make use ofappliances kept for health safety of workers.

S25missi0n 0# Re!2rns:i. Manager is to submit yearly returns in /orm (' which contains matters related to 8a9 average

number of workers employeed dailyB weekly 8b9 leave with wages 8c9 no. of discharged ordismissed employees, 8d9 wages in lieu of leave 8e9 compensatory holidays 8f9 Canteen8g9 crechs 8h9 shelters, rest rooms, lunch rooms 8i9 accidents statistics and 8j9 other mattersspecified in form ('.

ii. Manager is to submit half yearly return in /orm (& on every "% th @uly.iii. 1efore end of year, annual returnof all holidays during ne*t year is to be submitted.

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IN3USTRIAL 3ISPUTE ACT 194@

)n post independence era, 7ovt. of )ndia adopted policy labour welfare under )nternational treatiessponsered by 0orld Labour 4rganisation. The machinery of Labour Courts )ndustrial Courts wereobserved to be favouring employees coming under the definition of workmanF. ;ence the trend in thetrade 5nions of even high ranked employees 8doing almost supervisoryB managerial works9 was to takeadvantage of this favoured attitude of this machinery by coming in the ambit of definition of workman.1ecause, unless employees is workman as per definition in )3 !ct, the machinery to resolve disputesunder this act was not available to him. 0ith changes in scenario in )ndustrial sector in )ndia, now a dayspicture is changing.

C;! TE ) < EDTE?T !?3 3E/)?)T)4?2> )t contains important definitions of Employer, )ndustrialdisputes, Layoffs, Lockouts, ublic 5tility Company, etrenchment, 2trike, 5nfair Labour

ractice. 2ome of these are e*plained here as under.

In.2s!rial 3isp2!e 2.(8k9 < )t means any dispute between Employers and employersJ or Employers and workmenJ or 0orkmen and workmen.

La/ O## 2. (8kkk9 < means failure, refusal or inability of an emploter to give employment to a workman.L0 O2! 2.(8l9 < means temporary closing of place of employment or suspension of work or the refusal

by an employer to employ any number of persons employed by him.

Re!ren ;men! 2.(8oo9 < means termination by the employer of the service of a workman for any reasonotherwise than a punishment inflicted by way of disciplinary action 8but does notinclude voluntary retirement, superannuation. ?on>renewal of contract,termination due to continued ill>health9.

S!ri e 2.( 8H9 < means a cessation of work by a body of persons employed in a industry acting incombination, or a concerted refusal to work or to accept employment.

W0r man 2( 8s9 < !ny person employed in any industry to do any manual, unskilled, skilled , technical,operational, clerical or supervisory work. 1ut does not include any person who isemployed mainly in a managerial or administrative capacity.

C;! TE )) < 2ection 6 to # > !uthorities under the !ct< 0orks committee, Conciliation 4fficer, 1oardof Conciliation, Labour Courts, )ndustrial Courts, )ndustrial Tribunal, ?ational Tribunal

)3 !ct specifies the circumstances in which these are constituted and also specifies theHualifications, duties and responsibilities as well as powers of these authorities.

C;! TE ))!< ?otice of Change 2 #!

?o employer can change the condition of service applicable to any workman. /or any matter specified in /ifth schedule. 0ithout giving notice 0ithin (" days of giving such notice

C;! TE ))) < eference of 3ispute Aoluntary eference of 3isputes

)n case of any )ndustrial 3ispute, T;E ! 4 )!TE 7overnment may by order in writing refer the

dispute to a 1oard, or a Court for )nHuiry or Labour Court or Tribunal 2."-2imilarly employer or the workmen may refer the industrial dispute to arbitration 2 "-!

C;! TE )A < 2ection "" to (" owers 3uties

C;! TE A < 2ection (( to (% < 2trikes Lockouts

?o person employed in public utility services shall go on strike 8"9 without giving notice toemployer within si* week before striking, 8(9 within fourteen days after giving notice, 869 before e*piry ofthe date of strike specified in such notice 8+9 during pendency of any conciliation proceeding 8/rom dateof 0mmen emen! to the date of 0n l2.in" of conciliation proceeding9

)n case of ublic 5tility 2ervices, conciliation proceeding is .eeme. !0 ;a6e 5een 0mmen e. on

the date of receipt of notice by the Conciliation officer.3uring conciliation proceeding, conciliation officer tries to resolve the dispute by method of

conciliation between employer workmen and if they agree to some points then these are recorded asagreementB settlement. Conciliation officer tries to pursue all parties to dispute in view to resolve thedispute amicably. )f finally dispute is not resolved, he sends /ailure eportF to appropriate 7overnment.

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0ith such report conciliation proceeding comes to conclude. End result of conciliation proceeding is eitheragreement or failure report.

!fter sending the failure report by Conciliation officer, generally such dispute is referred to either)ndustrial Court or )ndustrial Tribunal. 3uring the proceeding before the Court, again the parties todisputes are prevented top resort to strike or lock out. The award declared by the Court is binding on boththe parties. !s such during whole of the grievanceB dispute resolving process, it can be observed thatparties are prevented by law to resort to strikeB lockout and as such any strike or lock out in suchsituation shall be illegal and can be so declared as illegal.

4nly if after failure report submitted by conciliation officer, the workers can resort to strike forresolving their dispute and to force the employer to respond to collective bargaining by mutual settlementas a condition to withdraw strike. 1ut in such situation, employer has also legal means of declaring lockout.

C;! TE A!< 2ection (% ! to @ Layoffs etrenchment

These provisions related to layoffs retrenchment are applicable to industrial establishment inwhich less than %- workmen have been employed in preceding calendar month or industrialestablishments which are of a seasonal character or in which the work is performed only intermittently.

Layoffs is a failure, refusal or inability of an employer to give employment to a workman. 0henevera workman is laid off, he shall be paid by the employer for number of days during which he is laid off,compensation which shall be eHual to fifty percent of total of basic wage dearness allowance. )f he hasbeen laid off for more tan +- days during the period of preceding "( months, then no such compensationis payable.

etrenchment means termination by the employer of the service of a workman for any reasonotherwise than a punishment inflicted by way of disciplinary action 8but does not include voluntaryretirement, superannuation. ?on>renewal of contract, termination due to continued ill>health9.

?o workmen shall be retrenched without giving three months notice with payment of wages forperiod of notice and only after obtaining the prior permission of the appropriate 7overnment as may bespecified in official 7a ette.

C;! TE A1 < 2ection ($ to 6" Misc rovisions

?o employer or workmen or trade 5nion shall commit any unfair labour practices 2 (%T. !nyperson who commits any unfair labour practice shall be punishable with imprisonment or with fine. 2 (%5.

Pr0!e !e. W0r man: means a workman who being a member of e*ecutive or other office bearer of aregistered trade union connected with the establishment is recogni ed as such in accordance with rulesmade in this behalf. ?o of protected workman shall one percent of the total number of workmen employedtherein subject to minimum five and ma*imum one hundred protected workman.

2ection 66869 provides that no employer shall during the pendency of any conciliation proceedingtake any action against the protected workman concerned in such dispute.

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WOR&MENS+ COMPENSATION ACT 19!n !ct to provide the payment by certain classes of employers to their workmen of

compensation for injury by accident.

C;! TE ) < 3efinition partC;! TE )) < rovisions regarding CompensationC;! TE ))) < Aarious authorities under !ct, their powers proceduresC;! TE A) < 2tate 7ovt:s power to make rules

Empl0/er+s Lia5ili!/ #0r 0mpensa!i0n #0r a i.en!s:)f personal injury is caused to a workman by accident arising out of and in the course of his

employment his employer shall be liable to pay compensation in accordance with the provisions of thechapter )) of this !ct.N0 0mpensa!i0n in s0me ases < if any injury does not result in the total or partial disablement for a period e*ceeding three days. )f any injury caused by an accident which is directly attributed to workman under influence of drink or

drugs. )f any injury caused by an accident which is directly attributed to workman:s disobedience to an order

e*pressly given or to rule e*pressly framed for the purpose of the safety of workman,

Empl0/er+s Lia5ili!/ #0r 0mpensa!i0n #0r O 2pa!i0nal 3iseases:)f a workman, whilst in the service in any employment specified in part>1 of schedule ))), contractsany disease specified therein as occupational disease peculiar to that employment, contracting of suchdisease shall be deemed to be an injury by accident within the meaning of this section.

T0!al 3isa5lemen!: means such disablement, whether of a temporary or permanent nature, asincapacitates a workman for all works which he was capable of performing at the time of accidentresulting in such disablement.

Par!ial 3isa5lemen!: means such disablement, whether of a temporary or permanent nature, as reducesthe earning capacity of a workman in any employment in which he was engaged at the time of accidentresulting in such disablement. Every injury specified in art )) of schedule ) shall be deemed to result inpermanent partial disablement.

Empl0/ers n0! !0 pa/ 0mpensa!i0n .ire !l/ !0 !;e .e ease.+s ;eirs an. le"al represen!a!i6e:2ection & provides for deposition of compensation and its distribution to heirs or other entitled persons.

Pr0 e.2re #0r se!!lemen! 0# laims:

". Appli a!i0n: !s per section ((, where an accident occurs in respect of which liability to paycompensation arises, a claim for such compensation may be made before the commissioner.

(. Pr0.2 !i0n 0# .0 2men!s: 0hen the application for relief is based onm document, the documentshall be appended to the application. !ny other document in evidence shall be produced at or beforefirst hearing.

6. E amina!i0n 0# Appli an!: Commissioner may e*amine the applicant on oath or may sendapplication to any other officer authorised by 2tate 7overnment and direct such officer to e*amine the

applicant and his witnesses and forward the record thereof to commissioner.+. S2mmar/ 3ismissal 0# appli a!i0n: )f for the reason to be recorded, the commissioner is of the

opinion that there is no sufficient grounds for proceeding thereon, may summarily dismiss theapplication.

%. N0!i e !0 Opp0si!e Par!/:

> I.emni!/ laime. 2n.er se !i0n 1 :

a. )n cases of Contractor:s workman, rincipal employer is liable to pay compensation in the samemanner as if workman is directly employed by him e*cept that the amount of compensationshall be calculated with reference to the wages actualy paid by contractor.

b. 0hen ricipal is liable to pay compensation, he shall be entitled to be idemnified by the

contractor or any other person from whom workman could have recovered the compensation.c. ?othing in this section shall be construed as preventing a workman from recovering

compensation from the contractor instead of principal.

'. )2."emen! : Commissioner shall decide on every issues write reasons for such judgement.

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MINIMUM WA'ES ACT 1948C;! TE ) < /i*ing Minimum wages for specified employees under provisions of section 6,+ %.C;! TE )) < rocedure for evision of rates.C;! TE ))) < Constitution of !dvisory 1oard Committees under section ', & #C;! TE )A < /i*ing ;ours for normal working days under section "6C;! TE A < Maintenance of registers and recordsC;! TE A) < rovision related to Claims enalties

PA%MENT OF WA'ES ACT 19D2ection " ( < 2hort title 3efinitions2ection 6 < esponsibility for payment of wages2ection + % < /i*ation of wage period Time for payment2ection $ < 0ages in current coins or currency notes2ection ' < 3eduction which may be made2ection & < 0ages in current coins or currency notes2ection # < 3eductions for absence from duty2ection "- < 3eductions for damages or losses2ection "" < 3eductions for services rendered2ection "( < 3eductions for payment to advancesBloans2ection "6 < 3eductions for payment to 2ocietiesB)nsurance2ection "+ < )nspectors2ection "%B"$ < Claims2ection "' < !ppeals2ection "& < owers of authorities2ection (- < enalties2ection (" < Trial rocedures2ection (( < 1ar to suits2ection (6 < Contracting out2ection (% < 3isplay of ?otices

CONTRACT RE'ULATION ABOLITION ACT 19D

5nder 2ection ', egistration of Establishment is necessary wherein the labours are employedunder contracts. M2 7CL is no doubt deploying the contractors for various jobs. !ll these contractors are

e*pected to get the license under the provisions of section "( of this !ct. !pplication for such licenses areto be submitted alongwith the Certificate from principal employer, M2 7CL. This application for licensecontains details like details of work, e*pected dates of commencement completion, Ma*ium number oflabours proposed to be deployed. Therefore it is necessary to e*amine this license before allowing anywork to be started. 5nder ule &", M2 7CL is e*pected to submit returns within fifteen days of thecommencement of work or completion of work under each contractor in form A)>1. M2 7CL is also to sendthe annual reportB return in /orm>DDA before "% th /ebruary.

The authorised supervisor of M2 7CL e*ecuting the work has to perform statutory duties ofe*amining following documents under the provisions of this !ct,

". Muster oll in /orm DA))(. egister of 0ages in /orm DA)))6. egister of 3eductions in /orm DD

+. egister of /ines in /orm DD)%. egister of !dvances in /orm DD))$. egister of 4vertime in /orm DD)))'. 0ages slip to be given in /orm D)D

!ll these documents are to be maintained by the contractors under ule '&. 1y virtue of sections"$ to "#, the rincipal Employer has to provide facilities for the 0elfare of contract labours like Canteen,

est ooms, 4ther facilities and /irst !id facilities. esponsibility for payment of wages to Labours restson rincipal Employer uBs (".

The rincipal Employer has to maintain following records ule '+ < egister of Contractors to be maintained by rincipal employer in /orm D)) ule '% < egister of erson Employed to maintain by ContractorB rincipal employer in /orm D))) ule '$ < Employment CardB/orm D)A, Contractor to issue ule '' < 2ervice Certificate in /orm DA ule '# < To display !bstract of !ct.

C;ap!er (I: Penal!ies an. Pr0 e.2re2ection (( < 4bstruction to )nspectors K6 monthsB s %--

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2ection (6 < Contravention of provisions K$ monthsB s "---2ection (+ < 4ther 4ffences K& monthsB s "--- s "-- per day2ection (% < 4ffences by Companies2ection ($ < Cogni ance of offences2ection (' < Limitation K6 months