Quick Summary
Quick Summary
LABOUR LAW – II
Unit-I: Remunerative Aspects and Wage Legislations
| Topic & Sub-Topic | Key Points (Detailed Concepts, Definitions & Examples) | Relevant Laws & Legal Principles |
| Wages Concepts & Wage Policies | • Concept of Wages: Remuneration capable of being expressed in terms of money, payable for work done. • Types of Wages: – Minimum Wage: Lowest wage necessary to cover basic human needs, physical survival, and standard efficiency. – Fair Wage: Wage above minimum wage, moving towards living wage, depending on industry productivity and capacity to pay. – Living Wage: Highest standard, providing for health, decency, comfort, and education of the worker’s family. • Whitley Commission Recommendations: Royal Commission on Labour recommendations emphasizing timely wage payments, elimination of deductions, and workers’ protection. | Wage policy framework, Whitley Commission findings, and industrial standards. |
| Payment of Wages Act, 1936 | • Timely Payment: Mandates wage periods (monthly, fortnightly) and prompt disbursement before expiry of designated days after the wage period ends. • Authorized Deductions: Permits only lawful deductions (fines, absence from duty, damage/loss, advances, taxes). • Claims: Mechanism for filing claims before designated authorities for illegal deductions or delayed wages. | The Payment of Wages Act, 1936 – Regulating wage disbursements. |
| Minimum Wages Act, 1948 | • Definitions & Minimum Rates: Statutory fixing of minimum wages for scheduled employments; rates can be time-rate, piece-rate, or guaranteed time-rate. • Procedure: Appointment of committees/advisories, publishing proposals, and revising rates periodically. • Claims & Remedy: Procedures and authorities to claim unpaid minimum wages and penalties for default. | The Minimum Wages Act, 1948 – Statutory wage floors. |
Unit-II: Bonus Legislation and Computations
| Topic & Sub-Topic | Key Points (Detailed Concepts, Definitions & Examples) | Relevant Laws & Legal Principles |
| Concept of Bonus & Full Bench Formula | • Concept: An extra payment made to employees out of the profits of an undertaking, transforming from an ex-gratia gift into a legal right based on productivity and profits. • Full Bench Formula: Historical judicial formula used to compute available surplus by deducting prior charges (depreciation, return on capital, rehabilitation) from gross profits. | Evolution of bonus jurisprudence and industrial tribunal standards. |
| Payment of Bonus Act, 1965 (Application & Eligibility) | • Application: Applies to every factory and establishment employing 20 or more persons. • Eligibility: Employees drawing salary up to a statutory limit who have worked for at least 30 working days in a year. • Disqualification: Dismissal on grounds of fraud, riotous behavior, theft, or misappropriation. | The Payment of Bonus Act, 1965 – Statutory framework for profit-sharing bonuses. |
| Surplus Computation, Minimum/Maximum Bonus & Recovery | • Gross Profit & Surplus: Computation of gross profit followed by calculation of available and allocable surplus (60% for Indian companies, 67% for foreign companies). • Set-on and Set-off: Mechanism to carry forward surpluses or deficits when allocable surplus exceeds maximum limits or falls short in subsequent years. • Limits & Recovery: Minimum bonus (8.33% or flat amount) and Maximum bonus (20%); recovery mechanisms under Section 21 for unpaid bonuses. | Sections 4 to 21 of The Payment of Bonus Act, 1965. |
Unit-III: Social Security and Compensation Legislations
| Topic & Sub-Topic | Key Points (Detailed Concepts, Definitions & Examples) | Relevant Laws & Legal Principles |
| Social Security & Workmen’s Compensation Act, 1923 | • Social Security & Insurance: Protective measures (Social Insurance vs. Social Assistance) shielding workers against risks like sickness, maternity, employment injury, and old age. • Employer’s Liability: Employer’s statutory liability to pay compensation for personal injury caused by an accident arising out of and in the course of employment. • Nexus & Default: Requirement of a direct causal nexus between injury and employment; penalties and interest for defaulting on compensation payments. | The Employee’s Compensation Act, 1923 (formerly Workmen’s Compensation Act). |
| Employees’ State Insurance (ESI) Act, 1948 | • Application: Applies to non-seasonal factories and establishments using power and employing 10 or more persons. • Benefits: Sickness, maternity, disablement, dependent’s benefit, and medical care. • Administration: Managed by the ESI Corporation; includes specialized adjudication mechanisms (ESI Courts) to resolve disputes and claims. | The Employees’ State Insurance Act, 1948 – Comprehensive medical and social insurance. |
Unit-IV: Provident Fund, Maternity Benefit, and Gratuity
| Topic & Sub-Topic | Key Points (Detailed Concepts, Definitions & Examples) | Relevant Laws & Legal Principles |
| Employees’ Provident Fund & Miscellaneous Provisions Act, 1952 | • Contributions: Statutory contributions made by employers and employees towards provident fund, pension scheme, and insurance schemes. • Schemes & Benefits: EPF Scheme, Employees’ Pension Scheme (EPS), and Employees’ Deposit-Linked Insurance (EDLI) providing retirement, family pension, and death benefits. | The Employees Provident Fund and Miscellaneous Provisions Act, 1952. |
| The Maternity Benefit Act, 1961 | • Application: Applies to factories, mines, plantations, and shops/establishments employing specified numbers of women. • Benefits: Paid leave during pregnancy/maternity (extended durations), nursing breaks, medical bonus, and protection against dismissal during absence. | The Maternity Benefit Act, 1961 – Protection of female workforce maternity rights. |
| The Payment of Gratuity Act, 1972 | • Eligibility & Payment: Payable to employees upon retirement, resignation, superannuation, death, or disablement after rendering continuous service for not less than 5 years. • Forfeiture: Gratuity can be wholly or partially forfeited for willful omission, negligence causing property damage, or termination for riotous/disorderly conduct. • Nomination & Authorities: Mandatory nomination procedures and dispute resolution via controlling authorities. | The Payment of Gratuity Act, 1972 – Terminal welfare benefits. |
Unit-V: Factories Act, Child Labour, and Equal Remuneration
| Topic & Sub-Topic | Key Points (Detailed Concepts, Definitions & Examples) | Relevant Laws & Legal Principles |
| The Factories Act, 1948 (Health, Safety & Welfare) | • Health: Provisions regarding cleanliness, ventilation, temperature, lighting, overcrowding, and drinking water. • Safety: Fencing of machinery, striking gear, fire precautions, and safety of young persons on dangerous machines. • Welfare: Facilities for washing, sitting, first-aid appliances, canteens, shelters, and crèches. | Chapters dealing with Health, Safety, and Welfare under The Factories Act, 1948. |
| Child Labour & Equal Remuneration | • Child Labour Rights: Constitutional safeguards (Article 24 prohibiting child labor in hazardous industries, Article 39 directives). • Child Labour Act, 1986: Prohibits employment of children in specified hazardous occupations and regulates working conditions in non-hazardous ones. • Equal Remuneration Act, 1976: Mandates payment of equal remuneration to men and women workers for the same work or work of a similar nature, prohibiting gender-based discrimination. | The Child Labour (Prohibition and Regulation) Act, 1986 & The Equal Remuneration Act, 1976. |