LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

LABOUR LAW AND INDUSTRIAL RELATIONS -II

Module 1 Module 2

SOCIAL SECURITY - Code on Social EMPLOYEE'S COMPENSATION - Code

Security, 2020 on Social Security, 2020

1. Object and Salient features with various 1. Concept - Employee, Employer,

Definitions under the Act Dependent, Disablement and its kinds.

2. Social Security Organizations 2. Employer's Liability for Compensation -

Conditions & Exceptions.
3. Employees Provident Fund
3. Social Security and Cess in Respect of
4. Employees State Insurance Corporation Building and Other Construction Workers.

5. ⁠Gratuity 4. Social Security for unorganized workers,

Gig Workers and Platform Workers.
6. Maternity Benefit
5. Authorities, Assessment, Compliance and
Recovery.

6. Offences and Penalties

7. Employment Information and Monitoring

Module 3 Module 4

THE OCCUPATIONAL SAFETY, SPECIAL PROVISION FOR CONTRACT

HEALTH AND WORKING LABOUR AND INTER - STATE
CONDITIONS CODE, 2020 MIGRANT WORKER, ETC (OSH Code)

1. Concept - definitions, registrations and 1. ⁠Contract Labour

Duties of Employer and Employee
2. Inter- State Migrant Worker sand types of
2. Occupational Safety, Health and working workers (Audio visual, Mines, Beedi and
conditions Cigar, Construction, etc)

3. Maintenance of Registers, Records and 3. Factories and Plantation

Returns.
4. Offences and Penalties
4. Special Provision Relating to Employment
of Women 5. Social Security Fund
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

Module1:

1. Define Social Security Code. What is Social Security?

• The Social Security Code, 2020 is a consolidated law that merges and simplifies nine existing social
security laws in India.
• It provides financial protection and social welfare benefits to workers in organized, unorganized, and
other sectors.
• The main objective is to ensure support in times of need, such as old age, unemployment, illness,
maternity, and accidents.
• Social security includes benefits like pensions, health insurance, employee provident funds, and maternity
leave.
• For example, a worker injured on the job may receive compensation and medical care through social
security schemes.

2. What is the Object and Salient Features of the Code on Social Security, 2020?
The Code on Social Security, 2020, was introduced to ensure social security for all workers and streamline
the existing labour laws in India. It provides a legal framework for the welfare of organized, unorganized,
and gig workers. The main purpose Is to simplify the complex system of labour laws and make social security
benefits easily accessible to workers.

• The Code aims to cover all employees, including organized, unorganized, and gig workers like food
delivery personnel.
• It consolidates nine existing laws, such as the Employees’ Provident Fund Act and Employees’ State
Insurance Act, into a single Code.
• The Code uses technology for registration and benefits, making the process easier and faster. Aadhaar is
integrated for identification.
• It provides gratuity benefits to fixed-term employees without requiring a minimum service period of five
years.
• Maternity leave benefits are enhanced, offering 26 weeks of paid leave for childbirth or adoption.
• It recognizes gig and platform workers and ensures they receive benefits under various social security
schemes.
• A National Social Security Board is established to create and monitor welfare schemes for unorganized
workers.
• Portability of social security benefits is introduced, allowing workers to carry their benefits across states.
• It introduces stricter penalties for employers who fail to comply with the provisions of the Code.
• The Code ensures voluntary coverage for establishments with fewer than 10 employees.
• It mandates employers to register their workers under appropriate social security schemes.
• Employees injured during employment are covered under disability and dependents’ benefits.
• The Code emphasizes creating a social security fund for unorganized workers and gig workers.
• It promotes equality in social security benefits across genders, including improved maternity protections.
• The use of digital platforms ensures transparency and accountability in the implementation of schemes.

3. Important definitions

a) Agent (Sec 2.1)

1. An agent manages, supervises, or controls part of an establishment.

2. They may act on behalf of the owner or the employer.
3. Appointment as an agent is not mandatory; their role can be informal.
4. They represent the owner's interests in various operations.
5. Commonly found in industries like retail, manufacturing, and construction.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

6. Responsible for implementing policies and maintaining discipline.

7. Examples include branch managers, site supervisors, or foremen.

Example: A manager at a supermarket oversees daily operations, employee work schedules, and customer
service.

b) Appropriate Government (Sec 2.3)

1. Defines the authority responsible for enforcing provisions of the Code.

2. Central Government governs industries like railways, ports, banking, and telecommunications.
3. State Government governs local establishments within a state’s jurisdiction.
4. Differentiates accountability based on the nature of the establishment.
5. Central Government is the authority for multi-state establishments.
6. Ensures clear implementation of laws across sectors.
7. Examples include the Central Government handling an aviation company and the State Government
managing a local factory.

Example: A thermal power plant under the Central Government, while a local manufacturing unit falls under the
State Government's jurisdiction.

c) Audio-Visual Production (Sec 2.4)

1. Includes any production combining sound and visuals, either fully or partially created in India.
2. Covers TV series, films, web content, advertisements, and animations.
3. Encourages digital and traditional media sectors.
4. Includes live-action, animated, or digitally produced content.
5. Protects workers in this dynamic and creative industry.
6. Includes sports shows and reality programs.
7. Examples include YouTube content creators or Bollywood filmmakers.

Example: A company producing animated educational videos for children falls under this category.

d) Building or Other Construction Work (Sec 2.6)

1. Covers construction, alteration, repair, and demolition of structures like roads, buildings, and bridges.
2. Excludes private residential construction costing less than ₹50 lakhs or employing fewer than 10 workers.
3. Includes major public infrastructure projects like dams or metro stations.
4. Protects workers involved in high-risk jobs.
5. Includes maintenance work related to irrigation and power distribution systems.
6. Provides guidelines for ensuring worker safety and benefits.
7. Examples include workers building a flyover or constructing office complexes.

Example: A labourer working on a government road development project.

e) Dependant (Sec 2.24)

1. Refers to relatives financially dependent on a deceased employee.

LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

2. Includes widows, minor children, and widowed mothers.

3. Extends to dependent parents, siblings, and grandchildren in specific cases.
4. Aims to secure the welfare of families after the breadwinner's death.
5. Provides clarity on eligibility for claims under social security.
6. Encourages employers to offer death benefits to families.
7. Examples include a minor child or a widowed parent.

Example: A factory worker’s wife and minor son receive compensation after the worker’s demise.

f) Dock Work (Sec 2.25)

1. Covers tasks related to loading, unloading, and moving cargo at ports.

2. Includes repairing port machinery and preparing ships for cargo handling.
3. Encompasses jobs inside and around the docks.
4. Focuses on ensuring worker safety in hazardous dock environments.
5. Encourages structured labour management in port operations.
6. Examples include crane operators and cargo handlers.

Example: A worker unloading containers at the Chennai Port falls under this definition.

g) Employee (Sec 2.26)

1. Any person working for wages, directly or indirectly, in an establishment.

2. Includes skilled, semi-skilled, and unskilled workers.
3. Excludes apprentices under training acts.
4. Covers both contractual and permanent employees.
5. Protects rights across various roles, from administrative to technical.
6. Examples include office clerks, factory labourers, and machine operators.

Example: A receptionist working for a private hospital is classified as an employee.

h) Employer (Sec 2.27)

1. Refers to anyone hiring one or more employees.

2. Includes factory owners, contractors, or government heads.
3. Responsible for ensuring compliance with social security laws.
4. Can be an individual, company, or government authority.
5. Includes legal representatives of deceased employers.
6. Examples include contractors hiring labourers and managers employing office staff.

Example: The owner of a textile factory employing 200 workers.

i) Establishment (Sec 2.29)

1. Refers to any location where business, trade, or manufacturing occurs.

2. Includes factories, plantations, and transport undertakings.
3. Covers industries engaging in various forms of employment.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

4. Considers all branches of an establishment as part of the same unit.

5. Examples include IT companies, tea estates, and garment factories.

Example: A corporate office in Hyderabad with multiple branches in other cities.

j) Factory (Sec 2.32)

1. A workplace employing 10 or more workers with power or 20 or more without power.

2. Excludes mines, military units, or restaurants.
3. Focuses on locations conducting manufacturing processes.
4. Ensures employee benefits in large-scale production units.
5. Examples include a car manufacturing plant or a paper mill.

Example: A footwear manufacturing factory with 50 workers.

k) Family (Sec 2.33)

1. Includes the employee’s spouse, minor children, and dependent parents.

2. Covers unmarried daughters and siblings reliant on the employee.
3. Ensures family welfare under social security schemes.
4. Extends support during emergencies like accidents or death.
5. Examples include dependent elderly parents or a student child.

Example: A worker’s wife and children are eligible for medical insurance under the worker's policy.

Fixed Term Employment (Sec 2.34)

1. Refers to hiring employees for a specific period through a written contract.

2. Such employees receive benefits similar to permanent workers.
3. Proportionate benefits are provided even if they do not meet the full eligibility period.
4. Their working hours, wages, and other allowances cannot be less than those of permanent employees.
5. Encourages flexible employment while safeguarding workers' rights.
6. Example: A web developer is hired on a six-month contract for a project.

Inter-State Migrant Worker (Sec 2.41)

1. A person employed in a state different from their home state.

2. Includes workers recruited by employers or those who migrate independently.
3. Must earn wages not exceeding ₹18,000 per month (or as notified by the government).
4. Protects the rights of workers moving for better opportunities.
5. Example: A construction worker from Bihar employed in Maharashtra.

Manufacturing Process (Sec 2.42)

1. Refers to activities like making, altering, repairing, or finishing goods.

2. Includes generating power, printing, or preserving items in cold storage.
3. Activities like constructing, breaking, or repairing ships are also included.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

4. Widely covers industrial activities essential for production.

5. Example: An assembly line in a car factory assembling vehicles.

Medical Practitioner (Sec 2.44)

1. A person registered under relevant laws or authorized by the state to provide medical services.
2. May include government-appointed doctors or specialists.
3. Ensures access to qualified healthcare providers for workers.
4. Example: A registered doctor providing treatment under the Employees’ State Insurance Scheme.

Permanent Total Disablement (Sec 2.56)

1. Refers to injuries causing a worker's permanent inability to perform any work.

2. Includes severe conditions like loss of both hands or complete blindness.
3. Compensation is calculated based on the worker's earning capacity.
4. Example: A worker losing both legs in an industrial accident qualifies for this category.

Plantation (Sec 2.59)

1. Land used for growing crops like tea, coffee, or rubber.

2. Must employ at least 10 workers or span 5 hectares or more.
3. Excludes medical officers and managerial employees.
4. Ensures workers in plantations receive proper wages and benefits.
5. Example: A tea estate in Assam employing labourers for crop cultivation.

Seasonal Factory (Sec 2.74)

1. Factories operating for specific seasons, such as cotton ginning or sugar production.
2. Includes those functioning for not more than seven months in a year.
3. Focuses on temporary workers' rights and safety.
4. Example: A sugar mill operational only during sugarcane harvest seasons.

Self-Employed Worker (Sec 2.75)

1. Individuals not employed by others but earning independently in unorganized sectors.

2. Includes those earning below a specific monthly threshold set by the government.
3. Covers small-scale occupations like tailoring, carpentry, or farming.
4. Example: A vegetable vendor selling produce independently.

Social Security Organisation (Sec 2.79)

1. Refers to organizations like Employees’ Provident Fund Organization (EPFO) and Employees’ State
Insurance Corporation (ESIC).
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

2. Includes state welfare boards for unorganized workers.

3. Manages and ensures proper implementation of social security schemes.
4. Example: EPFO overseeing provident fund accounts for salaried employees.

Unorganized Sector (Sec 2.85)

1. Small enterprises with fewer than 10 workers.

2. Includes self-employed workers and informal labourers.
3. Excludes establishments covered under organized labour laws.
4. Example: A small tailoring shop employing three workers.

Unorganized Worker (Sec 2.86)

1. Individuals working in unorganized sectors or as self-employed.

2. Covers workers not protected under formal labour laws.
3. Example: A daily wage labourer or a street vendor.

Wages (Sec 2.88)

1. Refers to all monetary compensation paid to a worker.

2. Excludes allowances like travel or house rent.
3. Includes basic pay, dearness allowance, and retention pay.
4. Example: A factory worker earning ₹15,000 as basic pay and ₹2,000 as dearness allowance.

Wage Worker (Sec 2.90)

1. A person working for wages in an unorganized sector.

2. Includes individuals hired temporarily or informally.
3. Example: A construction labourer hired for a specific project.

Woman (Sec 2.91)

• Any female employed directly or through a contractor.

• Eligible for benefits like maternity leave and workplace safety.
• Example: A female software engineer in an IT company.

4. What is the role of the Central Government in the constitution and functioning of the Central Board
of Trustees of the Employees' Provident Fund?

• The Central Government has the authority to set up the Central Board by issuing a notification. This is
the first step in organizing and managing the Employees' Provident Fund. (Section 4(1))
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• The Board must include a mix of officials such as a Chairperson and Vice-Chairperson, government
representatives, employer and employee representatives, and the Central Provident Fund Commissioner.
(Section 4(1))
• The Board manages the provident fund, ensures it operates correctly, and performs its functions as
outlined in the Code. (Section 4(7))
• The government can also set up an Executive Committee from the Board to handle specific tasks. For
example, the committee could oversee the day-to-day management of the fund. (Section 4(3))
• Delegating powers to the Chairperson or officers helps ensure tasks are carried out efficiently, as the
members cannot always handle everything themselves. (Section 4(5))
• The Board’s main aim is to ensure proper fund management, so the system remains trustworthy for
workers' retirement savings.

5. How does the Central Board ensure the effective functioning of Social Security Organisations and
what role do committees play?

• Committees made up of Board members help divide tasks and ensure that the work is spread out to manage
the schemes effectively. For example, one committee could focus on complaints, while another handles
fund distribution. (Section 4(4))
• By delegating tasks to the Executive Committee or officers, the Board ensures that specialized tasks are
performed by people with the right expertise, improving the overall efficiency. (Section 4(5))
• This delegation system helps avoid bottlenecks where important tasks could be delayed because of lack
of resources or expertise. (Section 4(5))
• In practice, this means that if there's a delay in processing a claim, the responsible committee or officer
can take action immediately without waiting for the full Board’s approval.

6. What are the disqualifications for being a member of a Social Security Organisation, and how can
a member be removed?

• A person can’t be a member if they’ve been declared bankrupt, are mentally unstable, or have committed
a crime of moral turpitude (like theft or fraud). This helps ensure that only trustworthy individuals manage
social security schemes. (Section 8(1))
• If someone misses too many meetings, they can be removed. For example, if a member is absent from
three consecutive meetings without a valid reason, they can be dismissed. (Section 8(2))
• A member can also be removed if their actions are seen as harming the public interest, like misusing their
position for personal benefit. (Section 8(2)(c))
• Resignation is also possible, and once a resignation is submitted and accepted, the member’s role ends.
(Section 8(3))
• For example, a member who has been found guilty of financial mismanagement can be removed to protect
the organisation’s integrity.

7. What procedures and rules are followed for the meetings and business transactions in Social
Security Organisations?

• Social Security Organisations hold regular meetings to make decisions and discuss business. The
frequency and structure of these meetings are set by the Central Government, ensuring consistency.
(Section 9(1))
• All decisions made at these meetings must be documented and signed off by a designated officer, such as
the Central Provident Fund Commissioner, to ensure accountability. (Section 9(2))
• Even if there is a vacancy or issue with the membership, decisions made are still valid, ensuring that the
organisation can continue operating smoothly. (Section 9(3))
• Members are paid a fee for their participation, which ensures that people take their roles seriously and
have an incentive to contribute to the organisation’s work. (Section 9(4))
• For example, when the Board needs to decide on a change to the fund's management, they meet regularly
to ensure everyone is aligned with the decision.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

8. What actions can the Central Government take if it finds a Social Security Organisation unable to
perform its duties?

• If a Social Security Organisation is struggling to fulfil its duties, for example, if it’s consistently delayed
in processing claims, the Central Government can dissolve and reorganize it. (Section 11(1))
• Before taking action, the government must give the organisation a chance to explain why it should not be
dissolved, ensuring fairness. (Section 11(1))
• If necessary, the government can set up temporary systems to keep operations going until the
reorganization is complete. For example, the government could appoint a temporary team to manage
claims until a new Board is formed. (Section 11(2))
• After taking action, the government must report to Parliament or the State Legislature within three months
to explain what happened and why. This ensures transparency and accountability. (Section 11(3))
• Example: If the Corporation continuously fails to manage worker benefits, the government steps in to
reorganize and bring in new management.

9. What are the powers and responsibilities of the Central Government regarding Social Security
Organisations?

a. The Central Government can assign extra tasks to Social Security Organisations (SSOs) like managing
other social security programs. (Section: 13)
b. These tasks could include managing new schemes, such as healthcare or support for different groups of
people.
c. The government can specify which officers will handle these extra jobs, and they may hire new officers
if needed.
d. The government ensures that the organisation has enough funds to carry out these new duties, including
money for new staff and resources.
e. The government may set guidelines on how these organisations should carry out the new tasks to ensure
they are done properly.
f. Before spending money on these new tasks, the Central Government must approve the budget.
g. For example, the government may assign a Social Security Organisation like EPFO to manage a new
healthcare program for low-income workers.
h. The government also ensures that there are checks in place to verify that the tasks are carried out according
to the rules.

10. What is the difference in the constitution and functions of the EPF, ESIC, NSSB and State
Unorganised Workers’ Board, and State Building Workers' Welfare Boards?

Aspect Employees' Employees' State National Social State Building

Provident Fund Insurance Security Board Workers' Welfare
(EPF) Corporation (NSSB) & State Boards
(ESIC) Unorganised Workers'
Board
Constitution The Central The Central The Central State Governments
Government forms Government forms Government creates the form the Building
the Central Board the Employees' National Social Security Workers' Welfare
by issuing a State Insurance Board for national-level Boards to manage
notification. Corporation by issues, and State the welfare of
issuing a Governments form the workers in the
notification. State Unorganised building and
Workers’ Board. construction sector.
Board Includes a Includes members Includes government Includes
Members Chairperson, Vice- representing officials, and members representatives
Chairperson, workers, representing from the
representatives employers, and unorganised workers government,
from government, employers, and
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

employers, government and employers from workers involved in

employees, and the officials. various states. the building and
Central Provident construction
Fund industry.
Commissioner.
Role and Manages the Oversees health and Manages welfare Looks after welfare
Function Provident Fund and insurance schemes schemes for schemes for
oversees the for workers. unorganised workers. workers in the
implementation of building sector,
the schemes under providing financial
the Act. support and health
benefits.
Disqualificatio Members can be Similar Members can be Similar rules apply.
n for Members disqualified for disqualification removed if they no Members can be
reasons like rules for longer represent the disqualified for
insolvency, mental insolvency, workers or employers, criminal activities,
illness, being criminal activity, or or fail to meet the conflicts of interest,
convicted for being unfit for required standards of or failing to
crimes, or being an office. conduct. represent workers
employer who has properly.
defaulted on dues.
Removal of Members can be Similar rules apply The government can Removal for not
Members removed for for removal, remove members who fulfilling the duties
misbehaviour, especially for fail to represent their related to worker
prolonged absenteeism or group properly or who welfare, or for
absenteeism (more failure to perform lack the necessary failing to represent
than three duties. expertise. workers’ interests
meetings), or if appropriately.
found unfit to serve.
Executive The Central An Executive Executive Committees The State
Committee Government may Committee can be can be created to assist Government may
form an Executive formed to help in the Boards in running form an Executive
Committee from decision-making specific programs. Committee to help
the Board members processes. in the
to assist in implementation of
functions. welfare programs.
Delegation of The Central Board Powers can be Powers may be Powers can be
Powers can delegate delegated to delegated to various delegated to
functions to its Executive officers or committees different officers or
Chairperson, Committees or to perform specific roles committees
Executive officers for effectively. responsible for
Committee, or managing specific specific welfare
officers for more tasks. programs in the
efficient building sector.
functioning.
Supersession or If the Central Board
If the Corporation If the Board is unable to If the Board fails to
Reorganization is unable to performfails to perform perform, the manage workers'
its functions, it can
properly, the government can welfare, it can be
be superseded and government can supersede and superseded and
reconstituted. supersede and reconstitute it to ensure reorganized by the
reorganize it. proper functioning. state government.
Tenure and Members’ terms Terms of office for The Central Terms of office for
Terms of Office and conditions are members are also Government defines the members are
defined by the specified by the terms for members of defined by the State
Central government. both the National Social Government, based
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

Government, Security Board and the on the specific

including tenure. State Unorganised needs of building
Workers’ Board. workers.
Additional The Central Additional The government may Additional welfare
Functions Government can functions can be assign additional tasks related to
assign additional assigned to the welfare roles, such as building workers
functions to the Corporation, managing healthcare can be assigned by
Central Board, like including managing schemes or providing the State
managing new new health or financial support to Government.
welfare schemes. insurance schemes. unorganised workers.

11. Describe the appointments and roles of officers under the Employees' Provident Fund Organisation
(EPFO).

• The Central Government appoints a Central Provident Fund Commissioner who is the main person
responsible for the Employees' Provident Fund Organisation (EPFO). (Section: 14)
• The government also appoints a Financial Advisor and a Chief Accounts Officer to help manage financial
matters and accounts.
• The Central Board can hire more officers like Additional Provident Fund Commissioners, Deputy
Provident Fund Commissioners, and Assistant Provident Fund Commissioners to manage the work.
• Some of these appointments require the government to consult the Union Public Service Commission
(UPSC), unless the position is temporary or the person is already a government officer.
• The salaries and allowances of these officers are decided by the Central Government or the Central Board.
• For example, if a Deputy Provident Fund Commissioner is appointed, their salary will be set according to
government rules or with special approval from the Board.
• The officers are responsible for ensuring smooth operations of the Provident Fund, Pension Scheme, and
Insurance Scheme, and making sure employees get their benefits on time.
• These officers also handle any disputes or complaints related to the Provident Fund accounts.

12. What is the role of the Central Government in creating and managing the Employees’ Provident
Fund, Pension Fund, and Insurance Fund?

• The Central Government creates and manages three key funds for employees to provide financial security
after retirement or in case of disability. (Section: 16-19)
o Provident Fund: The government ensures that both the employer and employee contribute a
percentage of the employee's salary to this fund, which helps employees save for retirement.
o Pension Fund: The government also manages a Pension Fund that provides pensions to
employees once they retire. This is funded through contributions from the employer.
o Insurance Fund: This fund gives life insurance benefits to employees in case of death or
permanent disability, funded by employer contributions.
• The government sets the percentage of wages to be contributed to each of these funds and ensures they
are properly managed.
• The government also ensures that employees can access their benefits when needed, like receiving a
pension after retirement or life insurance after an unfortunate incident.
• For example, if an employee retires after 30 years of service, they will receive a monthly pension from
the Pension Fund.
• If an employee dies unexpectedly, their family would receive a lump sum insurance payment from the
Insurance Fund.
• The government monitors the funds and ensures that they are used only for the intended purpose,
providing financial protection for employees.

13. What are the requirements and conditions for employers to maintain a Provident Fund account in
certain establishments?
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• Employers in certain establishments can manage the Provident Fund accounts directly if they are
authorized by the Central Government. (Section: 21-22)
• To get this authorization, the employer must apply to the government and have the approval of the
majority of employees in the establishment.
• The employer must have a clean record of paying Provident Fund contributions and not have any
violations in the past.
• Once authorized, the employer must follow the rules for managing the Provident Fund account, including
keeping proper records and paying contributions on time.
• The employer is also responsible for paying administrative charges to maintain the fund.
• If the employer does not follow the rules, the government can cancel the authorization but must give the
employer a chance to explain their actions.
• For example, a large company with 100 employees may apply to manage their own Provident Fund if
most of the workers agree to it.
• If the employer stops paying the contributions or doesn't keep proper records, the government may revoke
their permission to manage the fund.
• The employer must also allow inspections by the authorities to ensure that everything is being done
correctly.

14. What is the process for transferring provident fund or pension accounts when changing jobs?

• If an employee leaves a job and gets another one in a different establishment, their provident fund or
pension account can be transferred.
• The transfer will be done according to the rules in the Provident Fund Scheme or Pension Scheme (Section
22).
• This applies if the new job is under the same Provident Fund or Pension rules.
• The amount in the provident fund or pension account will be moved from the old employer to the new
one.
• The employee does not need to close the account; it just gets transferred.
• The employer and the employee both need to follow the steps outlined in the scheme to ensure smooth
transfer.
• If an employee moves to a new job that is not covered by the Provident Fund or Pension Scheme, they
might not be able to transfer the account.
• Example: If you leave one company and start at another company that also offers a Provident Fund, your
account balance will be moved from the old company’s fund to the new one.

15. What is the process to appeal to the Tribunal regarding provident fund disputes?

• If an employer or employee is unhappy with a decision made about provident fund dues or penalties, they
can appeal to a Tribunal (Section 23).
• The appeal must be filed within a certain time period, following the procedure laid out by the Central
Government.
• The person appealing must pay 25% of the amount decided by the officer before the Tribunal will accept
the appeal (Section 23(3)).
• The Tribunal reviews the case and tries to resolve it within a year from when the appeal is filed.
• Example: If the government says an employer owes a certain amount in provident fund dues, and the
employer disagrees, they can file an appeal.
• The appeal can be about dues determination or penalties for not paying the provident fund contributions
on time.
• The Tribunal will make a decision after considering all the facts of the case.
• If the employer doesn’t pay the initial 25% of the determined dues, the Tribunal won’t hear the appeal.

16. Explain the structure and functions of the Employees' State Insurance Corporation’ as per Chapter
IV.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• The Employees' State Insurance Corporation (ESIC) is managed by the Director General and Financial
Commissioner, who are appointed by the Central Government under Section 24.
• These two officials are in charge of the Corporation and its operations, such as managing funds and
implementing policies. They can serve up to five years and can be reappointed for another term.
• They get a salary and allowances that are decided by the Central Government.
• The Corporation can hire other staff to help with its functions, like doctors, clerks, and other
administrative workers. The conditions of their employment, including salaries and responsibilities, are
decided by the government.
• The Corporation has the authority to acquire property, manage funds, and even raise loans if needed.
Before doing any of these, they need approval from the Central Government.
• Example: The Director General might be responsible for making decisions on how funds are spent or for
ensuring the health services provided to workers are up to standard.

17. Discuss the purpose and administration of the Employees' State Insurance Fund according to the
provisions of the Code.

• The Employees' State Insurance Fund is managed by the Corporation and is meant to be used for the
benefit of insured employees and their families, as per Sections 25 and 26.
• Both employers and employees contribute to this fund. The fund is used for paying medical expenses,
sickness benefits, maternity benefits, and more.
• Donations or grants from other sources can also be added to the fund. For example, the government might
provide extra funds to help improve medical care for workers.
• The Fund is carefully managed. Every expenditure from the fund must be approved by the Central
Government. This ensures that the money is spent properly.
• The Fund is used for multiple purposes like paying medical bills for workers, setting up hospitals, paying
administrative salaries, and other necessary expenses to support workers.
• Example: If a worker gets injured at work, the fund can be used to cover their medical expenses or provide
them with financial support while they recover.

18. Describe the key provisions related to the contribution system under the Employees' State
Insurance Code.

• The contribution system ensures that both employers and employees pay their share of the contribution
to the Employees' State Insurance Fund, as mentioned in Section 29.
• The employer pays a part of the contribution, and the employee pays the other part. The Central
Government decides the exact contribution rate.
• Contributions are made regularly based on the employee’s wages. Employers are responsible for ensuring
these contributions are made on time.
• Employers also deduct the employee's share of the contribution from their wages. However, the employer
cannot take the employer’s share from the employee’s salary.
• Example: If a worker earns a monthly salary, both the worker and the employer will contribute a certain
percentage of the salary to the fund. This ensures that the worker can receive health benefits and financial
support if they are unable to work due to illness or injury.

19. What are the benefits available to insured persons under the Employees' State Insurance Code?

• The Employees' State Insurance Code offers several benefits to insured persons, as listed in Section 32.
• These include sickness benefits, where insured workers get financial help if they are sick and unable to
work.
• Women workers are entitled to maternity benefits if they are pregnant or experience related health issues.
• Disability benefits are available for workers who suffer from accidents or injuries at work and are left
with a disability.
• If an insured person dies because of a work-related injury, their family can receive dependents’ benefits.
• Insured workers and their families can also get medical treatment covered under the scheme.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• Example: If a worker is injured in an accident while working, they can receive regular payments to help
with living expenses until they recover, or they can get disability payments if they cannot return to work.

20. Explain the procedures for handling contributions and payments related to the Employees' State
Insurance.

• Contributions from both employers and employees need to be regularly paid to the Employees' State
Insurance Corporation. The contributions are calculated based on the employee’s salary, as per Section
29.
• The employer is responsible for collecting the contributions from employees and paying them to the
Corporation on time.
• Contributions are based on the wage period, which could be weekly, monthly, or according to other time
frames specified.
• Employers are also responsible for ensuring that they pay both their own share of the contribution and the
employee's share.
• Example: If an employer hires workers, they must make sure that both the employer’s and the employees'
contributions are paid regularly to the Corporation. For example, if a worker is paid weekly, the
contribution must be calculated and paid each week.

21. What are the administrative responsibilities and expenses of the Employees' State Insurance
Corporation?

• The Employees' State Insurance Corporation has several administrative responsibilities, including
managing the fund, delivering benefits, and running hospitals and other welfare services, as outlined in
Section 30.
• It must ensure that all funds are used for the purposes they were collected for, like health care and benefits
for workers.
• The Corporation can spend a portion of the fund on administrative expenses, such as the costs for running
offices, paying staff, and maintaining health facilities.
• The amount spent on administrative expenses is regulated, and the Corporation must keep these costs
within the set limits to ensure that most of the money goes to the workers' benefits.
• Example: The Corporation might spend money on setting up new medical facilities for workers or on
staff salaries to help manage claims and services efficiently.

22. How does the Employees' State Insurance Corporation acquire and manage property?

• The Employees' State Insurance Corporation has the authority to buy and manage property for its
operations, as stated in Section 27.
• It can acquire both movable and immovable property, sell it, or transfer it according to the needs of the
Corporation.
• The Corporation can also raise loans, with the approval of the Central Government, to help fund large
projects like building new hospitals or expanding services.
• Example: If the Corporation needs a new building to set up a hospital for workers, it can buy land or
property. It might also sell old, unused property to fund other projects.

23. What are the provisions related to the payment of benefits and the procedures for claiming them?

• Workers who are insured under the Employees' State Insurance scheme can claim various benefits, such
as sickness, maternity, disability, and dependents’ benefits, as outlined in Section 32.
• To claim these benefits, workers must follow certain procedures, like submitting a medical certificate in
the case of sickness, or providing proof of injury for disability claims.
• For maternity benefits, women workers must provide medical certificates to prove their pregnancy or
related health issues.
• If an insured worker dies from a work-related injury, their family can claim dependents' benefits to help
with their financial needs.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• Example: If a worker is sick and unable to work, they can claim sickness benefits by providing proof
from a doctor. The worker can receive regular payments until they are able to return to work.

24. What are the Corporation's powers regarding the health and welfare of insured persons under
Section 33?

• As per Section 33, the Corporation can take steps to improve the health and welfare of insured persons.
• It can also help insured persons who are disabled or injured to recover and find work again.
• Expenses for these activities come from the Employees' State Insurance Fund, within limits set by the
Central Government.
• The Corporation may introduce programs like free health check-ups for insured persons.
• Welfare programs could include organizing skill training for injured workers.
• Disabled employees may receive help with medical equipment, like wheelchairs or prosthetics.
• These efforts are in addition to regular benefits like medical or sickness support.
• Examples include free physiotherapy camps for injured workers or rehabilitation centers.
• It ensures that insured persons can return to work or lead independent lives after injuries.
• Programs aim to promote better physical and mental health for workers.
• The Corporation's measures ensure the safety net for workers extends beyond just financial help.
• This section highlights the proactive role of the Corporation in workers' welfare.
• Example: If a factory worker loses a limb in an accident, the Corporation may help with prosthetic limbs
and job retraining.

25. What is the presumption about accidents ?

• Under Section 34, an accident is presumed to have arisen from employment unless proven otherwise.
• This means if a worker is injured during work hours, it’s assumed the job caused the accident.
• If a worker helps others during an emergency and gets hurt, the injury is still considered work-related.
• For example, a worker injured while rescuing someone from a fire at the workplace is covered.
• Commuting accidents are included if there’s a connection between the accident, place, and time of work.
• Example: A worker hurt in a car accident on the way to the office can be covered if they were traveling
for work purposes.
• Accidents in company-provided transport are also considered work-related, even if the worker wasn’t
obligated to use the transport.
• Vehicles like buses, boats, and planes provided by the employer fall under this rule.
• The law ensures that employees are supported even in off-site or travel-related incidents.
• If the worker breaks a law but still acts to benefit the employer’s business, the accident is still covered.
• Example: A worker climbing an unsafe ladder against rules but doing so for work will still get
compensation.
• This section ensures workers' protection even in complex situations.
• Employers cannot deny responsibility for injuries that are reasonably linked to the job.

26. How does the law deal with occupational diseases ?

• Section 36 considers some diseases directly caused by specific jobs as "occupational diseases."
• These diseases are listed in a schedule divided into Parts A, B, and C based on the type of work.
• If a worker contracts such a disease, it’s assumed to be caused by their job unless proven otherwise.
• For example, miners exposed to silica dust who develop lung disease are covered.
• Workers in jobs listed in Part B need to work for at least six months to be eligible.
• In Part C, the Corporation decides the time limit for eligibility.
• Diseases not listed in the schedule require proof they were directly caused by work.
• Example: A painter developing skin allergies from workplace chemicals must prove the connection.
• This section ensures workers get benefits for health problems caused by their work environment.
• Occupational diseases are treated as employment injuries, ensuring proper compensation.
• It recognizes long-term health risks in industries like mining, construction, or manufacturing.
• Workers can claim medical, disablement, or dependants’ benefits for these diseases.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• This law protects workers exposed to harmful substances over time, ensuring accountability.

27. What provisions exist for medical benefits ?

• As per Section 39, insured persons and their families can receive medical benefits if needed.
• Benefits include outpatient treatment, hospital care, home visits, or in-patient care.
• For example, a worker needing surgery can get free treatment at an ESI hospital.
• Conditions and duration of these benefits are decided by the Central Government.
• Retired workers and their spouses can receive medical benefits by paying a contribution.
• Workers injured permanently during employment are entitled to ongoing medical benefits.
• The Corporation can set up medical colleges and training institutes to improve healthcare quality.
• These colleges may require students to serve the Corporation after completing their studies.
• Preventive health measures, like surveys to assess workers’ health risks, are included.
• The Corporation can collabourate with state governments or private bodies to provide treatment.
• Example: A partnership with private clinics can offer specialized care to workers.
• Employers and workers contribute to funding these medical benefits.
• This section ensures comprehensive healthcare for workers and their families.

28. What are the rights of the Corporation when an employer fails to meet their obligations under the
law?

• Under Section 42, if an employer fails to insure an employee at the time of hiring or within the prescribed
period, the employee may lose the benefits. Similarly, if an employer insures an employee after an
accident, the employee may be denied certain benefits like disablement or dependants' benefits.
• If an employer fails to pay the required contributions, it could result in the employee being denied benefits
or receiving lower benefits than entitled.
• If the Corporation is satisfied that the employee is entitled to benefits despite the employer’s failure, it
will pay the benefits directly to the employee.
• The Corporation has the right to recover the capitalised value of the benefits paid to the employee from
the employer. This amount is calculated as per the regulations set by the Central Government.
• The Corporation can also adjust the capitalised value to account for any unpaid contributions, interest, or
damages that the employer owes.
• Any amount owed by the employer under this section is recoverable as an arrear of land revenue or as
specified under sections 129 to 132 of the relevant law.
• This process ensures that the employee is not left without benefits due to the employer's negligence.
• The employer is given a chance to present their case before the Corporation proceeds with recovery.

29. How can the Corporation recover costs for excessive sickness benefits due to insanitary working
conditions?

• As per Section 43, if the Corporation finds that there is excessive sickness among insured persons because
of poor working conditions or neglect by the employer to follow health regulations, the Corporation can
make a claim for the extra sickness benefits it has to pay.
• This claim is directed towards the owner or occupier of the factory or establishment responsible for the
unhealthy conditions.
• If the claim is not resolved through agreement, the Corporation can refer the matter to the appropriate
Government for inquiry.
• The appropriate Government can appoint a competent person to investigate whether the excess sickness
was due to insanitary conditions.
• If the inquiry proves that the sickness was caused by the employer’s neglect, the Government will
determine how much the employer should pay to cover the extra sickness benefits.
• This amount can be enforced as a civil court decree, ensuring that the Corporation is compensated for the
extra expenditure incurred.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

30. What is the role of the Central Government in framing schemes for other beneficiaries and
unorganised workers?

• Under Section 44 and Section 45, the Central Government can create schemes to provide medical facilities
to people outside the regular employee insurance system, such as unorganised workers and their families.
• These schemes aim to offer medical treatment at hospitals underutilised by insured employees, with the
beneficiaries paying user charges for the services.
• The schemes can be amended or rescinded by the Government, depending on the needs and resources.
• The terms of the scheme, including the user charges and conditions, are decided by the Central
Government, ensuring that the medical services are accessible to a wider group of people.

31. How does the Employees' Insurance Court resolve disputes related to the benefits or contributions
under the law?

• As per Section 48 to 50, the State Government constitutes an Employees' Insurance Court to resolve
disputes related to the Chapter, such as questions about employee status, wages, contribution rates, and
eligibility for benefits.
• The Court also handles disputes between employers and the Corporation, or between employees and
employers concerning benefits, contributions, or other dues.
• The Court has the authority to summon witnesses, enforce the discovery of documents, and record
evidence, much like a Civil Court.
• The proceedings of the Court follow the rules set by the State Government, and all costs are at the
discretion of the Court.
• The Court’s decisions are enforceable as decrees passed by a Civil Court, ensuring compliance with the
law.
• The Court can refer legal questions to the High Court, and must follow the decision made by the High
Court on the matter.

32. What is the process and time limit for filing appeals in the Employees' Insurance Court?

• According to Section 51 and Section 52, any appeal to the Employees' Insurance Court must be filed
within three years from when the cause of action arises.
• A legal practitioner or authorized trade union officer can represent individuals before the Court, which
ensures that even those without legal expertise can seek help.
• If an employee or employer wants to appeal a decision, they must deposit 50% of the claimed amount
before the Employees' Insurance Court unless waived or reduced by the Court.
• Appeals involving substantial questions of law can be filed with the High Court within 60 days of the
Court’s order.
• The High Court can review the appeal and the Employees' Insurance Court must follow its decision.
• The provisions of the Limitation Act, 1963, apply to these appeals, allowing for some flexibility in the
filing process.

33. What happens if the Corporation identifies an employer’s failure to make contributions or
misrepresents facts regarding the payment of benefits?

• If an employer fails to make the required contributions, as per Section 42, and it affects the employee’s
benefits, the Corporation can directly pay the entitled benefits to the employee.
• The Corporation can then recover these amounts from the employer, including any capitalised value for
the benefits paid to the employee.
• If there is any misrepresentation or non-disclosure of material facts related to a claim, the Corporation
can review and adjust the dependents' benefits or discontinue them.
• Any false information provided to the Corporation can lead to revisiting the benefits already paid to ensure
that the correct amount is distributed to the rightful beneficiaries.
• This mechanism ensures transparency and accountability in the process of distributing benefits, making
sure that the employers meet their responsibilities.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

34. Explain the situations where gratuity becomes payable to an employee and the rules regarding its
payment.

a. Gratuity is payable to an employee who has completed at least five years of continuous service in cases
like superannuation, resignation, retirement, death, disablement, contract termination under fixed-term
employment, or any other event notified by the Central Government (Section 53).
b. Working journalists are eligible for gratuity after three years of service instead of five.
c. The five-year rule is not mandatory if employment ends due to death, disablement, or fixed-term contract
expiration.
d. In case of death, gratuity is paid to the nominee or heirs. For minors, their share is deposited with a
government authority for safekeeping until they reach adulthood.
e. The amount is calculated as fifteen days’ wages for every completed year of service, with adjustments for
piece-rated and seasonal employees.
f. For fixed-term or deceased employees, gratuity is paid on a pro-rata basis.
g. The maximum gratuity payable is as notified by the Central Government.
h. Employers cannot reduce gratuity if better terms are agreed upon in contracts or policies.
i. Gratuity may be forfeited wholly or partially if the employee causes damage, engages in violence, or
commits acts of moral turpitude during employment.

35. Define "continuous service" and explain how it is determined for gratuity eligibility.

a. Continuous service means uninterrupted employment, including breaks due to illness, leave, accidents,
strikes, lockouts, or any other employer-approved absence (Section 54).
b. Employees not in continuous service are deemed eligible if they worked at least 190 days (for mines or
less-than-six-day establishments) or 240 days (for other cases) in the last year.
c. For six months, eligibility requires at least 95 days of work in mines or 120 days in other establishments.
d. Seasonal employees qualify if they worked 75% of the operational days of the establishment.
e. Days counted as “worked” include those on leave with wages, temporary disablement, or maternity leave
(up to 26 weeks).
f. Continuous service also applies to work done before the law came into effect.

36. What are the rules for nominating beneficiaries for gratuity payments?

a. Employees who have completed one year of service must nominate beneficiaries in a prescribed form and
manner (Section 55).
b. Employees can divide the gratuity among multiple nominees.
c. If an employee has a family, nominations must be made in favor of family members. Nominations
favoring non-family members are void.
d. If the employee has no family, nominations can be made to anyone but must be revised upon acquiring a
family.
e. Employees can modify nominations at any time by notifying their employer.
f. If a nominee dies before the employee, a fresh nomination must be made.
g. Employers are responsible for keeping all nominations safe.

37. How is the amount of gratuity determined, and what steps must be followed for its payment?

a. Employees or their authorized representatives must apply for gratuity in writing to the employer (Section
56).
b. Employers must calculate and notify the payable amount as soon as gratuity becomes due.
c. Gratuity must be paid within 30 days of becoming payable.
d. Delays require the employer to pay simple interest unless the delay was caused by the employee.
e. Disputes regarding gratuity amount or entitlement are resolved by depositing the admitted amount with
the competent authority.
f. Employers, employees, or nominees can approach the authority to resolve disputes.
g. The authority can summon evidence, hold inquiries, and determine rightful payments.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

h. Employers must pay any additional amounts identified by the competent authority.
i. Appeals against the authority's decision can be made within 60 days, extendable by another 60 days for
valid reasons.

38. What is the requirement for insurance or gratuity funds, and what happens in case of non-
compliance?

• Employers must obtain insurance to cover gratuity payments from an authorized company unless
exempted (Section 57).
• Exemptions are granted to employers with approved gratuity funds or those employing 500 or more
workers.
• Employers must register their establishments and cannot register without valid insurance or funds.
• Governments may establish rules for the recovery of gratuity amounts from insurers or fund trustees.
• Failure to pay premiums or contribute to funds makes employers liable to pay gratuity directly, including
interest for delays.

39. What are the rules regarding the employment of women during pregnancy and post-delivery, and
the type of work they are allowed to perform?

• Women cannot be employed in any establishment for six weeks after delivery, miscarriage, or medical
termination of pregnancy (Section 59).
• Women are also not allowed to work during these six weeks for their health and safety.
• Pregnant women can request not to be assigned strenuous work, long-standing hours, or tasks that may
harm their health or pregnancy, starting one month before the expected delivery date and up to six weeks
after delivery.
• Arduous work" includes tasks requiring heavy effort or causing physical strain.
• Employers are legally required to accommodate such requests and provide suitable working conditions.
• These rules aim to ensure the health of both the mother and the unborn child.

40. What maternity benefits are women entitled to during and after pregnancy, and under what
conditions can they claim them?

• Women are entitled to maternity benefits at the rate of their average daily wages during their actual
absence from work (Section 60).
• To qualify, a woman must have worked for at least 80 days in the past 12 months at the same
establishment.
• Maternity benefits are provided for up to 26 weeks, with a maximum of 8 weeks before the expected
delivery date. Women with two or more children are entitled to 12 weeks of benefits.
• In cases of adoption or surrogacy, 12 weeks of benefits are provided for adopting or commissioning
mothers starting from the child’s handover.
• If a woman dies during pregnancy or post-delivery, the employer must pay benefits for the days up to her
death. If her child also dies during this period, benefits are paid up to the child’s death.
• Benefits can also include a medical bonus of ₹3,500 if the employer does not provide pre- and post-natal
care.
• The aim is to financially support women during pregnancy and post-delivery.

41. Important Case laws

1. Anuradha Arya v. Govt. Girl Sr. School, 2017 2. Municipal Corporation of Delhi v. Female
Workers (Muster Roll) & Anr, 2000
• Anuradha Arya was hired as a guest teacher by a
government school in 2010. • This case focused on women workers who are part
• Her contract was renewed, and she was posted to of the municipal corporation’s muster roll.
a school in New Delhi in 2015.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• She informed the school principal about her The court stressed that women, who make up
•
pregnancy and requested maternity leave. almost half of society, must be treated with respect
• The school denied her leave, saying temporary and dignity.
employees couldn’t get such benefits. • It said that women workers should have equal
• Anuradha was upset by this and approached the rights and protection at work.
Central Administrative Tribunal (CAT). • The judgment acknowledged that women workers
• The CAT ruled that even temporary workers are contribute significantly to society.
entitled to maternity leave. • The case urged that gender equality must be
• The court stated that women employees, even if on maintained in all workplaces.
contract, deserve maternity benefits. • The court confirmed that all workers, including
• The judgment made it clear that temporary women, should be treated fairly in their work
employees cannot be denied maternity leave. environment.
• The ruling aimed to improve conditions for female
workers employed in municipal jobs.
• It called for the protection of women’s rights at
work, ensuring they receive their legal benefits.
3.Mamta v. Employee State Insurance 4. Thomas John Muthoot v. Labour Officer, 2014
Corporation, 2014
• This case involved a firm with only 3 employees.
• Mamta was a worker who gave birth and needed • The court ruled that such small firms are not
maternity benefits. required to follow the Employees' Provident Fund
• The court ruled that giving birth and caring for the (EPF) Act.
child is a fundamental right for both women and • It stated that businesses with fewer than 10
children. employees do not need to comply with EPF
• It said that employers are required to pay maternity regulations.
benefits to female workers. • The ruling excluded smaller businesses from
• The ruling made clear that the employer should following some employment laws related to EPF.
pay for the maternity leave, even if the worker is • The case highlighted the fact that EPF rules only
on contract. apply to businesses with a certain number of
• The case emphasized that maternity benefits are a employees.
legal entitlement, not just a favor. • The judgment also clarified that the law does not
• The judgment focused on the rights of women to apply to specific industries, like those run by the
receive financial support during maternity. central government.
• It confirmed that the employer's responsibility is • It made exceptions for industries involved in
to pay maternity benefits regardless of the performances like acrobatics.
worker’s status. • The court pointed out that businesses with fewer
• The court made it clear that companies cannot employees may be exempt from certain welfare
deny maternity leave to their female employees. provisions.

5. Jay Shree Tea and Industries Ltd. v. Chief 6. National Tobacco Co. of India Ltd. and Ors v.
Inspector of Plantations, 1998 Fourth Industrial Tribunal and Ors, 1959

• The case involved a woman who had a • The case involved an employee dismissed for
miscarriage. gross misconduct.
• The court ruled that a worker suffering a • The court ruled that gross misconduct justifies
miscarriage can claim leave, even if she hasn’t immediate dismissal without a lengthy legal
worked 160 days in the last 12 months. process.
• The ruling stated that workers should be entitled • The judgment clarified that employees accused of
to special leave in case of miscarriage, regardless serious misbehavior cannot challenge their
of the number of workdays. dismissal.
• It emphasized the importance of health and well- • It confirmed that employers have the right to act
being during such difficult times. immediately in such cases.
• The court protected the rights of women workers • The ruling stressed that the severity of misconduct
during periods of health-related issues like makes immediate action necessary.
miscarriage.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• The ruling confirmed that women can seek leave • It made clear that misconduct like theft or
for miscarriage without worrying about their work dishonesty warrants dismissal without delay.
duration. • The case highlighted that employers can take
• It clarified that miscarriage leave is a right for decisive action when an employee’s behavior
women workers. harms the workplace.
• The judgment showed the importance of • The court ensured that employees cannot exploit
considering the well-being of workers, especially legal procedures to contest their dismissal in such
in cases of miscarriage. cases.
7. Glem Brook Estate v. Plantation Officer, 2012 8. Union Bank of India v. C.G. Ajay Babu and
Another, 2018
• The case involved daily wage workers and their
right to maternity benefits. • Ajay Babu, a branch manager at Union Bank of
• The court ruled that even daily wage workers are India, was involved in disciplinary proceedings.
entitled to maternity benefits. • The bank initiated action against him, but the court
• It confirmed that workers on daily wages should ruled it wasn’t sufficient proof of an offense.
receive the same maternity benefits as full-time • The judgment stated that the bank cannot decide if
employees. an offense occurred without proper legal evidence.
• The ruling made it clear that workers, no matter • It ruled that if a worker is accused of a moral
how they are paid, are entitled to support during offense, the employer cannot forfeit their benefits,
maternity. like gratuity, without criminal court confirmation.
• The case ensured that casual and temporary • The case clarified that only a criminal court can
workers are not excluded from maternity leave. determine if someone is guilty of a moral offense.
• The court emphasized that the law must treat all • It reinforced that an employer cannot bypass legal
workers fairly, regardless of their job type. processes to punish an employee.
• It stressed the importance of providing maternity • The court protected employees from unfair
benefits to all workers, including daily wage treatment in cases involving allegations of moral
earners. turpitude.
• The ruling protected the rights of daily wage • It ensured that workers’ rights to their benefits,
workers, ensuring they are treated equally in terms such as gratuity, are protected unless proven guilty
of benefits. by a court.

9. Employees State Insurance Corporation & Anr 10. Nagar Nigam, Kanpur v. Sri Mujib Ullah
v. Mangalam Publications, 2018 Khan, 2019

• The case focused on interpreting statutory • This case involved municipal employees claiming
provisions for workers’ benefits. gratuity.
• The court ruled that if there is a choice between • The court ruled that employees are entitled to
two interpretations of a law, the one benefiting gratuity under the Payment of Gratuity Act.
workers should be preferred. • It emphasized that gratuity payments should be
• The judgment emphasized the need for workers to made promptly when employees leave their jobs.
receive the maximum benefit from employment • The ruling confirmed that gratuity is a legal right,
laws. not a privilege.
• It clarified that laws should protect the working • The court clarified that all workers, including
class and ensure they receive their due benefits. municipal employees, are entitled to gratuity.
• The ruling encouraged a broader interpretation of • It stated that gratuity payments are important for
the law to ensure better social security for workers. workers’ financial security after leaving
• It confirmed that workers must be given the employment.
benefit of any legal doubt. • The judgment focused on the fairness of gratuity
• The case showed that workers’ rights should take payments for workers.
precedence over strict interpretations of the law. • It ensured that workers receive their benefits when
• The court aimed to ensure that workers receive all they retire or leave a job.
protections available under the law.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

11. The Pachora Peoples Co-Op Bank Ltd v. 12. Royal Western India Turf Club Ltd v. E.S.I.
EPFO, 2017 Corpn., 2016

• The case involved pigmy agents working at a • The case dealt with casual workers under the ESI
cooperative bank. Act.
• The court ruled that these pigmy agents are • The court ruled that casual and part-time workers
“workmen” and should receive employee benefits. are entitled to ESI benefits.
• It confirmed that commission paid to agents • The judgment clarified that any worker, even those
should be considered as part of their wages. employed for short periods, should receive ESI
• The judgment emphasized that all workers, benefits.
including those on commission, are entitled to • It ensured that temporary workers are covered by
provident fund benefits. social security.
• It extended the coverage of employee welfare laws • The ruling made it clear that part-time and casual
to casual agents. workers also deserve health benefits under ESI.
• The case clarified that the commissions earned by • The case reaffirmed that all types of workers must
agents are a form of basic wages. be covered by social security laws.
• The court broadened the definition of "employee" • The court emphasized that all workers, regardless
to include such agents. of contract type, should be entitled to the same
• It made clear that commission-based workers are benefits.
entitled to the same legal protections as salaried • The ruling protected workers from being excluded
employees. from important benefits like medical care.
13. Employees’ State Insurance Corporation v. 14. Fazlu Rahim Ansari v. National Insurance
Venus Alloy Pvt. Ltd., 2019 Company Limited, 2019

• The case involved a company that claimed its The case involved a dispute about whether
•
directors were not employees under the employees working through subcontractors were
Employees’ State Insurance Act (ESI Act). entitled to benefits.
• The court ruled that directors who receive a salary
• The court ruled that workers hired through
or remuneration are considered employees. subcontractors should be treated as employees.
• The judgment clarified that even directors who
• The judgment confirmed that these workers
take a salary can be covered by the ESI Act. should receive the same rights as direct
• The ruling extended employee benefits under the employees.
ESI Act to company directors. • It made it clear that subcontracted workers are still
• It emphasized that directors cannot escape the covered by employment laws, including social
obligations of the ESI Act simply because of their
security benefits.
position. • The ruling protected workers from being deprived
• The case made it clear that if a person is paid aof their legal entitlements simply due to their
salary, they qualify for social security benefits.
employment arrangement.
• The ruling helped protect the welfare of company
• The case clarified that employment through a
directors, ensuring they receive medical benefits.
subcontractor does not exclude workers from
• It reinforced the broad definition of "employee" benefiting from labour laws.
under the ESI Act, ensuring no one is excluded
• The court emphasized that workers' rights must be
unfairly. upheld regardless of whether they are directly
employed or hired through a third party.
• It ensured that workers remain entitled to the same
protections, including insurance benefits, even if
hired through a subcontractor.
15. Jaya Biswal v. IFFCO Tokio General Insurance 16. Sr. Senior Superintendent of Post v. Gursewak
Co Ltd, 2016 Singh, 2019

• The case focused on an employee’s claim for • The case dealt with a part-time worker in the
compensation from an insurance company. postal department.
• The court ruled that the High Court cannot • The court ruled that part-time workers (Gramin
interfere with the decision made by a lower court Dak Sewaks) are not considered "employees"
without a substantial legal question. under the law.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• It confirmed that simply reducing compensation in • It confirmed that only full-time workers qualify
the name of "justice" was not enough for the High for employee benefits such as provident fund and
Court to step in. gratuity.
• The judgment clarified that High Courts cannot • The ruling highlighted the distinction between
change decisions arbitrarily, especially when no part-time and full-time employees in terms of legal
legal question is involved. rights.
• It ensured that workers' compensation decisions • The judgment clarified that part-time workers do
are respected, unless there is a clear legal issue. not fall under the same protections as full-time
• The case emphasized that workers' claims should employees.
not be reduced unfairly without proper reasoning. • The case reinforced that employment status
• The ruling confirmed that the workers' rights to determines eligibility for benefits.
fair compensation must be upheld. • The court ruled that such workers could not claim
• It stressed that judicial intervention should be employee benefits unless their employment was
based on legal grounds, not just convenience. full-time.

17. Zuari Cement Ltd v. ESI Corporation, 2015 18. Bharat Heavy Electricals Ltd. v. State of U.P.
(1992)
• The case dealt with a company seeking an
exemption from the ESI Act. • The case focused on an employer's obligations
• The court ruled that only the government has the under the Employees' Provident Fund (EPF) Act.
power to grant exemptions from the ESI Act. • The court ruled that the company was required to
• It emphasized that the Employees' State Insurance contribute to the EPF for its workers.
Court cannot grant exemptions. • It confirmed that the EPF Act applies to all eligible
• The ruling clarified that the government, not the workers, and employers must make contributions.
ESI Corporation, holds authority in granting such • The judgment clarified that non-compliance with
exemptions. EPF regulations can lead to legal consequences for
• The judgment confirmed that the ESI Corporation employers.
does not have the jurisdiction to exempt employers • It emphasized the importance of workers' rights to
from the Act. social security benefits like EPF.
• The case highlighted the importance of following • The case reaffirmed that EPF contributions are
the law when it comes to providing employee mandatory for businesses that meet the required
benefits. criteria.
• It reaffirmed that employers cannot bypass legal • It showed that the law protects workers’ future
obligations by seeking exemptions without financial security, particularly through pension
government approval. schemes like the EPF.
• The ruling protected workers' rights to health • The ruling highlighted that employers cannot
benefits under the ESI Act, ensuring they are not escape their responsibility to contribute to
deprived due to employer actions. workers' EPF accounts.

MODULE 2

1. What is the procedure for reporting fatal accidents and serious bodily injuries in the workplace?

• As per Section 73, if an accident occurs that results in death or serious injury, the person responsible must
report the incident to the competent authority within seven days.
• The report should describe the circumstances of the injury or death, such as how and when the incident
occurred.
• Serious bodily injury refers to injuries that may permanently affect a person's ability to use a limb, or
cause permanent injury to sight or hearing, or require more than 20 days for recovery.
• If the state government allows, the report can be sent directly to the authority where the notice is required,
rather than the competent authority.
• In certain cases, such as where the employer is covered by the Employees' State Insurance Act, these
provisions do not apply.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• The law makes it clear that it is the responsibility of the employer or a person designated to send these
reports promptly.
• An example could be a worker suffering a permanent injury due to a factory machine malfunction. This
needs to be reported as per the law.
• The report ensures that the concerned authorities are informed to take necessary action for the safety of
the workplace.
• This section also allows state governments to include other establishments by notifying them accordingly.

2. What is the employer’s liability for compensation in case of injury or disease at work?

• Section 74 explains that if an employee suffers personal injury due to an accident or occupational disease
while working, the employer is responsible for paying compensation.
• However, this liability does not apply if the injury does not cause total or partial disability for more than
three days.
• Additionally, the employer is not liable if the injury is due to the employee being under the influence of
alcohol or drugs, or if the employee willfully disobeys safety rules.
• Accidents or diseases will still be considered work-related even if the employee was violating laws or
working without employer instructions at the time.
• For example, if a worker develops lung disease from exposure to dust in a factory, and the employer was
aware of the risk, the employer would be liable.
• Even if the employee was not following safety instructions, the employer is still responsible if the act was
related to the work.
• If an employee contracts a disease listed as occupational, such as lung disease from exposure to toxic
substances, it’s considered a work-related injury under this law.
• Compensation is also applicable in cases where an employee is injured while commuting to or from work
if the accident is linked to their employment.
• This section also clarifies that if the employer modifies work conditions or adds to the list of occupational
diseases, those changes are applicable.

3. How is the amount of compensation decided for injuries or death at the workplace?

• Section 76 outlines the compensation amount based on the severity of the injury or death.
• If an employee dies as a result of an injury, the compensation is at least 50% of their monthly wages,
multiplied by a relevant factor.
• For permanent total disablement, compensation is 60% of the employee’s monthly wages, also multiplied
by the relevant factor.
• If the injury leads to permanent partial disablement, the compensation is calculated based on the extent
of the disability, such as the percentage of body loss as stated in the Fourth Schedule.
• For temporary disablement, the employee will receive half-monthly payments of 25% of their monthly
wages.
• If an employee dies due to an accident, the employer must also pay for funeral expenses, a minimum of
₹15,000, or as determined by the state.
• For example, if an employee dies in an accident, their dependents will receive compensation for loss of
life, which is calculated based on their wages.
• In cases of multiple injuries from the same accident, compensation is combined but cannot exceed the
amount for permanent total disablement.
• The law ensures that workers and their families are compensated fairly for work-related injuries.

4. What are the employer’s obligations regarding compensation payment?

• Section 77 discusses the payment schedule for compensation and the consequences of delayed payment.
• Compensation should be paid as soon as it is due, and if the employer delays payment for more than a
month, they must pay interest on the amount due.
• If the employer refuses or delays payment, they may also be required to pay additional damages of up to
50% of the compensation amount.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• For example, if an employer fails to pay an employee’s compensation for an injury within one month,
they will owe extra interest and possibly damages for the delay.
• However, the employer can make provisional payments if they do not accept the full claim amount, and
this will be considered without affecting the employee's right to claim further compensation.
• The competent authority will oversee the payment and ensure that the employee or their dependents
receive the due compensation.
• This provision encourages employers to pay compensation promptly and penalizes unnecessary delays.
• The employee is entitled to both the compensation and any interest or damages due to late payment.
• If an employee has already filed a lawsuit for the same accident, they cannot claim compensation from
this law as it conflicts with civil court claims.

5. How is monthly wage calculated for compensation purposes?

• Section 78 defines how to calculate an employee’s monthly wages for the purpose of compensation.
• If the employee worked for at least twelve months before the accident, the total wages earned in the last
twelve months are used to calculate the monthly wages.
• If the employee worked less than a year, the wages are calculated based on the average monthly earnings
of someone doing the same work in the same locality.
• If there is not enough information to calculate the wages, the monthly wage is determined by taking the
total wages earned during the last continuous service period and dividing it by the number of days worked.
• For example, if an employee worked for six months and earned ₹30,000, their monthly wage would be
₹5,000.
• If the employee worked in multiple roles during the year, the average wages from similar workers in the
same field are used.
• This ensures that the compensation is fair and based on actual earnings rather than arbitrary figures.
• The law also considers that the employee’s period of service should not be interrupted by more than 14
days to be considered continuous.
• This provision ensures that the compensation is calculated based on the employee's earnings and not just
a fixed amount.

6. How are half-monthly payments and reviews handled for employees on compensation?

• Section 79 provides guidelines for reviewing half-monthly compensation payments if the employee’s
condition changes.
• Either the employer or the employee can apply to the competent authority for a review of the payment,
based on a change in the employee’s medical condition.
• The competent authority can adjust the payment, either increasing or decreasing it, depending on the
employee's recovery or worsening condition.
• If the employee’s condition changes from temporary to permanent disablement, the compensation can be
converted into a lump sum payment.
• For example, if an employee recovers after an injury but suffers a permanent disability later, the payments
can be adjusted accordingly.
• The review is based on medical certificates provided by a practitioner, which ensures that the
compensation is aligned with the employee’s health status.
• This review ensures that the compensation is fair and responsive to the employee’s current situation.
• If the employee fully recovers before the next half-monthly payment, the compensation will be stopped
or adjusted based on the recovery.
• This section protects both the employee’s right to fair compensation and the employer from overpayment
if the injury heals.

7. What are the rules for commutation of half-monthly payments and distribution of compensation?

• Employees can convert half-monthly payments into a lump sum if agreed upon, or after six months, with
approval from the authority.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• Compensation for death, disability, or legal disability must be paid to the competent authority, not directly
by the employer.
• The authority will decide how to fairly distribute the compensation to the dependents of a deceased
worker.
• If an employee dies, the employer can give up to three months' salary to the dependents in advance, which
will be deducted from the final compensation.
• For compensation amounts over five thousand rupees, the authority can hold the money on behalf of the
person entitled.
• The authority will divide the compensation fairly among the dependents based on their needs.
• If the person entitled to compensation is unable to manage it, the authority can invest it or appoint someone
to manage it.
• If the situation changes, the authority can alter how compensation is shared, but only after hearing from
everyone involved.
• If compensation is obtained fraudulently, it can be recovered as unpaid taxes.
Example: If an employee dies in a workplace accident, the compensation will be split between his wife,
children, and parents, based on what the authority thinks is fair. If the wife is unable to manage the
compensation, the authority might give it to her son.

8. What are the notice and claim requirements for compensation, including special provisions for
accidents outside Indian territory?

• The accident notice should be given to the employer as soon as possible. Claims must be filed within two
years of the injury or death.
• The notice must include the employee’s name, address, injury cause, and the date of the accident.
• Employers need to keep a book where employees can report accidents.
• Special rules apply to workers overseas, such as seamen, to file claims.
• If a worker is overseas, the ship captain or aircraft pilot should be informed about the accident.
• Claims for overseas workers must be filed within a year after death or 18 months if the ship or plane is
lost.
• Declarations made by witnesses from other countries are allowed if they meet certain rules.
• If the notice or claim is late, it may still be accepted if the authority believes the delay is justified.
Example: A seaman working on a ship overseas has an accident. His family can still claim compensation
as long as they do so within the prescribed period, even if the ship is lost.

9. What are the medical examination rules, and how does the law address contracting and employer
liability?

• Employees must undergo a medical exam if requested by the employer, as often as the law allows.
• If an employee refuses the exam without a good reason, they may lose the right to compensation until
they comply.
• If an employee leaves the job site without medical examination, compensation rights are suspended until
they return and follow the rules.
• If the employee’s refusal to take the exam makes the injury worse, compensation will be reduced.
• Employers are responsible for compensating employees who work under contractors, just like direct
employees.
• Employers can ask the contractor to pay for compensation if needed.
• Employees can claim compensation directly from the contractor if they prefer.
• The employer is responsible for accidents that happen on their premises or work under their control.
Example: An employee working under a contractor gets injured. Even though the contractor is in charge,
the employer still has to pay compensation because the accident happened at the worksite managed by
the employer.
10. What is the process for the employer to report a fatal accident, and how does the competent authority
handle such cases?
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

a. Sections 88 to 94 outline the process where, upon learning of an employee's death due to a work-related
accident, the competent authority sends a notice to the employer requiring a statement about the
circumstances and whether they believe they are liable for compensation.
b. The employer must submit the statement within 30 days, detailing the situation and stating if they believe
compensation is due.
c. If the employer acknowledges liability, they must deposit the compensation within 30 days of receiving
the notice.
d. If the employer denies liability, they must provide the reasons in their statement.
e. If the employer disclaims liability, the competent authority informs the deceased's dependants about their
right to file a claim for compensation.
f. The competent authority may offer legal assistance to the dependants if they are unable to afford it, by
providing an advocate from the state government’s panel.
g. If the compensation amount deposited by the employer is insufficient, the competent authority can order
a further deposit.
h. In case the employer fails to respond or show cause, the competent authority can make an award
determining the correct compensation.
i. The competent authority’s decision resolves disputes regarding liability, compensation, and duration.
Civil courts are excluded from such matters.
j. Example: If an employee dies in a workplace accident, and the employer claims not to be at fault, the
dependants can still apply for compensation through the competent authority, which will decide the
amount and whether the employer needs to pay.

11. How are agreements related to compensation registered and enforced, and what happens if the
employer fails to register an agreement?

a. Sections 89 and 90 discuss that any lump sum compensation agreements, whether for a redemption of a
half-monthly payment or otherwise, must be sent to the competent authority for registration.
b. The competent authority records the agreement in a register if the employer’s memorandum is verified,
ensuring the fairness and authenticity of the agreement.
c. If the agreement is made with a person under legal disability, or a woman, and the compensation is
considered inadequate or obtained improperly, the competent authority can refuse registration.
d. Once registered, the agreement becomes enforceable under the law, even if it doesn't comply with the
Indian Contract Act, 1872.
e. If the employer fails to register the agreement, they are still liable to pay the full compensation as per the
law.
f. The employer will not be allowed to deduct more than half of any compensation already paid if the
agreement is not registered, unless the competent authority allows it.
g. Employers must follow the prescribed rules for submitting agreements for registration to avoid facing
these consequences.
h. Example: If an employer and employee agree on a lump sum compensation payment but fail to register it
with the competent authority, the employer will be liable for the full compensation amount as the
agreement cannot be considered valid unless registered.

12. What are the powers and procedures of the competent authority in handling compensation claims
and disputes?

a. Sections 95 to 98 give the competent authority powers similar to a civil court, such as taking evidence
under oath, summoning witnesses, and producing documents for compensation cases.
b. The authority can determine the amount of compensation, enforce its decisions, and resolve any disputes
related to work injuries.
c. If legal questions arise, the competent authority can refer them to the High Court for clarification, ensuring
correct legal interpretation.
d. Any person involved in the case can be represented by a legal practitioner, an insurance official, or even
an inspector appointed under the law.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

e. The competent authority maintains thorough records of proceedings, ensuring transparency and fairness
in decision-making.
f. It can transfer cases to another competent authority if handling the case in a different jurisdiction would
be more efficient or convenient.
g. If the matter involves employees working outside India, the competent authority can refer the case to the
relevant jurisdiction for resolution.
h. Appeals can be made to the High Court if there is a substantial legal issue or if the amount in dispute is
over a certain threshold.
i. Example: If a worker suffers a fatal injury at a construction site, and there is a dispute regarding the
compensation amount, the competent authority will investigate the case, ensure all necessary evidence is
gathered, and may refer the matter to the High Court if needed.

13. Explain the provisions related to the levy, collection, and management of cess under Chapter VIII of
the Code.

a. A cess is charged for the welfare of building workers at a rate between 1% and 2% of the construction
cost, excluding land cost and employee compensation.
b. The cess is collected from employers through methods like deduction at the source (e.g., government or
public sector projects) or advance payment via local authorities.
c. Collected cess is deposited with the Building Workers' Welfare Board in the prescribed manner.
d. If the cess is not paid on time, the employer must pay interest for the delay, as decided by the government.
e. The government can exempt employers from paying cess if a similar levy already exists under state laws.
f. Employers must self-assess the cess amount within 60 days of completing the construction work and pay
accordingly.
g. If discrepancies are found in self-assessed cess, the concerned authority can reassess and issue a payment
order.
h. Penalties, up to the amount of unpaid cess, can be imposed for delays, but employers are given a chance
to explain before any penalty is finalized.
i. Example: A builder completing a ₹5 crore project (excluding land) must pay cess, e.g., 1% = ₹5 lakh.
This amount is used for workers' welfare.

14. What are the provisions for the welfare of building workers under Chapter VIII?

a. Building workers aged 18–60, with at least 90 working days in the past year, can register as beneficiaries
with the welfare board.
b. Workers stop being beneficiaries at 60 or if they work less than 90 days in a year, except when absent due
to workplace injuries.
c. Workers registered for at least three continuous years before turning 60 are eligible for benefits even after
retiring from construction work.
d. The welfare fund is created with money from cess, government grants, and other approved sources.
e. The fund is used for welfare activities, such as housing, education, medical aid, and pensions for
construction workers.
f. Administrative costs like salaries and office expenses cannot exceed 5% of the fund’s total expenses in a
financial year.
g. The welfare board ensures funds are properly managed and reach eligible workers.
h. Examples of benefits include pensions for retired workers, scholarships for their children, and health
insurance for families.
i. Example: A carpenter working continuously for four years can access pensions and medical benefits for
life after turning 60.

15. What are the provisions for appeals and dispute resolution regarding cess payments and penalties?

a. Employers can appeal against cess assessments or penalties if they disagree with the decisions made by
the authority.
b. Appeals must be filed within the prescribed time and in the format specified by the government.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

c. A fee, determined by the government, must be paid to file an appeal.

d. The appellate authority hears the case, gives the employer a chance to explain, and resolves the matter as
quickly as possible.
e. Decisions made by the appellate authority are final and cannot be challenged in any court.
f. Before imposing a penalty for non-payment of cess, employers are given an opportunity to explain their
delay or reasons for default.
g. Penalties are only imposed if no valid justification for non-payment is provided by the employer.
h. The system ensures transparency and fairness in resolving disputes related to cess obligations.
i. Example: If a construction company believes its cess assessment is incorrect, it can appeal to the appellate
authority and present evidence for review.

16. What are the rules for the registration and benefits of building workers under Chapter VIII?

a. Building workers aged 18 to 60 years, engaged in construction work for at least 90 days in the past year,
can register as beneficiaries.
b. Registration is managed by an officer authorized by the Building Workers' Welfare Board.
c. Workers stop being beneficiaries if they reach 60 years of age or fail to work 90 days in a year.
d. Exceptions are made for absences due to work-related injuries; such days are still counted toward the 90-
day requirement.
e. Workers registered as beneficiaries for three continuous years before turning 60 are eligible for additional
benefits.
f. Time spent as a beneficiary with a different Welfare Board is also considered during registration transfer.
g. The Welfare Fund provides various benefits to registered workers, including social security and welfare
schemes.
h. The process ensures financial and social support for construction workers during their active years and
beyond.
i. Example: A construction worker who worked for 95 days in a year and turned 60 after three years of
continuous registration could still access retirement benefits.

17. How is the Building and Other Construction Workers’ Welfare Fund managed and utilized?

a. The Welfare Fund is created by the Building Workers' Welfare Board to support construction workers'
welfare.
b. It is funded by the cess collected from employers, grants or loans from the Central Government, and other
approved sources.
c. The fund is used to cover administrative expenses, including salaries and allowances of the Welfare Board
members and staff.
d. The board also uses the fund to implement welfare schemes, social security benefits, and other purposes
authorized by the code.
e. Administrative costs, including salaries, cannot exceed 5% of the fund's total annual expenses.
f. The fund helps ensure the efficient operation of welfare boards and timely delivery of benefits.
g. Proper fund management ensures construction workers receive essential support throughout their careers.
h. For example, funds might be used for accident compensation, medical aid, or educational support for
workers' families.

18. What are the social security provisions for unorganized workers, gig workers, and platform workers?

a. The government makes welfare schemes for workers. For example, unorganized workers get health
benefits, old-age support, and insurance, while gig workers like delivery agents may get accident
insurance and child care.
b. These schemes are funded by the Central Government, State Government, or through contributions from
workers, employers, or companies' CSR funds.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

c. The plans include who can benefit, how they will work, who will manage them, and how complaints will
be handled.
d. Workers must register with their Aadhaar and other details to get benefits. For example, they can use
online self-registration or apply at local offices.
e. Help centers and toll-free numbers are set up to guide workers in applying for benefits or understanding
the schemes.
f. Gig and platform workers (like ride-share drivers) get help through special programs, funded partly by
companies like aggregators, who pay a small percentage of their income for workers' welfare.
g. A National Social Security Board looks after the welfare of gig workers and has representatives from the
government, workers, and companies to ensure fairness.
h. Companies like food delivery services contribute up to 5% of their annual payments to workers for
welfare.
i. Flexible funding sources, like CSR funds, help make sure these schemes keep running smoothly for all
types of workers.

19. How are welfare schemes for gig workers and platform workers managed and funded?

a. The Central Government designs schemes to support gig and platform workers, such as accident
insurance, maternity benefits, and old-age security. For instance, drivers for ride-hailing apps may benefit
from accident coverage.
b. These schemes explain how they will work, including funding, administration, and the role of companies
like aggregators (e.g., food delivery platforms).
c. Funding comes from various sources like the Central or State Government, company contributions, CSR
funds, and payments from workers or employers.
d. Aggregators must contribute 1-2% of their annual turnover, capped at 5% of payments made to gig
workers. For example, a food delivery company pays a small percentage of its revenue for workers’
welfare.
e. The National Social Security Board oversees these schemes and includes representatives from
aggregators, workers, experts, and government officials.
f. Workers must register using simple processes like online forms or local offices to access these benefits.
g. A system ensures smooth functioning, such as penalties for companies that delay contributions and clear
guidelines for worker eligibility.
h. If a company has multiple businesses, each is treated separately for contributions, ensuring fairness in
funding.
i. Exemptions for aggregators are possible, but only under specific conditions set by the government. This
ensures a balance between worker welfare and business needs.

20. Explain the provisions related to finance and accounts of Social Security Organisations as outlined in
the Social Security Code, 2020.

a. Social Security Organisations must keep proper accounts of their income and expenses in a format decided
by the government. These accounts are audited yearly by the Comptroller and Auditor-General of India
(CAG). For example, the CAG can check any documents required for the audit.
b. After the audit, the accounts and the audit report are sent to the government, along with the organisation’s
comments.
c. Each organisation must prepare a yearly budget showing expected income and expenses, which must be
approved by the government. This budget should have enough funds for smooth operations.
d. Organisations must submit an annual report about their activities and budget to the government, which is
then presented in Parliament or the State Legislature.
e. The value of assets and liabilities of funds like the Provident Fund or Pension Fund must be regularly
assessed to ensure they are financially secure. For instance, Provident Fund assets are reviewed every
year.
f. Organisations (except the ESI Corporation) can buy, sell, or manage properties and invest surplus funds
but must follow rules set by the government. For example, leftover funds in a Pension Fund can be
invested in government securities.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

g. With government permission, organisations can take loans for their operations or create benefit schemes
for their staff, such as a Provident Fund for employees.
h. If any money, like contributions or penalties, cannot be collected, the organisation can cancel it after
following government rules. For instance, overdue contributions deemed impossible to recover may be
written off.
i. Surplus funds that are not immediately needed can be reinvested to generate more income, ensuring
financial efficiency.
j. These rules are designed to ensure transparency and proper financial management, protecting the workers’
and beneficiaries’ interests.
k. By involving the CAG, setting clear rules for budgets, audits, and reporting, the Code ensures that Social
Security Organisations work effectively and responsibly.

21. Discuss the valuation of dues, penalties, and financial aspects for employers under the Code.

• Employers must pay simple interest on dues until they are fully cleared, as notified by the Central
Government (Section 127).
• Records of wages, hours, deductions, and other employee details help determine compliance and
penalties.
• Interest applies to unpaid dues like contributions to Provident Fund or Pension Schemes.
• Financial penalties and dues are enforced to ensure timely compliance and maintain employee benefits.
• The Code emphasizes accurate record-keeping to avoid disputes and penalties. For example, misreporting
the number of employees could lead to fines or interest payments.
• Refunds of appeals include applicable interest, incentivizing employers to resolve disputes quickly.
• Maintaining proper financial records protects employers from future liabilities.

22. What is the role and power of Inspector-cum-Facilitators in checking if the rules are being followed?

• Inspector-cum-Facilitators are appointed by the Central or State Government to make sure employers
follow the rules (Section 122).
• They inspect workplaces, using a web-based system for reporting and collecting information.
• They may choose which places to inspect either randomly or for special reasons.
• They guide both employers and employees on how to follow the rules correctly.
• They can look at workers, ask for documents, and check records like wages, hours worked, and
attendance.
• If there is a problem, they can seize or copy important documents, like payroll records, if wages are not
being paid.
• They can report to the Government if they find issues that are not covered by the law.
• Their searches must follow specific rules for searches and seizures.
• Employers or workers must provide any documents or information when asked by the Inspector-cum-
Facilitator.

23. What are the employer's duties regarding keeping records, giving notices, and not reducing wages?

• Employers must keep records, either online or on paper, of things like workdays, hours worked, wages
paid, leaves taken, and employee ID numbers (Section 123).
• They must also keep records of accidents, deductions from wages, new employees, and any open job
positions. For example, a factory must keep track of any workplace injuries and compensation paid.
• Employers should post notices at the workplace with important information for employees.
• They must give employees wage slips, either digitally or on paper.
• Employers cannot reduce any worker's wages or benefits because of their own obligations under the Code
(Section 124).
• They must submit returns (reports) to the authorities in the proper format and within the deadlines set by
the Government.
• Specific rules on how to keep records and file returns are determined by Government guidelines or special
schemes like Provident Fund or Pension Schemes.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

24. How does the Code handle disputes and ensure employers pay the dues they owe?

• Special officers (called Authorised Officers) are responsible for settling disputes and figuring out how
much an employer owes (Section 125).
• These officers have the power to call witnesses and ask for documents, just like a court.
• Any disputes or dues must be resolved within five years. For example, if a dispute about unpaid
contributions happened more than five years ago, it can't be handled.
• Inquiries are held daily and must finish within two years, although they can be extended if needed.
• Employers are given a fair chance to present their side during these inquiries.
• If an employer doesn’t attend the inquiry, an order can be made without them. Employers can ask to
cancel such an order if they have a valid reason, within three months.
• If an employer doesn’t agree with the decision, they can appeal to a higher authority within 60 days, after
paying 25% of the owed amount (Section 126).
• The appeal must be decided within six months, and if the employer wins, the Corporation will refund the
money paid, along with interest.

25. How are dues, penalties, and financial aspects handled for employers under the Code?

• Employers must pay interest on any unpaid amounts until they are fully paid, as decided by the Central
Government (Section 127).
• The records of hours worked, wages paid, and other details are used to determine if an employer has paid
everything they owe.
• If an employer doesn’t pay on time, interest will be added to the unpaid amount, like for Provident Fund
or Pension contributions.
• If an employer loses an appeal, they must pay the full amount due along with interest.
• Refunds are given to employers who win their appeals, with interest included.
• Keeping accurate financial records helps employers avoid extra fines or interest in the future.

26. What is the process for recovering damages and dues from employers under the Social Security Code?

• If an employer fails to pay contributions or charges as required under the Social Security Code, the
authorities, such as the Central Provident Fund Commissioner or the Director General, can recover
damages.
• The amount of damages can be up to the total arrears owed by the employer.
• Before levying the damages, the employer must be given a chance to explain or defend their case.
• If the employer is undergoing a resolution under the Insolvency and Bankruptcy Code, the damages may
be reduced or waived if approved by the adjudicating authority.
• The amount due from the employer can be recovered through various methods, including the sale of their
movable or immovable property.
• If necessary, the employer can be arrested and detained in prison for non-payment.
• A receiver can also be appointed to manage the property of the employer to ensure payment of the arrears.
• The authorities can issue a certificate specifying the amount owed, which will be used by the Recovery
Officer to recover the amount using legal methods.
• The authorities have the power to withdraw or correct the certificate if needed and can also grant time to
the employer to pay the dues.
• Recovery can also happen through deductions from amounts owed to the employer by others, such as
clients or business partners.
• In certain cases, if money is in a joint account, the authority may presume the shares of the joint holders
to be equal unless proven otherwise.

27. What are the different modes of recovering arrears and dues under the Social Security Code?

• The recovery of dues from employers can be done by attaching and selling their property, such as goods
or land.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• If the property is not enough to cover the arrears, the Recovery Officer can also target the employer’s
personal property.
• In some cases, the employer can be arrested and detained in prison for non-payment of dues.
• If needed, a receiver can be appointed to manage the employer’s property and ensure the recovery of the
arrears.
• A certificate is issued to the Recovery Officer, detailing the amount owed, and the officer proceeds with
the recovery process.
• If the employer has property in multiple locations, the authorities can transfer the recovery process to
other officers with jurisdiction over those properties.
• The employer cannot dispute the correctness of the amount mentioned in the certificate issued by the
authorities.
• The authorities can also amend or withdraw the certificate if there is a mistake or if the employer is given
more time to pay.
• Recovery can also be done through direct deductions from amounts owed to the employer by other people,
such as clients, employees, or business partners.
• If a person refuses to pay after receiving a notice, the authorities can take further legal action against them,
including treating them as an employer in default.
• The authorities can also apply to the court to seize money belonging to the employer to recover the dues
owed under the Code.

28. What penalties are imposed under the Code for failure to comply with its provisions?

• Section 133 of the Code outlines the penalties for various offences an employer may commit. These
offences include failing to pay employee contributions, making false reports, or not providing benefits
like maternity or gratuity.
• If an employer fails to pay contributions, such as deducting employee contributions from wages but not
remitting them, they may face imprisonment of up to three years or a fine.
• The penalty for failure to pay the employee's contribution can be harsher, with a minimum one-year
imprisonment and a fine of one lakh rupees.
• Other violations, like failing to pay maternity benefits or gratuity, may result in a fine of up to fifty
thousand rupees or imprisonment for up to six months.
• Employers who block an inspector’s work or refuse to provide required documents could be fined fifty
thousand rupees or face six months imprisonment.
• Repeat offenders may face harsher penalties under Section 134, such as up to three years of imprisonment
and a fine of three lakh rupees for the second or subsequent offence.
• If the offence is committed by a company, every person responsible for the company's operations may be
held liable, unless they can prove they were unaware or tried to prevent the offence.
• The court can only take action if there is a complaint from the aggrieved person or an authorized officer,
ensuring the right process is followed.
• In certain cases, such as first-time minor offences, the employer can avoid prosecution by paying a
reduced fine or “compounding” the offence, as allowed under Section 138.

29. How does Section 135 address offences committed by a company or its officers?

• Section 135 holds both companies and their responsible individuals, like directors, accountable for
offences under this Code.
• If a company commits an offence, the directors or officers in charge at that time can also be prosecuted,
unless they can prove they were unaware of the offence or took steps to prevent it.
• The section ensures that individuals who are responsible for the company’s actions cannot avoid
punishment by blaming the company alone.
• Directors or officers who neglected their duties or knowingly allowed the offence to happen will be
punished alongside the company.
• This provision applies to all types of companies, including corporate bodies and firms, making it clear
that the law applies to various forms of business.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• The term "director" in the case of a firm includes its partners, meaning even partners can be held liable
for offences.
• This section encourages company officers to act responsibly and prevent violations, knowing they could
face penalties for non-compliance.
• If a director or officer can prove that the offence was committed without their knowledge or despite their
efforts to prevent it, they will not be held liable.
• The purpose of this section is to ensure accountability within companies, making sure that both the
organization and its leaders follow the law.

30. What does Section 139 require employers to do regarding vacancies in their establishments?

• Section 139 mandates that employers report vacancies in their establishments to career centres before
filling them, as specified by the government.
• Employers must report the vacancies in the prescribed manner, which can be electronic or paper-based,
depending on the regulations.
• This requirement ensures that job openings are documented and made available to career centres for job
seekers.
• Employers are not obligated to hire through the career centre but must still report the vacancy, giving job
seekers access to the information.
• The government can also set the form in which vacancies must be reported and the manner in which
returns must be filed.
• Employers may be required to provide regular updates to the career centres about the status of vacancies
and hiring practices.
• The executive officer has the authority to access employer records related to vacancies and inspect
premises to verify the information.
• Some job categories, like those in agriculture or domestic service, may be exempt from this reporting
requirement.
• This system is designed to promote transparency in hiring, ensuring that job opportunities are accessible
to all qualified individuals through career centres.

Module 3:

1) What are the salient features of the Occupational Safety, Health, and Working Conditions Code, 2020?

• The Code broadens the definition of a factory to include premises with 20 workers for processes with
power and 40 for those without.
• It limits the maximum daily working hours for workers to 8 hours.
• An inter-state migrant worker is defined as someone earning up to ₹18,000/month, working in a state
other than their home state.
• Women can now work in all establishments, including night shifts, with their consent and safety ensured.
• The Code removes manpower limits for hazardous working conditions, making safety mandatory for
contractors hiring 50 or more workers.
• Employees cannot be charged for safety and health measures, including medical examinations and disease
detection investigations.
• It mandates the maintenance of safe and healthy working conditions for all employees at no cost to them.
• A National Occupational Safety and Health Advisory Board is established to advise the government on
safety measures.
• The Code emphasizes workers' safety and health without imposing financial burdens on them.

2) Important definitions of the Occupational Safety, Health, and Working Conditions Code, 2020
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

Contract Labour: Employee:

• Workers hired through a contractor for tasks in an • Anyone employed to perform skilled, unskilled,
establishment. technical, or managerial work.
• Contractor can hire workers with or without the • Employment can be direct or through an agency.
employer’s knowledge. • Paid wages for the work they do.
• Excludes workers regularly employed by • Includes manual labourers and supervisors but
contractors under fixed agreements. excludes contractors.
• Regular employees of contractors receive benefits • Example: A factory worker assembling goods.
like pay increments.
• Example: A cleaner hired by a contractor to work
in an office.

Employer: Establishment:

• The person or authority who employs workers • Any place employing 10 or more workers in
directly or through others. business, industry, or trade.
• Responsible for managing and controlling the • Includes transport companies, construction sites,
establishment. plantations, and factories.
• Includes contractors and the ultimate authority of • Specific types include factories, mines, and docks.
an organization. • Example: A factory with 15 employees.
• Example: A company owner or a manager hiring
workers.

Hazardous Process: Principal Employer:

• Activities involving toxic or harmful substances. • Person responsible for overseeing contract labour
• May impair workers' health or harm the in establishments.
environment. • Can be the factory owner, occupier, or a manager
• Requires safety measures to prevent accidents or in charge.
illness. • Ensures compliance with labour laws and
• Example: Handling chemicals in a fertilizer workplace safety.
factory. • Example: A factory manager supervising contract
workers.

Wages: Manufacturing Process:

• Total pay, including basic salary, allowances, and • Activities like making, altering, repairing, or
retaining allowance. cleaning goods.
• Excludes benefits like bonuses, overtime, and • Includes generating power, printing, or cold
employer contributions to funds. storage.
• Used to calculate employment benefits and • Covers production and maintenance work.
deductions. • Example: Packaging food products in a factory.
• Example: A worker earning ₹20,000 with
additional benefits.

Industry: Inter-State Migrant Worker:

• Organized activity for producing goods or services • Workers moving from one state to another for a
to meet human needs. job.
• Excludes charitable, religious, and sovereign • Hired directly by an employer or through a
government functions. contractor.
• Includes profit-oriented and non-profit businesses. • Must earn ₹18,000 or less per month.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• Example: A textile factory producing clothes for • Example: A labourer from Bihar working in a
sale. construction site in Delhi.

Mine: Newspaper Establishment:

• Any place where minerals are extracted from the • Businesses producing or publishing newspapers or
ground. running news agencies.
• Includes shafts, oil wells, workshops, and • Includes printing presses and other associated
transport systems for mining. operations.
• Covers both underground and open-cast • Two or more establishments under common
operations. control are treated as one.
• Example: A coal mine with surface and • Example: A company publishing newspapers in
underground activities. multiple cities.

Notification: Occupier:

• Formal announcements published in official • The person with overall control of a factory's
government gazettes. operations.
• Acts as a public notice for new rules or changes. • Could be a director, partner, or government-
• Used by central or state governments. appointed manager.
• Example: Notification about minimum wage • Ensures compliance with factory laws.
changes. • Example: A company’s managing director
overseeing factory production.

Owner (in Mining): Plantation:

• Immediate proprietor or lessee of a mine. • Land of 5 hectares or more for growing tea, coffee,
• Responsible for mining operations and safety. or rubber.
• Excludes royalty or rent receivers. • Includes facilities like offices, schools, and
• Example: A company leasing a mine for mineral hospitals for workers.
extraction. • Can include smaller land if under the same
management.
• Example: A tea estate employing workers for
harvesting.

Worker: Working Journalist:

• Any person hired to do manual, technical, or • A person employed as a journalist in print, radio,
clerical work for wages. or digital media.
• Excludes military, police, managerial employees, • Includes reporters, editors, and news
or supervisors earning over ₹18,000. photographers.
• Example: A machine operator in a garment • Excludes managerial or supervisory staff.
factory. • Example: A reporter covering news for a digital
news platform.

Below Ground Worker:

• A worker engaged in underground mining, like

shafts or tunnels.
• Involves specialized safety protocols and training.
• Example: A miner working in a coal shaft 500
meters below the surface.

Above Ground Worker:

LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• A person working on surface mining or related

activities.
• Includes open-cast mining and surface-level
operations.
• Example: A technician repairing mining
equipment in an open pit.

3) Explain the process, obligations, and provisions related to the registration of establishments under the
Occupational Safety, Health, and Working Conditions Code, 2020.

• Employers must register their establishments within 60 days of the Code applying to them.
• Registration applications must be submitted online to the designated officer and include details like inter-
state migrant workers, if any.
• Once the application is received, the officer must issue an electronic registration certificate within a specific
time. If not, it will be automatically approved.
• Employers must notify the officer within 30 days of any changes in ownership, management, or other
registered details, and the registration will be updated online.
• When an establishment closes, employers must inform the officer, confirm that workers’ dues are cleared,
and the registration will be canceled within 60 days, or it will be canceled automatically.
• If an employer obtains registration through fraud or hiding facts, penalties may apply, and the registration
can be revoked after giving the employer a chance to explain.
• Employers cannot hire workers without proper registration or if the registration has been canceled without
appealing.
• Establishments already registered under other laws are considered registered under this Code if they share
their registration details with the officer.
• Employers can appeal registration-related decisions within 30 days, with extensions for valid reasons.
• Employers must inform authorities online before starting or stopping operations. For example, a builder must
notify the government when beginning and completing a project.

4) What are the key duties of an employer according to the Code?

• Employers must ensure the workplace is safe and free from hazards that could harm employees.
• They must comply with safety standards and provide necessary health and safety training for employees.
• Employers should offer free health check-ups for certain workers, based on age or role, as required by the
government.
• They are responsible for maintaining a work environment that is safe and doesn’t pose health risks to
employees.
• Employers must issue appointment letters to all employees with details about their roles and
responsibilities within three months of the Code’s start.
• Employers should not charge employees for anything related to safety or health at work, including medical
exams.
• They must manage any dangerous situations, like hazardous waste disposal, and keep the workplace clean.
• For example, if a worker is exposed to harmful chemicals, the employer should ensure proper protective
measures are in place and provide safety equipment.

5)What are the rights and duties of employees under the Occupational Safety, Health, and Working
Conditions Code?

Rights of Employees: Duties of Employees:

1. Employees have the right to a safe and healthy 1. Employees must take reasonable care for their
working environment. own health and safety and that of others at work.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

2. They can access information related to their health 2. They are responsible for following safety
and safety at work. protocols and procedures at the workplace.
3. Employees have the right to raise concerns about 3. Employees must report any unsafe conditions or
any unsafe work conditions directly with their health risks to their employer or safety officer as
employer or through the safety committee. soon as possible.
4. They can report any imminent danger or risk to 4. They should not misuse or damage safety
their health to the employer or relevant authorities. equipment, appliances, or any facilities provided
5. Employees have the right to request medical to ensure their safety.
examinations or tests as required under the health 5. Employees must not engage in any actions that
and safety regulations. could harm themselves or others in the workplace.
6. They have the right to be provided with proper 6. They must cooperate with the employer’s safety
protective equipment and training to ensure their programs and health examinations, as required by
safety. the law.
7. If employees feel their rights are being ignored, 7. Employees should not intentionally ignore or
they can approach the Inspector-cum-Facilitator bypass safety measures in the workplace.
for help.

6)What are the duties and responsibilities of the owner, agent, and manager in relation to a mine?

• Sec. 7 of the Occupational Safety, Health, and Working Conditions Code talks about the responsibilities
of the owner, agent, and manager in relation to a mine.
• The owner and agent are responsible for making sure that the mine follows all safety and health
regulations.
• They must provide the necessary financial and other resources to comply with the required safety
standards.
• If there is any violation of safety rules, the owner and agent, along with the mine manager, are held
accountable.
• The mine manager must ensure that safety measures are properly followed and that all safety regulations
are met.
• Supervisors in the mine must monitor safety practices and report any violations to the relevant authorities.
• The owner and agent cannot escape responsibility by saying that they appointed a manager to handle
safety, unless they can prove they took all reasonable precautions.
• Even if the mine manager is responsible for daily operations, the owner and agent must ensure overall
safety and compliance.
• For example, if a safety breach leads to an accident, the mine’s owner or agent would be responsible for
addressing the issue, even if the manager was directly responsible for operations.

7)What are the duties of designers, manufacturers, importers, or suppliers?

• Sec. 8 of the Occupational Safety, Health, and Working Conditions Code talks about the duties of
designers, manufacturers, importers, and suppliers.
• Designers, manufacturers, importers, and suppliers must ensure that their products are safe to use and do
not pose any health risks to workers when used correctly.
• They are responsible for conducting necessary tests to make sure that the products meet safety standards.
• They must provide clear instructions about how to use their products safely, including any precautions to
take during use.
• Imported products should meet or exceed the safety standards of locally made products to ensure no harm
to workers.
• They need to research potential risks associated with their products and make efforts to minimize any
safety hazards.
• If a product is used in a factory, they must ensure it does not pose a risk to the workers operating it.
• For example, a manufacturer who makes machinery must make sure that it is safe to operate and will not
cause injuries to the workers who use it.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

8) What are the duties of architects, project engineers, and designers?

• Sec. 9 of the Occupational Safety, Health, and Working Conditions Code discusses the duties of architects,
project engineers, and designers.
• Architects and project engineers must ensure that safety is prioritized in the planning stage of any
construction project.
• They must avoid including any unsafe materials or structures that could put workers at risk during
construction.
• They need to plan for the safe maintenance and repair of the building or structure once construction is
complete.
• They are responsible for making sure that the design does not involve any dangerous processes that could
harm workers on the construction site.
• Architects and engineers should work together with other professionals to ensure the safety and health
regulations are met throughout the design and construction process.
• They must ensure that the building or structure is safe for workers not only during construction but also
when it is in use.
• For example, a project engineer overseeing a building construction must ensure that the materials used
are strong enough and will not pose a risk to the workers during the project’s lifespan.

9)What type of notice should an employer send if an accident occurs in the workplace?

• As per Section 10(1), an employer must send a notice if an accident happens in the workplace causing
death or injury that prevents the worker from working for 48 hours or more.
• The notice must be sent to the appropriate authority in a prescribed format.
• It should include detailed information about the accident, including the cause and the extent of injury.
• The notice must be submitted within a specified time period after the accident.
• If the accident is serious, the employer should send the notice as soon as possible to avoid penalties.
• The employer must ensure the correct authority receives the notice, such as the Inspector or Chief
Inspector in the case of a mine.
• The notice should be sent electronically as per the rules of the appropriate government.
• For example, if a worker is seriously injured due to faulty machinery, the employer must notify the
relevant authorities immediately.

10)What notice must an employer send in case of a dangerous occurrence in the workplace?

• Section 11 states that an employer must send a notice if there is a dangerous occurrence at the workplace.
• Dangerous occurrences are events that may not cause immediate harm but pose a risk to health or safety.
• The notice should include all necessary details, such as what happened and how it may affect the workers.
• The employer must send the notice within the prescribed time frame.
• The notice must be in the format set by the government.
• The employer is responsible for ensuring a safe environment and preventing such occurrences.
• If, for example, gas leakage occurs in a factory, the employer must immediately send a notice to the
authorities.
• Ignoring the requirement to send a notice for dangerous occurrences can lead to serious consequences for
the employer.

11)What notice should an employer send if a worker contracts a disease in the workplace?

• As per Section 12, an employer must send a notice if a worker contracts a disease listed in the Third
Schedule.
• The notice must contain details of the disease, how the worker got it, and the worker’s condition.
• The notice should be submitted in the prescribed manner and within a specific time limit.
• It must be sent to the relevant authorities to track and manage such diseases.
• For example, if a worker contracts a lung disease due to exposure to harmful dust in a mine, the employer
must send a notice.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• Employers must also cooperate with medical professionals who are required to report the disease.
• The notice helps authorities take action and prevent the spread of the disease.
• Failure to send the notice can result in legal consequences for the employer.

12)What notice should an employer send if a worker reports an unsafe or unhealthy situation at the
workplace?

• According to Section 14, if a worker notices an unsafe or unhealthy situation, they should report it to the
employer.
• The employer must send a notice if the situation poses a significant risk to health or safety.
• The employer must act quickly to address the concern and send a report about the action taken.
• The notice should be sent to the authorities if the issue is serious and not resolved internally.
• For example, if a worker reports that a machine is malfunctioning and could cause injury, the employer
must investigate the situation.
• If the employer disagrees with the worker’s concern, the matter must be referred to the Inspector-cum-
Facilitator.
• Sending the notice ensures that proper action is taken to prevent harm.
• Not addressing such situations can lead to safety violations and penalties.

13)What notice should an employer send if a worker fears imminent danger to their health or safety in the
workplace?

• As per Section 14(2), if a worker believes there is imminent danger to their health or safety, they must
inform the employer.
• The employer must take immediate action to address the concern and send a notice about the steps taken.
• If the employer disagrees with the worker’s assessment, they must refer the matter to the Inspector-cum-
Facilitator.
• The notice should include details of the situation and the employer’s response to it.
• The employer must send the notice to the relevant authorities to ensure that proper measures are taken.
• For example, if a worker believes a scaffold is unstable and could collapse, the employer must investigate
and ensure safety measures are in place.
• If the employer fails to act or does not agree with the worker’s concern, the matter should be raised with
the authorities.
• Sending such a notice helps protect the health and safety of all workers in the workplace.

14)What is the role and composition of the National Occupational Safety and Health Advisory Board as
per Chapter IV?

• The National Occupational Safety and Health Advisory Board is formed by the Central Government under
Section 16.
• It advises the government on standards, rules, and regulations related to occupational safety and health.
• The board helps in the implementation of these standards and policies.
• It also addresses specific issues related to safety and health as referred by the government.
• The board consists of various members, including government officials and representatives from
employers and employees.
• The Secretary of the Ministry of Labour and Employment is the ex officio Chairperson.
• It also includes the Director General of Mines Safety, the Chief Controller of Explosives, and others.
• Its members serve for three years and are responsible for making recommendations related to workplace
safety.
• For example, if a new law about workplace safety is being created, the board helps advise the government
on how to implement it.

15) What is the responsibility of the State Government regarding Occupational Safety and Health Advisory
Boards?
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• The State Government must form a State Occupational Safety and Health Advisory Board under Section
17.
• The board advises the State Government on matters related to safety and health in workplaces.
• The State Government can form technical or advisory committees to assist in its functions.
• The board helps in making sure that the safety standards are being followed in the state.
• The constitution of the board and its procedures are decided by the State Government.
• These boards help solve state-specific issues regarding workplace safety.
• The State Advisory Board also plays a role in monitoring conditions at factories and mines.
• For example, a State Advisory Board may recommend improvements in the safety measures for
construction workers in a state.

16)How does the Central Government set Occupational Safety and Health standards?

• The Central Government sets occupational safety and health standards under Section 18.
• These standards are declared through a notification and apply to workplaces like factories, mines, and
construction sites.
• The standards focus on physical, chemical, and biological hazards in the workplace.
• They aim to ensure that employees do not suffer from health impairments even with exposure to such
hazards.
• The standards also define the norms for monitoring hazards and conducting medical tests for workers.
• Employers are responsible for ensuring the health and safety of their employees by meeting these
standards.
• The Central Government can amend these standards based on recommendations from the National Board.
• For example, if there is a risk of lung disease from dust exposure, the standards will include measures to
reduce exposure and protect workers.

17)What is the role of institutions in occupational safety and health research?

• Certain institutions are designated by the Central or State Government to conduct research in occupational
safety and health under Section 19.
• These institutions experiment and demonstrate ways to improve workplace safety.
• They submit their findings and recommendations to the government for further action.
• The State Government must consult the National Board before notifying these research activities.
• This research helps improve safety measures and reduce workplace risks.
• For example, a research institute might study the effects of chemical exposure on workers and suggest
new protective measures.
• The government uses this research to update safety standards.
• Institutions play an important role in preventing accidents by identifying new hazards and solutions.

18)How do surveys of workplaces to check safety and health conditions take place?

• Workplaces can be surveyed by authorized officers like the Chief Inspector-cum-Facilitator under Section
20.
• These surveys are conducted during normal working hours or at other necessary times.
• The officer gives prior notice in writing to the employer before conducting the survey.
• The survey includes examining plant machinery, collecting samples, and checking for safety hazards.
• Workers must cooperate by undergoing medical exams if required.
• The employer must provide full access to the officer for the survey.
• If a worker spends time for medical exams related to the survey, it counts as working hours.
• For example, if a mine is suspected to have unsafe air conditions, a survey may be conducted to test air
quality and worker safety.
• The findings of the survey are reported to the government for further action.

19) What is the requirement for collecting and maintaining safety statistics under the Code?
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• Both the Central and State Governments are responsible for collecting occupational safety and health
statistics under Section 21.
• They must compile and analyze data related to workplace accidents and health conditions.
• This helps track patterns and make informed decisions to improve safety.
• The government also maintains a database for inter-State migrant workers to ensure their safety.
• The workers can register on this portal, and it is used to track their work conditions across states.
• The database helps in understanding the safety risks faced by workers from different states.
• For example, if a migrant worker moves from one state to another for work, the portal helps ensure that
their health and safety needs are met.
• This system improves the safety measures for workers who often move across different places for work.

20)What is the role of Safety Committees in workplaces?

• Employers in certain establishments must form Safety Committees under Section 22.
• These committees must include representatives from both employers and workers.
• The number of workers’ representatives should not be less than the employer’s representatives.
• Safety Committees help in discussing and solving safety issues at the workplace.
• They must meet regularly to address potential hazards and improve working conditions.
• In larger workplaces like factories, a safety officer must also be appointed.
• The safety officer ensures that safety standards are met and helps in identifying any risks.
• For example, in a factory with more than 500 workers, the safety committee might discuss fire safety
measures and emergency evacuation plans.

21)What are the health, safety, and working condition requirements that employers must follow?

• Employers must maintain good health, safety, and working conditions for employees under Section 23.
• The government sets rules for cleanliness, ventilation, lighting, and safety measures at workplaces.
• Employers must provide safe drinking water, proper sanitation, and waste management.
• Workplaces must be free from harmful gases, dust, and other impurities.
• Employers must also ensure there is enough space to prevent overcrowding.
• Regular medical examinations and other tests should be available for workers exposed to hazards.
• For example, a factory must provide clean air, proper lighting, and safe machinery to protect workers.
• These measures help in preventing health issues and accidents in the workplace.

22)What are the welfare provisions an employer must provide to employees?

• Employers must provide separate washing facilities for male, female, and transgender workers.
• There should be bathing places and lockers for each gender and transgender employees.
• Workers should have a place to store clothes not worn during work hours and dry wet clothes.
• If workers have to stand for long periods, sitting arrangements should be provided.
• If there are 100 or more workers, a canteen must be available in the workplace.
• In mines, workers must undergo medical exams before starting work and at regular intervals.
• Employers must provide easily accessible first-aid boxes for workers during working hours.
• Employers should ensure the health, safety, and working conditions of their employees are maintained.
• For example, in a large factory with 100 workers, the employer must set up a canteen and provide first-
aid kits for emergencies.

23)How are working hours, overtime, and rest days regulated for employees?

1. Workers cannot work more than 8 hours a day or exceed the limits set for their specific industry. For
example, in a mine, workers cannot work beyond a certain number of hours per day as set by the
government.
2. If an employee works more than the allowed hours in a day or week, they should be paid double wages
for the extra time worked. This is called overtime.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

3. Workers should not be asked to work more than 6 days a week, but some industries, like motor transport,
may require workers to work on weekly holidays if necessary, as long as they get a day off after 10 days
of continuous work.
4. If a worker works overtime, it should be with their consent, and the total overtime hours are limited. For
example, a worker may agree to work 2 extra hours one day but should not be forced to do overtime
repeatedly.
5. Workers on night shifts should have their holiday counted from when their shift ends, and their next day
begins after the shift ends. For instance, if a worker finishes at 1 am, their next day for calculating the
holiday starts at 1 am.
6. Shifts should not overlap, meaning that more than one group of workers shouldn't work on the same task
at the same time unless allowed under special conditions.
7. Workers should not work in a mine or factory for more than 12 hours a day, even if they worked in another
establishment in the last 12 hours.
8. Employers must post a notice showing the working hours for all employees, so everyone knows when
they are expected to work.
9. If a worker is not given their weekly holiday, they must be given a compensatory holiday within the next
month or two.

24)What are the provisions regarding annual leave for employees?

• Every worker is entitled to annual leave with wages if they have worked for at least 180 days in a calendar
year.
• For every 20 days of work, the worker gets 1 day of leave. For adolescent workers, the leave is 1 day for
every 15 days worked.
• If a worker is employed below ground in a mine, they get 1 day of leave for every 15 days worked.
• If a worker is absent due to layoff, maternity leave, or annual leave, these days are counted toward the
180-day requirement.
• Workers who start work after January 1st will earn leave based on the number of days they work in the
remainder of the year.
• If a worker is fired, quits, retires, or dies during the year, they or their heirs are entitled to wages for the
unused leave days.
• If workers don’t use all their leave in one year, the remaining leave can be carried forward to the next
year, but no more than 30 days.
• Workers can also ask for leave encashment, where they get paid for unused leave days at the end of the
year.
• For example, a worker who worked for 200 days in a year would be entitled to 10 days of leave, and if
they didn’t use them, they could carry forward up to 30 days to the next year.

25)What are the responsibilities of an employer in maintaining registers, records, and filing returns?

• Employers must keep registers with details of workers, including the work they do.
• They should record the number of hours workers work each day.
• Employers need to note the rest days given to workers within every week.
• They should maintain a record of wages paid to workers and the receipts for those payments.
• Records should also include details of leave, overtime, attendance, and any accidents.
• Employers must maintain these records in the way prescribed by the government.
• Notices showing workplace rules and regulations must be displayed clearly for workers to see.
• Wage slips should be issued to workers, either electronically or in paper form.
• For example, a company must keep track of when a worker takes leave, how many hours they work, and
the wages paid to them, and must file these records properly with the authorities.

26)What powers and duties are given to the Inspector-cum-Facilitators and how do they ensure compliance
with workplace safety and welfare regulations?
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• Inspector-cum-Facilitators have the power to enter any workplace for inspections, ensuring that
workplaces are compliant with safety regulations.
• They can examine the premises, machinery, and work conditions to check if safety standards are being
met.
• They have the authority to inquire into accidents or dangerous occurrences, whether or not they cause
injury, by taking statements from workers or witnesses.
• They can require the production of registers, documents, or any other materials related to work activities
to verify compliance.
• If necessary, they can seize documents or take copies for further investigation if they suspect an offense
under the workplace laws.
• They can issue show-cause notices to employers who are found violating safety, health, or welfare
regulations under the law.
• The Inspector-cum-Facilitator can also prosecute or defend legal cases in court related to safety violations
or accidents at the workplace.
• For example, if an inspector visits a construction site and finds unsafe working conditions, they can order
the employer to fix the issues or face penalties.
• By conducting regular inspections and taking appropriate legal actions, Inspector-cum-Facilitators ensure
that businesses maintain a safe and compliant work environment for their employees.

27)What powers and duties does the District Magistrate have regarding inspections in mines?

• The District Magistrate has duties related to mines within their jurisdiction.
• They can inspect workplaces and ensure safety measures are followed.
• They are responsible for investigating any accidents or unsafe conditions in mines.
• The District Magistrate ensures that employers comply with safety regulations and maintain proper
records.
• They help ensure that workers have proper protective gear and are working in safe conditions.
• For example, the District Magistrate might inspect a mine to check if workers are wearing helmets and
safety boots as required by law.
• They also ensure that safety procedures are in place to prevent accidents in the mining areas.

28)What is the process of third-party audit and certification for certain establishments

• The government can create a scheme to appoint experts for third-party audits in certain establishments
like startups.
• These experts are selected randomly through a web-based system to conduct audits and certify compliance
with safety and labour laws.
• After completing the audit, the experts submit a report to both the employer and the Inspector-cum-
Facilitator.
• The audit helps ensure that businesses are following all required laws for employee safety and welfare.
• These experts are assigned duties and responsibilities under the scheme and must submit their findings.
• For example, an expert may be sent to a new tech startup to verify that the company provides a safe work
environment and adheres to all relevant labour laws.
• This process ensures that startups and other businesses maintain high standards of workplace safety and
comply with legal requirements.

29)What are the special powers of an Inspector-cum-Facilitator in respect of factory, mines, dock work,
and building or other construction work?

• The Inspector-cum-Facilitator has the authority to stop work immediately if there is an imminent risk to
the safety of workers, such as faulty equipment or unsafe conditions.
• In a factory, if machinery is malfunctioning and poses a danger, the Inspector can halt production to
prevent accidents.
• The Inspector can order the correction of unsafe practices or conditions, such as fixing broken scaffolding
on a construction site or improving ventilation in mines.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• The Inspector can also stop dangerous activities like using explosives in construction sites until safety
protocols are followed.
• In the case of a hazardous situation in a dock or mine, the Inspector has the power to stop operations to
protect workers from accidents or fatalities.
• The Inspector has a temporary power to stop work for up to three days and may extend the halt if the
safety hazard is not addressed.
• The Inspector's authority ensures that employers take immediate action to rectify safety risks to avoid
worker injuries.
• Failure to comply with safety orders can lead to restricted work operations until safety standards are met.

30)What is the importance of maintaining secrecy of information by the Inspector-cum-Facilitator?

• The Inspector-cum-Facilitator is obligated to maintain confidentiality regarding the identity of workers

who report safety violations.
• Workers can report unsafe conditions without fear of retaliation, as their identities are protected
throughout the investigation process.
• For example, if a worker reports a chemical spill in a factory, the Inspector ensures that the worker's
identity is not revealed to the employer.
• This confidentiality helps foster trust between workers and authorities, encouraging more workers to come
forward with safety concerns.
• The Inspector only shares the necessary details with other authorities to address the safety issue, ensuring
that workers’ identities remain confidential.
• Information collected by the Inspector, such as complaints or inspection records, is kept private and used
solely for safety purposes.
• Disclosing the source of complaints without consent can undermine workers' trust and discourage future
reports.
• Secrecy ensures that the investigative process is fair and free from external pressure or bias.

31)What facilities must be provided by the employer to ensure the welfare of workers?

• Employers are required to provide basic facilities such as clean drinking water, adequate sanitation, and
well-maintained restrooms for workers.
• In hazardous workplaces, like factories and construction sites, workers should have access to safe rest
areas and emergency exits in case of accidents.
• Personal protective equipment (PPE) like helmets, gloves, and boots must be provided to workers to
minimize the risk of injury.
• For example, in a construction site, workers must be provided with helmets, safety belts, and reflective
vests to protect them from falling or being struck by objects.
• Adequate lighting and ventilation are essential to reduce health risks, particularly in confined spaces such
as mines and factories.
• Employers must ensure that emergency equipment such as first-aid kits, fire extinguishers, and first-aid
trained staff are available at the workplace.
• Safe transportation must be arranged for workers, especially those in remote or hazardous work sites, to
avoid risks during travel.
• All facilities must be regularly maintained to meet health and safety standards, ensuring the well-being of
workers.

32)What role does the medical officer play in the workplace?

• The employer must appoint a qualified medical officer who is responsible for the health and safety of
workers, providing medical care in case of injury or illness.
• For example, in a mining site, the medical officer is responsible for treating injuries like fractures, burns,
or respiratory issues caused by dust inhalation.
• The medical officer also monitors the health of workers exposed to hazardous substances and provides
necessary treatments or referrals to specialists.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• Regular health checks by the medical officer ensure that any pre-existing medical conditions are managed
and do not worsen due to work conditions.
• The medical officer ensures that first-aid training is provided to workers and that first-aid kits are readily
available on-site.
• In cases of serious illness or injury, the medical officer arranges for workers to be transported to hospitals
for specialized care.
• The medical officer maintains records of workers' health, tracking any work-related diseases or injuries
to improve future safety measures.
• The officer also plays a role in educating workers about health risks and preventative measures to ensure
their well-being at the workplace.

33)What are the regulations regarding the employment of women in dangerous operations?

• Women are not permitted to engage in certain hazardous operations unless their safety is assured through
proper precautions and training.
• For example, women may be restricted from working with heavy machinery or in high-risk environments
such as mines or chemical factories.
• Employers must ensure that women workers have access to separate restroom facilities and changing
rooms for privacy and comfort.
• In some industries, women may be required to undergo additional training to safely perform tasks that
involve risk or hazardous materials.
• Female workers in construction or mining environments must be provided with personal protective
equipment (PPE) designed for their size and needs.
• Women are not allowed to work night shifts in certain high-risk sectors unless adequate safety measures
are in place, such as transport and security.
• Employers must ensure that women are not subject to any form of harassment or unsafe conditions while
performing dangerous work.
• Employers must continuously assess the risks in dangerous operations and ensure that women are not
assigned tasks that could endanger their health and safety.

34)How can employers ensure the adequate safety of women employed in dangerous operations?

• Employers must provide specific safety measures tailored to the needs of female workers in dangerous
operations, such as protective clothing that fits properly.
• For instance, if a woman is working with hazardous chemicals, she must be provided with a proper
respirator and full-body protective gear to minimize exposure.
• Employers should conduct regular safety drills and training to ensure that women workers are prepared
to handle emergencies like fires or equipment failures.
• For example, if a woman is working in a mine, she should receive training on how to use safety equipment
and how to react in case of a collapse.
• The work environment should be evaluated regularly for potential risks, and necessary adjustments must
be made to safeguard women workers.
• Women workers should not be assigned tasks that exceed their physical capabilities, ensuring that the
work is within their capacity and does not pose unnecessary strain.
• Employers must also monitor the physical health of female employees, especially in physically
demanding jobs, to avoid long-term health issues.
• Proper ergonomic adjustments should be made for women working in dangerous operations, ensuring that
work conditions are not causing undue strain on their bodies.

Module 4:

1. What are the requirements for contractors to employ contract labour?

LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• Contractors must have a license issued by the appropriate authority to employ contract labour.
• The license specifies how many workers they can employ and the security deposit required.
• Contractors can only work in the establishment for which the license is granted.
• If the contractor doesn’t meet the necessary qualifications, a "work-specific" license can be issued for a
specific project.
• The license is valid for 5 years, and contractors must apply for an amendment if they need to increase the
number of workers.
• The contractor must not charge any fee or commission from the contract labourers.
• Contractors must inform the authority when they receive a work order for contract labour.
• The authority can suspend or cancel the contractor’s license if they don’t follow the rules.
• Contractors must comply with all conditions, such as wage payments and welfare facilities.

2. What happens if a contractor doesn’t get a license for employing contract labour?

• If a contractor does not have a valid license, it is considered a violation of the law.
• The principal employer is also responsible if the contractor is unlicensed.
• The contractor’s license can be suspended or revoked if the authorities find any false information or
violations.
• The contractor must follow the rules for wage payments and provide experience certificates to the
workers.
• If a contractor doesn’t pay workers on time, the principal employer must cover the wages.
• Contractors must pay wages through electronic transfer or another prescribed method.
• If a contractor fails to pay wages, the principal employer is responsible for making the payment.
• The principal employer can recover the amount paid from the contractor.
• The contractor may be required to pay from their security deposit if wages are not paid.

3. What is the role of the principal employer in contract labour employment?

• The principal employer is responsible for providing welfare facilities to contract labourers, such as
drinking water, restrooms, and medical care.
• If the contractor fails to get a license, the principal employer is considered to have violated the law.
• The principal employer must ensure that wages are paid on time, especially if the contractor does not.
• The principal employer can recover unpaid wages from the contractor.
• The principal employer is also responsible for ensuring the proper conditions for contract labour as
specified by the law.
• They must cooperate with the contractor to meet the regulatory requirements.
• The principal employer must notify the authority if there are any issues with the contractor.
• If a contractor fails to follow the rules, the principal employer can face penalties.
• The principal employer should ensure that all necessary documents are in place, such as work orders and
licenses.

4. What is the procedure for obtaining and renewing a license for contract labour?

• Contractors must apply for a license electronically with details about the number of workers and the work
they will perform.
• The application must include information on the employment of inter-state migrant workers, if applicable.
• The license is valid for 5 years but can be amended if the contractor needs to increase the number of
workers.
• Contractors must follow the prescribed procedure for applying and renewing the license.
• If the license is revoked or suspended, the contractor can appeal to the prescribed appellate authority.
• The contractor must meet certain qualifications set by the government to be eligible for a license.
• If the contractor does not follow the rules, the authority can take action against them.
• Contractors must ensure that the license specifies conditions like wage payments, working hours, and
welfare provisions.
• They must also submit reports or intimation of work orders to the authorities.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

5. What is the responsibility of a contractor regarding the issuance of experience certificates to contract
labourers?

• Contractors are required to issue an experience certificate to contract labourers upon request.
• The certificate must detail the work performed by the labourer during their employment.
• The experience certificate should be provided in the format prescribed by the government.
• This certificate helps workers when seeking future employment by providing proof of their previous work
experience.
• Contractors must issue the certificate without charging any fee from the workers.
• If a worker requests the certificate, it must be given within a reasonable time frame.
• The certificate includes information like job role, duration of employment, and other relevant details.
• The contractor is obligated to ensure that the information on the certificate is accurate.
• This helps workers assert their rights and supports them in securing new jobs.

6. Who is responsible for ensuring timely payment of wages to contract labourers?

• The contractor is primarily responsible for paying the wages to the contract labourers.
• Wages must be paid before the expiry of the prescribed period, as specified by the government.
• Contractors must make wage payments electronically, like through bank transfer, unless it is impractical,
in which case other methods may be allowed.
• If the contractor fails to pay wages on time, the principal employer becomes responsible for paying the
wages in full.
• The principal employer can recover the amount paid to workers from the contractor.
• Contractors must keep records of wage payments and share the details with the principal employer.
• If the contractor doesn’t pay, the principal employer has to ensure that the labourers receive their due
wages.
• In case of non-payment, the contractor could face penalties or action from the authorities.
• The government can use the contractor’s security deposit to pay the wages if necessary.

7. What are the duties and rights of employers regarding inter-State migrant workers?

• Employers must ensure suitable working conditions for inter-State migrant workers.
• They must report accidents, including fatal or serious injuries, to the authorities of both the States
involved.
• Employers must provide all the benefits available to local workers, such as insurance, provident funds,
and medical check-ups.
• Employers must provide a lump sum amount for the worker's travel expenses between the place of work
and their native place.
• The appropriate government will make provisions for the migrant workers to access public distribution
systems in either their native or destination State.
• Migrant workers may also benefit from portability regarding construction-related cess funds.
• A toll-free helpline can be provided for migrant workers' support.
• Employers cannot withhold debts from inter-State migrant workers after their employment ends.
• The government may conduct studies on inter-State migrant workers to understand their working
conditions and needs.

8. What are the requirements for employing audio-visual workers?

• An agreement must be signed between the worker and the producer, or the contractor if the worker is
employed through one.
• The agreement should include details about the worker’s employment, including wages, working hours,
and safety conditions.
• The agreement should be registered with the competent authority.
• The producer must ensure that if a contractor fails to meet their obligations, they are held liable.
• A copy of the agreement should be forwarded to the provident fund authority if applicable.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• The agreement should also specify dispute resolution methods and the process for addressing any
unresolved disputes.
• All payments to the worker must be made electronically.
• The producer is responsible for the worker’s welfare facilities and working conditions.
• If disputes remain unresolved through internal mechanisms, the worker can take the matter to the
Industrial Tribunal.

9. What are the provisions regarding management and employment in mines?

• Every mine must have a qualified manager responsible for overall management and safety.
• The owner or agent of the mine must appoint a manager with prescribed qualifications.
• In emergencies, the manager can allow work that would normally violate standard safety rules.
• Miners below 18 years of age are not allowed to work, but apprentices over 16 may work under
supervision.
• The Central Government can make rules to exempt certain mines from some provisions.
• The government can declare whether excavation activities are for prospecting or commercial purposes,
affecting which rules apply.
• The manager can permit employees to work in unsafe conditions during emergencies, but such actions
must be recorded.
• The government may prescribe medical examinations to ensure workers’ fitness.
• Exemptions may apply to certain mines, but the employer must inform authorities of non-compliance.

10. What are the rules for employing beedi and cigar workers?

• Employers must have a valid licence to use premises for beedi or cigar manufacturing.
• The employer must apply for a licence to use premises and specify the maximum number of workers.
• The application must include a plan for the premises.
• The licence can be granted based on factors like the suitability of the premises and the applicant's financial
resources.
• Licences are valid for five years and can be renewed.
• Employers must provide reasons for denying or renewing a licence.
• The authority can cancel or suspend a licence if misrepresentation or non-compliance is found.
• Workers can be allowed to work outside the industrial premises under specific conditions.
• Workers manufacturing beedi or cigars at home using raw materials provided by the employer are exempt.

11. What are the safety rules for construction workers?

• Employers must ensure that workers with certain health issues (like deafness, poor vision, or dizziness)
are not assigned risky tasks.
• Workers in construction sites must not perform operations that could endanger themselves or others.
• Employers need to assess the health of workers to ensure their safety.
• Specific safety protocols should be followed when assigning work to workers with health conditions.
• Any worker with a health risk must be reassigned to less hazardous tasks.
• The employer should be responsible for maintaining safety at construction sites.
• Regular medical check-ups should be conducted for workers involved in risky tasks.
• The employer must ensure that workers are trained in safety measures.
• The government can issue guidelines to improve working conditions for construction workers.

12. What are the provisions related to the employment of workers with disabilities in construction work
as per the code?

• Section 78 of the code states that no person with a disability, such as deafness, defective vision, or
tendency to giddiness, should be allowed to work in any construction operation that may pose a risk to
their own or others' safety.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• For example, a worker with defective vision should not be asked to work in high-risk areas, like on
scaffolding or in operations involving heavy machinery.
• The rule is meant to protect workers from harm due to their physical condition, ensuring that they do not
engage in tasks that could aggravate their disability or endanger their health.
• Employers must ensure proper risk assessment of workers’ abilities and assign tasks accordingly.
• It is essential for employers to evaluate the health conditions of workers before assigning them to risky
tasks.
• A worker who has a disability and is assigned a dangerous task can file a complaint if they feel their safety
is compromised.
• This provision ensures the safety and well-being of workers with specific health conditions in high-risk
environments.
• For example, a worker with a tendency to giddiness should not be made to work at heights or with
machines that require precision to avoid accidents.
• Employers need to develop policies and provide training to ensure that disabled workers are not exposed
to unsafe working conditions.

13. What are the steps involved in the approval and licensing of a factory ?

• According to Section 79, the appropriate government is responsible for making rules regarding the
approval and licensing of factories.

• The rules include the submission of plans and specifications for factory sites, as well as previous
permission for construction or extension of factories.
• The factory owner must submit plans and specifications to the State Government or Chief Inspector-cum-
Facilitator in electronic format for approval.
• If no response is received within thirty days, the permission is deemed granted as per Section 79(2).
• If the permission is denied, the applicant has thirty days to appeal to the Central Government if the
decision is from the State Government or to the State Government if the decision is from a local authority.
• The application should contain information about the construction, extension, or proposed location of the
factory.
• Licensing of the factory must include the payment of prescribed fees for renewal, as per the rules.
• The factory’s approval is not affected by the replacement or addition of plant and machinery unless it
affects the safety space or environmental conditions.
• The rules aim to ensure that factories are built in safe locations and adhere to environmental and safety
standards before beginning operations.

14. What are the responsibilities of factory owners when multiple factories share the same premises,
especially regarding safety and hygiene?

• Section 80 outlines that when separate factories are leased in the same premises, both the owner of the
premises and the occupiers of the factories are jointly responsible for maintaining common facilities.
• These common facilities include safety measures, fire protection, hygiene, and emergency preparedness.
• The owner of the premises must ensure that these shared facilities meet the required standards set by the
appropriate government.
• The occupiers must ensure that their individual factories do not interfere with these common facilities or
create hazards for other workers.
• For example, if one factory’s operation increases the risk of fire, the occupier is responsible for ensuring
that their operations do not endanger other workers in the shared premises.
• The owner and occupiers must cooperate to provide proper ventilation, temperature control, and access
to hygiene facilities.
• Regular inspections of the common facilities must be conducted to ensure compliance with safety
regulations.
• In case of an emergency, such as a fire or gas leak, all occupiers and the owner must coordinate to ensure
the safety of everyone on the premises.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• Failure to maintain these facilities properly could lead to penalties for both the owner and the occupiers
under the relevant safety laws.

15. What are the key provisions regarding hazardous processes in factories under the code?

• Section 82 addresses factories that involve dangerous manufacturing processes, which can expose
workers to bodily injury, poisoning, or disease.
• The appropriate government can specify operations that are dangerous and outline the measures required
to reduce risks, including protective clothing and equipment.
• Pregnant women may be prohibited from working in such hazardous processes to ensure their safety and
health.
• Workers employed in hazardous operations must undergo periodical medical examinations at the cost of
the occupier, to check their fitness for such roles.
• The factory owner must provide proper welfare amenities, sanitary facilities, and protective equipment
for workers in these dangerous operations.
• For example, in factories dealing with toxic chemicals, workers must wear protective gear and undergo
regular medical check-ups to ensure they are not adversely affected by exposure.
• The law also includes provisions for the safe handling, transportation, and disposal of hazardous
substances to minimize risks to workers and the public.
• A detailed safety policy must be laid out by the occupier regarding the handling of dangerous substances,
which is shared with workers and relevant authorities.
• Workers in factories with hazardous processes have the right to be informed of the dangers they face and
the safety measures in place.

16. How does the code address the issue of health records and safety measures for workers in factories
involving hazardous substances?

• Section 85 requires occupiers of factories involved in hazardous processes to maintain up-to-date health
records of workers exposed to harmful substances.
• These health records must be accessible to workers, ensuring transparency about their health status.
• The occupier must appoint qualified personnel to supervise the handling of hazardous substances and
ensure worker safety.
• Workers assigned to jobs involving hazardous materials must undergo medical examinations before
starting, and at regular intervals while employed in such roles.
• For example, workers handling chemicals in a factory must undergo periodic health checks to detect any
early signs of poisoning or other health issues.
• The occupier must ensure that proper protective equipment is provided, such as gloves, masks, and suits,
depending on the nature of the hazardous material.
• If workers are exposed to dangerous chemicals, the factory should implement strict safety measures to
avoid accidents, such as providing training on how to handle spills or accidents.
• In case of an emergency, workers must be trained in the use of safety equipment and procedures to
mitigate harm.
• Failure to maintain health records or provide adequate safety measures can lead to penalties for the factory
owner or occupier.

17. What are the responsibilities of employers in plantations regarding welfare and safety provisions
for workers?

• Section 92(1) states that employers must provide necessary housing, including drinking water, kitchen,
and toilet facilities for every worker employed in the plantation, including their families.
• Employers must provide crèche facilities for plantations with 50 or more workers. Crèches can be
provided by the plantation, the government, or in partnership with other establishments.
• Educational facilities for children aged 6 to 12 must be provided if more than 25 children of workers are
living in the plantation.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• Health facilities are mandatory for every worker and their family in the plantation, or the employer should
ensure coverage under the Employees State Insurance Act, 1948.
• Employers are also responsible for providing recreational facilities for the workers employed in the
plantation.
• The employer must ensure that the plantation’s workers receive welfare provisions either from their own
resources or through government schemes available in the area.
• In terms of safety (Section 93), employers must ensure safe practices when using, handling, storing, and
transporting chemicals, insecticides, and pesticides in the plantation.
• Special safeguards may be prescribed for employing women or adolescents in tasks that involve handling
hazardous chemicals.
• Employers must appoint qualified personnel to supervise the handling of toxic substances, ensuring
workers are properly trained about safety hazards, emergency response procedures, and protective
measures.
• Workers exposed to harmful chemicals must undergo periodic medical check-ups, and employers must
maintain health records that workers can access.

18. What safety measures must employers in plantations take to protect workers handling hazardous
chemicals and substances?

• Section 93(1) requires that employers make necessary arrangements for the safety of workers handling,
storing, or transporting toxic substances such as insecticides and pesticides.
• Employers must ensure that workers exposed to hazardous substances are given proper training on the
risks involved, safe handling practices, and emergency procedures in case of spillage or exposure.
• The employer must provide protective clothing and equipment to workers handling hazardous chemicals
to minimize exposure and health risks.
• Employers must ensure that every worker in the plantation engaged in such tasks undergoes periodic
medical examination to check for any health issues caused by exposure to toxic substances.
• Section 93(6) mandates that employers keep detailed health records for workers exposed to harmful
substances, which must be accessible to the workers.
• The plantation must provide adequate washing, bathing, and cloakroom facilities for workers to
decontaminate after handling toxic substances.
• Employers must display a list of permissible concentrations of chemicals in the air or breathing zones
where workers are exposed, ensuring that workers are not subjected to harmful levels.
• Precautionary notices must be prominently displayed in the plantation, warning workers about the risks
associated with insecticides, pesticides, and toxic substances.
• Employers must appoint qualified persons to supervise the handling of hazardous substances, ensuring
proper safety measures are in place at all times.
• Failure to comply with these safety measures may lead to severe health risks for workers, making it
essential for employers to follow the prescribed rules strictly.

19. What are some of the key offenses under the Occupational Safety, Health and Working Conditions
Code, 2020?

• One major offense is failing to follow safety rules in the workplace, like not using proper safety equipment
or procedures.
• Another offense is not keeping proper records of workers' hours, wages, and other important details, which
can lead to confusion or disputes.
• Blocking an inspector from checking safety conditions in the workplace is also an offense. Employers
cannot refuse inspections.
• Exposing workers to dangerous conditions without the necessary safety measures is against the law, like
making workers work in areas with harmful chemicals without protection.
• Forcing employees to work extra hours without paying them fairly or getting their consent is a violation
of the law.
• Employers must also provide basic welfare facilities like clean restrooms and places to eat. Not doing so
is an offense.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• Not registering the workplace under the OSH Code is another violation. Every workplace must officially
register as per the law.
• Hiring workers without a license to work as contract LABOUR is illegal and can lead to serious penalties.

20. What penalties are there for employers who break the rules in the OSH Code?

• Employers who don’t register their establishment can be fined up to ₹2 lakh.

• If employers fail to keep required records, they may face a fine of up to ₹50,000.
• Violating safety rules can lead to fines, orders to fix the problems, or both.
• Hiring workers as contract LABOUR without a proper license can result in both fines and imprisonment.
• Employers who don’t pay wages or benefits as required by law can face fines or even prison time.
• Any general violation of the code, not covered elsewhere, can lead to a fine of up to ₹2 lakh.
• If an accident causes death or serious injury, the penalty can be up to ₹5 lakh.
• Employers who continue breaking the rules after being warned can face higher fines and longer prison
sentences.
• Employers who block inspectors can be fined up to ₹1 lakh for obstructing their work.

21. How does the OSH Code ensure that employers follow the rules?

• The Inspector-cum-Facilitator plays a key role by inspecting workplaces and making sure safety standards
are followed.
• These inspectors also provide guidance to employers on how to improve safety measures.
• Grievance redressal mechanisms are available for workers to report any violations or unsafe conditions
in the workplace.
• Workers can file complaints if their rights are violated, and these complaints are handled by designated
authorities.
• If an employer does not follow the rules, legal actions can be taken to recover unpaid wages or fix unsafe
conditions.
• Decisions made by the authorities can be enforced by civil courts, meaning employers must follow them.
• The law aims to create a safer workplace for all workers by making sure employers face consequences
for breaking safety rules.
• These systems help make sure that all workers are protected and employers keep their workplaces safe
and healthy.

22. What are some examples of serious violations under the OSH Code, and what penalties do they
carry?

• A serious violation occurs if an accident happens in the workplace that causes death or serious injury to a
worker.
• In such cases, the penalty can be up to ₹5 lakh to the employer.
• An example of a serious violation could be a building collapse on a construction site, leading to worker
fatalities due to lack of proper safety measures.
• Another example is a chemical spill in a factory that harms workers because of inadequate protective gear
or safety protocols.
• Serious violations not only carry high fines but also create a need for immediate corrective actions to
prevent further harm.
• These penalties serve as a warning to employers to always maintain safety standards to avoid such
consequences.
• Employers who are repeatedly found guilty of serious violations could face even harsher penalties, such
as longer imprisonment or higher fines.
• The OSH Code emphasizes that protecting workers' lives and health is a top priority, with severe penalties
for failure to do so.

23. What powers does the court have under Section 113 of the OSH Code, 2020 to make orders?
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• Under Section 113 of the OSH Code, 2020, the court has the power to issue orders to ensure that
employers comply with safety and health standards.
• The court can direct the employer to make improvements in the workplace if there are unsafe conditions
that put workers at risk.
• If an employer fails to pay the required wages or benefits to workers, the court can order the employer to
pay the overdue amounts.
• The court can also impose fines on employers who violate the provisions of the OSH Code.
• In cases where serious harm or accidents occur, the court can order compensation to be paid to the affected
workers or their families.
• The court can enforce corrective measures, ensuring that unsafe practices are immediately stopped to
prevent further harm.
• If necessary, the court has the authority to shut down operations temporarily until the employer complies
with the required safety measures.
• These powers are in place to ensure that employers take responsibility for worker safety and that workers'
rights are fully protected.

24. What is the purpose of the Social Security Fund under the Code on Social Security, 2020?

• The Social Security Fund is set up to help provide financial support for social security schemes aimed at
unorganised workers, gig workers, platform workers, and others in need.
• Its goal is to ensure that workers who are not covered by regular employment benefits have access to
health care, income security, and other welfare benefits.
• The fund supports workers by funding various schemes, such as health insurance, maternity benefits, old
age protection, housing, and skill development.
• The fund is managed by the National Social Security Board for Unorganised Workers, which oversees
the implementation of the schemes and suggests new policies.
• It is financed through contributions from both the Central and State Governments, and employers or
digital platforms may also make contributions.
• The fund can also receive donations and grants from different sources, including companies under their
Corporate Social Responsibility (CSR) programs.
• The fund helps ensure that vulnerable workers, such as those in the gig economy, are included in welfare
schemes that were previously available only to formal sector workers.
• It aims to provide a safety net for workers who often lack benefits such as pensions, medical coverage,
and paid leave.
• The fund ensures that workers in the unorganised sector have a more secure future with access to essential
welfare measures.

25. How is the Social Security Fund managed and funded?

• The Social Security Fund is managed by the National Social Security Board for Unorganised Workers,
which advises the government on policies and monitors the implementation of the schemes.
• State-level boards also help manage the fund and implement social security schemes based on local needs.
• The fund receives money from contributions made by the Central Government, State Governments, and
other sources as prescribed by the government.
• Employers and digital platforms may be required to contribute to the fund, especially to support schemes
for gig and platform workers.
• The fund can also get financial support through grants and donations from the government or international
organizations.
• Companies may also contribute through their CSR activities, which help boost the fund's resources.
• The fund is used to finance a variety of social security schemes, including health and maternity benefits,
old age protection, and skill development programs for workers.
• Some of the money may also be spent on the administration of the fund, such as managing schemes and
ensuring their proper implementation.
• Transparency is maintained through regular audits, and reports are submitted to ensure that funds are
being used effectively for the welfare of workers.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

Two mark questions:

1. What is the role of the Central Board of Trustees of the Employees' Provident Fund?
The Central Board is responsible for managing the Employees' Provident Fund (EPF). It ensures the proper
use of funds and includes members such as a Chairperson, Vice-Chairperson, employer and employee
representatives, and government officials.
2. Who can be a member of the Central Board?
Members of the Central Board include government officials, state representatives, and employers or
employees from certain organizations. The Central Government decides the appointments after consulting
employer and employee groups.
3. What is the role of the Executive Committee?
The Executive Committee supports the Central Board in carrying out its duties. The Central Board can also
form additional committees to assist with its responsibilities.
4. What are the disqualifications for becoming or remaining a member of a Social Security
Organisation?
A person can be disqualified if they are insolvent, mentally unfit, convicted of a serious crime, or an
employer who hasn’t paid dues. Politicians cannot remain members after leaving their position.
5. What happens if a member is disqualified or doesn't perform well?
A disqualified member or one who misses too many meetings can be removed. If they misuse their position
or harm public interest, they can also be dismissed from office.
6. What is the process for removing a member?
The government must notify the member and give them a chance to explain why they should not be
removed. If their explanation is unsatisfactory, the member is removed from office.
7. What if a member has a conflict of interest in a decision?
If a member has a personal financial interest in a decision, they must disclose it and refrain from
participating in the decision-making process.
8. How does the Social Security Organisation conduct its meetings?
The Social Security Organisation holds regular meetings. Specific rules govern the meetings, including the
required number of members for a valid meeting (quorum).
9. What happens if a Social Security Organisation cannot perform its duties?
If the Social Security Organisation fails to perform, the government can suspend and reorganize it. The
government must explain the reason for this to Parliament or the State Legislature.
10. Can the government assign additional work to a Social Security Organisation?
Yes, the government can assign new functions, like managing additional social security schemes. The
government will approve the funds required for the new tasks.
11. Who can be appointed as the Central Provident Fund Commissioner?
The Central Government may appoint a Central Provident Fund Commissioner as the Chief Executive
Officer of the Central Board. The Commissioner is responsible for running the Employees' Provident Fund
Organisation, which manages the provident fund schemes (Section 14).
12. What is the role of the Financial Advisor and Chief Accounts Officer?
The Central Government appoints a Financial Advisor and Chief Accounts Officer to assist the Central
Provident Fund Commissioner. They help in managing and overseeing the funds and accounts (Section
14(3)).
13. What powers does the Central Board have in terms of appointments?
The Central Board can appoint various officers like Additional Central Provident Fund Commissioners and
Assistant Provident Fund Commissioners as needed. These appointments help in managing the Provident
Fund, Pension Scheme, and Insurance Scheme (Section 14(4)).
14. What is the contribution required for the Provident Fund Scheme?
The employer must contribute 10% of the employee's wages to the Provident Fund. The employee must
also contribute an equal amount, and they can contribute more if they wish (Section 16(1)(a)).
15. What is the pension scheme contribution process?
The employer contributes a portion of the wages to the Pension Fund, up to 8.33%. This money is used to
provide pension benefits to employees when they retire or become disabled (Section 16(1)(b)).
16. What is the purpose of the Deposit-Linked Insurance Scheme?
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

The Insurance Scheme provides life insurance benefits to employees. The employer contributes a small
percentage of the employee’s wages (up to 1%) to this scheme (Section 16(1)(c)).
17. What happens if an employer fails to pay the contributions?
If the employer doesn’t pay the Provident Fund contributions, the amount can be recovered from the
contractor. This can be done by deduction from the payment due to the contractor or as a debt (Section 18).
18. What is the priority of payment for Provident Fund dues?
Any amount due under the Provident Fund schemes has priority over other debts. It must be paid first
before other financial obligations, as per the Insolvency and Bankruptcy Code (Section 20).
19. What establishments are exempt from the Provident Fund scheme?
Establishments with fewer than 50 employees and not using power are exempt. Some government
establishments or those with existing pension or provident fund schemes are also exempt (Section 21).
20. What is the role of the Director General and Financial Commissioner of the Employees State
Insurance Corporation (ESIC)?
• The Director General and Financial Commissioner are the main officers of ESIC.
• They are appointed by the Central Government for a period of up to five years.
• They receive salaries as per government rules and have specific duties assigned by the government.
• They can be removed if a two-thirds majority of the Corporation votes for it, as per Section 24.
21. How is the Employees' State Insurance Fund managed and what can it be used for?
• The fund is created from contributions and other money collected by the Corporation, as stated in
Section 25.
• It is used for providing medical care, employee benefits, and paying the staff of the Corporation.
• The fund is kept in approved banks and is managed under rules prescribed by the Central Government.
• The Corporation can also accept grants or donations from various sources for its activities.
22. What are the main benefits provided to Insured Persons under this Code?
• Insured persons are entitled to sickness benefits, maternity benefits, disablement benefits, and
dependants’ benefits, as per Section 32.
• They receive medical treatment, and in case of death, the family can get funeral expenses.
• Benefits like these help employees when they are sick, disabled, or their family member passes away.
• The government also ensures that medical benefits can extend to the families of insured workers.
23. What are the employer’s responsibilities regarding the payment of contributions?
• The employer is responsible for paying both their own and the employee’s contribution, as per Section
29 and 31.
• The contributions are paid regularly as per the wage period and are due on the last day of that period.
• The employer can recover the employee’s contribution from their wages but not the employer’s share.
• They also bear the cost of remitting the contributions to the Corporation.
24. How can the Employees' State Insurance Corporation handle its assets and expenses?
• The Corporation can acquire, hold, and sell properties, both movable and immovable, for its operations,
as per Section 27.
• It can also raise loans with the approval of the Central Government and invest unutilized funds.
• It can create provident funds for its employees and manage resources for its smooth functioning.
• The Corporation follows prescribed rules for property management and financial operations.
25. What powers does the Corporation have for the health and welfare of Insured Persons?
• As per Section 33, the Corporation can promote activities for improving the health and welfare of
Insured Persons, including rehabilitation and re-employment of disabled or injured employees.
• Expenses for these activities are covered from the Employees' State Insurance Fund, within limits
prescribed by the Central Government.
• Example: Organizing health camps or skill-training workshops for injured employees to help them find
suitable work.
26. How is an accident presumed to arise during employment?
• According to Section 34, accidents during the course of employment are presumed to be work-related
unless proven otherwise.
• Accidents in emergencies, during rescue efforts, or while commuting to and from work are also
considered employment-related if there's a clear connection to the job.
• Example: If a worker gets injured while saving equipment from a fire at the workplace, it's considered
an employment-related accident.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

27. Are accidents caused by illegal actions during work covered under employment-related injuries?
• Section 35 states that accidents are covered even if the employee was acting against laws, orders, or
instructions, provided the act was connected to the employer’s business.
• Example: If a worker bypasses a safety rule to fix a machine and gets injured, it is still deemed a work-
related injury.
28. What is an occupational disease, and when is it considered an employment injury?
• Section 36 explains that diseases listed in the Third Schedule are considered occupational diseases if
contracted during specified employment periods.
• These are treated as employment injuries unless proven otherwise. Diseases directly linked to a specific
accident are also covered.
• Example: Workers exposed to harmful chemicals for years and developing lung diseases can claim it as
an occupational injury.
29. What are the responsibilities of a medical board regarding disablement cases?
• Section 37 allows the medical board to decide if an accident caused permanent disablement, assess loss
of earning capacity, and review cases if fresh evidence emerges.
• It can also reassess cases with significant health deterioration or appeals made by employees or the
Corporation.
• Example: A worker with a hand injury may have their case reviewed after worsening symptoms.
30. What benefits are provided to dependants of an Insured Person who dies from an employment
injury?
• As per Section 38, dependants receive benefits if the Insured Person dies due to a workplace injury. If
there are no close dependants, other eligible family members may get benefits.
• The Corporation can revise benefits based on new evidence, family changes, or fraudulent claims.
• Example: If a widow receiving benefits remarries, her entitlement to the benefit may stop.
31. What medical benefits can Insured Persons and their families claim?
• Section 39 entitles Insured Persons and their families to outpatient, inpatient, or home-based medical
treatments. Superannuated or permanently disabled workers can also receive benefits under specific
conditions.
• The Corporation can establish medical institutions and conduct health studies to improve services.
• Example: A retired factory worker can access hospital care if eligible under regulations.
32. What are the State Government’s responsibilities for medical treatment?
• Section 40 requires State Governments to provide reasonable medical treatment for Insured Persons and
their families. Agreements with the Corporation may define treatment scale and cost-sharing.
• The Corporation can directly manage medical services in consultation with the State Government.
• Example: A state hospital treating insured employees for workplace injuries must follow the agreement
terms.
33. What general rules apply to receiving benefits under this Chapter?
• Section 41 disallows receiving multiple overlapping benefits (e.g., sickness and maternity benefits for
the same period). Individuals must choose which benefit to claim.
• Benefits may stop if a person doesn’t follow medical treatment guidelines, leaves the treatment area
without permission, or unlawfully claims benefits.
• Example: If an employee gets both sickness and disablement benefits, they can only opt for one.
34. What happens if someone receives benefits they are not entitled to?
• As per Section 41(8), the individual or their legal representative must repay the amount or value of
benefits unlawfully received.
• This repayment can be enforced through specified recovery methods under Sections 129–132.
• Example: If a claimant provides false medical records to get extra benefits, they must return the money.
35. Can employers or employees claim benefits from multiple sources?
• Section 41(7) disallows claiming the same type of benefits from both the Corporation and the employer
under separate laws (e.g., Employees’ Compensation or Maternity Benefit).
• Example: A worker receiving maternity benefits under this Chapter cannot also claim maternity benefits
directly from the employer.
36. What is the government’s role in providing medical facilities to non-employees?
• The government can create schemes to provide medical facilities to non-employees and their families in
hospitals under the Corporation.
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• These facilities will be available in underutilized hospitals and on payment of user charges.
• The Central Government can decide the terms, conditions, and charges for these schemes.
• This scheme benefits those who are not employees but need medical services at a discounted or
regulated cost.
37. How can the Central Government provide benefits to unorganized, gig, and platform workers?
• The government can create schemes for unorganized, gig, and platform workers to provide benefits
similar to those available to regular employees.
• The scheme will specify the contribution, benefits, eligibility conditions, and other operational terms.
• The family members of these workers can also receive benefits under such schemes.
• The scheme ensures that workers in non-traditional jobs are covered by the same benefits as formal
employees.
38. What is the role of the Employees' Insurance Court?
• The Employees' Insurance Court is a special court set up by the State Government to deal with disputes
related to employees' insurance.
• Judges for this court are typically judicial officers or legal practitioners with at least five years of
experience.
• The court deals with matters such as employee benefits, contributions, and employer disputes with the
Corporation.
• The court has powers similar to a Civil Court and can enforce its orders like a Civil Court decree.
39. What types of matters are decided by the Employees’ Insurance Court?
• The Employees’ Insurance Court decides matters about whether someone is an employee, their wages,
and employer contributions.
• It also handles disputes over benefits, claims for dependents, and any issues with the Corporation’s
directions or reviews.
• It resolves claims for the recovery of benefits or contributions that are payable under this law.
• The court also handles cases where misrepresentation or non-disclosure affects the claim or benefits.
40. What is the procedure for filing disputes in the Employees’ Insurance Court?
• The employee or employer must deposit fifty percent of the amount in dispute with the court before
proceeding with the case.
• The Employees' Insurance Court may waive or reduce this deposit in certain situations.
• The court handles disputes between employers and the Corporation or employees, with no jurisdiction
for Civil Courts in these matters.
• The court follows the procedure set by the State Government and enforces its decisions like a Civil
Court.
41. Who is the competent authority under gratuity rules, and what are their powers?
• Competent authorities are appointed by the government to oversee gratuity implementation (Section
58).
• Multiple authorities in one area may have their work distributed by the government.
• Authorities can involve experts in specific matters to assist inquiries.
• They have court-like powers for summoning witnesses, examining evidence, and issuing commissions.
• Their inquiries are treated as judicial proceedings under the Indian Penal Code.
42. Can gratuity rules be overruled or modified by contracts or other agreements?
• Employees are entitled to better gratuity terms if provided by company policies, contracts, or awards
(Section 53).
• The law ensures a minimum standard, but superior terms prevail over the statutory minimum.
43. What penalties are applied for misuse or breach of gratuity rules by employees or employers?
• Gratuity may be forfeited for causing damage, engaging in violence, or committing acts of moral
turpitude during employment (Section 53).
• Employers failing to comply with insurance or fund requirements must immediately pay gratuity with
interest.
44. How is gratuity calculated for employees with variable work patterns or reduced wages?
• For piece-rated employees, daily wages are averaged over three months before termination.
• Seasonal employees receive seven days’ wages for each operational season.
• Employees on reduced wages due to disablement are calculated on pre- and post-disablement wages
proportionately (Section 53).
LABOUR LAW AND INDUSTRIAL RELATIONS -II ARUNA SOMALARAJU

• For monthly rated employees, fifteen days’ wages are calculated by dividing the last drawn monthly
wage by 26 and multiplying by 15.
45. What are the rules for maternity leave in cases of miscarriage, illness, or sterilization?
• Women are entitled to 6 weeks of leave with pay following a miscarriage or medical termination of
pregnancy (Section 65).
• For a tubectomy operation (sterilization), 2 weeks of leave with pay is provided.
• Up to 1 month of additional leave with pay is granted for illnesses related to pregnancy, delivery,
premature birth, or miscarriage, provided proof is submitted.
• These provisions allow women sufficient recovery time without financial loss.
46. How does the law support working mothers after childbirth in terms of childcare and nursing?
• Women returning to work after delivery are allowed two nursing breaks daily until the child turns 15
months old (Section 66).
• Establishments with 50 or more employees must provide a crèche facility within a prescribed distance
for childcare (Section 67).
• Women can visit the crèche four times a day, including during rest intervals.
• Employers must inform women about these benefits at the time of their appointment.
• These measures help mothers balance childcare and professional responsibilities effectively.
47. What protections are provided to women against dismissal during pregnancy and maternity leave?
• Employers are prohibited from dismissing or discharging women during pregnancy or maternity leave,
except in cases of gross misconduct (Section 68).
• Even if dismissed during this period, women remain entitled to maternity benefits.
• For misconduct-related dismissal, employers must issue a written order, and women have the right to
appeal within 60 days.
• These protections ensure women are not unfairly treated due to their maternity status.
48. How are maternity benefits and medical bonuses paid, and what happens if there is a dispute?
• Women must provide a written notice about their maternity leave and nominate a recipient for their
benefits (Section 62).
• Maternity benefits for the period before delivery are paid in advance; benefits post-delivery are paid
within 48 hours of proof submission.
• Failure to provide notice does not disqualify a woman from receiving benefits.
• If payments are withheld, women can lodge a complaint with an Inspector-cum-Facilitator, who can
order payment after inquiry (Section 72).
• Disputes can be appealed within 30 days to the appropriate authority, whose decision is final.
49. What are the employer's duties related to maternity benefits under the law?
• Employers must prominently display the provisions of maternity benefits in all establishments where
women work (Section 71).
• Employers cannot deduct wages for assigning lighter duties or allowing nursing breaks (Section 69).
• Employers must ensure timely payment of maternity benefits and communicate all available benefits to
employees.
• These duties create awareness among women workers and ensure legal compliance.
50. What are the consequences if a woman works during her maternity leave or violates the terms?
• Women who work for pay during maternity leave forfeit their maternity benefits for the period they
worked (Section 70).
• This ensures that maternity leave is used for rest and recovery.
51. How are maternity benefits handled in the event of the mother’s death?

• If a woman entitled to maternity benefits dies before receiving them, the payment is made to her
nominated person or legal representative (Section 63).
• If a woman dies during delivery or after giving birth, the employer must pay the maternity benefits for
the full entitled period unless the child also dies during this time.
• These provisions ensure financial support for the woman’s family in such cases.