Unit – V: Labour Welfare Administration – Plant Level, State and Central

Levels – Labour Welfare Officer – Role, Status and Functions

The concept of labour welfare activities, however, is flexible, elastic and differs from time to
time, region to region, industry to industry and country to country, depending upon the value
system, level of education, social customs, degree of industrialization and general standard of the
socio-economic development of people.

‘Welfare’ is a broad concept referring to the state of living of an individual or a group, in a

desirable relationship with the total environment: ecological, economical and social. The term
‘welfare’ includes both the social and economic contents of welfare.

Social welfare is primarily concerned with the solution of various problems of the weaker
sections of society like prevention of destitution and poverty; it aims at social development by
such means as social legislation, social reforms, social service, social work and social action.

The objective of economical welfare is to promote economic development by increasing

production and productivity through equitable distribution. The economic welfare activities are
such, which can be brought directly or indirectly into relation with money

labor welfare work as, “any arrangement of working conditions, organization of social and
sports club and establishment of funds by a firm which contribute to workers’ health and safety,
comfort, efficiency, economic security, education and recreation.”

Oxford dictionary, defines “labour welfare as Effort to make life worth living for work for men.”
Chamber’s Dictionary, defines welfare as “a state of faring or doing well; freedom from
calamity, enjoyment of health, prosperity

LABOUR LAW IN INDIA

The respect's importance of human labour and the requirement for ensuring and protecting the
enthusiasm of labour as individuals has been revered in Chapter-III (Articles 16, 19, 23 & 24)
and 7 Chapter IV (Articles 39, 41, 42, 43, 43A & 54) of the Constitution of India keeping in
accordance with Fundamental Rights and Directive Principles of State Policy. Labour is a
simultaneous subject in the Constitution of India suggesting that both the Union and the state
governments are skillful to enact on labour matters and direct the same. The greater part of
essential administrative acts has been authorized by the Parliament.
The various labour legislations enacted by the Central Government can be classified into
the following different broad categories:

A. Laws relating to Industrial Relations-

1. Industrial Disputes Act, 1947

2. Trade Unions Act, 1926
B. Laws relating to Wages

1. Minimum Wages Act, 1948

2. Payment of Wages Act, 1936
3. Payment of Bonus Act, 1965
C. Laws relating to Social Security

1. Employees' Provident Funds and Miscellaneous Provisions Act, 1952

2. Employees' State Insurance Act, 1948
3. Labour Welfare Fund Act (of respective States)
4. Payment of Gratuity Act, 1972
5. Employee's Compensation Act, 1923
D. Laws relating to Working Hours, Conditions of Services and Employment

1.Factories Act, 1948

2.Industrial Employment (Standing Orders) Act, 1946
3.Shops and Commercial Establishments Act (of respective States)
4.Contract Labour (Regulation and Abolition) Act, 1970
5.Inter-State Migrant Workmen (Regulation of Employment and Conditions of
Service) Act, 1979
6. Weekly Holiday Act, 1942
7. National and Festival Holidays Act (of respective States) 1963
8. The Plantation Labour Act, 1951
9. The Mines Act, 1952
10. The Dock Workers (Safety, Health & Welfare) Act, 1986
E. Laws relating to Equality and Empowerment of Women

1. Equal Remuneration Act, 1976

2. Maternity Benefits Act, 1961
 F. Prohibitive Labour Laws

1.
Bonded Labour System (Abolition), Act, 1976
2.
Child Labour (Prohibition & Regulation) Act, 1986
3.
The Beedi and Cigar Workers (Conditions of Employment) Act, 1966
4.
The Sexual Harassment at the Workplace (Prevention, Prohibition and Redressal)
Act, 2013
G. Laws relating to Employment and Training

1. Apprentices Act, 1961

2. Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959

Three Main Benefits of Labour Welfare Activities

According to Labour Investigation Committee (1946), there are three main benefits of labour
welfare activities:

(a) Educational facilities, sports, entertainment, etc. make the worker feel that the employer is
interested in their day-to-day life and therefore, their tendency to grouse and grumble will
gradually disappear.

(b) Housing, canteens, sickness and maternity benefits, provident fund, gratuity, pensions, etc.
make the worker feel that they have a stake in the industry as much as anyone else has.

(c) Provisions of good and clean food in the canteens improve their health, entertainment reduces
the incidence of vices, medical and maternity benefits free the workers of worries.
LABOUR ADMINISTRATION MACHINERY OF STATE, DISTRICT AND LOCAL
GOVERNMENTS

The machineries for labour administration in the states are similar to those operating at the
center. As explained earlier in the chapter, most of the important labour subjects in the
concurrent list of the constitution. The central government is empowered to give direction to the
state government and to delegate powers and impose duties on them. Many central labour laws
are enforced both by the central and state government in industries or establishments falling
under their respective jurisdictions.

Generally speaking, labour administration of the state governments is on a pattern similar to

central labour administration with slight variations relating to implementing agencies and the
requirements of the state enactments and non-statutory labour programmes. the main
organizations for labour administration in the states comprise, department of labour and
employment (secretariat), office of labour commissioner chief inspectorate of factories, chief
inspectorate of boilers, office of chief inspector, shops and establishments, directorate,
employment and training, directorate, medical services ESI scheme), social security directorate
and adjudication authorities.

DEPARTMENT OF LABOUR AND EMPLOYEMNT (SECERTARIAT)

The responsibility for labour administration in the states generally vests in the department of
labour and employment, the secretariat of which represents the government side. It is generally
in charge of a minister, who may occasionally be assisted by a minister of state and deputy
minister. on the official side, the secretary or the principal secretary is the chief executive. his
team generally includes an additional secretary, and a few joint secretaries, deputy secretaries
and under secretaries according to requirements. it is this organization that formulates the labour
policy of the state, establishes liaison with the central ministry of labour coordinates and guides
the activities of enforcing machineries and takes decisions on behalf of the government.

OFFICE OF THE LABOUR COMMISSIONER

Secretary (Labour), who is assisted by Commissioner, Special Labour Commissioner, Deputy

Labour Commissioners, Assistant Labour Commissioners, Chief Inspector of Factories,
Electrical Inspector, Chief Inspector of Boilers, Chief Inspector of Shops and Establishments,
Labour Officers, Welfare Officer and other supporting staff, heads the Labour Department,
Government of N.C.T. of Delhi. With a view to make the administration responsive to the needs
of the people and bring governance to their doorsteps, the department has been organized on
territorial basis into nine districts. Each district is headed by a Deputy Labour Commissioner
who is assisted by Asstt. Labour Commissioners and Labour Officers.
CHIEF INSPECTORATE OF FACTORIES

The Chief Inspector of Factories is assisted by Deputy Chief Inspectors of Factories, Inspectors
of Factories and Inspector of Factories (Medical). The Chief Inspector of Factories, who heads
this Inspectorate works under the administrative control of Labour Commissioner cum Secretary
(Labour) of Government of NCT of Delhi. The Inspectors work under the supervisory control of
Dy. Chief Inspectors of Factories. The Dy. Chief Inspectors of Factories and Inspector of
Factories (Medical) operate from Headquarters.

CHIEF INSPECTORATE OF BOILERS

The boilers are inspected by the Boiler Inspectorate as per the procedure laid under Indian
Boilers Regulations –1950, during use, and if found satisfactory are allowed to be worked for a
maximum period of 12 months as per the provisions of Indian Boiler Act - 1923. The boilers are
also casually visited to check the validity of the certificate, their safe and efficient operation. The
Inspectorate also guides the boiler owners to work the boilers more efficiently keeping in view
Basic Objective of the Act i.e. the "Protection of Human Life & Property from the explosions of
the Boilers".

OFFICE OF CHIEF INSPECTOR, SHOPS AND ESTABLISHMENTS

The object of Delhi Shops and Establishments Act, 1954, is to give some minimum benefits and
relief to the vast unorganized sector of employees, employed in Shops and Establishments.
Industrial Dispute Act 1947, and Delhi Shops & Establishments. Act, 1954 are supplemental to
each other.

The Act is enforced through the Chief Inspector of Shops (CIS) and various inspectors under the
Act, who are posted in nine districts of the capital who function under the supervision and
control of Dy./ Asstt. Labour Commissioners of the concerned district. Chief Inspector functions
under the supervision of Dy. Labour Commissioners (CIS) who in turn functions under the
supervision of LC.

DIRECTORATE, EMPLOYMENT AND TRAINING

The organization primarily looks after the operation of employment exchanges, industrial
training institutes, vocational guidance programme and some other institutions. The activities of
the directorate are essentially governed by the policies, standards and procedures set by the
central directorate general, employment and training. Other activities of the organization include
employment market information, vocational rehabilitation centers, and training of handicapped
groups such as women and physically handicapped. The training wing of the department also
looks after the implementation of the apprentices act, 1961. Generally, the directorate functions
independently of the organizing of labour commissioner.
DIRECTORATE, MEDICAL SERVICES (ESI SCHEME)

The main responsibility for the operation of medical benefit under the employees’ state insurance
act, 1948 lies with the state governments which are required to make available the services of the
medical and para-medical personnel. In most the states a special wing has been established for
the purpose. As the medical benefit under the ESI scheme has been extended also to the family
members of the insured persons and superannuated employees, the responsibility of the state
governments in this regard has increases. A director, administrative medical officer or a chief
medical officer under the labour department has been made in charge of the wing.

SOCIAL SECURITY DIRECTORATE

A few states have established social security directorates for implementing certain social security
schemes for the poor, unorganized workers, rehabilitation of bonded labourers and
implementation of the interstate migrant workmen (regulation of employment and conditions of
services) act, 1979. They also look after the implementation of national old age pension scheme,
national family benefit scheme and national maternity benefit scheme.

ADJUDICATION AUTHORITIES

The state governments have also constituted labour courts and tribunals under the industrial
disputes act, 1947, and a few of them have set up other adjudication authorities such as industrial
courts and wages boards under state laws. As on October 31,1998, as many as 214 labour courts,
97 tribunals and 22 labour courts-cum-tribunals were functioning in the states.
LABOUR WELFARE OFFICER – ROLE, STATUS AND FUNCTIONS

As early as 1931, the Royal Commission on labour recommended the appointment of a labour
officer to eliminate the position of evil practices of Jobbers who used to engage and dismiss
labour. Initially, employers did not pay heed to this recommendation. But the State Government
took the initiative in 1934, when it passed the Bombay Disputes Conciliation Act, providing for
the appointment of a government labour officer who would deal with labour grievances.

The Same year, the Bombay Millowners’ Association was persuaded by the State Government to
appoint its own labour officer. Cotton Textile mills followed suit, and 26 labour officers were
appointed in the Bombay textile mills by 1940.

However, during the War, the police function gradually changed to welfare function, and the
labour officer assisted in the setting up of food shops and the organizations of sports and welfare
activities for employees. Gradually, this position began to discharge the functions of a labour
welfare officer. In 1946, the Labour InvestigationbCommittee strengthened his position and his
importance was stressed in the Factories Act of 1948, which stated that “the owner of every
factory with 500 or more workers is obliged to employ the prescribed number of welfare officers

Role and Status of Labour welfare Officer

Schedule 49 of the Factories Act 1948, provides that in every factory wherein 500 or more
workers are ordinarily employed, the employer shall appoint a person who can act as an advisor,
counsellor, mediator and liaisoning between the management and the labour, for improving the
efficiency, productivity and profitability of organization. Here, s/he is called Labour Welfare
officer.

Professionally he or she should be Post Graduate in Social Science, Diploma in Labour welfare,
recognised by the State Government, 3-5 years working experience in Industrial Safety and
finally having hard working ability and sound communication Skills.

Main objectives of this Position:

• To eliminate the evils of the jobber system in the recruitment of labour

• To develop and improve the labour administration in mills / factory.

• To serve as a liaison with the State Labour Commissioner.

DUTIES OF LABOUR WELFARE OFFICER:
The Malaviya Committee’s Report on Labour Welfare in 1969, following the model rules framed
under the Factories Act of 1948, has specified the following duties of welfare officers:

1. Supervision

2. Advice

3. Liaison and

4. Counselling

1. SUPERVISION:

• Safety, health and welfare programmes like housing, recreation and sanitation services, as
provided under the law.

• Working of joint committees;

• Grant of leave with wages as provided; and

• Redress of workers’ grievances

2. ADVICING MANAGERS IN THE MATTERS OF :

• Formulating welfare policies;

• Apprenticeship training programs;

• Complying with statutory obligations to workers

• Developing fringe benefits;

• Workers’ education

3. LIAISONING:

3.1. Liaison with workers so that they may -

• Appreciate the need for harmonious industrial relations in the plant;

• Resolve disputes, if any;

• Understand the limitations under which they operate; and

• Interpret company policies correctly.

3.2. Liaison with management so that they may:

• appreciate the worker’s view point on various matters connected with the plant;

• meet their obligations under the Act;

• maintain harmonious industrial relations in the plant;

• Suggest measures for the promotion of the general well-being of workers.

3.3. Liaison with inside factory agencies such as the factory inspector, medical officers, and
other inspectors with a view to securing a proper enforcement of the various Acts as applicable
to the plant;

3.4. Liaison with other agencies in the community with a view to helping workers to make use of
community services.

3.5 Liaison with the state labour commissioner with a view to administration of welfare involves
decisions on (i) welfare policy, (ii) organization of welfare, and (iii) assessment of effectiveness

4. COUNSELLING:

The latest trend catching up in the corporate HR across the world is 'Employee Counselling at
Workplace'.

In the world of ever increasing complexity and the stress in the lives, especially the workplaces
of the employees, employee counselling has emerged as the latest HR tool to attract and retain its
best employees and also to increase the quality of the workforce.

In today's fast-paced corporate world, there is virtually no organisation free of stress or stress-
free employees.

The employees can be stressed, depressed, suffering from too much anxiety arising out of
various workplace related issues like managing deadlines, meeting targets, lack of time to fulfil
personal and family commitments, or bereaved and disturbed due to some personal problem

etc.

Organisations have realized the importance of having a stress-free yet motivated and capable
workforce
 EXTRA INFORMATION ( doesn’t include in syllabus)
 WELFARE OFFICERS

(1) Number of Welfare Officers:- The occupier of every factory where 500 or more workers,
are employed, shall appoint at least one Welfare Officer:

Provided that where a group of factories in close proximity belong to the same management, the
Chief Inspector may exempt the said factories from this rule in so far as it requires the
appointment of a separate Welfare Officer in respect of each such factory subject to such
conditions as he may impose:

Provided further that where the number of workers exceeds, 2,000 one additional Welfare
Officer shall be appointed for every additional 2,000 workers or fraction thereof over 500; and
where there are more than one Welfare Officer, one of them shall be called the Chief Welfare
Officer and the others Assistant Welfare Officers.

(2) Qualifications..- A person shall not be eligible for appointment as Welfare Officer unless he
possesses-

(a) a Degree in Arts/Science/Commerce or in Law of any University;

(b) a Degree or Diploma in Industrial Relations and Personnel Management covering Labour
Welfare, as special subject, of not less than two years duration, conducted or recognised by a
University of the State of Andhra Pradesh, Provided that the one year Post Graduate Diploma
Course in Industrial Relations and Personnel Management awarded by the Osmania University,
Hyderabad upto the academic year 1991-92 shall be treated as recognised and equivalent
qualification to the Diploma in Industrial Relations and Personnel Management covering Labour
Welfare, and

(c) adequate knowledge of Telugu Language,

Provided that the State Government may grant exemption in suitable cases from the condition of
possessing the qualification of a Degree or a Diploma in Social Science from a recognised
Institution.

(3) Recruitment of Welfare Officers

(i) The post of Welfare Officer shall be advertised in two newspapers having a wide circulation
in the State, one of which should be an English newspaper.

(ii) Selection for appointment of the post of Welfare Officer shall be made from among the
candidates applying for the post by a committee appointed by the occupier of the factory.
(iii) The appointment when made shall be notified by the occupier to the Chief Inspector giving
the details of the qualifications, age, pay, previous experience and other relevant particulars of
the Officer appointed and the terms and conditions of his service.

(iv) The required number of Welfare Officers shall be appointed within 120 days from the date
on which such appointments are due to be made under sub-rule (1) of Rule 76-B or from the date
of resignation/ dismissal /termination of services of any Welfare Officer.

Duties of Welfare Officers:- The duties of a Welfare Officer sing be-

(i) to establish contacts and hold consultations with a view to maintaining harmonious relations
between the factory management and workers

(ii) to bring to the notice of factory management, the grievances of workers, individual as well as
collective, with a view to securing their expeditious redress and to act as a Liaison Officer
between the management and labour

(iii) to study and understand the point of view of labour in order to help the factory management
to shape and formulate labour policies and to interpret these policies to the workers in language
they can understand

(iv) to advise on the fulfilment by the concerned departments of the factory management of
obligations statutory or otherwise concerning the application of the provisions of the Factories
Act, 1948 and the rules made thereunder and to establish liaison with the Inspector of Factories,
and the medical services concerning medical examination of employees, health records,
supervision of hazardous jobs, sick visiting and convalescence, accident prevention and
supervision of safety committees, systematic plant inspection, safety education, investigation of
accidents, maternity benefits and workmen's compensation;

(v) to advise on fulfilment by the management and the concerned departments of the factory of
their obligations, statutory or otherwise, concerning regulation of working hours, maternity
benefit, compensation for injuries and sickness and other welfare and social benefit measures ;

(vi) to advise and assist the management in the fulfilment of its obligations, statutory or
otherwise concerning prevention of personal injuries and maintaining a safe work environment,
in such factories where a Safety Officer is not required to be appointed under the enabling
provisions under Section 40-B

(vii) to encourage the fonnation of works and joint production committees, co-operative
societies, and welfare committees and to supervise their work

(viii) to encourage provision of amenities such as canteens, shelters for rest, creches, adequate
latrine facilities, ~rig water, sickness and benevolent scheme payments, pension and
superannuation funds, gratuity, payments, granting of loans and legal advice to workers
(ix) to help the factory management in regulating the grant of leave with wages and explain to
workers the provisions relating to leave with wages and other leave privileges and to guide the
workers in the matter of submission of applications for regulating authorised absence;

(x) to advise on provision of welfare facilities such as housing facilities food-stuffs, social and
recreational facilities and sanitation and on individual personal problems and on the education of
children;

(xi) to advise the factory management on questions relating to training of new starters,
apprentices, workers on transfer and promotion, instructors and supervisors; supervision and
control of notice board and information bulletins; to further the education of workers and
encourage their attendance at technical institutes;

(xii) to suggest measures which will serve to raise the standard of living of workers and in
general, promote their well being;

(xiii) Welfare Officers not to deal with disciplinary cases or appear on behalf of the management
against workers.,- No Welfare Officer shall deal with any disciplinary case against a worker or
appear before a conciliation office, or in a Court or Tribunal on behalf of the Factory
management against any worker or workers.

The various labour legislations enacted by the Central Government can be classified into
the following different broad categories:

H. Laws relating to Industrial Relations-

1. Industrial Disputes Act, 1947

2. Trade Unions Act, 1926
I. Laws relating to Wages

1. Minimum Wages Act, 1948

2. Payment of Wages Act, 1936
3. Payment of Bonus Act, 1965
J. Laws relating to Social Security

1. Employees' Provident Funds and Miscellaneous Provisions Act, 1952

2. Employees' State Insurance Act, 1948
3. Labour Welfare Fund Act (of respective States)
4. Payment of Gratuity Act, 1972
5. Employee's Compensation Act, 1923
K. Laws relating to Working Hours, Conditions of Services and Employment

1. Factories Act, 1948

2. Industrial Employment (Standing Orders) Act, 1946
3. Shops and Commercial Establishments Act (of respective States)
4. Contract Labour (Regulation and Abolition) Act, 1970
 5. Inter-State Migrant Workmen (Regulation of Employment and Conditions of
Service) Act, 1979
6. Weekly Holiday Act, 1942
7. National and Festival Holidays Act (of respective States) 1963
8. The Plantation Labour Act, 1951
9. The Mines Act, 1952
10. The Dock Workers (Safety, Health & Welfare) Act, 1986
L. Laws relating to Equality and Empowerment of Women

1. Equal Remuneration Act, 1976

2. Maternity Benefits Act, 1961
M. Prohibitive Labour Laws

1.
Bonded Labour System (Abolition), Act, 1976
2.
Child Labour (Prohibition & Regulation) Act, 1986
3.
The Beedi and Cigar Workers (Conditions of Employment) Act, 1966
4.
The Sexual Harassment at the Workplace (Prevention, Prohibition and Redressal)
Act, 2013
N. Laws relating to Employment and Training

1. Apprentices Act, 1961

2. Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959

LAWS RELATING TO INDUSTRIAL RELATIONS

Industrial Disputes Act, 1947

The Industrial Disputes Act, 1947 (the "ID Act") has been enacted for the investigation and
settlement of industrial disputes in any industrial establishment.

The Industrial Disputes Act defines "Industrial dispute" as a dispute or difference between
workmen and employers or between workmen and workmen, which is connected with
employment or non-employment or the terms of employment or with the conditions of labour.
Dismissal of an individual workman is deemed to be an industrial dispute.

The ID Act provides for the constitution of the Works Committee, consisting of employers and
workmen, to promote measures for securing and preserving amity and good relations between
the employer and the workmen and, to that end, endeavours to resolve any material difference of
opinion in respect of such matters.

The ID Act provides for the appointment of Conciliation Officers, Board of Conciliation, Courts
of Inquiry, Labour Courts, Tribunals, and National Tribunals for settlement of disputes. Another
method recognised for settlement of disputes is through arbitration. The Industrial disputes Act
provides a legalistic way of settling disputes. The goal of preventive machinery as provided
under the Act is to create an environment where the disputes do not arise at all. The ID Act
prohibits unfair labour practices which are defined in the Fifth Schedule—strikes and lockouts
(except under certain defined conditions and with proper notice). It also provides for penalties
for illegal strikes and lockouts and unfair labour practices and provisions regarding lay off and
retrenchment as well as compensation payable thereof.

The ID Act provides that an employer who intends to close down an industrial establishment
shall obtain prior permission at least ninety days before the date on which he intends to close
down the industrial establishment, giving the reasons thereof.

Trade Unions Act, 1926

The Trade Unions Act, 1926 (the "Trade Unions Act") seeks to provide for the registration of
Trade Unions in India and for the protection of the same. Further, the Trade Unions Act also in
certain respects defines the law relating to registered Trade Unions like mode of registration,
application for registration, provisions to be contained in the rules of a Trade Union, minimum
requirement for membership of a Trade Union, rights and liabilities of registered Trade Unions,
etc.

LAWS RELATING TO WAGES

Minimum Wages Act, 1948

The Minimum Wages Act, 1948 (the Minimum Wages Act) provides for fixing of minimum
rates of wages in certain employments. The minimum wages are prescribed by States through
notifications in the State's Gazette under the Minimum Wages Rules of the specific State.

In terms of the provisions of the Minimum Wages Act, an employee means (i) any person who is
employed for hire or reward to do any work, skilled or unskilled manual or clerical, in a
scheduled employment in respect of which minimum rates of wages have been fixed; (ii) an
outworker, to whom any articles or materials are given out by another person to be made up,
cleaned, washed, altered, ornamented, finished, repaired, adapted or otherwise processed for sale
for the purposes of the trade or business of that other person; and (iii) an employee declared to be
an employee by the appropriate Government.

The term "wages" has been defined to mean all remuneration capable of being expressed in terms
of money which would, if the terms of the contract of employment express or implied were
fulfilled, be payable to a person employed in respect of his employment or work done in such an
employment and includes house rent allowance but does not include:

i. The value of:

a. Any house accommodation or supply of light, water and medical attendance; or

b. Any other amenity or any service excluded by general or special order of the
appropriate Government;
ii. Any contribution paid by the employer to any personal fund or provident fund or under
any scheme of social insurance;
iii. Any travelling allowance or the value of any travelling concession;
 iv. Any sum paid to the person employed to defray special expenses entailed on him by the
nature of his employment; or
v. Any gratuity payable on discharge.

Further, the Minimum Wages Act requires the employer to pay to every employee engaged in
schedule employment wages at a rate not less than minimum rates of wages as fixed by a
notification without any deduction (other than prescribed deductions, if any).

Payment of Wages Act, 1936

The Payment of Wages Act, 1936 (the Payment of Wages Act) is an Act to regulate the payment
of wages to certain classes of employed persons. The Payment of Wages Act seeks to ensure that
the employers make a timely payment of wages to the employees working in the establishments
and to prevent unauthorized deductions from the wages.

According to the Payment of Wages Act, all wages shall be in current coin or currency notes or
in both. It is, however, provided that the employer may, after obtaining the written authorisation
of the employed person, pay him the wages either by cheque or by crediting the wages in his
bank account.

Payment of Bonus Act, 1965

The Payment of Bonus Act, 1965 (the "Bonus Act") provides for the payment of bonus to
persons employed in certain establishments in India either on the basis of profits or on the basis
of production or productivity and is applicable to every establishment in which 20 or more
persons are employed and to all employees drawing a remuneration of less than Rs 10,000.
Those employees who have worked for less than thirty days are not eligible to receive bonus
under the Bonus Act. The Bonus Act provides for the payment of bonus between 8.33%
(minimum) to 20% (maximum). However, for the calculation of bonus, a maximum salary of Rs
3,500 is considered.

LAWS RELATING TO SOCIAL SECURITY

Employees Provident Funds and Miscellaneous Provisions Act, 1952

The Employees Provident Funds and Miscellaneous Provisions Act, 1952 (the "EPF Act")
provides for the institution of provident funds, pension funds, and deposit-linked insurance funds
for employees and applies to all establishments employing 20 or more persons or class of
persons. An establishment to which the EPF Act applies shall continue to be governed by this
Act, notwithstanding that the number of persons employed therein at any time falls below 20.

On account of 2014 Amendment to the said Act, The definition of "excluded employee" has been
amended whereby the members drawing wages exceeding Rs 15,000 per month have been
excluded from the provisions of the PF Scheme. Accordingly, the wage ceiling for an employee
to be eligible for the PF Scheme has been increased from Rs 6,500 per month to Rs 15,000 per
month. It further provides that every employee employed in or in connection with the work of a
factory or other establishment is required to become a member of the Provident Fund.

The 2014 Amendment further lays down the following changes:

a. New members (joining on or after 1 September 2014) drawing wages above Rs 15,000
per month shall not be eligible to voluntarily contribute to the Pension Scheme.
b. The pensionable salary shall be calculated on the average monthly pay for the
contribution period of the last 60 months (earlier 12 months) preceding the date of exit
from the membership.
c. The monthly pension for any existing or future member shall not be less than Rs 1,000
for the financial year 2014-2015.
d. The contribution payable under the Insurance Scheme shall also be calculated on a
monthly pay of Rs 15,000, instead of Rs 6,500.
e. In the event of death of a member (on or after 1 September 2014), the assurance benefits
available under the Insurance Scheme has been increased by twenty percent (20%) in
addition to the already admissible benefits.

Contributions to the Provident Fund are to be made at the rate of 12% of the wages by the
employers with the employee contributing an equal amount. The employee may voluntarily
contribute a higher amount but the employer is not obliged to contribute more than the
prescribed amount. Further, the EPF Act contains provisions for transfer of accumulations in
case of change of employment.

In terms of power conferred under s 143(11) of the Companies Act, 2013, the Central
Government has issued the Companies (Auditor's Report) Order, 2015 (CARO), which came
into force on 10 April, 2015. Clause (vii) (a) of Paragraph 3 provides that:

The [Statutory] Auditor has to report, inter alia, on the following:

i. Is the company regular in depositing undisputed statutory dues, eg, Provident Fund,
Investor Education and Protection Fund, Employees' State Insurance, income tax, wealth
tax, service tax, sales tax, customs duty, excise duty, cess and any other statutory duties
with the appropriate authorities?
ii. If not paid regularly, the extent of the arrears of outstanding statutory dues as on the last
day of the financial year concerned for a period of more than six months from the date
they became payable, then it shall be indicated in the report.
iii. If such non-payment of dues is on account of any dispute, then the amount involved and
for the forum where the dispute is pending should also be mentioned.

The CARO is, however, not applicable to a banking company, an insurance company, s 8
company, one person company, small companies and certain class of private companies, as
specified under the CARO.
Employees' State Insurance Act, 1948

The Employees' State Insurance Act, 1948 (the ESI Act) is a social welfare legislation enacted
with the objective of providing certain benefits to employees in case of sickness, maternity and
employment injury. In terms of the provisions of the ESI Act, the eligible employees will receive
medical relief, cash benefits, maternity benefits, pension to dependants of deceased workers and
compensation for fatal or other injuries and diseases. It is applicable to establishments where 10
or more persons are employed. All employees, including casual, temporary or contract
employees drawing wages less than Rs 15,000 per month, are covered under the ESI Act. This
limit has been increased from Rs 10,000 to Rs 15,000 w.e.f. May 1, 2010.

The Government enacted as the Employees' State Insurance (Amendment) Act, 2010 (No.18 of
2010). All the provisions of the ESI (Amendment) Act 2010 (except s 18) have come into effect
from June 1, 2010. The salient features of the ESI (Amendment) Act are as under:

 facilitating coverage of smaller factories;

 enhancing age limit of dependent children for eligibility to dependants benefit;
 extending medical benefit to dependant minor brother/sister in case of insured persons
not having own family and whose parents are also not alive;
 streamlining the procedure for assessment of dues from defaulting employers;
 providing an Appellate Authority within the ESI Corporation against assessment to avoid
unnecessary litigation;
 continuing medical benefit to insured persons retiring under VRS scheme or taking
premature retirement;
 treating commuting accidents as employment injury;
 streamlining the procedure for grant of exemptions;
 third party participation in commissioning and running of the hospitals;
 opening of medical/ dental/ paramedical/ nursing colleges to improve quality of medical
care;
 making an enabling provision for extending medical care to other beneficiaries against
payment of user charges to facilitate providing of medical care from under utilised ESI
Hospitals to the BPL families covered under the Rashtriya Swasthaya Bima Yojana
introduced by the Ministry of Labour & Employment w.e.f. 1.4.2008;
 reducing duration of notice period for extension of the Act to new classes of
establishments from six months to one month;
 empowering State Governments to set up autonomous Corporations for administering
medical benefit in the States for bringing autonomy and efficiency in the working.

The employer should get his factory or establishment registered with the Employees' State
Insurance Corporation (ESIC) within 15 days after the Act becomes applicable to it, and obtain
the employer's code number.

The employer is required to contribute at the rate of 4.75% of the wages paid/ payable in respect
of every wage period. The employees are also required to contribute at the rate of 1.75% of their
wages.
It is the responsibility of the employer to deposit such contributions (employer's and employees')
in respect of all employees (including the contract labour) into the ESI account.

Labour Welfare Fund Act (of respective States)

The [State] Labour Welfare Fund Act provides for the constitution of the Labour Welfare Fund
to promote and carry out various activities conducive to the welfare of labour in the State so as to
ensure full and appropriate utilisation of the Fund.

Payment of Gratuity Act, 1972

The Payment of Gratuity Act, 1972 (the Gratuity Act) applies to (i) every factory, mine, oilfield,
plantation, port and railway company; (ii) every shop or establishment within the meaning of any
law, for the time being in force, in relation to shops and establishments in a State, in which 10 or
more persons are employed or were employed on any day of the preceding twelve months; and
(iii) such other establishments or classes of establishments, in which 10 or more persons are
employed or were employed on any day of the preceding twelve months, as the Central
Government may, by notification, specify in this behalf.

The Gratuity Act provides for a scheme for the payment of gratuity to employees engaged in
factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments.
The Gratuity Act enforces the payment of "gratuity", a reward for long service, as a statutory
retiral benefit.

Every employee, who has completed continuous service of five years or more, irrespective of his
wages, is entitled to receive gratuity upon termination of his employment, on account of (i)
superannuation; or (ii) retirement; or (iii) death or disablement due to accident or disease.
However, the completion of continuous service of five years shall not be necessary where the
termination of employment of any employee is due to death or disablement.

The gratuity is payable even to an employee who resigns after completing at least five years of
service.

The gratuity is payable at the rate of fifteen days wages for every year of completed service,
subject to an aggregate amount of Rupees ten lacs only. However, if an employee has the right to
receive higher gratuity under a contract or under an award, then the employee is entitled to get
higher gratuity.
LAWS RELATING TO WORKING HOURS, CONDITIONS OF SERVICE AND
EMPLOYMENT

Factories Act, 1948

The Factories Act, 1948 (the Factories Act) lays down provisions for the health, safety, welfare
and service conditions of workmen working in factories. It contains provisions for working hours
of adults, employment of young persons, leaves, overtime, etc. It applies to all factories
employing more than 10 people and working with the aid of power, or employing 20 people and
working without the aid of power. It covers all workers employed in the factory premises or
precincts directly or through an agency including a contractor, involved in any manufacture.
Some provisions of the Act may vary according to the nature of work of the establishment.

Some Major provisions of the Factories Act are explained below:

a. Section 11 of the Act provides that every factory shall be kept clean and free from
effluvia arising from any drain, privy or other nuisance. Section 13 of the Act focuses on
ventilation and temperature maintenance at workplace. Every factory should work on
proper arrangements for adequate ventilation and circulation of fresh air.
b. Section 18 of the Act specifies regarding arrangements for sufficient and pure drinking
water for the workers.
c. Section 19 further mentions that in every factory there should be sufficient
accommodation for urinals which should be provided at conveniently situated place. It
should be kept clean and maintained.
d. Section 21 of the Act provides from proper fencing of machinery. And that any moving
part of the machinery or machinery that is dangerous in kind should be properly fenced
e. Further s 45 of the said Act specifies that every factory should have a properly
maintained and well equipped first aid box or cupboard with the prescribed contents. For
every 150 workers employed at one time, there shall not be less than 1 first aid box in the
factory. Also in case where there are more than 500 workers there should be well
maintained ambulance room of prescribed size and containing proper facility.

Industrial Employment (Standing Orders) Act, 1946

The Industrial Employment (Standing Orders) Act, 1946 (the IESO Act) is applicable to every
industrial establishment wherein 100 or more workmen are employed or were employed on any
day of the preceding twelve months. The IESO Act Amis to bring uniform terms and conditions
of service in various industrial establishments. The IESO Act requires every employer in an
industrial establishment to clearly define and publish standing orders with respect to conditions
of employment / service rules and to make them known to the workmen employed by it. The Act
further specifies that every employer is required to submit to the Certifying Officer five draft
copies of the standing orders which he intends to adopt for his establishment.

Further, the IESO Act requires display of standing orders in a prominent place for the knowledge
of workers.
Shops and Commercial Establishments Act (of respective States)

The Shops and Commercial Establishments Act(s) of the respective States generally contain
provisions relating to registration of an establishment, working hours, overtime, leave, privilege
leave, notice pay, working conditions for women employees, etc. The provisions of the Shops
and Commercial Establishments Act apply to both white collar and blue-collar employees. IT
and IT-enabled services have been given relaxations by various State Governments in respect of
the observance of certain provisions of their respective Shops and Commercial Establishments
Act.

Contract Labour (Regulation & Abolition) Act, 1970

The main objectives of the Contract Labour (Regulations & Abolition) Act, 1970 (the Contract
Labour Act) are: (i) to prohibit the employment of contract labour; and (ii) to regulate the
working conditions of the contract labour, wherever such employment is not prohibited.

The Act defines a "worker" as a workman who shall be deemed to be employed as "contract
labour" in or in connection with the work of an establishment when he is hired in or in
connection with such work by or through a contractor, with or without the knowledge of the
principal employer.

The Contract Labour Act regulates the employment of contract labour in certain establishments
and provides for its abolition in certain circumstances. It applies to every establishment or
contractor wherein/with whom 20 or more workmen are employed or were employed on any day
of the preceding twelve months as contract labour. The Government may, however, by
notification in the Official Gazette, make the provisions of the Contract Labour Act applicable to
establishments or contractor employing less than 20 workmen.

The Contract Labour Act is not applicable to establishments in which work only of an
intermittent or casual nature is performed.

The Contract Labour Act prohibits the employment of contract labour on jobs that are perennial
in nature. For such jobs, permanent employees need to be employed.

The Contract Labour Act provides that no contractor shall undertake any work through contract
labour, except under and in accordance with a licence issued in that behalf by the licensing
officer.

In terms of s 7 of the Contract Labour Act, the principal employer has to make an application in
the prescribed form accompanied by the prescribed fee payable to the registering officer for
registration.
The Employee's Compensation Act, 1923 (formally known as "The Workmen
Compensation Act, 1923")

The Employee's Compensation Act, 1923 (the EC Act) aims to provide financial protection to
workmen and their dependents in case of any accidental injury arising out of or in course of
employment and causing either death or disablement of the worker by means of compensation.

This Act applies to factories, mines, docks, construction establishments, plantations, oilfields and
other establishments listed in Schedules II and III of the said Act, but excludes establishments
covered by the ESI Act.

The Act provides for payment of compensation by the employer to the employees covered under
this Act for injury caused by accident. Generally, companies take insurance policies to cover
their liability under the EC Act.

Inter-state Migrant Workmen (Regulation of Employment and Conditions of Service) Act,

1979

The Inter-state Migrant Workmen (Regulation of Employment and Conditions of Service) Act,
1979 (the ISMW Act) is an Act to regulate the employment of inter-state migrant workmen and
to provide for the conditions of service and for matters connected therewith.

The ISMW Act applies to (i) any establishment in which five or more inter-state migrant
workmen are employed or who were employed on any day of the preceding twelve months; and
(ii) every contractor who employs or who employed five or more inter-state migrant workmen on
any day of the preceding twelve months.

For the purpose of the ISMW Act, an inter-state migrant workman means any person who is
recruited by or through a contractor in one state under an agreement or other arrangement for
employment in an establishment in another state, whether with or without the knowledge of the
principal employer in relation to such an establishment.

Weekly Holiday Act, 1942

The Weekly Holiday Act, 1942 provides for the grant of weekly holidays to persons employed in
shops, restaurants and theatres. The Act provides that every shop shall remain entirely closed on
one day of the week, which day shall be specified by the shop-keeper in a notice permanently
exhibited in a conspicuous place in the shop. Further the state government may require in respect
of shops or any specified class of shops that they shall be closed at such hour in the afternoon of
one week-day in every week in addition to weekly day off.
The Plantation Labour Act, 1951

The Plantations Labour Act (PLA) seeks to provide for the welfare of labour and to regulate the
conditions of workers in plantations. This Act empowers the State Governments to take all
feasible steps to improve the lot of the plantation workers. The passing of PLA has helped in
creating conditions for organising the workers and the rise of trade unions.

The Act defines an employer as, the person who has the ultimate control over the affairs of the
plantation and where the affairs of the plantation are entrusted to any other person, such other
person shall be the employer in relation to that plantation.

Plantation: Any plantation to which this Act applies and includes offices, hospitals, dispensaries,
schools and any other premises used for any purposes connected with such plantation.

The Act makes it mandatory for every employer to get their plantation registered within 60 days
of its coming into existence.

The Mines Act, 1952

The Mines Act, 1952 (Mines Act) aims to secure safety and health and welfare of workers
working in the mines. "Mine" is defined under the Mines Act as a place where any excavation
work is carried on for the searching and obtaining of minerals.

The Mines Act provides that persons working in the mine should not be less than 18 years of
age.

The Mines Act lays down provisions for appointment of one chief inspector who would be
regulating all the territories in which mining is done and an inspector for every mine who would
be sub ordinate to the chief inspector. Moreover, the District Magistrate is also empowered to
perform the duties of an inspector subject to the orders of the Central Government. The chief
inspector or any of the inspectors may make such inquiry, at any time whether day or night, in
order to check whether the law is being abided in the mines or not.

LAWS RELATING TO EQUALITY AND EMPOWERMENT OF WOMEN

Equal Remuneration Act, 1976

The Equal Remuneration Act, 1976 provides for the payment of equal remuneration to men and
women workers for the same work and prevents discrimination, on the ground of sex, against
women in the matter of employment, recruitment and for matters connected therewith or
incidental thereto. This Act applies to virtually every kind of establishment.

Maternity Benefit Act, 1961

The Maternity Benefit Act, 1961 (Maternity Benefit Act) regulates the employment of women
in certain establishments for a certain period before and after childbirth and provides for
maternity benefits and certain other benefits including maternity leave, wages, bonus, nursing
breaks, etc, to women employees.

The Maternity Benefit Act, 1961 applies to (a) a factory, mine or plantation including any such
establishment belonging to Government and to every establishment wherein persons are
employed for the exhibition of equestrian, acrobatic and other performances; (b) every shops or
establishments within the meaning of any law for the time being in force in relation to shops and
establishments in a State, in which ten or more persons are employed, or were employed on any
day of the preceding 12 months.

Except for s 5A and 5B, the provisions of the Maternity Benefit Act shall not apply to the
employees who are covered under the Employees' State Insurance Act, 1948 for certain periods
before and after child-birth and for which the ESI Act provides for maternity and other benefits.
The coverage under the ESI Act is, however, at present restricted to factories and certain other
specified categories of establishments located in specified areas. The Maternity Benefit Act is,
therefore, still applicable to women employees employed in establishments which are not
covered by the ESI Act, as also to women employees, employed in establishments covered by
the ESI Act, but who are out of its coverage because of the wage-limit.

Under the Maternity Benefit Act, an employer has to give paid leave to a woman worker for six
weeks immediately following the day of her delivery or miscarriage and two weeks following a
tubectomy operation. The maximum period for which a woman shall be entitled to maternity
benefit shall be 12 weeks, of which not more than six weeks shall precede the date of her
expected delivery.

A pregnant woman is also entitled to request her employer not to give her work of arduous
nature or which involves long hours of standing, etc, during the period of one month
immediately preceding the date of her expected delivery or any period during the said period of
six weeks for which the woman does not avail leave of absence. When a woman absents herself
from work in accordance with the provisions of the Maternity Benefit Act, it shall be unlawful
for her employer to discharge or dismiss her during or on account of such absence.

PROHIBITIVE LABOUR LAWS

Bonded Labour System (Abolition) Act, 1976

The Bonded Labour System (Abolition) Act, 1976 ( Bonded Labour Abolition Act) is a
prohibiting legislation which provides for the abolition of the bonded labour system with a view
to prevent the economic and physical exploitation of the weaker sections of the society, and
matters connected therewith or incidental thereto.

Under the Bonded Labour Abolition Act, the term "bonded labour" has been defined to mean any
labour or service rendered under the bonded labour system.
The term "bonded labour system" has been defined to mean the system of, forced or partly
forced, labour under which a debtor enters or has, or is presumed to have, entered into an
agreement with the creditor to the effect that:

i. In consideration of an advance obtained by him or by any of his lineal ascendants or

descendants (whether or not such advance is evidenced by the document) and in
consideration of the interest, if any, due on such advance; or
ii. In pursuance of any customary or social obligation; or
iii. In pursuance of any obligation devolving on him by succession; or
iv. For any economic consideration received by him or by any of his lineal ascendants or
descendants; or
v. By reason of his birth in any particular caste or community.

The debtor would render, by himself or through any member of his family, or any person
dependent on him, labour or service, to the creditor, or for the benefit of the creditor, for a
specific period or for an unspecified period, either without wages or for nominal wages.

Section 3 of the Bonded Labour Abolition Act provides that the provisions of this Act shall have
effect notwithstanding anything inconsistent therewith contained in any enactment other than this
Act or in any instrument having effect by virtue of any enactment other than this Act.

Section 20 of the Bonded Labour Abolition Act provides that whoever abets any offence
punishable under this Act shall, whether or not the offence abetted is committed, be punishable
with the same punishment as is provided for the offence which has been abetted. For the purpose
of this Act, "abetment" has the meaning assigned to it in the Indian Penal Code.

Child Labour (Prohibition & Regulation) Act, 1986

The Constitution of India incorporates provisions to secure labour protection to children. It

expressly prohibits the employment of a child below the age of 14 years in work in any factory
or mine or engagement in any other hazardous employment.

The policy of the Government is to ban the employment of children below the age of 14 years in
factories, mines and hazardous employments and to regulate the working condition of children in
other industries.

The Government enacted the Child Labour (Prohibition & Regulation) Act, 1986 (the Child
Labour Prohibition & Regulation Act), which prohibits the employment of children who have
not completed their 14th year in 16 occupations and 65 processes1 like cinder picking, cleaning
of ash pits, building operation, manufacturing or handling of pesticides and insecticides, and
manufacturing of matches, explosives, fireworks, etc.

In addition, the Child Labour Prohibition & Regulation Act regulates the working conditions of
children in all employments, which are not prohibited under the Act. It also fixes the number of
hours and the period of work and requires the occupiers of establishments employing children to
give notice to the local inspector and maintain the prescribed register.
Apart from the Child Labour Prohibition & Regulation Act, there are other legislations which
also protect the interest of child labour. For example, the Factories Act, 1948 and the Mines Act,
1952 prohibit the employment of children below the age of 14 years. The Children (Pledging of
Labour) Act, 1933, makes an agreement to pledge the labour of children void.

Directions of the Supreme Court on the Issue of Elimination of Child Labour

In a landmark judgment on 10 December 1996, in the case of MC Mehta v State of Tamil
Nadu (1996) 6 SCC 756 [Writ Petition (Civil) No. 465/1986], the Supreme Court of India gave
certain directions on the issue of elimination of child labour. The main features of the judgment
are as under:

i. Survey for identification of working children;

ii. Withdrawal of children working in hazardous industry and ensuring their education in
appropriate institutions;
iii. Contribution at the rate of Rs 20,000 per child to be paid by the offending employers of
children to a welfare fund to be established for this purpose;
iv. Employment to one adult member of the family of the child so withdrawn from work and
if that is not possible a contribution of Rs 5,000 to the welfare fund to be made by the
State Government;
v. Financial assistance to the families of the children so withdrawn to be paid out of the
interest earnings on the corpus of Rs 20,000/25,000 deposited in the welfare fund, as long
as the child is actually sent to a school; and
vi. Regulating hours of work for children working in non-hazardous occupations so that their
working hours do not exceed six hours per day and education for at least two hours is
ensured. The entire expenditure on education is to be borne by the concerned employer.

The implementation of the directions of the Hon'ble Supreme Court is being monitored by the
Ministry of Labour and Employment and compliance with the directions has been reported in the
form of affidavits on 5 December 1997, 21 December 1999, 4 December 2000, 4 July 2001 and 4
December 2003, to the Hon'ble Supreme Court on the basis of the information received from the
State Governments/Union Territories.

The Government is committed to eliminate child labour in all its forms and is moving in this
direction in a targeted manner.

Sexual Harassment at Workplace (Prohibition, Prevention and Redressal) Act, 2013

The Sexual Harassment at Workplace (Prohibition, Prevention and Redressal) Act, 2013 (SHW
Act) was enacted by the Parliament to provide protection against sexual harassment of women at
workplace and prevention and redressal of complaints of sexual harassment and for matters
connected therewith.

The SHW Act makes it mandatory for every organization having 10 employees and more to
constitute an Internal Complaints Committee (ICC) to entertain complaints that may be made by
an aggrieved women.
The SHW Act also incorporates provisions for formation of a Local Complaints Committee
(LCC) in every district for entertaining complaints of sexual harassment at workplace from
organisations where ICC has not been established due to having less than 10 employees.

The SHW Act provides that an aggrieved women may in writing make a compliant of sexual
harassment to the ICC or LCC as the case may be within a period of three months from the date
of occurrence of such incident. Further, in a case where the aggrieved woman is unable to make
a complaint on account of her physical incapacity or Death, a complaint may be filed inter alia
by her relative or legal heirs.

LAWS RELATING TO EMPLOYMENT AND TRAINING

Apprentices Act, 1961

The Apprentices Act, 1961 (the Apprentice Act) provides for the regulation and control of
training of apprentices to supplement the availability of trained technical employees for the
industry and matters in connection thereto. It provides for qualification for being engaged as an
apprentice, contract for apprenticeship, renewal of contract of apprenticeship, period for
apprenticeship, termination of apprenticeship contract, obligation of employers and obligations
of apprentices, payment to apprentices, health safety and welfare of apprenticeship, hours of
work, overtime, leave and holidays and other conditions of working of apprentice.

The Apprentice Act requires employers to hire apprentices in certain designated trades, as
notified by the Government. Accordingly, appointment of apprentices, according to the
Apprentice Act, will be obligatory if the company falls under the notified industry.

The Government is considering amending the Apprentices Act, 1961, in consultation with all
concerned Ministries. One of the proposed amendments relates to reserving 50% of direct
recruitment posts for trained Trade, Graduate, Technician and Technician (Vocational)
apprentices who have been trained under the Apprentices Act, 1961 in the same establishment.2

Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959

The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 (the

Employment Exchange Act) provides for the compulsory notification of vacancies to
employment exchanges by the employers. Section 4(1) of the Employment Exchange Act makes
it obligatory on every establishment in the public sector to notify, before filling up any vacancy
in any employment in that establishment, vacancies to such employment exchanges as may be
prescribed.

Further, s 4(2) of the Employment Exchange Act provides that the appropriate Government may,
by notification in the Official Gazette, require that from such date as may be specified in the
notification, the employer in every establishment in the private sector (ordinarily employing
more than 25 employees) or every establishment pertaining to any class or category of
establishments in the private sector shall, before filling up any vacancy in any employment in
that establishment, notify vacancies to such employment exchanges as may be prescribed.
E-Kranti: Ministry of Labour & Employment E-governance initiative

The Ministry of Labour & Employment has come up with a unique E-governance service called
"E-kranti" which aims to make government services accessible to the common man in his
locality, through Common Service Delivery outlets and ensure efficiency, transparency and
reliability at affordable costs. For the purpose of E-governance the ministry has also developed a
unified Web Portal called "Shram Suvidha Portal". This portal integrates four major
Organizations under the Ministry of Labour, Thef Chief central Labour Commissioner. The
Directorate General of Mines Safety, Employees' Provident Fund Organization and Employees'
State Insurance Corporation. The portal facilitates the following:

1. A Unique labour identification number (LIN) for Units to facilitate online registration.
2. Filing of self-certified and simplified Single Online Return by the industry Units.
3. Provides for filing a single consolidated Return online instead of filing separate Returns.
4. Timely redressal of grievances.
5. Transparent Labour inspection scheme through computerised system.