SOCIAL SECURITY & EMPLOYEE WELFARE

ASSIGNMENT

SYNOPSIS OF MODULE 3

Factories Act 1948

Plantation Act 1951

Contract Labour Act 1970

Kerala Shops and Commercial Establishment Act 1960

Welfare Legislation-Canteen & Crèches

Kerala National & Festivals Holidays Act 1958

Welfare Legislation-Administration of Leaves and Holidays

Kerala Labour Welfare Fund Act 1975

GROUP 3

Krishna S Nair

Lakshmi James

Module 3
Navaneeth Krishnan V M

Linta Mariya Babu

Mary Thomas

Minnu Maria Johnny

Nabeel Akram

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 FACTORIES ACT 1948

Applicability - shop’ as defined in section 2 (u) and b. “commercial establishments” as

defined in section 2 (e)

Eligibility - The term “employee” is defined in section 2(g) and includes the following
category of persons working in shops or commercial establishments:

 permanent, periodical, contract or piece rated or on commission basis.

 Includes apprentices, clerical and other members of staff.(including officers &
supervisors)

Obligations of Employers –

 Get their establishments registered and renew the registration every 5 years.
 Deploy employees as per hours prescribed and pay overtime wages wherever
applicable.
 Give employee one weekly holiday.
 Issue appointment orders to every
 Grant annual leave and sick leave to employees as per section.
 Comply with provisions of payment of wages act 1936.
 Extend accident compensation as per provisions of the workman’s compensation act
1923
 Extend benefits of the maternity benefit act 1961 to female employees
 Not to deploy any child [person who have not completed 14 years]
 Not to deploy women and young persons in night shifts[between 8 pm and 6 am]

New Amendments

1. Hazardous process definition - hazardous process means any process where, unless
special care is taken, raw materials, hazardous substances used therein or the
intermediate or finished products, bye products, wastes or effluents thereof would- (A)
cause material impairment to the health of the persons engaged in or connected
therewith; or (B) result in the pollution of the general environment.
2. New Section 2CC- highlighting Environment Protection- hazardous substance means
any substance as prescribed or preparation of which by reason of its chemical or physio-
chemical properties or handling is liable to cause physical or health hazards to human

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 being or may cause harm to other living creatures, plants, microorganisms, property or
the environment.
3. New Section 2(ea)-Defining the disability-disability shall have the meaning as assigned
to it in clause (i) of section 2 of the Persons With Disabilities (Equal Opportunities,
Protection of Rights and Full Participation) Act, 1995.
4. 2(f) –defining “week”- In the existing clause (f), after the words ―particular area, the
words ―or a factory shall be inserted.
5. 2(k)“manufacturing process”- means any process for composing and processing for
printing, printing by letter press, lithography, offset, photogravure, screen printing,
flexography, or other similar process or binding.
6. 2(n) “occupier” of a factory means the person who has ultimate control over the affairs
of the factory- in the case of a factory owned or controlled by the Central Government,
or any State Government, or any local authority, the person or persons appointed to
manage the factory by the Central Government, the State Government or the local
authority as may be prescribed, as the case may be shall be deemed to be the occupier.\
7. Approval, licensing and registration of factories.- A factory shall not be deemed to be
extended within the meaning of this section by reason only of the replacement of any
plant or machinery or within such limits as may be prescribed, or the addition of any
plant or machinery, if such replacement or addition does not reduce the minimum clear
space required for safe working around the plant or machinery or result in hazardous
conditions likely to cause accident, dangerous occurrence or injuries to health of
workers or public or adversely affect the environmental conditions from the evolution
or emission of steam, heat or dust or fumes, or chemical or biological wastes injurious
to health and a certificate in writing shall be given by a competent person to this effect.
8. Notice by occupier- the words ―horsepower at both the places where it occurs, the
words ―power in Kilowatts shall be substituted.
9. General duties of manufacturers, etc., as regards articles and substances for use in
factories- It shall be the duty of a person, — (a) who erects or installs any article for
use in a factory, to ensure, so far as practicable, that such article so erected or installed
does not make it unsafe or a risk to health when that article is used by the persons in
such factory;
(b) who manufactures, imports or supplies any substance for use in any factory –
(i) to ensure, so far as practicable, that such substance is safe and has no risks
involved to health of persons working in such factory;

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 (ii) to carry out or arrange for carrying out of such tests and examination in
relation to such substance as may be necessary; (iii) to take such steps as
arenecessary to secure that the information about the results of tests carried out
in connection with the use of the substance as referred to in sub-clause (ii) is
available in a factory along with conditions necessary to ensure its safe use and
no risks to health;

(c) who undertakes the manufacture of any substance for use in any factory to carry
out or arrange for the carrying out of any necessary research with a view to discover
and, so far as practicable, to ensure the elimination or minimisation of any risks to
health or safety to which the substance may give rise out of such manufacture or
research.

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 CONTRACT LABOUR ACT 1970

SCOPE OF THE ACT:

The contract Labour Act empowers the government to primarily regulate and if required ban
contract labour in any establishment unless banned no bar in deploying contract labour ii
coverage.

It applies only to

 Establishments which employ or had employed 20 or more contract workers in the

previous 12 months.
 To contractors who employ or had employed 20 or more workmen during previous 12
months.

Coverage is not required for following categories of workers/establishments:

 Managerial & supervisors out workers who work in premises not controlled by
employers.
 Seasonal establishments if it work for less than 60 days in a year.
 Casual/intermittent employment if the establishment itself works for less than 120 days
per year.

The term contractor would include sub-contractors also. Suppliers of goods, articles already
manufactured would not be treated as contractors for the purpose of this act.

By central labour machinery the act will administer

 for all industries listed under section 2(a)(i) of the id act 1947
 all industries notified as controlled industries under section 2(ee) of the id act from time
to time (for the period covered in the notification)
 all central govt department undertakings by state labour machinery for all other
establishments not falling under the three categories listed above.

REGISTRATION OF ESTABLISHMENTS

 all establishments employing 20 or more contract workmen must compulsorily obtain

registration from assistant labour commissioiner/district labour officer. Apply giving
details in form i – must pay registration fee as indicated in rule 26.

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  Establishment must deploy only contractors who have obtained licence from alc/dlo.
[if such contractors propose deploying more than 19 workmen on the job] must ensure
contractors possess valid / renewed licence.

Contractors employing 20 or more must obtain licence :

 by submitting application in form iv.

 By enclosing a certificate from principal employer in form v.
 Pay appropriate fee as per rates in rule 26.
 Pay security deposits (refundable) as per rates in rule 24 (varies according to number
of workmen proposed to be engaged)
 amend or renew licence by applying in form vii [rules 29, 32]
 pay wages asper conditions stipulated in the licence issued and rule 25(2) (iv) & 25 (2)
(v)

OBLIGATIONS OF PRINCIPAL EMPLOYERS

 get his establishment registered and preserve registration certificate in form ii [apply in
form i] (sn. 7 + rule 17, 18]
 apply for modification of registration from time to time when contractors change or
number of contract workers shown in the certificates changes (sn. 7 to rule 20)
 issue certificate in form v to contractor to obtain licence
 insist on contractor obtaining / renewing / modifying licence (sn. 12 + rule 27 to 29)
 ensure contractor provides the welfare measures stipulated in (sns. 16 to 21 & rule 40
to 62)
 ensure contractors make wage payments on time and as principal employer countersign
on such wagesheets in proof of having witnessed such payments (sn. 21 + rule 63 to
73)
 step in and pay wages if contractor fails to pay (recover from contractor) (sn 21 + rule
72 & 73)
 ensure contractor pays statutory minimum wage wherever applicable [rule 25(2)(iv)
 maintain register of contractors in form xii [sn. 29(1) + rule 74]
 display notice of wages and hours of work [sn. 29(2)]
 send annual return in form xxv before 15 february every year (sn. 29 + rule 83)

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  send intimation to inspector in vi – b indicating commencement and conclusion of work
[rule 25(2) (viii) & 81(3) ]

OBLIGATIONS OF CONTRACTORS

 must obtain licence in form vi (apply in forms iv & v) (sn. 12 + rule 21 to 32)
 amend / renew licence by applying in form vii (sn. 14 + rule 27 to 29)
 provide welfare measures as stipulated / applicable (sn. 16 to 19 + rule 40 to 62)
 make timely and full payment of wages in presence of principal employer’s
reprsentative (sn. 21 + rule 63 to 73)
 maintain register of contract workers in form xiii (sn. 29 + rule 75)
 issue employment card to each worker in form xiv (sn. 29 + rule 76)
 issue service certificate to terminated worker in form xv (sn 29 + rule 77)
 maintain muster roll and wage register in form xvi to xviii and put it up for inspection
(sn. 29 + rule 78)
 maintain register of wage deductions, fines and advances in forms xx, xxi, and xxii (sn.
29 + rule 78)
 maintain register of overtime in form xxiii (sn. 29 + rule 78)
 issue wage slip to workers in form xix (sn. 29 + rule 78 (1)(b)
 display an abstract of the act and rules in english and vernacular (sn. 29 + rule 79)
 all registers / returns to be preserved for a period of 3 years from last entry (sn. 29 +
rule 80)
 a notice regarding rates of wages / hours of work etc. Shall be put up (sn. 29 + rule 81)
 submit half yearly returns to alc’s / dlo’s office by january and july of every year in
form xxiv (sn. 29 + rule 82)
 send intimation to inspector in form vi-a indicating dates of commencement and
conclusion of contract work
 ensure payment of atleast notified minimum wages wherever applicable . (rule 25(2)(v)
 if contract workmen doing jobs similar to regular workmen must pay same wages
enjoyed by the regular workmen for such jobs [rule 25(2)(v)][see food corporation of
india vs shyamlal chatterjee 2000 (87) flr 677 (SC-DB)]
 pay security deposit as per rule 24 and claim refund as per rule 31

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AMENDMENTS:

 The Contract Labour ( Regulation and Abolition) (Amendment) Act 1986

 The delegated Legislation Provisions (Amendment) Act 2004

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 WELFARE LEGISLATION-ADMINISTRATION OF LEAVES AND HOLIDAYS

Kerala Industrial Establishments (National and Festival Holidays) Act, 1958

An Act to provide for the grant of National and Festival holidays to persons employed in
industrial establishments in the State of Kerala WHEREAS it is expedient to provide for the
grant of National and Festival holidays to persons employed in industrial establishments in the
State of Kerala ;

BE it enacted in the Ninth Year of the Republic of India as follows:-

(1) This Act may be called the Kerala Industrial Establishments (National and Festival
Holidays) Act, 1958.

(2) It extends to the whole of the State of Kerala.

 In this Act unless the context otherwise requires,- (a) “day” means a period of twenty-
four hours beginning at mid night;

“Employee” means - definition of Employee in this ACT

(i) Any person (including an apprentice) employed in any industrial establishment to

do skilled or unskilled, manual, supervisory, technical or clerical work for hire or
reward, whether the terms of employment be express or implied;
(ii) any other person employed in any industrial establishment whom the Government
may, by notification in the Gazette, declare to be an employee for the purposes of
this Act;

 “employer” when used in relation to an industrial establishment means a person who

has the ultimate control over the affairs of the industrial establishment, and where the
affairs of any industrial establishment are entrusted to any other person (whether called
a managing agent, manager, superintendent or by any other name) such other person;

“Industrial establishment' means - definition of Industry establishment in this ACT

(i) any establishment, industrial, commercial or otherwise, where (twenty) or more

persons are employed, or were employed on any day of the preceding twelve
months and includes-
• A factory as defined in the Factories Act, 1948 (Central Act 63 of 1948);
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 • A plantation;
(ii) Any other establishment which the Government may, by notification in the Gazette,
declare to be an industrial establishment for the purposes of this Act;

Grant of National and Festival Holidays

Every employee shall be allowed in each calendar year a holiday of one whole day on

26th January

15th August

1st May

2nd October + NINE Festival Holidays

 Where an employee works on any holiday , he shall be entitled to twice the wages and
to avail himself of a substituted holiday on any other day

Exemptions in this ACT

Nothing contained in this Act apply to-

(a) Any employee in a position of management.

(b) Any employee whose work involves travelling

(c) Any industrial establishment under the control of the Central Govt., the RBI, a
Railway Admin. Operating any Railway.

(d) Any mine or oil field.

Power to make rules

(1) The government may, by notification in the Gazette, make rules for the purpose of
carrying into effect the provisions of this Act.
(2) In making a rule under this Act, the Government may provide that a contravention
thereof shall be punishable with fine which may extend to fifty rupees.
(3) Every rule made under this Act shall be laid as soon as may be after it is made before
the Legislative Assembly while it is in session for a total period of fourteen days which

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may be comprised in one session or in two successive sessions, and if, before the expiry
of the session in which it is so laid or the session immediately following, the Legislative
Assembly agrees in making any modification in the rule or the Legislative Assembly
agrees that the rule should not be made, the rule shall thereafter have effect only in such
modified form or be of no effect, as the case may be; so however that any such
modification or annulment shall be without prejudice to the validity of anything
previously done under that rule.

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 Welfare Legislation-Canteen & Creches

In order to ensure the welfare of workers, appropriate provisions have been made under Section
42 to 50 of the Factories Act, 1948. Under Section 46 State Governments are empowered to
frame Rules requiring that in every factory, wherein more than two hundred fifty workers are
ordinarily employed, a canteen shall be maintained by the occupier for the use of workers.
Section 48 provides that every factory, wherein more than thirty women are ordinarily
employed should provide and maintain a suitable room for the use of children below the age
of six years of such women workers.

Some of the provisions relating to the Labour Welfare as mentioned in the Factories Act, 1948
are: (1) Washing Facilities (2) Facilities for storing and drying clothing (3) Facilities for sitting
(4) First aid appliances (5) Canteens (6) Shelters, rest rooms and lunch rooms (7) Creches and
(8) Welfare officers

Canteens:

In every factory employing more than 250 workers, the State government may make rules
requiring that a canteen or canteens shall be provided for the use of workers. Such rules may
provide for (a) the date by which the canteen shall be provided, (b) the standards in respect of
constitution, accommodation, furniture and other equipment of the canteen; (c) the foodstuffs
to be served therein and charges which may be paid thereof; (d) the constitution of a managing
committee for the canteens and representation of the workers in the management of the canteen;
(e) the items of expenditure in the running of the canteen which are not to be taken into account
in fixing the cost of foodstuffs and which shall be borne by the employer; (f) the delegation to
the Chief inspector, of the power to make rules under clause (c).

Shelters, rest rooms and lunch rooms:

In every factory wherein more than 150 workers are ordinarily employed, there shall be a
provision for shelters, rest room and a suitable lunch room where workers can eat meals brought
by them with provision for drinking water.

Where a lunch room exists, no worker shall eat any food in the work room. Such shelters or
rest rooms aor lunch rooms shall be sufficiently lighted and ventilated and shall be maintained
in a cool and clean condition.

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Creches:

In every factory wherein more than 30 women workers are ordinarily employed there shall be
provided and maintained a suitable room or rooms for the use of children under the age of six
years of such women.

Such rooms shall provide adequate accommodation, shall be adequately lighted and ventilated,
shall be maintained in clean and proper sanitary conditions and shall be under the charge of
women trained in the care of children and infants.

The State government may make rules for the provision of additional facilities for the care of
children belonging to women workers including suitable provision of facilities:—

(a) For washing and changing their clothing

(b) of free milk or refreshment or both for the children, and

(c) for the mothers of children to feed them at the necessary intervals

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 KERALA SHOPS AND COMMERCIAL ESTABLISHMENTS ACT, 1960

Objective: The main objective of the act is to provide welfare of the employees employed in
the shops and commercial establishments and to regulate the conditions of their work and
employment.

Applicability: It extends to the whole of Kerala and applies to all shops and commercial
establishments defined under the act.

Registration of the Establishment:

The employer of every shops and commercial establishments shall apply for registration in
Form B-I with prescribed fee to the competent authority (Assistant labour officer-Grade III)
within sixty days from the date on which the establishment commences its work

Renewal of Registration:

I. Every employer shall renew the registration every year at least 30 days before
the expiry of the registration for the previous year.
II. The application for renewal with the registration certificate and prescribed fee
shall be submitted to the competent authority within the period.
III. The fee for registration and renewal shall be remitted in the office of the Asst.
labour officer concerned or treasury remittance.

Amendment of Registration:

Any employer who desires to have his registration certificate amended shall give a notice in
Form-B--III to the competent authority with copy to the inspector having jurisdiction over the
area in which the establishment is situated along with pre scribed fee for amendment of
registration certificate.

Commercial establishments - means a commercial or trading or industrial or banking or

insurance establishments or administrative service in which the persons employed are mainly
engaged in office work, hotel, restaurant, eating house or any other refreshing house, a theatre

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or any other public place of amusement or entertainment and includes such other
establishments as the govt., may by notification in the gazette, declare to be a commercial
establishments for the purpose of this act but doesn’t include a factory to which all or any of
the provisions of the factories act, 1948 apply.

Closing of shops

Every shops shall remain entirely closed on one day of the week and a notice shall be
permanently exhibited in the shop specifying the day of closure. This is not applicable to shops
exempted in the Act or exempted by the govt.

Hours of work:

No employee in any establishment shall be required to work for more than eight hours in any
day and 48 hours in any week. The number of hours of which including overtime shall not
exceed ten hours in any day except on stock taking etc. and the total number of hours of
overtime shall not exceed fifty for any quarter.

Extra wages for overtime work:

Where an employee works in any establishment for eight hours in any day or for more than
forty eight hours in any week shall in respect of such overtime work be entitled to twice the
ordinary rate of wages.

Weekly holidays: Every Person employed in shops or a commercial establishments shall be

allowed in each week a holiday of one whole day.

An intervals for rest: - No period of work of an employee in an establishment shall be given

rest for at least one hour before work of four hours.

Leave: Employees are eligible for leave in lien of:

i. Annual leave for 12 days with wages to employees after completion of 12 months continuous
service.
ii. Leave with wages not exceeding twelve days on the ground of any sickness or accident
sustained by him.
iii. Casual leave with wages not exceeding twelve days.
iv. Six days special casual leave for sterilisation operation in the case of male employees and
14 days in the case of female employees, subject to the provision of the Act.

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Dismissal: No employee shall be dismissed except on a reasonable cause and subject to
Section-18 of the Act. The aggrieved employee may file appeal within sixty days to the date of
delivery of the order terminating his services with the employer, to the appellate authority

Penalty: Whoever commits a breach of the provisions of the Act a rules shall be punishable
in according with Section-29 and Rule –14 of Kerala shops and Commercial Establishments
Act 1960 and Rules 1961

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 Plantations labour Act of 1951

Objectives:
 It provides welfare to the laborers.
 It helps to control the conditions of work in plantations

Labour:
The person who performs their work for not for wages and also use their physical or
mental efforts to produce goods and services, they are known as labour. It is one of the prime
factors for production.

Plantations:
This plantation act is applied to all premises which are connected with plantation, it can
also include offices, hospitals, dispensaries and schools but it does not include factories and
premises according to the provisions of Factories Act, 1948.

Wages:
The Minimum Wages Act 1948 is an Act of Parliament sets the minimum wages that has to
be paid for labors even if they are skilled or not. As they concerned about the labors to
maintain a basic standard of living including good health, dignity, comfort, education and
provide for any contingency.

Workers:
Those who are employed in plantation for wages directly or indirectly through agency to do
any work, but it might include manual or clerical work etc. It does not include
 Medical officer employed in plantation
 Person employed in plantation whose monthly wages exceed ten thousand rupees
 Person employed in plantation in managerial capacity
 Person temporarily employed in plantation in any work of construction.

Applicability
It is applicable to the whole states of India except the State of Jammu and Kashmir.

Registration of plantations
 Under Sec.3(B), it says that they have apply for registration with registering officer
within sixty days of existence

Power to make Rules:

 The state government has the powers to make rules, changes as well as issuing orders.
 A qualified chief inspector for the plantation is appointed by the State Government
Powers and duties of an inspector appointed:
 They have to check whether the act implemented or not
 Inspect whether it is carrying out the objects of this Act
 Examine the crops grown in any plantation
 Inquire about the workers employed
 To maintain documents according to the Act

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Provisions for Health and Welfare

• Safe water to drink

• Toilet facilities for male and female
• Medical benefits
• Canteens
• Recreational facilities
• Educational facilities
• Housing facilities

Limitations
Weekly hours
• Not more than 9 hours on any day
• Not more than 54 hours in any week
Weekly Holidays
 Allow a day of rest, in every seven days to all workers
 Daily intervals for rest at least half an hour
Leave with wages
 One day for every twenty days of work performed by an adult worker
 One day for every fifteen days of work performed by a young person

Sickness and maternity benefits

 Sickness allowance in case of sickness certified by a qualified medical practitioner
 Maternity allowance for woman, in the case of pregnancy or being in a condition of
child birth,

Welfare officers
 If there are more than three hundred or more workers are employed by the employer
shall employ such number of welfare officers as prescribed.
 The State Government will assign the duties, qualifications and conditions of service
of officers employed

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 Kerala Labour Welfare Fund Act 1975
An Act to provide for the constitution of a Fund for promoting the welfare of labour and for
certain other matters connected herewith in the State of Kerala.

Labour Welfare Fund

 The Govt. shall constitute a Fund called the Labour Welfare Fund, and not withstanding
anything contained in any other law for time being in force or in any contract or
instrument, all unpaid accumulations shall be paid, at such intervals as may be
prescribed, to the Board and be credited to the Fund, and the Board shall keep a separate
account therefore until claims thereto have been decided in the manner provided for in
sec 13.
There shall also be credited to the fund:
 a) unpaid accumulations paid to the Board under sub Sec (2) of Sec 13.
 b) all fines including the amount realized under (SO 17 of the Model SO issued under
the Kerala Industrial Employment (standing orders) Rules, 1958) from the employees
by the employers, not withstanding anything contained in any agreement b/w the
employer and employee.
 c) Contributions by employees and employers
 d) Any interest by way of penalty paid under sec 14.
 e) any voluntary donations. Etc.

The money in the fund may be utilized by the Board to defray expenditure on the following
activities

1. Community and social education centers including reading rooms and libraries. 2. Games
and sports.

3. Community necessities

4. Entertainment and other forms of recreation

5. Part time employment for house-wives of employees

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6. Pre-schools

7. Higher education

8. Nutritious food to children of employees

9. Employment opportunities to the disabled employees.

Contribution

• 4 % - Employee

• 8% - Employer

Latest Amendment

THE KERALA LABOUR WELFARE FUND (AMENDMENT) ACT, 1994 [1] (ACT 7 OF
1994)

An Act further to amend the Kerala Labour Welfare Fund Act, 1975 . Preamble.- WHEREAS
it is expedient further to amend the Kerala Labour Welfare Fund Act, 1975, for the purposes
hereinafter appearing; BE it enacted in the Forty-fifth Year of the Republic of India as follows:
-

1. Short title and commencement.-

1) This Act, may be called the Kerala Labour Welfare Fund (Amendment) Act, 1994.

(2) It shall come into force at once. 2. Amendment of section 2 .- In section 2 of the Kerala
Labour Welfare Fund Act, 1975 (11 of 1977) (hereinafter referred to as the principal Act), - (1)
in item (B) of sub-clause (i) of clause (d) the words "draws wages exceeding two thousand and
five hundred rupees per mensem or" shall be omitted; (2) in sub-clause (iv) of clause (f), for
the word "five", the word "two" shall be substituted.

3. Amendment of section 15 .- In section 15 of the principal Act, in sub-section (1), for the
words "one rupee" and "two rupees" the words "four rupees" and "eight rupees" shall,
respectively, be substituted. 4. Amendment of section 20.- In section 20 of the principal Act,

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after the words "the Board shall" and before the words "invest the same", the words "deposit
the same in Government Treasuries or in nationalised banks or in scheduled banks or in district
cooperative bank or " shall be inserted.

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