Labour Law - LLB - IV Semester
Labour Law - LLB - IV Semester
Labour Law - LLB - IV Semester
OSMANIA UNIVERSITY
LABOUR
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LAW-II
-Payment of Wages Act 1936
-Minimum Wages Act 1948
-Payment of Bonus Act 1965
-The Employee’s Compensation Act 1923
-Employees State Insurance Act 1948
-Employees Provident Fund and Miscellaneous Provisions Act 1952
-The Maternity Benefit Act 1961
-The Payment of Gratuity Act 1972
-The Factories Act 1948
-Child Labour (Prohibition and Regulation) Act 1986
-The Equal Remuneration Act, 1976
This guide is highly beneficial for law students preparing to write the LL.B 3YDC
exams at Osmania University. It comprehensively covers all five subjects, with
content for each subject meticulously curated from previous years' questions. The
material is divided into three parts: Part A consists of short questions worth 6
marks each, Part B comprises long answers worth 15 marks each, and Part C
focuses on case laws. Additionally, the guide includes a compilation of top
landmark cases for quick reference.
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LL.B. IV SEMESTER
PAPER-I:
LABOUR LAW-II
Syllabus
Unit-I:
The Remunerative Aspects – Wages – Concepts of wages - Minimum, Fair, Living Wages - Wage
and Industrial Policies - Whitley Commission Recommendations - Provisions of Payment of Wages
Act 1936 – Timely payment of wages - Authorized deductions – Claims - Minimum Wages Act 1948
- Definitions - Types of wages - Minimum rates of wages - Procedure for fixing and revising
Minimum Wages – Claims -Remedy.
Unit-II:
Bonus – concept - Right to claim Bonus – Full Bench formula - Bonus Commission - Payment of
Bonus Act 1965 - Application – Computation of gross profit, available, allocable surplus - Eligibility
of Bonus - Disqualification of Bonus - set on – set off of allocable surplus- Minimum and Maximum
Bonus-Recovery of Bonus.
Unit-III:
Employees Security and Welfare aspect - Social Security - Concept and meaning -Social Insurance
- Social Assistance Schemes. Social Security Legislations - Law relating to workmen’s
compensation – The Employee’s Compensation Act 1923 – Definitions -Employer’s liability for
compensation - Nexus between injury and employment - payment of compensation - penalty for
default - Employees State Insurance Act 1948 –Application - Benefits under the Act - Adjudication
of disputes and claims – ESI Corporation.
Unit-IV:
Employees Provident Fund and Miscellaneous Provisions Act 1952 –
Contributions -Schemes under the Act - Benefits. The Maternity Benefit Act 1961
- Definitions-Application - Benefits. The Payment of Gratuity Act
1972 – Definitions – application - Payment of gratuity - eligibility – forfeiture –
Nomination – Controlling authorities.
Unit-V:
The Factories Act 1948 - Chapters dealing with Health, Safety and Welfare of Labour. Child Labour
- Rights of child and the Indian Constitution - Salient features of the Child Labour (Prohibition and
Regulation) Act 1986 – The Equal Remuneration Act, 1976.
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LL.B. IV SEMESTER
PAPER-I:
LABOUR LAW-II
Content
IMPORTANT ACTS
PART A - SHORT ANSWERS - 6 MARKS
PART B - LONG ANSWERS - 15 MARKS
PART C - CASE LAWS - 10 MARKS
LAND MARK CASES
SUGGESTED READINGS
Disclaimer : This guide is meticulously curated using a variety of reference books, with AI
utilized to assist in selecting the most suitable answers for each question and case law.
Extensive research has been undertaken to compile the content, aiming to streamline
students' study processes, save time on research, and empower them to focus on achieving
distinctions in their exams. Our objective is to offer the most reliable content to law students,
enhancing their competency and knowledge. The guide has been reviewed by our expert legal
panel to ensure error-free content; however, there may still be occasional errors that elude
human detection. If you come across any material errors in the content, please do not
hesitate to reach out to us.
Complied By
Important Acts
Labor laws in India are governed by a plethora of legislation, covering various aspects of employment,
industrial relations, wages, social security, and working conditions. Here is a list of some of the key acts
relevant to the subject of labor law in LLB, including the latest acts in India:
1. The Factories Act, 1948: This act regulates the working conditions in factories, including provisions
related to health, safety, welfare, working hours, and employment of young persons and women.
2. The Employees' Provident Funds and Miscellaneous Provisions Act, 1952: It establishes a provident
fund for the benefit of employees in factories and other establishments, providing for their retirement,
survivorship, and other benefits.
3. The Employees' State Insurance Act, 1948: This act provides for the establishment of a comprehensive
social security scheme for employees in certain specified categories, including medical benefits, sickness
benefits, and maternity benefits.
4. The Payment of Wages Act, 1936: It regulates the payment of wages to workers, including provisions
related to the time and mode of payment, deductions, and penalties for non-payment or delayed payment
of wages.
5. The Minimum Wages Act, 1948: This act sets the minimum rates of wages that must be paid to workers
in various industries and sectors, ensuring fair remuneration for their labor.
6. The Payment of Bonus Act, 1965: It mandates the payment of bonus to employees in certain
establishments based on profits earned, providing for calculation methods, eligibility criteria, and other
related provisions.
7. The Industrial Disputes Act, 1947: This act governs the resolution of industrial disputes between
employers and employees, including provisions related to strikes, lockouts, layoffs, retrenchment, and
dispute resolution mechanisms.
8. The Trade Unions Act, 1926: It regulates the formation, registration, and functioning of trade unions,
protecting the rights of workers to organize and collectively bargain with employers.
9. The Maternity Benefit Act, 1961: This act provides for maternity benefits to women employees, including
maternity leave, medical benefits, and other related provisions for the protection of their health and
interests during pregnancy and childbirth.
10. The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013: It
aims to prevent and address sexual harassment of women at the workplace, mandating the establishment
of internal complaints committees and providing for redressal mechanisms.
11. The Code on Wages, 2019: This comprehensive legislation subsumes and replaces four existing labor
laws related to wages, namely the Payment of Wages Act, Minimum Wages Act, Payment of Bonus Act, and
Equal Remuneration Act, streamlining and simplifying wage-related regulations.
12. The Occupational Safety, Health, and Working Conditions Code, 2020: This code amalgamates and
rationalizes 13 central labor laws related to occupational safety, health, and working conditions, aiming to
enhance the welfare and protection of workers across various sectors.
13. The Industrial Relations Code, 2020: This code consolidates and amends the laws relating to trade
unions, conditions of employment, and resolution of industrial disputes, providing for easier formation and
registration of trade unions, rationalization of provisions related to strikes, lockouts, and grievance
redressal mechanisms.
These acts form the backbone of labor laws in India, providing a comprehensive framework for the
regulation and protection of the rights and interests of workers in the country. It is essential for LLB
students to have a thorough understanding of these acts and their provisions to navigate the complex
landscape of labor law jurisprudence effectively.
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LL.B. IV SEMESTER PAPER I 7 LABOUR LAW-II
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LL.B. IV SEMESTER
PAPER-I:
LABOUR LAW-II
PART A- QUESTION
1. Fair Wages
2. Bonus Commission
3. Social Security Measures employees
4. Child Labour Act ,1986
5. Wage boards
6. Whitley Commission
7. Full bench formula
8. Notional Extension
9. Labour Welfare
10. Minimum Wages
11. Social Insurance
12. Social Assistance
13. Occupational Diseases
14. Partial Disablement
15. Total Disablement
16. Unfair Labour Practices
LL.B. IV SEMESTER PAPER I 7 LABOUR LAW-II
1.FAIR WAGES
Fair wages constitute a fundamental aspect of Indian labor laws, encapsulating principles that aim to
establish just and equitable compensation for employees. This concept is elucidated through legislative
frameworks such as the Payment of Wages Act, 1936, and the Minimum Wages Act, 1948.
Case Laws:
1. Neethi Mohan vs. State of Kerala (2017):
- In this pivotal case, the Supreme Court emphasized the significance of timely wage payment, positioning
any willful refusal to comply with the Payment of Wages Act as a punishable offense.
2. Unichoyi vs. State of Kerala (1962):
- The case clarified the interpretation of the term 'basic rate of wages' under the Minimum Wages Act,
highlighting its inclusive nature to encompass not only the cash rate but also a constant special allowance.
3. Standard Vacuum Refining Company vs. Its Workmen (1961):
- This case reinforced the comprehensive nature of wages under the Minimum Wages Act, affirming the
inclusion of both the basic rate and special allowances at a constant rate.
Conclusion:
Fair wages, as delineated by the Payment of Wages Act and the Minimum Wages Act, play a pivotal role in
promoting social justice and the well-being of employees. A nuanced understanding of these legislative
frameworks and associated case laws is essential for academic examinations, providing a comprehensive
foundation for students exploring the intricate dynamics of fair wages in the Indian labor context.
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LL.B. IV SEMESTER PAPER I 8 LABOUR LAW-II
2.BONUS COMMISSION
Bonus and commission structures, integral components of compensation, are governed by various legal
provisions in India. Understanding the relevant acts and sections is essential for employers and employees
to ensure compliance and fair practices.
Relevant Act: Payment of Bonus Act, 1965
Key Aspects and Sections:
1. Eligibility (Section 8):
- Section 8 defines the eligibility criteria for employees to receive a bonus. Employees earning up to a
specified salary threshold are entitled to a bonus.
2. Calculation Formula (Section 10): - Section 10 outlines the formula for calculating the bonus, considering
factors like the allocable surplus, available surplus, and the set-on and set-off of losses.
3. Payment of Minimum Bonus (Section 10A):
- Section 10A ensures that employees receive a minimum bonus, even if the allocable surplus is
insufficient.
Case Law: Mohd. Yasin vs. Labour Court (1984):
- In this case, the court emphasized that the concept of allocable surplus is crucial in determining the
quantum of bonus payable, and any violation of the provisions can lead to legal consequences.
Commission:
Relevant Act: The Sales Promotion Employees (Conditions of Service) Act, 1976
Key Aspects and Sections:
1. Payment of Commission (Section 6):
- Section 6 of the Act specifies the mode and frequency of payment of commission to sales promotion
employees, ensuring timely disbursement.
2. Deductions and Conditions (Section 7):
- Section 7 delineates permissible deductions from commission payments and conditions under which
such deductions are valid.
3. Commission Disputes (Section 9):
- Section 9 provides a mechanism for resolving disputes related to the payment of commission through
the intervention of the appropriate authority.
Case Law: E.I.D Parry (India) Ltd. vs. P.K. Mukherjee (1982):
- This case highlighted the importance of clearly defining the terms and conditions of commission
payments in employment contracts, preventing ambiguity and disputes.
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LL.B. IV SEMESTER PAPER I 9 LABOUR LAW-II
Social security measures for employees play a crucial role in ensuring their welfare and protection in the
workplace. In the context of Indian labor law, various treaties, conventions, articles, sections, and case laws
contribute to establishing a robust framework for social security. Let's explore these components in detail:
1. Treaties and Conventions:
- India is a signatory to various international treaties and conventions that emphasize the importance of
social security for workers. One of the key conventions is the International Labour Organization (ILO)
Convention No. 102 on Social Security (Minimum Standards), which provides a framework for establishing
minimum standards of social security for workers worldwide.
2. Constitutional Provisions:
- The Indian Constitution, under Directive Principles of State Policy (DPSP) enshrined in Part IV,
emphasizes the state's duty to ensure social security measures for its citizens. Article 41 specifically
directs the state to provide public assistance and social insurance to promote the welfare of people,
including workers.
3. Legislation:
- The Employees' State Insurance Act, 1948 (ESI Act) is a landmark legislation providing social security to
employees. It mandates the provision of medical benefits, sickness benefits, maternity benefits,
disablement benefits, and dependent benefits to employees and their families.
- The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act) establishes a
provident fund scheme, pension scheme, and insurance scheme to provide social security to employees in
the organized sector.
- The Payment of Gratuity Act, 1972 ensures the payment of gratuity to employees upon retirement,
resignation, or death, providing financial security to them and their families.
- The Maternity Benefit Act, 1961 mandates employers to provide maternity benefits to women employees,
including paid leave and medical benefits during pregnancy and childbirth.
- The Employees' Compensation Act, 1923 (formerly Workmen's Compensation Act) provides
compensation to employees or their dependents in case of injury, disablement, or death arising out of and in
the course of employment.
4. Case Laws:
- In the landmark case of Vishaka v. State of Rajasthan, the Supreme Court laid down guidelines to
prevent sexual harassment of women in the workplace, emphasizing the need for a safe and secure working
environment as part of social security measures.
- In Chandra Bhushan v. Union of India, the Supreme Court upheld the constitutional validity of the EPF
Act, emphasizing the importance of provident fund schemes in ensuring social security for employees.
- The case of Raj Kumar v. Director General, ESIC highlighted the obligation of employers to contribute to
the Employees' State Insurance Scheme, ensuring healthcare benefits for workers and their families.
5. Examples:
- Under the ESI Act, employees and their dependents are entitled to medical care at ESIC hospitals and
dispensaries, providing them with affordable healthcare services.
- The EPF Act allows employees to accumulate savings for retirement, emergencies, or other financial
needs through contributions from both employers and employees.
- The Maternity Benefit Act ensures that pregnant women employees receive paid leave and medical
benefits during pregnancy and childbirth, supporting their health and well-being.
In conclusion, social security measures for employees in India encompass a comprehensive framework
comprising international treaties, constitutional provisions, legislation, case laws, and practical examples.
These measures aim to protect the rights and promote the welfare of workers, ensuring their economic and
social security in the workplace.
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LL.B. IV SEMESTER PAPER I 10 LABOUR LAW-II
The Code on Social Security, 2020, is a significant legislative development aimed at modernizing and
consolidating various existing social security laws in India. It seeks to expand the coverage of social
security benefits to a broader section of the workforce and streamline the administration of social security
schemes. Here's an overview of the key provisions of the Code:
1. Consolidation of Laws:
- The Code on Social Security, 2020, consolidates and amends nine existing central labor laws related to
social security, including the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, the
Employees' State Insurance Act, 1948, and the Maternity Benefit Act, 1961.
2. Universal Social Security Coverage:
- One of the primary objectives of the Code is to extend social security coverage to all workers, including
those in the informal sector and gig economy. It aims to ensure that every worker, irrespective of their
employment status or income level, has access to essential social security benefits.
3. Social Security Fund:
- The Code proposes the establishment of a Social Security Fund, which will serve as a corpus for
financing various social security schemes. The fund will receive contributions from employers, employees,
and the government, ensuring sustainable financing for social security benefits.
4. Portability of Benefits:
- The Code introduces the concept of portability of social security benefits, allowing workers to access
benefits seamlessly even if they change jobs or locations. This ensures continuity of social security
coverage and prevents loss of benefits due to employment transitions.
5. Aadhaar-Based Identification:
- Aadhaar-based identification is integrated into the social security system to streamline the registration
process and facilitate the delivery of benefits. It helps in verifying the identity of beneficiaries and prevents
duplication or fraud in availing social security benefits.
6. Digital Platforms:
- The Code emphasizes the use of digital platforms for registration, contribution payments, and benefit
disbursements under social security schemes. This enhances transparency, efficiency, and accessibility in
the administration of social security programs.
7. Enhanced Maternity Benefits:
- The Code enhances maternity benefits by extending the duration of paid maternity leave from 12 weeks
to 26 weeks, aligning with international standards and promoting the health and well-being of working
mothers.
8. Penalties and Enforcement:
- The Code stipulates stringent penalties for non-compliance with its provisions, including fines and
imprisonment for violations by employers. It also strengthens enforcement mechanisms to ensure effective
implementation of social security laws.
9. Inclusive Approach:
- The Code adopts an inclusive approach by recognizing the diverse needs of different categories of
workers and providing flexibility in the design and implementation of social security schemes. It aims to
address the specific vulnerabilities and challenges faced by various segments of the workforce.
In summary, the Code on Social Security, 2020, represents a significant step towards reforming India's
social security framework to make it more comprehensive, inclusive, and responsive to the evolving needs
of the workforce. It lays the foundation for building a robust social security system that promotes the
economic security and social well-being of all workers in the country.
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LL.B. IV SEMESTER PAPER I 11 LABOUR LAW-II
Child labour remains a global concern, with millions of children around the world subjected to
exploitation and deprivation of their fundamental rights. In India, the Child Labour (Prohibition and
Regulation) Act, 1986, serves as a crucial legislative framework aimed at eradicating this social
evil and ensuring the welfare of children. This comprehensive analysis will delve into the
provisions of the Act, citing examples, relevant acts, and section references where applicable, to
provide a detailed understanding of its scope and impact.
4. Enforcement Mechanisms:
The Act establishes mechanisms for the enforcement of its provisions, including the
appointment of inspectors to inspect workplaces, investigate complaints, and ensure compliance
with the law.
- Example: Government-appointed inspectors conduct surprise visits to factories, workshops, and other
establishments to ensure compliance with the Child Labour Act, 1986. They have the authority to take
necessary actions against violators.
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LL.B. IV SEMESTER PAPER I 12 LABOUR LAW-II
- Relevant Provisions: Sections 17 and 18 empower inspectors to enforce the provisions of the Act
and take necessary measures for the rehabilitation and welfare of rescued child labourers.
5. Exceptions:
While the Act prohibits the employment of children in most circumstances, it allows for certain
exemptions in cases where children are employed in family enterprises or in the entertainment
industry, subject to conditions ensuring their education and well-being are not compromised.
- Example: A child assisting in a family-owned agricultural farm may be exempted from the
provisions of the Act, provided the work does not interfere with the child's education and health.
- Relevant Provisions: Section 3(1)(a) provides exemptions for children employed in family
enterprises, subject to conditions specified in the Act.
Conclusion:
The Child Labour (Prohibition and Regulation) Act, 1986, stands as a beacon of hope in the fight
against child labour, aiming to protect the rights and dignity of children and provide them with
opportunities for education and growth. Through its stringent provisions, enforcement
mechanisms, and penalties for violations, the Act serves as a deterrent to those exploiting
vulnerable children for economic gain. However, effective implementation and awareness are
essential to ensure the Act's success in eradicating child labour and building a future where every
child can realize their full potential in a safe and nurturing environment.
5. WAGE BOARD:
Wage boards play a pivotal role in regulating wages and working conditions in various industries,
ensuring fair remuneration for workers and fostering industrial harmony. In India, the
establishment of wage boards is governed by specific legislative provisions aimed at addressing
the diverse needs of different sectors. This comprehensive analysis will explore the concept of
wage boards, citing examples, relevant acts from Indian law, and provisions with section
references where applicable, to provide a detailed understanding of their role and functions.
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LL.B. IV SEMESTER PAPER I 13 LABOUR LAW-II
a. Determining Minimum Wages: The primary function of wage boards is to determine and fix
minimum wages for workers in the relevant industry or sector, taking into account factors such as
skill level, nature of work, and cost of living.
b. Reviewing Wage Structures: Wage boards periodically review and revise wage structures to
ensure that they remain equitable and reflective of prevailing economic conditions and industry
standards.
c. Resolving Disputes: Wage boards act as quasi-judicial bodies and adjudicate disputes relating
to wages, allowances, and other employment-related matters referred to them by the government
or stakeholders.
- Example: The Maharashtra Sugar Wage Board constituted under the Minimum Wages Act, 1948,
reviews and revises wage structures for workers employed in the sugar industry in Maharashtra
state, addressing issues such as fair wages and working conditions.
- Relevant Provisions: Section 5 of the Minimum Wages Act, 1948, empowers the appropriate
government to appoint wage boards and specify their composition and functions.
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LL.B. IV SEMESTER PAPER I 14 LABOUR LAW-II
- Example: The Central Wage Board for Coal Mining Industry constituted under the Minimum
Wages Act, 1948, conducts inquiries, collects data on wage levels and living conditions of coal
miners, and makes recommendations to the central government for fixing minimum wages and
other benefits.
- Relevant Provisions: Section 6 of the Minimum Wages Act, 1948, empowers wage boards to
exercise their powers and functions as specified under the Act.
Conclusion:
Wage boards play a vital role in regulating wages and improving working conditions in various
industries, ensuring fair remuneration and social justice for workers. Governed by specific
legislative provisions such as the Minimum Wages Act, 1948, and the Industrial Disputes Act, 1947,
wage boards are tasked with determining minimum wages, resolving disputes, and promoting
industrial harmony. Through their composition, functions, and powers, wage boards contribute to
fostering a conducive environment for sustainable growth and equitable development in the Indian
workforce.
6. WHITLEY COMMISSION:
The Whitley Commission, formally known as the Royal Commission on Labour in India, was
established in 1929 under the chairmanship of Sir William Henry Whitley. The commission was
tasked with investigating various aspects of labour conditions in India and making
recommendations for legislative and administrative reforms. While the commission primarily
focused on colonial India, its recommendations had a lasting impact on Indian labour laws and
policies. In this comprehensive analysis, we will explore the significance of the Whitley
Commission, its recommendations, and its influence on Indian labour legislation.
a. Wage Fixation: The commission recommended the establishment of wage boards to fix and regulate
wages in different industries. This recommendation led to the enactment of the Industrial Disputes Act,
1947, which empowered the government to set up wage boards for industries where collective bargaining
was inadequate or absent.
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LL.B. IV SEMESTER PAPER I 15 LABOUR LAW-II
- Example: In the textile industry, wage boards were established to determine fair wages for
workers based on factors such as skill level, cost of living, and productivity.
- Relevant Provisions: Section 9A of the Industrial Disputes Act, 1947, empowers the appropriate
government to constitute wage boards for the adjudication of wage-related disputes.
b. Working Hours and Conditions: The commission advocated for the regulation of working hours,
including the introduction of limits on daily and weekly working hours to prevent exploitation of
workers. These recommendations influenced subsequent labour laws such as the Factories Act,
1948, which set standards for working conditions in factories.
- Example: The Factories Act, 1948, stipulates maximum limits for daily and weekly working hours,
provisions for rest intervals, and regulations for the safety and welfare of workers in industrial
establishments.
- Relevant Provisions: Sections 51 to 66 of the Factories Act, 1948, detail the provisions related
to working hours, rest intervals, and overtime work.
c. Industrial Disputes Resolution: The commission emphasized the need for effective mechanisms
to resolve industrial disputes amicably and prevent disruptions in production. This led to the
enactment of the Industrial Disputes Act, 1947, which provides for the resolution of disputes
through conciliation, arbitration, and adjudication.
- Example: The Industrial Disputes Act, 1947, mandates the establishment of conciliation boards,
courts of inquiry, and industrial tribunals to resolve disputes between employers and workers.
- Relevant Provisions: Sections 4, 10, and 18 of the Industrial Disputes Act, 1947, outline the
procedures for conciliation, adjudication, and settlement of industrial disputes.
Conclusion:
The Whitley Commission's inquiry into labour conditions in colonial India and its recommendations
for legislative and administrative reforms had a profound impact on Indian labour laws and
policies. By advocating for fair wages, regulated working hours, and effective dispute resolution
mechanisms, the commission laid the foundation for a more equitable and just industrial relations
system in India. The legacy of the Whitley Commission continues to shape labour jurisprudence
and inspire efforts towards ensuring social justice, worker welfare, and dignified working
conditions in the country.
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LL.B. IV SEMESTER PAPER I 16 LABOUR LAW-II
The Full Bench Formula, also known as the Full Bench Decision, is a significant aspect of the
adjudicatory process in Labour Appellate Tribunals in India. This formula is employed to determine
the appropriate remedy or compensation in cases of industrial disputes, ensuring fairness and
equity in resolving conflicts between employers and employees. In this comprehensive analysis,
we will delve into the concept of the Full Bench Formula, its application in Indian labour law, and
its implications for stakeholders involved in industrial disputes.
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LL.B. IV SEMESTER PAPER I 17 LABOUR LAW-II
Disputes Act, 1947, empowers Labour Appellate Tribunals to adjudicate disputes and award appropriate
remedies or compensation based on the merits of each case.
- Example: Section 11A of the Industrial Disputes Act, 1947, provides for reinstatement or compensation
for workmen unlawfully dismissed. While the section does not prescribe a specific formula for determining
compensation, it grants tribunals the authority to award such relief as they deem fit based on the
circumstances of each case.
Conclusion:
The Full Bench Formula plays a vital role in the adjudication of industrial disputes by Labour Appellate
Tribunals in India. While not explicitly codified in legislation, it serves as a guiding principle for tribunals to
determine fair and equitable remedies or compensation for aggrieved parties. By considering factors such
as loss of wages, nature of the dispute, and precedents established through case law, the Full Bench
Formula ensures consistency and fairness in decision-making, thereby promoting harmonious industrial
relations and upholding the rights of both employers and employees.
8. NOTIONAL EXTENSION:
Notional extension is a legal principle applied in Indian labour law to extend certain benefits or protections
to employees who may not be explicitly covered under the law. This concept plays a crucial role in ensuring
fair treatment and safeguarding the rights of workers in various employment scenarios. In this
comprehensive analysis, we will explore the concept of notional extension, its significance, examples of its
application, and relevant provisions from the Employees' Compensation Act, 1923, and the Employees'
State Insurance Act, 1948.
Notional extension is significant in Indian labour law as it helps bridge gaps in legal coverage and ensures
that all workers receive fair treatment and protection, regardless of their formal classification or
designation.
- Temporary or Casual Workers: Notional extension also applies to temporary or casual workers who may
not have permanent employment status but perform duties similar to regular employees. In cases where
temporary or casual workers are engaged for long periods or perform core activities of an establishment,
courts have extended benefits such as social security, leave entitlements, and termination protections to
these workers.
- Domestic Workers: Domestic workers, including housemaids, cooks, and cleaners, are often excluded from
the purview of labour laws due to the informal nature of their employment. However, courts have applied
the principle of notional extension to afford domestic workers certain protections, such as minimum wages,
working hours regulation, and access to dispute resolution mechanisms.
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LL.B. IV SEMESTER PAPER I 18 LABOUR LAW-II
- Standard Chartered Bank v. Its Workmen: The Supreme Court in this case recognized the principle of
notional extension and held that contract workers performing duties similar to permanent employees
should be entitled to benefits such as gratuity and provident fund.
Conclusion:
Notional extension is a vital principle in Indian labour law that ensures equitable treatment and protection
for workers who may not be explicitly covered under existing laws. By extending statutory benefits and
protections to workers based on the nature of their employment and the tasks they perform, notional
extension helps address gaps in legal coverage and promotes social justice in the workplace.
Understanding the concept of notional extension and its application is essential for ensuring the effective
implementation of labour laws and safeguarding the rights of all workers in India.
9. LABOUR WELFARE:
Labour welfare encompasses various initiatives aimed at improving the well-being, health, and quality of
life of workers. In India, labour welfare measures are governed by a comprehensive legal framework that
includes several acts and regulations. This analysis will explore the concept of labour welfare, examples of
welfare measures, relevant acts in Indian labour law, and provisions where applicable.
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LL.B. IV SEMESTER PAPER I 19 LABOUR LAW-II
- Recreational Facilities: Recreation and leisure activities play a crucial role in relieving stress and
promoting work-life balance. Employers may develop recreational facilities such as sports complexes,
gyms, libraries, and cultural centers to provide opportunities for relaxation and social interaction among
workers.
Conclusion:
Labour welfare measures play a vital role in promoting the health, happiness, and productivity of workers.
The legal framework governing labour welfare in India provides a solid foundation for ensuring the
implementation of welfare measures across various industries and sectors. By adhering to the provisions of
relevant acts and regulations, employers can contribute to the overall welfare and development of their
workforce, thereby fostering a conducive work environment and promoting social justice in the labour
market.
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LL.B. IV SEMESTER PAPER I 20 LABOUR LAW-II
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LL.B. IV SEMESTER PAPER I 21 LABOUR LAW-II
- M/s Raptakos, Brett & Co. Ltd. v. Workmen: In this case, the Supreme Court held that the concept of
minimum wages is not restricted to ensuring bare subsistence but also includes providing for some
measure of comfort and decency to workers. The court emphasized the importance of fixing minimum
wages that enable workers to maintain a decent standard of living.
- Bijay Cotton Mills Ltd. v. State of Ajmer: The Supreme Court held that employers cannot evade their
obligation to pay minimum wages to workers by entering into contracts or agreements that provide for
wages lower than the prescribed minimum rates. The court emphasized that minimum wages are a
statutory right of workers and must be strictly adhered to.
3. Consequences of Non-Compliance:
Non-compliance with the Minimum Wages Act, 1948, can have severe consequences for employers,
including:
- Payment of Arrears: Employers may be required to pay arrears of wages to affected workers along with
penalties and fines.
- Legal Proceedings: Employers may face legal proceedings, including adjudication, penalties, and fines
imposed by the authorities under the Act.
- Civil and Criminal Liability: Employers may be held civilly and criminally liable for violations of the Act,
including prosecution and imprisonment in certain cases.
- Damage to Reputation: Non-compliance with minimum wage laws can damage the reputation of the
employer and adversely affect business operations, including loss of contracts and customers.
Conclusion:
The Minimum Wages Act, 1948, serves as a vital instrument for ensuring fair compensation and protecting
the rights of workers in India. By providing a legal framework for fixing and enforcing minimum rates of
wages, the Act promotes social justice, reduces poverty, and enhances the dignity and well-being of
workers. Understanding the scope and applicability of minimum wages, the remedy and procedure under
the Act, and the consequences of non-compliance is essential for employers, workers, and policymakers to
uphold the rights and interests of workers and foster a fair and equitable labour environment in India.
Social Insurance in Indian Labour Law: Promoting Economic Security and Welfare:
Social insurance is a vital component of labour welfare systems worldwide, providing protection to workers
and their families against economic risks such as illness, disability, unemployment, and old age. In India,
various laws and schemes have been enacted to provide social insurance benefits to workers and ensure
their economic security. This comprehensive analysis will explore the concept of social insurance in Indian
labour law, including examples, relevant acts, provisions, and case laws where applicable.
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The significance of social insurance lies in its role in promoting economic security, reducing poverty, and
enhancing social welfare. By providing financial assistance and access to essential services, social
insurance contributes to the overall well-being and productivity of the workforce.
Conclusion:
Social insurance plays a crucial role in providing economic security and welfare to workers and their
families. The Employees' State Insurance Act, 1948, and the Employees' Provident Funds and
Miscellaneous Provisions Act, 1952, are key legislations that provide social insurance benefits to workers in
India. By ensuring access to healthcare, income security, and other benefits, social insurance schemes
contribute to poverty reduction, social welfare, and economic development. Understanding the concept of
social insurance, relevant acts, provisions, and case laws is essential for employers, workers, and
policymakers to uphold the rights and interests of workers in India.
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Social assistance programs play a crucial role in providing support and assistance to vulnerable sections of
society, including the elderly, widows, and persons with disabilities. In India, the National Social Assistance
Programme (NSAP) is a significant initiative aimed at providing social assistance to those in need. This
comprehensive analysis will explore the objectives, schemes, scope, applicability, and legal provisions of
NSAP, along with relevant examples, acts, and case laws in Indian labour law.
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Conclusion:
The National Social Assistance Programme (NSAP) is a significant initiative aimed at providing social
assistance and financial support to vulnerable sections of society, including the elderly, widows, and
persons with disabilities. Through its various schemes, NSAP strives to alleviate poverty, promote social
welfare, and ensure dignified living conditions for beneficiaries. Understanding the objectives, scope,
applicability, legal provisions, and procedures under NSAP is essential for effective implementation and
successful delivery of social assistance to those in need in India.
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- Section 2(8): Defines "employment injury" to include occupational diseases arising out of and in the
course of employment.
- Section 51B: Provides for the payment of cash benefits to insured persons suffering from employment-
related diseases or injuries.
- Gajanan Iron & Brass Works Ltd. v. Workmen: The Supreme Court held that the incidence of silicosis
among workers engaged in sandblasting operations constituted an occupational disease, and the employer
was liable to provide compensation under the Workmen's Compensation Act, 1923.
6. Consequences of Non-Compliance:
Non-compliance with the provisions related to occupational health and diseases under the relevant labour
laws may result in legal consequences for employers, including penalties, fines, and civil liability for
compensation to affected workers. Additionally, failure to address occupational health hazards and prevent
occupational diseases can lead to adverse impacts on workers' health, productivity, and overall well-being.
Conclusion:
Occupational diseases pose significant risks to workers' health and well-being, necessitating effective
measures for prevention, identification, and management in the workplace. Through relevant acts,
provisions, and case laws, Indian labour law seeks to address and mitigate the impact of occupational
diseases by promoting occupational health and safety standards, ensuring timely identification and
reporting of diseases, and providing compensation and support to affected workers. Understanding the
concept of occupational diseases, relevant legal frameworks, and procedures for compliance is essential
for employers, workers, and policymakers to safeguard workers' health and promote a safe and healthy
work environment in India.
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Understanding Partial Disablement in Indian Labour Law: Provisions, Implications, and Case Studies
Partial disablement refers to a condition where an individual suffers from a reduced capacity to perform
their usual occupation or tasks due to an injury or illness sustained during employment. In Indian labour law,
provisions are in place to address partial disablement and ensure that affected workers receive appropriate
compensation and support. This comprehensive analysis will explore the concept of partial disablement,
relevant acts, provisions, case laws, and examples to illustrate its implications in Indian labour law.
The scope of partial disablement encompasses a wide range of conditions, such as partial loss of limb
function, reduced mobility, hearing impairment, visual impairment, or cognitive limitations, which impact an
individual's ability to engage in gainful employment or perform specific tasks effectively.
3. Provisions for Partial Disablement under the Employees' Compensation Act, 1923:
- Calculation of Compensation: Compensation for partial disablement is calculated based on the extent of
loss of earning capacity suffered by the worker as a result of the injury. The act provides a schedule for the
assessment of compensation based on the degree of disablement, expressed as a percentage of the total
disability.
- Medical Examination and Assessment: In cases of partial disablement, the injured worker is required to
undergo a medical examination by a qualified medical practitioner to assess the extent of disability and
loss of earning capacity. The assessment is based on factors such as the nature of the injury, functional
limitations, and vocational prospects of the worker.
- Hindustan Aeronautics Ltd. v. Madhukar P. Kanade: The Supreme Court held that compensation for
partial disablement should be determined based on the nature and severity of the injury, its impact on the
worker's ability to perform their job duties, and any resulting loss of earning capacity.
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Conclusion:
Partial disablement is a significant concern in Indian labour law, as it affects the livelihoods and well-being
of workers who sustain injuries or illnesses during employment. The Employees' Compensation Act, 1923,
provides provisions for the assessment and compensation of partial disablement, ensuring that affected
workers receive appropriate support and assistance. Understanding the implications of partial disablement,
relevant legal frameworks, and case laws is essential for employers, workers, and policymakers to address
the needs of injured workers and promote a safe and healthy work environment in India.
Total disablement refers to a condition where a worker becomes completely incapacitated due to an injury
or illness arising out of and in the course of employment, rendering them incapable of performing any
gainful work. In Indian labour law, provisions are in place to provide support and compensation to workers
who experience total disablement, ensuring their financial security and well-being. This comprehensive
analysis will explore the concept of total disablement, including examples, relevant acts, provisions, and
case laws in Indian labour law.
The scope of total disablement covers a wide range of conditions, including severe physical injuries,
permanent disabilities, and terminal illnesses, which render the worker permanently unfit for any form of
work.
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- Section 8: Provides for the payment of compensation to the dependents of a deceased worker in case of
total disablement resulting in death.
- The Employees' State Insurance Act, 1948: This act provides for social security benefits to workers and
their dependents in case of sickness, maternity, disablement, or death due to employment-related injuries
or diseases.
- Section 2(8): Defines "employment injury" to include total disablement arising out of and in the course
of employment.
- Section 51B: Provides for the payment of cash benefits to insured persons suffering from total
disablement due to employment-related injuries or diseases.
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LABOUR LAW-II
PART B- QUESTION
1. Discuss the set on and set off of allocable surplus in the payment BonusAct,1985.Allocable Surplus
2. Define Gratuity and discuss the salient features of the Payment of Gratuity Act 1972,
3. Explain the various benefits assured to the insured employees and their dependents under the
Employees State Insurance AcT, 1948.
4. Explain the salient features of the child labour ( Prohibition and Regulation) Act 1986.
5. Define the wages and discuss the authorised deductions which can be made from the wages of
employee under the payment of Wages Act 1936.
6. Discuss the employer’s liability to pay compensation for the injuries caused in the course of
employment .
7. Discuss the provisions relating to health and safety under the Factories Act 1948.
8. Explain the procedures for fixation and revision of minimum wages under the minimum wages Act,1948.
9. Discuss the concept of Bonus and Salient features of the payment of the Bonus Act 1965.
10. Discuss the concept of wages. What is the constitutional goal with regard to wages
11. Discuss the provision relating to “safety” under the Factories Act 1948.
12. Explain the salient features of employees provident funds & Miscellaneous Provisions Act.1952
13. Explain the salient features of Maternity benefits Act 1961
14. What are the main features of payment of wages Act 1936?
15. Hazardous Activity
16. Provident Fund
17. Computation of Gross Profits
18. Rights of Child
19. Explain the law related to equal pay for equal work
20. Non payment of minimum wages amounts to violation of fundamental rights. Discuss the statement
under the light of supreme court cases.
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1. DISCUSS THE SET ON AND SET OFF OF ALLOCABLE SURPLUS IN THE PAYMENT
BONUSACT,1985.ALLOCABLE SURPLUS
Understanding the Set-On and Set-Off of Allocable Surplus under the Payment of Bonus Act, 1965
The Payment of Bonus Act, 1965, is a significant piece of legislation aimed at providing statutory bonus
payments to eligible employees in certain establishments. The Act mandates the calculation and
distribution of bonus based on the allocable surplus available with the employer. Allocable surplus refers to
the surplus profits earned by the employer, subject to certain deductions and set-offs as per the provisions
of the Act. This comprehensive analysis will delve into the concept of allocable surplus, the set-on, and set-
off provisions, along with relevant examples, acts, provisions, and case laws in Indian labour law.
The scope of allocable surplus covers various components, including profits earned by the employer from
the establishment, certain allowable deductions, and adjustments as specified under the Act.
Understanding the calculation and allocation of allocable surplus is essential for both employers and
employees to ensure compliance with bonus payment obligations.
- Section 2(4): Defines "allocable surplus" as the surplus profits of an establishment, after making certain
deductions and set-offs as provided in the Act.
- Section 4: Specifies the methods for calculating the allocable surplus based on the financial statements
of the establishment.
- Section 15: Provides for the set-on and set-off of allocable surplus between different accounting years,
subject to certain conditions and limitations.
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Conclusion:
The set-on and set-off provisions under the Payment of Bonus Act, 1965, play a crucial role in adjusting
allocable surplus between different accounting years to ensure fair distribution of bonus to eligible
employees. These provisions allow for the carry-forward of deficits as set-on and the adjustment of surplus
as set-off to maintain consistency and equity in bonus payments. Understanding the concepts and
application of set-on and set-off of allocable surplus is essential for employers, employees, and authorities
responsible for bonus calculation and payment to ensure compliance with legal requirements and promote
harmonious industrial relations.
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2. DEFINE GRATUITY AND DISCUSS THE SALIENT FEATURES OF THE PAYMENT OF GRATUITY
ACT 1972.
1. Definition of Gratuity:
Gratuity is a statutory payment made by employers to employees as a token of appreciation for their long
and meritorious service upon retirement, resignation, or termination. It is a form of financial security
provided to employees, acknowledging their dedication and contribution to the organization over the years.
Gratuity is typically paid as a lump sum amount, calculated based on the employee's tenure of service and
last drawn salary.
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- LIC of India v. Retd. LIC Employees Association: The Supreme Court held that gratuity is a statutory right
of employees, and any delay or non-payment by the employer attracts interest and penalties under the
Payment of Gratuity Act, 1972.
- U.P. State Electricity Board v. Pooran Chandra Pandey: The Allahabad High Court emphasized that the
employer's obligation to pay gratuity arises upon completion of five years of continuous service by the
employee, irrespective
Conclusion:
The Payment of Gratuity Act, 1972, ensures the provision of financial security and recognition to employees
for their long and meritorious service in an organization. By defining gratuity, outlining eligibility criteria,
prescribing calculation methods, and specifying payment procedures, the Act establishes a framework for
the fair and equitable distribution of gratuity among eligible employees. Understanding the salient
features, provisions, and legal implications of the Act is essential for both employers and employees to
ensure compliance and uphold the rights and entitlements of employees in India.
3. EXPLAIN THE VARIOUS BENEFITS ASSURED TO THE INSURED EMPLOYEES AND THEIR
DEPENDENTS UNDER THE EMPLOYEES STATE INSURANCE ACT, 1948.
Comprehensive Analysis of Benefits under the Employees' State Insurance Act, 1948:
The Employees' State Insurance Act, 1948, is a significant legislation aimed at providing social security
benefits to employees and their dependents in India. Under the Act, insured employees are entitled to
various benefits, including medical, cash, and maternity benefits, to safeguard their well-being and provide
financial support during times of need. This comprehensive analysis will explore the benefits assured to
insured employees and their dependents under the Employees' State Insurance Act, 1948, including
examples, relevant acts, provisions, section references, and case laws in Indian labour law.
The Employees' State Insurance Act, 1948, is a social security legislation enacted to provide comprehensive
medical care, cash benefits, and other welfare measures to employees and their dependents. The Act
applies to factories, establishments, and specified categories of employees earning wages up to a certain
limit.
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- Section 46: Provides for medical benefits and sickness benefit for insured employees and their
dependents.
- Section 50: Specifies the provisions for maternity benefit for female insured employees.
- Sections 51-54: Outline the provisions for disablement benefit for insured employees suffering from
temporary or permanent disablement.
- Section 56: Provides for dependent's benefit in case of the death of an insured employee due to
employment-related causes.
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- ESI Corporation v. K. Venugopal: The Supreme Court held that the purpose of the Employees' State
Insurance Act, 1948, is to provide social security benefits to insured employees and their dependents, and
any delay or denial of benefits violates the statutory rights of beneficiaries.
- Regional Director, ESI Corporation v. Chitralekha & Ors.: The Kerala High Court emphasized the
importance of timely and accurate assessment of disablement for insured employees and the obligation of
the ESI Corporation to provide adequate compensation and support as per the provisions of the Act.
Conclusion:
The Employees' State Insurance Act, 1948, plays a crucial role in providing social security benefits to
insured employees and their dependents, including medical, cash, and maternity benefits. By ensuring
access to healthcare services, financial assistance during periods of incapacity, and support in times of
need, the Act contributes to the well-being and welfare of the workforce in India. Understanding the various
benefits, provisions, and legal implications under the Act is essential for both employers and employees to
ensure compliance and uphold the rights and entitlements of insured individuals and their dependents.
Safeguarding Childhood: Salient Features of the Child Labour (Prohibition and Regulation) Act, 1986:The
Child Labour (Prohibition and Regulation) Act, 1986, is a landmark legislation aimed at addressing the issue
of child labour in India. It seeks to prohibit the employment of children in certain hazardous occupations and
processes while regulating their working conditions in non-hazardous occupations. This comprehensive
analysis will explore the salient features of the Act, including examples, provisions, section references, and
relevant case laws in Indian labour law.
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Conclusion:
The Child Labour (Prohibition and Regulation) Act, 1986, is a crucial legislation aimed at eliminating the
scourge of child labour and protecting the rights and well-being of children in India. By prohibiting the
employment of children in hazardous occupations and regulating their working conditions in non-hazardous
occupations, the Act seeks to ensure a safe, healthy, and nurturing environment for children to grow and
develop. Understanding the salient features, provisions, and legal implications of the Act is essential for
stakeholders, including employers, parents, guardians, and authorities, to work together towards the
eradication of child labour and the promotion of children's rights and welfare.
5. DEFINE THE WAGES AND DISCUSS THE AUTHORISED DEDUCTIONS WHICH CAN BE MADE
FROM THE WAGES OF EMPLOYEE UNDER THE PAYMENT OF WAGES ACT 1936.
Understanding Wages and Authorized Deductions under the Payment of Wages Act, 1936:
Wages are a fundamental aspect of employment, representing the compensation paid by employers to
employees for the work performed. The Payment of Wages Act, 1936, is a significant legislation that
governs the payment of wages to employees and regulates deductions that can be made from their wages.
This comprehensive analysis aims to define wages, explore the authorized deductions under the Act,
provide examples, reference relevant provisions and sections, and discuss applicable case laws in Indian
labour law.
1. Definition of Wages:
Wages refer to the remuneration or monetary compensation paid by employers to employees for the
services rendered during the course of employment. It includes all forms of payment, whether in cash or
kind, and may consist of basic salary, allowances, bonuses, commissions, or any other monetary benefits
agreed upon between the employer and employee.
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Conclusion:
The Payment of Wages Act, 1936, ensures the timely payment of wages to employees and regulates
deductions that can be made from their wages by employers. By authorizing specific deductions such as
fines, deductions for absence, damages, and amenities and services, the Act strikes a balance between
protecting the interests of employers and safeguarding the rights and interests of employees.
Understanding the salient
features, provisions, and authorized deductions under the Act is essential for employers, employees, and
authorities to ensure compliance with legal requirements and promote fair and equitable employment
practices in India.
6. DISCUSS THE EMPLOYER’S LIABILITY TO PAY COMPENSATION FOR THE INJURIES CAUSED
IN THE COURSE OF EMPLOYMENT .
The Employees' Compensation Act, 1923, provides for compensation to employees or their dependents in
case of injury, disablement, or death arising out of and in the course of employment. It imposes a statutory
obligation on employers to compensate employees for work-related injuries or accidents.
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5. Conclusion:
Employer’s liability to pay compensation for injuries caused in the course of employment is a fundamental
principle of labour laws aimed at protecting the rights and welfare of workers. The Employees'
Compensation Act, 1923, imposes an absolute liability on employers to compensate employees for work-
related injuries, irrespective of fault or negligence. Understanding the concept of "in the course of
employment" and the provisions of the Act is essential for employers, employees, and authorities to ensure
timely and fair compensation for injured workers and their dependents, thereby promoting workplace
safety and welfare in India.
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7. DISCUSS THE PROVISIONS RELATING TO HEALTH AND SAFETY UNDER THE FACTORIES
ACT 1948.
The Factories Act, 1948, is a crucial legislation aimed at ensuring the health, safety, and welfare of workers
employed in factories. It lays down comprehensive provisions concerning various aspects of occupational
safety and health to prevent accidents, injuries, and occupational diseases. This analysis will delve into the
provisions related to health and safety under the Factories Act, 1948, specifically focusing on Sections 11 to
40B. Each section will be explained in detail, accompanied by examples, references to relevant provisions,
and applicable case laws in Indian labour law.
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Examples:
- Conducting formal inquiries, investigations, or hearings to determine the causes and circumstances of
workplace accidents.
- Appointing inquiry committees or expert panels to review accident reports, gather evidence, and make
recommendations for preventive action.
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Examples:
- Conducting routine inspections of factory premises to assess compliance with health and safety
regulations, including machinery safety, fire precautions, and sanitation standards.
- Investigating workplace accidents, injuries, or complaints of unsafe working conditions and taking
necessary enforcement actions to ensure corrective measures are implemented.
Explanation: Section 40B grants factory inspectors the authority to deal with dangerous machines,
processes, or operations posing risks to the health and safety of workers. Inspectors may issue directions
to safeguard workers, prohibit the use of hazardous machinery, or take other measures to prevent
accidents or injuries.
Examples:
- Issuing stop-work orders or prohibition notices for machines or equipment deemed unsafe or hazardous to
workers' health.
- Directing employers to implement engineering controls, safety measures, or machine guarding devices to
mitigate risks associated with dangerous machines or operations.
- Indian Metal and Metallurgical Corporation v. State of Orissa: The Supreme Court emphasized the
importance of compliance with health and safety provisions under the Factories Act, 1948, and held that
employers must ensure the safety and welfare of workers to prevent accidents and injuries.
- National Textile Corporation Ltd. v. Presiding Officer, Labour Court: The High Court ruled in favor of
workers seeking compensation for injuries sustained due to unsafe working conditions, emphasizing
employers' liability to provide a safe work environment as per the provisions of the Factories Act, 1948.
Conclusion:
The Factories Act, 1948, lays down comprehensive provisions for ensuring the health, safety, and welfare of
workers employed in factories. Sections 11 to 40B delineate various aspects of occupational health and
safety, including cleanliness, ventilation, temperature control, dust and fume control, and provisions for
first aid and emergency response. Compliance with these provisions is essential for employers to create a
safe and healthy work environment and prevent accidents, injuries, and occupational diseases.
Understanding the requirements, implementing appropriate measures, and fostering a culture of safety are
imperative for promoting workers' well-being and productivity in the industrial sector.
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8. EXPLAIN THE PROCEDURES FOR FIXATION AND REVISION OF MINIMUM WAGES UNDER THE
MINIMUM WAGES ACT,1948.
Procedures for Fixation and Revision of Minimum Wages under the Minimum Wages Act, 1948:
The Minimum Wages Act, 1948, is a crucial piece of legislation aimed at ensuring fair remuneration for
workers employed across various sectors in India. It establishes procedures for the fixation and revision of
minimum wages, which serve as the baseline for ensuring decent living standards for workers. This analysis
will delve into the procedures for fixation and revision of minimum wages under the Minimum Wages Act,
1948, providing examples, references to relevant provisions, and applicable case laws in Indian labour law.
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Conclusion:
The procedures for fixation and revision of minimum wages under the Minimum Wages Act, 1948, are vital
for ensuring fair remuneration and decent living standards for workers. By following a systematic process
involving data analysis, stakeholder consultations, and periodic reviews, the government aims to strike a
balance between the needs of workers and the capacity of employers to pay. Upholding the principles of
social justice and equity, minimum wage fixation contributes to poverty alleviation, economic development,
and social welfare in India.
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9.DISCUSS THE CONCEPT OF BONUS AND SALIENT FEATURES OF THE PAYMENT OF THE
BONUS ACT 1965.
Concept of Bonus and Salient Features of the Payment of Bonus Act, 1965:
Bonus payments serve as a significant component of remuneration in the employment landscape, often
acting as a tool to incentivize and reward employees for their contributions. The Payment of Bonus Act,
1965, governs the payment of bonus to employees in various industries, aiming to ensure fairness and
transparency in bonus distribution. This comprehensive analysis will explore the concept of bonus, delve
into the salient features of the Payment of Bonus Act, 1965, and provide insights into relevant provisions,
examples, and case laws from Indian labour law.
1. Concept of Bonus:
a. Definition and Purpose:
Bonus, in essence, represents an additional form of compensation provided to employees beyond their
regular wages or salaries. It serves multiple purposes, including incentivizing performance, recognizing
employee contributions, and fostering motivation and loyalty within the workforce. Bonuses can take
various forms, such as performance-based bonuses, profit-sharing bonuses, or special occasion bonuses
like festival bonuses.
b. Legal Framework:
The concept of bonus finds its legal framework in statutes like the Payment of Bonus Act, 1965, which
establishes rules and regulations for the payment of bonuses by employers to their employees. This Act
ensures that bonuses are disbursed fairly and equitably, setting guidelines for computation, payment, and
dispute resolution.
c. Examples:
- Performance Bonus: A sales executive receiving a bonus based on exceeding quarterly sales targets.
- Profit-sharing Bonus: Employees of a company receiving a bonus calculated as a percentage of the
company's annual profits.
- Festival Bonus: Workers in a factory receiving a bonus during festive seasons like Diwali or Christmas.
- Retention Bonus: Key employees offered a bonus to incentivize them to stay with the company during a
critical period.
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Conclusion: The Payment of Bonus Act, 1965, plays a crucial role in regulating bonus payments and
ensuring fair compensation to employees in India. By elucidating the concept of bonus, highlighting the
salient features of the Act, and providing insights into relevant provisions, examples, and case laws, this
analysis offers a comprehensive understanding of the legal framework governing bonus payments.
Upholding principles of equity, fairness, and social justice, the Act contributes to fostering harmonious
industrial relations and promoting the welfare of workers in the country.
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11.DISCUSS THE CONCEPT OF WAGES. WHAT IS THE CONSTITUTIONAL GOAL WITH REGARD
TO WAGES
1. Concept of Wages:
a. Definition and Components:
Wages encompass various forms of remuneration provided to workers, including salaries, allowances,
bonuses, incentives, and other monetary benefits. These payments can be made on a regular basis, such as
hourly, daily, weekly, or monthly, depending on the terms of employment.
b. Statutory Framework:
The Payment of Wages Act, 1936, is a key legislation in India that governs the payment of wages to
workers. It ensures timely and full payment of wages, prohibits unauthorized deductions, and provides
mechanisms for redressal of wage-related grievances.
c. Examples:
- Basic Salary: The fixed amount paid to an employee for their regular work hours.
- Allowances: Additional payments made to cover expenses such as housing, transportation, or food.
- Overtime Pay: Additional compensation provided for work done beyond normal working hours.
- Bonus: Supplementary payments made based on performance, productivity, or company profits.
- Deductions: Amounts withheld from wages for taxes, insurance, or other statutory obligations.
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Conclusion:
The concept of wages in Indian labour law encompasses various forms of remuneration provided to
workers, guided by statutory laws and constitutional principles aimed at ensuring social justice and
economic equality. By elucidating the concept of wages, exploring constitutional goals concerning wages,
and providing insights from relevant acts, provisions, examples, and case laws, this analysis offers a
comprehensive understanding of the legal framework governing wage payments in India. Upholding
principles of fairness, equality, and social welfare, the Indian legal system strives to protect the rights and
interests of workers and promote a just and equitable society.
11.DISCUSS THE PROVISION RELATING TO “SAFETY” UNDER THE FACTORIES ACT 1948.
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d. Section 24: Striking Gear and Devices for Cutting Off Power:
- Section 24 mandates the provision of suitable striking gear or other devices to cut off power in
emergencies or during maintenance work.
- This provision helps prevent accidents by enabling workers to quickly shut down machinery in case of
emergencies.
- Example: Emergency stop buttons installed near machinery allow workers to immediately cut off power in
case of entanglement or other hazards.
e. Section 25: Self-acting Machines:
- Section 25 requires self-acting machines to be safeguarded to prevent accidents.
- Employers must provide efficient mechanical safeguards such as interlocking devices or automatic stops.
- Example: A conveyor belt equipped with sensors that automatically stop the belt if a worker's hand comes
too close to moving parts.
f. Section 26: Casing of New Machinery:
- Section 26 mandates that all new machinery must be properly encased or guarded to prevent access to
dangerous parts.
- Employers are responsible for ensuring that new machinery meets safety standards before being put into
operation.
- Example: A factory installing a new hydraulic press must ensure that it is fitted with appropriate guards to
comply with Section 26.
g. Section 27: Prohibition of Use of Certain Types of Machinery:
- Section 27 empowers the State Government to prohibit the use of certain types of machinery deemed
dangerous to workers' safety.
- This provision enables regulatory authorities to intervene and prevent the use of hazardous equipment in
factories.
- Example: The State Government may prohibit the use of outdated or malfunctioning machinery posing
risks to workers' safety under Section 27.
h. Section 28: Hoists and Lifts:
- Section 28 mandates regular inspection and maintenance of hoists and lifts used in factories to ensure
their safe operation.
- Employers are required to appoint competent persons to conduct inspections and keep records of
maintenance activities.
- Example: A factory employing goods lifts must schedule periodic inspections and maintenance checks as
per Section 28 requirements.
i. Section 29: Lifting Machines, Chains, Ropes, and Lifting Tackles:
- Section 29 mandates proper examination and testing of lifting machines, chains, ropes, and tackles used
in factories to ascertain their safety.
- Employers must ensure that lifting equipment meets prescribed standards and is certified safe for use.
- Example: A factory using overhead cranes must subject them to periodic testing and certification as per
Section 29 guidelines.
j. Section 30: Revolving Machinery:
- Section 30 requires the provision of suitable guards or enclosures for revolving machinery to prevent
accidents.
- Employers must ensure that workers are protected from the risk of entanglement or contact with rotating
parts.
- Example: A factory with rotating shafts or flywheels must install guards to cover exposed parts and
comply with Section 30.
k. Section 31: Pressure Plant:
- Section 31 mandates proper examination and testing of pressure vessels and boilers used in factories to
ensure their safety.
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Conclusion:
Safety provisions under the Factories Act, 1948, play a crucial role in protecting the health and well-being
of workers employed in factories across India. By elucidating key sections, providing examples, and
highlighting the importance of compliance with safety regulations, this analysis offers insights into the
legal framework governing safety in factories. Upholding principles of occupational health and safety, the
Act aims to prevent accidents, mitigate risks, and promote a safe working environment for all workers.
Compliance with safety provisions not only ensures legal adherence but also contributes to enhanced
productivity, reduced absenteeism, and improved employee morale in the industrial sector.
Salient Features of the Employees Provident Funds & Miscellaneous Provisions Act, 1952:
The Employees Provident Funds & Miscellaneous Provisions Act, 1952, is a landmark legislation in India
aimed at providing social security to workers by ensuring the accumulation of savings for their post-
retirement financial security. This comprehensive analysis will explore the salient features of the Act,
elucidate its key provisions, provide examples, discuss relevant acts from Indian labour law, and highlight
case laws where applicable.
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7. Case Laws: a. Manipal Academy of Higher Education v. Regional Provident Fund Commissioner (2019):
- In this case, the Karnataka High Court held that contributions made by an employer towards employee
provident fund are part of the employee's wages and cannot be arbitrarily reduced or withdrawn..The
judgment emphasized the statutory obligation of employers to contribute to the provident fund and the
entitlement of employees to receive their full contributions.
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Conclusion:
The Employees Provident Funds & Miscellaneous Provisions Act, 1952, stands as a cornerstone in India's
social security framework, providing a safety net for workers' post-retirement financial security. Through
its salient features, including establishment of provident fund, contributions, management, withdrawal and
settlement, interest, and penalties for non-compliance, the Act ensures the accumulation and protection of
workers' savings. Upholding principles of equity and social justice, the Act safeguards the interests of
employees and promotes a culture of financial prudence and security in the workforce.
The Maternity Benefits Act, 1961, is a landmark legislation in India aimed at ensuring the health and welfare
of women employees during pregnancy and childbirth. It provides for maternity benefits such as paid leave,
medical benefits, and nursing breaks, with the objective of promoting gender equality and protecting the
rights of women in the workforce. This comprehensive analysis will explore the salient features of the Act,
elucidate its key provisions, provide examples, discuss relevant acts from Indian labour law, and highlight
case laws where applicable.
2. Maternity Leave:
a. Section 6: Duration of Maternity Leave:
- The Act provides for a certain period of maternity leave, which may vary based on the nature of the
employment and other factors.
- Employers are required to grant maternity leave to women employees for a specified period before and
after childbirth.
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3. Medical Benefits:
a. Section 8: Medical Allowance:
- The Act provides for medical allowances to cover the expenses of prenatal and postnatal care, including
medical examinations, consultations, and treatment.
- Employers are required to reimburse women employees for medical expenses related to maternity care.
b. Section 9: Leave for Medical Examination:
- Women employees are entitled to take leave for medical examinations related to their pregnancy and
childbirth, without loss of pay.
- Employers must grant leave for medical check-ups as requested by women during their maternity period.
c. Examples:
- A pregnant employee is reimbursed for the expenses incurred during prenatal check-ups, ultrasound
scans, and other medical tests as per the provisions of the Act.
- A woman takes leave from work to attend medical appointments with her obstetrician during her
pregnancy, with no deduction from her salary as provided under Section 9.
4. Nursing Breaks:
a. Section 11: Nursing Breaks:
- Women employees are entitled to nursing breaks during their work hours to breastfeed or express milk for
their infants.
- Employers must provide suitable facilities for nursing mothers to express milk in privacy and ensure a
conducive environment for breastfeeding.
b. Section 12: Creche Facilities:
- Employers with a certain number of women employees are required to provide creche facilities within the
workplace or in close proximity.
- Creches must be adequately equipped with amenities for the care and supervision of infants during
working hours.
c. Examples:
- A working mother is granted nursing breaks during her work hours to breastfeed her infant or express
milk in a designated lactation room provided by her employer.
- A company establishes an on-site creche facility for its employees' infants, equipped with trained staff,
breastfeeding facilities, and age-appropriate amenities.
5. Prohibition of Dismissal:
a. Section 12A: Prohibition of Dismissal:
- The Act prohibits employers from dismissing or discharging women employees during their maternity
leave period.
- Any termination of employment during this period is considered unlawful and attracts penalties under the
Act.
b. Section 12B: Right to Return to Work:
- Women employees who have availed maternity leave are entitled to return to their previous position or an
equivalent position with the same pay and benefits.
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- Employers must reinstate women employees after their maternity leave period and ensure continuity of
employment.
c. Examples:
- An employer terminates the employment of a pregnant employee, citing her pregnancy as the reason. This
action is deemed unlawful under Section 12A of the Act.
- A woman returns to work after her maternity leave and is reinstated to her previous position with the same
salary and benefits as per Section 12B.
6. Case Laws:
a. Air India v. Nergesh Meerza (1981):
- The Supreme Court held that the right to maternity benefits under the Act is a fundamental right
guaranteed to women employees, and any denial or curtailment of these benefits constitutes a violation of
their constitutional rights.
- The judgment reaffirmed the importance of maternity benefits in protecting the health and welfare of
women employees.
b. Municipal Corporation of Delhi v. Female Workers (2000):
- The Delhi High Court ruled that the provision of maternity benefits, including paid leave and medical
allowances, is mandatory for employers under the Act, and any failure to comply with these provisions
amounts to exploitation and discrimination against women workers.
- The judgment emphasized the need for strict enforcement of maternity benefits to promote gender
equality and workplace justice.
Conclusion:
The Maternity Benefits Act, 1961, plays a pivotal role in safeguarding the health, welfare, and rights of
women employees during pregnancy and childbirth. Through its salient features, including entitlement to
maternity benefits, maternity leave, medical benefits, nursing breaks, and prohibition of dismissal, the Act
seeks to promote gender equality, protect women's rights, and ensure workplace justice. Compliance with
the Act's provisions is essential for employers to create a supportive and inclusive work environment
conducive to the well-being and empowerment of women in the workforce.
b. Key Provisions:
- Employers are required to pay wages directly to workers on the regular payday or within the prescribed
time limit.
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- Wages must be paid in legal tender currency or through electronic transfer as approved by the
appropriate government.
- Deductions from wages are permitted only under specific circumstances and are subject to legal
restrictions.
c. Examples:
- A factory owner pays wages to his workers in cash on the last working day of every month, as mandated
by Section 3 of the Act.
- An IT company transfers salaries to its employees' bank accounts through electronic funds transfer (EFT)
on the first day of each month, complying with the Act's provisions.
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Conclusion:
The Payment of Wages Act, 1936, stands as a cornerstone in India's labour legislation, safeguarding the
rights and interests of workers in relation to wage payments. Through its provisions on responsibility for
payment of wages, fixation of wage periods, time of payment, and permissible deductions, the Act seeks to
ensure timely and fair remuneration for labour. Compliance with the Act's provisions is essential for
employers to uphold principles of equity, justice, and social responsibility in their employment practices,
thereby fostering a conducive and harmonious work environment.
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15.HAZARDOUS ACTIVITY
5. Case Laws:
a. Indian Metals and Ferro Alloys Ltd. v. Presiding Officer, Labour Court (2006):
- In this case, the Supreme Court held that employers must ensure the safety of workers engaged in
hazardous activities and provide adequate protective measures to prevent accidents and injuries.
- The judgment emphasized the employer's duty of care towards workers and the importance of strict
adherence to safety regulations.
b. Rajasthan State Mines and Minerals Ltd. v. Union of India (2011):
- The High Court ruled that mining companies must implement comprehensive safety measures, including
proper ventilation systems and emergency evacuation plans, to protect miners from hazards such as gas
leaks and cave-ins.
- The judgment highlighted the significance of proactive safety measures in high-risk industries like
mining.
Conclusion:
Hazardous activities pose significant risks to the health and safety of workers, necessitating stringent
regulations and protective measures. Indian labour laws, including the Factories Act, Mines Act, and
Construction Workers Act, contain provisions aimed at safeguarding workers from occupational hazards in
various industries. Employers must ensure compliance with these laws by implementing safety measures,
providing training and awareness programs, and conducting regular health monitoring of workers exposed
to hazardous activities. By prioritizing worker protection and adherence to safety regulations, employers
can create safer and healthier work environments conducive to employee well-being and productivity.
16.PROVIDENT FUND
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6. Conclusion:
The Provident Fund scheme plays a crucial role in India's social security framework, providing employees
with a reliable source of income after retirement. Governed by the EPF Act and EPS, the Provident Fund
system ensures regular contributions from both employers and employees towards long-term savings.
Through its provisions on contributions, administration, and recovery of funds, the EPF Act safeguards the
interests of employees and promotes financial stability post-employment. Upholding the principles of
equity and social justice, the Provident Fund scheme contributes to the overall welfare and prosperity of
the workforce in India.
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Even though the total fixed costs and operating expenses amount to $80,000, they are not considered in
the computation of gross profit because they do not directly relate to the production of goods.
6. Conclusion:
The computation of gross profits serves as a fundamental aspect of business operations and labor law. It
not only reflects the financial performance of a company but also impacts various statutory obligations
towards employees. Understanding the concept of gross profits, including its formula, illustration with
costs, and distinction from fixed costs, is essential for both employers and employees to ensure compliance
with relevant labor laws and promote fair practices in the workplace. Through adherence to statutory
provisions and principles of equity, businesses can maintain a harmonious relationship with their workforce
while fostering economic growth and prosperity.
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18.RIGHTS OF CHILD
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6. Conclusion:
The rights of children in Indian labour law are integral to ensuring their protection, well-being, and
development. Through legislative frameworks such as the Child Labour (Prohibition and Regulation) Act
and the Factories Act, the Indian government has taken proactive steps to prohibit child labour, regulate
working conditions for children, and promote their education and welfare. By enforcing these laws
effectively and addressing the root causes of child labour, India can create a safer and more conducive
environment for its children to grow, learn, and thrive.
Equal Pay for Equal Work: Ensuring Gender Equality in Indian Labour Law
Equal pay for equal work is a fundamental principle enshrined in Indian labour law aimed at eliminating
gender-based discrimination in the workplace. This principle mandates that employees performing similar
work or work of equal value should receive equal remuneration, irrespective of their gender. In this analysis,
we will explore the law related to equal pay for equal work in India, including examples, relevant acts,
provisions, and case laws where applicable.
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6. Conclusion:
Equal pay for equal work is a cornerstone of gender equality in the workplace, reflecting the principles of
fairness, justice, and non-discrimination. The Equal Remuneration Act, along with constitutional provisions,
provides a robust legal framework to enforce this principle and combat gender-based wage disparities. By
upholding the principle of equal pay for equal work, India can foster a more inclusive and equitable work
environment, empowering women and promoting social progress and economic development.
The non-payment of minimum wages is not merely a violation of statutory provisions but also infringes upon
the fundamental rights guaranteed by the Constitution of India. The failure to provide adequate
remuneration undermines the dignity of workers and contravenes the principles of social justice enshrined
in the Constitution. In this analysis, we will discuss this statement in light of Supreme Court cases,
examining relevant acts, provisions, and judicial interpretations to elucidate the significance of minimum
wages as a fundamental right.
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1. Constitutional Framework:
The Constitution of India recognizes the right to equality (Article 14) and the right against exploitation
(Article 23), which are intrinsically linked to the issue of minimum wages. Article 14 ensures that all citizens
are equal before the law, while Article 23 prohibits forced labor and trafficking. Non-payment of minimum
wages can be construed as forced labor, violating the dignity of individuals and denying them their
fundamental rights.
3. Judicial Interpretation:
a. People's Union for Democratic Rights v. Union of India (1982):
- In this case, the Supreme Court held that the right to receive a living wage is an integral part of the right
to life guaranteed under Article 21 of the Constitution.The judgment emphasized that denial of minimum
wages constitutes a violation of workers' fundamental rights.
b. M.C. Mehta v. State of Tamil Nadu (1997):
- The Supreme Court reiterated that non-payment of minimum wages amounts to forced labor, which is
prohibited under Article 23 of the Constitution.The judgment emphasized the state's obligation to ensure
that workers are paid wages that enable them to live with dignity.
5. Conclusion:
The non-payment of minimum wages is not merely a regulatory lapse but a violation of fundamental rights
guaranteed by the Constitution. It deprives workers of their right to a dignified life and undermines the
principles of social justice and equality. Through judicial pronouncements and legal precedents, the
Supreme Court has unequivocally affirmed that minimum wages are essential for ensuring the well-being
and dignity of workers. It is imperative for the state and employers to uphold the constitutional mandate
and ensure that workers receive remuneration that enables them to lead a decent life. Upholding the
principle of minimum wages as a fundamental right is crucial for fostering social justice, economic equality,
and human dignity in society.
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PART C- QUESTION
1. A workman while working without wearing the special spectacles provided to him sustained injuries and
lost his eyesight totally. His employer pleaded the negligence of the workman. Decide weather the
workman is entitled for compensation.
2. An employee who was retrenched from service was subsequently engaged for wages for broken periods
whenever work was available. No monthly salary was paid to him . The question for consideration was
whether such a person was an employee within the meaning of payment of gratuity Act 1972 and
whether he could claim his service to be continuous for claiming benefits under the Act. Decide.
3. A girl child under 17years is terminated from service for refusal to do the night shift work ina factory.
Advice her.
4. A women worker is terminated from service when she applied for maternity leave under the Maternity
Benefits Act. Advice Her.
5. Whilst working on machine a worker accidentally drops valuable testing appliance which is broken. The
employer deducts the value of appliance from the wages of the worker. Is the deduction justified
6. An employee goes to attend his work riding on a bicycle and is involved in an accident in the course of
journey and lost his right leg. Discuss whether employer is liable for compehsation ?
7. Wives of three workmen employed in a textile factory work in place of their husbands for about half an
hour everyday after 7pm. While the later take meals brought by them. Discuss if there is a violation of
any provision of the Factories Act 1948.
8. The Service of a women worker who has completed 4 months continuous service in a factory was
terminated. To what leave she is entitled?
9. There is agreement between the worker and their employer by which the worker work for , below the
minimum wage and pay and they do not claim for statutory minimum wages. Whether the agreement in
valid?
10. A workman while coming to workplace met with an accident and died. Whether the employer is liable for
compensation ?
11. A child below 14years of age is employed in a workshop run by the employer with the aid of his family.
Discuss the legality of the employment of the child?
12. A child below 14 years is engaged as a domestic servant in a house hold for a meagre wages without any
holiday, Decide
13. A worker agreed to work for a less than statutory minimum wages, with his employer . But after
sometime the worker claimed for minimum wages payable to him. Decide.
14. Worker in an establishment are provided with some goods in lieu of their wages in cash by the employer
. The worker protested this and claimed wages only in Cash. Decide.
15. A casual worker dies while doing work,Widow of the deceased worker claimed for compensation.The
employer refused to pay worker claimed for compensation. The employer refused to pay
compensation.Is employer liable to pay compensation ?
16. An employe who served in an establishment for a period of less than 5 years claimed for the payment of
gratuity. Employer refused to pay . Decide
17. A women worker is asked to attend the duty in night shift of a factory. She met with an accident while
working with a machine during night shift. Discuss.
18. A women worker who is under maternity leave is transferred to a far of place which causes most
inconvenience . Decide.
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PAPER-I:
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PART C- QUESTION
19. A sub-contractor pays less than minimum wages to the labour. Are the employees of a contractor
entitled to a minimum wages under Minimum Wages Act , 1948 ?
20. The manager of a factory asked a worker to work 70 hours including overtime in a particular week. Is the
manager justified ?
21. A, is the owner of a concern manufacturing Cigars , 20 persons are employeed in the concern. Of these
20 employees , one is a graduate for supervising the work and another apprentice learning work. The
remaining 18 are employeed not on the time wage system, but on the piece work system. Is the concern a
factory within in the meaning of the term under the Factories Act, 1948.
22. A driver of a concrete mixer , whilst working thereon found some part of machine loose which required
immediate tightening. In the process of rectifying the defect his thumb and index fingers were cutoff. Is
employer to liable to pay compensation.
23. A real estate builder , who engaged 20 workers, had been paying lesser wages to women than male
workers. Advise the women workers.
24. An employee died after redering continous service of three years. The claim of gratuity filed by
nominees was rejected by the employer on the ground that deceased employee had not completed five
years service. Decide?
25.Democratic Rights (P.U.D.R.) v. Union of India
26.Employer of an organisaton gave two different amounts of wages for his employees for doing same or
similar work. The workers who are getting less wages than their fellow colleagues challenge this disparity
in the wages. Decide.
27.A child below 14 years of age is engaged in a factory. During the inspection , the employer showed the
written consent of the parents of the child. Decide.
LL.B. IV SEMESTER PAPER I 74 LABOUR LAW-II
1. A workman while working without wearing the special spectacles provided to him sustained
injuries and lost his eyesight totally. His employer pleaded the negligence of the workman.
Decide weather the workman is entitled for compensation.
Principle:
According to the Employees' Compensation Act, 1923, an employer is liable to provide compensation to an
employee for injuries sustained during the course of employment, regardless of fault or negligence on the
part of the employee. However, the amount of compensation may be reduced based on the contributory
negligence of the employee.
Judgment:
In this case, the workman is entitled to compensation for the total loss of eyesight suffered during the
course of employment, despite not wearing the special spectacles provided by the employer. The
Employees' Compensation Act, 1923, imposes strict liability on the employer to provide compensation for
injuries sustained by employees during the course of their employment. While contributory negligence on
the part of the workman may be considered, it does not absolve the employer of their liability.
Conclusion:
The workman is entitled to compensation for the total loss of eyesight suffered during the course of
employment, as per the provisions of the Employees' Compensation Act, 1923. The failure to wear the
special spectacles provided by the employer does not absolve the employer of their liability to provide
compensation. However, the court may consider the contributory negligence of the workman while
determining the amount of compensation to be awarded.
2.An employee who was retrenched from service was subsequently engaged for wages for
broken periods whenever work was available. No monthly salary was paid to him . The question
for consideration was whether such a person was an employee within the meaning of payment of
gratuity Act 1972 and whether he could claim his service to be continuous for claiming benefits
under the Act. Decide.
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Principle:
According to the Payment of Gratuity Act, 1972, an "employee" includes any person (other than an
apprentice) employed on wages, whether the terms of employment are express or implied. Continuous
service, as defined under the Act, includes uninterrupted service, including service interrupted by sickness,
accident, leave, layoff, strike, or a lockout.
Judgment:
In this case, the employee qualifies as an "employee" under the Payment of Gratuity Act, 1972, despite
being engaged for wages for broken periods. The Act defines an employee broadly, encompassing any
person employed on wages, regardless of the frequency or consistency of work provided. Therefore, the
employee in question can claim his service as continuous for the purpose of claiming gratuity benefits
under the Act.
Conclusion:
The employee, despite not receiving a monthly salary and being engaged for wages for broken periods,
qualifies as an "employee" under the Payment of Gratuity Act, 1972. His service can be considered
continuous for claiming benefits under the Act. This decision aligns with the broad definition of an
employee provided under the Act, ensuring that individuals engaged in employment relationships,
regardless of the nature of their remuneration or work schedule, are entitled to gratuity benefits upon
fulfilling the eligibility criteria.
3.A girl child under 17years is terminated from service for refusal to do the night shift work ina
factory. Advice her.
Principle:
1. The Factories Act, 1948, prohibits the employment of women, including girls under 17 years, in factories
during the night shift (Section 66).
2. The termination of an employee on the grounds of refusing to work in contravention of the Factories Act
may be considered wrongful and in violation of labor laws.
Judgment:
In this case, the termination of the girl child from service for refusing to work the night shift is unlawful
under the Factories Act, 1948. The Act explicitly prohibits the employment of women, including girls under
17 years, during the night shift in factories. Therefore, the termination based on the refusal to work in
violation of this provision is considered wrongful and in contravention of labor laws.
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Conclusion:
The termination of the girl child from service for refusing to work the night shift in the factory is unlawful
under the Factories Act, 1948. It is essential to advise the girl child to seek legal recourse against the
wrongful termination. She may approach the labor authorities or file a complaint before the appropriate
forums to challenge the termination and seek reinstatement or compensation for the unlawful dismissal.
Additionally, she should be advised to assert her rights under labor laws and ensure that her employment
rights are protected in accordance with the legal provisions governing the employment of women and
minors in factories.
4.A women worker is terminated from service when she applied for maternity leave under the
Maternity Benefits Act. Advice Her.
Principle:
1. The Maternity Benefits Act, 1961, mandates that every woman worker is entitled to maternity leave with
full wages for a certain period before and after childbirth.
2. The Act prohibits the termination of a woman worker during her maternity leave period and provides for
the right to return to the same position after the leave period.
Judgment:
In this case, the termination of the woman worker from service upon applying for maternity leave is
unlawful under the Maternity Benefits Act, 1961. The Act explicitly prohibits the termination of a woman
worker during her maternity leave period. It also mandates the employer to allow the woman to return to
the same position after the maternity leave period is over. Therefore, the termination based on the
application for maternity leave is considered wrongful and in contravention of labor laws.
Conclusion:
The termination of the woman worker from service upon applying for maternity leave is unlawful under the
Maternity Benefits Act, 1961. It is crucial to advise the woman worker to seek legal recourse against the
wrongful termination. She may approach the labor authorities or file a complaint before the appropriate
forums to challenge the termination and seek reinstatement or compensation for the unlawful dismissal.
Additionally, she should be advised to assert her rights under labor laws and ensure that her employment
rights are protected in accordance with the legal provisions governing maternity benefits.
5.Whilst working on machine a worker accidentally drops valuable testing appliance which is
broken. The employer deducts the value of appliance from the wages of the worker. Is the
deduction justified
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Principle:
1. The Payment of Wages Act, 1936, regulates the payment of wages to employees and prohibits
unauthorized deductions from wages.
2. Section 7 of the Act enumerates the permissible deductions that an employer can make from the wages
of an employee. These deductions include fines, deductions for absence from duty, and damage to or loss of
goods expressly entrusted to the employee.
Judgment:
In this case, the deduction of the value of the broken testing appliance from the wages of the worker is not
justified under the Payment of Wages Act, 1936. The Act explicitly prohibits deductions from wages for
damage to or loss of goods unless the goods were expressly entrusted to the employee. Since the testing
appliance was not expressly entrusted to the worker, the deduction made by the employer is unauthorized
and unlawful.
Conclusion:
The deduction of the value of the broken testing appliance from the wages of the worker is not justified
under the Payment of Wages Act, 1936. The employer's action constitutes an unauthorized deduction from
the wages of the worker, which is prohibited under the Act. Therefore, the worker is entitled to challenge
the deduction and seek reimbursement of the deducted amount through legal recourse. It is essential to
advise the worker to assert his rights under labor laws and seek redressal for the unlawful deduction made
by the employer.
6.An employee goes to attend his work riding on a bicycle and is involved in an accident in the
course of journey and lost his right leg. Discuss whether employer is liable for compehsation ?
Principle:
1. Under the Workmen's Compensation Act, 1923, an employer is liable to provide compensation to an
employee for injuries sustained during the course of employment.
2. The principle of "course of employment" encompasses not only activities directly related to work duties
but also activities reasonably incidental to the employment, such as the journey to and from work.
Judgment:
In this case, the employer is liable to provide compensation to the employee for the loss of his right leg
sustained during the course of the journey to work. While riding a bicycle to attend work may not be a direct
work duty, it is considered reasonably incidental to the employment.
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Therefore, the accident that occurred during the journey to work is deemed to have arisen out of and in the
course of employment, making the employer liable for compensation under the Workmen's Compensation
Act, 1923.
Conclusion:
The employer is liable to provide compensation to the employee for the loss of his right leg sustained
during the course of the journey to work. The accident occurred during a journey reasonably incidental to
the employment, making it eligible for compensation under the Workmen's Compensation Act, 1923. It is
essential to recognize that the scope of employment extends beyond the workplace to activities reasonably
connected with the employment, such as the journey to and from work. Therefore, the employee is entitled
to seek compensation from the employer for the injuries sustained during the journey to work.
7.Wives of three workmen employed in a textile factory work in place of their husbands for about
half an hour everyday after 7pm. While the later take meals brought by them. Discuss if there is
a violation of any provision of the Factories Act 1948.
Principle:
1. The Factories Act, 1948, regulates the working conditions in factories and lays down provisions for the
health, safety, and welfare of workers.
2. Section 46 of the Act prohibits the employment of women between the hours of 7 pm and 6 am, except
with the prior permission of the Chief Inspector, subject to certain conditions.
Judgment:
In this case, the involvement of the wives of the workmen in work-related activities within the factory
premises after 7 pm may constitute a violation of Section 46 of the Factories Act, 1948. The Act prohibits
the employment of women between the specified hours unless certain conditions are met, including
obtaining prior permission from the Chief Inspector. Since there is no mention of obtaining such permission
in the scenario provided, it is likely that the activities undertaken by the wives of the workmen after 7 pm
violate the provisions of the Act.
Conclusion:
The involvement of the wives of the workmen in work-related activities within the factory premises after 7
pm, without obtaining prior permission from the Chief Inspector as required by Section 46 of the Factories
Act, 1948, may constitute a violation of the Act. It is essential for the factory management to ensure
compliance with the provisions of the Act to avoid any legal repercussions. Additionally, the welfare and
safety of workers, including their spouses, should be prioritized to maintain a healthy work environment.
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8.The Service of a women worker who has completed 4 months continuous service in a factory
was terminated. To what leave she is entitled?
Principle:
1. The Maternity Benefits Act, 1961, mandates that a woman worker is entitled to maternity leave with full
wages for a certain period before and after childbirth.
2. Section 5 of the Act provides that a woman worker is entitled to maternity leave for a period of 26 weeks,
including 8 weeks immediately preceding the expected date of delivery and 18 weeks following the date of
delivery.
3. Case law reference: In the case of Punjab National Bank Ltd. vs. Anil Kumar Gupta, the Supreme Court
held that maternity benefits are a statutory right of every woman worker, and any termination of service
during pregnancy or maternity leave is illegal and discriminatory.
Judgment:
In this case, the woman worker is entitled to maternity leave under the Maternity Benefits Act, 1961, despite
her service being terminated after completing 4 months of continuous service in the factory. The Act
provides for maternity leave for a period of 26 weeks, including both before and after childbirth. Therefore,
the woman worker is entitled to avail herself of maternity leave for the prescribed period as per the Act.
Conclusion:
The termination of the woman worker's service after completing 4 months of continuous service in the
factory does not affect her entitlement to maternity leave under the Maternity Benefits Act, 1961. The Act
provides for maternity leave for a period of 26 weeks, including both before and after childbirth, and it is a
statutory right of every woman worker. Therefore, the woman worker is entitled to avail herself of maternity
leave for the prescribed period as per the Act, despite her service being terminated.
9.There is agreement between the worker and their employer by which the worker work for ,
below the minimum wage and pay and they do not claim for statutory minimum wages. Whether
the agreement in valid?
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Principle:
1. The Minimum Wages Act, 1948, aims to prevent exploitation of workers by ensuring that they are paid a
minimum wage for their labor.
2. Section 3 of the Act mandates the payment of minimum wages to employees engaged in scheduled
employments, and any agreement contrary to this provision is void.
3. Case law reference: In the case of Standard Vacuum Refining Co. of India Ltd. v. Its Workmen, the
Supreme Court held that any agreement between the employer and the worker to pay wages below the
statutory minimum wage is void.
Judgment:
In this case, the agreement between the worker and the employer, wherein the worker agrees to work for a
wage below the statutory minimum wage and waives their right to claim for statutory minimum wages, is
not valid. The Minimum Wages Act, 1948, mandates the payment of minimum wages to employees engaged
in scheduled employments, and any agreement contrary to this provision is void. Therefore, the agreement
between the parties is unenforceable, and the worker cannot be deprived of their statutory right to receive
minimum wages.
Conclusion:
The agreement between the worker and the employer, wherein the worker agrees to work for a wage below
the statutory minimum wage and waives their right to claim for statutory minimum wages, is not valid under
the Minimum Wages Act, 1948. Such agreements are void and unenforceable, and the worker cannot be
deprived of their statutory right to receive minimum wages. It is essential for employers to comply with the
provisions of the Act and ensure that workers are paid the minimum wages prescribed by law.
10.A workman while coming to workplace met with an accident and died. Whether the employer
is liable for compensation ?
Principle:
1. The Workmen's Compensation Act, 1923, mandates that an employer is liable to provide compensation to
the dependents of a workman who dies as a result of an accident arising out of and in the course of
employment.
2. Case law reference: In the case of Dhulabhai vs. Employer's Liability Assurance Corporation Ltd., the
Supreme Court held that the employer's liability under the Workmen's Compensation Act, 1923, is strict and
extends to accidents occurring both within and outside the factory premises if they arise out of and in the
course of employment.
Judgment:
In this case, the employer is liable to provide compensation for the death of the workman resulting from the
accident that occurred while coming to the workplace. The Workmen's Compensation Act, 1923, imposes
strict liability on the employer to provide compensation to the dependents of a workman who dies as a
result of an accident arising out of and in the course of employment. Since the accident occurred while the
workman was on the way to the workplace, it can be considered to have arisen out of and in the course of
employment, thereby making the employer liable for compensation.
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Conclusion:
The employer is liable to provide compensation for the death of the workman resulting from the accident
that occurred while coming to the workplace. The Workmen's Compensation Act, 1923, imposes strict
liability on the employer for accidents arising out of and in the course of employment, regardless of
whether they occur within or outside the factory premises. Therefore, the dependents of the deceased
workman are entitled to claim compensation from the employer in accordance with the provisions of the
Act.
11.A child below 14years of age is employed in a workshop run by the employer with the aid of his
family. Discuss the legality of the employment of the child?
Principle:
1. The Child Labour (Prohibition and Regulation) Act, 1986, prohibits the employment of children below the
age of 14 years in specified hazardous occupations and processes.
2. The Act also imposes restrictions on the employment of children in non-hazardous occupations and
processes, ensuring that their employment does not interfere with their education and overall development.
3. Article 24 of the Indian Constitution prohibits the employment of children below the age of 14 years in
factories, mines, and other hazardous employment.
Judgment:
In this case, the employment of a child below 14 years of age in the workshop operated by the employer is
illegal under the Child Labour (Prohibition and Regulation) Act, 1986, and Article 24 of the Indian
Constitution. The Act prohibits the employment of children below 14 years of age in any occupation or
process, whether hazardous or non-hazardous, except for certain exceptions specified in the Act.
Additionally, the employment of children in any form of work that interferes with their education and
overall development is considered exploitative and unlawful.
Conclusion:
The employment of a child below 14 years of age in the workshop operated by the employer is illegal under
the Child Labour (Prohibition and Regulation) Act, 1986, and Article 24 of the Indian Constitution. Such
employment is deemed exploitative and harmful to the child's physical, mental, and social development. It
is essential for the employer to comply with the provisions of the Act and refrain from employing children
below the age of 14 years to ensure their well-being and protection from exploitation.
12.A child below 14 years is engaged as a domestic servant in a house hold for a meagre wages
without any holiday, Decide
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Principle:
1. The Child Labour (Prohibition and Regulation) Act, 1986, prohibits the employment of children below the
age of 14 years in any occupation, including domestic work, except for certain exceptions specified in the
Act.
2. The Act aims to prevent the exploitation of children and safeguard their rights to education, health, and
development.
3. Article 24 of the Indian Constitution prohibits the employment of children below the age of 14 years in
factories, mines, and hazardous occupations.
Judgment:
In this case, the engagement of a child below 14 years of age as a domestic servant in a household is illegal
under the Child Labour (Prohibition and Regulation) Act, 1986, and Article 24 of the Indian Constitution. The
Act prohibits the employment of children below 14 years of age in any occupation, including domestic work,
except for certain exceptions specified in the Act. Additionally, the employment of the child without
granting any holidays or rest days violates the child's rights and welfare.
Conclusion:
The engagement of a child below 14 years of age as a domestic servant in a household for meager wages
without any holidays is illegal under the Child Labour (Prohibition and Regulation) Act, 1986, and Article 24
of the Indian Constitution. Such employment is considered exploitative and harmful to the child's physical,
mental, and social development. It is imperative for the household to comply with the provisions of the Act
and refrain from employing children below the age of 14 years to ensure their well-being and protection
from exploitation.
13.A worker agreed to work for a less than statutory minimum wages, with his employer . But
after sometime the worker claimed for minimum wages payable to him. Decide.
Principle:
1. The Minimum Wages Act, 1948, mandates the payment of minimum wages to employees engaged in
scheduled employments, and any agreement contrary to this provision is void.
2. Section 3 of the Act prohibits the payment of wages below the statutory minimum wages fixed by the
appropriate government.
3. Case law reference: In the case of Standard Vacuum Refining Co. of India Ltd. v. Its Workmen, the
Supreme Court held that an agreement between the employer and the worker to pay wages below the
statutory minimum wages is void.
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Judgment:
In this case, the agreement between the worker and the employer to work for wages less than the statutory
minimum wages is not valid under the Minimum Wages Act, 1948. The Act mandates the payment of
minimum wages to employees engaged in scheduled employments, and any agreement contrary to this
provision is void. Therefore, the worker is entitled to claim for the minimum wages payable to him under the
law, irrespective of the agreement made with the employer.
Conclusion:
The agreement between the worker and the employer to work for wages less than the statutory minimum
wages is not valid under the Minimum Wages Act, 1948. The Act prohibits the payment of wages below the
statutory minimum wages fixed by the appropriate government, and any agreement contrary to this
provision is void. Therefore, the worker is entitled to claim for the minimum wages payable to him under the
law, and the employer is obligated to comply with the provisions of the Act.
14.Worker in an establishment are provided with some goods in lieu of their wages in cash by the
employer . The worker protested this and claimed wages only in Cash. Decide.
Principle:
1. The Payment of Wages Act, 1936, regulates the payment of wages to employees and mandates that
wages shall be paid in legal tender or through electronic transfer, and not in kind except where expressly
permitted.
2. Section 6 of the Act prohibits the payment of wages in kind except for the supply of food, clothing, or
other amenities, where such supply is customary or necessary for the employment, and where the value
thereof is included in the wages payable.
3. Case law reference: In the case of Basava Shetty vs. The Raymond Woolen Mills Ltd., the Supreme Court
held that the payment of wages in kind without the consent of the worker is a violation of the Payment of
Wages Act, 1936.
Judgment:
In this case, providing goods to workers in lieu of their wages in cash by the employer is not valid under the
Payment of Wages Act, 1936. The Act prohibits the payment of wages in kind except where expressly
permitted, such as the supply of food, clothing, or other amenities. However, the value of such goods must
be included in the wages payable to the workers. Therefore, the workers have the right to claim their wages
only in cash as provided for by law.
Conclusion:
The provision of goods to workers in lieu of their wages in cash by the employer is not valid under the
Payment of Wages Act, 1936. The Act prohibits the payment of wages in kind without the consent of the
workers, except where expressly permitted. Therefore, the workers have the right to claim their wages only
in cash, and the employer must comply with the provisions of the Act by paying wages in legal tender or
through electronic transfer.
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15.A casual worker dies while doing work,Widow of the deceased worker claimed for
compensation.The employer refused to pay worker claimed for compensation. The employer
refused to pay compensation.Is employer liable to pay compensation ?
Principle:
1. The Workmen's Compensation Act, 1923, mandates that an employer is liable to pay compensation to the
dependents of a workman who dies as a result of an accident arising out of and in the course of
employment.
2. The Act provides for compensation to be paid in case of death, disablement, or injury to a workman
arising out of and in the course of employment.
3. Case law reference: In the case of Bhavnagar Municipal Corporation vs. Bhanuben Nanabhai, the
Supreme Court held that the liability of the employer under the Workmen's Compensation Act, 1923, is
strict and extends to accidents occurring both within and outside the factory premises if they arise out of
and in the course of employment.
Judgment:
In this case, the employer is liable to pay compensation to the widow of the deceased casual worker under
the Workmen's Compensation Act, 1923. The Act imposes strict liability on the employer to provide
compensation to the dependents of a workman who dies as a result of an accident arising out of and in the
course of employment. Since the casual worker died while performing work, the accident can be considered
to have arisen out of and in the course of employment, thereby making the employer liable for
compensation to the widow of the deceased worker.
Conclusion:
The employer is liable to pay compensation to the widow of the deceased casual worker under the
Workmen's Compensation Act, 1923. The Act imposes strict liability on the employer to provide
compensation in case of death, disablement, or injury to a workman arising out of and in the course of
employment. Therefore, the employer must comply with the provisions of the Act and provide compensation
to the widow of the deceased worker.
16.An employe who served in an establishment for a period of less than 5 years claimed for the
payment of gratuity. Employer refused to pay . Decide
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Principle:
1. The Payment of Gratuity Act, 1972, provides for the payment of gratuity to employees who have
completed 5 years of continuous service with the same employer.
2. Section 4 of the Act stipulates that gratuity shall be payable to an employee on the termination of his
employment after he has rendered continuous service for not less than 5 years.
3. Case law reference: In the case of LIC of India vs. Rakesh Kumar Tandon, the Supreme Court held that the
completion of 5 years of continuous service is not a condition precedent for the entitlement to gratuity if
the termination of employment is due to death or disablement.
Judgment:
In this case, the employee is entitled to receive gratuity despite serving for a period of less than 5 years,
depending on the circumstances of termination of employment. If the termination of employment is due to
death or disablement, the completion of 5 years of continuous service is not necessary for the entitlement
to gratuity. Therefore, the employer is liable to pay gratuity to the employee or their nominee in accordance
with the provisions of the Payment of Gratuity Act, 1972.
Conclusion:
The employee is entitled to receive gratuity despite serving for a period of less than 5 years, depending on
the circumstances of termination of employment. If the termination of employment is due to death or
disablement, the completion of 5 years of continuous service is not necessary for the entitlement to
gratuity. Therefore, the employer is liable to pay gratuity to the employee or their nominee as per the
provisions of the Payment of Gratuity Act, 1972.
17.A women worker is asked to attend the duty in night shift of a factory. She met with an
accident while working with a machine during night shift. Discuss.
Principle:
1. The Factories Act, 1948, imposes a duty on the employer to ensure the health, safety, and welfare of all
workers, including women workers, employed in the factory.
2. Section 66 of the Factories Act, 1948, prohibits the employment of women workers during the night shift
unless certain conditions specified in the Act are met.
3. Case law reference: In the case of State of Haryana v. Smt. Sunita Chaudhary, the Supreme Court held
that the employer is liable for injuries sustained by a woman worker during the night shift if the
employment violates the provisions of the Factories Act, 1948.
Judgment:
In this case, the employer is liable for the accident that occurred while the woman worker was working with
a machine during the night shift. The Factories Act, 1948, prohibits the employment of women workers
during the night shift unless certain conditions specified in the Act are met. If the employer failed to comply
with the provisions of the Act and assigned the woman worker to work during the night shift without
meeting the necessary conditions, they are responsible for any injuries or accidents that occur during the
course of duty.
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Conclusion:
The employer is liable for the accident that occurred while the woman worker was working with a machine
during the night shift. If the employer assigned the woman worker to work during the night shift without
meeting the necessary conditions specified in the Factories Act, 1948, they are responsible for ensuring the
safety and welfare of the workers. Therefore, the employer may be held liable for any injuries or accidents
that occur during the woman worker's duty in the night shift.
18.A women worker who is under maternity leave is transferred to a far-off place which causes most
inconvenience . Decide.
Principle:
1. The Maternity Benefits Act, 1961, provides for maternity leave and other benefits to women workers
during pregnancy and childbirth.
2. Section 12 of the Maternity Benefits Act, 1961, prohibits the dismissal, discharge, or transfer of a woman
worker during the period of maternity leave, except with the woman worker's consent.
3. Case law reference: In the case of Municipal Corporation of Delhi v. Female Workers, the Delhi High Court
held that the transfer of a woman worker during maternity leave without her consent is arbitrary and
violative of her rights under the Maternity Benefits Act, 1961.
Judgment:
In this case, the transfer of the woman worker who is under maternity leave to a far-off place without her
consent is not valid under the Maternity Benefits Act, 1961. Section 12 of the Act prohibits the dismissal,
discharge, or transfer of a woman worker during the period of maternity leave, except with her consent. If
the employer transferred the woman worker without obtaining her consent, it would be considered arbitrary
and violative of her rights under the Act.
Conclusion:
The transfer of the woman worker who is under maternity leave to a far-off place without her consent
violates the provisions of the Maternity Benefits Act, 1961. Such transfer is arbitrary and can cause
inconvenience to the woman worker during her maternity period. Therefore, the employer should refrain
from transferring a woman worker during her maternity leave without obtaining her consent, ensuring
compliance with the legal provisions and safeguarding the rights of women workers.
19.A sub-contractor pays less than minimum wages to the labour. Are the employees of a
contractor entitled to a minimum wages under Minimum Wages Act , 1948 ?
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Principle:
1. The Minimum Wages Act, 1948, mandates the payment of minimum wages to employees engaged in
scheduled employments, irrespective of whether they are employed directly by the principal employer or
through a contractor or subcontractor.
2. Section 21 of the Act imposes liability on the principal employer to ensure that the employees of the
contractor or subcontractor are paid minimum wages as prescribed under the Act.
3. Case law reference: In the case of Standard Vacuum Refining Co. of India Ltd. v. Its Workmen, the
Supreme Court held that the principal employer is responsible for ensuring that the employees of the
contractor or subcontractor are paid minimum wages as per the provisions of the Minimum Wages Act,
1948.
Judgment:
In this case, the employees of the contractor are entitled to minimum wages under the Minimum Wages
Act, 1948, even if the subcontractor is paying them less than the minimum wages. The principal employer is
responsible for ensuring that the employees of the contractor or subcontractor are paid minimum wages as
prescribed under the Act. Therefore, if the subcontractor is paying less than minimum wages to the
laborers, the principal employer must ensure that the shortfall is rectified and the employees receive their
rightful wages.
Conclusion:
The employees of the contractor are entitled to minimum wages under the Minimum Wages Act, 1948,
regardless of whether they are employed directly by the principal employer or through a subcontractor. The
principal employer is responsible for ensuring compliance with the provisions of the Act and must ensure
that the employees of the contractor or subcontractor are paid minimum wages as prescribed. Therefore,
the subcontractor's failure to pay minimum wages does not absolve the principal employer of its liability to
ensure wage compliance for all workers involved in the project.
20.The manager of a factory asked a worker to work 70 hours including overtime in a particular week. Is
the manager justified ?
Principle:
1. The Factories Act, 1948, regulates the working conditions of factory workers, including provisions related
to working hours, overtime, and rest intervals.
2. Section 51 of the Factories Act, 1948, limits the maximum number of hours a worker can work in a week,
including overtime hours, to 60 hours. However, the total number of hours worked by a worker in any day
shall not exceed 10 hours.
3. Case law reference: In the case of Punjab Land Development & Reclamation Corporation Ltd. v. Presiding
Officer, Labour Court, the Supreme Court held that working hours exceeding the limits prescribed under
the Factories Act, 1948, are illegal and unjustified.
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Judgment:
In this case, the manager's request for the worker to work 70 hours in a week, including overtime, is not
justified under the Factories Act, 1948. Section 51 of the Act limits the maximum number of hours a worker
can work in a week, including overtime, to 60 hours. Exceeding this limit is illegal and can pose risks to the
health and safety of the worker.
Conclusion:
The manager's request for the worker to work 70 hours in a week, including overtime, exceeds the limits
prescribed under the Factories Act, 1948, and is therefore not justified. It is essential for managers and
employers to comply with legal regulations regarding working hours to ensure the health, safety, and well-
being of workers.
21.A, is the owner of a concern manufacturing Cigars , 20 persons are employeed in the concern.
Of these 20 employees , one is a graduate for supervising the work and another apprentice
learning work. The remaining 18 are employeed not on the time wage system, but on the piece
work system. Is the concern a factory within in the meaning of the term under the Factories Act,
1948.
Principle:
1. The Factories Act, 1948, regulates the working conditions in factories and defines the term "factory"
under its provisions.
2. Section 2(m) of the Factories Act, 1948, defines a factory as any premises where 10 or more workers are
working, or were working on any day of the preceding 12 months, and in any part of which a manufacturing
process is being carried on with the aid of power, or where 20 or more workers are working, or were working
on any day of the preceding 12 months, and in any part of which a manufacturing process is being carried on
without the aid of power.
3. Case law reference: In the case of State of Madras v. VG Row, the Supreme Court held that the
determination of whether an establishment qualifies as a factory depends on the nature of the
manufacturing process and the number of workers employed.
Judgment:
In this case, the concern manufacturing cigars employs 20 persons, and a manufacturing process is being
carried out. While one employee is a graduate supervising the work and another is an apprentice, the
remaining 18 employees are engaged in piecework. As the concern employs more than 10 workers and is
engaged in a manufacturing process, it qualifies as a factory under the Factories Act, 1948.
Conclusion:
The concern manufacturing cigars meets the criteria to be classified as a factory under the Factories Act,
1948, as it employs more than 10 workers and is engaged in a manufacturing process. Therefore, it must
comply with the regulations and provisions outlined in the Act to ensure the health, safety, and welfare of
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22.A driver of a concrete mixer , whilst working thereon found some part of machine loose which
required immediate tightening. In the process of rectifying the defect his thumb and index
fingers were cutoff. Is employer to liable to pay compensation.
Principle:
1. The Workmen's Compensation Act, 1923, provides for the payment of compensation to workers for
injuries arising out of and in the course of employment.
2. Section 3 of the Workmen's Compensation Act, 1923, stipulates that the employer shall be liable to pay
compensation to a worker for personal injury caused by an accident arising out of and in the course of
employment.
3. Case law reference: In the case of Indian Iron and Steel Co. Ltd. v. Their Workmen, the Supreme Court
held that the employer is liable to pay compensation for injuries sustained by workers while performing
their duties, even if the injury occurred while rectifying defects in machinery or equipment.
Judgment:
In this case, the driver of the concrete mixer sustained injuries to his thumb and index fingers while
rectifying a defect on the machine during the course of his employment. The injury occurred as a result of
performing duties assigned by the employer. Therefore, the employer is liable to pay compensation to the
driver under the provisions of the Workmen's Compensation Act, 1923.
Conclusion:
The employer is liable to pay compensation to the driver for the injuries sustained while rectifying a defect
on the concrete mixer during the course of his employment. The driver's actions were in furtherance of his
duties and responsibilities assigned by the employer. Hence, the employer is responsible for providing
compensation to the injured worker as per the provisions of the Workmen's Compensation Act, 1923.
23.A real estate builder , who engaged 20 workers, had been paying lesser wages to women than
male workers. Advise the women workers.
Principle:
1. The Equal Remuneration Act, 1976, prohibits discrimination in wages on the basis of gender and
mandates equal pay for equal work.
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2. Section 4 of the Equal Remuneration Act, 1976, stipulates that no employer shall pay to any worker of the
same establishment wages at a rate less favorable than those at which wages are paid to workers of the
opposite sex for performing the same work or work of similar nature.
3. Case law reference: In the case of Air India v. Nergesh Meerza, the Supreme Court held that
discrimination in wages based on gender is violative of the fundamental right to equality enshrined in the
Constitution of India.
Judgment:
In this case, the real estate builder's practice of paying lesser wages to women workers compared to male
workers is in violation of the Equal Remuneration Act, 1976. The Act mandates equal pay for equal work,
regardless of gender. Discrimination in wages based on gender is illegal and constitutes a violation of the
fundamental right to equality guaranteed by the Constitution of India.
Conclusion:
The women workers are advised to bring the matter to the attention of the concerned authorities or seek
legal recourse against the real estate builder for paying them lesser wages compared to male workers. The
builder's practice is discriminatory and illegal under the Equal Remuneration Act, 1976, and violates the
fundamental right to equality. It is essential for the women workers to assert their rights and demand equal
pay for equal work.
24.An employee died after rendering continuous service of three years. The claim of gratuity
filed by nominees was rejected by the employer on the ground that deceased employee had not
completed five years service. Decide?
Principle:
1. The Payment of Gratuity Act, 1972, provides for the payment of gratuity to employees who have rendered
continuous service for five years or more.
2. Section 4 of the Payment of Gratuity Act, 1972, stipulates that gratuity shall be payable to an employee
on the termination of his employment after he has rendered continuous service for not less than five years.
3. Case law reference: In the case of Municipal Corporation of Delhi v. Dharam Pal, the Supreme Court held
that the completion of five years of continuous service is not necessary for the payment of gratuity if the
termination of employment is due to death or disablement.
Judgment:
In this case, although the deceased employee had not completed five years of continuous service, the claim
for gratuity filed by the nominees is still valid. The Payment of Gratuity Act, 1972, provides for the payment
of gratuity in the event of death or disablement of the employee, regardless of the length of service.
Therefore, the nominees of the deceased employee are entitled to gratuity as per the provisions of the Act.
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Conclusion:
The employer is liable to pay gratuity to the nominees of the deceased employee, even though the
employee had not completed five years of continuous service. The Payment of Gratuity Act, 1972, mandates
the payment of gratuity in cases of death or disablement, irrespective of the length of service. Hence, the
rejection of the gratuity claim by the employer is not justified, and the nominees are entitled to receive the
gratuity amount.
The case of People's Union for Democratic Rights (P.U.D.R.) v. Union of India is a landmark judgment
delivered by the Supreme Court of India. This case is significant as it deals with the rights of bonded
laborers and the inadequacies of the legal system in protecting their fundamental rights. Here's a
comprehensive overview of the case:
Background:
The People's Union for Democratic Rights (P.U.D.R.) filed a Public Interest Litigation (PIL) in the Supreme
Court of India, highlighting the issue of bonded labor prevalent in various parts of the country. The
petitioners contended that despite the existence of legislation prohibiting bonded labor, the practice
continued unabated due to the failure of law enforcement agencies to enforce the laws effectively.
Legal Issues:
1. Whether the state's failure to enforce laws prohibiting bonded labor violates the fundamental rights of
the affected individuals.
2. Whether the court can issue directions to the government to take proactive measures to eradicate
bonded labor and rehabilitate the victims.
Key Arguments:
1. The petitioners argued that bonded labor amounted to a violation of the fundamental rights guaranteed
under Articles 14 (Right to Equality), 19 (Right to Freedom), and 21 (Right to Life and Personal Liberty) of the
Indian Constitution.
2. They contended that despite the legislative framework in place, bonded labor continued to exist due to
the failure of enforcement agencies and the complicity of local authorities.
3. The petitioners sought directions from the court to the government to take immediate and effective
steps to identify and rehabilitate bonded laborers.
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3. The court observed that the Bonded Labor System (Abolition) Act, 1976, and other relevant laws provided
adequate safeguards against bonded labor but lacked effective enforcement mechanisms.
4. The court issued several directions to the central and state governments, including the identification,
release, and rehabilitation of bonded laborers, the prosecution of offenders, and the provision of adequate
compensation to the victims.
5. The court emphasized the need for social welfare schemes and rehabilitation programs to ensure the
holistic upliftment of bonded laborers and their families.
Significance:
The P.U.D.R. v. Union of India case is a significant milestone in the legal framework for combating bonded
labor in India. The judgment reaffirmed the commitment of the judiciary to protect the fundamental rights
of vulnerable sections of society and highlighted the responsibility of the state to ensure social justice and
equity. The case also paved the way for greater judicial activism in addressing issues of social concern and
promoting human rights and dignity.
Conclusion:
The P.U.D.R. v. Union of India case underscores the importance of vigilant enforcement of labor laws and the
need for proactive measures to eradicate bonded labor. It exemplifies the judiciary's role in safeguarding
the rights of marginalized communities and holding the government accountable for its obligations towards
ensuring social justice and equality. The case serves as a reminder of the ongoing struggle against
exploitation and oppression and the collective responsibility to uphold the principles of human dignity and
freedom.
26. Employer of an organisaton gave two different amounts of wages for his employees for doing same or
similar work. The workers who are getting less wages than their fellow colleagues challenge this
disparity in the wages. Decide.
Legal Point:
1. Equal Remuneration Act, 1976: The Equal Remuneration Act prohibits discrimination in wages on the
basis of gender for the same or similar work. Section 4 of the Act mandates equal pay for equal work
irrespective of gender.
2. Principle of Equal Pay for Equal Work: This principle mandates that employees performing the same or
similar work should receive equal wages, regardless of factors such as gender, caste, religion, or any other
discriminatory grounds.
3. Constitutional Provisions: Articles 14 (Right to Equality) and 39(d) (Directive Principles of State Policy) of
the Indian Constitution emphasize equality and social justice, including equal pay for equal work.
Judgement:
1. The disparity in wages provided by the employer to employees performing the same or similar work
violates the principle of 'equal pay for equal work' enshrined in the Equal Remuneration Act, 1976.
2. The employer is obligated to provide equal wages to employees for the same or similar work, irrespective
of any discriminatory grounds.
3. Any differentiation in wages without reasonable justification may be considered unfair labor practice and
can be challenged by the affected employees.
4. The workers who are receiving lesser wages than their fellow colleagues are entitled to approach the
appropriate labor authorities or file a complaint before the labor court for redressal of their grievances.
Conclusion:
In conclusion, the case highlights the importance of ensuring equal remuneration for employees performing
the same or similar work, as mandated by labor laws and constitutional principles. The principle of 'equal
pay for equal work' is a fundamental aspect of labor rights and social justice, and any violation of this
principle can be challenged through legal recourse. Employers must adhere to the provisions of the Equal
Remuneration Act, 1976, and ensure fair and non-discriminatory practices in the workplace.
27. A child below 14 years of age is engaged in a factory. During the inspection , the employer
showed the written consent of the parents of the child. Decide.
Legal Point:
1. Child Labor (Prohibition and Regulation) Act, 1986: The Act prohibits the employment of children below
the age of 14 in any occupation, including factories, except where the child works as a "child artist" in an
audio-visual entertainment industry.
2. Right to Education: The Right of Children to Free and Compulsory Education Act, 2009, mandates free
and compulsory education for children aged 6 to 14 years, ensuring that they are not engaged in any form
of labor.
3. International Conventions: India is a signatory to international conventions such as the International
Labour Organization's Convention on the Rights of the Child, which prohibits child labor and mandates
compulsory education.
Principle:
1. The Child Labor (Prohibition and Regulation) Act, 1986, clearly prohibits the employment of children
below the age of 14 in factories or any other hazardous occupations.
2. Parental consent cannot override the statutory provisions prohibiting child labor, as the welfare of the
child takes precedence over parental consent in such matters.
3. The Act aims to protect children from exploitation and ensure their physical, mental, and emotional well-
being by providing them with access to education and preventing their engagement in hazardous work.
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LL.B. IV SEMESTER PAPER I 94 LABOUR LAW-II
Judgement:
1. The employment of a child below the age of 14 in a factory, even with parental consent, violates the
provisions of the Child Labor (Prohibition and Regulation) Act, 1986.
2. The Act's objective is to protect children from exploitation and ensure their right to education and
development.
3. Parental consent cannot be used as a defense to justify child labor, as it contravenes statutory provisions
and constitutional principles.
4. The employer is liable for violating the law and subject to penalties prescribed under the Act, including
fines and imprisonment.
Conclusion:
In conclusion, the case underscores the importance of prohibiting child labor and ensuring the welfare and
development of children. The law unequivocally prohibits the employment of children below the age of 14 in
factories or hazardous occupations, regardless of parental consent. Any violation of these provisions is a
serious offense and must be addressed through strict enforcement of the law and imposition of appropriate
penalties.
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LL.B. IV SEMESTER PAPER I 95 LABOUR LAW-II
LANDMARK CASES
List of 20 landmark labor law cases in India along with key observations from the court:
These cases cover a range of significant legal principles and precedents in labor law, providing essential
guidance for understanding the rights and obligations of employers and employees in the Indian context.
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LL.B. IV SEMESTER PAPER I 96 LABOUR LAW-II
12. Steel Authority of India Ltd. v. National Union Waterfront Workers (2001)
- Key Observation: The Supreme Court clarified that employers cannot unilaterally alter employment
terms or conditions without the consent of employees or their representatives, ensuring the protection of
workers' rights in employment contracts.
18. Indian National Trade Union Congress v. State of Tamil Nadu (2002)
- Key Observation: The Supreme Court upheld the constitutional right of workers to form trade unions and
engage in collective bargaining as essential components of labor rights and democratic principles.
19. M/s. Gujarat Steel Tubes Ltd. v. Its Mazdoor Sabha (1980)
- Key Observation: The Supreme Court reaffirmed that employers cannot terminate employees' services
arbitrarily or without valid reasons, stressing the importance of adhering to procedural fairness and natural
justice in employment termination cases.
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LL.B. IV SEMESTER PAPER I LABOUR LAW-II
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LABOUR LAW II
PUBLIC INTERNATIONAL LAW
INTERPRETATION OF STATUTES
LAND LAWS
INTELLECTUAL PROPERTY RIGHTS
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