Industrial Law

Presented By: Sundar Ganesh Kumar,

S.Y.B.M.S. Sem-III, Roll No.: 44
Vivek College Of Commerce
Major Industrial Laws
The Industrial Dispute Act, 1947

The Payment Of Wages Act, 1936

The Minimum Wages Act, 1948

The Payment Of Gratuity Act, 1972

The Industrial Disputes Act,
1947
Important Definitions
Authorities under the Industrial Disputes Act
Award & Settlement
Strikes
Lock-outs
Lay Offs
Retrenchments
Closure
Case Law Studies
Important Definitions
Industry [S.2(j)]: means any business, trade,
undertaking, manufacture or calling of
employers and includes any calling, service,
employment, handicraft, or industrial
occupation or avocation of workmen.
Employer [S.2(g)]: means-
i. In relation to an industry carried on by or under
the authority of any department of the Central
Government or a State Government – the
authority prescribed in this behalf;
ii. In relation to an industry carried on by or on
behalf of a local authority – the Chief Executive
Officer of that authority.
Important Definitions
Industrial Dispute [S.2(k)]: means any dispute
or difference between-
i. Employers and Employers, or
ii. Employers and Workmen, or
iii. Workmen and Workmen,
which is connected with-
v. The employment or non-employment, or
vi. The terms of employment, or
vii. The conditions of labour.
of any person related directly or indirectly to the
industry.
Important Definitions
 Workman [S.2(s)]: means any person (including an
apprentice) employed in any industry to do any-
i. Manual
ii. Skilled
iii. Unskilled
iv. Technical
v. Operational
vi. Clerical
vii. Supervisory
work for hire or reward, whether the terms of
employment be expressed or implied, and in relation
to an Industrial Dispute, includes any such person who
has been dismissed, discharged or retrenched in
connection with, or as a consequence of, that dispute
or whose dismissal, discharge or retrenchment has led
Important Definitions
 Workman (contd.): to that dispute. Workman does
not include any such person, who is:-
i. Subject to the Air Force Act, 1950, the Army Act,
1950, or the Navy Act, 1957, or
ii. Employed in the police service or as an officer or
other employee of a prison, or
iii. Employed mainly in a managerial or administrative
capacity, or
iv. Employed in a supervisory capacity, and draws
wages exceeding Rs.1600 per mensem, or
v. Exercises functions mainly of managerial nature, by
the duties attached to the office or by the reason of
power vested in him.
Important Definitions
 Public Utility Service [S.2(n)]: means-
i. Any railway service or any transport service for the
carriage of passengers or goods by air;
ii. Any service in, or in connection with the working of,
any major port or dock;
iii. Any section of an industrial establishment, on the
working of which the safety of the establishment or
the workmen employed therein depends;
iv. Any postal, telegraph or telephone service;
v. Any industry which supplies power, light or water to
the public;
vi. Any system of public conservancy or sanitation;
vii. Any industry specified in the first schedule.
Authorities under the Act
The Act has set up machinery to deal with
the Industrial Disputes. These authorities are
meant for dealing with the Industrial Disputes.
Even though the name authority is used, it does
not mean each and every authority has power to
make a binding decision.
The Authorities are:
iii. Works Committee (Section 3)
iv. Conciliation Officer (Section 4,11 & 12)
v. Board Of Conciliation (Section 11 & 13)
vi. Court Of Inquiry (Section 6,10,11 &14)
vii. Labour Court (Section 7,11 &15)
viii. Industrial Tribunal (Section 7A,11 & 15)
ix. National Tribunal (Section 7b,11 & 15)
Award & Settlement
 Award: means an interim or final determination of
any Industrial Dispute to any question relating
thereto, by any Labour Court, Industrial or National
Tribunal and includes arbitration award made under
section 10A.
 Settlement (Section 18-21): means a settlement
arrived at in the course of conciliation proceedings
and includes a written agreement between the
employer and workman arrived at, otherwise than
in the course of conciliation proceedings where
such agreement has been signed by the parties
thereto in such manner as may be prescribed and a
copy thereof has been sent to an officer authorized
in this behalf by the Appropriate Government and
Strikes
 Strike: means cessation of work by a body of
persons in any Industry:-
a. Acting in combination, or
b. A concerted refusal, or
c. A refusal under a common understanding,
of any number of persons who are or have been so
employed to continue to work or accept
employment.
Strike is a weapon in the hands of the workmen, in the
process of collective bargaining. Strike tests the
economic bargaining power of each side and forces
each of them to face the need it has for others
contribution. The economic pressure of the strike is
the catalyst which makes the agreement possible.
Collectively bargaining is a process of reaching
agreement and strikes are an integral and
frequently necessary part of that process.
Strikes: in Public Utility Services
Section 22 says “In case an industry is a public
utility service, no person employed in it shall g
o on strike in breach of contract-
a. Without giving to the employer notice of a
strike, provided within 6 weeks before striking,
b. Within 14 days of giving such notice, or
c. Before the expiry of the date of strike specified
in any such notice; or
d. During the pendency of any conciliation
proceedings before a conciliation offices and 7
days after the completion of these
proceedings”
Strikes: in Public Utility Services
 Notice of strike should be in prescribed form.
 The copy of this notice is to be submitted to the
conciliation officer, or such authority as may be
prescribed by the Appropriate Government.
 The employer, on receipt of notice of strike from
employees, shall report within 5 days to-
a. Appropriate Government
b. Authority prescribed by the Appropriate
Government- which states the number of notices
received on that day.
 The date on which the workman proposed to go
on strike should be specified in the notice.
 A fresh notice is necessary when the date of strike
specified in the original notice expires.
Strikes: in Public Utility Services
A new notice is necessary, when the
conciliation proceedings fail, which have
started after the notice.
The object of giving the notice is to allow the
other party to come to terms, or to approach
the authorities to intervene and stop the strike,
if possible.
During the period of notice, the parties can
respond to each other.
Illegality attaches only to that period which
remains to expire before the commencement of
action.
Strikes: General Prohibition
 Section 23 states the general prohibition of strike.
 No workman who is employed in any Industrial
Establishment shall go on strike in the following
circumstances:
a. During the pendency of conciliation proceedings before a
Board and 7 days after the completion of these
proceedings;
b. During the pendency of proceedings before a Labour
Court, Industrial Tribunal or National Tribunal, and 2
months after the completion of these proceedings;
c. During the pendency of arbitration proceedings before an
arbitrator and 2 months after the completion of these
proceedings; where notification has been issued under S
10A(3A)
d. During any period in which a settlement or award is in
operation in respect of any of the matters covered by the
Lock-outs
 Lock-out [Section 2(I)] means-
a. The temporary closing down of a place of employment,
b. The suspension of work, or
c. The refusal by an employer to continue to employ any
number of persons employed by him.
 As strike is a weapon in the hands of workmen for
enforcing their demand, lock-out is a weapon in the
hands of the employer to persuade the workers to
agree to his point of view and accept his demands in
the struggle between capital and labour.
 The notice of lock-0ut shall be given in prescribed
manner.
 On event of employer giving notice of lock-out on any
day to any person employed by him, he shall report
the number of notices given to the Appropriate
Government, within 5 days of giving such a notice.
Prohibition of Lock-outs
 The conditions of lock-outs in public utility services
are dictated under Section 22 and are same as the
conditions of Strikes.
 The provisions for general prohibition of lock-outs
are dictated under Section 23, same as the
provisions of Strikes.
 The notice of lock-out is not necessary when a lock-
out is already existent in case of a public utility
service.
 However, the employer shall send intimation of
lock-out to the authority specified by the
Appropriate Government, on the day of declaration
of lockout itself.
Strikes & Lockouts: Wages &
Justification
 Wages are generally not provided during the period
of strikes when it is proven illegal under the Act.
 However, the factor of justification of reasons
leading to the Act of going on strike, also decide
the payment or non-payment of wages to the
workmen.
 If a strike is not justified, but legal; or if a strike is
illegal, but duly justified, the workmen are entitled
to receive wages for the period of the strike.
 A lock-out in violation of the statutory requirements
is illegal and unjustified and workers are entitled to
wages for the lock-out period.
 For a legal lock-out, no wages are payable to the
workmen.
Strikes & Lock-outs: Penalties
 Prohibition of financial aid to illegal strikes or lock-
outs (S.25)
 Penalty for illegal strike (S.26): Any workman who
commences, continues or acts in furtherance of an
illegal strike shall be punishable with imprisonment
up to 1 month, or fine up to Rs.50 or both.
 Penalty for instigation (S.27): Any person who
instigates or incites other to take part in a strike or
lock-out which is illegal shall be punishable with
imprisonment up to 6 months or with fine up to
Rs.1000 or both.
 Penalty for giving financial aid to illegal strikes and
lock-outs (S.28): Punishable with imprisonment up
to 6 months or fine up to Rs.1000 or both.
Lay-Offs
Lay-Off means:
i. The failure
ii. Refusal, or
iii. Inability of an employer on account of shortage
of:
a. Coal,
b. Power or raw materials, or
c. The accumulation of stocks, or
d. The break-down of machinery, or
e. Natural calamity, or
f. For any other connected reason to give
employment;
to a workman whose name is borne on the muster
rolls
of his industrial establishment and who has not
Lay-Offs
 Lay-Off means putting aside workmen temporarily.
 The duration of a Lay-Off should not be longer than
that of the current emergency.
 The employer – workman relationship does not
come to an end, but is suspended during the period
of emergency.
 The workman’s name should be essentially present
on the muster rolls of the industry for claiming
relief.
 The workman should not have been retrenched.
 If work is given by the employer on a different shift,
it would be considered as a half-day lay-off.
 If employment is not given within two hours, it
Lay-Offs: Rules and Provisions
The payment of compensation for a lay-off is
dependent upon-
a. Status of a workman, i.e., badli, casual, or
permanent
b. Type of service, i.e., continuous or seasonal
c. Number of workmen in the Industrial
Establishment
 Industrial Establishments are classified into
three groups depending on the number of
workers employed in that establishment:
i. Where the number of workmen is less than 50
ii. Where the number of workmen is 50 – 100
Lay-Offs: Compensation
 Compensation is provided to the workmen in an
Industrial Establishment on the basis of the
category they fall in from the above mentioned
three groups:
i. Nil compensation for IEs with less than 50 workmen.
ii. Compensation at the rate of 50% of the total basic
pay and dearness allowance to a time limit of 45
days for IEs with 50 – 100 workmen.
iii. Compensation at the rate of 50% of the total basic
pay and dearness allowance to a time limit of 45
days for IEs with more than 100 workmen.
 Workmen are not entitled to any compensation if
alternate employment is provided by the
employer in a radius of 5 miles, or if the lay-off is
Lay Offs: Penalties
 The employer of the Industrial Establishment is
required to prepare a muster register that shows
the name and other requisite details of all workmen
in the prescribed format.
 Section 25M states that an employer of an
Industrial Establishment employing 100 or more
workmen on average per day in the preceding 12
months is required to obtain previous permission of
specified authority appointed for the purpose by
the Appropriate Government, by a notification by
the official Gazette.
 Section 25Q says any employer who contravenes
the provision of Section 25M shall be punishable
with imprisonment up to one month, or fine up to
Retrenchment
 Retrenchment [S.2(oo)]: means the termination by
the employer of the service of a workman for any
reason whatsoever, otherwise than as a
punishment inflicted by way of disciplinary action,
but does not include-
a. Voluntary retirement of workman, or
b. Retirement of the workman on reaching the age of
superannuation, if his contract contains a stipulation
in this behalf, or
c. Termination of the service of a workman as a result
of non-renewal of the contract of employment, or
d. Termination of employment of a workman on the
ground of continued ill health.
 The word ‘ill health’ means cataract, physical
unfitness, infirmity due to old age, incapacity to
Retrenchment
 Retrenchment means the discharge of surplus
labour.
 It is not necessary that removal must be only when
the establishment is in loss.
 The Supreme Court has interpreted the term
retrenchment in stricter sense of it, that is to say, it
means termination of service for any reason
whatsoever.
 Retrenchment connotes in its ordinary acceptation
that the business itself is being continued but that
a portion of the staff of labour force is discharged a
surplusage.
 Where a worker suffers an accident during the
course of employment making him unfit for the job,
termination on this ground is illegal.
Retrenchment: Provisions &
Rules
 Provisions are divided into two main categories
which are as follows:
i. Where number of workmen employed is less than
100,
ii. Where number of workmen employed is more than
100.
 Section 25F: No workman employed in any
industry who is in continuous service for not less
than one year under an employer shall be
retrenched until-
a. The workman is given one month’s notice in writing
indicating the reasons for retrenchment and the
period of notice has expired, or
b. In case one month’s notice is not given, the
Retrenchment: Provisions &
Rules
c. The workman is paid at the time of retrenchment,
compensation which shall be equal to 15 days
average pay for every completed year of continuous
service or any part thereof in excess of six months,
and
d. Notice in the prescribed manner is served on the
Appropriate Government.
• Section 25G: The normal rule is to retrench first of
all the junior most workman. If an employer has
sufficient reasons to depart from this rule, only
then he can do so, but the reasons have to be
recorded.
• The LIFO (Last In First Out) Principle is mentioned
in the Section 25G, which states that the workman
who is employed last will be retrenched first.
Retrenchment: Provisions &
Rules
 Section 25H gives a statutory right of reemployment to
the retrenched workmen.
 If the employer wants to take the workmen in future, the
retrenched workman has a right of preference over the
others.
 This provides for preferential reemployment of the
retrenched workmen.
 The employer should take precaution that he pays the
retrenchment compensation at the time of
retrenchment.
 In case the workman denies to accept compensation for
the same, the employer should have sufficient proof
that retrenchment compensation was offered to the
workman, and clearly denied by him.
Retrenchment: Provisions &
Rules
 Section 25K points out that the provisions of this
chapter are applicable to Industrial Establishments
employing 100 or more workmen on average per
working day for the preceding 12 months.
 This establishment should not be of a seasonal
character or in which work is performed only
intermittently.
 Section 25N specifies that no workman who is in
continuous service for not less that one year under an
employer shall be retrenched until-
a. The workman has been given three months notice in
writing indicating the reasons for retrenchment and the
notice period has expired or the workman has been paid
in lieu of such notice, wages for the period of notice.
b. Notice in the prescribed manner has been given to the
Appropriate Government and permission is granted.
Retrenchment: Provisions,
Penalties
c. Workman has been paid compensation at the time of
retrenchment which shall be equal to 15 days average
pay for every completed year of continuous service or
any part thereof in excess of six months.
d. Inquiry is made by the Appropriate Government or
specified authority and granting or refusing permission
for the reasons to be recorded in writing.
e. In case retrenchment is effected without making an
application or where the permission for retrenchment is
refused retrenchment shall be deemed to be illegal from
the date on which it is effected and the workman shall be
entitled to all the benefits that are available to him under
the law.
• Section 25Q specifies that any employer who
contravenes the provisions of Section 25N shall be
punishable with imprisonment up to one month or fine
up to Rs.1000 or both.
Closure: Definition & Provisions
Closure [Section 2(cc)]: means permanent
closing down of a place of employment or part
thereof.
The provisions about closure are to be
understood with reference to-
a. Type of service:- i.e., continuous service or not
(same as layoff)
b. Number of workmen employed;-
i. No. of workmen less than 50
ii. No. of workmen 50 – 100
iii. No. of workmen 100 or more.
• The closure of an undertaking is subject to
the restrictions imposed by the statutory
Closure: Rules & Provisions
 Where number of workmen employed is less than 50 [Section
25 FFA & Section 25 FFF], if an undertaking is closed down for
any reason whatsoever, every workman who has been in
continuous service for not less that one year in that
undertaking immediately before such closure shall be entitled
to notice and compensation as if the workman has been
retrenched.
 If the undertaking is closed down on account of unavoidable
circumstances beyond the control of the employer, the
compensation payable to the workman shall not exceed his
average pay for three months.
 If an undertaking is set up for the construction off buildings,
bridges, roads, canals, dams, or other construction work and
it is closed down on account of completion of the work within
2 years from the date on which the undertaking is set up,
then no workman employed by the undertaking shall be
entitled to any compensation.
 In case the construction work takes more that 2 years for
completion after it is set up, then the workman will be
entitled to both notice and compensation as per the rules of
Closure: Rules & Provisions
 Where number of workmen employed is more than
50, but less than 100 [Section 25 FFA]:-
a. The employer who intends to close down his
undertaking shall have to serve at least sixty days
notice in the prescribed manner on the Appropriate
Government before the date on which the intended
closure is to become effective. The reasons for the
same have to be clearly stated.
b. No notice is required when:-
i. The number of workmen employed is less than 50, or
ii. An undertaking is set up for the construction of buildings,
bridges, canals, roads, dams or for other such projects.
iii. The Appropriate Government is satisfied than; owing to
exceptional circumstances like accident in the
undertaking, death of employer or similar reason, no
Closure: Rules & Provisions
c. The compensation payable is the same as if applicable to an
undertaking employing less than 50 workmen.
d. The notice to be given is only information to the Appropriate
Government. The notice does not mean that any previous
sanction of the Appropriate Government is required for the
closure of an undertaking.
• Where the number of workmen is 100 or more [Section 25-
O], an employer who intends to close down his undertaking
shall apply to the Appropriate Government for prior
permission, 90 days before the intended date of closure.
• Copy of this application should also be served on the
representatives of the workmen in the prescribed manner.
• No such application to the Appropriate Government is
required when the construction is the case of canals,
bridges, buildings, etc.
• Workmen shall be entitled to compensation in case of a
legal closure, at the rate of 15 days wages for every
completed year of continuous service.
Closure: Penalties
 Penalty for closure [Section 25R]:- Any employer who closes
down an undertaking without complying with the provisions
of Section 25-) shall be punishable with imprisonment up to
six months or fine up to Rs.5000 or both.
 Penalty for closure without notice [Section 30A]:- An employer
who closes down any undertaking without complying with the
provisions of Section 25FFA shall be punishable with
imprisonment up to six months or fine up to Rs.5000 or both.
 Any employer who contravenes an order refusing to grant
permission to close down an undertaking under Section 25-
O(2) shall be punishable with imprisonment up to one year, or
fine up to Rs. 5000 or both.
 Where the contravention is continuing even then, with a
further fine up to Rs.2000 for every day during which the
contravention after conviction continues can be imposed.
Case Law Studies
1) Syndicate Bank V/s Umesh Nayak
HELD:- The Supreme Court has observed that
strike or lock-out is to be resorted to, only in
unavoidable circumstances and to compel the
other party to see the justness of the demands
and is not intended to cause nuisance or
physical danger to their employers or others.
2) Hindustan Cables V/s Labour Court
HELD:- Resorting to strikes or lock-outs without
negotiations or conciliations is unjustified.
Case Law Studies
3) Central India Spinning, Weaving &
Manufacturing Co. Ltd., V/s State Industrial
Court
HELD:- The Bombay High Court said the key words
“the failure, refusal, or inability of an employer”
in the definition of lay-off make it clear that the
unemployment has to be on account of a cause
which is independent of any action or inaction
on part of the workmen themselves.
5) Morinda Co-op. Sugar Mills V/s Ramakrishnan
HELD:- Where seasonal worker ceases to do work
due to closure of the season it is not
retrenchment.
The Payment Of Wages Act,
1936
Introduction
Applicability
Important Definitions
Rules relating to Payment of Wages
Compensation & Penalties
Case Law Studies
Introduction
Preamble – To regulate the proper and timely
payment of wages to different classes of
workers.
Important features of the Act-
 Remedies & compensations relating to:
Ø Wrongful deductions made from wages
Ø Delay in payment of wages
Ø Non-payment of wages
 Provisions in the Act:
Ø Permissible deductions from wages
Ø Timely payment of wages
Ø Mode of payment of wages
Ø Reasonable rates of recovery
Applicability
 The Payment Of Wages Act is applicable to the
whole of India.
 The Act is applicable to any employee in a factory,
employees of the railway industry, including those
who are employed through a sub-contractor.
 It is also applicable to employees working in any
Industrial or Other Establishment, or any other
Establishment stated under Sections [2(i)(a) to
2(i)(g)] of the Payment Of Wages Act.
 The Act covers all those employees who draw a
monthly salary of less than Rs.6500
Important Definitions
 Appropriate Government [S.2(i)] is the Central
Government in relation to:
a) Railways
b) Air transport services
c) Mines and oil fields
The State Government is the Appropriate Government
in all other cases.
 Industrial Establishment [S.2(ii)] means any-
a) Tramway service, or motor transport service for
passengers or goods or both by hire or for reward;
b) Dock, wharf, or jetty,;
c) Inland vessel, mechanically propelled;
d) Mine, quarry or oil field;
e) Plantation;
Important Definitions
f. Workshop, or other establishment, where articles
are
i. Produced,
ii. Adapted, or
iii. Manufactured,
with a view to their use, transport, or sale.
 Wages [S.2(vi)] means all remuneration (whether
by way of salary, allowances or otherwise)
expressed in terms of money, or capable of being
so expressed which would, if the terms and
conditions of employment, whether expressed or
implied, be payable to a person in respect of his
employment or any work done in such
Important Definitions
a. Any remuneration payable under any award or
settlement between the parties or order of court;
b. Any remuneration to which the person is employed is
entitled in respect of overtime work, or holidays or
leave period;
c. Any additional remuneration payable (bonus);
d. Any sum paid on the event of termination of
employment;
e. Any sum to which the a person is entitled under any
scheme which is framed under a law currently in
force.
But, it does not include-
a. Value of house accommodation, medical and other
facilities, amenities and travelling, medical and other
allowances;
b. Contribution paid by the employer to any pension or
provident fund;
Rules relating to Payment of
Wages
 Responsibility for Payment of Wages [S.3]: Payment
means transfer of money from one person to
another to satisfy a debt or an obligation.
 Every employer is responsible for the payment of
wages but this responsibility is also cast on other
persons; they are:
a. In case of factories, the manager of the factory
b. In case of an Industrial Establishment, the person in
the post having control and supervision in the
establishment
c. In case of railways, the person nominated for the
payment of wages
d. In case of a contractor, the person designated by
the contractor
e. In any other case, the person designated by the
employer as a person responsible for complying with
the provisions of the Act.
Rules relating to Payment of
Wages
 Fixation of Wage Periods and time of Payment of
Wages [S.4&5]
 Every person responsible for payment of wages shall
fix wage periods.
 A wage period shall not exceed one month.
 Wage period can be daily, weekly, fortnightly, or
monthly.
 In case of a Factory or Industrial Establishment or
Railways, wherein less than 1000 employees are
employed, the wages shall be paid within 7 days after
the expiry of the wage period.
 In any other case, wages shall be paid before the
expiry of the 10th day after the last day of the wage
period.
 In case of docks, wharfs, jetties and mines, wages are
to be paid before the expiry of the 7th day on
Rules relating to Payment of
Wages
 Mode of Payment of Wages [S.6]
 Under the Payment of Wages Act, wages cannot be
paid in kind. They must be paid in current coins or
currency notes or both.
 The employer may, if he desires, after obtaining the
written authorization of the employed person pay his
wages either by cheque or by crediting the wages in
the bank account.
 Deductions which may be made from Wages [S.7]
 The usual rule of the payment of wages is that the
employed person shall be paid his wages without any
kind of deductions except those authorized under this
Act.
 Thus, the Section 7 of this Act is critical.
Authorized Deductions
 Fines [S.8]: An employer may impose a penalty or
fine on an employed person.
 While imposing such fine, the employer has to obtain
prior approval from the Appropriate Government to
the acts and omissions for which the fine many be
imposed.
 The employed person will be given a chance to show
cause against imposing of the fine.
 Fine cannot be recovered at a rate more than 3% of
the total wages in the respective wage periods.
 Fine cannot be imposed on a person below the age of
15 years.
 Fine cannot be recovered in installments.
 Fine should be recovered within 3 months from the
date of imposition of fine.
Authorized Deductions
Deductions for absence from duty [S.9]: An
employer has the power to deduct wages for
absence from duty.
 The deduction may be for absence for a whole,
or part of a day.
 The deduction shall be in proportion to the time
for which an employed person is absent from
duty.
 A person shall be considered as absent from
duty, in case although present in the
establishment,
i. When he is absent from the place of work where he
is required to be present and work, or
ii. When he refuses for any unreasonable cause, or
Authorized Deductions
 Deduction for Damage or Loss [S.10]: If the goods
are expressly entrusted to the employed person for
custody or in case he loses money which he is
required to account, where loss/damage is directly
attributable to damage or neglect or the default on
his part, deductions from wages can be made.
 The deducted amount shall not exceed the amount of
the damage or loss caused to the employer.
 The employer shall give an opportunity to the
employee to show cause against the fine before
making deductions.
 Such deductions have to be recorded in the
prescribed register and kept by the person
responsible for payment of wages.
Authorized Deductions
 Deductions for Services Rendered [S.11 & 7(2)]:
 House accommodation: Supplied by the employer or
the Government or any housing board; such
deductions cannot be made unless the employed
person has accepted the amenity as term of
employment and such deduction shall not exceed an
amount equal to the value of actual house
accommodation amenity.
 Deductions for such amenities and service supplied
by the employer ad the Appropriate Government
may, by a general or special order authorize; these
deductions can be made only when such supply is
accepted as term of employment by the employed
person.
 The term ‘services’ does not include the supply of
tools and raw materials, or protective measures
Authorized Deductions
 Deductions for Recovery of Advances [S.12]: This is
subject to the following conditions-
a. Recovery of an advance of money given before
employment began can be made from the first
payment of wages in respect of complete wage
period.
b. Recovery of advance of money given after
employment began and of wages not already
earned is subject to the conditions imposed by the
Appropriate Government.
c. Recovery of advances of wages not already earned
shall be according to the rules made by the
Appropriate Government including the installments
by which they may be recovered.
 Deductions for Recovery of Loans [S.12-A]: can be
made as per the rules approved by the Appropriate
Government regulating the extent to which such
Authorized Deductions
 Deductions for Payments to Cooperative Societies
and Insurance Schemes [S.13 & 7(2)]: These
deductions shall include-
a. Deductions for payments to cooperative societies
approved by the Appropriate Government or to a
scheme of insurance maintained by the Indian Post
office.
b. Deductions made with the written authorization of
the employed person for-
i. Payment of any premium on his life insurance policy to
LIC of India, or
ii. Purchase of Government securities, or
iii. Payment of contribution to any fund or a trade union.
iv. Payment of membership fees to trade union.
v. Contribution to Prime Minister’s National Relief Fund
Authorized Deductions
 Other Deductions:
 Deduction of Income Tax payable by an employed
person.
 Deductions according to the order of a court or other
authorities competent to make such order.
 Deductions for subscriptions to and repayment of
advances from any provident fund approved by the
Appropriate Government.
 Deductions for payment of insurance premium on
Fidelity Guarantee Bonds.
 Limit on Deductions [S.7(3)]: The deductions from
wages for the permissible deductions shall not
exceed-
 75% including payments to cooperative societies.
 50% in any other cases
 In case of exceeds in limits of deductions, balance
may be recovered in the manner prescribed by the
Appropriate Government.
Remedy & Compensations
The Payment of Wages Act provides for the
constitution of a separate authority for any
specified area to hear and decide claims arising
out of deductions from the wages or delay in
the payment of wages.
The authorities include:
a. Commissioner of Workmen’s Compensation, or
b. Regional Labour Commissioner, or
c. Assistant Labour Commissioner,
d. Presiding officer of Labour Court or Industrial
Tribunal, or
e. Judicial Magistrate.
f. Experienced Judge of a civil Court
Remedy & Compensations
 Application: A person himself or any legal practitioner or
any official of a Registered Trade Union authorized in
writing to act on behalf of such person or any inspector
under this Act
 Period: Such a claim is to be made within 12 months
from the date on which the deductions were made, or
from the date on which payment of wages was to be
made.
 Compensation: If the authority is satisfied that there
were wrongful deductions, it may in addition to the
refund of the amount wrongfully deducted require the
employer to pay compensation not exceeding 10 times
the actual amount of deductions.
 In case of delayed wages, the employer may be directed
to pay the wages immediately and also impose a
Case Law Studies
Arumugham V/s Jawahar Mills
HELD:- The expression in Sections [15-17] not only
includes ‘delayed wages’ but also covers
‘refused wages’.
Upper India V/s J.C.Mathur
HELD:- The word ‘deduction’ in Section 15 appears
to have been used in a very wide sense so as to
include the ‘entire deficiency’ which the
employee alleges to have been caused in the
Payment of Wages as a result of withholding of
the same by the employer partially or wholly.
Parmeshwar V/s Atti
HELD:- Payment signifies satisfaction of a claim.
The Minimum Wages Act, 1948
Introduction
Important Definitions
Fixation & Revision Of Wages
Other Provisions
Case Law Studies
Intoduction
 The object of this Act is to secure the welfare of the
workers in a competitive market by fixing the Minimum
rates of wages in certain employments.
 The justification for statutory fixation of minimum wages
is clear form the following facts:
 Poorly developed workers organization.
 Poor bargaining power of workers.
 Continuous labour struggle demand for increase in wages,
resistance to decrease in wages, and grant of benefits,
allowances, etc.
 The Act has been modified in the recent past to apply to
all industrial establishments and their employees that
are involved in any work or job that fits in the schedule
to this Act, fitting the description of ‘Scheduled
Employments’
 The Act intends to prevent exploitation of labour and
also has many provisions that ensure the minimum
wages, wages for overtime, maximum duration of daily
work & weekly day of rest.
Important Definitions
 Employer [S.2(e)]: means- any person who:
a. Employs
b. Whether directly or through another person
c. Whether on behalf of himself or any other person
d. One or more employees in any scheduled
employment
e. In respect of which rates of minimum wages have
been fixed.
 Cost of Living Index Number [S.2(d)]: in relation to
employees in any scheduled employment in
respect of which minimum rates of wages have to
be fixed, means:
a. The index number
b. Ascertained and declared
c. By the competent authority by notification in the
Official Gazette
d. To be the cost of Living Index Number
Important Definitions
 Scheduled Employment [S.2(g)] means-
a. An employment specified in the schedule, or
b. Any process or branch of work forming part of such
employment.
The schedule is divided into two parts:
Part-I:
e. Woolen carpet making or shawl weaving, etc.
f. Rice mill, Flour mill, Dal mill, etc.
g. Bidi, Tea, Oil, Coffee, Rubber, Stone, etc.
h. Glass industry
i. Employment under any local authority
Part-II:
k. Agriculture, Horticulture, Poultry, Dairy Farming, etc.
l. Cleaning and sorting of onions and other incidental
work.
Important Definitions
 Wages [S.2(vi)] means all remuneration (whether by
way of salary, allowances or otherwise) expressed in
terms of money, or capable of being so expressed which
would, if the terms and conditions of employment,
whether expressed or implied, be payable to a person in
respect of his employment or any work done in such
employment, and includes-
a. Any remuneration payable under any award or settlement
between the parties or order of court;
b. Any remuneration to which the person is employed is
entitled in respect of overtime work, or holidays or leave
period;
c. Any additional remuneration payable (bonus);
d. Any sum paid on the event of termination of employment;
e. Any sum to which the a person is entitled under any scheme
which is framed under a law currently in force.
Important Definitions
 Employee [S.2(i)]: means any person:
a. Who is employed for hire or reward,
b. To do any work,
c. Skilled or unskilled,
d. Manual or clerical,
e. In Scheduled Employment,
f. In respect of which minimum wages have been
fixed.
But, it does not include-
a. Value of house accomodation, medical and other
facilities, amenities and travelling, medical and
other allowances;
b. Contribution paid by the employer to any pension or
provident fund;
c. Any special expenses and gratuity paid at
Important Definitions
 Appropriate Government [S.2(i)] is the Central
Government in relation to:
a) Railways
b) Air transport services
c) Mines and oil fields
The State Government is the Appropriate Government in all
other cases.
 Employer [S.2(g)]: means-
i. In relation to an industry carried on by or under the
authority of any department of the Central Government
or a State Government – the authority prescribed in this
behalf;
ii. In relation to an industry carried on by or on behalf of a
local authority – the Chief Executive Officer of that
authority.
Minimum Wages: Fixation &
Revision
 Appointment of Committee:
a) The Government may appoint as many committees
an sub committees as it consider necessary to hold
inquiries and advise it in respect of such fixation or
revision.
b) After considering the advise of such committees or
sub committees the Appropriate Government
notifies the fixation or revision of Minimum Rates of
Wages.
c) Such wages come into force on the date determined
in the notification.
d) If no date is mentioned, then on the expiry of 3
months from the date of issue of notification, the
rates of wages and other conditions attached to it
will expire.
e) The object of the procedure is to enable the
Government to reach a balanced conclusion relating
Minimum Wages: Fixation &
Revision
 By a Notification:
a) The Appropriate Government may, by a notification,
publish its proposals about the fixation of Minimum
Rates of Wages.
b) For the information of all the persons likely to be
affected thereby.
c) It shall specify in the notification the date on which
the proposals shall be taken into consideration.
d) Such date shall not be less than 2 months from the
date on which the proposals have been notified.
e) After considering all the representations received by
it within the specified time.
f) It shall notify the minimum wages was fixed or
revised by it.
Minimum Wages: Fixation &
Revision
 By a Notification (contd.):
f) Such Minimum Rates of Wages come into force from
the date mentioned in the notification.
g) If no date is mentioned, then on the expiry of 3
months from the date of issue of notification, the
rates of wages and other conditions attached to it
will expire.
h) While adopting this method the Appropriate
Government is also required to consult the Advisory
Board.
i) The Advisory board is appointed by Appropriate
Government for the purpose of coordinating the
work of different committees and sub committees
and also for advising the Government in matters of
fixation and revision of minimum wages, and also
Minimum Wages: Fixation &
Revision
 The provision relating to fixation of minimum rates
of wages are given in Section 3 as follows:
1) Fix the Minimum Rates of Wages payable to
employees employed in an employment specified in
the schedule, and
2) In the employment added to the schedule by a
notification.
3) The Appropriate Government may, in respect of
employees employed in an employment specified in
Part-II of the schedule, fix rates for
i. Part of the State, or
ii. For any specified class or classes of such employment in
the whole state or part of state.
iii. Instead of fixing Minimum Rates of Wages for the whole
State.
4) The Appropriate Government shall review at such
intervals not exceeding 5 years, the Minimum Rates
Minimum Wages: Fixation &
Revision
5) When the Appropriate Government fails to revise the
rates of Minimum Wages within 5 years, it can do so even
after the expiry of 5 years as it feels necessary.
6) Until the rates of Minimum Wages are revised, the rates
of Wages before the expiry of 5 years shall continue to be
in force.
7) The Appropriate Government my not fix the rates of
Minimum Wages in respect of any schedules employment
in which there are less than 1000 employees engaged in
the whole State.
8) The Appropriate Government may fix rates of Minimum
Wages which may be in the form of Minimum Rates for:-
a) Time Work (Minimum Time Rate)
b) Piece Work (Minimum Piece Rate)
c) Remuneration; time work basis (Guaranteed Time Rate)
d) Minimum rate in respect of overtime (Overtime Rate)
Other Provisions
 Sections [3-5] deal with the fixation and revision of Minimum
Wages
 Section 3 says the Appropriate Government has powers to fix
the Minimum Wages payable to the employees employed in
any scheduled employment.
 Section 4 gives the content of Minimum Wages.
 Section 5 gives the procedure for fixing and revising the
Minimum Wages.
 Section 12 says that it is absolutely necessary for an
employer to pay every employee engaged in Scheduled
employment in the Minimum Rates of Wages fixed by the
Government without any deductions except those as may be
authorized.
 Section 16 says that in case an employee does 2 or more
classes of work to each of which a different Minimum Rates of
Wages is applicable, the employer shall pay to such employee
Other Provisions
him in each class of work, wages not less than the Minimum
Rates of Wages applicable to each such class.
 Maintenance of Registers and Records (Section 18)
Every employer shall maintain Registers and Records giving:
ii. Particulars of Employees
iii. Work performed by Employees
iv. Wages paid to Employees
v. Receipt given by the Employers
vi. Other particulars in such form as may be prescribed
 Rates of Overtime (Section 14)
i. Where an employee works overtime, the employer shall pay him
over time wages for every hour worked in excess at the rates fixed
by the Appropriate Government.
ii. The provisions of Minimum Wages Act shall not affect the provisions
of Factories Act relating to payment of over time at twice the
minimum rate of normal wages.
Other Provisions
 Claims (Section 20)
The Appropriate Government may appoint an
authority to hear out and decide the claims relating
to –
ii. Payment of less than Minimum Rates of Wages.
iii. Payment for days of rest.
iv. Payment for work done on days of rest.
v. Wages for the overtime work.
Who may apply to:
vii. Employee himself, or
viii. Any legal practitioner,
ix. Registered Trade Union,
x. Any Inspector, or
xi. Any person with the permission of authority.
Other Provisions
 Fixing Hours for Normal Working Day (Section 13)
(A) In regard to any Scheduled Employment the
Appropriate Government may –
1) Fix the number of hours of work which will
constitute a normal working day including intervals.
2) Provide a day of rest in every 7 days and payment
of remuneration for such days.
3) Provide for working on the day of rest at over time
rate or more.
(B) For the following classes of Employees the
above provisions will apply subject to the
prescribed conditions–
1) Employees engaged in urgent or emergency work.
2) Employees engaged in intermittent work.
3) Employees engaged in work dependent on irregular
action of natural forces.
Other Provisions
 Wages in Kind (Section 11)
1) Wages under the Minimum Wages Act have to be
paid in cash.
2) However, if there is a custom to pay wages fully or
partly in Kind, the Appropriate Government may
authorize the payment of Minimum Wages either-
a. Fully, or
b. Partly, in Kind.
3) If the Appropriate Government is satisfied, then it
may authorize the supply of essential commodities
at concessional rates.
4) The value of wages in kind and of concessions in
respect of supplies of essential commodities shall be
estimated in the prescribed manner.
Case Law Studies
 Arvind Mills Ltd. V/s K.R. Gadgil
HELD:- The Bombay High Court has observed that “the
general purpose of the Act is to provide that
employed persons shall be paid their wages in a
particular form and at regular intervals without any
unauthorized deductions”
 D.P. Kelkar V/s Ambadas
HELD:- The definition of wages is not limited to
remuneration payable under an agreement or
contract. It applies to all kinds of remuneration,
whether arising from-
• A contract,
• An award,
• A settlement, or
• Under a statute.
Case Law Studies
 Upper India V/s J.C. Mathur
HELD:- The word deduction in Section 15 appears to
have been used in a very wide sense so as to include
the ‘entire deficiency’ which the employee alleges to
have been caused in the payment of wages as a
result of the withholding of the same by the employer
partially or wholly.
 Gopalan V/s Augmati Chit Fund
HELD:- Statutory bonus of 8 1/3% is payable whether
there are profits to the accounting year or not. After
coming into force of the Payment of Bonus Act, bonus
has become an implied term of employment not
dependent upon the profits and therefore comes
under the category of remuneration. Viewed in this
light the wages as a general term would include
The Payment of Gratuity Act,
1972
Introduction
Important Definitions
Authorities under the Act
Payment & Provisions
Nomination
Case law Studies
Introduction & Preliminary
 Originally gratuity was considered as an amount
given freely and could not be demanded as a
matter of right by the employees.
 In many cases gratuity was given as a matter of
favor.
 Employees used to pay gratuity as a reward for
long, continuous and meritorious service.
 Various courts recognized the claim for gratuity and
awarded gratuity schemes.
 This custom of payment of gratuity became, in the
later days, a matter of right for the employees.
 With a view to ensure a uniform pattern of payment
of gratuity to the employees throughout the
country, the Central Government enacted the
Payment of Gratuity Act.
Important Definitions
 Appropriate Government [S.2(i)] is the Central
Government in relation to:
a) Railways
b) Air transport services
c) Mines and oil fields
The State Government is the Appropriate Government in all
other cases.
 Employer [S.2(g)]: means-
i. In relation to an industry carried on by or under the
authority of any department of the Central Government
or a State Government – the authority prescribed in this
behalf;
ii. In relation to an industry carried on by or on behalf of a
local authority – the Chief Executive Officer of that
authority.
Important Definitions
 Employee [S.2(i)]: means any person:
a. Who is employed for hire or reward,
b. To do any work,
c. Skilled or unskilled,
d. Manual or clerical,
e. In Scheduled Employment,
f. In respect of which minimum wages have been fixed.
But, it does not include-
a. Value of house accommodation, medical and other
facilities, amenities and travelling, medical and other
allowances;
b. Contribution paid by the employer to any pension or
provident fund;
c. Any special expenses and gratuity paid at
termination of employment.
Important Definitions
 Wages [S.2(s)] means all remuneration (whether by way
of salary, allowances or otherwise) expressed in terms
of money, or capable of being so expressed which
would, if the terms and conditions of employment,
whether expressed or implied, be payable to a person in
respect of his employment or any work done in such
employment, and includes-
a. Any remuneration payable under any award or settlement
between the parties or order of court;
b. Any remuneration to which the person is employed is
entitled in respect of overtime work, or holidays or leave
period;
c. Any additional remuneration payable (bonus);
d. Any sum paid on the event of termination of employment;
e. Any sum to which the a person is entitled under any scheme
which is framed under a law currently in force.
Important Definitions
Retirement [Section 2(q)]:
It means the termination of service of an
employee otherwise than on superannuation.
This definition is framed in the widest sense.
Retrenchment is also termination of service. It
implies discharge of surplus labour.
Superannuation [Section (2)]:
In relation to an employee, it means-
• The attainment by the employee of such age as
is fixed in the sontract, or conditions of service,
as the age on the attainment of which the
employee shall vacate the employment.
Authorities Under The Act
 Inspectors [Section 7(A)]
a) The Appropriate Government may appoint as many
inspectors as it deems fit.
b) The Appropriate Government may define the area to
which the authority of an inspector shall extend.
c) Every inspector shall be deemed to be a public
servant.
 Powers of Inspectors [Section 7(B)]: An inspector
may
a) Require an employer to furnish any information.
b) Enter and inspect any premises or place in any
factory, shop or establishment for the purpose of
examining any register, record or notice or other
documents, in relation to the employment of any
person or the payment of gratuity to the employees
c) Examine the employer or any person who is present
Authorities Under The Act
Controlling Authority [Section 3]
The Appropriate Government by a notification may
appoint any officer to be the controlling authority
who shall be responsible for Administration of
this Act. Different controlling authorities may be
appointed for different areas.
Powers of Controlling Authorities [Section 7(5)]
a) Enforcing the attendance of any person or
examining him on oath.
b) Requiring the discovery and production of
documents.
c) Receiving evidence on affidavits.
d) Issuing commissions for the examination of
witnesses.
Payment & Provisions
 Circumstances under which Gratuity becomes
payable to an employee [Section 4]
a) On termination of employment after he has
rendered continuous service of not less than 5
years, on his superannuation, retirement,
resignation, death or disablement due to accident or
disease.
b) In case of death of employee, the gratuity payable
to him shall be paid to his nominee. If there is no
nomination then to his legal heirs.
c) If any nominee or heir is a minor, the share of such
minor shall be deposited with the controlling
authority, who shall invest the same for the benefit
of such minor in such Bank or Financial Institution as
may be prescribed, until the minor reaches the age
of majority.
Payment & Provisions
 Rate of Gratuity [Section 4(2)]
a) An employee who is eligible for gratuity shall be paid for
every completed year of service or part of it in excess of
6 months, gratuity at the rate of 15 days wages for each
completed year of service.
b) Such gratuity is to be calculated on the basis of the rate
of wages last drawn by the employee.
c) In case of a piece rated employee, the rate of daily
wages shall be calculated o the basis of average of the
total wages earned by him for a period of 3 preceding
months before the termination of his employment.
d) In case of an employee employed in as seasonal
establishment, the rate of gratuity payable to him shall
be 7 days wages for each completed season.
e) In the case of a daily rated employee, he is to be paid
gratuity at the rate of daily wages multiplied by 15 for
every year of service.
f) In case of a monthly rates employee, the daily rate of
wages is arrived at by dividing the rate of wages last
drawn by 26. This rate is to be multiplied by 15 for
deciding the quantum of gratuity payable for a year.
Payment & Provisions
 Maximum Amount of Gratuity [Section 4(3)]
Payable to an employee shall not exceed Rs.3,50,000
(w.e.f. 24.9.97)
 Employment after disablement [Section 4(4)]
In case of an employee employed after disablement,
the gratuity shall be calculated in 2 parts:
b) For the period of employment before
disablement and
c) For the period after disablement at the reduced
rate.
 Better Gratuity Scheme [Section 4(5)]
a) If the employer has his own gratuity scheme which
is better than the scheme provided under this Act,
then the employees shall be entitled to gratuity as
per that scheme.
b) The Appropriate Government has powers to exempt
by a notification any establishment, factory, mine,
oil field, plantation, port, railway company or shop if
Payment & Provisions
 Forfeiture of Gratuity [Section 4(6)]
It gives the circumstances in which the gratuity
payable to an employee may be forfeited either
partly or wholly.
2) Partial Forfeiture: The gratuity of an employee
whose services are terminated for any act, willful
omission, negligence causing any damage, loss to,
or destruction of property belonging to the
employer; only to the extent of damage or loss so
caused.
3) Full Forfeiture: The gratuity payable to an employee
can be wholly forfeited:
a) If the services of an employee are terminated for his
riotous or disorderly behaviors or any other act of
violence on his part, or
b) If the services are terminated for any act which
Payment & Provisions
 Determination of Gratuity [Section 7]
a) As soon as the gratuity becomes payable, the employer
shall determine the amount of gratuity and give notice in
writing to that person to whom the gratuity is payable.
b) Notice is also given to the controlling authority specifying
the amount of gratuity so determined.
c) Calculation of gratuity is to be done by the employer
whether an application has been made or not.
 Mode of Payment of Gratuity [Sections 7(3),(3-A)]
a) The employer shall arrange to pay the amount of gratuity
within 30 days from the date it becomes payable to the
person.
b) If the gratuity is not paid in time the employer shall pay
interest at the rate notified by the Central Government.
c) No interest will be paid if the delay is due to the fault of
the employee and the employer has obtained permission
in writing from the controlling authority.
Payment & Provisions
 Dispute as to Gratuity [Section 7(4)]
a) If there is any dispute about-
i. Amount of gratuity payable to an employee.
ii. Admissibility of any claim.
iii. As to the person entitled to gratuity, the employer shall
deposit the amount which he admits is payable with the
controlling authority.
b) Where there is a dispute about the above matters the
employee can also make an application to the controlling
authority for taking necessary action.
c) The controlling authority, after making the enquiry and
giving the amount of gratuity payable to the employee.
Further, as a result of the enquiry if any additional
amount is payable to the employee, he shall direct the
employer to pay the additional amount.
d) The controlling authority shall pay the amount deposited
including the additional amount, if any, to the person
entitled.
Payment & Provisions
 Recovery of Gratuity
a) If the employee is not paid gratuity by the employer the
employee can make an application to the controlling
authority for the same. The controlling authority, if
satisfied, shall issue a certificate for recovery of the
amount to the collector.
b) The collector shall recover the amount as arrears of land
revenue.
c) Such arrears are payable to the employee together with
compound interest at such rate specified by the central
government.
d) This amount is to be recovered after the date of expiry of
the prescribed time.
e) The controlling authority, before issuing a certificate,
shall give a reasonable opportunity for the employer of
showing cause against issue of the certificate.
f) The amount of interest payable shall not exceed the
amount of gratuity.
g) The interest becomes payable only when the collector
Nomination
 Meaning- naming the person or persons, who shall be entitled
to the amount of gratuity if the employee dies before
receiving the amount.
 Family [Section 2(h)]: in relation to an employee, shall be
deemed to consist of:
3) Male Employees:
a) Himself.
b) His wife.
c) His children (whether married or unmarried)
d) His dependent parents.
e) Dependent parents of his wife.
f) Widow and children of his predeceased son, if any.
4) Female Employees:
a) Herself.
b) Her husband.
c) Her children (whether married or unmarried)
d) Her dependent parents.
e) Dependent parents of her wife.
f) Widow and children of her predeceased son, if any.
Nomination
 Every employee under this Act, is required to make
a nomination as per the following rules:
1) Employee to make nomination: Every employee who
has completed service of 1 year shall make a
nomination within 30 days after completing 1 year’s
service.
2) More than 1 nominee: An employee can, in his
nomination, distribute the amount of gratuity
between more than one nominee.
3) Family members to be nominated: If the employee
has a family at the time of nomination, the
nomination can be made favoring member or
members of his family.
4) No Family: If the employee does not have a family,
then nomination can be made in favor of any
Nomination
5) Family after nomination: If the employee acquires a
family afterwards, such nomination becomes invalid.
The employee shall make a fresh nomination within
90 days in favor of family members.
6) Modification of nomination: Can be done by the
employee at anytime, after giving a notice to the
employer.
7) Death of Nominee: If the nominee does before the
employee, then employee shall make a fresh
nomination.
8) Safe custody of nomination: Every:
a) Nomination
b) Fresh nomination
c) Alteration of nomination, as the case may be, shall be
sent by the employee to the employer, who shall keep
the same in his safe custody. Further, it shall take effect
Case Law Studies
Indian Hume Pipe Co. Ltd. V/s Workmen
HELD:- The general principle underlying gratuity
schemes is that by faithful service over a long
period the employee is entitled to claim a certain
amount as retirement benefit.
Delhi Cloth and General Mills Ltd. V/s Workmen
HELD:- The object of providing a gratuity scheme
is to provide a retiring benefit to the workmen
who have rendered long and unblemished
service to the employer and thereby contributed
to the prosperity of the employer.
Case Law Studies
 DBR Mills Ltd. V/s Appellate Authority
HELD:- Cessation of work by the employee on these
days cannot be said to be due to any fault of the
employee. Therefore, he would be deemed in
continuous service if he has been actually employed
by an employer during the 12 months, immediately
preceding the year for not less than 240 days in an
establishment.
 Patel Hiralal Ramlal & Co. Vs. Smt. Chandbib
Pirubhai
HELD:- The workmen carrying raw materials from the
employer’s premises to their home and rolling up bidis
at their home for manufacturer are employees, and as