National Economy: while framing the labour law the general economic situation of the country has to be kept in mind so that object may not be defeated.

 

Labour Legislation Part-I

 

how do you visualize the need for a labour legislation in the industrial world? Give out the classification and principles of labour laws.
 

Labour legislation is necessary for the following reason:

• The workers were financially weak and had little bargaining power.

•  The wages paid to factory workers were quite inadequate to meet their barest needs.
  If workers exposed to serious accidents because machine lost their employment and had no right to compensation.

• The employment was not secured.

• Worker would be discharged suspended or dismissed at any time without assigning any reason.

• Children and women were taking to work under hazardous conditions

It establishes a legal system that facilitates productive individual and collective employment relationships, and therefore a productive economy by providing a framework within which employers, workers and their representatives can interact with regard to work-related issues, it serves as an important vehicle for achieving harmonious industrial relations based on workplace democracy.
It provides a clear and constant reminder and guarantee of fundamental principles and rights at work which have received broad social acceptance and establishes the processes through which these principles and rights can be implemented and enforced. Labour legislation is widely used both to regulate individual employment relationships and to establish the framework within which workers and employers can determine their own relations on a collective basis, for example through collective bargaining between trade unions and employers or employers' organizations or through mechanisms of worker participation in the enterprise. Regulation of the collective relations of workers and employers typically includes laying down legal guarantees of the right of workers and employers to organize in occupational organizations, to bargain collectively and the right to strike, as well as mechanisms for worker participation at the enterprise level

The legislative regulation of the individual employment relationship typically entails the enactment of provisions governing the formation and termination of the relationship (that is, the conclusion of contracts of employment, their suspension and termination) and the rights and obligations relating to the different aspects of the relationship (such as the minimum age for admission to employment of work, the protection of young workers, equality at work, hours of work, paid holidays, the payment of wages, occupational safety and health and maternity protection). Provision also has to be made for enforcement procedures and supporting institutions (such as labour inspection services and courts or tribunals).

CLASSIFIACTION OF LABOURS LAWS:

1. General laws which are applicable to all establishments not otherwise provided for, e.g factories act, 1948; the industrial employment act 1946.

2. Specific laws which are applicable to specific industry-the mines act, 1962. The plantation labour act, 1948, Indian merchants shipping act 1923. Working journalist's newspaper employees and miscellaneous provisions act, 1955. Laws relating to specific matters, namely wages.

3. welfare

4. Housing

5. Leave the payment of wages act 1936,the minimum wages act 1948,the worker men compensation act 1923, the employees compensation act 1923; the employment provident act 1952, the employees state insurance act 1948 the bonded labour and system act, 1976.

Laws relating to association of workers e.g. the trade unions act, 1926, the industrial dispute act.
Laws relating to social insurance. The workmen compensation act 1923, the maternity benefits act, 1961 and the employee's state insurance act 1948

Principle of labour laws
Labour legislation in any country should be based upon-

1) Social justice (2) Social Equity (3) International Uniformity and 4) National Economy

Social Justice: Ideal condition in which all members of a company have the same basic rights, security, opportunities, obligations and social benefits. * Social legislation: Laws aimed at promoting the social functioning of individuals and groups and at protecting their rights.

Social Equity: legislation based on social justice prescribes a definite standard for adoption in future. Such standard is forced after taking into consideration the past and present circumstances. Once this standard is fixed by legislation it cannot be changed unless the circumstances and conditions so warrant.

 International Uniformity: International uniformity is another principle on which labour laws are based. This important role played by international organization in this connection is praiseworthy. This organization aims at securing minimum uniform standard in respect of all labour matters.

National Economy: while framing the labour law the general economic situation of the country has to be kept in mind so that object may not be defeated.

Labour Legislation Part-II

(a) there shall be deducted from any lump sum or half-monthly payments to which the workman is entitled the amount of any payment or allowance which the workman has received from the employer by way of compensation during the period of disablement prior to the receipt of such lump sum or of the first half-monthly payment, as the case may be; and

(b) no half-monthly payment shall in any case exceed the amount, if any, by which half the amount of the monthly wages of the workman before the accident exceeds half the amount of such wages which he is earning after the accident.

Explanation: Any payment or allowance which the workman has received from the employer towards his medical treatment shall not be deemed to be a payment or allowance received by him by way of compensation within the meaning of clause (a) of the proviso.

(3) On the ceasing of the disablement before the date on which any half-monthly payment falls due, there shall be payable in respect of that half-month a sum proportionate to the duration of the disablement in that half-month.

(4) If the injury of the workman results in his death, the employer shall, in addition to the compensation under sub-section (1), deposit with the Commissioner a sum of [two thousand and five hundred rupees] for payment of the same to the eldest surviving dependant of the workman towards the expenditure of the funeral of such workman or where the workman did not have a dependant or was not living with his dependent at the time of his death to the person who actually incurred such expenditure.

Section 4A:

Compensation to be paid when due and penalty for default.

1. Compensation under section 4 shall be paid as soon as it falls due.
2. In cases where the employer does not accept the liability for compensation to the extent claimed, he shall be bound to make provisional payment based on the extent of liability which he accepts, and, such payment shall be deposited with the Commissioner or made to the workman, as the case may be, without prejudice to the right of the workman to make any further claim.
3. Where any employer is in default in paying the compensation due under this Act within one month from the date it f ell due, the Commissioner shall if, in his opinion, there is no justification for the delay, direct that the employer shall, in addition to the amount of the arrears and interest thereon, pay a further sum not exceeding fifty per cent of such amount by way of penalty: Provided that an order for the payment of penalty shall not be passed under clause (b) without giving a reasonable opportunity to the employer to show cause why it should not be passed. Explanation: For the purposes of this sub-section, "scheduled bank" means a bank for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934).

(3A) The interest and the penalty payable under sub-section (3) shall be paid to the workman or his dependant, as the case may be.

Section 5: Method of calculating wages. In this Act and for the purposes thereof the expression "monthly wages" means the amount of wages deemed to be payable for a month's service (whether the wages are payable by the month or by whatever other period or at piece rates), and calculated] as follows, namely:

(a) where the workman has, during a continuous period of not less than twelve months immediately preceding the accident, been in the service of the employer who is liable to pay compensation, the monthly wages of the workman shall be one-twelfth of the total wages which have fallen due for payment to him by the employer in the last twelve months of that period;

(C)In other cases [including cases in which it is not possible for want of necessary information to calculate the monthly wages under clause (b)],] the monthly wages shall be thirty times the total wages earned in respect of the last continuous period of service immediately preceding the accident from the employer who is liable to pay compensation, divided by the number of days comprising such period. Explanation: A period of service shall, for the purposes of [48] [this [49] [section]] be deemed to be continuous which has not been interrupted by a period of absence from work exceeding fourteen days.

Section 6: Review.

1. Any half-monthly payment payable under this Act, either under an agreement between the parties or under the order of a Commissioner, may be reviewed by the Commissioner, on the application either of the employer or of the workman accompanied by the certificate of a qualified medical practitioner that there has been a change in the condition of the workman or, subject to rules made under this Act, on application made without such certificate.
2. Any half-monthly payment may, on review under this section, subject to the provisions of this Act, be continued, increased, decreased or ended, or if the accident is found to have resulted in permanent disablement, be converted to the lump sum to which the workman is entitled less any amount which he has already received by way of, half-monthly payments.

Section 7:

Commutation of half-monthly payments. Any right to receive half-monthly payments may, by agreement between the parties or, if the parties cannot agree and the payments have been continued for not-less than six months, on the application of either party to the Commissioner be redeemed by the payment of a lump sum of such amount as may be agreed to by the parties or determined by the Commissioner, as the case may be.

Section 8:

Distribution of compensation.

1. No payment of compensation in respect of a workman whose injury has resulted in death, and no payment of a lump sum as compensation to a woman or a person under a legal disability, shall be made otherwise than by deposit with the Commissioner, and no such payment made directly by an employer shall be deemed to be a payment of compensation: Provided that, in the case of a deceased workman, an employer may make to any dependant advances on account of compensation [53] [of an amount equal to three months 'wages of such workman and so much of such amount] as does not exceed the compensation payable to that dependant shall be deducted by the Commissioner from such compensation and repaid to the employer.]
2.  Any other sum amounting to not less than ten rupees which is payable as, compensation may be deposited with theCommissioner on behalf of the person entitled thereto.
3. The receipt of the Commissioner shall be a sufficient discharge in respect of any compensation deposited with him.
4. On the deposit of any money under sub-section (1), [54] [as compensation in respect of a deceased workman] the Commissioner [55] shall, if he thinks necessary, cause notice to be published or to be served on each dependant in such manner as he thinks fit, calling upon the dependants to appear before him on such date as he may fix for determining the distribution of the compensation. If the Commissioner is satisfied after any inquiry which he may deem necessary, that no dependant exists, he shall repay the balance of the money to the employer by whom it was paid. The Commissioner shall, on application by the employer, furnish a statement showing in detail all disbursements made.
5. Compensation deposited in respect of a deceased workman shall, subject to any deduction made under sub-section (4), be apportioned among the dependants of the deceased workman or any of them in such proportion as, the Commissioner thinks fit, or may, in the discretion of the Commissioner, be allotted to any one dependant.
6. Where any compensation. deposited with the Commissioner is payable to any person, the Commissioner shall, if the person to whom the compensation is payable is not a woman or a person under a legal disability, and may, in other cases, pay the money to the person entitled thereto.
7. Where, on application made to him in this behalf or otherwise, the Commissioner is satisfied that, on account of neglect of children on the part of a parent or on account of the variation of the circumstances of an-y dependant or for any other sufficient cause, an order of the Commissioner as to the distribution of any sum paid as compensation or as to the manner in which any sum payable to any such dependant is to be invested, applied or otherwise dealt with, ought to be varied, the Commissioner may make such orders for the variation of the former order as he thinks just in the circumstances of the case: Provided that no such order prejudicial to any person shall be made unless such person has been given an opportunity of showing cause why the order should not be made, or shall bc made in any case in which it would involve the repayment by a dependant of any -sum already paid to him.
8. Where the Commissioner varies any order under sub-section (8) by reason of the fact that payment of compensation to any person has been obtained by fraud, impersonation or other improper means, any amount so paid to or on behalf of such person may be recovered in the manner hereinafter provided in section 31

Section 9:

Compensation not to be assigned, attached or charged.

Save as provided by this Act, no lump sum or half-monthly payment payable under this Act shall in any way be capable of being assigned or charged or be liable to attachment or pass to any person other than the workman by operation of law, nor shall any claim be set off against the same.

Section 10:

Notice and claim.

1. No claim for compensation shall be entertained by a Commissioner unless notice of the accident has been given in the manner hereinafter provided as soon as practicable after the happening thereof and unless the claim is preferred before him within [60] [two years] of the occurrence of the accident or, in case of death, within [60] [two years] from the date of death: Provided that, where the accident is the contracting of a disease in respect of which the provisions of sub-section (2) of section 3 are applicable, the accident shall be deemed to have occurred on the first of the days during which the workman was continuously absent from work in consequence of the disablement caused by the disease: Provided further that in case of partial disablement due to the contracting of any such disease and which does not force the workman to absent himself from work, the period of two years shall be counted from the day the workman gives notice of the disablement to his employer: Provided further that if a workman who, having been employed in an employment for a continuous period, specified under sub-section (2) of section 3 in respect of that employment, ceases to be so employed and develops symptoms of an occupational disease peculiar to that employment within two years of the cessation of employment, the accident shall be deemed to have occurred on the day on which the symptoms were first detected.] Provided further that the want of or any defect or irregularity in a notice shall not be a bar to the [63] [entertainment of a claim

• If the claim is [64] [preferred] in respect of the death of a workman resulting from an accident which occurred on the premises of the employer, or at any place where the workman at the time of the accident was working under the control of the employer or of any person employed by him, and the workman died on such premises or at such place, or on any premises belonging to the employer, or died without having left the vicinity of the premises or place where the accident occurred, or
• Iif the employer [65] [or any one of several employers or any person responsible to the employer for the management of any branch of the trade or business in which the injured workman was employed] had knowledge of the accident from any other source at or about the time when it occurred: Provided further that the Commissioner may [66] [entertain] and decide any claim to compensation in any case notwithstanding that the notice has not been given, or the claim has not been [67] [preferred] in due time as provided in this sub-section, if he is satisfied that the failure so to give the notice or [68] [prefer] the claim, as the case may be, was due to sufficient cause.

2.     Every such notice shall give the name and address of the person injured and shall state in ordinary language the cause of the
         injury and the date on which the accident happened, and shall be served on the employer or upon [69] [any one of] several
         employers, or upon any person [70] [***] responsible to the employer for the management of any branch of the trade or
         business in which the injured workman was employed.

3.       The State Government may require that any prescribed class of employers shall maintain at their premises at which
           workmen are employed a notice book, in the prescribed form, which shall be readily accessible at all reasonable times to
           any injured workman employed on the premises and to any person. acting bond fide on his behalf.

4.        A notice under this section may be served by delivering it at, or sending it by registered post addressed to, the residence
          or any office or place of business of the person on whom it is to be served, or, where a notice-book is maintained, by entry
          in the notice book.

Section 10A: 

Power to require from employers statements regarding fatal accidents.

1. Where a Commissioner receives information from any source that a workman has died as a result of an accident arising out of and in the course of his employment, he may send by registered post a notice to the workman's employer requiring him to submit within thirty days of the service of the notice, a statement, in the prescribed form, giving the circumstances attending the death of the workman, and indicating whether, in the opinion of the employer, he is or is not liable to deposit compensation on account of the death.
2. If the employer is of opinion that he is liable to deposit compensation, he shall make the deposit within thirty days of the service of the notice.
3. If the employer is of opinion that he is not liable to deposit compensation, he shall in his statement indicate the grounds on which he disclaims liability.
4. Where the employer has so disclaimed liability, the Commissioner, after such enquiry as he may think fit, may inform any of the dependants of the deceased workman that it is open to the dependants to prefer a claim for compensation, and may give them such other further information as he may think fit.

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with warm regards

Harish Sati
Indira Gandhi National Open University (IGNOU)
Maidan Garhi, New Delhi-110068

(M) + 91 - 9990646343 | (E-mail) Harish.sati@gmail.com