Handbook On Labour Laws II 17 PDF

Worker Education Series
Maternity Benefits
Act, 1961
Cividep India
September 2015
What is the Maternity Benefits Act?
The Maternity Benefits Act has been enacted to provide certain benefits to women workers in
certain establishments. These benefits are called ‘maternity benefits’ because they are related
to pregnancy and childbirth. Maternity benefits are given to women workers to ensure the
health of both the woman and the child.
Who does it cover?

Maternity Benefits Act covers every establishment, including a factory, mine, plantation or a
circus, and to every shop in which more than 10 persons or more have been employed at any
point of time during the past 12 months.
For maternity benefits to apply to a woman worker, she must have worked in the establish-
ment for at least 80 days in the 12 months before the date of her delivery.
If an establishment is covered under the ESI Act, then the Maternity Benefits Act will not
apply. She is however, entitled to benefits under the ESI Act.
What benefits does the Maternity Benefits Act provide?

The benefits accorded to women workers under the Maternity Benefits Act can mainly be
divided into two: cash benefits and non-cash benefits.
During the period of her actual absence from work, that is during the period immediately
preceding, during and after delivery of her child, the woman worker is entitled to be paid
maternity benefit from her employer at the daily wage rate. This means that the leave that a
woman worker takes during this period will not affect her salary, or in other words, she will
keep receiving salary even though she does not work during this period.
The maximum time period for which a woman is entitled to maternity benefit is 12 weeks. Out
of this, 6 weeks have to be during the period immediately preceding the date of her delivery.
What if the woman worker dies during childbirth/or

during the time of her maternity leave?
If the woman worker dies during the period of her maternity benefit, maternity benefit needs to
paid only till the date of her death.
However, if the woman worker dies during childbirth, or in the days immediately after giving
birth to a child, then the employer shall have to pay maternity benefit for the entire period.
This amount shall be payable to the person the woman has nominated for the purpose and in
the absence of the nominee, to her legal heir. If the child also dies then the maternity benefit
needs to be paid only till the date of the death of the child.
Worker Education Series Maternity Benefits Act, 1961 2

What if a worker comes under the ESI Act? Are there any
maternity benefits available to her?
ESI Scheme covers six medical benefits and this includes maternity benefit. Maternity benefit
is payable for three months (which is extendable by further one month on medical advice).
Maternity benefit is paid at the rate of full wages. The condition for receiving this benefit under
the ESI is that the employee must have been making contributions under the ESI Act for at
least 70 days in the preceding year.
In the case of miscarriage, the maternity benefits under the ESI Act is available for 6 weeks.
What if ESI facilities are not available in the area where

the worker resides?
If ESI facilities are not available in the area where the worker lives, then the worker is eligible
to be paid a medical bonus. For each period of maternity/confinement, the worker is eligible
for a payment of Rs. 2500, subject to a maximum of two confinements.
What if the woman dies during childbirth or during the

confinement period?
Under the ESI, if a woman dies during this period maternity benefits are still payable to her
nominee under the Scheme, provided she leaves behind her child. If the child also dies, then
the maternity benefit is payable only till the date of the death of the child (inclusive of the day
the death occurs).
What if, after the pregnancy and childbirth, the woman

worker becomes sick due to reasons related to the
pregnancy?
In such a case, the woman worker is entitled to maternity benefit for an additional period not
exceeding one month on account of her abstaining from work as a result of sickness arising
out of pregnancy, confinement, premature birth of child or miscarriage or medical termination
of pregnancy.
Remember!
• Maternity Benefits have been provided under the law to safeguard the rights of both the
woman worker and the child.
• You are entitled to these benefits as a worker and pregnancy is not a valid reason for termi-
nating someone from work.
• You should be able to join back in the same post before and after your maternity leave.
Pregnancy and childbirth are not justifiable reasons for a demotion.
• If you are not eligible under the ESI, you are eligible to get maternity benefits under the

Maternity Benefits Act till the time you are eligible for coverage under the ESI Act. As long
as you come under one of the Acts, you are entitled to maternity benefits.
• Both contract workers and permanent employees are eligible for maternity benefits under
the Act, as long as they fulfil the other requirements.

Colophon

Maternity benefits Act, 1961
September 2015
Author Cividep India

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Cividep India is an NGO based in Bangalore, which works to empower

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with human rights, labour rights, and environmental standards. With
this objective Cividep educates workers, studies effects of corporate
conduct, dialogues with various stakeholders, and advocates for policy
change. Cividep’s workers’ rights initiatives have been in the garment
manufacturing and electronics manufacturing as well as plantation and
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Contract Labour
(Regulation and Abolition)
Act, 1970
Cividep India
September 2015
Contract Labour Act, 1970
Are you a temporary employee in your company? As a contract worker, are you aware that
you have rights under a legislation called the Contract Labour (Regulation and Abolition) Act,
1970?
The Contract Labour (Regulation and Abolition) Act, 1970, has been enacted to “regulate
the employment of contract labour in certain establishments and to provide for its abolition in
certain circumstances”.
This Act has provisions to ensure that the contract labour is not misused and the rights of
workers employed on contract basis are protected. The Act does not ban contract labour alto-
gether, but puts restrictions on it and prohibits it under certain circumstances.
Who comes under this Act?

The Act is mainly directed at establishments and contractors. This Act covers:
• Every establishment employing more than 20 workmen as contract labour;

• Every contractor employing 20 or more workmen.
The Act uses two important terms: Principal Employer and Contractor. A contractor is the
person who supplies contract labour for any work of an establishment. Contractor could also
mean a person who undertakes to produce a given result for the establishment through the
employment of contract labour. Principal Employer is the employer who employs contract
labour through a contractor.
Illustration: ‘A’ is in the business of supplying labour on contract basis to companies. 240
workmen employed by ‘A’ are working in factory owned by Company ‘B’. Here, A is the Con-
tractor and B is the Principal Employer.
Are there any exceptions to this act?

This Act shall not apply if the work done in the establishment is casual or intermittent in na-
ture.
What is the meaning of intermittent work?

Work would come under the category of intermittent work if:
• It is ‘seasonal’ in nature, and is performed for not more than 60 days in a year.
• If it was performed less than 120 days in the preceding 12 months.
Worker Education Series Contract Labour Act, 1970 2

If a principal employer of an establishment or a
contractor comes under this Act, what are the
requirements they have to follow?
A principal employer has to register himself under this Act, by applying to the Registering
Officer under the Act.
A contractor has to obtain a license under this Act, in order to employ contract labour for any
purpose. Before obtaining this license, he cannot undertake or execute any work using con-
tract labour.
What if the principal employer is not registered? Or, the

contractor has not obtained a license?
If the principal employer is not registered, or the contractor has not obtained a license, they
are prohibited from employing contract labour for any purpose.
Are there any other cases where employment of contract

labour is prohibited?
The Central and State Government may prohibit a particular establishment from employing
contract labour. For this, the Government has to consider the following:
• whether the conditions of work and benefits provided for the contract labour in the estab-
lishment are satisfactory;
• whether work is incidental to or necessary for the business of the establishment;
• whether it is of perennial nature, that is to say, it is of sufficient duration;
• whether it is done ordinarily through regular workmen;
• whether it is sufficient to employ considerable number of full-time workmen.
If a worker has been employed as contract labour under

this Act, are there any provisions to make him permanent
under the Act?
No, the Act has been enacted to regulate contract labour to ensure that it is not misused.
There are no provisions in this Act that confer the right to an employee for permanent employ-
ment. Nothing in the Act requires the employer to automatically absorb the contract workers
into its permanent workforce1.
1 This principle has been reiterated in judgments of the Supreme Court such as Steel Authority of India
Ltd. vs. National Union of Waterfront Workers & Others 2001 (4) LLN 135 OR.

Are there any benefits to the temporary employee or
contract worker under this Act?
The Act lays down that is the duty of the Contractor to provide the contract workers with Can-
teens, Restrooms, Drinking Water facilities, Toilets and First Aid. In case the contractor fails to
provide these services, the Principal Employer has to provide these amenities to the contract
workers.
What are the regulations with regard to the wages given

to contract workers?
Section 21 of the Act says that a contract worker who is performing the same or similar kind of
work as a permanent worker should be paid the same wages as the permanent worker. Such
a contract worker is also entitled under the Act to same service conditions as their permanent
counterparts.
What if the Contractor fails to pay the contract worker

wages in part or in full?
The Act casts the duty on the Contractor to pay the wages to the contract workerin the pres-
ence of an authorised representative of the principal employer. More importantly if the Con-
tractor fails to pay the wages to the worker either in part or in full, the Act puts the liability to
pay the wages on the Principal Employer.
What are the penalties for not following the provisions of

this Act?
In case of any contravention of the provisions of the Act, the punishment is that of imprison-
ment for a period of up to three months and a fine of up to Rs. 1000.

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September 2015


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Minimum
Wages Act,
1948
Cividep India
September 2015
What is the Minimum Wages Act?
The Minimum Wages Act has been enacted by the Parliament of India to ensure that workers
are assured of a minimum wage for their work in certain employments, be it skilled or
unskilled. The State has come out with this Act taking into consideration that it may not be
fair to leave the determination of wages entirely to market forces, as the bargaining power of
different sections of labour may not be the same.
Is the Minimum Wage Rate fixed under the Act

considered the ideal amount of wages to be paid for a
particular kind of work?
No, minimum wage is the lowest amount that can be paid to a worker: if the worker is paid
even less than minimum wage it can be considered forced labour. Minimum wage is the
wage that will ensure that the worker has basic sustenance and is sufficient to maintain the
efficiency of the worker.
A living wage is a level of wage that should enable the worker to provide for himself and his
family not merely the basic essentials of food, clothing and shelter but also education for
children, protection against ill health, requirements of essential social needs and a measure
of insurance against more important misfortunes and old age. This is the ideal that should be
targeted by employers.
Is the minimum wage calculated monthly?

The minimum wage may be calculated on an hourly, daily, or monthly basis.
Who fixes the minimum wage?

According to the Act, the ‘appropriate government’ is responsible for fixing the minimum wage.
As such, both the Central and the State Government has the power to fix the minimum wage.
Can the employer fulfil the requirement of paying the

minimum wage in any other method other than a cash
payment?
No, the minimum wages have to be paid in cash payment to the worker. Any other amenities
provided by the employer shall not be taken into account in considering whether the statutory
wage has been paid. In other words, no payment in kind is to be considered as part of the
wages while calculating, whether minimum wage has been paid to the worker.
Is there a uniform minimum wage that is set across

India?
There is no single uniform minimum wage across the country. Since there are differences in
Worker Education Series Minimum Wages Act, 1948 2

different states and industries both in costs of living and the capacity of the industries to pay,
the Act declares the minimum wages at national, regional, sectoral and skill level.
However, there is a National Floor Level Minimum Wage which is fixed by the Central
Government to reduce disparities in the minimum wage across regions and sectors. The
Central Government has increased the National Floor Level Minimum Wage from Rs. 80/-
to Rs. 100/- per day with effect from 1.11.2009. However, it should be kept in mind that the
Floor Level Minimum Wage is not backed by legislation like the Minimum Wage. It is merely
persuasive, fixed by the Central Government so that States are encouraged not to let their
minimum wage below the National Floor Level.
What are the different components of minimum wage?

Are they revised regularly?
The minimum wage has a fixed component and a variable component. The fixed component
is the basic rate of wages and the variable rate is a special allowance that is adjusted at
irregular intervals. The fixed component of minimum wages shall be revised within five years
from the date when it was fixed.
What if the employer is not paying the minimum

wages? Are there any penalties under this Act of non
–compliance?
Under Section 22 of the Minimum Wages Act, the penalty for not paying minimum wages to
a worker is: imprisonment for a term which may extend to six months, or with fine which may
extend to five hundred rupees, or with both.
What is the procedure to be followed if the employer is

not complying with the Minimum Wages Act?
If a worker is being paid less than minimum wages, he or she can, under Section 20 (2) of the
Act, make a complaint to the Labour Commissioner/the appointed authority.
This complaint can also be made through a trade union or a legal practitioner on the worker’s
behalf. The section empowers any legal practitioner or any official of a registered trade union
authorised in writing to act on the worker’s behalf, or any Inspector, or any person acting with
the permission of the appointed authority under the act may make such a complaint.

You can find the rates of minimum wages for different types of work in Tamil Nadu in the Table
below:
Total
Basic Minimum
Sr. V.D.A. Minimum
Scheduled Employment Wages
No. Wages
In Rupees Per Day
1 Agarbathi Industry 69.73 101.23 170.96
Agriculture and works ancillary to Agriculture
2 a) Men Workers for 6 hr 100.00 0.00 100.00
b) Women Workers for 5 hr 85.00 0.00 85.00
3 Aerated Water Manufactory 70.00 117.50 187.50
4 Appalam Manufactory 93.42 136.12 229.54
5 Automobile Workshop 109.15 138.46 247.61
6 Auto Rickshaw and Taxi 138.50 101.84 240.34
7 Bakeries and Biscuits Manufactory 78.00 108.90 186.90
8 Bricks and Tiles Manufactory 74.00 102.85 176.85
9 Carpentry and Black Smith 127.00 179.19 306.19
10 Cashew Industry 132.50 15.20 147.70
11 Chemical and Fertilizers Industry 87.42 139.61 227.03
12 Cinema Industry 128.73 188.50 317.23
Coaching Academies (tutorial
colleges, Technical Institudes,
Primary Schools)run on commercial
13 51.92 67.65 119.57
lines without Govt. grant other than
those run by Govt. and local bodies
as the case may be.
14 Coconut Peeling Industry 79.00 114.95 193.95
15 Coir Manufactory 90.00 121.46 211.46
16 Coffee Curing Works 73.00 102.85 175.85
Construction or Maintenance of
17 117.00 145.20 262.20
Road and in Building Operations
Cotton Ginning , Pressing and
18 91.00 136.11 227.11
Cotton Waste Industry
Distribution of Liquid Petroleum Gas
19 82.69 121.00 203.69
Cylinders
20 Electronics Industry 91.00 132.65 223.65
21 Fire Works Manufactory 31.50 72.35 103.85

22 Food Processing Industry 86.50 110.07 196.57
23 Footwear Making Industries 72.23 49.68 121.91
24 Employment in Forestry 39.00 151.25 190.25
General Engineering & Fabrication
25 104.00 160.57 264.57
Industry
Gold and Silver Articles
26 131.00 187.55 318.55
Manufactory
27 Granite Industry 130.26 190.80 321.06
28 Handloom Silk Weaving Industry 108.90
29 Gunny Industry 163.35
30 Hotel and Restaurants 98.85 166.38 265.23
31 Hospitals and Nursing Homes 107.19 136.11 243.30
Laundries and Washing Cloths
32 140.50 205.70 346.20
(including Wollen)
33 Leather Goods Manufactory 72.23 49.68 121.91
Loading and Unloading Operations
34 in markets, shandies (fairs and 85.00 102.85 187.85
market place) and other like places.
35 Match Manufacturing 68.50 96.80 165.30
36 Mat Weaving and Basket Making 75.00 90.75 165.75
37 Medical & Sales representative 129.73 165.23 294.96
38 Motion Picture Industry 103.07 150.07 253.14
39 Neera Tapping 154.00 193.60 347.60
40 Any oil Mill 83.00 109.38 192.38
(a) Paper and other incidental
processes connected with machine 87.27 110.53 197.80
made paper Industry
41
(b) Paper and other incidental
Processes connected with Hand 83.42 105.88 189.30
Made Paper
Plantation
a) Tea 78.00 50.25 128.25
42
b) Coffee 77.00 50.25 127.25
c) Rubber 81.50 50.25 131.75
43 Power Loom Industry 29.00 124.50 153.50
Polythene Processing Foam Item
44 47.12 137.30 184.42
and Plastic Manufactory
45 Printing Presses 72.81 105.88 178.69
46 Public Motor Transport 137.30 200.11 337.41

Rice Mill, Flour Mills and Dhall
47 88.50 127.05 215.55
mills
48 Sago Industry 94.50 100.54 195.04
49 Salt Pans 89.00 89.10 178.10
50 Sea Food processing Industry 79.92 83.19 163.11
51 Security Guards 90.35 93.31 183.66
52 Sericulture Industry 95.00 99.00 194.00
Shops and Commercial
53 78.88 81.88 160.76
Establishments
54 Silk Twisting Industry 97.00 99.00 196.00
55 Soap Manufactory 122.00 133.27 255.27
56 Synthetic Gem Cutting Industry Piece Rate
57 Tailoring Industry 70.19 72.35 142.54
58 Textile mills (Apprentice) 110.00 113.85 223.85
59 Timber Industry 132.50 133.65 266.15
60 Tin Container Manufactory 91.00 133.11 224.11
Tobacco Manufactory
(a) Beedi making (other than beedi
96.15 116.34 212.49
rolling)
61
(b) Beedi Rolling (per 1000 bidies) 37.20 62.10 99.30
(c) Scented and chewing Tobacco 67.50 96.80 164.30
(d) Snuff Industry 78.00 108.90 186.90
Guaranteed Time Rates of Wages
62 Tobacco (including Beedi making) (Guaranteed Time Rates)
Manufactory
63 Vessels Utensils Manufactory 72.00 102.85 174.85
Tanneries and Leather Goods
64 57.00 69.48 126.48
Manufactory

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Minimum Wages Act, 1948
September 2015


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Safeguarding Workers’
Health
Are you covered under the Employees
State Insurance Act?
Cividep India
November 2014
ESI Act, 1948
“An act to provide certain benefits to employees in case of sickness, maternity and employment
injury and to make provisions for certain other matters in relation thereto” Mission Statement -
ESI Act, 1948.
Is your employer providing you with health coverage? Are you aware of the government
sponsored health scheme called Employee State Insurance (ESI)? In this series, we shall
examine the salient features of the ESI Act and the importance of being covered under this
social security scheme.

All factories or premises employing more than 10-20 workers (unless exempted by the
government)
Why was this Act brought into law?

To take care of employees health in case of sickness, maternity or injury during work
Who can claim benefits?

Any worker earning less than Rs. 15,000/ month (inclusive of benefits)
Benefits to workers under this Act

Medical Benefit
What are the range of services available?
• full range medical care to all insured person and family through ESI local dispensaries and
hospitals1
• super specialty treatment services through approved government/ private hospitals2
Sickness Benefit
What is the wage rate and how long can this benefit be utilized?
• cash benefit during sickness is 70% of your current daily wage rate
• maximum period covered is 91 days
• long term sickness can be extended up to 2 years with special recommendations. This applies
to 34 cancerous and long-term diseases such as TB, occupational diseases and others3 at
80% of your current daily wage rate
Maternity Benefit
How about women specific issues?
• this applies to all pregnancy related issues
Worker Education Series Safeguarding Workers’ Health 2

• cash benefit is equivalent to your current wages
• leave period is issue specific. For example, for child delivery – 3 months (this can be extended
to 1 extra month in case of complications)
Disablement Benefit
What happens if you are injured during work?
• injury during work is classified into temporary, partial-permanent and permanent disablement
• cash benefit is 90% of your current daily wage rate for permanent disability and in case of
partial disability for life, it is proportionate to the loss of your earning capacity
Dependents Benefit
What happens in case of sudden death?
• assured family pension due to deaths that are work related or occupational. For example, in
case of industrial accidents
• cash benefit is equivalent to 90% daily wage rate
• beneficiaries include widow, children and others under certain conditions
Other Benefits
• Funeral Expenses - Rs. 10,000 in case of death that is work related
• Unemployment Benefits - in case of layoffs, guaranteed income at 50% daily wage rate for a
maximum period of 1year, including medical care for family members4
• Old age Medical care - for both husband and wife on payment of Rs. 120/- per annum
Rate of Contribution
Employers – 4.75%
Employees – 1.75%
Total – 6.5%
Agenda for Action

• if your employer fails to register you with the ESI authority, he/ she is liable under law and
can be jailed
• you
can register your grievances online or in person at all levels and also approach the
Employee Insurance court5
For more details, contact your local union now!
Remember
• benefits under ESI are your right and your employer cannot deny them to you under any
circumstances

• your employer cannot dismiss you during sickness or disability caused by accidents during
work and even during strikes or lockouts
• if you are earning less than Rs. 100 a day, you are exempted from contributions
Employer’s Duty
• depositing both employee’s as well as employer’s contribution at the local ESI branch6 every
month
• gettingregistered under ESI within 15 days at the appropriate regional office, if ESI is
applicable
• getting all employees registered
• maintenance of Accident Book is a must and should be submitted within 24 hours in case of
death or serious injury to the nearest branch office and insurance medical officer
Agenda for Action

• Is your employer following all the rules and regulations?
• if not, you need to inform your local union and the concerned local ESI branch now!
Role of ESI Corporation/ State Government

• appointmentof inspectors, with authority to enter any premises (falling under ESI) and
examine any documents relating to workers’ wages
• taking action against those employers found in violation of the ESI Act
• setting up of ESI dispensaries, hospitals and reimbursing claims
• providing quality care and free medicines to the beneficiaries and their dependents
• addressing grievances
Agenda for Action
• Are the services provided by your local ESI facility satisfactory?
• Are your claims being reimbursed on time?
• Are your grievances addressed effectively?
• Are actions being taken against those employers who do not comply with regulations?
• if not, you need to claim your rights, use Right to Information (RTI) Act and demand provision
of quality services through your local union and political representatives
Remember
• The State government has powers to amend ESI laws for their respective states.
• If you bring pressure on your political representatives, ESI, along with other social security
provisions, can be made pro- worker and accountable to the public.
Claim your ESI rights now!

Endnotes
1
For more information on general medical benefits, please visit the following page of the central government
ESI website: www.esic.nic.in/other_scale_mb.php
2
For more information on all the specialty treatment services available, please visit the following page of the
central government ESI website - www.esic.nic.in/other_specialist_consultation.php
3
For details, visit the following page of the central government ESI website www.esic.nic.in/esb_benefits.php
4
Also known as Rajiv Gandhi Shramik Kalyan Yojana
5
Please visit the following page of central government ESI website – www.esic.nic.in/grievances.php for more
information.
6
For details regarding your local ESI branch, please visit the directory page of the central government ESI
website: www.esic.nic.in/directory.php

Safety & Health

Is your workplace safe?
Cividep India
November 2014
What are the rules and regulations protecting workers in their workplaces?
What are the duties of the management?
And what is the role of the government/ labour department in enforcing labour laws?
Whom do you contact in case of violations?
Factories Act, 1948 is one of the most important labour legislations with regard to industrial
safety and health. In this series we shall give a broad overview of this act.
For more detailsvisit the Ministry of Labour & Employement website1.

Any manufacturing industry employing more than 10-20 workers
Why was this Act brought into law?

To protect the health, safety and welfare of all workers
Did you know, under Factories Act 1948, all

workers are entitled towards:
Clean Environment - Is your workplace clean?
• a clean working environment, work spaces that are well ventilated, free from dust and indoor
pollution
• no overcrowding and adequate space2 for each worker
Safety - Are all safety measures in place?
• provision of safety gear while operating machinery
• one first aid box with a trained personnel per 150 workers and ambulance room for 250 plus
workers
• information on all the dangers and general health policy
Basic Provisions
• adequate clean drinking water facilities
• provision for sitting, rest/ lunch room for 150 plus workers and canteen for 250 plus workers
• adequate basic facilities, including washing and storing facilities
• clean latrines and urinals, separate for males and females (respecting privacy)
• provision of spittoons, fine in case of violation not to exceed Rs.5
Worker Education Series Safety & Health 2

Working hours and rest period
• a 48 hour week and not more than 9 hours per day
• ½ hour rest every 5 hours
• overtime (OT) = double pay
• one day paid leave every 20 Days
• weekly and compensatory holidays
Women Specific Provisions
• guaranteed maternity leave up to 3 months
• well-equipped child care facility with trained personnel, if more than 30 women workers are
employed
• no night shift for women
Agenda for Action

• Does your employer provide you with all these basic rights?
• if not, inform your employer that he/she is violating basic worker rights and he/she can be
held accountable as per law!
• if no immediate action is taken, report this to your local union or approach the appropriate
officer in the labour department. Grievances can be registered online through the Central
‘Public Grievances’ portal3 and you can also approach the Industrial Tribunal Cum Labour
Court if the situation persists.
For more information, contact your local union now!
Duties of the Employer

Environment
• sufficient lighting
• cleanliness of the premises and the work floor
• walls cleaned and painted periodically
• effective drainage and waste disposal system, including treatment
Health
• general policy on health and safety of workers with all arrangements in place
• information on health hazards to be displayed prominently
Safety
• periodic safety inspections
• all dangerous machinery must be well protected
• young people must not be allowed to operate dangerous machinery, unless supervised by
seniors

• appointment of safety officer, in factories employing 1000 plus workers
• sending notice to labour department immediately in case of accidents/ occupational diseases
or in case of suspected danger
Workers
• register of all workers must be maintained by the manager of factory and made available for
inspection
• provision of all basic facilities without discrimination
• no overtime or exploitation above the specified work time
Agenda for Action

• Is your employer following all these rules and regulations?
• if your employer is violating safety rules, inform your local department immediately! Do not
compromise on your health and safety for fear of consequences from your employer.
• for all work and welfare related issues of all workers in the factory, stay in touch with your
local union.
Role of Labour Department/ State

Government
• granting and cancellation of license
• enforcement of all the rules as per the Act
• appointment of inspectors
• regular inspection and advice for precautionary measures
• welfare officer for factories with more than 500 workers, safety officer per 1000 workers and
factory medical officer for more than 500 workers
• humidification standards (permissible levels of heat in the premises)
• prohibition of child labour (below 14 years)
• inquiry into accident/ occupation disease
Remember
• the objective of this Act is to safeguard health, rights, safety and welfare of all workers in a
factory
• factory management is ultimately responsible for the health, safety and welfare of all workers
Agenda for Action

• appropriate officials can be informed through the labour department in case of negligence by
the management. You can also approach the Industrial Tribunal as well as apply for Right to
Information (RTI) Act, wherever appropriate.
• health officials can examine workers in case of illness due to occupational hazards
In order to protect your rights, stay in touch with your local unions

Endnotes
1
Ministry of Labour & Employement can be accessed throught the following website – www.labour.gov.in/
2
Factories Act mandates 14.2 cubic meters of space for every worker employed
3
Central ‘Public Grievances’ portal can be accessed through the following website –
www.pgportal.gov.in/Grievance.aspx

Freedom of Association
Why should workers join a Trade Union?
Cividep India
November 2014
Are you facing these conditions at work?
Long working hours?
Low pay?
No social security?
Abuses and harassment from your supervisors/ employer?
Lack of job security?
It is high time you and your fellow workers form a union.

But how?
Will we lose our job?
Is it not difficult to register a union?
We know nothing about the laws?
Can we really gain anything?
The Trade Union Act, 1926 and Industrial Disputes Act, 1947 give workers the legal right to
form a trade union and negotiate with the employer on equal terms and conditions, without
threat of reprisal. In this series, we shall examine what you as workers need to know about
forming a trade union and procedures for settling long standing disputes.
What is a Trade Union (TU)?

An organized association of workers in a trade, group of trades, or profession, formed to protect
and further workers’ rights and interests1. This includes negotiating wages on behalf of workers,
regulating work conditions, taking strike actions, help settle grievances etc.
Who can Form a Union?

Seven or more workers can register to form a trade union2. But registration requires union
membership of 10 percent or 100 workers employed in your workplace/ factory.
What are benefits of a union?

• better
pay, improved working conditions such as safety, job and social security, general
advice on a variety of issues
• secure protection from sudden economic distress and accidents
• can campaign on a variety of issues ranging from work related issues to industry related
issues to political campaigns
• advocate government policy in favour of workers
• ensure all workers are treated fairly and equally, without any discrimination
Worker Education Series Freedom of Association 2

Why is it important for the union to be
recognized by the employer?
• right to take part in union activities without threat of dismissal
• voting in union elections
• attending annual union conferences
What are the powers of a union?

• recognition as “body corporate” (legal body)
• admission of members (including minors), right to hold periodic elections and elect leaders
and office bearers
• maintenance of separate funds for administration and political purposes
• right to hold movable and immovable property
• fight legal cases on behalf of workers or individual member arising out of dispute with the
employer
• providing allowance or insurance for members/ dependents in case of sudden death and
unemployment
• provision for social and educational programmes
• maintaining periodicals and publications
• right to collect subscription from members
• right to change name of the union as well as amalgamation with other unions
• right to dissolve the union
Note: For more details regarding the rights, change of name, amalgamation and dissolution of trade union,
please refer to Section 15 to 28 of the Trade Union Act, 1926.
What are the basic requirements for running

a union?
• name of the union
• objective for forming the union
• general rules and regulation
• purposes for which funds are applicable
• maintaining list of members
• formation of the executive and its term being not more than 3 years
• manner of appointment and removal of office bearers
• manner in which rules can be amended

• rules for conducting periodic elections
• accountability through annual audits and safe custody of funds
• filing annual audit statement to the registrar
• manner of dissolving the union
Note: For more details, refer to Section 6 of the Trade Union Act, 1926
Agenda for Action

• Are you allowed to discuss and give feedback to your management on the issues faced by
you at your workplace? If not, you have every right to not only air your grievances to the
management, but also take action such as strikes or legal action if the need arises
• contact other local unions and gain experience from them on how to form and run unions
• start discussing the advantages of forming a union with your co-workers and find out if they
are interested to join
• it is illegal to establish a management sponsored union, discourage union membership and
victimize/ dismiss worker for union activity
• your management has no right in stopping you from forming a union. They can be prosecuted
under law.
• your rights are not restricted to your workplace alone, but extend to the industry as a whole
and political/ social sphere as well
• forming a union is a basic right guaranteed under the Indian constitution - Article 19(1)(c)
Spread the word and act now!
What is an industrial dispute?

Any dispute which impacts your employment or conditions of work, even if it affects just a
single worker, constitutes an industrial dispute. It applies to all establishments with 100 or more
workers.
What are the mechanism available to address

industrial disputes?
1. With State Intervention
• Primary level – Works Committee will initially look into the matter and must be present in
workplaces employing more than 100 workers. It should include equal representation from
both the management and workers
• Secondary level – Conciliation officer appointed by the government will try to mediate the
dispute. This may also be referred to the Board of Conciliation.
• Tertiary level – Unresolved disputes are usually referred to a labour court/ industrial tribunal/
national tribunal depending on the issue

2. Without State Intervention
• Collective Bargaining – Involves workers/ union representatives directly negotiating with the
management
• Voluntary Arbitration - Both parties try to settle the dispute by way of arbitration (mediation)
involving a third party
What is the difference between Settlements

and Awards?
• Settlement is any agreement arrived by both parties through conciliation proceedings or even
outside of it. It is only binding for the period agreed upon by both parties or six months.
• An award is the interim or final judgment given by the court or tribunal. It is binding for a
period of one year.
Agenda for Action

• it is legal to go on strikes, except during negotiations or after settlement/ award has been
reached
• lock outs are illegal if the mandatory notice is not given in advance3
• no employer can retrench4, lay-off5 workers or declare closure6 without a proper notice period,
compensation, valid reason and prior approval from the appropriate government
• it is illegal for employers to break strikes by recruiting new workers, transfer workers, ask
workers to sign good conduct bond, to discriminate between workers, use violence and other
coercive means
• employers cannot refuse collective bargaining
• employers can also be prosecuted for failing to adhere to the settlement/ award
Get started and contact your local union now!
Endnotes
1
Source: Oxford dictionary (www.oxforddictionaries.com)
2
The details regarding the registration can be found in Section 3 to 14 of the Trade Union Act, 1926.
3
For details on notice period for lock outs, please refer to Section 22(2) of the Industrial Disputes Act, 1947
4
Retrenchment‘ means termination of service of a workman for any reason, other than as a punishment
inflicted by a disciplinary action. However, retrenchment does not include voluntary retirement or retirement on
reaching age of superannuation or termination on account of non-renewal of contract or termination on account
of continued ill-health of a workman.
5
When an employee is not given work due to reasons beyond the powers of the employer. It could be due to
shortage of raw materials/ power, accumulation of stocks, break down of machinery or. natural calamity
6
Closure means permanent closing down of a place of employment

Colophon

Freedom of Association. Why Should Workers Join a Trade Union?
November 2014


GoodElectronics and can in no way be taken to reflect the views of the
European Union.

leather sectors.
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+31 (0)20 639 12 91


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