FACTORIES ACT, 1948

FACTORY

• A factory is a premises whereon 10 or more persons are engaged if power is used, or 20 or more persons are engaged if power is not used, in a manufacturing process.

PROVISIONS OF THE ACT

• Health• Safety• welfare

HEALTH• Cleanliness• Disposal of waste and effluents• Ventilation and temperature• Dust and fume• Artificial humidification• Overcrowding• Lighting• Drinking water• Latrines and urinals• spittoons

SAFETY• Fencing of machinery• Work on machinery near motion• Employment of young persons on dangerous machines• Striking gears and devices for cutting of power• Self acting machines• Casing of new machinery• Prohibition of employment of women and children near cotton openers• Hoists and lifts• Lifting machines, chains, ropes• Revolving machinery• Pressure plant• Floors, stairs and means of access• Pits, sumps, openings• Excessive weights• Protection of eyes• Precaution against dangerous fumes• Precaution against the use of portable light• Precaution against explosives• Precaution in case of fire• Power to require tests of stability• Safety of building and machinery• Maintenance of building• Safety officers

WELFARE

• Washing facility• Facilities for storing and drying clothes• Facility for sitting• First aid appliances• Canteens• Shelters, rest rooms and lunch rooms• Crèches• Welfare officers

INDUSTRIAL DISPUTES ACT, 1947

INDUSTRY

• Industry means any systematic activity carried on by co-operation between an employer and his workmen.

OBJECTS OF THE ACT

• To secure industrial peace• To ameliorate the conditions of workmen in

industry

INDUSTRIAL DISPUTE

Industrial dispute means any dispute between:• Employers and employers• Employers and workmen• Workmen and workmen

INGREDIENTS OF DISPUTE

• There must be real or substantial dispute• The dispute should be between employer and

workmen• The dispute must be connected with

employment

PROCEDURE FOR SETTLEMENT OF DISPUTES

• Works committee• Conciliation officers• Boards of conciliation• Courts of inquiry• Labour courts• Industrial tribunals• National tribunals

STRIKE

• Cessation of work by a body of persons employed in a industry acting in combination

RETRENCHMENT

• Termination by the employer of the service of a workman for any reason whatsoever, otherwise than as punishment inflicted by way of disciplinary action.

LOCK-OUT

• It means the temporary closing of a place of employment or the suspension of work or the refusal by an employer to continue to employ any number of persons employed by him.

LAY-OFF

• Means the failure, refusal or inability of an employer to give employment to a workman

PAYMENT OF BONUS ACT, 1965

MEANING OF BONUS

• Extra dividend to the share holders of a company

• Distribution of profits to insurance policy-holders

• Gratuity to workmen beyond their wages• Desire of the employer to share with his

workers the surplus generated by common endeavor and enterprise

OBJECT AND SCHEME OF THE ACT

• Object is to provide for the payment of bonus to persons employed in certain establishments

SCHEME :• To impose statutory liability upon an employer to pay bonus• To define principle of payment of bonus according to

prescribed formula• To provide for payment of minimum and maximum bonus• To provide machinery for enforcement of the liability for

payment of bonus

ELIGIBILITY FOR BONUS

• Worker must have worked in the establishment for not less than 30 working days in that year

DISQUALIFICATION FOR BONUS

Employee will not get bonus if he is dismissed from service for :

• Fraud• Violent behavior• Theft, misappropriation or sabotage of any

property

DETERMINATION OF BONUS

BONUS FORMULA DEPENDS ON :

• Computation of gross profits

SCHEDULES IN THE ACT

FIRST SCHEDULE- Computation of gross profits of a banking company

Items to be added :• Provision for depreciation, donations, income tax,

capital expenditure, income, profits and gains.

Items to deduct :• Capital receipts and profits• Expenditure or losses• Capital expenditure and losses• Income of foreign banking companies

SECOND SCHEDULE- COMPUTATION OF GROSS PROFITS IN OTHER CASES

Items to be added :

• Provision for depreciation, donations, income tax, capital expenditure, income, profits and gains.

Items to deduct :

• Capital receipts and profits• Expenditure or losses• Capital expenditure and losses• Income of foreign banking companies

THIRD SCHEDULE

• The third schedule tells about the amount of cash that is left over after deductions are made. This forms the available surplus out of which bonus is given

SEGREGATION OF EMPLOYER

• Company other than a banking company• Banking company• Corporation• Co-operative society• Any other employer not falling under the

above mentioned category

FOURTH SCHEDULE

This part deals with :

• Method of calculation of available surplus• Its distribution• Set on or set off of the amount available out of it

PAYMENT OF WAGES ACT 1936

SCOPE OF THE ACT

• To prevent the evils of withholding wages, delays in payment of pages, unreasonable deductions out of pages.

• To regulate the payment of wages to certain classes of persons employed in industry.

• To ensure payment of wages in a particular form and at regular intervals without unauthorised deductions.

APPLICATION OF THE ACT

• Applies to persons employed in any factory.• To persons employed in railways.

RULES FOR THE PAYMENT OF WAGES

• Responsibility for payment of wages• Fixation of wage period• Time of payment of wages• Medium of payment of wages

DEDUCTIONS FROM WAGES

• Deductions for fines• Deductions for absence from duty• Deductions for damage or loss• Deductions for services• Deductions for recovery of advances• Deductions for recovery of loans• Deductions for payments to co-operatives and

insurance schemes

MAINTENANCE OF REGISTERS

The register must contain :• The work performed by them• Wages paid to them• Deductions made from their wages• Receipts given by them