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.