First factory act passed in 1881
Replaced by factories act 1934
Factories Act 1948 consolidated previous laws which was amended in 1954 and 1987
Meaning
Factory means any premises
10 workers working with power on any day in preceding 12 months
20 or more without power, should be involved in manufacturing process
Followings are Factories
Establishments which prepare articles of food and drink
Salt workers: with temporary shed
Railway workshops and not railway running shed
A water works for pumping of water is also a factory
Factory does not include
A mine – Mines Act guide
Hotels – shop and establishment act
Sale of petrol, exhibiting cinema films, the electric substation
The Payment of Wages Act, 1936
Objective: to regulate the payment of wages to certain class of persons employed in industry.
Certain class:
Persons employed in a factory
Persons employed in railway either directly or indirectly
State govt. is empowered to make the act applicable to any class of persons employed in any industrial establishment
Following have not been held to be wages
Maternity benefits, value at medical attendance
Bonus payable on account off award of Industrial Tribunal
Claim for wages in line of notice of termination of services
Damages for breach of contract
Responsibility for payment of wages
Every employer shall be responsible for the payment to persons employed by him
Time of payment of wages
–If no. of employers is less than 1000, the payment has to be paid before the 7th day, or else before the expiry of 10th day
Wages to be paid in current coins and currency notes
Deductions from wages
Fines imposed on workers
Absence from duty
Loss of goods
House accommodation
Recovery of advances
Income tax
Order of court
The Payment of Gratuity Act, 1972
Passed by the parliament in August 1972
Came into force on 16th September 1972
Passed as a social security measure
Amended twice in 1984 and 1987 respectively
States of Kerala and West Bengal had such acts prior to this act
Drafted on the lines of West Bengal Employees payment of compulsory gratuity Act 1971
Provides for compulsory payment of gratuity by the management to all employees in factories, plantations, mines, oilfields, ports, railway companies, other establishments employing ten or more persons in the event of superannuation, retirement, resignation and death or disablement
To whom acts applies
Every factory, mine, oilfield, plantation, port and railway company
Every shop or establishment within the meaning of any law
Such other establishments in which 10 or more employees are employed
Acts does not apply to apprentices
Some Definitions
Appropriate Government: means central government if it has branches in more than one state, or a factory belonging to central government.
Continuous service: if he has been in uninterrupted service including service interrupted on account of sickness, accident, leave, lay-off, strike, lock-out etc.
For continuous service of 6 months means it should be half the number of days actually worked
Employee: means any person (other than apprentice) employed on wages in any establishment, factory, mine, oilfield, plantation, railway company of shop
Employer: means a person or authority appointed by the state government or the central government appointed for the supervision and control of employees.
Superannuation: the attainment by the employee of such age as is fixed in the contract or condition of service as the age on the attainment of which the employee shall vacate the employment
Wage: means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employment and which are paid or payable to him.
Forfeiture of Gratuity
The gratuity of an employee, whose service has been terminated for any act, willful omission or negligence causing any damage or loss or destruction of property belonging to the employer shall be forfeited to the extent of damage caused
The employer may wholly or partly forfeit the gratuity payable to him if his services are terminated – for his disorderly conduct or any other act of violence
Replaced by factories act 1934
Factories Act 1948 consolidated previous laws which was amended in 1954 and 1987
Meaning
Factory means any premises
10 workers working with power on any day in preceding 12 months
20 or more without power, should be involved in manufacturing process
Followings are Factories
Establishments which prepare articles of food and drink
Salt workers: with temporary shed
Railway workshops and not railway running shed
A water works for pumping of water is also a factory
Factory does not include
A mine – Mines Act guide
Hotels – shop and establishment act
Sale of petrol, exhibiting cinema films, the electric substation
The Payment of Wages Act, 1936
Objective: to regulate the payment of wages to certain class of persons employed in industry.
Certain class:
Persons employed in a factory
Persons employed in railway either directly or indirectly
State govt. is empowered to make the act applicable to any class of persons employed in any industrial establishment
Following have not been held to be wages
Maternity benefits, value at medical attendance
Bonus payable on account off award of Industrial Tribunal
Claim for wages in line of notice of termination of services
Damages for breach of contract
Responsibility for payment of wages
Every employer shall be responsible for the payment to persons employed by him
Time of payment of wages
–If no. of employers is less than 1000, the payment has to be paid before the 7th day, or else before the expiry of 10th day
Wages to be paid in current coins and currency notes
Deductions from wages
Fines imposed on workers
Absence from duty
Loss of goods
House accommodation
Recovery of advances
Income tax
Order of court
The Payment of Gratuity Act, 1972
Passed by the parliament in August 1972
Came into force on 16th September 1972
Passed as a social security measure
Amended twice in 1984 and 1987 respectively
States of Kerala and West Bengal had such acts prior to this act
Drafted on the lines of West Bengal Employees payment of compulsory gratuity Act 1971
Provides for compulsory payment of gratuity by the management to all employees in factories, plantations, mines, oilfields, ports, railway companies, other establishments employing ten or more persons in the event of superannuation, retirement, resignation and death or disablement
To whom acts applies
Every factory, mine, oilfield, plantation, port and railway company
Every shop or establishment within the meaning of any law
Such other establishments in which 10 or more employees are employed
Acts does not apply to apprentices
Some Definitions
Appropriate Government: means central government if it has branches in more than one state, or a factory belonging to central government.
Continuous service: if he has been in uninterrupted service including service interrupted on account of sickness, accident, leave, lay-off, strike, lock-out etc.
For continuous service of 6 months means it should be half the number of days actually worked
Employee: means any person (other than apprentice) employed on wages in any establishment, factory, mine, oilfield, plantation, railway company of shop
Employer: means a person or authority appointed by the state government or the central government appointed for the supervision and control of employees.
Superannuation: the attainment by the employee of such age as is fixed in the contract or condition of service as the age on the attainment of which the employee shall vacate the employment
Wage: means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employment and which are paid or payable to him.
Forfeiture of Gratuity
The gratuity of an employee, whose service has been terminated for any act, willful omission or negligence causing any damage or loss or destruction of property belonging to the employer shall be forfeited to the extent of damage caused
The employer may wholly or partly forfeit the gratuity payable to him if his services are terminated – for his disorderly conduct or any other act of violence
