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A SUMMER TRAINING REPORT ON QUIZ ON

INDIAN LABOUR LAWS


AT

I.T.C. LIMITED SAHARANPUR


(20007- 08)

SUBMITTED TO
INSTITUTE OF MANAGEMENT SCIENCES
UNIVERSITY OF LUCKNOW
LUCKNOW
IN PARTIAL FULFILMENT OF
DEGREE OF MASTERS OIF BUSINESS ADMINISTRATION HUMAN
RESOURCE & INDUSTRIAL RELATIONS (M.B.A.- HR & IR
UNDER SUPERVISION & GUIDANCE OF
Ms. Puneeta Sethi
H.R.M.s Secretary
I.T.C. Saharanpur

Dr R.K.Singh
Dr Archana Singh
(University of Lucknow)
SUBMITTED BY :

GAGAN CHAURASIA
MBA- HR & IR
INSTITUTE OF MANAGEMENT SCIENCES
UNIVERSITY OF LUCKNOW
LUCKNOW

CONTENTS
S.NO

TOPIC
PREFACE
ACKNOWLEGEDGEMENT

1.

INTRODUCTION TO I.T.C.

2.

INTRODUCTION TO UNIVERSITY OF LUCKNOW

3.

INTRODUCTION TO LABOUR LAWS

4.

APPRENTICESHIP ACT

5.

CONTRACT LABOUR ACT

6.

FACTORIES ACT

7.

INDUSTRIAL DISPUTE ACT

8.

MINIMUM WAGES ACT

9.

PAYMENT OF WAGES ACT

10

SHOPS AND ESTABLISHMENT ACT

11.

LABOUR LAW QUIZ

12.

CONCLUSION
BIBLIOGRAPHY

PREFACE
Birds Without Wings Is Not A Bird,
Mathes without Practice Has No Meaning
Practical work experience is the integral part of individual
learning. An individual who is learning management
concept has to undergo this practical experience to be a
future executive and Labour Laws

is the part of the

Human Resource.
So one who is going to serve any organization as an executive
must good knowledge of Labour Laws and as we know
that asking is knowing and questions are the interactive
mean of learning so quiz also enhance learning so quiz on
labour laws in India is chosen as topic of this report.
MASTER OF BUSINESS ADMINISTRATION is two- year program
which inserts management knowledge but

MASTER OF

BUSINESS ADMINISTRATION in HR and IR not only inserts


knowledge but also gives us a practical aspects related to
that factor of production without production could not be
done,

that what is HUMAN RESOURCE is. And these

labour need governance so to govern these labour we


require labour laws
The quiz on Indian labour laws

gives me a practical aspect

for learning. More over this project report is just an


approach to study various aspects of rules relating to
labour a field in which human resource manager has to
deal

ITC SAHARANPUR a part of Indian multinational really gives a


confidence and honor to me that by having such a
effective training on Human Resource.

GAGAN CHAURASIA
MBA HR & IR
INSTITUTE OF MANAGEMENT SCIENCES
UNIVERSITY OF LUCKNOW

ACKNOWLEDGEMENT
PRESENTATION, INSPIRATION, MOTIVATION AND HARD WORK
ALWAYS PLAYED A CRUTIAL ROLE IN THE SUCCESS OF EVERY
VENTURE
A project is a joint activity which cannot be completed
alone. I would not able to complete this project without
help of numerous people.
First of all I would like to thank God for successful completion of
summer training.
Then I would like to thank Management Of Institute Of
Management Sciences University Of Lucknow such as Dr
RAJ KUMAR SINGH, Dr ARCHANA SINGH and Mrs Shikha
Singh for their kind and scholarly guidance, friendly treatment to
me throughout the course and providing me an opportunity to
work with an organization of such repute.
I wish to thank ITC SAHARANPUR for providing me an
opportunity to express myself in their organization through
summer training. I pay my deep sense of gratitude to our
esteemed Manager (Human Resource) Whose valuable

Guidance and kind supervision helped me in the completion of this


project report and for her kind and scholarly guidance, friendly
treatment to me throughout the training Then I would kike to
present my gratitude to Mrs PUNEETA SETHI HUMAN
RESOURCE MANAGEMENT SECRETARY). Who kindled a tiny
light in me as aptitude for this project report and who has blessed
me throughout the Training for my success and as well as my
guide,
My special thanks to my Seniors MOHD. YUSUF who has
contributed their valuable time for helping me during this training..
I would be always thankful to Skill Enhancement Institute
Khalasi line Saharanpur
which had given special attention
for typing and printing of my project report.
Finally yet importantly I pay my highly gratitude to my family who
not only assisted me. Also helped in the entire manner those are
essential for me to complete my project report
GAGAN CHAURASIA
MBA HR & IR
INSTITUTE OF MANAGEMENT
SCIENCES
UNIVERSITY OF LUCKNOW

ITC is one of India's foremost private sector companies with a market capitalisation of
nearly US $ 15 billion and a turnover of over US $ 4.75 billion. Rated among the
World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable
Companies by Forbes magazine, among India's Most Respected Companies by
BusinessWorld and among India's Most Valuable Companies by Business Today, ITC
ranks third in pre-tax profit among India's private sector corporations.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,
Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology,
Branded Apparel, Greeting Cards, Safety Matches and other FMCG products. While
ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels,
Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its
nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting
Cards.
As one of India's most valuable and respected corporations, ITC is widely perceived to be
dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a
commitment beyond the market". In his own words: "ITC believes that its aspiration to
create enduring value for the nation provides the motive force to sustain growing
shareholder value. ITC practises this philosophy by not only driving each of its
businesses towards international competitiveness but by also consciously contributing to
enhancing the competitiveness of the larger value chain of which it is a part."
ITC's diversified status originates from its corporate strategy aimed at creating multiple
drivers of growth anchored on its time-tested core competencies: unmatched distribution
reach, superior brand-building capabilities, effective supply chain management and
acknowledged service skills in hoteliering. Over time, the strategic forays into new
businesses are expected to garner a significant share of these emerging high-growth
markets in India.
ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is
one of the country's biggest foreign exchange earners (US $ 2.8 billion in the last
decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture
significantly enhance its competitiveness by empowering Indian farmers through the
power of the Internet. This transformational strategy, which has already become the
subject matter of a case study at Harvard Business School, is expected to progressively
create for ITC a huge rural distribution infrastructure, significantly enhancing the
Company's
marketing
reach.
ITC's wholly owned Information Technology subsidiary, ITC Infotech India Limited, is
aggressively pursuing emerging opportunities in providing end-to-end IT solutions,
including
e-enabled
services
and
business
process
outsourcing.
ITC's production facilities and hotels have won numerous national and international
awards for quality, productivity, safety and environment management systems. ITC was
the first company in India to voluntarily seek a corporate governance rating.
ITC employs over 21,000 people at more than 60 locations across India. The Company
continuously endeavors to enhance its wealth generating capabilities in a globalising
environment to consistently reward more than 4,81,000 shareholders, fulfill the

aspirations of its stakeholders and meet societal expectations. This over-arching vision of
the company is expressively captured in its corporate positioning statement: "Enduring
Value for the nation. For the Shareholder
ITC is a board-managed professional company, committed to creating enduring value
for the shareholder and for the nation. It has a rich organizational culture rooted in its
core values of respect for people and belief in empowerment. Its philosophy of all-round
value creation is backed by strong corporate governance policies and systems.
ITCs corporate strategies are:
Create multiple drivers of growth by developing a portfolio of world class businesses
that best matches organisational capability with opportunities in domestic and export
markets.
Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &
Packaging, Agri Business and Information Technology.
Benchmark the health of each business comprehensively across the criteria of Market
Standing, Profitability and Internal Vitality.
Ensure that each of its businesses is world class and internationally competitive.
Enhance the competitive power of the portfolio through synergies derived by
blending the diverse skills and a capability residing in ITCs various businesses.
Create distributed leadership within the organisation by nurturing talented and
focused top management teams for each of the businesses.
Continuously strengthen and refine Corporate Governance processes and systems to
catalyse the entrepreneurial energies of management by striking the golden balance
between executive freedom and the need for effective control and accountability.
OUR CORE VALUES
ITC's Core Values are aimed at developing a customer-focused, high-performance
organisation which creates value for all its stakeholders:
Trusteeship
As professional managers, we are conscious that ITC has been given to us in "trust"
by all our stakeholders. We will actualise stakeholder value and interest on a long
term sustainable basis.

Customer Focus
We are always customer focused and will deliver what the customer needs in terms
of value, quality and satisfaction.
Respect For People
We are result oriented, setting high performance standards for ourselves as
individuals and teams.
We will simultaneously respect and value people and uphold humanness and human
dignity.
We acknowledge that every individual brings different perspectives and capabilities
to the team and that a strong team is founded on a variety of perspectives.
We want individuals to dream, value differences, create and experiment in pursuit
of opportunities and achieve leadership through teamwork.
Excellence
We do what is right, do it well and win. We will strive for excellence in whatever we
do.
Innovation
We will constantly pursue newer and better processes, products, services and
management practices.
Nation Orientation
We are aware of our responsibility to generate economic value for the Nation. In
pursuit of our goals, we will make no compromise in complying with applicable
laws and regulations at all levels
THE ITC CODE OF CONDUCT
Applicable to all directors, senior management and employees of the Company
Preamble
ITCs Code of Conduct was circulated to the employees more than five years back and is
posted on the Companys corporate website. This Code has now been re-drafted for better
presentation. This Code is derived from three interlinked fundamental principles, viz.
good corporate governance, good corporate citizenship and exemplary personal conduct.
Philosophy

ITC is a professionally managed organisation and the core value underlying our corporate
philosophy is "trusteeship". We believe this organisation has been handed to us by the
various stakeholders in "trust" and we as professionals are the "trustees" of these
stakeholders. It is therefore our responsibility to ensure that the organisation is managed
in a manner that protects and furthers the interests of our stakeholders. We recognise
society as an important stakeholder in this enterprise and therefore it is part of our
responsibility
to
practise
good
corporate
citizenship.
It is also our belief that in order to serve the interests of our stakeholders in perpetuity, we
must build ITC into an institution whose dynamism and vitality are anchored in its core
values
Corporate Governance Policy
The Corporate Governance Policy is the apex level instrument guiding conduct of the
affairs of the Company and clearly delineates the roles, responsibilities and authorities of
the key entities in the governance structure of the Company. This Code forms an integral
part of the Companys Governance Policy. The directors, senior management and
employees must adhere to the Corporate Governance Policy of the Company.
Good Corporate CitizenshipI
In the conduct of the Companys business, the practice of good corporate citizenship is a
prerequisite and embraces the following:
Dealing with People in the Organisation
In dealing with each other, directors, senior management and employees shall uphold the
values which are at the core of our HR Philosophy - trust, teamwork, mutuality and
collaboration, meritocracy, objectivity, self respect and human dignity. Indeed, these
values form the basis of our HR management systems and processes. In selection and
recruitment, while meritocracy will be a prime criterion, managers will scrupulously
consider all factors that go towards securing the interests of the Company. ITC will focus
on meritocracy, equity and upholding of Company values in all people processes
including performance management systems, appraisals, remuneration and rewards.
A Gender Friendly Workplace
As a good corporate citizen, ITC is committed to a gender friendly workplace. It seeks to
enhance equal opportunities for men and women, prevent/stop/redress sexual harassment
at
the
workplace
and
institute
good
employment
practices.
Sexual harassment includes unwelcome sexually determined behaviour such as:
unwelcome physical contact; a demand or request for sexual favours; sexually coloured
remarks; showing pornography and any other unwelcome physical, verbal or non-verbal
conduct
of
a
sexual
nature.

ITC maintains an open door for reportees; encourages employees to report any
harassment concerns and is responsive to employee complaints about harassment or other
unwelcome and offensive conduct. A committee has been constituted to enquire into
complaints and to recommend appropriate action, wherever required.
ITC demands, demonstrates and promotes professional behaviour and respectful
treatment of all employees.
Relationships with Suppliers and Customers
All directors, senior management and employees shall ensure that in their dealings with
suppliers and customers, the Companys interests are never compromised. Accepting gifts
and presents of more than a nominal value, gratuity payments and other payments from
suppliers or customers will be viewed as serious breach of discipline as this could lead to
compromising the Companys interests.
Legal Compliance
It is the Companys policy to comply fully with all applicable laws and regulations.
Ensuring legal and regulatory compliance is the responsibility of the Chief Executives of
the Businesses and the Divisional Management Committees. The Company cannot accept
practices which are unlawful or may be damaging to its reputation. Divisional
Management Committees must satisfy themselves that sound and adequate arrangements
exist to ensure that they comply with the legal and regulatory requirements impacting
each business and identify and respond to developments in the regulatory environment in
which they operate. In the event the implication of any law is not clear, the Companys
Legal Department shall be consulted for advice.

Health and Safety


The Company attaches great importance to a healthy and safe work environment. ITC is
committed to provide good physical working conditions and encourages high standards
of hygiene and housekeeping. Particular attention should be paid to training of employees
to increase safety awareness and adoption of safe working methods, particularly designed
to prevent serious or fatal accidents.
Environment Policies
The Company believes that commitment to sustainable development is a key component
of responsible corporate citizenship and therefore deserves to be accorded the highest
priority. Accordingly, the Company is committed to Best Practices in environmental

matters arising out of its business activities and expects each business to fully
demonstrate
this
commitment.
In addition to complying with applicable laws and regulations, Businesses must establish
procedures for assessing the environmental effects of their present and future activities.
They should adopt Best Practices in their environmental policies and procedures.
Personal Conduct
All directors, senior management and employees have the obligation to conduct
themselves in an honest and ethical manner and act in the best interest of the Company at
all times. They are expected to demonstrate exemplary personal conduct through
adherence to the following:
Avoidance of Conflict of Interest
All directors, senior management and employees must avoid situations in which their
personal interest could conflict with the interest of the Company. This is an area in which
it is impossible to provide comprehensive guidance but the guiding principle is that
conflict, if any, or potential conflict must be disclosed to higher management for
guidance and action as appropriate.
Transparency and Auditability
All directors, senior management and employees shall ensure that their actions in the
conduct of business are totally transparent except where the needs of business security
dictate otherwise. Such transparency shall be brought about through appropriate policies,
systems and processes, including as appropriate, segregation of duties, tiered approval
mechanism and involvement of more than one manager in key decisions and maintaining
supporting records. It shall be necessary to voluntarily ensure that areas of operation are
open to audit and the conduct of activities is totally auditable.
Protection of Confidential Information
No director, senior management and employee shall disclose or use any confidential
information gained in the course of employment/ association with the Company for
personal gain or for the advantage of any other person. No information either formally or
informally shall be provided to the press, other publicity media or any other external
agency except within approved policies.
Company Facilities

No director, senior management and employee shall misuse Company facilities. In the
use of Company facilities, care shall be exercised to ensure that costs are reasonable and
there is no wastage.
Leading by Example
The organisations directors and senior management set the professional tone for the
Company. Through both their words and their actions, the organisations leadership
conveys what is acceptable and unacceptable behaviour. ITCs directors, senior
management and employees must constantly reinforce through their actions and
behaviour that ITCs stated beliefs of responsible corporate citizenship are rooted in
individual conviction and personal integrity.
Waivers
Any waiver of any provision of this Code of Conduct for a director, senior management
or employee must be placed for approval before the Companys Board of Directors/
Corporate Management Committee, as appropriate.
Non Adherence
Any instance of non-adherence to the Code of Conduct / any other observed unethical
behaviour on the part of those covered under this Code should be brought to the attention
of the immediate reporting authority, who shall in turn report the same to the Head of
Corporate Human Resources.
* Senior management for the purpose of this Code would mean the following:
- Managers at Grade A & its equivalent, and above
- Divisional & SBU Chief Executives
- Corporate HODs
* This Code of Conduct, as adopted by the Board of Directors of the Company on 26th
March, 2005, was amended on 29th March, 2006.

ITC Code of Conduct for Prevention of Insider Trading


The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations,
1992, was amended on 22nd February, 2002 (hereinafter referred to as the 'Regulations')
in terms of which the Company is required, inter alia, to frame a Code of Conduct for
prevention of insider trading by employees of the Company, including the Directors, in
relation to the securities of the Company. 'Securities' for the purpose of this Code shall
include shares of the Company and related stock market derivatives.

In line with the said Regulations, the following Code of Conduct (hereinafter referred to
as the 'Code') has been adopted by the Board of Directors of the Company at its meeting
held on 27th March, 2002
1.

PROHIBITION TO BUY / SELL SECURITIES OF THE COMPANY BY


EMPLOYEES, INCLUDING DIRECTORS

Employees, including Directors, when in possession of any unpublished price sensitive


information, as defined in the Regulations, pertaining to the Company, shall not:

Buy / sell securities of the Company, either on their own behalf or on behalf of any
other person.

Communicate, counsel or procure any unpublished price sensitive information to /


from any person.
2.

RESTRICTION TO BUY / SELL SECURITIES BY 'DESIGNATED


EMPLOYEES'

DISCLOSURES
The Designated Employees shall cover the following:

Directors, Executive and Non-Executive;


Managers at Levels 1 & 2, or its equivalent;
Employees in Finance and Secretarial functions located at the Corporate
Headquarters@; and
Such other employees as may be determined by the CMC from time to time.

Designated Employees shall not buy / sell securities of the Company during Closure of
the 'Trading Window', i.e. the period during which trading in the securities of the
Company is prohibited.
Trading Window shall be closed during the following periods:
a. From 15th March up to twenty-four hours after the announcement of the annual
financial results (and dividend, if any) to the Stock Exchanges.
b. From 15th June up to twenty-four hours after the announcement of the first quarter
financial results to the Stock Exchanges.
c. From 15th September up to twenty-four hours after the announcement of the
second quarter and half-yearly financial results to the Stock Exchanges.

d. From 15th December up to twenty-four hours after the announcement of the third
quarter financial results to the Stock Exchanges.
e. From the date of circulation of the agenda for the meeting of the Board of
Directors, in which any material, price sensitive and unpublished event, including
the following, are proposed. The closure of the Trading Window for these events
will be advised by the Compliance Officer appointed by the Board of Directors for
the purpose of this Code:

Proposal in respect of issue of securities by way of public/ rights/ bonus etc.;

Proposal in respect of significant expansion plans or execution of new large


projects;

Proposal in respect of amalgamation, mergers, takeovers;

Proposal in respect of disposal of whole or substantially the whole of the


undertaking;

The Trading Window shall open 36 hours after close of the Board meeting at which
decisions in respect of the above events are taken.

Designated Employees shall require prior clearance for purchase of securities of


the Company, exceeding 50,000 shares in a calendar month (either in one
transaction or in a series of transactions). Exercise of Options under the ITC
Employee Stock Option Scheme (ITC ESOS) shall not require any such clearance.
Prior clearance shall also be required for sale of securities of the Company in a
calendar month (either in one transaction or in a series of transactions) exceeding
50% of the shares acquired under the ITC ESOS and held or 50,000 shares,
whichever is higher. Such prior clearance shall be required from the Compliance
Officer and a Director. Purchase / sale of securities by the Compliance Officer
beyond the aforesaid limits shall require prior clearance from the Chairman.
Purchase / sale transactions, for which prior clearance has been obtained by
Designated Employees, shall be executed within seven days of such clearance.

Designated Employees shall hold the securities of the Company for a minimum
period of 30 days from the date of purchase ('Minimum Holding Period'). In case
of personal emergency, the prior approval of the Compliance Officer shall be taken
for relaxation in the Minimum Holding Period. In respect of the Compliance
Officer, such relaxation shall require prior approval of the Chairman

3. DISCLOSURES

Designated Employees shall make the following disclosures of shares and other securities
held in the Company by them and their dependant family members, to the Compliance
Officer:

Initial disclosure of number of shares and other securities held as on 31st March,
2002. This disclosure shall be made by 30th April, 2002.
Annual disclosure of number of shares and other securities held as on 31st March,
including details of purchase / sale of shares and other securities during the
financial year. This disclosure shall be made within 30 days from the close of each
financial year.

Changes in shareholding, when such change exceeds 50,000 shares. This


disclosure shall be made within 4 working days of such change.

Disclosure shall also be made of the number of shares and other securities held,
upon becoming a Designated Employee, at any point of time. This disclosure shall
be made within 4 working days of becoming a Designated Employee

'Dependant family members' for this purpose means dependant parents, dependant
children under the age of 21 years, dependant spouse and any other person(s)
dependant on the Designated Employee

4. PENALTIES FOR CONTRAVENTION


Violation of this Code will invite severe disciplinary action. Such disciplinary action
will be irrespective of action that may be taken by SEBI under the Regulations.
5. GENERAL
A copy of the Regulations is enclosed. Employees are advised to peruse the
Regulations carefully and acquaint themselves with all the provisions contained
therein. The Compliance Officer will be available for clarification / assistance that
may be necessary
By Order of the Board
B. B. Chatterjee
Compliance Officer
MANAGEMENT DEVELOPMENT
ITC recognises that a comprehensive management
development strategy is the key to enhancing individual,
team and organizational effectiveness, as well as building
strategic capabilities and processes for organizational

Place: Kolkata
Date: 29th July, 2005

vitality and renewal. In ITC, management development goes far beyond training and
development as is commonly understood.
Management development initiatives include, in addition to formal training and
development programmes, a host of interventions such as cross-functional and multibusiness exposure, developmental assignments/secondments, membership of task forces,
special assignments, systems and processes such as the appraisal system, the strategy of
organization itself, etc.
Core training and development inputs are imparted to every individual based on his level
of responsibility, in addition to training and development interventions relating to his
functional specialisation.
A key focus of ITC's management development efforts is the development of business
leadership across businesses in support of ITC's belief that an organization with a
diversified business portfolio can be managed effectively only when competent and
effective leadership is distributed across the organization.
Over the years, ITC has evolved from a single product company to a multi-business
corporation. Its businesses are spread over a wide spectrum, ranging from cigarettes and
tobacco to hotels, packaging, paper and paperboards and international commodities
trading. Each of these businesses is vastly different from the others in its type, the state of
its evolution and the basic nature of its activity, all of which influence the choice of the
form of governance. The challenge of governance for ITC therefore lies in fashioning a
model that addresses the uniqueness of each of its businesses and yet strengthens the
unity of purpose of the Company as a whole.
Since the commencement of the liberalisation process, India's economic scenario has
begun to alter radically. Globalisation will not only significantly heighten business risks,
but will also compel Indian companies to adopt international norms of transparency and
good governance. Equally, in the resultant competitive context, freedom of executive
management and its ability to respond to the dynamics of a fast changing business
environment will be the new success factors. ITC's governance policy recognises the
challenge of this new business reality in India.
ITC defines Corporate Governance as a systemic process by which companies are
directed and controlled to enhance their wealth generating capacity. Since large
corporations employ vast quantum of societal resources, we believe that the governance
process should ensure that these companies are managed in a manner that meets
stakeholders aspirations and societal expectations.
CORE PRINCIPLES
ITC's Corporate Governance initiative is based on two core principles. These are :

(i) Management must have the executive freedom to drive the enterprise forward without
undue restraints; and
(ii) This freedom of management should be exercised within a framework of effective
accountability.
ITC believes that any meaningful policy on Corporate Governance must provide
empowerment to the executive management of the Company, and simultaneously create a
mechanism of checks and balances which ensures that the decision making powers vested
in the executive management is not only not misused, but is used with care and
responsibility to meet stakeholder aspirations and societal expectations.
Cornerstones
From the above definition and core principles of Corporate Governance emerge the
cornerstones of ITC's governance philosophy, namely trusteeship, transparency,
empowerment and accountability, control and ethical corporate citizenship. ITC believes
that the practice of each of these leads to the creation of the right corporate culture in
which the company is managed in a manner that fulfls the purpose of Corporate
Governance.
Trusteeship :
ITC believes that large corporations like itself have both a social and economic purpose.
They represent a coalition of interests, namely those of the shareholders, other providers
of capital, business associates and employees. This belief therefore casts a responsibility
of trusteeship on the Company's Board of Directors. They are to act as trustees to protect
and enhance shareholder value, as well as to ensure that the Company fulfils its
obligations and responsibilities to its other stakeholders. Inherent in the concept of
trusteeship is the responsibility to ensure equity, namely, that the rights of all
shareholders, large or small, are protected.
Transparency :
ITC believes that transparency means explaining Company's policies and actions to those
to whom it has responsibilities. Therefore transparency must lead to maximum
appropriate disclosures without jeopardising the Company's strategic interests. Internally,
transparency means openness in Company's relationship with its employees, as well as
the conduct of its business in a manner that will bear scrutiny. We believe transparency
enhances accountability.
Empowerment and Accountability :

Empowerment is an essential concomitant of ITC's first core principle of governance that


management must have the freedom to drive the enterprise forward. ITC believes that
empowerment is a process of actualising the potential of its employees. Empowerment
unleashes creativity and innovation throughout the organisation by truly vesting decisionmaking powers at the most appropriate levels in the organisational hierarchy.
ITC believes that the Board of Directors are accountable to the shareholders, and the
management is accountable to the Board of Directors. We believe that empowerment,
combined with accountability, provides an impetus to performance and improves
effectiveness, thereby enhancing shareholder value.
Control :
ITC believes that control is a necessary concomitant of its second core principle of
governance that the freedom of management should be exercised within a framework of
appropriate checks and balances. Control should prevent misuse of power, facilitate
timely management response to change, and ensure that business risks are pre-emptively
and effectively managed.
Ethical Corporate Citizenship :
ITC believes that corporations like itself have a responsibility to set exemplary standards
of ethical behaviour, both internally within the organisation, as well as in their external
relationships. We believe that unethical behaviour corrupts organisational culture and
undermines stakeholder value.
THE GOVERNANCE STRUCTURE
Flowing from the philosophy and core principles, Corporate Governance in ITC shall
take place at three interlinked levels, namely Strategic supervision by the Board of Directors
Strategic management by the Corporate Management Committee
Executive management by the Divisional Chief Executive assisted
by the Divisional Management Committee
It is ITC's belief that the right balance between freedom of management and
accountability to shareholders can be achieved by segregating strategic supervision from
strategic and executive management. The Board of Directors (Board) as trustees of the
shareholders will exercise strategic supervision through strategic direction and control,
and seek accountability for effective strategic management from the Corporate
Management Committee (CMC). The CMC will have the freedom, within Board
approved direction and framework, to focus its attention and energies on the strategic

management of the Company. The Divisional Chief Executive, assisted by the Divisional
Management Committee, will have the freedom to focus on the executive management of
the divisional business.
The 3-tier governance structure thus ensures that :
(a) Strategic supervision (on behalf of the shareholders), being free from involvement in
the task of strategic management of the Company, can be conducted by the Board with
objectivity, thereby sharpening accountability of management.
(b) Strategic management of the Company, uncluttered by the day-to-day tasks
of executive management, remains focused and energised; and
(c) Executive management of the divisional business, free from collective strategic
responsibilities for ITC as a whole, gets focused on enhancing the
quality, efficiency and effectiveness of its business
BOARD COMMITTEES
.

COMPENSATION COMMITTEE
B Sen Services Committee
Investor

Chairman

BC Sen
R Green
A Singh
P Daly
PJ B
Ramanujam

Chairman
Member
Member
Member
Member

BS B
B Chatterjee
Mathur

Secretary
Member

R S Tarneja

Member

Nominations Committee
Y C Deveshwar 1

Chairman

J P Daly

Member

C R Green

Member

S H Khan

Member

S B Mathur

Member

D K Mehrotra

Member

P B Ramanujam

Member

B Sen

Member

R
O
E

Ram S Tarneja

Member

B Vijayaraghavan

Member

Audit Committee
P B Ramanujam

Chairman

S B Mathur

Member

B Vijayaraghavan

Member

K Vaidyanath

Permanent Invitee
(Director in charge of Finance)

S Basu

Permanent Invitee
(Head of Internal Audit)

L
S

B B Chatterjee
Secretary
The core roles of the various entities at the three levels of Corporate Governance will be
as follows :
Board of Directors (Board)
The primary role of the Board of Directors is that of trusteeship to protect and enhance
shareholder value through strategic supervision of ITC, its wholly owned subsidiaries and
their wholly owned subsidiaries. As trustees they will ensure that the Company has clear
goals relating to shareholder value and its growth. They should set strategic goals and
seek accountability for their fulfillment. They will provide direction, and exercise
appropriate control to ensure that the Company is managed in a manner that fulfills
stakeholder aspirations and societal expectations. The Board must periodically review its
own functioning to ensure that it is fulfilling its role.
The ITC Board will be a balanced Board, consisting of Executive and Non-Executive
Directors, the latter including independent professionals. Executive directors, including
the Executive Chairman, shall not generally exceed 1/3rd of the total strength of the
Board. The Non-Executive Directors shall comprise eminent professionals, drawn from
amongst persons with experience in business / finance / law / public enterprises.
Directors shall be appointed / re-appointed for a period of three to five years, and in the
case of Executive Directors up to the date of their retirement, whichever is earlier. The
Board shall determine from time to time the retirement age for both Executive and NonExecutive Directors. The Board shall specify the maximum number of company
Directorships which can be held by members of the ITC Board.

Non-Executive Directors are expected to play a critical role in imparting balance to the
Board processes by bringing an independent judgement to bear on issues of strategy,
performance, resources, standards of Company conduct, etc.
The Board shall meet at least six times a year and as far as possible meetings will be held
once in two months. The annual calendar of meetings shall be agreed upon at the
beginning of each year. As laid down in the Articles of Association of the Company, the
quorum for meetings shall be one third of members and decisions shall be taken by
simple majority, unless statutorily required otherwise. Meetings shall be governed by a
structured agenda. All major issues included in the agenda shall be backed by
comprehensive background information to enable the Board to take informed decisions.
Agenda papers, as far as practicable, shall be circulated at least three working days prior
to the meeting. Normally items for the Board Agenda, except those emanating from
Board Committees, shall have been examined by the CMC. Minutes shall be circulated
within 15 working days of the meeting and confirmed at the next meeting. Board
decisions shall record the related logic as far as practicable.
The Board shall have the following Committees whose terms of reference shall be
determined by the Board from time to time :
Audit Committee : To provide assurance to the Board on the adequacy of internal
control systems and financial disclosures. The Head of Internal Audit will act as coordinator to the Audit Committee, but will be administratively under the control of the
Director accountable to the Board for the Finance function.
Compensation Committee : To recommend to the Board compensation terms for
Executive Directors and the seniormost level of management below the Executive
Directors.
Nominations Committee : To recommend to the Board nominations for membership of
the CMC and the Board, and oversee succession for the seniormost level of management
below the Executive Directors.
Investor Services Committee : To look into redressal of shareholder and investors
grievances, approval of transmissions, sub-division of shares, issue of duplicate shares,
etc.
Terms of Reference of the Board Committees shall include :
- Objectives, Role, Responsibilities
- Authority / Powers
- Membership & Quorum
- Chairmanship

- Tenure
- Frequency of Meetings
The composition of these Committees will be as follows :Committee

Members

Audit
Committee

Directors of the Company, as may be decided by One of the Independent Directors, to


the Board, with not less than 3 members, all being be determined by the Board.
Non-Executive Directors with majority of them
being independent; and with at least one Director
having financial and accounting knowledge. The
Director accountable to the Board for the Finance
function, Head of Internal Audit and representative
of External Auditors shall be the Permanent
Invitees with the Company Secretary to act as the
Secretary.

Compensation
Committee

Non-Executive Directors, as may be decided by One of the Independent Directors, to


the Board, with the Director accountable to the be determined by the Board.
Board for the HR Function as the Secretary.

Nominations
Committee

The Executive Chairman and all the Non- Executive Chairman.


Executive Directors.

Investor
Services
Committee

Chairman

Directors of the Company, as may be decided by One of the non-Executive Directors,


the Board, with the Company Secretary as the to be determined by the Board.
Secretary.

Normally meetings of the Board Committees shall be convened by their respective


Chairmen. However, any member of the Committee may, with the consent of the
concerned Chairman, convene a meeting of the Committee.
The Chairmanship of Board Committees shall be for two years at a time.
Signed minutes of Board Committee meetings shall be tabled for the Board's information
as soon as possible. However, issues requiring Board's attention / approval should be
tabled in the form of a note to the Board from the Committee Chairman. In the event
there are no issues to be brought before the Board by the Audit Committee, the
Committee Chairman shall submit a 'NIL' report to the Board
Corporate Management Committee (CMC) : The primary role of the CMC is strategic
management of the Company's businesses within Board approved direction / framework.
The CMC will operate under the superintendence and control of the Board. The
composition of the CMC will be determined by the Board (based on the recommendation

of the Nominations Committee), and will consist of all the Executive Directors and three
or four key senior members of management. Membership of the CMC shall be reviewed
by the Nominations Committee annually. The CMC shall be convened and chaired by the
Executive Chairman of the Company. The Company Secretary shall be the Secretary of
the CMC. The quorum for meetings will be 50% of the members, subject to a minimum
of three members. Decisions will be taken by simple majority. Minutes of CMC meetings
shall be tabled before the Board for its information. However, issues arising from CMC
Meetings and requiring Board's approval / attention should be tabled in the form of a note
from the relevant Executive Director. Agenda items shall be backed by comprehensive
notes from the concerned member / invitee, along with DMC approval where applicable.
Agenda papers, as far as practicable, shall be circulated at least three days prior to the
meeting. The CMC shall normally meet once a month
Executive Chairman of ITC : The Executive Chairman of ITC shall operate as the
Chief Executive for ITC as a whole. He shall be the Chairman of the Board and the
CMC. His primary role is to provide leadership to the Board and CMC for realising
Company goals in accordance with the charter approved by the Board. He shall be
responsible for the working of the Board, for its balance of membership (subject to Board
and Shareholder approvals), for ensuring that all relevant issues are on the agenda, for
ensuring that all directors are enabled and encouraged to play a full part in the activities
of the Board. He shall keep the Board informed on all matters of importance. He shall
preside over the General Meetings of shareholders. As Chairman of the CMC he will be
responsible for its working, for ensuring that all relevant issues are on the agenda, for
ensuring that all CMC members are enabled and encouraged to play a full part in its
activities.
Executive Director :
a) As a member of the CMC, contribute to the strategic management of the Company's
businesses within Board approved direction / framework.
b) As Director accountable to the Board for a business (Line Director), assume overall
responsibility for its strategic management, including its governance processes and top
management effectiveness.
c) As Director accountable to the Board for a wholly owned subsidiary, or its wholly
owned subsidiary (Line Director), act as the custodian of ITC's interest and be
responsible for their governance in accordance with the charter approved by the Board.
d) As Director accountable to the Board for a particular corporate function (Line
Director), assume overall strategic responsibility for its performance.

Divisional Management Committee (DMC) : Executive management of the divisional


business to realise tactical and strategic objectives in accordance with CMC / Board
approved plan. Composition of the DMC shall be determined by the Line Director with
the approval of the CMC. The Divisional CEO shall convene and chair the DMC
meetings. If the Divisional CEO, for any reason, is not in a position to convene a required
DMC meeting, he shall in writing delegate the power to convene and chair the required
meeting to one of the DMC members identified by name. Such delegation should be
either for a specific meeting or for meetings to be held during a specific period of time. It
cannot be a general, open-ended delegation. The key functions of the Division shall be
represented on the DMC. Normally the Divisional Financial Controller, in addition to
being a member, shall act as the Secretary to the DMC and will be responsible for
circulation and custody of agenda notes and minutes. The DMC shall generally meet at
least once a month to review Divisional performance and related issues. Quorum for
meetings shall be 50% of the members subject to a minimum of three members.
Decisions will be taken by simple majority. Minutes of meetings shall be tabled before
the CMC for its information. Agenda items shall be backed by comprehensive notes from
the relevant member / invitee. Agenda papers, as far as practicable, shall be circulated at
least three days prior to the meeting.
Divisional CEO : The Divisional CEO shall function as the Chief Operating Officer with
executive responsibility for day-to-day operation of the Divisional business, and shall
provide leadership to the Divisional Management Committee in its task of executive
management of the Divisional business.

HISTORY OF ITC
ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco
Company of India Limited'. Its beginnings were humble. A leased office on Radha Bazar
Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its
16th birthday on August 24, 1926, by purchasing the plot of land situated at 37,
Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This
decision of the Company was historic in more ways than one. It was to mark the
beginning of a long and eventful journey into India's future. The Company's headquarter
building, 'Virginia House', which came up on that plot of land two years later, would go
on to become one of Kolkata's most venerated landmarks. The Company's ownership
progressively Indianised, and the name of the Company was changed to I.T.C. Limited in
1974. In recognition of the Company's multi-business portfolio encompassing a wide
range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging,
Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting

Gifting & Stationery - the full stops in the Company's name were removed effective
September 18, 2001. The Company now stands rechristened 'ITC Limited'.
Though the first six decades of the Company's existence were primarily devoted to the
growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies
witnessed the beginnings of a corporate transformation that would usher in momentous
changes in the life of the Company.
ITC's Packaging & Printing Business Division, was set up in 1925 as a strategic
backward integration for ITC's Cigarettes business. It is today India's most sophisticated
packaging house.
In 1975 the Company launched its Hotels business with the acquisition of a hotel in
Chennai which was rechristened
'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business
was rooted in the concept of creating value for the nation. ITC chose the hotels business
for its potential to earn high levels of foreign exchange, create tourism infrastructure
and generate large scale direct and indirect employment. Since then ITC's Hotels
business has grown to occupy a position of leadership, with over 75 owned and
managed properties spread across India.
In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam
Paperboards Limited, which today has become the market leader in India.
Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002
and became a Division of the Company, Bhadrachalam Paperboards Division. In
November 2002, this division merged with the Company's Tribeni Tissues Division to
form the Paperboards & Specialty Papers Division. ITC's paperboards' technology,
productivity, quality and manufacturing processes are comparable to the best in the
world. It has also made an immense contribution to the development of Sarapaka, an
economically backward area in the state of Andhra Pradesh. It is directly involved in
education, environmental protection and community development. In 2004, ITC
acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd
(BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve
customer service with reduced lead time and a wider product range.
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint
venture. Since inception, its shares have been held by ITC, British American Tobacco
and various independent shareholders in Nepal. In August 2002, Surya Tobacco became
a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited
(Surya Nepal).
In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing
company and a major supplier of tissue paper to the cigarette industry. The merged

entity was named the Tribeni Tissues Division (TTD). To harness strategic and
operational synergies, TTD was merged with the Bhadrachalam Paperboards Division to
form the Paperboards & Specialty Papers Division in November 2002.
Also in 1990, leveraging its agri-sourcing competency, ITC set up the International
Business Division (IBD) for export of agri-commodities. The Division is today one of
India's largest exporters. ITC's unique and now widely acknowledged e-Choupal
initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 9
states covering over 3.5 million farmers. ITC's first rural mall, christened 'Choupal
Saagar' was inaugurated in August 2004 at Sehore. The year 2006 witnessed the
ramping up of the Company's rural retailing network with 17 'Choupal Saagars' being
operational in three states of Madhya Pradesh, Maharashtra and Uttar Pradesh.
In 2000, ITC's Packaging & Printing business launched a line of high quality greeting
cards under the brand name 'Expressions'. In 2002, the product range was enlarged
with the introduction of Gift wrappers, Autograph books and Slam books. In the
same year, ITC also launched 'Expressions Matrubhasha', a vernacular range of
greeting cards in eight languages and 'Expressions Paper Kraft', a range of premium
stationery products. In 2003, the company rolled out 'Classmate', a range of notebooks
in the school stationery segment.
ITC also entered the Lifestyle retailing business with the Wills Sport range of
international quality relaxed wear for men and women in 2000. The Wills Lifestyle
chain of exclusive stores later expanded its range to include Wills Classic formal wear
(2002) and Wills Club life evening wear (2003). ITC also initiated a foray into the
popular segment with its men's wear brand, John Players, in 2002. In December 2005,
ITC introduced Essenza Di Wills, an exclusive line of prestige fragrance products, to
select 'Wills Lifestyle' stores. In 2006, Wills Lifestyle became title partner of the
country's most premier fashion event - Wills Lifestyle India Fashion Week - that has
gained recognition from buyers and retailers as the single largest B-2-B platform for the
Fashion Design industry. To mark the occasion, ITC launched a special 'Celebration
Series', taking the event forward to consumers.
In 2000, ITC spun off its information technology business into a wholly owned
subsidiary, ITC InfoTech India Limited, to more aggressively pursue emerging
opportunities in this area. In a short span of 5 years, ITC InfoTech has already crossed
over US$ 60 million in revenues. It also has a joint venture with Client Logic, a top five
global Business Process Outsourcing (BPO) provider.
ITC's foray into the Foods business is an outstanding example of successfully blending
multiple internal competencies to create a new driver of business growth. It began in
August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet
dishes. In 2002, ITC entered the confectionery and staples segments with the launch of
the brands Mint-O and Candy man confectionery and Aashirvaad atta (wheat flour).

2003 witnessed the introduction of Sunfeast as the Company entered the biscuits
segment. ITC's entered the fast growing branded snacks category with Bingo! In 2007 in
just six years, the Foods business has grown to a significant size with over 150
differentiated products under six distinctive brands, with an enviable distribution reach,
a rapidly growing market share and a solid market standing
In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the
entire value chain found yet another expression in the Safety Matches initiative. ITC
now markets popular safety matches brands like iKno, Mangaldeep, VaxLit, Delite and
Aim.
ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the
manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands
include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine,
Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.

PRODUCTS

ITC is the market leader in cigarettes in India. With its


wide range of invaluable brands, it has a leadership
position in every segment of the market. It's highly
popular portfolio of brands includes Insignia, India
Kings, Classic, Gold Flake, Silk Cut, Navy Cut,
Scissors, Capstan, Berkeley, Bristol and Flake.
The Company has been able to build on its leadership
position because of its single minded focus on value
creation for the consumer through significant investments in product design, innovation,
manufacturing technology, quality, marketing and distribution.
All initiatives are therefore worked upon with the intent to fortify market standing in the
long term. This in turns aids in designing products which are contemporary and relevant
to the changing attitudes and evolving socio economic profile of the country. This
strategic focus on the consumer has paid ITC handsome dividends.
ITC's pursuit of international competitiveness is reflected in its initiatives in the overseas
markets.
In the extremely competitive US market, ITC offers high-quality, value-priced cigarettes
and Roll-your-own solutions. In West Asia, ITC has become a key player in the GCC
markets through growing volumes of its brands.
ITC's cigarettes are produced in its state-of-the-art factories at Bengaluru, Munger,
Saharanpur and Kolkata. These factories are known for their high levels of quality,
contemporary technology and work environment.

ITC's Cigarettes business has been winning numerous awards for its quality,
environmental management systems and product excellence:
Achieved 5 star Health and Safety Rating from the British Safety Council for its
cigarette factories at Bengaluru, Munger, Kolkata and Saharanpur and the "Sword of
Honour" for Bengaluru & Sharanpur for 2006-07.
Bengaluru, Kolkata and Saharanpur cigarette factories won the prestigious Greentech
Safety Gold Award for the year 2007 in the manufacturing sector. These awards are in
recognition of the high level of performance that the units have achieved in
Environment Health and Safety (EHS). Saharanpur along with Kolkata and Munger
factories were honoured with the same award in 2006.

Bengaluru Factory has also received the Platinum Award for outstanding
achievement in safety management in 2006.
Bengaluru Factory has won the "Safety Innovation Award 2006" for Innovative
Safety Management System from the Safety & Quality Forum (Institution of
Engineers) and also Unnatha Suraksha Puraskara Award from NSC Karnataka
Chapter.
The cigarette factory at Kolkata was awarded the "1st National Security Today
Award 2005" in the category of Best Maintained Fire Safety System.
Bengaluru, Munger & Kolkata have won the prestigious Greentech Environment
Excellence Gold Award for the year 2006.

Munger factory won the Excellence in Water Management Award from CII-GBC for
2006.
All its factories are certified by Det Norske Veritas (DNV) for ISO 14001, for their
Environment Management Systems, OHSAS 18001 for their Occupational Health and
Safety Management Systems (OHSMS) and the ISO 9000-2000 for Quality Management
Systems. The Kolkata factory is the first cigarette factory in India to be awarded the SA
8000 Certificate for Social Accountability by Det Norske Veritas (DNV) in June 2004.
ITC's R&D Centre at Peenya, Bengaluru has the distinction of being the first
independent R&D centre in India to get ISO 9001 accreditation and certified with
ISO 14001 for Environment Management Systems by DNV. The R&D Centre is also
certified for the standard ISO/IEC17025:2005, by National Accreditation Board for
Testing and Calibration Laboratories (NABL). This certification is awarded for "General
requirement for the competence of Testing & Callibration Laboratories"

As part of its strategic initiative to


create multiple drivers of growth in
the FMCG sector, ITC has
commenced
marketing
safety
matches sourced from the smallscale sector.

This business leverages the core strengths of ITC in marketing and


distribution, brand building, supply chain management and paperboard &
packaging to offer Indian consumers high quality safety matches.
These matches are available in unique designs
and with innovative value added features. ITC's brands like iKno,
Mangaldeep, VaxLit, Delite and Aim have already become popular. The
Aim brand is already the largest selling brand of Safety Matches India.
Export of premium brands has also commenced to markets such as Europe,
Africa and the USA. The successful the market standing of the Company's
Matches business thr6ugh synergy benefits of combined portfolio of
offerings, improved servicing of proximal markets and freight optimization.
Through its participation, ITC aims to enhance the competitiveness of the
small and medium scale sectors through its complementary R&D based
product development and marketing strengths, especially the breadth and
depth of the Company's trade marketing and distribution

ITC
Limited entered the hotels business
in 1975 with the acquisition of a
hotel in Chennai, which was
rechristened Hotel Chola. Since
then the ITC-Welcomgroup brand
has become synonymous with
Indian hospitality. Today amongst
India's finest and fastest growing
hotel chains consists of over 70
hotels across as many destinations

in

India.

These include it super deluxe and five star hotels, heritage palaces, havelis and
resorts and full service budget hotels. The 440-room ITC Maurya at New Delhi
is not only amongst the leading business hotel in the country, but is in a class by
itself. Complete with the 'ITC One', the hotel has played host to a galaxy of
world dignitaries, including Bill Clinton and Bill Gates. In fact, even as he was
leaving the White House, the former US President nostalgically recalled the
memories of a fabulous Indian meal he and his family had at the Bukhara
restaurant in the hotel. Bukhara has been declared the Best Indian Restaurant
in the world, by 'The Restaurant Magazine', UK. It has also been voted the
Best Restaurant in Asia and is the only Indian restaurant to feature in the list
of 50 Best Restaurants in the World for five years since 2002.

The 386-room ITC Maratha, opened in February 2001, is perceived as


amongst the leading and the finest properties in Mumbai, designed in a
grandiose classic style, the hotel pays tribute to Mumbai's colonial roots and the
spirit of the Great Marathas

In keeping with its plan to have a presence in every major business destination
in India, ITC-Welcomgroup unveiled one of Asia's finest business resort, the
238-room ITC Sonar in Kolkata on December 31, 2002.
Another landmark hotel - the ITC Grand Central in Parel, Mumbai was formally
inaugurated in January 2005. This five star deluxe property with 242 suites and
rooms offers international standards of service, state of the art amenities and
culinary excellence.
ITC Mughal at Agra, a proud recipient of Asia's first Aga Khan Award for
Architecture, is an outstanding resort hotel, lavishly spreading across 35 acres
of beautifully landscaped Mughal gardens

ITC-Welcomgroup also pioneered a holistic concept of "branded


accommodation" in the hospitality industry. It was the first to launch the
powerful idea of a 'Hotel within a Hotel' by segmenting and branding the hotel
services. It created the exclusive 'ITC One', 'Sheraton Towers' and the
'Executive Club' each catering to the needs of the global business traveller with
unmatched quality and a range of services.
In 2007, ITC-Welcomgroup entered a new phase in its collaboration with
Starwood Hotels & Resorts. ITC-Welcomgroup now has an exclusive tie-up
with Starwood in bringing its premium brand, the Luxury Collection, to

India. The seven hotels which are part of this collection are: ITC Maurya in
Delhi, ITC Maratha in Mumbai, ITC Sonar in Kolkata, ITC Grand Central in
Mumbai, ITC Windsor in Bengaluru, ITC Kakatiya in Hyderabad and ITC
Mughal in Agra. The agreement also includes the rebranding of WelcomHotel
New Delhi as a Sheraton, while the Chola and the Park in Chennai, and the
Rajputana in Jaipur retain their Sheraton connections.
The WelcomHeritage brand brings together a chain of palaces, forts, havelies
and resorts that offer a unique experience. WelcomHeritage endeavours to
preserve ancient royal homes and the historical Indian grandeur, opulence of
romance, valour and adventure for the future Indian generations.
WelcomHeritage Hotels, provide a fine range of hotel services inside these
architectural legacies present in Rajasthan, Punjab, Himachal Pradesh, Madhya
Pradesh, Uttaranchal, Jammu & Kashmir, West Bengal, Tamil Nadu, Haryana
and
Karnataka.

ITC-Welcomgroup was also the first to brand its cuisine. The Bukhara, the
Dakshin and the Dum Pukht are today powerful cuisine brands, which delight
connoisseurs in restaurants in several ITC-Welcomgroup hotels. Others included
Dublin, West View and the Pan Asian.

Fortune hotels are a part of the well thought-out growth strategy that brings out
the mid-level business and leisure traveler under the ITC-Welcomgroup
umbrella, offering full service properties without compromising on quality. With
a strong presence at Ahmedabad, Thiruvananthapuram, Calicut, Darjeeling,
Jamshedpur, Vapi, Hyderabad, Gurgaon, Indore, Ootacamund, Madurai,
Jodhpur, Tirupati and Port Blair, it will be shortly commissioning several more
hotels across India.

ITC-Welcomgroup's strategy of benchmarking against international


standards has won its hotels many laurels.
ITC Welcomgroup was named the Best Premier Hotel Brand at the
Galileo-Express TravelWorld Awards 2006. ITC WelcomHeritage won the
Best Heritage Hotel Brand award.
Sheraton, New Delhi was conferred the '6th Annual Greentech Safety
Award' in the Service Sector for the year 2006.
The NCPEDP-Shell Helen Keller Award 2006 to ITC Windsor for the
vision, policies and practices demonstrating the belief in equal rights and
gainful employment for persons with disabilities.
The National Tourism Award 2004-05 to WelcomHotel, Delhi under the
category - Best Eco-Friendly Hotel.
The PATA Gold Award 2005 in the Corporate Environmental category for
the WelcomEnviron initiatives of ITC-Welcomgroup.
ITC Sonar, Kolkata has been declared as one of the best hotels in the world
by the Association of British Travel Agents (ABTA) in the April 2004 issue of
its magazine 'Business & Travel'. ABTA also rated Dublin amongst the

top 20 bars and Bukhara the best restaurant in Asia and the finest
Indian restaurant in the world

ITC Maurya is the only hotel in India, to have won the British Safety
Council's 'Sword of Honour' thrice.
ITC Maurya, New Delhi is also India's first hotel to be accorded the ISO
14001 certification for its Environment Management Systems. Eight more
ITC-Welcomgroup Hotels followed in quick succession: ITC Windsor,
Bengaluru; ITC Kakatiya, Hyderabad; ITC Mughal, Agra; Sheraton Rajputana,
Jaipur; Sheraton Chola, Chennai; ITC Hotel Park Sheraton & Towers, Chennai,
ITC Maratha, Mumbai and ITC Sonar, Kolkata.
ITC Maurya is the first hotel in India to be awarded the Golden Peacock
Environment Management Award for 2001 by the World Environment
Foundation. It won this award again in 2004.
ITC Maratha at Mumbai was declared to be the Best Luxury Hotel of the
Year 2002, by the Federation of Hotel and Restaurant Associations of India.
ITC Mughal at Agra was Asia's first winner of the Aga Khan Award for
Architecture.
The prestigious 'Golden Fork Award', was also bestowed, by the
International Food and Wine Writers Guild, to Bukhara and Dum Pukht
restaurants at the Maurya Sheraton.
Bukhara at ITC Maurya in New Delhi has been declared the Best Indian
Restaurant in the world by 'The Restaurant Magazine', UK. It has also been
voted the Best Restaurant in Asia and is the only Indian restaurant to feature in
the list of 50 Best Restaurants in the World for five years since 2002.
ITC Maurya and ITC Mughal have both won the 'Green Hotelier Awards'.
ITC Maurya has also won the International Hotels & Restaurants
Association (IH & RA) environmental award: twice.
ITC Maurya has won the Federation of Hotel & Restaurant Association of
India 'Environment Champion Hotel of the Year' in 2002 and 1997. ITC
Mughal, Agra, has won this award in 2003.
Bay Island at Port Blair, Andaman, was presented 'The Tourism For
Tomorrow' award by British Airways in 1993.

Following the amalgamation of the erstwhile ITC Bhadrachalam Paperboards


Limited with ITC in 2002, the Paperboards and Specialty Papers businesses
were merged to harness strategic and operational synergies.
The Company's full range of products is depicted in the chart below :-

ITC is one of the world's most modern and contemporary


manufacturers of packaging and graphic series of boards. ITC's
Paperboards business has a manufacturing capacity of over
360,000 tonnes per year and is India's market leader across all cartonconsuming segments including cigarettes, foods, beverages, pharma,
personal care & toiletries, durables and match shells.
The erstwhile ITC Bhadrachalam Paperboards Limited was incorporated in
1975. It set up an integrated pulp and paper/board manufacturing facility in
1979 at Bhadrachalam in Andhra Pradesh in South India, 300 kms. east of
Hyderabad. Since then, the mill facilities have been continuously upgraded to
achieve internationally benchmarked quality standards and operational
efficiencies.
In 1998, the Paperboards business commissioned a new production line for
coated boards. This production line incorporated Paper Machine 4, which was
equipped with a capacity of 120,000 tonnes per annum (tpa), and finishing
equipment sourced from internationally renowned suppliers. This machine has
been fitted with a sophisticated 'Web Detection and Inspection system'. The

PM4 board machine can deliver international quality boards for Cigarette,
Liquid, Food and Pharma Packaging by providing a flawless surface for print
reproduction.
In September 2002, ITC's Bhadrachalam Paperboard Unit commissioned a
100,000 tpa Elemental Chlorine Free (ECF) fiber line. This is a state-of-theart fiber line and the only one in India, which meets effluent norms, set by the
Ministry of Environment and Forests of the Government of India and Pollution
Control Boards. The product range has also been enhanced as ECF pulp
uniquely fulfills the demand for food-grade packaging and environment-friendly
paper.
In November 2003, ITC acquired the paperboard manufacturing facility of
BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil
Nadu. With effect from March 19, 2004, this Unit Kovai has been
integrated with the Paperboards & Specialty Papers Division. The Kovai
Unit, with a capacity of 65,000 tpa, will enable ITC to further improve
customer service and reduce the lead time for manufacturing customized
recycled boards.
The recently commissioned Paper Machine 5 at Bhadrachalam has a
capacity of 75,000 tpa and will help the business offer an unbeatable value
proposition in both virgin and recycled boards. This will further strengthen
ITC's leadership position in value-added paperboards. ITC's Paperboard
products include Packaging boards - coated folding box boards, solid bleached sulphate boards,
white lined chipboards, liquid packaging boards, poly extruded coated boards
for food and barrier packaging cast coated papers and boards.
Paperboards : What do we bring to customers

ONE STOP SHOP : UNRIVALLED RANGE

Cast Coated /
Specialty
Boards

Liquid
Packaging
Board

Indolux Safire, Liquid Pack


Art Maestro, Board
Carte Persona,
Indolux Label
Base, Indolux
Paper
Pharma
Graphik

Virgin
Boards( FBB,
SBS )

Cupstock
(Barrier
Boards)
(1 or 2 Side
Coated)

Recycled
Boards

Cyber Xl Pac, Indobev 1 PE & Coated Board


Safire Graphik, 2 PE& Indobarr Grey Back &
Pearl Graphik 1 PE & 2 PE
Coated Board
White Back,

Aseptic Liquid Cigarettes


Paper Cups
Packaging
Pharma
Soaps Ice
Premium
Creams Foods
Cosmetics
Foods Greeting
cards

Cigarettes
FMCG
Garments
Foods

Gypsum Base
Board

Gypsum

Partition Boards

The Bhadrachalam Unit also produces ECF quality Writing and


Printing Papers, Bleached Kraft Papers and Photocopier paper.
ITC is the largest exporter of coated
boards from India. The Company
exports nearly 20 per cent of the coated
boards it produces. Its coated boards
fulfill exacting customer requirements
in Malaysia, Sri Lanka, Bangladesh,
Iran, Australia, UAE, Saudi Arabia,
Singapore, U.K., Italy, Netherlands
and China.
ITC has set up India's first world-class plant for the manufacture of
premium Cast Coated Boards that meet highly sophisticated packaging and
printing requirements. The Unit at Bollarum has been expanded further to
accommodate specialized converting production lines. ITC has added a modern
poly extruded line to its production facility, to meet the growing demand for
food packaging and beverage cups. The super-calendaring line installed at
Bollarum Unit near Hyderabad has also added Art Boards and Ivory Cards to its
product range. ITC has also pioneered the development of Liquid Packaging
Boards and baseboards for Plasterboards. Continuous product development
has reinforced ITC's market leadership in the Paperboards business.
ITC's Paperboards business has a strong customer focus. The Company's Paperboards
business devoutly practices a 'Total Quality Assurance' philosophy during each stage of
manufacture. Its state-of-the-art on-line process control and scanning systems

deliver internationally accepted quality standards.

In a farsighted corporate effort to continuously enhance ITC's


global competitiveness through significantly improved availability
of high quality fiber, the Company launched a major social and
farm forestry programme by creating and nurturing clonal
plantations. Under this green initiative, the Paperboard Division
supplies millions of high yielding disease-resistant clonal
saplings, developed through in-house biotechnology research, to
farmers in Andhra Pradesh. The Company in turn, sources an
increasing part of its raw materials from these plantations. The
program also continuously enriches the environment.
The Division initiated bio-technological research in 1989 to
develop and propagate genetically superior, high-yielding, diseaseresistant clones. Large-scale plantations have been raised on over
41,000 hectares of lands belonging to the farming community with 72 high
yielding varieties of eucalyptus and subabul. The yield from these
'Bhadrachalam' clones is thrice that of the normal seed route plantations. The
Company disseminates its research know-how on best agricultural practices to
farmers through free consultancy services
ITC is the premier manufacturer of Specialty Papers in India, with a diversified
product portfolio. ITC's Specialty Papers are used in the manufacture of
cigarettes, decorative laminates, electrical equipment, fireworks and
automotive filters. They are also used for fine printing, packaging and
carbonizing.
This Division pioneered the manufacture of Specialty Papers for the Indian
cigarette industry in 1949. It currently offers a comprehensive range of
Cigarette Tissues, Plug Wrap, Tipping Base, printed tipping papers and
Moralizing Base.
The Specialty Papers Unit of PSPD at Tribeni, Chandrahati, West Bengal aims
to reach out and fulfill existing and emerging customers needs. The Unit
reconfigures systems and processes to meet specific customer requirements.
Quality control processes at the Unit are designed to ensure consistent high
quality at every stage of manufacture. On-line monitoring and documentation
of production parameters are carried out for continuous correction and
updating the quality standards.
A Product Development Team ensures Total Quality Management (TQM) in all
operations. The TQM group closely dovetails its operations with marketing,
production and research teams to ensure international standards in products and

services. The business creates long-term product development solutions on


the basis of customer specifications and market trends.
ITC has demonstrated strong capability in product development and research in
pulp and paper. The Company has collaborated with the United Nations
Development Program (UNDP) and the Government of India on research
programs to develop high quality pulp.
The Division exports cigarette tissues and dcor paper for laminates to Iran,
Indonesia, Philippines, Nepal, Bhutan and Bangladesh.

ITC's Paperboards & Specialty Papers business has won numerous awards
for quality, environmental management systems and product excellence:
Paperboards Business
Paper Mill of the Year 2005-06 Award to the Bhadrachalam paperboards
mill by the Indian Paper Manufacturers Association (IPMA).
Five Star rating from the British Safety Council to Tribeni Unit in 2006 for
excellent performance in Health & Safety management.
Indian Manufacturing Excellence Gold Award 2006 to the Bollaram Unit
from Frost & Sullivan. This Award acknowledges the best facilities in India that
have achieved and sustained Manufacturing Excellence.
The CII conferred the National Award for Excellence in Energy
Management, Best Innovative Project Award and National Award for
Excellence in Water Management 2006 to the Bhadrachalam Unit. The
awards were given for successful implementation of energy saving projects and
for significant reduction in specific energy and water consumption.
The Greentech Environment Excellence Gold Award 2006 and 2004 in the
manufacturing sector, for the Bhadrachalam factory. Through these awards the
Greentech Foundation recognizes industrial and service sector organizations
for their outstanding achievements in environment protection.
'Top Green Rating' in 2004 by the Centre for Science & Environment
(CSE). The Bhadrachalam Unit was adjudged as India's most environmentfriendly paper mill.
ISO 9000 certification in 2004, by Det Norske Veritas (DNV) for the
paperboards manufacturing facility at Kovai.

The CII ENCON Award for 2002-2003, for excellence in energy


management
.

The prestigious Golden Peacock Environment Management Award,


instituted by the World Environment Foundation, in 2003.
ISO 14001 Environment Management Systems certification in 2001.
Capexil's Top Export Award 2005-06, for the 5th consecutive year in
recognition of highest exports in value terms, in the Paper and Paperboard
category.
The prestigious Indira Priyadarshini Vrikshamitra Award for outstanding
contribution to the cause of afforestation and the development of wastelands.
ISO 9001 certification for the Bhadrachalam factory.
The Vantech Industry Rolling Trophy for "Research & Development" from
the Confederation of Indian Industry (Southern region)..
The Rajiv Gandhi Parti Bhoomi Mitra Award for developing non-forest
wastelands in the country from the Department of Wastelands Development,
Government of India.
National Award for Energy Conservation 2006 to the Tribeni Unit in the
Paper & Pulp Sector from the Department of Power, Ministry of Power & NonConventional Energy Sources, Government of India. The Bhadrachalam unit
won the same award in 2005.
Specialty Papers Business
National Award for Excellence in Water Management 2006 and Energy
Conservation Award 2005-06 by the CII to the Tribeni Unit.
ISO 9001 accreditation in November 1999 from Lloyds Register, which has
certified most of the leading cigarette paper manufacturers in the world.
ISO 14001 accreditation in December 2002 from Lloyds Register.
Accreditation to quality bodies in US and UK, like UKAS and RAB.
The Gold Award for Safety in 1999 from the Royal Society for Prevention
of Accidents (RoSPA), UK.
Runners-up in 2000 for the prestigious Golden Peacock Environment
Management Award, instituted by the World Environment Foundation.

ITC's Packaging & Printing Business is the country's largest convertor of


paperboard into packaging. It converts over 35,000 tonnes of paper and
paperboard per annum into a variety of value-added packaging solutions for the
food & beverage, personal products, cigarette, liquor, cellular phone and IT
packaging industries. It has also entered the Flexibles and Corrugated Cartons
business.
The Division, which was set up in 1925 as a strategic backward integration for
ITC's Cigarettes business, is today India's most sophisticated packaging house.
State-of-the-art technology, world-class quality and a highly skilled and
dedicated team have combined to position ITC as the first-choice supplier of
high value added packaging.
The Division supplies value-added packaging to the Company's Cigarettes
business. Its client list includes several well-known national and international
companies like British American Tobacco, Surya Nepal Private Limited,
VST Industries, , UB Group, Shaw Wallace, Seagrams, Allied Domecq,
Whyte & Mackay, Hindustan Lever, Tata Tetley and Nestle, Reckitt
Benkiser India Limited, etc.
With two ISO 9000:2000 certified & ISO 14001 certified packaging factories at
Tiruvottiyur near Chennai and Munger in Bihar, and a third factory coming up
at Uttaranchal, the Company offers a comprehensive product range in
packaging:
flip-top boxes display outers shells and slides soft cup and strap labels
bundle wraps flap boxes inner frames coupon inserts folding cartons
shoulder boxes pre-printed cork tipping Flexible packaging
ITC occupies a leadership position in cigarette and liquor packaging in India. It
supplies packaging to cover 70 billion cigarettes a year domestically, and
supplies packaging for 15 billion cigarette sticks a year for the export market.
It is the largest supplier of liquor mono cartons in the country.
ITC has enhanced the value of some of the most favored brands with superior
look-and-feel packaging, using the best raw materials and process
combinations, and an in-house pre-press Design Centre.

A Product Introduction Process team pioneers packaging innovations. The team


uses a unique process to pilot the client's packaging through its manufacturing
system. Specifications are evolved based on clients' needs. Corresponding to the
specifications, a variety of packaging solutions is then generated. The efficacy
of the packaging is tested simulating the client's factory conditions.
pack
ITC's Packaging business has won numerous awards for its quality,
environmental management systems and product excellence:
5 star rating from the British Safety Council for both factories at Chennai
and Munger.
The Greentech Safety Gold Award to Munger Unit for the year 2006
The Greentech Environment Excellence Award in the Manufacturing
Sector for three consecutive years since 2004 by the Greentech Foundation.
Through these awards, the Greentech Foundation recognizes industrial and
service sector organisations for their outstanding achievements in environment
protection.
First in India to be assessed at Level 6 on the International Quality Rating
System (IQRS), presently at Level 7 and being assessed for Level 8.
Both the Chennai and Munger factories have obtained ISO 9002 certification.
The Tiruvottiyur and Munger factories have also received the ISO 14001
Environment Management Systems certification and OSHAS 18000.
Quality Improvement (QIMPRO) Benchmark Awards for 1997 and 1998.
British Safety Council Swords of Honour for both the Chennai and Munger
factories.
CAPEXIL Special Export Award for 1999, Top Export Award for 2000/01
and Certificate of Merit for export performance in 2004-05 and 2005-06.
The World Star award for Aashirvaad Select 2-kg pack in the Consumer
Pack category in 2002, Wills Natural Lights in 1999, Royal Velvet & Passport
whisky cartons in 1998 and Nargis lined tea cartons and Vacupack bulk
packaging for tea in 1997.
Asiastar awards for packaging excellence in 1999, 2000, 2001 and in 2002
three Asiastar awards for Surya 10s, Royal Stag 750ml and No.1 Gift Pack.
India Star Awards for unique, innovative and visually appealing packaging
in 2002 for the Aashirvaad Select 2-kg pack and for Bagpiper Gold, Royal
Challenge and Sara Lee Celebrations packs in 2000.

ITC's
International
Business
Division (IBD) is the country's second
largest exporter of agri-products with
exports of over Rs. 1000 Crores (Rs
10 billion). Its domestic sales of agriproducts are also of a similar scale. It
currently focuses on exports of
Feed Ingredients Soya meal
Food grains - Rice (Basmati &
Non Basmati), Wheat, Pulses
Coffee, Black Pepper
Edible Nuts - Sesame Seeds,
HPS Groundnuts, Castor oil
Marine Products - Shrimps and Prawns
Processed Fruits - Fruit Purees/Concentrates, IQF/Frozen Fruits,
Organic Fruit Products, Fresh Fruits
Coffee & Spices - Coffee, Black Pepper, Chilly, Turmeric, Ginger, Celery
and other Seed Spices

Although one of the relatively younger business divisions of ITC, it has, in a


short span established itself as a first-choice supply chain partner of several

leading international customers. Its major customers include Cargill,


Marubeni, Toepfer, among others, who source agriculture commodities and
food products from India. Its customer relationship management has enabled it
to achieve a very high reputation for quality, reliability and value added
services. ITC's website, www.itcibd.com is a trendsetting customer care
intervention in commodity trading.
ITC's unique strength in this business is the extensive backward linkages it has
established with the farmers. This networking with the farming community has
enabled ITC to build a highly cost effective procurement system. ITC has
made significant investments in web-enabling the Indian farmer. Christened 'eChoupal', ITC's web plan for the farmer centres around providing Internet
kiosks in villages. Farmers use this technology infrastructure to access on-line
information from ITC's farmer-friendly website. Data accessed by the farmers
relate to the weather, crop conditions, best practices in farming, ruling
international prices and a host of other relevant information.
Currently, the 'e-Choupal' website - www.echoupal.com - provides information
to farmers across the nine States of Madhya Pradesh, Haryana, Uttaranchal,
Uttar Pradesh, Rajasthan, Karnataka, Maharashtra, Andhra Pradesh and Kerala.
ITC plans to extend the 'e-Choupal' to cover 10 million farmers across 100,000
villages covering 15 Indian states.
Following the impressive success of e-Choupal, the Company unveiled the first
'Choupal Saagar' near Sehore in Madhya Pradesh in August 2004. Seventeen
more 'Choupal Saagars' have commenced operations in the states of Madhya
Pradesh, Maharashtra and Uttar Pradesh. The 'Choupal Saagar' is a rural
hypermarket which provides multiple services under one roof. It creates a
platform for farmers to sell their produce. Farmers can also buy quality products
for their farm and household consumption from 'Choupal Saagar'. These rural
malls also provide farmers the invaluable additional services of soil testing,
banking, insurance, medical facilities and restaurant. Such malls, in synergistic
combination with the e-choupal network, serve as the core infrastructure to
support ITC's rural distribution strategy. Over the next 7-10 years ITC plans to
open over 700 such hypermarkets.
The business is progressing a pilot project for retailing fresh fruits and
vegetables. Three Choupal Fresh Cash & Carry Stores are currently
operational at Hyderabad, Pune & Chandigarh.The Company has set up a
complete warehousing and cold chain infrastructure for ensuring the availability
of fresh products in the market, besides direct linkages with the farmers for
sourcing farm fresh produce.

In Processed Fruits category, ITC exports from HACCP Certified plants to


Western Europe, North Africa, Mid-East, Japan and North America, a wide
range of Processed Fruits products made from Mango (Alphonso, Kesar &
Totapuri) , Guava , Papaya ,& Pomegranate for Industrial and Consumer use.
ITC is the leading Indian exporter of Organic Fruit Products Certified to
European (EC 2092/91) & US (NOP) Standards.
Fresh Table Grapes & Pomegranates are sourced from ITC's EUREPGAP
Certified Farmer groups & retailed through prominent supermarkets like
Sainsbury's & Albert Heijn in Europe, Daiei in Japan.
ITC's countrywide network of procurement teams, handling agents and
contemporary warehousing facilities enable it to source quality merchandise
even at short notice. ITC's processors are handpicked reliable outfits which
ensure hygienic processing and modern packaging. Strictest quality control
is exercised at each stage to preserve the natural flavour, taste and aroma
of the various agri-products.

ITC has been a significant exporter of sea foods from India since
1971.
It exports frozen as well as cooked shrimps and other seafood
products to Japan, USA and Europe. Its well-known brands include
Gold Ribbon, Blue Ribbon, Aqua Kings, Aqua Bay, Aqua Feast
and Peninsular.
ITC's International Business Division continues to use innovation as
its core strategy to retain its position as the one-stop shop for sourcing
agri-commodities from India.
ITC's Agri-Exports business has won numerous awards:
The Ashoka - Changemakers Health For All Award 2006 for the Rural
Health Services model for delivery of health services through the e-Choupals.
The Stockholm Challenge 2006 for the e-Choupal initiative. This award is
for using information technology for the economic development of rural
communities.

Innovation for India Award 2006 for ITC e-Choupal in the Social
Innovations category for business organizations. The first of its kind in India,
based on parameters of number of lives impacted, degree of impact on
organization and environment, uniqueness, leverage of resources and whether it
was scalable and sustainable, e-Choupal was declared as one of Indias Best
Innovations.
The Development Gateway Award 2005 (previously known as the
Petersberg Prize) for its trailblazing e-Choupal initiative. ITC is the first
Indian company and the second in the world to win this prestigious award.
The 'Golden Peacock Global Award for Corporate Social Responsibility
(CSR) in Emerging Economies for 2005'. The Company received this award
for its e-Choupal and social and farm forestry initiatives that are impactfully
transforming lives and landscapes in rural India.
The Corporate Social Responsibility Award 2004 from The Energy and
Resources Institute(TERI) for its e-Choupal initiative. The Award provides
impetus to sustainable development and encourages ongoing social
responsibility processes within the corporate sector.
The inaugural 'World Business Award', instituted jointly by the
International Chamber of Commerce (ICC), the HRH Prince of Wales
International Business Leaders Forum (IBLF) and the United Nations
Development Programme (UNDP) for the e-Choupal intervention. This award
recognises companies who have made significant efforts to create sustainable
livelihood opportunities and enduring wealth in developing countries.
The Enterprise Business Transformation Award for Asia Pacific (Apac),
instituted by Infosys Technologies and Wharton School of the University of
Pennsylvania, for e-Choupal.
PC Quests IT Implementation Award in the Best Project category, for
the e-Choupal initiative.
The Golden Peacock Innovation Award 2004 for e-Choupal.
The coveted "Golden Star Trading House" status by the Government of
India.
The NASSCOM award for 'Best IT User in FMCG' in 2003. The Award is
a recognition of ITC's successful integration of its IT usage with its business
processes, specially the e-Choupal initiative.
The Seagate Intelligent Enterprise of the Year 2003 Award, for the most
innovative usage of Information Technology. This award recognises ITCs
pathbreaking e-Choupal initiative.

ITC pioneered the cultivation and development


of Cigarette Tobaccos in India. For over 96 years, its
Indian Leaf Tobacco Development Division has worked
closely with farmers to grow quality cigarette tobaccos. It
is the largest buyer, processor and exporter of cigarette
tobaccos
in
India.
ITC buys nearly 50 per cent of all cigarette type tobaccos grown in India. It
has a team of experienced and highly skilled buyers and classifiers who source
tobaccos to exacting customer specifications. It has been Indias single largest
integrated source of quality tobaccos for customers in 37 countries over the
last six decades. ITC maintains a large inventory of quality tobaccos, making it
a One-Stop-Shop for Indian cigarette tobaccos. This strategic policy insulates
customers from crop fluctuations. ITC's comprehensive and sophisticated
R&D facilities cover all aspects of cultivation, processing and packing.
Thus, ITC's value proposition to its customers is timely delivery of quality
tobaccos
at
competitive
prices.
ITC's Green Leaf Processing plants at Anaparti and Chirala in Andhra Pradesh,
the tobacco belt of India, are among the best in the world. State-of-the-art
technology, including sophisticated quality controls, enables ITC to process
and deliver 100 million kgs of high quality tobaccos per annum. These
factories are supported with in-house warehousing which are benchmarked
to international standards to guarantee hygiene and infestation control.
ITC's quality emanates from its strategy of intimate involvement with the
tobacco farmers in India. Through technology and knowledge transfer, ITC
enables the Indian tobacco farmer to adopt best practices. ITC's team of
qualified and trained managers and support staff constantly assist the tobacco
farmer in assimilating new ideas in quality and productivity. ITC also cooperates with Government agencies to develop new varieties of tobacco,
and
to
develop
new
areas
for
tobacco
cultivation.
ITC is aggressively exploring strategic growth opportunities by innovatively
blending and extending the Company's proven competencies in the procurement
of agricultural products, storage and supply chain management. Closely
dovetailing with this strategic Endeavour, ITC-ILTD is venturing into the spices
business.
This entry into spices, specially branded spices, will further boost ITC's efforts

to export India's agricultural products. ITC's engagement with spices will


effectively leverage I LTD's established expertise in crop development,
procurement, productivity, quality, brand building and marketing to provide
consistently high quality spices to Indian and international customers.

ITC's Leaf Tobacco business has won national and international laurels for
research and development, quality, environmental management systems
and product excellence. The more important of these are:
The International Quality Rating System IQRS Level 7, awarded by Det
Norske Veritas in March 2006.
The Greentech Safety Platinum Award - 2006 in the Manufacturing
Sector Category for its leaf processing plant at Chirala, Andhra Pradesh.
The "Golden Peacock Environment Management Award" for the year
2005 by World Environment Foundation, New Delhi (Institute of Directors,
New Delhi) for its Chirala Unit.
Human Resource Excellence Award 2004 from Confederation of Indian
Industry (CII), Chennai.
British Standard 7750, a certification that is an equivalent of ISO 14001 to
the processing plant in Chirala for its commitment to Environment
management systems, as defined by British Standards.
ITC's R&D Center for leaf tobacco has received
_The Best Research and Development of New Innovation Gold award for
its contribution to farm productivity improvement through the introduction of
improved varieties and propagation of contemporary and cost effective agrotechniques.
_The Best Energy Conservation Implementation Gold Award for energy
and eco-conservation measures.
Its Green Leaf Threshing plants were the first of their kind in the world to
receive the ISO 9001 quality accreditation. They were also internationally the
first to get the ISO 14001 environment management system certification.
The processing plant at Chirala was the first unit in Asia to receive the
Social Accountability Standard Certification (SA 8000) from Det Norske
Veritas. The processing plant at Anaparti has also been accredited with SA 8000
in
the
year
2002.
The OHSAS 18001:1999 Certificate to the processing plants at Anaparti

and Chirala. This facilitates the integration of Quality, Environment, Social


Accountability and Occupational Health and Safety Management Systems.
ILTD has been the recipient of the following awards:
The ISO 9001 quality accreditation for Warehouse Management of Redried
Leaf Tobacco.
The "Cleaner Production Award" for the year 2004-05 by Andhra Pradesh
Pollution Control Board for its Chirala plant.
IMC Rama Krishna Bajaj National Quality Commendation Certification
(Manufacturing category) for the year 2004 to the Chirala plant.
_"Best Exporter of Unmanufactured Tobacco" (Manufacturers category)
for 2003 & 2004 from the Tobacco Board of India.
_The Rajiv Gandhi National Quality Award in the 'Best of All' category for
1994
and
1995
from
the
Government
of
India.
_National

Safety

Awards

from

the

British

Safety

Council

_Swords of Honour from the British Safety Council. The processing plant at
Chirala has won this award ten times since 1993 and the Anaparti plant six
times
since
1994.
"SECTOR 2000" Award in the Sector of Food, Drink and Tobacco in the
World in the year 2000 from RoSPA (Royal Society for Prevention of
Accidents),
UK,
to
the
processing
plant
at
Chirala.
_RoSPA Gold Awards from the Royal Society for Prevention of Accidents
(RoSPA)
_Special Commendation Safety Certificate from the Ministry of Labour, Government of
India.

Greentech Safety Gold Award for the years 2002-03, 2003-04 & 2004-05 to the
Chirala plant. The Anaparti won the Greentech Safety Gold Award for the year 200405.

QualTech Commendation Certificate to the Chirala plant from QIMPRO, Mumbai,


in the year 2004.

It takes true pride in being Citizen First

WE PUT INDIA
FIRST

The Big Picture:


ITCs International Business Division, one of Indias
largest exporters of agricultural commodities, has
conceived e-Choupal as a more efficient supply chain
aimed at delivering value to its customers around the
world on a sustainable basis.
The e-Choupal model has been specifically designed to
tackle the challenges posed by the unique features of
Indian agriculture, characterised by fragmented farms,
weak infrastructure and the involvement of numerous intermediaries, among
others.
The Value Chain - Farm to Factory Gate:

e-Choupal also unshackles the potential of Indian farmer who has been trapped
in a vicious cycle of low risk taking ability > low investment > low productivity
> weak market orientation > low value addition > low margin > low risk taking
ability. This made him and Indian agribusiness sector globally uncompetitive,
despite rich & abundant natural resources.
Such a market-led business model can enhance the competitiveness of Indian
agriculture and trigger a virtuous cycle of higher productivity, higher incomes,
and enlarged capacity for farmer risk management, larger investments and
higher quality and productivity.
Further, a growth in rural incomes will also unleash the latent demand for
industrial goods so necessary for the continued growth of the Indian economy.

This will create another virtuous cycle propelling the economy into a higher
growth trajectory.
The Model in Action:
Appreciating the imperative of intermediaries in the Indian context, e-Choupal
leverages Information Technology to virtually cluster all the value chain
participants, delivering the same benefits as vertical integration does in mature
agricultural economies like the USA.
e-Choupal makes use of the physical transmission capabilities of current
intermediaries aggregation, logistics, counter-party risk and bridge financing
while disinter mediating them from the chain of information flow and market
signals.
With a judicious blend of click & mortar capabilities, village internet kiosks
managed by farmers called sanchalaks themselves, enable the agricultural
community access ready information in their local language on the weather &
market prices, disseminate knowledge on scientific farm practices & risk
management, facilitate the sale of farm inputs (now with embedded knowledge)
and purchase farm produce from the farmers doorsteps (decision making is now
information-based).
Real-time information and customised knowledge provided by e-Choupal
enhance the ability of farmers to take decisions and align their farm output with
market demand and secure quality & productivity. The aggregation of the
demand for farm inputs from individual farmers gives them access to high
quality inputs from established and reputed manufacturers at fair prices. As a
direct marketing channel, virtually linked to the mandi system for price
discovery, e-Choupal eliminates wasteful intermediation and multiple
handling. Thereby it significantly reduces transaction costs.

e-Choupal ensures world-class quality in


delivering all these goods & services through several product / service specific
partnerships with the leaders in the respective fields, in addition to ITCs own
expertise. While the farmers benefit through enhanced farm productivity and
higher farm gate prices, ITC benefits from the lower net cost of procurement

(despite offering better prices to the farmer) having eliminated costs in the
supply chain that do not add value.
The Status of Execution:
Launched in June 2000, 'e-Choupal', has already become the largest initiative
among all Internet-based interventions in rural India.'e-Choupal' services today
reach out to more than 3.5 million farmers growing a range of crops - soyabean,
coffee, wheat, rice, pulses, shrimp - in over 38,500 villages through nearly 6500
kiosks across nine states (Madhya Pradesh, Haryana, Uttaranchal, Karnataka,
Andhra Pradesh, Uttar Pradesh, Maharashtra, Rajasthan and Kerela).
The problems encountered while setting up and managing these e-Choupals
are primarily of infrastructural inadequacies, including power supply, telecom
connectivity and bandwidth, apart from the challenge of imparting skills to the
first time internet users in remote and inaccessible areas of rural India.

Several alternative and innovative solutions some of them expensive are


being deployed to overcome these challenges e.g. Power back-up through
batteries charged by Solar panels, upgrading BSNL exchanges with RNS kits,
installation of VSAT equipment, Mobile Choupals, local caching of static
content on website to stream in the dynamic content more efficiently, 24x7
helpdesk etc.
Going forward, the roadmap includes plans to integrate bulk storage, handling
& transportation facilities to improve logistics efficiencies.
As Indias kissan Company, ITC has taken care to involve farmers in the
designing and management of the entire e-Choupal initiative. The active
participation of farmers in this rural initiative has created a sense of ownership
in the project among the farmers. . They see the e-Choupal as the new age
cooperative for all practical purposes.
This enthusiastic response from farmers has encouraged ITC to plan for the
extension of the e-Choupal initiative to altogether 15 states across India over
the next few years. On the anvil are plans to channelise other services related to
micro-credit, health and education through the same 'e-Choupal' infrastructure.

Would
he
get
a
fair
Farmer
Ashutosh
Dixit
Not any more. Thanks to ITC.

price
was

for
his
never

crop?
sure.

ITC's e-Choupal has won numerous awards:


The Stockholm Challenge 2006. This award is for using information
technology for the economic development of rural communities.
Innovation for India Award 2006 for ITC e-Choupal in the Social
Innovations category for business organizations. The first of its kind in India,
based on parameters of number of lives impacted, degree of impact on
organization and environment, uniqueness, leverage of resources and whether it
was scalable and sustainable, e-Choupal was declared as one of Indias Best
Innovations.
The Development Gateway Award 2005 (previously known as the Petersberg
Prize) for the trailblazing e-Choupal initiative. ITC is the first Indian
company and the second in the world to win this prestigious award.
The 'Golden Peacock Global Award for Corporate Social Responsibility
(CSR) in Emerging Economies for 2005'. The Company received this award
for its e-Choupal and social and farm forestry initiatives that are impactfully
transforming lives and landscapes in rural India.
The Corporate Social Responsibility Award 2004 from The Energy and
Resources Institute (TERI) for its e-Choupal initiative. The Award provides
impetus to sustainable development and encourages ongoing social
responsibility processes within the corporate sector.
The inaugural 'World Business Award', instituted jointly by the
International Chamber of Commerce (ICC), the HRH Prince of Wales
International Business Leaders Forum (IBLF) and the United Nations
Development Programme (UNDP). This award recognises companies who
have made significant efforts to create sustainable livelihood opportunities and
enduring wealth in developing countries.
The Enterprise Business Transformation Award for Asia Pacific (Apac),
instituted by Infosys Technologies and Wharton School of the University of
Pennsylvania.
PC Quests IT Implementation Award in the Best Project category.
The Golden Peacock Innovation Award 2004.

The NASSCOM award for 'Best IT User in FMCG' in 2003. The Award is a
recognition of ITC's successful integration of its IT usage with its business
processes.
The Seagate Intelligent Enterprise of the Year 2003 Award, for the most
innovative usage of Information Technology

ITC Infotech India Ltd., a global IT services company,


has established itself as a
key player in the offshoring
arena,
growing
at
a
cumulative annual growth
rate (CAGR) of around 85%, outpacing most of its
industry counterparts. The company offers a powerful
customer value proposition by combining the
experience it has accrued by providing a wide range
of outsourcing services to global customers with the
core practitioners expertise it inherits from the ITC
group in select key industry verticals where ITC
enjoys leadership status.
Profiled by Forrester Research as a Leading Tier 2 vendor, ITC Infotech
combines its industry vertical expertise with world-class technology capabilities
to deliver business-friendly solutions in four global verticals: Consumer
Packaged Goods (CPG) & Retail, Travel & Hospitality (T&H),
Manufacturing and Banking, Financial Services & Insurance (BFSI).
Based in the picturesque ITC Infotech Park that sprawls across 37 acres in the
heart of Bengaluru city, and through its wholly owned subsidiaries in the UK
and the US, ITC Infotech services Fortune-listed clients across North America
and Europe. The company today boasts a strength of 1,785 employees, while
CLI3L, ITC Infotechs Joint Venture with Client Logic, one of the largest
contact centre businesses in the world, has grown into a 24X7 technical support
powerhouse with over 2,600 employees.
A sharp domain focus ensures that IT and ITeS delivery always places business
needs ahead of technology. The technology delivery teams leverage this
knowledge to engineer business solutions, using CMM Level 5 processes for
offshore service delivery and a wide range of world-class technology
capabilities. This strategic philosophy is the key reason why ITC Infotech has

structured the delivery organization vertically along key business practices.


Today, ITC Infotech is aligned along the following business verticals:
Manufacturing
CPG/ Retail
BFSI
Travel & Hospitality
Industry Recognition Premier Analysts and industry experts have recognized
ITC InfoTechs position as the preferred IT solutions and services provider for
global clients:

Amongst the Top 100 Global Services Companies - Managing


Offshore & Neo IT
Ranked amongst Top 5 Specialty Application Development Providers
- Global Services, CMP Media
Leading Player in CRM & CPG Space - Forrester
Amongst Top Offshore SAP Service Providers - Forrester
Key Offshore Testing Services Providers - AMR Research

Emerging Tier 2 Company Forrester, AMR Research

e-Choupal - at a glance
Milestones
Commencement of initiative: 2000
States covered: 9
Villages covered: 38,500
e-Choupal installations: 6500
Empowered e-farmers: 3.5 million
Agenda for the next decade
States to be covered: 15
Villages to be covered: 1, 00,000
e-Choupals to be installed: 20,000
Farmers to be e-empowered: 10 million
Through the e-Choupal initiative, ITC aims to confer the power of expert
knowledge on even the smallest individual farmer. Thus enhancing his
competitiveness in the global market.
Given the low levels of literacy in the rural sector, the role of the
Choupal Sanchalak, the lead farmer of the village, in facilitating
physical interface between the computer terminal and the farmers is
central to project e-Choupal.

The immense potential of Indian agriculture is waiting to be unleashed. The


endemic constraints that shackle this sector are well known fragmented farms,
weak infrastructure, numerous intermediaries, excessive dependence on the
monsoon, and variations between different agro-climatic zones, among many
others. These pose their own challenges to improving productivity of land and
quality of crops. The unfortunate result is inconsistent quality and
uncompetitive prices, making it difficult for the farmer to sell his produce in
the world market.

ITCs trail-blazing answer to these problems is the e-Choupal initiative; the


single-largest information technology-based intervention by a corporate entity
in rural India. Transforming, Indian farmer into a progressive knowledge seeker
netizen. Enriching the farmer with knowledge; elevating him to a new order of
empowerment.
e-Choupal delivers real-time information and customised knowledge to improve
the farmer's decision-making ability, thereby better aligning farm output to
market demands; securing better quality, productivity and improved price
discovery. The model helps aggregate demand in the nature of a virtual
producers' co-operative, in the process facilitating access to higher quality farm
inputs at lower costs for the farmer. The e-Choupal initiative also creates a
direct marketing channel, eliminating wasteful intermediation and multiple
handling, thus reducing transaction costs and making logistics efficient. The eChoupal project is already benefiting over 3.5 million farmers. Over the next
decade, the e-Choupal network will cover over 100,000 villages, representing
1/6th of rural India, and create more than 10 million e-farmers.

A digital transformation
ITC began the silent evolution of rural India with Soya growers in the villages
of Madhya Pradesh. For the first time, the stereotype image of the farmer on his
bullock cart made way for the e-farmer, browsing the e-Choupal website.
Farmers now log on to the site through Internet kiosks in their villages to order
high quality agri-inputs, get information on best farming practices, prevailing
market prices for their crops at home and abroad and the weather forecast all
in the local language. In the very first full season of e-Choupal operations in
Madhya Pradesh, soya farmers sold nearly 50,000 tons of their produce through
the e-Choupal Internet platform, which has more than doubled since then. The
result marks the beginning of a transparent and cost-effective marketing

channel. Bringing prosperity to the farmers' doorstep.

Smart Cards enable farmer identification to provide customised


information on the echoupal.com website. Online transactions are captured
to reward farmers for volume and value of usage.

ITC provides the farmer


appropriate documentation
which records the quantity
and quality of his output.
Payment is instant.

ITC's mobile vans take the


message of e-Choupal to new
villages. Thereafter, virtual
helpdesks enable the farmer to
find solutions to his problems
through online interactions.
ITC has set up VSAT links to
overcome
connectivity
Linking farmers to remunerative markets
Farmers grow wheat across several agro-climatic zones, producing grains of
varying grades. Though these grades had the potential to meet diverse consumer
preferences, the benefit never trickled down to the farmers, because all varieties
were aggregated as one average quality in the mandis. Enter ITC's e-Choupal
intervention. The e-Choupal site is now helping the farmers discover the best
price for their quality at the village itself. The site also provides farmers with
specialised knowledge for customising their produce to the right consumer
segments. The new storage and handling system preserves the identity of
different varieties right through the 'farm-gate to dinner-plate' supply chain.
Encouraging the farmers to raise their quality standards and attract higher
prices. Managing risks through technology

In the high-risk business of shrimp


farming, the wealth of information
provided by aquachoupal.com has
proved a great boon for farmers in
Andhra Pradesh. This success has
encouraged ITC to plan its extension.

ITCs Aqua Care Centre in


Kakinada, Andhra Pradesh, has
revolutionised the concept of
shrimp seed testing. Its
sophisticated laboratory detects
the deadly White Spot virus in
the shrimp seed and advises
farmers on appropriate remedial
action.

Whats and ifs in the aqua farmers' life posed daunting odds. They were haunted
by the nightmare of contaminated soil, wrong levels of salinity in the water or
the killer White Spot virus, any of which could wipe out an entire shrimp crop,
until the e-Choupal site provided them the support and the know-how to cope
with and manage such risks. Information equips farmers with comprehensive
know-how to keep abreast of food safety norms to compete in the international
market. Information includes parameters for antibiotic usage, hygienic washing,
sanitised dressing and air-tight packing. All these factors help to neutralise the
risks involved in aqua farming. Making it economically much more attractive,
benefiting hundreds of aqua farmers.
A dependable knowledge partner
Coffee planters in India have for years been tossed between the highs and lows
of the international coffee market. The information needed to manage risks in
the volatile global coffee market, price updates and prevalent trends in coffee
trading were just not available to them. Launch of e-Choupal.com has equipped
India's coffee planters with appropriate knowledge base and risk management
tools. The site arms them with the latest prices posted on commodity exchanges
like CSCE in New York and LIFFE in London. Planters have access to technical
analysis by experts to help them comprehend trends, trading ranges and chart
patterns in simple language. 'Parity Chart' and the 'Calculator' on the site
convert the coffee prices quoted in international auctions into raw coffee
equivalent for the benefit of the small growers in India. Tradersnet, a special
link on the site, brings together a large number of coffee planters, traders and
roasters, creating a virtual market for transparent price discovery. ITC
empowers Indian coffee growers with expert knowledge in logistics and risk
management, thereby enabling them to face global competition.

echoupal.com
popular
growers

has

become

among
as

an

coffee
effective

platform for global trade.

In addition to assisting with knowledge management


through the website, ITC provides on-ground inputs to
farmers on best practices, grading standards, quality policy
etc
" A quiet digital revolution is reshaping the lives of farmers in remote Indian
villages.
In these villages, farmers grow Soya beans, wheat and coffee in small plots of
land, as they have for thousands of years. A typical village has no reliable
electricity and has antiquated telephone lines. The farmers are largely illiterate
and have never seen a computer. But farmers in these villages are conducting ebusiness through an initiative called e-Choupal, created by ITC, one of India's
largest consumer product and agribusiness companies."

ITC. Working for you. Working for India

The Aashirvaad way

Aashirvaad Atta
The Sunfeast way

Sunfeast Dark Fantasy


The Wills Lifestyle way

The John Players way

Aashirvaad Chilly Powder


The Kitchens of India way

Sunfeast Biscuits

The Expressions way

The Classmate way

The ITC-Welcomgroup way

The Mangaldeep way

Mangaldeep Agarbattis

Mangaldeep Safety Matches

The ECF way

At ITC, we build business leaders who create value. Who believe that the future
belongs to those, who are able to create it.
Which is why we value integrity, creativity, passion, a 'will do' attitude and the
will to succeed above all else.
Together, these empower our people to take risks, to experiment, to set their
own goals and win in the market place. In turn, we encourage those who are
eager to take the initiative to continuously learn and experiment. These are the
qualities which will help us remain contemporary and relevant at all times. We
believe that the most enduring way to retain talent is to enable our people to
continuously add value to them.
So what does ITC have in store for you?
At ITC we believe that our mission to enhance value creation for the
stakeholder can only be achieved through the quality and commitment of our
people. Towards this end, we continuously strive to unleash the potential of
each individual.
We leverage human capital for competitiveness by nurturing knowledge,
entrepreneurship and creativity. We believe it is these strengths that will help us
successfully compete in a globalised environment and exploit emerging
opportunities. We reward the will to succeed and the desire to compete with the
best in the world. We stimulate the drive to be the best and take immense pride
in being Indian.
We take an integrated view of structures, competencies, tasks and processes and
link all these to our long-term goals. Our performance management systems
focus on performance, meritocracy, equity and the upholding of company
values. We keep our work environment simple, informal and flexible with a
strong emphasis on human values. We value ideas and give people the space to
execute them.

We keep our people intellectually stimulated and give them the freedom to take
their own decisions. The responsibility to make ITC grow through innovation
and experimentation.
We have remained a vibrant company for nearly ten decades now because of our
ability to manage change proactively and to reinvent ourselves continuously
without compromising the ideals and values that have sustained us over the
years.
WE FOCUS ON VALUE ADDITION
We focus on value addition to enhance competencies. We believe professional
growth is the responsibility of both the individual and the organisation. We
provide opportunities for value addition through:
Exposure to World Class Manufacturing Facilities and Practices
Exposure to Internationally Benchmarked Marketing Practices
Formal Training and Development programmes in India and overseas
Membership of Multidisciplinary Task Forces and Project Teams
Focused Leadership Development Initiatives
Cross Functional and Cross Business Opportunities
THE KIND OF PEOPLE WE LOOK FOR
We do not believe in stereotypes. We believe diversity is essential for building a
wholesome work environment. But there are certain basic attributes we look for
Integrity
Intellectual rigour
A 'will do' attitude
Team skills
Ability to think strategically
High energy
Creativity
Leadership
REMUNERATION
ITC believes that managerial remuneration is an important
instrument in attracting and retaining talent and a key component
of the performance management system. Three features of ITC's
remuneration strategy are:

Remuneration must leverage performance and therefore the


need for a strong linkage between remuneration and
performance when considering annual remuneration reviews
as well as when periodically adjusting remuneration for
market.

Remuneration on an on-going basis in relation to identified benchmark


companies must be market-led. For this purpose remuneration is reviewed
to ensure that remuneration practices are in sync with the competitive
situation.

Remuneration must take into account "affordability" and the Company's


capacity to pay and hence cannot be divorced from business realities

THE STRUCTURE OF ITC:As stated earlier, ITC is a well-diversified company with the interests in
various businesses. To facilitate efficient running of the business, the
company has spit up in to several division, which enjoys great deal of
functional autonomy. Divisional Board or the Divisional Executive
Committee depending up on its size heads each division.
Although management is vested in the Board of Directors consisting of the
both Executives and non-executive directors, most of the authorities and
responsibilities have been delegated to committee of directors which
comprises of executive directors only.
All of the Divisional boards and divisional executive Committees report to
Committee of directors.

THE VARIOUS DIVISIONS WITH THEIR HEAD QUARTERS ARE AS


FOLLOWS :

S.No.

Name

Place

Corporation Headquarters (CHQ)

Calcutta

Indian Leaf Tobacco Development Division (ILTD)

Guntur

Indian Tobacco Division (ITD)

Calcutta

Packaging and Printing Division (PPD)

Tiruvottiyur

ITC Bhadrachalam Paper Board Ltd.

Secundrabad

Trebeni Tissue Division

Calcutta

Hotels Division (HD)

New Delhi

Export Division (ED)

New Delhi

Agri-business Division (ABD)

Hyderabad

10

International Business Division (IBD)

Mumbai

11

Information Systems Functions (IFS)

Calcutta

12

Integrated Research Center (IRC)

Bangalore

13

International Travel House (ITH)

New Delhi

Divisions are further broken up into component unit and branches such as
etc. for example- the hotel division holds around Marketing branches,
Cigarettes factories, Hotel properties 17 hotels under the name of
welcome Group.
AUDITORS:-

A.F. FERGUSON & CO.

CHARTERED ACCOUNTANTS, KOLKATTA

SAHARANPUR THE STORY OF AN INSTITUTION :


ITC Saharanpur was born out of a planned inroad and a fortuitous
meeting, which was to unleash the beginning of the dream.

By 1924 the Peninsular Tobacco Company had manufacturing unit


at Munger and Bangalore and was now combing the northern region to
locate its third one. Saharanpur seemed the ideal choice due its location
advantage being on the main railway lines connecting Calcutta as well as
Bombay with west Punjab right up to Peshawar.
As the story goes R.G. Baker, one of the stalwarts of the company,
visited Saharanpur in search of suitable land to locate the factory. The visit
had almost proved to be an exercise in futility and Mr. Backer was standing
at the railway station ready to leave. Just then BABU SHIV DAYAL
SHARMA walked up to him with an invitation to inspect the land bounded
on the west by the canal and to the north by Sardar Patel Marg. The site as
approved and the initial lease was signed on the 7th July 1925. Thus began
an era of challenge and transition.
J.P. HILL became the first factory manager and initiated
operatwithlabor force of 26 men (at 8 annals a day), a technology of fine
rose watering can for conditioning, 2 legg cutting machine, 1 dryer, 1
cooler, 3 standard making machines (making 500 cigarettes a minute), 3
rose cracknel packing machines and with an engineering department out if
the open under the mango tree trees opposite the site of the pp school.
Production in the first month was 5.9 million and touched 23 million by the
end of year.

The decade of the thirties witnessed the series of unprecedented


events. These ranged from a three-year closure in 1934 owing to
depressed trading condition and the Swadeshi and Boycott Movement to
a devastating earthquake in the same year. The factory in Munger was
severally hit, so opening of the Saharanpur unit compensated the loss of
production. In 1932 the first Molins M2 packer arrived.
Another landmark event in the annals of time was the foundation of
the Cigarette Workers Union in 1938 with the help of J.B. Miller and Pandit
Kamalnath. The registration of the union took place in March 1939.
30th Dec. 1953 was an important milestone in securing sound working
relations between workers and management. This day marked the signing
of the First Long Term Agreement.
The post-war years heralded an ear of modernization end
experimentation for ITC Saharanpur. Two new Lauhoff Stem Rolling
Machines, Two MRTC Machines and the first format or Threshing and
Classifying plant made their entry. 1954 signified the arrival of the Forklift,
which revolutionized the method of work in the go downs. By the end of
sixties wooden cases had gradually given way to CFCs (corrugated fiber
containers).
In 1968 MK8 makers arrived along with PA7RO Filter Attachment.
The factory was running in three smooth shifts and production had soared
up to 924 million. It was at this juncture that Ted Ramble retired after the
longest single tenure as branch manager.

In 1970 the Imperial Tobacco Company changed its name to


India Tobacco Company Ltd. Workers welfare activities saw an
acceleration with the launch of workers Welfare Scheme. Also a greater
emphasis was now been laid on the creation of a culture of continuous
learning.
In 1983 Computer Center was set up in the unit by which time the
payroll,

Financial

Accounting

and

Inventory

system

had

been

computerized. In 1984 and Integrated Factory Information System was


developed in Bangalore and passed on other units. The technical training
center was established in 1986 to provide technical training and know how
to workers and managers alike.
In 1988 LTA was the landmark event. It made provision for the
computerization of work processes for clericals in the factory and also for
secondarization, which involved the physical merger of the packing and
making departments, which till now has been in relative isolation of each
other. The Duplex Packer was introduced in 1989 and was readily received
and

adopted

too.

Simultaneously

high

quality

requirements

and

subsequently growing competition had become realities of the day. The


introduction of high speed LOGA Machine in 1993 was an example of the
first post-liberalization attempt to upgrade the existing state to tune with
these demands.
Saharanpur had the rate distinction of winning the British Safety Councils
National Award for the third year in succession for a low accident rate.
Fortunately the Luxury Tax too was lifted in October 1995 through an
ordinance of Governor and normal production was resumed. It had been a
long struggle with the entire unit displaying remarkable fortitude. Despite all
limitation even during this crisis Saharanpur was the largest manufacturer.

THE PRESENT ITC SAHARANPUR


Today ITC Saharanpur, established in 1926, stands as the second
largest factory in ITD after Bangalore. It occupies an area of 29 acres. It
has a workforce of over 1300 unionized employees and staff of around 50
managers, 14 ladies confidential secretaries and 4 assistant secretaries
Officers. It has a licensed capacity of 59mnc/day (@290 days) and daily
average daily production around 45m. The production in factory runs for 24
hours in various shifts. The early shift starts at 6:a.m. and ends at 2:p.m.
The late shift hours are from 2:00 p.m. to 10.00 p.m. night shift run from
10.00 p.m. to 6.00 a.m. common shift hours are from 8:00 a.m. to 4:30 p.m.
Winds

of

change

are

sweeping

ITC

SAHARANPUR.

AN

INVESTMENT PLAN WORTH RS. 87.37 CRORES WAS UNDER WAY


INVOLVING

PLANNED

FACTORY

UPGRADATION

AND

MODREATION OF PLANT AND FACTORY WHICH WAS COMPLETED


BY MARCH, 1999. ITC Saharanpur has outlined for itself a set of core
beliefs and quality objectives reflecting a high degree of professionalism.
Customer-focus both internal and external forms an integral part of the
guiding principles. The unit believes in unleashing the full potential of
improvements, openness and innovations. Pursuit of excellence and
increased knowledge of the tobacco business are considered of paramount
importance. ITC Saharanpur manufactures over 45 million cigarettes daily.
The unit produces Wills navy cut, Gold Flake Filter, etc. Besides the unit
also manufactures bingo brands like Scissors Std., Berkeley Std., Capstan
Std., Hero, Red Lamp & Honeydew etc. The unit will also shortly
commence the manufacture of King-Size Cigarettes of the Bingo Cigarettes
like Scissors Std., Capstan Std., Berkeley Std., Bristol and Hero and the
exports like Huston and Midland (to USA) and Classic (to Russia).
In 1996 a Long Term Agreement between the management and the
union is another instance of continuous process in the history of ITC,

Saharanpur. The agreement provides the flexibility in work norms, practices


and manning ensuring world-class level of performance and productivity.
ORGANIZATION STRUCTURE IN I.T.C. SAHARANPUR
ITCs (Saharanpur Branch) organization structure comprises of a
Branch Manager at the apex. The second level of the organizational
hierarchy

comprises

of

Manager

(Production),

Branch

Manager

(Engineering), Manager (Human Resource), Manager (Commerce),


Computer Center Manager (MIS). The Manager (Production) is further
Assisted by Security manager, In-charge of PMD, In-charge of SMD, Incharge of QUIS, and Logistic Manager. They are further assisted by in
charge of Slide Making, Shift Manager SMD 6, in-charge of Maintenance
making, In-charge of Leaf Godown, In charge of Programming Shipping.
On the other hand the branch manager is assisted by in-charge of
maintenance of PMD, In-charge of Engineering store project, In-charge of
Packing and Marketing & In-charge of maintenance Electricity. H.R. of
Human Resource and Welfare Officer assist H.R. Manager. In-charge
Procurement Asset further assists Commercial Manager. Books of account
and assistant Commercial Manager (Indirect Tax. System controller and
software engineer assist Computer Center Manager. For safety and
security measures by Branch Manager is further assisted by Safety
Manager, Safety Committee. The Department applies various schemes for
Safety and Security of the workers.

DEPARTMENTATION
HUMAN RESOURCE DEPARTMENT :HR Manager heads the human resource department. This department was
set up with an aim of acquisition and proper utilization of Human Resource. It
also has responsibility of marinating cordial relation between the managers and
the workers. The important functions of this department are performance
appraisal and another welfare activities for workers.
PRODUCTION DEPARTMENT :-

Production Manager heads this department. The manufacturing


environment of ITC Saharanpur is highly advanced, utilizing only the latest
production techniques in all phases of manufacturing. This department also
looks after maintenance of plant and equipment.
ENGINEERING DEPARTMENT :Branch Manager heads this department. This department is ensures
maintenance of plant and maintenance of electricity. In-charge of
Engineering store project ensure prevention of thefts, sabotage and
maintenance of general law. In-charge of SMD marketing and packing is
responsible for all kind of store and shipping activities.
COMMERCIAL DEPARTMENT :Commercial Manager heads this department. The functions of this
department include the maintenance of all accounts of the company. The
trial balance and income statement are finally prepared which is sent to the
head office for the preparation of combined balance sheet. The costing
section of the department is responsible for computing costs of each
product so that its selling price maybe determined accordingly.
MIS DEPARTMENT :The Computer Center Manager heads this department. This department is
responsible for all kinds of maintenance of computer system and this
department is successfully maintaining the MANMAN system. This
department is now introducing a new system, which is called SAP.

EXECUTIVE SUMMARY :ITC an affiliate of BAT has a dominating 66% volume share and 76%
value-share in the Indian cigarette market. Cigarette and tobacco forms the
bread and butter business of the company accounting for 90% of turn over.
Besides that ITC also has interest in hotels, packaging and paper
businesses.
The cigarette and tobacco health organization globally as well as in
India, the anti-smoking lobbying has been gaining ground. The cigarette
industry faces immense pressure with declining volumes and increasing
government regulations and taxation. Profitability of most player has been
affected.
Players like ITC with strong brand equity and pricing power have
been able to maintain margins through price increases. The industry has
received some relief in the form of excise exemption for manufacturing in
Northeastern states, and most companies have commenced manufacture
in the region to avail of the excise exemption.
ITC has recently also ventured into a number of new businesses,
which will leverage on its existing strong Brand equity. The company has
forayed into retailing business with opening up its apparel retail shops in
Delhi. It plans to invest Rs. 2.5bn in these new ventures. It also plans t
enter into retail processed food business through its hotel chains.

THE FACTORY COMPOSITION


The factory is divided in to four sections :

1.

1.

Raw Material Stores

2.

Primary Manufacturing Dept.

3.

Secondary Manufacturing Dept.

4.

Shipping Godown
Raw Material Stores :This is also known as leaf go down and it deals with the storage of
raw tobacco is that in unmanufactured form.

2.

Primary Manufacturing Department :Primary Manufacturing Dept. undertakes manufacture of cut tobacco,
which after being stored in the cut tobacco store is cleared for
cigarettes making with in the factory or in the factories of the job
workers located at other places in India. Here following important
functions are performed :
Conversion of leaf of cut tobacco in blended form.
To maintain consistency and quality of blades.
There are two process name4d as

Lamina Line

Stem Line

Which are followed here, as the primary functions are which cut
tobacco is produced and the output of the PMD is transferred into CTS BIN,
which is turn is transferred to SMD for conversion of cut tobacco into
cigarettes in packed form.
3.

Secondary Manufacturing Department :Following two important functions are performed here :
Conversion of cut tobacco into cigarettes in packed form and
transferring to shipping.

To ensure that production target are met with in the laid down
parameters of quality.
Following Statutory records maintained are :(A)

Appendix B :- It show daily movement of cut tobacco stock

operation wise. Issue of cut tobacco in Appendix B forms the input of cut
tobacco in Appendix C.
(B) Appendix C :- It shows the linkage output of cigarettes in trays and
wastage. Output of cigarettes in Appendix C forms and input for
Appendix D.
(C)

Appendix D :- It shows the linkage between the number of

cigarettes (in trays) made as / APPENDIX C and number of cigarettes


(000) packed and waste cigarettes.

Summary delivered to shipping shiftless summary of production in CFCs


broadness giving the serial no. Of CFCs.
3.

Shipping Go down :From the shipping godown the cigarettes are cleared on payment of

duty. Also here done is logistics to ensure that cigarettes are manufactured
and dispatched as per requirement of the market. It also coordinates
material procurement, manufacturing and shipping to ensure smooth flow
of production with optimum inventories.
FINANCIAL SYSTEM FOLLOWED IN ITC LTD. SAHARANPUR
In ITC, three system are followed from financial point of view :
(1) Budgeting & Forecasting System :-

ITCs financial strength is based upon its efficient forecasting and


budgeting system. This is done not only is quantities but also in value
terms. Budgets are normally made for three years. First year of budget
being of commitment, second and third year of future trends. It also has
projection known as out look for the fifth year.
Actual are compared with the budget every month and are reported
to Committee of Director every quarter together with the explanation of
the major variances. Budget is flexible enough to adopt any change as per
requirement of the circumstances.
(2) Costing System :The costing system is designed to meet the need of the forecasting
system. The main system is use in material costing including contribution
analysis. In this only raw material costs as variable and rest all as fixed
even if practically they very with the sales. These variable costs in turn
takes as standards. In addition, a corresponding variance analysis is also
done. All stocks are held at Standard Cost.
a.

Accounting System :Control over functions in ITC is established and maintained through

an extensive system of reporting, internally referred to s REPORT BACKS.


CONCEPTS OF UIR
Here in ITC a system is known as MANMAN for accounting purpose
and maintaining accounting database. It is a very complex system and
primarily consists of three models, which go into making the TRIAL
BALANCE.

The Three Models Are :


1)

Accounting Payable (AP).

2)

Manufacturing Models (MFG).

3)

General Ledger (GL).

The data from the above mentioned three models of the MANMAN system
together help in formation of the Trial Balance.
The UIR report is generated by MANMAN using module one and two. Any
authorized user following simple instructions already available generates
the report. The report can be generated between any two specified dates
and as per various requirements.
What is UIR?
UIR is basically a provision generated in MANMAN as per Triple Entry
System followed in ITC. The provision is offset before making payment to
the vendor. Thus the provision exists from the time goods and the us
receives services till the payment is made to the vendor.
The provision is created by the following accounting entries :Stock

a/c

Dr.

UIR provision

a/c

Cr.

By the amount of goods or services received.


The provision is offset by the following accounting entries :UIR Provision

a/c

Dr.

Party or Suppliers

a/c

Cr.

By the amount equal to the payment to be made.

MANUFACTURING PROCESS

SEEDS TO SMOKE
The Indian Leaf Tobacco Division of ITC procures tobacco from the
farmers through government run auction platform. The tobacco supplied by
ILTD is stored in the leaf godown from where it is sent to the primary
manufacturing department for conditioning, cutting and drying before it is
finally made into cigarettes. The PMD process is of paramount importance
as it determines the flavors, the moisture content the filling value, the
number of puffs and ultimately the finally products.
The processed tobacco is stored in the cut tobacco stores till it is
required for usage. Thereafter it is taken to the cigarettes making
department. Cigarettes are made on MK 8 PL., MK 8 D and MK 8 MAX 8
MAXC and Loga machines. They are packed in the cigarettes packing
department on Duplex, Duplex Complex and CMEs and wrapped on
Bangalore Wrappers. Cigarettes packing are finally made into outer and
packed in Corrogated Fiber Cartons (CFCs) are transferred to the Shipping
Department for dispatch either to wholesale dealers, company godowns or
for exports and thereafter reaches the consumers.

SEED TO SMOKE PROCESS

ILTD
CURED LEAF AND TOBACCO

CIGARATTE FACTORY
PRIMARY MANUFACTURING DEPARTMENT
(PROCESSED TOBACCO)

CIGARETTE MAKING
(CIGARETTES)

CIGRARETTE PACKING
(CFS)

MARKET
(WHOLESALERS & RETAILERS)

SMOKERS

HISTORY

AND

PROFILE

OF

UNIVERSTY

OF

LUCKNOW
The idea of starting a University at Lucknow was first mooted
by Raja Sir Mohammad Ali Mohammad Khan, Khan Bahadur,
K.C.I.E. of Mahmudabad, who contributed an article to the
columns of "The Pioneer'' urging the foundation of a University
at Lucknow. A little later Sir Harcourt Butler, K.C.S.I., K.C.I.E,
was appointed Lieutenant-Governor of the United Provinces,
and his well-known interest in all matters under his jurisdiction,
especially in matters educational, gave fresh life and vigor to
the proposal. The first step to bring the University into being
was taken when a General Committee of educationists and
persons interested in university education appointed for the
purpose, met in conference at Government House, Lucknow, on
November, 10, 1919. At this meeting Sir Harcourt Butler, who
was in the chair, outlined the proposed scheme for the new
university.
A discussion followed, and it was resolved
that Lucknow University should be a
Unitary,
Teaching,
and
Residential
University of the kind recommended by
the Calcutta University Mission, 1919,
and should consist of Faculties of Arts,
including Oriental
Studies,
Science,
Medicine, Law, etc. A number of other
resolutions was also passed and six subcommittees were formed, five of them to
consider questions connected with the University and one to
consider the arrangements for providing Intermediate
Education. These sub-committees met during the months of
November and December, 1919, and January, 1920; and the
reports of their meetings were laid before a second Conference
of the General Committee at Lucknow on January 26, 1920;
their proceedings were considered and discussed, and the
reports of five of the sub-committees were, subject to certain
amendments, confirmed. The question of incorporation of the
Medical College in the University, however, was for the time
being left open for expression of opinion. At the close of the

Conference donations of one lakh each from the Raja of


Mahmudabad
and
Jahangirabad
were
announced.
The resolutions of the first Conference together with the
recommendations of the sub-committees as confirmed at the
second Conference were laid before a meeting of the Allahabad
University on March 12, 1920, and it was decided to appoint a
sub-committee to consider them and report to the Senate. The
report of the sub-committee was considered at an
extraordinary meeting of the Senate on August 7, 1920, at
which the Chancellor presided, and the
scheme was generally approved. In the
meantime the difficulty of incorporating
the Medical College in the University had
been removed. During the month of April
1920, Mr. C.F. de la Fosse, the then
Director of Public Instruction, United
Provinces, drew up a Draft Bill for the
establishment of the Lucknow University
which was introduced in the Legislative
Council on August 12, 1920. It was then
referred to a Select Committee which suggested a number of
amendments, the most important being the liberalising of the
constitution of the various University bodies and the inclusion
of a Faculty of Commerce; this Bill, in an amended form, was
passed by the Council on October 8, 1920. The Lucknow
University Act, No. V of 1920 received the assent of the
Lieutenant-Governor on November 1 and of the GovernorGeneral
on
November
25,
1920.
The Court of the University was constituted in March, 1921,
and the first meeting of the Court was held on March 21, 1921,
at which the Chancellor presided. The other University
authorities such as the Executive Council, the Academic
Council, and Faculties came into existence in August and
September, 1921. Other Committees and Boards, both
statutory and otherwise, were constituted in course of time. On
July 17, 1921, the University undertook teaching -- both formal
and informal. Teaching in the Faculties of Arts, Science,
Commerce, and Law were being done in the Canning College

and teaching in the Faculty of Medicine in the King George's


Medical College and Hospital. The Canning College was handed
over to the University on July 1, 1922, although previous to
this date the buildings, equipment, staff, etc., belonging to the
Canning College had been ungrudgingly placed at the disposal
of the University for the purposes of teaching and residence.
The King George's Medical College and the King George's
Hospital were transferred by the Government to the University
on
the
March
1,
1921.
The following three Colleges provided the nucleus for the
establishment of the University:

The King George's Medical College. (Now Known as King


George's Medical University)
The Canning College.
The Isabella Thoburn College.

This was a rich inheritance for the new-born University in 1920,


both materially and intellectually, and it brought with it also the
richest of all heritages "a fine tradition of some fifty-five years
in the case of the Canning College and some nine years in the
case of the King George's Medical College." To this the
generous taluqdars of Oudh added an endowment of nearly
thirty lakhs. The support from Sir Harcourt Butler's
Government was strong and hearty. Since then the
Government of the United Provinces has annually contributed a
substantial share towards the maintenance of the University.
In the early days, the Canning College had no building of its
own, and had to lead almost a peripatetic existence, the scene
of its activity being periodically changed as one or other
building proved unsuitable or insufficient. During the first
twelve years, the College was shifted from its original abode,
the Aminuddaulah Palace, to a number of places, one after
another, including the Lal Baradari. At last, it was housed in its
own building at Kaisar Bagh. The foundation stone of this new
building was laid by the Viceroy, Sir John
Lawrence, as far back as November 13,
1867, but the work of construction was
not completed until 1878. On November

15 of that year, Sir George Couper, Lt. Commissioner of Avadh,


formally opened the new building. For well over three decades
the Canning College remained in the Kaisar Bagh building; but
this site was scarcely suitable for the development of a big
residential institution; and College Management had to cast
about for a more spacious site somewhere else. The provincial
Government was prevailed upon to come to its assistance and
it readily consented to purchase the college building for a sum
of Rs. 2,10,000/- to house the Provincial Museum. In 1905 the
Government handed over to the college the extensive walled
garden of about 90 acres on the north of the river Gomti,
popularly known as Badshah Bagh, originally a garden house of
King Nasiruddin Haidar, and, since the pacification of Avadh,
the Lucknow residence of the Maharaja of Kapurthala. Of the
old royal building of this garden, only the Lal Baradari, one
lofty and handsome gate and one canal have survived as a
reminder
of
its
past
glories.
The implementation of the scheme of a new building was made
possible because of the special grant made by the Government,
the proceeds of the sale of the old building at Kaiserbagh and
munificence of Maharaja Sir Bhagwati Singh of Balrampur. The
plans of the building were entrusted to the well-known
architect. An impressive design in the Indo-Saracenic style was
prepared by Sir Swinton Jacob. The plans of the building were
considered by the experts to be so distinctive and elegant that
they were subsequently sent for demonstration at the
Exhibition held in London on the occasion of Festival of Empire
in
1911.
The Central Library of the university known as the Tagore
Library is one of the richest libraries in the country. It has 5.25
lakh books, 50,000 journals and approximately 10,000 copies
of approved Ph.D. and D.Litt. dissertations. This library is
computerized and has its own web site. It is equipped with the
facilities of lending books, inter-library loan, reference services
and photocopying. The total staff strength of the library is 80
which include the administrative, professional, semiprofessional
and ministerial staff. Prof. Aqil Ahmad, Department of Statistics

is the present Honorary Librarian and Dr.


Jyoti Mishra, the Deputy Librarian.
The University also has a Cooperative
Lending Library, in addition to the individual
departmental libraries. Keeping in view the
growing
need
for
education
and
professionalism the University has recognized 48 associated
colleges for the teaching of undergraduate courses. Some of
these colleges have also been permitted to undertake
postgraduate teaching in various subjects. For a healthy
relationship among the teachers, students and non-teaching
staff, the University has created three independent bodies Lucknow University Teachers' Association, Lucknow University
Students' Union and Lucknow University Karmachari Parishad.
Prof. D. P. Tiwari and Dr. Pushpendra Mishra are the respective
President and General Secretary of the Teachers' Association.
The Students' Union, during the current academic session has
engaged itself in many constructive activities. It has organized
a few national seminars on relevant issues, worked in the
direction of improving the living conditions of the students on
the campus and in the hostels. It has also undertaken tree
plantation and blood donation camps. The University has an
efficient Proctorial Board headed by Dr. A. N. Singh of the
Department of Social Work to maintain law and order on the
campus.
The University also provides residential facilities to teachers,
students and non-teaching staff. There are over all 13 hostels
for boys and girls in the University. Kailash Hall and the New
Management Girls Hostel can house nearly 600 girl students.
Extra-curricular and employment needs of the students are
taken care of by various centres and associations, such as,
Delegacies, Athletic Association, Centre for Cultural Activities,
Information and Employment Bureau and Centre for
Information, Publication and Public Relations. An important
feature of the University is the organisation of regular National
Service Scheme programmes to create awareness for social
service amongst the students. The University also imparts

military training to the students through its NCC Wing. The


cadets of the Army and Naval Wings contribute effectively to
society by participating in activities like election duties,
facilitating traffic control, blood donation, tree plantation, etc.

During the past two decades there has


been an extension of the University
Campus. This is borne out by the fact that
a huge and majestic building, as part of
the New Campus, has been constructed on
75 acres of land provided by the State
Government on Sitapur Road near
Engineering College. The New Campus at
present is being used for the teaching of
management and law courses. It also has
a hostel for boys almost ready for use. The University of
Lucknow in terms of its excellence in academic and extracurricular fields has acquired a prestigious place among the
leading universities of the country. Despite general criticism
with regard to the falling standards of higher education it will
not be an exaggeration to assert that this University, even to
date, maintains its dignity and quality of education.
Transparent Administration

Committees constituted to decentralize administrative


work
Continuous direct monitoring of progress in both
administrative and academic work by the authorities

Direct interaction of Vice-Chancellor, Proctor and other


administrative heads with students of graduate, post
graduate and research programs for feedback on
infrastructural facilities like labs and regularity and quality
of teaching.

Special interactions with new faculty, researchers and


outstanding performers in the field of sports, art and
academics for encouragement and appreciation.

Improved Academic Environment

Process of restructuring of faculties and Streamlining of


Departments has been expedited.
A new Faculty of Management and Administration is being
created.

The Arts Faculty is being trifurcated into Faculty of


Languages & Literature, Faculty of Humanities and Faculty
of Social Sciences.

Four new institutes have been formed.


Institute of Rural Development.
Institute of Environment and Ecology
Institute of e/Mass Communication Film Technology
and Apparel Design.
Institute of Materials Science.
Business India has rated the Department of Business
Administration in top 10 institutions of Country, the only
institution from Uttar Pradesh.

Election and appointment of more than 50 faculty to


ensure quality teaching and research.

Intervarsity consultation on Cadre Building Course for


Womens' rights.

Organization of high level National and International


Academic meets including 29th Indian Social Science
congress, The Year that was - Annual general meeting of
Material Science Research, Society of India, Carbo XX,
International Seminar on Northward flight of India in the
Mesozoice - Cenzoic, National Seminar on Women's
Empowerment and Child Development.

Special lectures by distinguished scholars and leaders


organized by various departments including Prof. Berek,
Prof. Panchanan Pramanik, Prof. Vibha Chaturvedi, Dr.
Kiran Bedi, Mr. P. Sangma, Mr. Salman Khursheed, Mr.
Mufti Mohammad Sayeed, Ms. Subhashini Ali, Chief

Minister of the State Mr.


many others.

Mulayam Singh Yadava and

UGC Academic Staff College has a visiting American


Scholar for Capacity Building in Teaching of English as a
Second Language.

Timely and peaceful conduct of Semester and year-end


Examination.

Implementation

of

Academic

Calendar.

High Quality Research and development

Record 15 SAP proposals and 20 minor/major projects


sent to UGC for approval.
15 Research journals published from various departments.

13 Teachers participated in International Seminars for


collaborative research.

3 Toppers for Lucknow University participated in the Indo


German Winter Academy-2005.

3 Faculty members went on leave to work in Foreign


Universities.

University Faculty Members awarded prestigious Fulbright


Scholarship and ICTP Associate ship.

Department of Journalism and Mass Communication


selected as Nodal Centre of Makhan Lal Chaturvedi
National University of Journalism.

D.N. Majumdar Endowment


Department of Anthropology.

Prof. R.P. Singh, Vice-Chancellor received Flory Award,


First Asian to receive this award-the highest in the field of
Materials and Polymer Science considered to be second to
Nobel Prize.

Fund

created

in

the

University of Lucknow has emerged as a leader in


teaching and research in Science' Communication as
acknowledged by NCSTC, DST, Govt. of India, in a
recently held 5th National Science Communication
Congres at Varanasi.

Industry-Institute
Partnership
Cell
Department
of
Business

setup
in
the
Administration.

Record Selection and Placement

28 students selected in judicial services, 3 in lAS, 12 in


U.P. and Uttaranchal Civil services, several selected in
corporate house.
Highest number of JRF /NET selections in North India.

Record campus selection by companies in MBA and other


professional courses.

University Exchange programs including two UN Exchange


programs organized.

2 students selected in National Cricket Team.

Students of Institute of Mass Communication in Science &


Technology have won the "Award for Best paper
Presentation" in a NCSTC, DST, Govt. of India sponsored
conference on Science Communication held at Chitrakut
(MP) as well as in 5th National Congress on Science
Communication
at
Varanasi.

Face lifting of the Campus augmentation of facilities

Faculty Building, Teacher Quarters, Labs, University Guest


House and Gymnasium renovated
Two new hostels built for students
Development of proper parking lots to ensure vehicle free
academic campus.

Well-Equipped Studio in the Institute of Journalism.

Safe drinking water, proper sanitation, clean toilets inside


the campus and hostels for boys and girls.

Plantation drive in both campuses with 3000 plants


planted.

Extensive
computerization
and
establishment
of
independent
computer laboratories
in
several
departments.

Special Events to rejoice

85th Foundation day celebrated where distinguished


Alumni were felicitated. They included Padmshree K.P.
Saxena, Health Attache to American Embassy Dr Altaf Lal,
Prof. K.K. Tewari from California. Prof. S.K. Dubey, Former
Director, IIT, Kharagur, Olympian Babadin Chaudhry and
the centenarian Justic Ram Nath Sharma, Shringarmani
Kumkum Dhar was also facilitated after her spell binding
performance on the Foundation Day.
First National Half Marathon organized with over 1000
participants. Flagged off by Dr. Satyararayan Reddy, ExGovernor of U.P., Bihar and Orissa. Generously sponsored
by corporate houses, banks and National Research
laboratories. First ever organized by a University in India.

25th Social Congress was successfully held at Lucknow


University for first time. Most of the Departments
/Institutes were actively involved. Several distinguished
personalities from all over India participated.

Reunion of Alumni in several departments.

Cultural programs by artists National Eminence.

Cultural Activities with large student participation organized.

(PROJECT ASSIGNED TO ME IN INDIAN TOBACCO COMPANY


SAHARANPUR) BY HR DEPARTMENT

The project topic should cover the following:


Design a quiz on Labour Laws of India
Should include all acts related to labour for example:
a)

Factories act

b)

Contract labour act

c)

Payment of wages

d)

Apprentices

e)

Minimum wages

f)

Shops and establishment act

g)

Industrial disputes

The quiz should have 200 questions related to the above


Important websites are

Indianlabourlaws.com

Indiainfoline.com

Website of ministry of Labour

RULES OF QUIZ
These rules mentioned below must be obeyed strictly disobedience of these
results may lead disqualifications from the quiz

BEFORE THE QUIZ

Questions asked in the quiz may or may not be from the


study material provided for that please refer the reference provided

Questions may be descriptive as well as objective also so


be ready for that.

DURING THE QUIZ

Do not keep with you book, loose paper or any other


written or printed material, wallet, mobile phones, pager and other
communicating devices with you.

There will no entry in quiz After beginning of the quiz


come 15 minutes before the time allotted for quiz

Late comers will automatically disqualified for the quiz

For each questions in the Explain the following round 10


minutes will be provided and questions in this round will pass to another
team in case it not answered by team to whom it is allotted or answered
Wrongly

If passed question is not answered by the team to whom


this question is passed to next team in series.

If these question is not Answered correctly by any team


then question of this round will pass the audience.

For each correct Answer by desired team is +10


answering the question of other team during this round is bonus +5.

This round contains no negative marking for answering


the question wrong.

Question asked in multiple choice and rapid fire round


are not transferable

For Answering the question of multiple choice round time


of 1 minute is allotted for answering after asking the question

For every correct response there is +10 and for every


wrong response the there is - 5

If you dont want to answer please say pass

Third round is rapid fire round for answering and asking


all questions 5 minutes is allotted to each team.

Just carry a blank paper and a pen only with you and
no other thing with you.

AFTER THE ROUND.


Time may be taken for calculation of the Marks scored by each team.
Please cooperate during the quiz with the organizer of to make this event
successful.

ALL THE BEST

INTRODUCTION TO LABOUR LAWS


Historical Background of Labour Policy & Labour Laws
Indias Labour Policy is mainly based on Labour Laws. The labour laws of
independent India derive their origin, inspiration and strength partly from
the views expressed by important nationalist leaders during the days of
national freedom struggle, partly from the debates of the Constituent
Assembly and partly from the provisions of the Constitution and the
International Conventions and recommendations. The relevance of the
dignity of human labour and the need for protecting and safeguarding the
interest of labour as human beings.54) of the Constitution of India keeping
in line with Fundamental Rights and Directive Principles of State Policy.
The Labour Laws were also influenced by important human rights and the
conventions and standards that have emerged from the United Nations.
These include right to work of ones choice, right against discrimination,
prohibition of child labour, just and humane conditions of work, social
security, protection of wages, redress of grievances, right to organize and
form trade unions, collective bargaining and participation in management.
Our labour laws have also been significantly influenced by the
deliberations of the various Sessions of the Indian Labour Conference and
the International Labour Conference. Labour legislations have also been
shaped and influenced by the recommendations of the various National
Committees and Commissions such as First National Commission on
Labour (1969) under the Chairmanship of Justice Gajendragadkar,
National Commission on Rural Labour (1991), Second National
Commission on Labour (2002) under the Chairmanship of Shri Ravindra

Varma etc. and judicial pronouncements on labour related matters


specifically pertaining to minimum wages, bonded labour, child labour,
contract labour etc.
3. Constitutional Framework
3.1. Under the Constitution of India, Labour is a subject in the concurrent list
where both the Central and State Governments are competent to enact
legislations. As a result, a large number of labour laws have been enacted
catering to different aspects of labour namely, occupational health, safety,
employment, training of apprentices, fixation, review and revision of
minimum wages, mode of payment of wages, payment of compensation to
workmen who suffer injuries as a result of accidents or causing death or
disablement, bonded labour, contract labour, women labour and child
labour, resolution and adjudication of industrial disputes, provision of
social security such as provident fund, employees state insurance, gratuity,
provision for payment of bonus, regulating the working conditions of
certain specific categories of workmen such as plantation labour, beedi
workers etc. This is how we have a large number of labour legislations,
which can be categorized as follows: formulated Rules to

Sl. No.

Name of the Act

(a) Labour laws enacted by the Central Government, where the


Central
Government has the sole responsibility for enforcement
The Employees State Insurance Act, 1948

The

Employees Provident
Provisions Act,

Fund

and

Miscellaneous

2
The Dock Workers (Safety, Health and Welfare) Act, 1986

The Mines Act, 1952


4
The Iron Ore Mines, Manganese Ore Mines and Chrome Ore
Mines
5
The Iron Ore Mines, Manganese Ore Mines and Chrome Ore
6
Mine Labour Welfare (Cess) Act, 1976
7
The Mica Mines Labour Welfare Fund Act, 1946
8
The Beedi Workers Welfare Cess Act, 1976
The Limestone and Dolomite Mines Labour Welfare Fund
9
Act, 1972
10
The Cine Workers Welfare (Cess) Act, 1981
11
The Beedi Workers Welfare Fund Act, 1976
12
The Cine Workers Welfare Fund Act, 1981
(b )Labour laws enacted by Central Government and enforced both
by
Central and State Governments
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27

The Child Labour (Prohibition and Regulation) Act, 1986.


The Building and Other Constructions Workers (Regulation
of
Employment and Conditions of Service) Act, 1996.
The Contract Labour (Regulation and Abolition) Act, 1970.
The Equal Remuneration Act, 1976.
The Industrial Disputes Act, 1947.
The Industrial Employment (Standing Orders) Act, 1946.
The Inter-State Migrant Workmen (Regulation of
Employment and Conditions of Service) Act, 1979.
The Labour Laws (Exemption from Furnishing Returns and
Maintaining Registers by Certain Establishments) Act, 1988
The Maternity Benefit Act, 1961
The Minimum Wages Act, 1948
The Payment of Bonus Act, 1965
The Payment of Gratuity Act, 1972
The Payment of Wages Act, 1936
The Cine Workers and Cinema Theatre Workers (Regulation
of Employment) Act, 1981
The Building and Other Construction Workers Cess Act, 1996

3.2. Besides, both Central and State Governments have formulated Rules to
facilitate implementation of these laws.
3.3. The Ministry of Labour & Employment is mandated to create a work
environment conducive to achieving a high rate of economic growth with
due regard to protecting and safeguarding the interests of the working class
in general and those of the vulnerable sections of the society in particular.
The Ministry has been performing its assigned duties through the above
stated legislations with the help and cooperation of State Governments.
3.4. It needs to be stated that in a dynamic context, laws need to be reviewed
from time to time. Hence, review / updation of labour laws is a continuous
process in order to bring them in tune with the emerging needs of the
economy such as attaining higher levels of productivity &
competitiveness, increasing employment opportunities, attaining more
investment both domestic and foreign etc.
4. Important Developments during the Tenth Plan
(a) The Second National Commission on Labour
4.1. The First National Commission on Labour was constituted on 24.12.1966
which submitted its report in August, 1969 after detailed examination of
all aspects of labour problems, both in the organised and unorganised
sector. The need for setting up of the Second National Commission on
Labour was felt due to vast changes occurring in the economy during the
last three decades especially in the nineties due to globalization,
liberalization and privatization.
4.2. The Second National Commission on Labour was given two point terms of
reference: i) to suggest rationalization of existing laws relating to labour in
the organised sector; and ii) to suggest an umbrella legislation for ensuring
a minimum level of protection to the workers in the unorganised sectors;
4.3. The Commission submitted its Report to the Government on 29.06.2002.
The Commission has comprehensively covered various aspects of labour
and given recommendations relating to review of laws, social security,
women & child labour, wages, skill development, labour administration,
unorganized sector etc.
4.4. The recommendations of Second National Commission on Labour interalia, included (i) introduction of umbrella legislation for workers in the
unorganized sector and agricultural labour, (ii) emphasis on up-gradation
and development of skill of workforce by training/retraining of workers,
(iii) encouragement of small scale industries, agri-business and rural sector
for higher employment generation, (iv) bringing attitudinal change and
change in the mindset and work culture where the employer and the
worker work as partners with emphasis on participative management, (v)
consolidation of social security legislations and establishment of social
security system, (vi) abolition of child labour , etc.

4.5. The Ministry had held consultations and interactions with the workers
representatives, employers organizations, experts, professionals etc. The
recommendations of the Commission were discussed in the 38th Session
of Indian
Labour Conference held on 28-29 September 2002, a National Seminar on
Unorganized Sector Workers held on 7-8 November 2002, Tripartite
Committee meeting held on 18-19 February 2003, and Consultative
Committee Meetings Ministry of Labour held on 07.02.2003 and
30.4.2003. The recommendations had again been discussed in the 39th
Session of Indian Labour Conference held on 16-18 October, 2003. While
carrying out the amendments in labour laws, the recommendations of
Second National Commission on Labour are also taken into consideration.
(b) Announcements by the Finance Minister
4.6. The then Finance Minister, in his Budget Speech, 2001, announced
amendments to the Industrial Disputes Act, 1947 and the Contract Labour
(Regulation and Abolition) Act, 1970 , as reproduced below:
(i) Amendment to the provision of Chapter V-B of the Industrial Disputes Act
prior approval of appropriate Government Authority for effecting lay-off,
retrenchment and closure after following prescribed procedures to now
apply to industrial establishments employing not less than 1000 workers
(instead of 100 workers at present) and separation compensation to be
increased from 15 days to 45 days for every completed year of service.
Appropriate legislation to amend the Act to be introduced by the Minister
for Labour within this Session.
(ii) Section 10 of the Contract Labour Act to be amended to facilitate
outsourcing of activities without any restrictions as well as to offer
contract appointments. It would not differentiate between core and noncore activities and provide protection to labour engaged in outsourced
activities in terms of their health, safety, welfare, social security, etc. It
would provide for larger compensation based on last drawn wage as
retrenchment compensation for every year of service. Appropriate
legislation to amend the Act to be introduced by Ministry of Labour within
this Session.
4.7. Accordingly, in respect of the Industrial Disputes Act, 1947 comprehensive
amendment proposals including inter-alia, setting up of Grievance
Redressal Authority, relaxation of qualification of Presiding Officers of
Central Government Industrial Tribunal-cum-Labour Courts (CGITs),
direct reference of disputes connected with termination / dismissal /
retrenchment / discharge to Industrial Tribunals etc. were prepared. In its
meeting held on 22.02.2002, the Cabinet approved the proposals while
directing that process of building a consensus to facilitate the introduction
and passage of the Bill in the Parliament would simultaneously be
initiated. Pursuant to the direction, wide-ranging consultations with all

concerned were held to build up a consensus, including discussions in the


Indian Labour Conference, Tripartite Industrial Committee etc. But it has
so far proved elusive.
4.8. Section 10 of the Contract Labour (Regulation and Abolition) Act, 1970
provides for prohibition of contract labour under certain circumstances,
such as, perennial nature of the process, operation or work etc. From time
to time, workers and their representatives have been demanding
prohibition of employment of contract labour in various categories of jobs
in various establishments where as there has been increasing resistance
from the employers in the matter. In its judgment of December, 1996 in the
Air India case the Supreme Court, inter-alia, ruled that where employment
of contract labour has been prohibited in a process, operation or other
work in an establishment, contract labour engaged in such activities would
automatically become the employees of the principal employer.
Subsequently, a five judge Constitution Bench of the Supreme Court in the
matter of SAIL vs. National Union of Waterfront Workers has quashed the
Air India Judgment in August, 2001 prospectively diluting its impact, but
the situation has not undergone much change.
The workers have continued to demand for abolition of contract labour in
the hope that they may force the employer to absorb them on a regular
basis as they are entitled to get preference if the employer intends to take
regular workmen in the prohibited job.
4.9. In the wake of economic liberalization, however, the previous Government
had constituted a Group of Ministers (GoM) to consider the proposals for
amending the Act. The GOM had several meetings between the years 2000
and 2003. One of the proposed amendments under consideration was to
exempt certain activities from the application of Section 10 of the existing
Act. The GOM identified the following ten (10) activities, which are in the
nature of supportive services of an establishment for exemption:(1) Sweeping, cleaning, dusting and gardening;
(2) Collection and disposal of garbage and waste;
(3) Security, watch and ward ;
(4) Maintenance and repair of plant, machinery and equipments;
(5) House keeping, laundry, canteen and courier;
(6) Loading and unloading
(7) Information technology;
(8) Support services in respect of an establishment relating to hospital,
educational and training institution, guest house, club and transport;
(9) Export oriented units established in Special Economic Zones and Units
exporting more than seventy five percent or more of their production;
and
(10) Construction and maintenance of buildings, roads and bridges.

4.10. However, there was no headway due to change in Government and


subsequently absence of a consensus. Only the State Government of
Andhra Pradesh has made amendments by defining core and non-core
activity, prohibiting contract labour in all core activities except those
normally done through contractors, part- time work or in case of sudden
increase of work in a core activities. A designated authority enquires
disputes as to whether an activity is core or non-core.
5. National Common Minimum Programme (NCMP)
5.1. The UPA Government has adopted a National Common Minimum
Programme (NCMP). Some of the important points / issues which have a
bearing on labour laws are as follows:
(i) Comprehensive protective legislation will be enacted for all agricultural
workers.
(ii) The UPA Government is firmly committed to ensure the welfare and well
being of all workers, particularly those in the unorganized sector who
constitute 93% of our work force. Social Security, health insurance and
other schemes for such workers like weavers, handloom workers,
fishermen and fisherwomen, toddy tappers, leather workers, plantation
labour beedi workers etc. will be expanded.
(iii) The UPA rejects the idea of automatic hire and fire. It recognizes that some
changes in labour laws may be required but such changes must fully
protect the interests of workers and families and must take place after full
consultation with trade unions. The UPA will pursue a dialogue with
industry and trade unions on this issue before coming up with specific
proposals. However, labour laws other than the Industrial Disputes Act that
creates an Inspector Raj will be reexamined and procedures harmonized
and streamlined. The UPA government firmly believes that labourmanagement relations in our country must be marked by consultations,
cooperation and consensus, not confrontation. Tripartite consultations with
trade unions and industry on all proposals concerning them will be actively
pursued. Rights and benefits earned by workers, including the right to
strike according to law, will not be taken away or curtailed. The position
with regard to the above is as under:
(i) Comprehensive Legislation for Agricultural Workers:
5.2
The proposal of legislation of agricultural workers had been under
consideration of the Government since 1975. The draft of the Bill was also
prepared in 1997. However, due to lack of consensus amongst State
Governments, the proposal could not be processed further. Presently, the
Government is in the process of enactment of legislation for the workers in
the unorganized sector including the workers in the agriculture sector. In
view of this, the Ministry of Labour is of the view that the proposal could
appropriately be left to the State Governments to act upon. However, the

interests of the agricultural workers will be addressed in the proposed


Unorganized Sector Workers Bill, 2005.
(ii) Unorganized Sector Workers Bill:
5.3. To ensure the welfare of workers in the unorganised sector which, inter-alia,
include weavers, handloom workers, fishermen and fisherwomen, toddy
tappers, leather workers, plantation labour, beedi workers, the Government
propose to enact a comprehensive legislation for these workers. The
Ministry of Labour & Employment drafted the 'Unorganised Sector
Workers Bill, 2004 which, inter-alia, envisages provision for safety, social
security, health and welfare matters. The draft Bill has been sent to all
stakeholders including National Advisory Council (NAC) and National
Commission for Enterprises in the Unorganised Sector. The Ministry has
received a draft Bill namely, the Unorganised Sector Workers Social
Security Bill, 2005 from NAC. The draft Bill is being examined in the
Ministry in consultation with the State Governments, central trade unions,
employers organizations and NGOs and copies of the draft Bill have been
sent to them. The NCEUS has now revised the Bills and have given two
bills i.e. (i) Unorganized Sector Workers (Conditions of Work &
Livelihood Promotion) Bill, 2005 and (ii) the Unorganized Sector Workers
Social Security Bill, 2005 in place of earlier three Bills.
5.4. The draft Bills prepared by the Ministry of Labour and Employment,
National Advisory Council (NAC) and National Commission for
Enterprises in the Unorganized Sector (NCEUS) are still under
examination. The proposal was discussed in the Meeting presided over by
Honorable Prime Minister on 18th November 2005 and Members / Experts
of NAC / National Commission for Enterprises in the Unorganized Sector
on 22nd November 2005 .
5.5. As a follow up of the Minutes of the Meeting presided over by Honble
Prime Minister on 18th November 2005, a meeting was held with LIC
under the Chairmanship of Member, LEM, Planning Commission on 20th
January, 2006 in Mumbai in which it was suggested that LIC should work
out the projections of funds required for the scheme providing for (i) life
cover of Rs.5000/ -(ii) accidental cover of Rs.40,000/- (iii) health
insurance @Rs.6000/- (iv) maternity benefit of Rs.1000/-for two births
and (v) minimum pension of Rs.200 or 300 or 400 or 500 per month
guaranteed for life.
5.6. Some models for financing the scheme were also suggested. The LIC has
given some projections for requirement of funds required to implement the
scheme. This was also discussed in the Meeting taken by Honorable
Minister of State for Labour & Employment with the Chairman and Senior
Officers of LIC on 16th May, 2006. The Consultative Committee attached
to Ministry of Labour and Employment also discussed the proposal on
17th May 2006 when LIC explained requirement of funds and informed

that a Strategic Business Group(SBG) has been constituted to examine


various options as to whether (i) a separate corporation would be required
(ii) a subsidy of LIC ; or (iii) a joint venture of LIC and non-life insurance
companies would be required to undertake such a gigantic task of
implementation of all components of the scheme. The report of SBG is
awaited. The matter is being vigorously followed up with LIC.
5.7 In the meanwhile, the National Commission for Enterprises in the
Unorganised Sector (NCEUS) has submitted its report to the Government
on the Social Security for the Unorganized Sector Workers in May, 2006.
Amongst its various recommendations the Commission has recommended
old age pension of Rs.200/ per month to all workers aged 60 years and
above and belonging to BPL families. Similarly, the Commission has also
recommended provision of Provident Fund to all other workers (Above
Poverty Line) with a minimum guaranteed return of ten per cent to the
workers, under the proposed provident fund scheme. The Social Security
Scheme, as recommended by the Commission includes health insurance,
maternity benefit, personal and accident insurance cover.
5.8. A meeting of CoS in this regard has been held on 25.07.2006. As directed
by the CoS, the meeting of the Group constituted to examine various drafts
and proposals was held under the Chairmanship of Secretary (L&E) on
24.08.2006.
(iii) Tripartism
5.9. The Ministry of Labour & Employment has always been striving to
promote harmonious industrial relations in the country. The Government,
being committed to the ethos and culture of tripartism, took measures to
revitalize it. The Ministry continues to have consultations with its social
partners to obtain a consensus for enacting new laws or for bringing about
changes in the existing laws.
(iv) Inspector Raj
5.10. The National Common Minimum Programme (NCMP) states that labour
laws other than the Industrial Disputes Act, 1947 that create an Inspector
Raj will be reexamined and procedures harmonized and streamlined.
5.11. In pursuance of the deliberations in the meeting of Prime Ministers
Council on Trade & Industry on 4th December 2004, a Committee was set
up under the Chairmanship of Shri Anwarul Hoda, Member (Industry),
Planning Commission to look into the requirements of multiple inspections
and recommend on steps to be taken to streamline and simplify them. The
Committee submitted its recommendations to the Prime Ministers Office
on 22nd December 2005, the major ones being as follows:
(i) A system of third party inspection should be established to give to enterprises
an option to get their regulatory compliance certified by reliable agencies
{e.g. ISO 140-01 certification by the Quality Council of India,
Occupational Health and Safety Standard (OHSAS 18001) by the British

Standard Institute UK, Social Accountability Standard (SA 8000) by


Social Accountability International, USA and corresponding standard
developed by Bureau of Indian Standards (BIS)}.Once such certification
has been obtained the unit should be exempted from routine inspection.
Special Inspection would be authorized only on receipt of credible
complaints;
(ii) Mechanisms of joint inspections and joint annual calendar of inspections to
be developed;
(iii) Introduction of a scheme of self certification.
5.12 The Report also favoured enactment of the Small Enterprises (Employment
Relations) Act for the establishments having less than 19 workers with a
view to reduce the pressure on them and supported proposed amendments
in the Labour Laws (Exemption from Furnishing Returns and Maintaining
Registers by Certain Establishments) Act, 1988.
5.13. The action taken is as follows:
(i)
Labour being a concurrent subject, the copy of the Report has been
forwarded to all State Governments and Union Territories and circulated
among all Divisional Heads and legislative sections inside Ministry of
Labour and Employment for taking appropriate action;
(ii) Some States like Gujarat, Punjab etc. have already introduced the system of
self certification
(iii) The Bill to amend the Labour Laws (Exemption from Furnishing Returns
and Maintaining Registers by Certain Establishments) Act, 1988, which
intends to provide relief to a large number of enterprises, especially small
and medium ones by allowing them to maintain only two registers, that too
on computer and send only one return, also by e-mail, has been introduced
in the Rajya Sabha on 22.08.2005.
(iv)
In the Central Sphere, the enforcing agencies, viz. Chief Labour
Commissioner (Central), Employees Provident Fund Organisation,
Employees State Insurance Corporation have taken steps to reduce
arbitrariness in the system of inspection and make it mostly complaint
driven.
(v) The Ministry has circulated a Discussion Paper on Making Labour
Markets Flexible: Suggestions for Consideration among all stakeholders
for their consideration, which, inter-alia, provides for streamlining the
inspection regime and use of Information & Communication Technology.
(vi) So far as enactment of Small Enterprises (Employment Relations), Act in
pursuance of Second National Commission on Labour recommendations is
concerned, a view was taken in the Ministry of Labour and Employment
that it is not necessary in view of the proposed amendments as indicated at
(iii) above and the Ministry of Small Scale Industries itself enacting a
separate legislation for such industries. Moreover, as this legislation would
be impinging upon the Industrial Disputes Act, 1947, it appears doubtful

whether its enactment would at all be possible with National Common


Minimum Programme disallowing any tampering with the Industrial
Disputes Act, 1947
5.14. It may be noted that trade union leaders in various for a have criticized
any attempt to dismantle inspector raj , as according to them , it would
compromise the interests of vulnerable workers. So any consensus on this
score is bound to remain elusive.
6. Labour Laws: Amendments under Consideration / Undertaken
6.1. The Present Status of amendments in certain Acts is as under:
(i) The Factories (Amendment) Bill 2005 has been introduced in the Lok Sabha
on 16th August 2005. The Bill proposes to amend the Section 66 of the
Factories Act 1948, so as to provide flexibility in the matter of
employment of women during night shift with adequate safeguards for
their safety, dignity, honour and transportation from the factory premises to
their nearest point of their residence. (ii) The Payment of Wages Act, 1936,
ensures that wages payable to employed persons are timely disbursed and
no unauthorized deductions are made from their wages. Presently, it covers
only those employees whose wage ceiling is up to Rs.1600/- per month.
The Payment of Wages (Amendment) Bill, 2005 has received the assent of
the President on 5th September, 2005. The Payments of Wages
(Amendment) Act, 2005 (41 of 2005) has been notified by the Ministry of
Law and Justice on 6th September, 2005. Subsequently, the Ministry of
Labour and Employment has issued notification No. SO 1577(E) dated the
8th November 2005 to enforce the amended provisions w.e.f 9th November
2005 . With the amendments, the wage ceiling for applicability of the Act,
gets increased from Rs.1600/- to Rs.6500/- per month while empowering
the Central Government to further increase the ceiling by way of
Notification. It also enhances the penal provisions.
(iii) The Cabinet had approved a proposal to amend the Labour Laws
(Exemption from Furnishing Returns and Maintaining Registers by
Certain Establishments) Act, 1988 on 11.05.2005, which intends to
introduce simplified forms of registers to be maintained by the employees
under certain labour laws. The amendments proposed include applicability
of the Act to the establishments employing up to 500 persons instead of 19
persons, as at present. Consequently, establishments, which employ not
more than 500 persons, shall not be required to file multiple returns and
maintain separate registers under various labour laws. This will result in
reducing the number of registers from 53 to 2 and number of returns from
11 to 1 under various labour laws, allowing maintenance of registers on
computers and transmitting the annual reports or other reports by e-mail,
enhancing the applicability of these provisions from 16 Scheduled Acts
instead of 9, at present and 20 prescribing uniform penalty for obstruction

and non-maintenance of records under the Scheduled Acts. The Bill was
introduced in Rajya Sabha on 22.08.2005. Subsequently it was referred to
Parliamentary Standing committee on Labour for its examination. As
directed by the Committee , two tripartite meetings were held with the
representatives of Employers and Employees Group on 23rd January,
2006 and 22nd June, 2006 respectively to arrive at consensus on the Bill.
However, no consensus was reached in these Meetings and further
direction of the committee is awaited.
(iv) Amendment of the Apprentices Act, 1961 has been introduced in the Rajya
on 19th May, 2006 to provide (i) reservation for Other Backward Classes,
(ii) Related instructions to be imparted at the cost of employer and (iii)
flexibility in respect of ratios prescribed for Apprenticeship Scheme. The
Bill has been referred to Parliamentary Standing Committee on Labour for
examination. The Parliamentary Standing Committee on Labour examined
the Bill on 3rd July,2006 and decided that after receiving the
recommendations of Shri M. Veerappa Moily Committee in case of
reservation for OBC, the Bill be reviewed again.
6.2. Further amendments to certain other labour laws like the Payment of Bonus
Act, 1965 by increasing the eligibility and calculation ceilings from
Rs.3500/- to Rs.7500/- per month and from Rs.2500/- to Rs.3500/- per
month respectively and the Minimum Wages Act, 1948 are at various
stages of consideration.
7. Attaining Flexibility in Labour Laws
7.1. In line with the NCMP, and with a focus to spearhead consultation process
amongst the stake holders for carrying out labour reforms, The Honble
Labour & Employment Minister held a meeting with the representatives of
industry, economists and academicians on 29.3.2005, wherein following
broad points emerged:(i) In order to compete in this global market, the management would require
operational flexibility which includes power to right-size the work force;
(ii) The industry is prepared to consider paying higher compensation to the
retrenched workers; and
(iii) There is need for having adequately trained manpower. The training
facilities need to be upgraded.
7.2. Similarly, on the same subject Honble Minister for Labour & Employment
held meeting with the representatives of Central Trade Unions on
31.3.2005 wherein following broad points emerged:(i) While considering labour reforms, the spirit of the NCMP, the mandate of the
Ministry of Labour and Employment and the interest of the workers should
not be lost sight of / compromised.
(ii) Any proposal for labour reforms should be conceptualized only after the
trade unions are duly consulted.

7.3. Further, on Making Labour Markets Flexible: Suggestions for


Consideration, a Discussion Paper had been circulated among various
stake holders for eliciting their views. The suggestions, inter-alia,
included:
(i) Amendment in the Contract Labour (Regulation and Abolition) Act, 1970 by
placing certain activities in a separate schedule so that provisions of
Section 10 may not apply to them, and by replacing the term emergency
with the term public interest in Section 31 of the Act; and
(ii) Amendment in the Industrial Disputes Act, 1947 by raising the number filter
from 100 to 300 for applicability of chapter VB and raising the
compensation ceiling payable to workers on retrenchment and on closure
of the establishment, from 15 days average pay to 45 days average pay
for every completed year of continuous service or any part thereof in
excess of six months subject to the condition that such retrenchment
compensation shall not be less than 90 days of average wages and by
extending the powers of exemptions in the industrial Disputes Act, 1947
under Section 36 B to include any Government Undertaking.
7.4. The Ministry of Labour and Employment had made a presentation on the
aforesaid Discussion Paper before the Honble Prime Minister on
18.11.2005. The PMO had suggested that the National Commission on
Enterprises in Unorganized Sector (NCEUS), under Prof. Arjun Sengupta
should be requested to prepare the paper by undertaking the review of the
Indian labour laws, consistent with labour rights, in order to improve
productivity, ensure greater competitiveness and generate greater
employment in various sectors, like textiles, IT and SEZs, which would
subsequently be considered by the CoS and GoM. Accordingly the
NCEUS was requested to take immediate action in this regard. The paper
from the Commission is awaited.
8. Initiatives Proposed by State Governments to Rationalize Labour Laws
8.1. The State Governments of Andhra Pradesh, Gujarat, Karnataka, Madhya
Pradesh and Maharashtra have proposed to seek relaxation in some
provisions of the Central Laws through State Governments so as to
facilitate setting up of Special Economic Zones and Special Enclaves in
their respective States. These proposals broadly relate to regulating the
working hours, empowering the Development Commissioner to fix for
minimum wages, making provisions for allowing the women workers to
work in night shift etc.
8.2. The views of the Central Government on these bills are generally based on
the following principles:
(a) The provisions framed for ensuring safety and health aspects of the workers
need not be relaxed;
(b) The provisions of the Central Acts , which are mostly implemented by the
Central machinery, need not be relaxed by the State Governments;

(c) the provisions in the State Bill should not be in contravention of the
provisions in the Central Bill, presently under consideration , on the same
subject , such as provisions for employment of women in night shift under
the Factories Act, 1948;
(d) the principles enshrined in the National Common Minimum Programme
with regard to hire and fire and the amendment of labour laws through
consensus should be scrupulously observed; and (e) the powers and
functions of the State Government, where there is no provision to further
delegate such powers and functions, should not be allowed to be delegated
further.
9. Approach Paper to the Eleventh Five Year Plan: 9.1. The Approach Paper
has suggested that amendments to the Chapter V B of the Industrial
Disputes Act, 1947 and the Contract Labour (Regulation and Abolition)
Act, 1970 be carried out by arriving at a consensus, the position relating to
which has been indicated above
10. Written Comments
10.1. During the meeting of the Working Group, the participants were requested
to furnish their observations in writing, if they so desire. Accordingly,
comments have been received from Hind Mazdoor Sabha (HMS) ,
Employees State Insurance Corporation (ESIC), State Government of
Uttar Pradesh, Government of NCT of Delhi and Team lease Services.
10.2. Briefly stated, HMS feels that job creation is an important issue at present.
But job creation shall be intended for full employment as well as decent
employment. The principles given in the preamble, fundamental rights and
the directive principles of our constitution and guidelines given in the ILO
Conventions cannot be ignored. The entire intention of labour legislation is
to protect labour from exploitation, as they are the weaker section. Trade
unions are not bargaining for status quo but are requesting for protection of
the existing rights and from further exploitation.
10.3 The ESIC has stated that annual phased programme has been drawn up by
the Corporation in consultation with the state Governments for
implementation of ESI Scheme in new areas/centers. The Corporation has
since approved extension of ESI Schemes to educational and private
medical institutions and some State Governments have issued the final
notification. Ministry of Labour & Employment has issued a notification
on 20.07.2006 inviting objections and suggestions on the proposal to
enhance the existing wage ceiling from Rs.7,500/- per month to
Rs.10,000/- per month.
10.4. In their comments, Labour Commissioner, Government of NCT of Delhi
has mentioned that there is need for reforming the trade union movement
by eliminating vested interest. The problem of inspector raj is perhaps
over-exaggerated as the paucity of inspectorate staff has made inspection
almost complaint driven. It can be best tackled by making the laws more

rational, pragmatic and contemporary, providing exemption clauses in


different laws which can be invoked judiciously to provide relief, and
incorporating transparency by resorting to self-certification and placing
employee-related information obtained through this method in the website.
The system of giving Failure of Conciliation (FOC) Report under the
Industrial Disputes Act, 1947 should be dispensed with as the Government
has to take decisions in the national interest, even though no consensus is
possible.
10.5.The Government of Uttar Pradesh has offered a number of suggestions.
The Industrial Disputes Act may be amended to increase the number filter
from 100 to 300 for seeking permission for retrenchment, closure and layoff. Simultaneously, the retrenchment compensation should be increased
from 15 to 45 days wages for each year of service rendered along with
certain additional benefits. These relate to three months notice or payment
in lieu thereof, all terminal benefits as stipulated under various laws,
making the retrenchment effective only after the terminal dues are paid,
provided further that if there are sufficient reasons, the appropriate
Government may declare the lay-off, closure or retrenchment illegal.
Besides, the Industrial Disputes Act, 1947 may be amended to incorporate
a time limit of three years for filing claims or taking disputes under
conciliation or adjudication. For promoting healthy industrial relations and
increasing productivity among workers, taking into account the
recommendations of the Bipartite Committee on new Industrial Relations
Committee (Ramanujam Committee) and the Second National
Commission on Labour, Section 9 (c) of the Industrial Disputes Act, 1947
relating to Grievance Redressal Authority may be amended as follows:- (a)
Every establishment employing 50 or more workmen must have one or
more Grievance Redressal Committee.
(b) The said Committee shall consist of equal number of representatives from
the management and the workmen. The size of the Committee should not
be less than 2 and more than 6.
(c) Setting up of Grievance Redressal Committee will in no way affect the right
of the workmen to raise disputes under the ID Act.
(d) The Grievance Redressal Committee shall finalize its proceedings within 45
days.
10.6. The State Government also feels that in order to strike a balance between
protecting the interest of labour and the need for providing operational
flexibility to enterprises, it may be necessary to amend certain labour laws
(like license of a factory of non-hazardous nature may be renewed for five
calendar years at a time, whereas the factories of hazardous nature may be
renewed every calendar year under the Factories Act, 1948), exemption
under the existing provisions of labour laws (like allowing women to work
during night time), simplification of procedure (like amendments proposed

to the Labour Laws (Exemption from Furnishing Returns and Maintaining


Registers by Certain Establishments) Act, 1988), and providing special
measures for Special Economic Zones, Export houses etc. which foster
creation of large employment opportunities (like self-certification,
declaring them as public utility services, giving equivalent power of the
Labour Commissioner to Development Commissioner of SEZ while
providing latter with support services for effective administration and
enforcement of labour laws). The State Government, however, does not
support third party inspection for the compliance of health and safety
provisions in SEZs. Besides, there is need for providing effective social
security cover to workers engaged in smaller establishments and to
contract workers.
10.7. The Team lease Services has advocated that the provident fund needs to be
paid on basic pay plus D.A, centralized compliance for Employees State
Insurance Corporation and issuance of identity cards to members by
employers may be allowed, there should be State and nation-wide
registration of contractors, default compliance with Employees Provident
Fund Organisation should be simplified and minimum wages should
taking to account on all types of compensation being paid to workers.
.11. Recommendations
11.1 Taking into account the deliberations in the Working Group and the
comments received, the recommendations of the Working Group are stated
below:
(i) As mandated in the National Common Minimum Programme, the
amendments in the labour laws need to be based on a consensus, taking
into account the interests of stakeholders. This applies to any suggested
amendment in respect of the Industrial Disputes Act, 1947 and the
Contract Labour (Regulation and Abolition) Act, 1970 as well.
(ii) The Report of the National Commission for Enterprises in the Unorganized
Sector, which is preparing a paper by undertaking the review of Indian
Labour Laws, consistent with labour rights, in order to improve
productivity, ensure greater competitiveness and generate employment in
various sectors like textiles, IT and SEZs, as directed by the Prime
Ministers Office, may be examined on receipt.
(iii) In case any sectorspecific relaxations in labour laws is sought, the
administrative Ministries/ Departments should first formulate them,
discuss with all stake holders including Central Trade Unions and refer
them for the consideration of Ministry of Labour & Employment only after
a consensus is reached.
(iv) The unorganised sector workers need social security cover, preferably
through legislation. Especially the interests of the agricultural workers
need to be protected.

(v) Since inspections are becoming complaint driven, the problems of inspector
raj may not be as formidable as it is made out to be. The system of
inspections cannot be eliminated, as it would compromise with the
interests of workers, especially those who are vulnerable. Hence it would
be more pragmatic to promote transparency by resorting to selfcertification system and placing employee-related information obtained
through this method in the website.
(vi) The recommendation of the Second National Commission on Labour, ILO
Conventions, tripartite fora like Indian Labour Conference & Industrial
Committees and bipartite bodies like Ramanujam Committee should be taken
into account whole formulating amendment proposals of various labour
laws.
(vii) Proposals pending consideration for a long time like the Workers
Participation in Management Bill, 1990 amendment to the Payment of
Bonus Act, 1965 and the Minimum Wages Act, 1948 etc. should be
expedited.
(viii) The possibility of expanding the scope of the Employees State Insurance
Act, 1948 and the Employees Provident Fund and Miscellaneous
Provisions Act, 1952 to cover even certain segments of unorganised sector
workers may be considered.
(ix) Judiciary is overburdened and valuable time of inspectors is wasted in
visiting courts. The possibility of giving power of Executive Magistrate to
Officers of the Labour Department to dispose of cases relating to minor
offences may be explored.
(x) More emphasis is to be placed on building up of an effective labour ecosystem. While labour laws should be respected, what cannot be enforced
should not be legislated. It makes effective implementation of labour laws
feasible whilemaking the environment conducive to job creation and
friendly to small scale and unorganised sector enterprises.
*********

APPRENTICES ACT, 1961


CHAPTER I: PRELIMINARY
1. Short title, extent, commencement and application
(1) This Act may be called the Apprentices Act, 1961.
(2) It extends to the whole of India 3[***].
(3) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint; and different dates may be
appointed for different States.
(4) The provisions of this Act shall not apply to(a) any area or to any industry in any area unless the Central Government by
notification in the Official Gazette specifies that area or industry as an area
or industry to which the said provisions shall apply with effect from such
date as may be mentioned in the notification:
(b)

[any such special apprenticeship scheme for imparting training to


apprentices as may be notified by the Central Government in the Official
Gazette].

2. Definitions
In this Act, unless the context otherwise requires,6

[(a) "All India Council" means the All India Council of Technical Education
established by the resolution of the Government of India in the former
Ministry of Education No. F. 16-10/44-E-III, dt. 30-11-1945;]
[(aa)] "apprentice" means a person who is undergoing apprenticeship training
7
[***] in pursuance of a contract of apprenticeship;
[(aaa) "apprenticeship training" means a course of training in any industry or
establishment undergone in pursuance of a contract of apprenticeship and
under prescribed terms and conditions which may be different for different
categories of apprentices;]

(b) "Apprenticeship Adviser" means the Central Apprenticeship Adviser


appointed under sub-section (1) of section 26 or the State Apprenticeship
Adviser appointed under sub-section (2) of that section;

(c) "Apprenticeship Council" means the Central Apprenticeship Council or the


State Apprenticeship Council established under sub-section (1) of section
24;
(d) "Appropriate government" means,(1) In relation to(a) The Central Apprenticeship Council, or
9

[(aa) the Regional Boards, or


(aaa) the practical training of graduate or technician apprentices or of
technician (vocational) apprentices, or];

(b) Any establishment of any railway, major port, mine or oilfield, or


(c) Any establishment owned, controlled or managed by(I) the Central Government or a department of the Central Government;
(ii) a company in which not less than fifty-one per cent of the share capital is
held by the Central Government or partly by that government and partly
by one or more State Governments;
(iii) a corporation (including a co-operative society) established by or under a
Central
Act which is owned, controlled or managed by the Central
Government,
The Central Government;
(2) In relation to(a) A State Apprenticeship Council, or
(b) Any establishment other than an establishment specified in subclause
(1) Of this clause,
The State Government;
8

[(dd) "Board or State Council of Technical Education" means the Board or


State Council of Technical Education established by the State
Government;]

(e) "designated trade" 5[means any trade or occupation or any subject field in
engineering or technology] 10[or any vocational course] which the Central
Government, after consultation with the Central Apprenticeship Council,
may, by notification in the Official Gazette, specify as a designated trade
for the purposes of this Act;
According to section 5(j) "graduate or technician apprentice" means an
apprentice who holds, or is undergoing training in order that he may hold a
degree or diploma in engineering or technology or equivalent qualification
granted by any institution recognised by the government and undergoes
apprenticeship training in any such subject field in engineering or
technology as may be prescribed;
"National Council" means the National Council for Training in Vocational
Trades established by the resolution of the Government of India in the
Ministry of Labour (Directorate General of Resettlement and
Employment) No. TR/E.P.-24-56, dt. 21-8-1956 10[and re-named as the
National Council for Vocational Training by the resolution of the
Government of India in the Ministry of Labour (Directorate General of
Employment and Training) No. DGET/12/21/80-TC, dt. 30-9-1981;]
(m) "Prescribed" means prescribed by the rules made under this Act;
8

[(mm) "Regional Board" means any Board of Apprenticeship Training


registered under the Societies Registration Act, 1860 (21 of 1860), at
Bombay, Calcutta, Madras or Kanpur;]

(o) "State Council" means a State Council for Training in Vocational Trades
established by the State Government;
(p) "State Government" in relation to a Union Territory, means the
Administrator thereof;
10

[(pp) "Technician (vocational) apprentice" means an apprentice who holds or


is undergoing training in order that he may hold a certificate in vocational
course involving two years of study after the completion of the secondary
stage of school education recognised by the All-India Council and
undergoes apprenticeship training in any vocational course as may be
prescribed;]

[(q) "Trade apprentice" means an apprentice who undergoes apprenticeship


training in any such trade or occupation as may be prescribed;]

CHAPTER II: APPRENTICES AND THEIR TRAINING


3. Qualifications for being engaged as an apprentice
A person shall not be qualified for being engaged as an apprentice to
undergo apprenticeship training in any designated trade, unless he(a)
(b)

Is not less than fourteen years of age, and


Satisfies such standards of education and physical fitness as may be
prescribed:

18

[3A. Reservation of training places for the Scheduled Castes and the
Scheduled Tribes in designated trades

(1)

In every designated trade, training places shall be reserved by the


employer for the Scheduled Castes and the Scheduled Tribes 10[and where
there is more than one designated trade in an establishment, such training
places shall be reserved also on the basis of the total number of apprentices
in all the designated trades in such establishment].

(2) The number of training places to be reserved for the Scheduled Castes and
the Scheduled Tribes under sub-section (1) shall be such as may be
prescribed, having regard to the population of the Scheduled Castes and
the Scheduled Tribes in the State concerned.
5

[4] Contract of apprenticeship

(1)

No person shall be engaged as an apprentice to undergo apprenticeship


training in a designated trade unless such person or, if he is minor, his
guardian has entered into a contract of apprenticeship with the employer.

(2)

The apprenticeship training shall be deemed to have commenced on the


date on which the contract of apprenticeship has been entered into under
sub-section (1).

(3) Every contract of apprenticeship may contain such terms and conditions as
may be agreed to by the parties to the contract:
(4) Every contract of apprenticeship entered into under sub-section (1) shall be
sent by the employer within such period as may be prescribed to the
Apprenticeship Adviser for registration.
(5) The Apprenticeship Adviser shall not register a contract of apprenticeship
unless he is satisfied that the person described as an apprentice in the

contract is qualified under this Act for being engaged as an apprentice to


undergo apprenticeship training in the designated trade specified in the
contract.
(6) Where the Central Government, after consulting the Central Apprenticeship
Council, makes any rule varying the terms and conditions of
apprenticeship training of any category of apprentices undergoing such
training, then, the terms and conditions of every contract of apprenticeship
relating to that category of apprentices and subsisting immediately before
the making of such rule shall be deemed to have been modified
accordingly].
5.

Novation of contracts of apprenticeship


Where an employer with whom a contract of apprenticeship has been
entered into, is for any reason unable to fulfill his obligation under the
contract and with the approval of the Apprenticeship Adviser it is agreed
between the employer, the apprentice or his guardian and any other
employer that the apprentice shall be engaged as an apprentice under the
other employer for the unexpired portion of the period of apprenticeship
training, the agreement, on registration with the Apprenticeship Adviser,
shall be deemed to be the contract of apprenticeship between the
apprentice or his guardian and other employer, and on and from the date of
such registration, the contract of apprenticeship with the first employer
shall terminate and no obligation under that contract shall be enforceable
at the instance of any party to the contract against the other party thereto.

6.

Period of apprenticeship training


The period of apprenticeship training, which shall be specified in the
contract of apprenticeship, shall be as follows:

(a) In the case of 5[trade apprentices] who, having undergone institutional


training in a school or other institution recognised by the National Council,
have passed the trade tests 10[or examinations] conducted by 5[that Council
or by an institution recognised by that Council], the period of
apprenticeship training shall be such as may be determined by that Council
or by an institution recognized by that Council;
8

[(aa) in the case of trade apprentices who, having undergone institutional


training in a school or other institution affiliated to or recognized by a
Board or State Council of Technical Education or any other authority

which the Central Government may, by notification in the Official Gazette


specify in this behalf, have passed the trade tests 10[or examinations]
conducted by that Board or State Council or authority, the period of
apprenticeship training shall be such as may be prescribed;]
(b) In the case of other 5[trade apprentices], the period of apprenticeship training
shall be such as may be prescribed;
8

[(c) in the case of graduate or technician apprentices, 10[technician (vocational)


apprentices] the period of apprenticeship training shall such as may be
prescribed].

7. Termination of apprenticeship contract


(1) The contract of apprenticeship shall terminate on the expiry of the period of
apprenticeship training.
(2) Either party to a contract of apprenticeship may make an application to the
Apprenticeship Adviser for the termination of the contract, and when such
application is made, shall send by post a copy thereof to the other party to
the contract.
(3) After considering the contents of the application and the objections, if any,
filed by the other party, the Apprenticeship Adviser may, by order in
writing, terminate the contract, if he is satisfied that the parties to the
contract or any of them have or has failed to carry out the terms and
conditions of the contract and it is desirable in the interests of the parties
or any of them to terminate the same:
11

[(4) Notwithstanding any thing contained in any other provision of this Act,
where a contract of apprenticeship has been terminated by the
Apprenticeship Adviser before the expiry of the period of apprenticeship
training and a new contract of apprenticeship is being entered into with a
new employer, the Apprenticeship Adviser may, if he is satisfied that the
contract of apprenticeship with the previous employer could not be
completed because of any lapse on the part of the previous employer,
permit the period of apprenticeship training already undergone by the
apprentice with his previous employer to be included in the period of
apprenticeship training to be undertaken with the new employer].

8. Number of apprentices for a designated trade


12

[(1) The Central Government shall, after consulting the Central


Apprenticeship Council, by order notified in the Official Gazette,

determine for each designated trade the ratio of trade apprentices to


workers other than unskilled workers in that trade:
(2)

In determining the ratio under sub-section (1), the Central Government


shall have regard to the facilities available for apprenticeship training
under this Act in the designated trade concerned as well as to the facilities
that may have to be made available by an employer for the training of
graduate or technician apprentices 10[technician (vocational) apprentices],
if any, in pursuance of any notice issued to him under sub-section (3A) by
the Central Apprenticeship Adviser or such other person as is referred to in
that sub-section.

(3) The Apprenticeship Adviser may, by notice in writing, require an employer


to engage such number of trade apprentices within the ratio determined by
the Central Government for any designated trade in his establishment, to
undergo apprenticeship training in that trade and the employer shall
comply with such requisition:
(3A) The Central Apprenticeship Adviser or any other person not below the
rank of an Assistant Apprenticeship Adviser authorized by the Central
Apprenticeship Adviser in writing in this behalf shall, having regard to(I) The number of managerial persons (including technical and supervisory
persons) employed in a designated trade;
(ii) The number of management trainees engaged in the establishment;
(iii) The totality of the training facilities available in a designated trade; and
(IV) Such other factors as he may consider fit in the circumstances of the case
by notice in writing, require an employer to impart training to such number
of graduate or technician apprentices 11[technician (vocational)
apprentices], in such trade in his establishment as may be specified in such
notice and the employer shall comply with such requisition.
(4) Several employers may join together for the purpose of providing practical
training to the apprentices under them by moving them between their
respective establishments.
(5) Where, having regard to the public interest, a number of apprentices in
excess of the ratio determined by the Central Government 8[or in excess of
the number specified in a notice issued under sub-section (3A)] should, in
the opinion of the appropriate government be trained, the appropriate

government may require employers to train the additional number of


apprentices.
(6) Every employer to whom such requisition as aforesaid is made, shall
comply with the requisition if the government concerned makes available
such additional facilities and such financial assistance as are considered
necessary by the Apprenticeship Adviser for the training of the additional
number of apprentices.
(7) Any employer not satisfied with the decision of the Apprenticeship Adviser
under sub-section (6), may make a reference to the Central Apprenticeship
Council and such reference shall be decided by a Committee thereof
appointed by that Council for the purpose and the decision of that
Committee shall be final.
9. Practical and basic training of apprentices
(1) Every employer shall make suitable arrangement in his workshop for
imparting a course of practical training to every apprentice engaged by
him in accordance with the programmed approved by the Apprenticeship
Adviser.
(2) 13[The Central Apprenticeship Adviser or any other person not below the
rank of an Assistant Apprenticeship Adviser authorized by the Central
Apprenticeship Adviser in writing in this behalf] shall be given all
reasonable facilities for access to each such apprentice with a view to test
his work and to ensure that the practical training is being imparted in
accordance with the approved programme:
5

[(3) Such of the trade apprentices as have not undergone institutional training
in a school or other institution recognised by the National Council or any
other institution affiliated to or recognised by the Board or State Council
of Technical Education or any other authority which the Central
Government may, by notification in the Official Gazette, specify in this
behalf, shall, before admission in the workshop for practical training,
undergo a course of basic training.]

(4) Where an employer employs in his establishment five hundred or more


workers, the basic training shall be imparted to 15[the trade apprentices]
either in separate parts of the workshop building or in a separate building
which shall be set up by the employer himself, by the appropriate
government may grant loans to the employer on easy terms and repayable
by easy installments to meet the cost of the land, construction and
equipment for such separate building.

[(4A) Notwithstanding anything contained in sub-section (4), if the number of


apprentices to be trained at any time in any establishment in which five
hundred or more workers are employed, is less than twelve the employer
in relation to such establishment my depute all or any of such apprentices
to any Basic Training Centre or Industrial Training Institute for basic
training in any designated trade, in either case, run by the government.

(4B) Where an employer deputes any apprentice under sub-section (4A), such
employer shall pay to the government the expenses incurred by the
government on such training, at such rate as may be specified by the
Central Government.]
(5)

Where an employer employs in his establishment less than five hundred


workers, the basic training shall be imparted to 15[the trade apprentices] in
training institutes set up by the government.

(6)

In any such training institute, which shall be located within the premises of
the most suitable establishment in the locality or at any other convenient
place 16[the trade apprentices] engaged by two or more employers may be
imparted basic training.

(7)

16

[In the case of an apprentice other than graduate or 10[technician


(vocational) apprentice] the syllabus of], and the equipment to be utilized
for, practical training including basic training shall be such as may be
approved by the Central Government in consultation with the Central
Apprenticeship Council.

[(7A)In the case of graduate or technician apprentices 11[technician


(vocational) apprentices] the program of apprenticeship training and the
facilities required for such training in any subject field in engineering or
technology 11[or vocational course] shall be such as may be approved by
the Central Government in consultation with the Central Apprenticeship
Council.]

(8)(a) Recurring costs (including the cost of stipends) incurred by an employer


in connection with 11[17[* * *] basic training, imparted to trade apprentices
other than those referred to in clauses (a) and (aa)] of section 6 shall be
borne(i) If such employer employs 18[two hundred and fifty] workers or more, by the
employer;
(ii) If such employer employs less than 15[two hundred and fifty] workers, by
the employer and the government in equal shares up to such limit as

maybe laid down by the Central Government and beyond that limit, by the
employer alone; and
(b)

Recurring costs (including the costs of stipends), if any, incurred by an


employer in connection with 19[practical training, including basic training,
imparted to trade apprentices referred to in clauses (a) and (aa)] of section
6 shall, in every case, be borne by the employer;

[(c) recurring costs (excluding the cost of stipends) incurred by an employer in


connection with the practical training imparted to graduate or technician
apprentices technician (vocational) apprentices shall be borne by the
employer and the cost of stipends shall be borne by the Central
Government and the employer in equal shares up to such limit as may be
laid down by the Central Government and beyond that limit, by the
employer alone.]

10. Related instruction of apprentices


(1)

[A trade apprentice] who is under going practical training in an


establishment shall, during the period of practical training, be given a
course of related instruction (which shall be appropriate to the trade)
approved by the Central Government in consultation with the Central
Apprenticeship Council, with a view to giving 5[the trade apprentice] such
theoretical knowledge as he needs in order to become fully qualified as a
skilled craftsman.

(2) Related instruction shall be imparted at the cost of appropriate government


but the employer shall, when so required, afford all facilities for imparting
such instruction.
(3) Any time spent by 5[a trade apprentice] in attending classes on related
instruction shall be treated as part of his paid period of work.
8

[(4) In the case of trade apprentices who, after having undergone a course of
institutional training, have passed the trade tests conducted by the National
Council or have passed the trade tests and examinations conducted by a
Board or State Council of Technical Education or any other authority
which the Central Government may, by notification in the Official Gazette,
specify in this behalf, the related instruction may be given on such reduced
or modified scale as may be prescribed.

(5) Where any person has, during his course in a technical institution, become a
graduate or technician apprentice, 10[technician (vocational) apprentice]
and during his apprenticeship training he has to receive related instruction,

then, the employer shall release such person from practical training to
receive the related instruction in such institution, for such period as may be
specified by the Central Apprenticeship Adviser or by any other person not
below the rank of an Assistant Apprenticeship Adviser authorised by the
Central Apprenticeship Adviser in writing in this behalf.]
11. Obligations of employers
Without prejudice to the other provisions of this Act, every employer shall
have the following obligations in relation to an apprentice, namely(a) To provide the apprentice with the training in his trade in accordance with
the provisions of this Act, and the rules made there under;
(b) if the employer is not himself qualified in the trade, to ensure that a person
20
[who possesses the prescribed qualifications] is placed in charge of the
training of the apprentice; 21[* * *]
11

[(bb) to provide adequate instructional staff, possessing such qualifications as


may be prescribed, for imparting practical and theoretical training and
facilities for trade test of apprentices; and]

(c) To carry out his obligations under the contract of apprenticeship.


12. Obligations of apprentices
22

[(1)] 23[Every trade apprentice] undergoing apprenticeship training shall have


the following obligations, namely,-

(a) To learn his trade conscientiously and diligently and Endeavour to qualify
himself as a skilled craftsman before the expiry of the period of training;
(b) To attend practical and instructional classes regularly;
(c) To carry out all lawful orders of his employer and superiors in the
establishments; and
(d) To carry out his obligations under the contract of apprenticeship.
8

[(2) Every graduate or technical apprentice 10[technician (vocational)


apprentice] under going apprenticeship training shall have the following
obligations, namely,-

(a) To learn his subject field in engineering or technology 10[or vocational


course ] conscientiously and diligently at his place of training;

(b) To attend the practical and instructional classes regularly;


(c) To carry out all lawful orders of his employer and superiors in the
establishment;
(d) To carry out his obligations under the contract of apprenticeship which shall
include the maintenance of such records of his work as may be
prescribed.]
13. Payment to apprentices
(1) The employer shall pay to every apprentice during the period of
apprenticeship training such stipend at a rate not less than the 24[prescribed
minimum rate, or the rate which was being paid by the employer on lst
January, 1970 to the category of apprentices under which such apprentice
falls, whichever is higher] as may be specified in the contract of
apprenticeship and the stipend so specified shall be paid at such intervals
and subject to such conditions as may be prescribed.
5

[(2) An apprentice shall not be paid by his employer on the basis of piece work
nor shall be required to take part in any output bonus or other incentive
scheme.]

15. Hours of work, overtime, leave and holidays


(1) The weekly and daily hours of work of an apprentice while undergoing
practical training in a workshop shall be such as may be prescribed.
(2) No apprentice shall be required or allowed to work overtime except with the
approval of the Apprenticeship Adviser who shall not grant such approval
unless he is satisfied that such overtime is in the interest of the training of
the apprentice or in the public interest.
(3) An apprentice shall be entitled to such leave as may be prescribed and to
such holidays as are observed in the establishment in which he is
undergoing training.
16. Employer's liability for compensation for injury
If personal injury is caused to an apprentice, by accident arising out of and
in the course of his training as an apprentice, his employer shall be liable
to pay compensation which shall be determined and paid, so far as may be,
in accordance with the provisions of the Workmen's Compensation Act,
1923, subject to the modifications specified in the Schedule.

17. Conduct and discipline


In all matters of conduct and discipline, the apprentices shall be governed
by the rules and regulations 5[applicable to employees of the
corresponding category] in the establishment in which the apprentice is
undergoing training.
18. Apprentices are trainees and not workers
Save as otherwise provided in this Act,(a) Every apprentice undergoing apprenticeship training in a designated trade in
an establishment shall be a trainee and not a worker; and
(b) The provisions of any law with respect to labour shall not apply to or in
relation to such apprentice.

19. Records and returns


(1) Every employer shall maintain records of the progress of training of each
apprentice undergoing apprenticeship training in his establishment in such
form as may be prescribed.
(2) Every such employer shall also furnish such information and return in such
form, to such authorities and at such intervals as may be prescribed.
20. Settlement of disputes
(1) Any disagreement or dispute between an employer and an apprentice arising
out of the contract to apprenticeship shall be referred to the Apprenticeship
Adviser for decision.
(2) Any person aggrieved by the decision of the Apprenticeship Adviser under
sub-section (1) may, within thirty days from the date of communication to
him of such decision, prefer an appeal against the decision to the
Apprenticeship Council and such appeal shall be heard and determined by
a Committee of that Council appointed for the purpose.
(3) The decision of the Committee under sub-section (2) and subject only to
such decision, the decision of the Apprenticeship Adviser under subsection (1) shall be final.
21. Holding of test and grant of certificate and conclusion of training

(1) Every 5[trade apprentice] who has completed the period of training shall
appear for a test to be conducted by the National Council to determine his
proficiency in the designated trade in which he has 5[undergone his
apprenticeship training].
(2) Every 5[trade apprentice] who passes the test referred to in sub-section (1)
shall be granted a certificate of proficiency in the trade by the National
Council.
8

[(3) The progress in apprenticeship training of every graduate or technician


apprentice 10[technician (vocational) apprentice] shall be assessed by the
employer from time to time.]
9

[(4) Every graduate or technician apprentice or technician (vocational)


apprentice who completes his apprenticeship training to the satisfaction of
the concerned Regional Board, shall be granted a certificate of proficiency
by that Board.)

22. Offer and acceptance of employment


(1) It shall not be obligatory on the part of the employer to offer any
employment to any apprentice who has completed the period of his
apprenticeship training in his establishment, nor shall it be obligatory on
the part of the apprentice to accept an employment under the employer.
(2) Notwithstanding anything in sub-section (1), where there is a condition in a
contract of apprenticeship that the apprentice shall, after the successful
completion of the apprenticeship training, serve the employer, the
employer shall, on such completion, be bound to offer suitable
employment to the apprentice, and the apprentice shall be bound to serve
the employer in that capacity for such period and on such remuneration as
may be specified in the contract:

CONTRACT LABOUR (REGULATION & ABOLITION)


ACT, 1970
An Act to regulate the employment of contract labour in certain
establishments and to provide for its abolition in certain circumstances
and for matters connected therewith
Be it enacted by Parliament in the Twenty-first Year of the Republic of
India as follows: CHAPTER I: PRELIMINARY
1. Short title, extent, commencement and application

(1) This Act may be called the Contract Labour (Regulation and Abolition) Act,
1970
(2) It extends to the whole of India.
(3)

It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint and different dates may be
appointed for different provisions of this Act.

(4) It applies(a) To every establishment in which twenty or more workmen are employed or
were employed on any day of the preceding twelve months as contract
labour;
(b) To every contractor who employs or who employed on any day of the
preceding twelve months twenty or more workmen:
(5) (A) It shall not apply to establishments in which work only of an intermittent
or casual nature is performed.
(b) If a question arises whether work performed in an establishment is of an
intermittent or casual nature, the appropriate government shall decide the
question after consultation with the Central Board or, as the case may be,
as State Board, and its decision shall be final.
2. Definitions
(1) In this Act, unless the context otherwise requires,1

[(a) "appropriate government" means-

(I)

In relation to an establishment in respect of which the appropriate


government under the Industrial Disputes Act, 1947 (14 of 1947), is the
Central Government, the Central Government;

(ii) In relation to any other establishment, the Government of the State in which
that other establishment is situate;]
(b) A workman shall be deemed to be employed as "contract labour" in or in
connection with the work of an establishment when he is hired in or in
connection with such work by or through a contractor, with or without the
knowledge of the principal employer;

(c)

"contractor", in relation to an establishment, means a person who


undertakes to produce a given result for the establishment, other than a
mere supply of goods or articles of manufacture to such establishment,
through contract labour or who supplies contract labour for any work of
the establishment and includes a sub-contractor;

(d) "Controlled industry" means any industry the control of which by the Union
has been declared by any Central Act to be expedient in the public interest;
(e) "Establishment" means(I) any office or department of the government or a local authority, or
(ii) Any place where any industry, trade, business, manufacture or occupation is
carried on;
(f) "Prescribed" means prescribed by rules made under this Act;
(g) "Principal employer" means(I)

In relation to any office or department of the government or a local


authority, the head of that office or department or such other officer as the
government or the local authority; as the case may be, may specify in this
behalf,

(ii) In a factory, the owner or occupier of the factory and where a person has
been named as the manager of the factory under the Factories Act, 1948
(63 of 1948), the person so named.
(iii) In a mine, the owner or agent of the mine and where a person has been
named as the manager of the mine, the person so named,
(IV) In any other establishment, any person responsible for the supervision and
control of the establishment.
(h) "Wages" shall have the meaning assigned to it in clause (VI) of section 2 of
the Payment of Wages Act, 1936 (4 of 1936);
(I) "workman" means any person employed in or in connection with the work of
any establishment to do any skilled, semi-skilled or unskilled manual,
supervisory, technical or clerical work for hire or reward, whether the
terms of employment be express or implied, but does not include any such
person(A) Who is employed mainly in a managerial or administrative capacity; or

(B)

Who, being employed in a supervisory capacity draws wages exceeding


five hundred rupees per mensem or exercises, either by the nature of the
duties attached to the office or by reason of the powers vested in him,
functions mainly of a managerial nature; or

(C) Who is an out-worker, that is to say, a person to whom any article and
materials are given out by or on behalf of the principal employer to be
made up, cleaned, washed, altered, ornamented, finished, repaired, adapted
or otherwise processed for sale for the purposes of the trade or business of
the principal employer and the process is to be carried out either in the
home of the out-worker or in some other premises, not being premises
under the control and management of the principal employer.
(2) Any reference in this Act to a law which is not in force in the State of
Jammu and Kashmir shall, in relation to that State, be construed as a
reference to the corresponding law, if any, in force in that State

CHAPTER II: THE ADVISORY BOARDS


3. Central Advisory Board
(1) The Central Government shall, as soon as may be, constitute a Board to be
called the Central Advisory Contract Labour Board (hereinafter referred to
as the Central Board) to advise the Central Government on such matter
arising out of the administration of this Act as may be referred to it and to
carry out other functions assigned to it under this Act.
(2) The Central Board shall consist of(a) A Chairman to be appointed by the Central Government;
(b) The Chief Labour Commissioner (Central), ex official
(c)

Such number of members, not exceeding seventeen but not less than
eleven, as the Central Government may nominate to represent that
government, the Railways, the coal industry, the mining industry, the
contractors, the workmen and any other interests which, in the opinion of
the Central Government, ought to be represented on the Central Board.

(3) The number of persons to be appointed as members from each of the


categories specified in sub-section (2), the term of office and other
conditions of service of, the procedure to be followed in the discharge of

their functions by, and the manner of filling vacancies among, the
members of the Central Board shall be such as may be prescribed:
4. State Advisory Board
(1) The State Government may constitute a Board to be called the State
Advisory Contract Labour Board (hereinafter referred to as the State
Board) to advise the State Government on such matters arising out of the
administration of this Act as may be referred to it and to carry out other
functions assigned to it under this Act.
(2) The State board shall consist of(a) A Chairman to be appointed by the State Government;
(b) The Labour Commissioner, ex officio, or in his absence any other officer
nominated by the State Government in that behalf;
(c) Such number of members, not exceeding eleven but not less than nine, as
the State Government may nominate to represent that government, the
industry, the contractors, the workmen and any other interests which, in
the opinion of the State Government, ought to be represented on the State
Board.
(3) The number of persons to be appointed as members from each of the
categories specified in sub-section (2), the term of office and other
conditions of service of, the procedure to be followed in the discharge of
their functions by, and the manner of filling vacancies, among, the
members of the State Board shall be such as may be prescribed:
5. Power to constitute committees
(1) The Central Board or the State Board, as the case may be, may constitute
such committees and for such purpose or purposes as it may think fit.
(2) The committee constituted under sub-section (1) shall meet at such time and
places and shall observe such rules of procedure in regard to the
transaction of business at its meetings as may be prescribed.
(3) The members of a committee shall be paid such fees and allowances for
attending its meetings as may be prescribed:
CHAPTER III: REGISTRATION
CONTRACT LABOUR

OF

ESTABLISHMENTS

EMPLOYING

6. Appointment of registering officers


The appropriate government may, by an order notified in the Official
Gazette(a) Appoint such persons, being Gazette Officers of government, as it thinks fit
to be registering officers for the purpose of this chapter; and
(b) Define the limits, with in which a registering officer shall exercise the
powers conferred on him by or under this Act.
7. Registration of certain establishments
(1)

Every principal employer of an establishment to which this Act applies


shall, within such period as the appropriate government may, by
notification in the Official Gazette, fix in this behalf with respect to
establishment generally or with respect to any class of them, make an
application to the registering officer in the prescribed manner for
registration of the establishment:

(2) If the application for registration is complete in all respects, the registering
officer shall register the establishment and issue to the principal employer
of the establishment a certificate of registration containing such particulars
as may be prescribed.
8. Revocation of registration in certain cases
If the registering officer is satisfied, either on a reference made to him in
this behalf or otherwise, that the registration of any establishment has been
obtained by misrepresentation or suppression of any material fact, or that
for any other reason the registration has become useless or ineffective and,
therefore requires to be revoked, the registering officer may, after giving
an opportunity to the principal employer of the establishment to be heard
and with the previous approval of the appropriate government, revoke the
registration.
9. Effect of non-registration
No principal employer of an establishment, to which this Act applies, shall(a)

In the case of an establishment required to be registered under section 7,


but which has not been registered within the time fixed for the purpose
under that section;

(b)

In the case of an establishment the registration in respect of which has


been revoked under section 8,employ contract labour in the establishment
after the expiry of the period referred to in clause (a) or after the
revocation of registration referred to in clause (b), as the case may be.

10. Prohibition of employment of contract labour


(1) Notwithstanding anything contained in this Act, the appropriate government
may, after consultation with the Central Board or, as the case may be, a
State Board, prohibit, by notification in the Official Gazette, employment
of contract labour in any process, operation or other work in any
establishment.
(2)

Before issuing any notification under sub-section (1) in relation to an


establishment, the appropriate government shall have regard to the
conditions of work and benefits provided for the contract labour in that
establishment and other relevant factors, such as-

(a) Whether the process, operation or other work is incidental to, or necessary
for the industry, trade, business, manufacture or occupation that is carried
on in the establishment;
(b) Whether it is of perennial nature, that is to say, it is of sufficient duration
having regard to the nature of industry, trade, business, manufacture or
occupation carried on in that establishment;
(c)

Whether it is done ordinarily through regular workmen in that


establishment or an establishment similar thereto;

(d) Whether it is sufficient to employ considerable number of whole-time


workmen.
CHAPTER IV: LICENSING OF CONTRACTORS
11. Appointment of licensing officers
The appropriate government may, by an order notified in the Official
Gazette(a) Appoint such person, being Gazette Officers of government, as it thinks fit
to be licensing officers for the purposes of this chapter; and
(b) Define the limits, within which a licensing officer shall exercise the powers
conferred on licensing officers by or under this Act.

12. Licensing of contractors


(1)

With effect from such date as the appropriate government may, by


notification in the Official Gazette, appoint no contractor to whom this Act
applies, shall undertake or execute any work through contract labor except
under and in accordance with a licence issued in that behalf by the
licensing officer.

(2) Subject to the provisions of this Act, a licence under sub-section (1) may
contain such conditions including, in particular, conditions as to hours of
work, fixation of wages and other essential amenities in respect of contract
labour as the appropriate government may deem fit to impose in
accordance with the rules, if any, made under section 35 and shall be
issued on payment of such fees and on the deposit of such sum, if any, as
security for the due performance of the conditions as may be prescribed.
13. Grant of licenses
(1) Every application for the grant of license under sub-section (1) of section
12 shall be made in the prescribed form and shall contain the particulars
regarding the location of the establishment, the nature of process,
operation or work for which contract labor is to be employed and such
other particulars as may be prescribed.
(2)

The licensing officer may make such investigation in respect of the


application received under sub-section (1) and in making any such
investigation the licensing officer shall follow such procedure as may be
prescribed.

(3) A licence granted under this chapter shall be valid for the period specified
therein and may be renewed from time to time for such period and on
payment of such fees and on such conditions as may be prescribed.
14. Revocation, suspension and amendment of licenses
(1)

If the licensing officer is satisfied, either on a reference made to him in this


behalf or otherwise, that-

(a) A license granted under section 12 has been obtained by misrepresentation


or suppression of any material fact, or

(b) The holder of a license has, without reasonable cause, failed to comply with
the conditions subject to which the license has been granted or has
contravened any of the provisions of this Act or the rules made here under,
then without prejudice to any other penalty to which the holder of the
license may be liable under this Act, the licensing officer may, after giving
the holder of the license an opportunity of showing cause, revoke or
suspend the license or forfeit the sum, if any, or any portion thereof
deposited as security for the due performance of the conditions subject to
which the license has been granted.
(2)

Subject to any rules that may be made in this behalf, the licensing officer
may vary or amend a license granted under section 12.

. Appeal
(1) Any person aggrieved by an order made under section 7, section 8, section
12 or section 14 may, within thirty days from the date on which the order
is communicated to him, prefer an appeal to an appellate officer who shall
be a person nominated in this behalf by the appropriate government
(2)

On receipt of an appeal under sub-section (1), the appellate officer shall,


after giving the appellant an opportunity of being heard dispose of the
appeal as expeditiously as possible.

CHAPTER V: WELFARE AND HEALTH OF CONTRACT LABOUR


16. Canteens
(1) The appropriate government may make rules requiring that in every
establishment(a) To which this Act applies,
(b) where in work requiring employment of contract labor is likely to continue
for such period as may be prescribed, and
(c)

Wherein contract labor numbering one hundred or more is ordinarily


employed by a contractor, One or more canteens shall be provided and
maintained by the contractor for the use of such contract labour.

(2) Without prejudice to the generality of the foregoing power, such rules, may
provide for(a) The date by which the canteens shall be provided;

(b) The number of canteens that shall be provided, and the standards in respect
of construction, accommodation, furniture and other equipment of the
canteens; and
(c) The foodstuffs which may be served therein and the charges which may be
made therefore.
17. Rest-rooms
(1) In every place where in contract labour is required to halt at night in
connection within the work of an establishment(a) To which this Act applies, and
(b) In which work requiring employment of contract labour is likely to continue
for such period as may be prescribed, there shall be provided and
maintained by the contractor for the use of the contract labour such
number of rest-rooms or such other suitable alternative accommodation
with such time as may be prescribed.
(2) The rest-rooms or the alternative accommodation to be provided under subsection (1) shall be sufficiently lighted and ventilated and shall be
maintained in clean and comfortable condition.
18. Other facilities
It shall be the duty of every contractor employing contract labour in
connection with the work of an establishment to which this Act applies, to
provide and maintain(a) A sufficient supply of wholesome drinking-water for the contract labour at
convenient places;
(b)

A sufficient number of latrines and urinals of the prescribed types so


situated as to be convenient and accessible to the contract labour in the
establishment; and

(c) Washing facilities.

19. First-aid facilities


There shall be provided and maintained by the contractor so as to be
readily accessible during all working hours a first-aid box equipped with

the prescribed contents at every place where contract labour is employed


by him.
20. Liability of principal employer in certain cases
(1) If any amenity required to be provided under section 16, section 17, section
18, or section 19 for the benefit of the contract labour employed in an
establishment is not provided by the contractor within the time prescribed
therefore, such amenity shall be provided by the principal employer within
such time as may be prescribed.
(2) All expenses incurred by the principal employer in providing the amenity
may be recovered by the principal employer from the contractor either by
deduction from any amount payable to the contractor under any contract or
as a debt payable by the contractor.
21. Responsibility for payment of wages
(1) A contractor shall be responsible for payment of wages to each worker
employed by him as contract labour and such wages shall be paid before
the expiry of such period as may be prescribed.
(2) Every principal employer shall nominate a representative duly authorized
by him to be present at the time of disbursement of wages by the
contractor and it shall be the duty of such representative to certify the
amounts paid as wages in such manner as may be prescribed.
(3) It shall be the duty of the contractor or ensure the disbursement of wages in
the presence of the authorized representative of the principal employer.
(4) In case the contractor fails to make payment of wages within the prescribed
period or makes short payment, then the principal employer shall be
liable to make payment of wages in full or the unpaid balance due, as the
case may be, to the contract labour employed by the contractor and recover
the amount so paid from the contractor either by deduction from any
amount payable to the contractor under any contract or as a debt payable
by the contractor
CHAPTER VI: PENALTIES AND PROCEDURE
22. Obstructions
(1) Whoever obstructs an inspector in the discharge of his duties under this Act
or refuses or willfully neglects to afford the inspector any reasonable

facility for making any inspection, examination, inquiry or investigation


authorized by or under this Act in relation to an establishment to which, or
a contractor to whom, this Act applies, shall be punishable with
imprisonment for a term which may extend to three months, or with fine
which may extend to five hundred rupees, or with both.
(2)

Whoever willfully refuses to produce on the demand of an inspector any


register or other document kept in pursuance of this Act or prevents or
attempts to prevent or does anything which he has reason to believe is
likely to prevent any person from appearing before or being examined by
an inspector acting in pursuance of his duties under this Act, shall be
punishable with imprisonment for a term which may extend to three
months, or with a fine which may extend to five hundred rupees, or with
both.

23. Contravention of provisions regarding employment of contract labour


Whoever contravenes any provision of this Act or of any rules made there
under prohibiting, restricting or regulating the employment of contract
labour, or contravenes any condition of a license granted under this Act,
shall be punishable with imprisonment for a term which may extend to
three months, or with fine which may extend to one thousand rupees, or
with both, and in the case of a continuing contravention with an additional
fine which may extend to one hundred rupees for every day during which
such contravention continues after conviction for the first such
contravention.
24. Other offences
If any person contravenes any of the provisions of this Act or of any rules
made there under for which no other penalty is elsewhere provided, he
shall be punishable with imprisonment for a term which may extend to
three months, or with fine which may extend to one thousand rupees, or
with both.
25. Offences by companies
(1)

If the person committing an offence under this Act is a company, the


company as well as every person in charge of, and responsible to, the
company for the conduct of its business at the time of commission of the
offence shall be deemed to be guilty of the offence and shall be liable to be
proceeded against and punished accordingly:

(2) Notwithstanding anything contained in sub-section (1), where an offence


under this Act has been committed by a company and it is proved that the
offence has been committed with the consent or connivance of, or that the
commission of the offence is attributable to any neglect on the part of any
director, manager, managing agent or any other officer of the company,
such director, manager, managing agent or such other officer shall also be
deemed to be guilty of that offence and shall be liable to be proceeded
against and punished accordingly.
26. Cognizance of offences
No court shall take cognizance of any offence under this Act except on a
complaint made by, or with the previous sanction in writing of, the
inspector and no court inferior to that of a Presidency Magistrate or a
Magistrate of the first class shall try any offence punishable under this Act.
27. Limitation of prosecutions
No court shall take cognizance of an offence punishable under this Act
unless the complaint thereof is made within three months from the date on
which the alleged commission of the offence came to the knowledge of an
inspector:
CHAPTER VII: MISCELLANEOUS
28. Inspecting staff
(1) The appropriate government may, by notification in the Official Gazette,
appoint such persons as it thinks fit to be inspectors for the purposes of
this Act, and define the local limits within which they shall exercise their
powers under this Act.
(2) Subject to any rules made in this behalf, an inspector may, within the local
limits for which he is appointed(a) Enter, at all reasonable hours, with such assistance (if any), being persons
in the service of the government or any local or other public authority as
he thinks fit, any premises or place where contract labour is employed, for
the purpose of examining any register or record or notice required to be
kept or exhibited by or under this Act or rules made there under, and
require the production thereof for inspection:
(b) Examine any person whom he finds in any such premises or place and who,
he has reasonable cause to believe, is a workman employed therein;

(c) Require any person giving out work and any workman, to give any
information, which is in his power to give with respect to the names and
addresses of the person to, for and from whom the work is given out or
received, and with respect to the payments to be made for the work;
(d) Seize or take copies of such register, record of wages or notices or portions
thereof as he may consider relevant in respect of an offence under this Act
which he has reason to believe has been committed by the principal
employer or contractor; and
(e) Exercise such other powers as may be prescribed.
(3) Any information required to produce any document or thing or to give any
information required by an inspector under sub-section (2) shall be
deemed to be legally bound to do so within the meaning of section 175 and
section 176 of the Indian Penal Code, 1860 (45 of 1860).
(4)

The provisions of the Code of Criminal Procedure, 1898 (5 of 1898), shall,


so far as may be, apply to any search or seizure under sub-section (2) as
they apply to any search or seizure made under the authority of a warrant
issued under section 98 of the said Code.2

29. Registers and other records to be maintained


(1) Every principal employer and every contractor shall maintain such register
and records giving such particulars of contract labour employed, the nature
of work performed by the contract labour, the rate of wages paid to the
contract labour and such other particulars in such form as may be
prescribed.
(2) Every principal employer and every contractor shall keep exhibited in such
manner as may be prescribed within the premises of the establishment
where the contract labour is employed, notices in the prescribed form
containing particulars about the hours of work, nature of duty and such
other information as may be prescribed.
30. Effect of laws and agreements inconsistent with this Act
(1) The provisions of this Act shall have effect notwithstanding anything
inconsistent therewith contained in any other law or in the terms of any
agreement or contract of service, or in any standing orders applicable to
the establishment whether made before or after the

(2) Nothing contained in this Act shall be construed as precluding any such
contract labour from entering into an agreement with the principal
employer or the contractor, as the case may be, for granting those rights or
privileges in respect of any matter which are more favorable to them than
those to which they would be entitled under this Act.
31. Power to exempt in special cases
The appropriate government may, in the case of an emergency, direct, by
notification in the Official Gazette, that subject to such conditions and
restrictions, if any, and for such period or periods, as may be specified in
the notification, all or any of the provisions of this Act or the rules made
there under shall not apply to any establishment or class of establishments
or any class of contractors.
32. Protection of action taken under this Act
(1) No suit, prosecution or other legal proceedings shall lie against any
registering officer, licensing officer or any other government servant or
against any member of the Central Board or the State Board, as the case
may be, for anything which is in good faith done or intended to be done in
pursuance of this Act or any rule or order made there under.
(2) No suit or other legal proceeding shall lie against the government for any
damage caused or likely to be caused by anything which is in good faith
done or intended to be done in pursuance of this Act or any rule or order
made there under.
33. Power to give directions
The Central Government may give directions to the Government of any
State as to the carrying into execution in the State of the provisions
contained in this Act.
34. Power to remove difficulties
If any difficulty arises in giving effect to the provisions of this Act, the
Central Government may, by order published in the Official Gazette, make
such provisions not inconsistent with the provisions of this Act, as appears
to it to be necessary or expedient for removing the difficulty.
35. Power to make rules

(1) The appropriate government may, subject to the condition of previous


publication, make rules for carrying out the purposes of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power,
such rules may provide for all or any of the following matters, namely(a)

The number of persons to be appointed members representing various


interests on the Central Board and the State Board, the term of their office
and other conditions of service, the procedure to be followed in the
discharge of their functions and the manner of filling vacancies;

(b) The times and places of the meetings of any committee constituted under
that Act, the procedure to be followed at such meeting including the
quorum necessary for the transaction of business, and the fees and
allowances that may be paid to the members of a committee;
(c) The manner in which establishments may be registered under section 7, the
levy of a fee therefore and the form of certificate of registration;
(d) The form of application of the grant or renewal of a license under section
13 and the particulars it may contains;
(e)

The manner in which an investigation is to be made in respect of an


application for the grant of a license and the matters to be taken into
account in granting or refusing a license;

(f) The form of a license which may be granted or renewed under section 12
and the conditions subject to which the license may be granted or renewed,
the fees to be levied for the grant or renewal of a license and the deposit of
any sum as security for the performance of such conditions:
(g) The circumstances under which licenses may be varied or amended under
section 14;
(h) The form and manner in which appeals may be filed under section 15 and
the procedure to be followed by appellate officers in disposing of the
appeals;
(I)

The time within which facilities required by this Act to be provided and
maintained may be so provided by the contractor and in case of default on
the part of the contractor, by the principal employer;

(j) The number and types of canteens, rest-rooms, latrines and urinals that
should be provided and maintained;

(k) The type of equipment that should be provided in the first-aid boxes;
(l) The period within which wages payable to contract labour should be paid by
the contractor under sub-section (1) of section 21;
(m) The form of registers and records to be maintained by principal employers
and contractors;
(n) The submission of returns, forms in which, and the authorities to which, and
such returns may be submitted;
(o)

The collection of any information or statistics in relation to contract


labour; and
(p) Any other matter which has to be, or may be, prescribed under this Act.
(3) Every rule made by the Central Government under this Act shall be laid as
soon as may be after it is made, before each House of Parliament while it
is in session for a total period of thirty days which may be comprised in
one session or in two successive sessions, and if before the expiry of the
session in which it is so laid or the session immediately following, both
Houses agree in making any modification in the rule or both Houses agree
that the rule should not be made, the rule shall thereafter have effect only
in such modified form or be of no effect, as the case may be; so, however,
that any such modification or annulment shall be without prejudice to the
validity of anything previously done under that rule.
FACTORIES ACT, 1948
As per the requirement of fast growing industrialization, the Act pertaining
to establishment of norms of the factory and other similar work place
come under the prime objectives of the Factory Act
1.

Short title, extent and commencement is as under

(1) This Act may be called the Factories Act, 1948.


1

[(2) It extends to the whole of India 2[* * *].

(3) It shall came into force on the 1st day of April, 1949.
2.

Definition
Definition of the factory or workplace or commercial establishment
pertaining to the Factories Act 1948 can be evaluated as under (i.e. various
point mentioned in the incorporation of the factory act, 1948)

(a) "Adult" means a person who has completed his eighteenth year of age;
(b) "Adolescent" means a person who has completed his fifteenth year of age
but has not completed his eighteenth year;
(c) "Child" means a person who has not completed his fifteenth year of age;
(d) "Young person" means a person who is either a child or an adolescent;
(e)

"Day" means a period of twenty-four hours beginning at midnight;

(f)

"Power" means electrical energy, or any other form of energy which is


mechanically transmitted and is not generated by human or animal agency;

(g) "Prime mover" means any engine, motor or other appliance which generates
or otherwise provides power;
Meaning of Manufacturing Process
"Manufacturing process" means any process for(I)

Making, altering, repairing, ornamenting, finishing, packing, oiling,


washing, cleaning, breaking up, demolishing, or otherwise treating or
adapting any article or substance with a view to its use, sale, transport,
delivery or disposal, or

[(ii) Pumping oil, water, sewage or any other substance; or]

(iii) Generating, transforming or transmitting power; or


6

[(iv Composing types for printing, printing by letter press, lithography,


photogravure or other similar process or book binding;] 7[or]

(v) Constructing, reconstructing, repairing, refitting, finishing or breaking up


ships or vessels; 7[or]
7

[(VI) Preserving or storing any article in cold storage;]

(h) "Worker" means a person 8[employed, directly or by or through any agency


(including a contractor) with or without the knowledge of the principal
employer, whether for remuneration or not], in any manufacturing process,
or in cleaning any part of the machinery or premises used for a
manufacturing process, or in any other kind of work incidental to, or
connected with, the manufacturing process, or the subject of the

manufacturing process 7[but does not include any member of the armed
forces of the Union];
(I) Factory" means any premises including the precincts thereof(I) Whereon ten or more workers are working, or were working on any day of
the preceding twelve months, and in any part of which a manufacturing
process is being carried on with the aid of power, or is ordinarily so carried
on,
(ii)

Whereon twenty or more workers are working, or were working on any


day of the preceding twelve months, and in any part of which a
manufacturing process is being carried on without the aid of power, or is
ordinarily so carried on

(n) "Occupier" of a factory means the person who has ultimate control over the
affairs of the factory 14[***];
13

[PROVIDED that

(I)

In the case of a firm or other association of individuals, any one of the


individual partners or members thereof shall be deemed to be the occupier;

(ii) In the case of a company, any one of the directors shall be deemed to be the
occupier;
(iii) In the case of a factory owned or controlled by the Central Government or
any State Government, or any local authority, the person or persons
appointed to manage the affairs of the factory by the Central Government,
the State Government or the local authority, as the case may be, shall be
deemed to be the occupier:]
6. Approval, licensing and registration of factories
(1) The State Government may make rules22

21[

[(a) Requiring, for the purposes of the Act, the submission of plans of any
class or description of factories to the Chief Inspector or the State
Government;]
(a) Requiring the previous permission in writing of the State Government or
the Chief Inspector to be obtained for the site on which the factory is to be
situated and for the construction or extension of any factory or class or
description of factories;

(b) Requiring for the purpose of considering applications for such permission
the submission of plans and specifications;
(c) Prescribing the nature of such plans and specifications and by whom they
shall be certified;
(d)

Requiring the registration and licensing of factories or any class or


description of factories, and prescribing the fees payable for such
registration and licensing and for the renewal of licenses;

(e) Requiring that no license shall be granted or renewed unless the notice
specified in section 7 has been given.
(3) Where a State Government or a Chief Inspector refuses to grant permission
to the site, construction or extension of a factory or to the registration and
licensing of a factory, the applicant may within thirty days of the date of
such refusal appeal to the Central Government if the decision appealed
from was of the State Government and to the State Government in any
other case.
CHAPTER II: THE INSPECTING STAFF
8. Inspectors appointment
(1) The State Government may, by notification in the Official Gazette, appoint
such persons as possess the prescribed qualification to be Inspectors for
the purposes of this Act and may assign to them such local limits as it may
think fit.
(2) The State Government may, by notification in the Official Gazette, appoint
any person to be a Chief Inspector who shall, in addition to the powers
conferred on a Chief Inspector under this Act, exercise the powers of an
Inspector through out the State.
7

[(2A) The State Government may, by notification in the Official Gazette,


appoint as many Additional Chief Inspectors, Joint Chief Inspectors and
Deputy Chief Inspectors and as many other officers as it thinks fit to assist
the Chief Inspector and to exercise such of the powers of the Chief
Inspector as may be specified in such notification.

(2B) Every Additional Chief Inspector, Joint Chief Inspector, Deputy Chief
Inspector and every other officer appointed under sub-section (2A) shall,
in addition to the powers of a Chief Inspector specified in the notification

by which he is appointed, exercise the powers of an Inspector throughout


the State.]
(3) No person shall be appointed under sub-section (1), sub-section (2) 7[,subsection (2A)] or sub-section (5) or, having been so appointed, shall
continue to hold office, who is or becomes directly or indirectly interested
in a factory or in any process or business carried on therein or in any
patent or machinery connected therewith.
(4) Every District Magistrate shall be an Inspector for his district.
(5) The State Government may also, by notification as aforesaid, appoint such
public officers as it thinks fit to be additional Inspectors for all or any of
the purposes of this Act, within such local limits as it may assign to them
respectively.
(6)

In any area where there are more Inspectors than one the State
Government may, by notification as aforesaid, declare the powers, which
such Inspectors shall respectively exercise and the Inspector to whom the
prescribed notices are to be sent.

(7) 27[Every Chief Inspector, Additional Chief Inspector, Joint Chief Inspector,
Deputy Chief Inspector, Inspector and every other officer appointed under
this section] shall be deemed to be a public servant within the meaning of
the Indian Penal Code (45 of 1860), and shall be officially subordinate to
such authority as the State Government may specify in this behalf.
9. Powers of Inspectors
Subject to any rules made in this behalf, an Inspector may, within the local
limits for which he is appointed,(a) Enter, with such assistants, being persons in the service of the government,
or any local or other public authority, 4[or with an expert] as he thinks fit,
any place which is used, or which he has reason to believe is used, as a
factory;
28

[(b) make examination of the premises, plant, machinery, article or substance;

(c)

Inquire into any accident or dangerous occurrence, whether resulting in


bodily injury, disability or not, and take on the spot or otherwise
statements of any person which he may consider necessary for such
inquiry;

(d)

Require the production of any prescribed register or any other document


relating to the factory;

(e)

Seize, or take copies of, any register, record or other document or any
portion thereof as he may consider necessary in respect of any offence
under this Act, which he has reason to believe, has been committed;

(f)

Direct the occupier that any premises or any part thereof, or anything lying
therein, shall be left undisturbed (whether generally or in particular
respects) for so long as is necessary for the purpose of any examination
under clause (b);

(g)

Take measurements and photographs and make such recordings as he


considers necessary for the purpose of any examination under clause (b),
taking with him any necessary instrument or equipment;

10. Certifying surgeons


(1)

The State Government may appoint qualified medical practitioners to be


certifying surgeons for the purposes of this Act within such local limits as
assigned

(2) The certifying surgeon shall carry out such duties as may be prescribed in
connection with(a) The examination and certification of young persons under this Act;
(b)

The examination of persons engaged in factories in such dangerous


occupations or processes as may be prescribed;

(c) The exercising of such medical supervision as may be prescribed for any
factory or class or description of factories where(d) Cases of illness have occurred which it is reasonable to believe are due to
the nature of the manufacturing process carried on, or other conditions of
work prevailing, therein;
(3) Young persons are, or are about to be, employed in any work which is
likely to cause injury to their health.
CHAPTER III: HEALTH
11. Cleanliness
(1)

Every factory shall be kept clean

(a)

Accumulation of dirt and refuse shall be removed daily by sweeping or


by any other effective method from the floors and benches of workrooms
and from staircases and passages, and disposed of in a suitable manner;

(b) The floor of every workroom shall be cleaned at least once in every week
(c) Where a floor is liable to become wet in the course of any manufacturing
process to such extent as is capable of being drained, effectively

(d) All inside walls and partitions, all ceilings or tops of rooms and all walls,
sides and tops of passages and staircases shall be white washed or
varnished and be repainted or re varnished at least once in a year.

[(dd) all doors and window frames and other wooden or metallic framework
and shutters shall be kept painted or varnished and the painting in every
five years;]

12.

Disposal of wastes and effluents

33

[(1) Effective arrangements shall be made in every factory for the treatment of
wastes and effluents due to the manufacturing process carried on therein,
so as to render them innocuous, and for their disposal.]

(2) The State Government may make rules prescribing the arrangements to be
made under sub-section (1) or requiring that the arrangements made in
accordance with sub-section (1) shall be approved by such authority as
may be prescribed.
13. Ventilation and temperature
(1) Effective and suitable provision shall be made in every factory for securing
and maintaining in every workroom
(a)

Adequate ventilation by the circulation of fresh air, and

(b) Such a temperature as will secure to workers therein reasonable conditions


of comfort and prevent injury to health and in particular,(I)

Walls and roofs shall be of such material and so designed that such
temperature shall not be exceeded but kept as low as practicable;

(ii) Where the nature of the work carried on in the factory involves, or is likely
to involve, the production of excessively high temperatures, such adequate
measures as are practicable shall be taken to protect the workers there
from, by separating the process which produces such temperatures from
the workroom, by insulating the hot parts or by other effective means.
14. Dust and fume
(1) In every factory in which, by reason of the manufacturing process carried
on, there is given off any dust or fume or other impurity of such a nature
and to such an extent as is likely to be injurious or offensive to the workers
employed therein, effective measures shall be taken to prevent its
inhalation and accumulation in any work room.
15. Artificial humidification
(1) In respect of all factories in which the humidity of the air is artificially
increased, the State Government may make rules,(a)

Preserving standards of humidification;


(b) Regulating the methods used for artificially increasing the humidity of
the air;

(b)

Directing prescribed tests for determining the humidity of the air to be


correctly carried out and recorded;

(d) Prescribing methods to be adopted for securing adequate ventilation and


cooling of the air in the workrooms.
16. Overcrowding
(1) No room in any factory shall be overcrowded to an extent injurious to the
health of the workers employed therein.
(2) Without prejudice to the generality of sub-section (1), there shall be in every
work room of a factory in existence on the date of the commencement of
this Act at least 35[9.9 cubic meters] and of a factory built after the
commencement of this Act at least 36[4.2 cubic meters] or space for every

worker employed therein, and for the purposes of this sub-section no


account shall be taken of any space which is more than 37[4.2metres] above
the level of the floor of the room.
17.

Lighting

(1) In every part of a factory where workers are working or passing there shall
be provided and maintained sufficient and suitable lighting, natural or
artificial, or both.
18.

Drinking water

(1)

In every factory effective arrangements shall be made to provide and


maintain at suitable points conveniently situated for all workers employed
therein a sufficient supply of wholesome drinking water.

(2)

All such points shall be legibly marked "drinking water" in a language


understood by a majority of the workers employed in the factory, and no
such point shall be situated within 38[six meters of any washing place,
urinal, latrine, spittoon, open drain carrying sullage or effluent or any other
source of contamination] unless a shorter distance is approved in writing
by the Chief Inspector.

(3) In every factory wherein more than two hundred and fifty workers are
ordinarily employed, provisions shall be made for cooling drinking water
during hot weather by effective means.
19. Latrines and urinals
(1)

In every factory-

(a)

Sufficient latrine and urinal accommodation of prescribed types shall be


provided conveniently situated and accessible to workers at all times while
they are at the factory;

(b)

Separate enclosed accommodation shall be provided for male and


female workers;

(c)

Such accommodation shall be adequately lighted and ventilated,

(d)

All such accommodation shall be maintained in a clean and sanitary


condition at all times;

(e) Sweepers shall be employed whose primary duty it would be to keep clean
latrines, urinals and washing places.

20. Spittoons
(1) In every factory there shall be provided a sufficient number of spittoons in
convenient places and they shall be maintained in a clean and hygienic
condition.
(2) No person shall spit within the premises of a factory except in the Spittoons
provided for the purpose and a notice containing this provision and the
penalty for its violation shall be prominently displayed at suitable places in
the premises.
CHAPTER IV: SAFETY
21. Fencing of machinery
(1) In every factory the following, namely:
(I)

Every moving part of a prime mover and every flywheel connected to a


prime mover,

(ii) The headrace and tailrace of every water-wheel and water turbine;
(iii) Any part of a stock-bar which projects beyond the head stock of a lathe;
and
(IV) Unless they are in such position or of such construction as to be safe to
every person employed in the factory as they would be if they were
securely fenced, the following, namely,(a) Every part of an electric generator, a motor or rotary convertor;
(b) Every part of transmission machinery; and
(c) Every dangerous part of any other machinery;
Shall be securely fenced by safeguards of substantial construction which
[shall be constantly maintained and kept in position] while the parts of
machinery they are fencing are in motion or in use. 41
40

22. Work on or near machinery in motion


For any factory it becomes necessary to examine any part of the machinery
is in motion- lubrication or other adjusting operations. While the
machinery is in motion such examinations or operations shall be made or

carried out only by specially trained adult male workers wearing light
fitting clothing clothes which shall be supplied by the occupier.
23. Employment of young persons on dangerous machines
(1) No young person shall be required or allowed to work at any machine
unless he has been fully instructed as to the dangers arising in connection
with the machine
(a) Has received sufficient training in work at the machine, or
(b) Is under adequate supervision by a person who has a through knowledge
and experience of the machine.
24. Striking gear and devices for cutting off power
(1) In every factory(a) Suitable striking gear or other efficient mechanical appliance shall be
provided and maintained and used to move belts
(2) In every factory suitable devices for cutting off power in emergencies from
running machinery shall be provided and maintained in every workroom:
25. Self-acting machines
No person is allowed to run on the outward or inward transverse within a
distance of 45 centimeters from any fixed structure which is not part of the
machine.
26. Casing of new machinery
Every set, screw bolt or key or any revolving shaft, spindle, wheel or
pinion shall be so sunk, encased or otherwise effectively guarded as to
prevent danger.
27. Prohibition of employment of women and children near cotton-openers
No woman or child shall be employed in any part of a factory for pressing
cotton in which a cotton opener is at work:
28.

Hoists and lifts

(1)

In every factory-

(a)

Every hoist and lift shall be-

(i)

Of good mechanical construction, sound material and adequate strength;

(ii)

Properly maintained, and shall be thoroughly examined by a competent


person at least once in every period of six months

[29] Lifting machines, chains, ropes and lifting tackles


(1)

(i)

In any factory the following provisions shall be complied with every


chain, rope and lifting tackle for the purpose of raising or lowering
persons, goods or materials:
Of good construction, sound material and adequate strength and free from
defects;

(ii) Properly maintained; and


(iii) Thoroughly examined by a competent person at least once in every period
of twelve months,
30.

Revolving machinery
Effective measures shall be taken in every factory to ensure that the safe
working peripheral speed of every revolving vessel, cage, basket, flywheel, pulley, disc or similar appliance driven by power is not exceeded.

31.

Pressure plant

Effective measures shall be taken to ensure that the safe working


pressure of such plant or machinery or part is not exceeded.
32.

Floors, stairs and means of access


In every factory-

(a)

All floors, steps, stairs, passages and gangways shall be of sound


construction and properly maintained 54[and shall be kept free from
obstructions and substances likely to cause persons to slip], and where it is
necessary to ensure safety, steps, stairs, passages, and gangways shall be
provided with substantial handrails;

33.

Pits, sumps, opening in floors, etc.

(1)

In every factory every fixed vessel, sump, tank, pit or opening in the
ground or in a floor which by reason of its depth, situation, construction or
contents, is or may be a source of danger, shall be either securely covered
or securely fenced.

34.

Excessive weights

(1)

No person shall be employed in any factory to lift, carry or move any load
so heavy as to be likely to cause him injury.

35. Protection of eyes


(a)

Risk of injury to the eyes from particles or fragments thrown off in the
course of the process, or

(b)

Risk to the eyes by reason of exposure to excessive light,

55

[36] Precautions against dangerous fumes, gases, etc.

(1)

No person shall be required or allowed to enter any chamber, tank, vat,


pit, pipe, flue or other confined space in any factory to prevent this injury
effective measures are to be taken in this respect.

(2)

Suitable breaking apparatus securely attached to a rope shall be used.

56

[36A] Precautions regarding the use of portable electric light


In any factory-

(a)

No portable electric light or any other electric appliance of voltage


exceeding twenty-four volts shall be permitted for use inside any chamber,
tank, vat, pit, pipe, flue or other confined space, 57[unless adequate safety
devices are provided]; and

(b) If any inflammable gas fume or dust is likely to be present in such chamber,
tank, vat, pit, pipe, flue or other confined space no lamp or light other than
that of flame-proof construction shall be permitted to be used therein.]
37. Explosive, inflammable dust, gas, etc.
(1) No persons shall be required or allowed to enter any chamber tank, vat, pit,
pipe, flue or other confined space in any factory. To prevent this injury
effective measures are to be taken in this respect.
(2)

Suitable breaking apparatus securely attached to a rope shall be used.

58

[38] Precautions in case of fire

(1)

In every factory, all practicable measures shall be taken to prevent


outbreak of fire and its size of spread,

(a) Safe means of escape for all persons in the event of a fire, and
(b) The necessary equipment and facilities for extinguishing fire.
(2)

Effective measures shall be taken to ensure that in every factory all the
workers are familiar with the means of escape in case of fire and have
been adequately trained.

(3) Buckets full of sand and water are conveniently kept and fire
40B. Safety officers
(1) In every factor,(I) Wherein one thousand or more workers are ordinarily employed, or
ii) Wherein, the opinion of the State Government any manufacturing process or
operation is carried on, which process or operation involves any risk of
bodily injury, poisoning or disease, or any other hazard to health, to the
persons employed in the factory, the occupier shall, if so required by the
State Government by notification in the Official Gazette, employ such
number of Safety Officers as may be specified in that notification.
(2) The duties, qualifications and conditions of service of Safety Officers shall
be such as may be prescribed by the State Government.]
41. Power to make rules to supplement this Chapter
The State Government may make rules requiring the provision in any
factory or in any class or description of factories of such further 62[devices
and measures] for securing the safety of persons employed therein as it
may deem necessary.
CHAPTER V: WELFARE
42. Washing facilities
(1)

In every factory,-

(a)

Adequate and suitable facilities for washing shall be provided and


maintained for the use of the workers therein;

(b)

Separate and adequately screened facilities shall be provided for the use of
male and female workers;

(c)

Such facilities shall be conveniently accessible and shall be kept clean.

44

. Facilities for sitting

(1)

In every factory suitable arrangements for sitting shall be provided and


maintained for all workers provides or get an opportunity for rest during the
course of their work.

45.

First-aid appliances

(a) First aid appliances shall be provided in every factory and maintained so as
to be readily accessible during all the working hours first aid boxes well
equipped with the prescribed contents namely (a) 1 = 150 workers, under the
supervision of the senior supervisor who is trained in first- aid training and
who shall always be readily available during the working hours of the
factory.
(b)

In every factory where in more than five hundred workers are ordinarily
employed there shall be provides and maintained an ambulance room of the
prescribed size, and well equipped under the case of medical staff.

46.

Canteens
Where in more than two hundred and fifty workers are ordinarily employed
or canteens shall be provided and maintained by the occupier for the use of
the worker and a managing committee for canteen shall be constituted
consisting of the representatives of the workers.

47. Shelters, rest rooms and lunch rooms


(1)

In every factory wherein more than one hundred and fifty workers are
ordinarily employed, adequate and suitable shelters or rest rooms and a
suitable lunch room, with provision for drinking water, where workers can
eat meals brought by them, shall be provided and maintained for the use of
the workers:

48.

Crches

(1)

In every factory wherein more than 69[thirty women workers] are ordinarily
employed there shall be provided and maintained a suitable room or rooms
for the use of children under the age of six years of such women.

49. Welfare officers


(1)

In every factory wherein five hundred or more workers are ordinarily


employed, the occupier shall employ in the factory such number of welfare
officers as may be prescribed.

CHAPTER VI: WORKING HOURS OF ADULTS


51. Weekly hours
No adult worker shall be required or allowed to work in a factory for more
than forty eight hours in any week.
52. Weekly holidays
(1)

No adult worker shall be required or allowed to work in a factory on the


first day of the week (hereinafter referred to as the said day), unless

(a)

He has or will have a holiday for a whole day on one of the three days
immediately before or after the said day, and

(b) The manager of the factory has, before the said day or the substituted day
under clause (a), whichever is earlier,(I) Delivered a notice at the office of the Inspector of his intention to require
the worker to work on the said day and of the day which is to be
substituted, and
(ii) Displayed a notice to that effect in the factory:
53. Compensatory holidays
(1) Where, as a result of the passing of an order or the making of a rule under
the provisions of this Act exempting a factory or the workers therein from
the provisions of section 52, a worker is deprived of any of the weekly
holidays for which provision is made in sub-section (1) of that section, he
shall be allowed, within the month in which the holidays were due to him
or within the two months immediately following that month,
compensatory holidays of equal number to the holidays so lost.
54. Daily hours

Subject to the provisions of section 51, no adult worker shall be required or


allowed to work in a factory for more than nine hours in any day:
55. Intervals for rest
71

[(1) 72[The periods of work] of adult workers in a factory each day shall be so
fixed that no period shall exceed five hours and that no worker shall work
for more than five hours before he has had an interval for rest of at least
half an hour.

56. Spread over


The periods of work of an adult worker in a factory shall be so arranged
that inclusive of his intervals for rest under section 55, they shall not
spread over more than ten and a half hours in any day:
57. Night shifts
Where a worker in a factory works on a shift which extends beyond
midnight,(a)

For the purposes of sections 52 and 53, a holiday for a whole day shall
mean in his case a period of twenty-four consecutive hours beginning
when his shift ends;

(b) The following day for him shall be deemed to be the period of twenty-four
hours beginning when such shift ends, and the hours he has worked after
midnight shall be counted in the previous day.
58. Prohibition of overlapping shifts
(1) Work shall not be carried on in any factory by means of a system of shifts
so arranged that more than one relay of workers is engaged in work of the
same kind at the same time.
75

[(2) The State Government or subject to the control of the State Government,
the Chief Inspector, may, by written order and for the reasons specified
therein, exempt on such conditions as may be deemed expedient, any
factory or class or description of factories or any department or section of
a factory or any category or description of workers therein from the
provisions of sub-section (1).]

59. Extra wages for overtime

(1) Where a worker works in a factory for more than nine hours in any day or
for more than forty-eight hours in any week, he shall, in respect of
overtime work, be entitled to wages at the rate of twice his ordinary rate of
wages.
76

[(2) For the purposes of sub-section (1), "ordinary rate of wages" means the
basic wages plus such allowances, including the cash equivalent of the
advantage accruing through the concessional sale to workers of food
grains and other articles, as the worker is for the time being entitled to, but
does not include a bonus and wages for overtime work.

(3) Where any workers in a factory are paid on a piece-rate basis, the time rate
shall be deemed to be equivalent to the daily average of their full-time
earnings for the days on which they actually worked on the same or
identical job during the month immediately preceding the calendar month
during which the overtime work was done, and such time rates shall be
deemed to be the ordinary rates of wages of those workers:
PROVIDED that in the case of a worker who has not worked in
immediately preceding calendar month on the same or identical job,
time rate shall be deemed to be equivalent to the daily average of
earning of the worker for the days on which he actually worked in
week in which the overtime work was done.

the
the
the
the

(5) The State Government may make rules prescribing(a) The manner in which the cash equivalent of the advantage accruing through
the concessional sale to a worker of food grains and other articles shall be
computed; and
(6) The registers that shall be maintained in a factory for the purpose of
securing compliance with the provisions of this section.]
60. Restriction on double employment
No adult worker shall be required or allowed to work in any factory on
any day on which he has already been working in any other factory, save
in such circumstances as may be prescribed.
61.

Notice of periods of work for adults

(1)

There shall be displayed and correctly maintained in every factory in


accordance with the provisions of sub-section (2) of section 108, a notice

of periods of work for adults, showing clearly for every day the periods
during which adult workers may be required to work.
(2) The periods shown in the notice required by sub-section (1) shall be fixed
beforehand in accordance with the following provisions of this section,
and shall be such that workers working for those periods would not be
working in contravention of any of the provisions of sections 51, 52, 54,
78
[55, 56 and 58.].
(3) Where all the adult workers in a factory are required to work during the
same, periods, the manager of the factory shall fix those periods for such
workers generally.
(4) Where all the adult workers in a factory are not required to work during the
same periods, the manager of the factory shall classify them into groups
according to the nature of their work indicating the number of workers in
each group.
(5) For each group which is not required to work on a system of shifts, the
manager of the factory shall fix the periods during which the group may be
required to work.
(6) Where any group is required to work on a system of shifts and the relays
are not to be subject to predetermined periodical changes of shifts, the
manager of the factory shall fix the periods during which each relay of the
group may be required to work.
(7) Where any group is to work on a system of shifts and the relays are to be
subject to predetermined periodical changes of shifts, the manager of the
factory shall draw up a scheme of shifts where under the periods during
which any relay of the group may be required to work and the relay which
will be working at any time of the day shall be known for any day.
(8)

The State Government may prescribe forms of the notice required by subsection (1) and the manner in which it shall be maintained.

(9)

In the case of a factory beginning work after the commencement of this


Act, a copy of the notice referred to in sub-section (1) shall be sent in
duplicate to the Inspector before the day on which work is begun in the
factory.

(10) Any proposed change in the system of work in any factory which will
necessitate a change in the notice referred to in sub-section (1) shall be
notified to the Inspector in duplicate before the change is made, and except

with the previous sanction of the Inspector, no such change shall be made
until one week has elapsed since the last change.
62. Register of adult workers
(1) The manager of every factory shall maintain a register of adult workers, to
be available to the Inspector at all times during working hours, or when
any work is being carried on in the factory, showing
(a) The name of each adult worker in the factory;
(b) The nature of his work;
(c) The group, if any, in which he is included;
(d) Where his group works on shifts, the relay to which he is allotted; and
(e)
7

Such other particulars as may be prescribed:

[(1A) No adult worker shall be required or allowed to work in any factory


unless his name and other particulars have been entered in the register of
adult workers.]

(2)

The State Government may prescribe the form of the register of adult
workers, the manner in which it shall be maintained and the period for
which it shall be preserved.

63. Hours of work to correspond with notice under section 61 and register
under section 62
No adult worker shall be required or allowed to work in any factory
otherwise than in accordance with the notice of periods of work for adults
displayed in the factory and the entries made beforehand against his name
in the register of adult workers of the factory.
64. Power to make exempting rules
(1) The State Government may make rules defining the persons who hold
positions of supervision or management or are employed in a confidential
position in a factory 7[or empowering the Chief Inspector to declare any
person, other than a person defined by such rules, as a person holding
position of supervision or management or employed in a confidential
position in a factory if, in the opinion of the Chief Inspector, such person
holds such position or is so employed], and the provisions of this Chapter,

other than the provisions of clause (b) of sub-section (1) of section 66 and
of the proviso to that sub-section, shall not apply to any
(2) The State Government may make rules in respect of adult workers in
factories providing for the exemption, to such extent and subject to such
conditions as may be prescribed(a)

Of workers engaged on urgent repairs, from the provisions of sections 51,


52, 54, 55 and 56;

(b) Of workers engaged in work in the nature of preparatory or complementary


work which must necessarily be carried on outside the limits laid down for
the general working of the factory, from the provisions of sections 51, 54,
55, and 56;
(c) Of workers engaged in work which is necessarily so intermittent that the
intervals during which they do not work while on duty ordinarily amount
to more than the intervals for rest required by or under section 55, from the
provisions of sections 51, 54, 55 and 56;
(d) Of workers engaged in any work which for technical reasons must be
carried on continuously 79[* * *] from the provisions of sections 51, 52, 54,
55, and 56;
(e)

Of workers engaged in making or supplying articles of prime necessity


which must be made or supplied every day, from the provisions of
80
[section 51 and section 52];

(f)

Of workers engaged in a manufacturing process which cannot be carried


on except during fixed seasons, from the provisions of 5[section 51, section
52 and section 54];

(g)

Of workers engaged in a manufacturing process which cannot be carried


on except at times dependent on the irregular action of natural forces, from
the provisions of sections 52 and 55;

(h)

Of workers engaged in engine-rooms or boiler-houses or in attending to


power-plant or transmission machinery, from the provisions of 81[section
51 and section 52];

[(I) Of workers engaged in the printing of newspapers, who are held up on


account of the breakdown of machinery, from the provisions of sections
51, 54 and 56.

(j)
7

[(k) Of workers engaged in any work, which is notified by the State


Government in the Official Gazette as a work of national importance, from
the provisions of section 51, section 52, section 54, section 55 and section
56.]

(3)

Of workers engaged in the loading or unloading of railway wagons, 7[or


Lorries or trucks], from the provisions of sections 51, 52, 54, 55 and 56];

Rules made under sub-section (2) providing for any exemption may also
provide for any consequential exemption from the provisions of section 61
which the State Government may deem to be expedient, subject to such
conditions as it may prescribe.

[(4) In making rules under this section, the State Government shall not exceed,
except in respect of exemption under clause (a) of sub-section (2), the
following limits of work inclusive of overtime:

(I) The total number of hours of work in any day shall not exceed ten;
(ii) The spread over, inclusive of intervals for rest, shall not exceed twelve
hours in any one day:
7

[(iii) The total number of hours of work in a week, including overtime, shall
not exceed sixty;]

82

[(IV)] The total numbers of hours of overtime shall not exceed fifty for any
one quarter.

(5)

Rules made under this section shall remain in force for not more than
[five years].

83

65.

Power to make exempting orders

(1) Where the State Government is satisfied that, owing to the nature of the
work carried on or to other circumstances, it is unreasonable to require that
the periods of work of any adult worker in any factory or class or
description of factories should be fixed beforehand, it may, by written
order, relax or modify the provisions of section 61 in respect of such
workers therein, to such extent and in such manner as it may think fit, and
subject to such conditions as it may deem expedient to ensure control over
periods of work.
(2) The State Government or, subject to the control of the State Government,
the Chief Inspector may, by written order exempt, on such conditions as it

or he may deem expedient, any or all of the adult workers in any factory or
group or a class or description of factories from any or all of the provisions
of section 51, 52, 54 and 56 on the ground that the exemption is required
to enable the factory or factories to deal with an exceptional press of work.
84

[(3) Any exemption granted under sub-section (2) shall be subject to the
following conditions, namely-

(I) The total number of hours of work in any day shall not exceed twelve;
(ii)

The spread over, inclusive of intervals for rest, shall not exceed thirteen
hours in any one day;

(iii) The total number of hours of work in any week, including overtime, shall
not exceed sixty;
(IV) No worker shall be allowed to work overtime, for more than seven days at
a stretch and the total number of hours of overtime work in any quarter
shall not exceed seventy-five.
66. Further restrictions on employment of women
(1)

The provisions of this Chapter shall, in their application to women in


factories, be supplemented by the following further restrictions, namely:

(a) No exemption from the provisions of section 54 may be granted in respect


of any woman;
(b) No woman shall be 86[required or allowed to work in any factory] except
between the hours of 6 A.M. and 7 P.M.:
3

[(c) There shall be no change of shifts except after a weekly holiday


INDUSTRIAL DISPUTES ACT, 1947
The industrial dispute act has been an Endeavour on the part of the
government to regulate industrial relations in India and its design to ensure
industrial peace and harmony. It lays down authorities and procedure for
investigation and settlement of industrial disputes by negotiation,
conciliation, adjunction, instead, of trial of strength through strikes and
lockouts as a part of objective of preventing work stoppage.
CHAPTER I: PRELIMINARY

1.

Short title, extent and commencement

(1) This Act may be called the Industrial Disputes Act, 1947.
(2) It extends to the whole of India]
(3) It shall come into force on the first day of April, 1947.
2.

Definitions of industrial dispute.


In this Act, unless there is anything repugnant in the subject or context,-

1.

2.

Industry means any systematic activity carried out on by co-operation


between any employer and his workmen (weather such workmen are
employed by such employer directly or by through any agency, including
a contractor for the production supply or distribution of goods and service
with a view to satisfy human wants or whishes(not being wants or wishes
which are merely spiritual or religious in nature).
Industrial dispute or difference between employers and employers or
employers or between employers and workmen, or between workmen and
workmen which is connected with the employment or non employment or
terms of employment or with the conditions of Labour of any person;

(I) "Industrial establishment or undertaking" means an establishment or


undertaking in which any industry is carried on:
19

[(kkk) "Lay-off" means the failure, refusal or inability of an employer on


account of shortage of coal, power or raw materials or the accumulation of
stocks or the break-down of machinery 39[or natural calamity or 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
been retrenched;

(l)

"lock-out" means the 39[temporary dosing of a place of employment], or the


suspension of work, or the refusal by an employer to continue to employ
any number of persons employed by him;

18

[(1a) "major port" means a major port as defined in clause (8) of section 3 of
the Indian Ports Act, 1908 (15 of 1908);

(1b) "mine" means a mine as defined in clause (j) of sub-section (1) of section 2
of the mines Act, 1952 (35 of 1952);]
38

[(ll) "National Tribunal" means a National Industrial Tribunal constituted


under section 7B;]

32

[(lll) "Office bearer", in relation to a trade union, includes any member of the
executive there of, but does not include an auditor;]

(m) "Prescribed" means prescribed by rules made under this Act;


(n)

"Public utility service" means-

(i) Any railway service 40[or any transport service for the carriage of
passengers or goods by air];
41

[(ia) Any service in, or in connection with the working of , any major port or
dock;]

(ii)

Any section of an industrial establishment, on the working of which the


safety of the establishment or the workmen employed therein depends;

(iii) Any postal, telegraph or telephone service;


(iv) Any industry which supplies power, light or water to the public;
(v) Any system of public conservancy or sanitation;
(vi) Any industry specified in the 42[First Schedule] which the appropriate
government may, if satisfied that public emergency or public interest so
requires, by notification in the Official Gazette, declare to be a public
utility service for the purposes of this Act, for such period as may be
specified in the notification:
PROVIDED that the period so specified shall not, in the first instance,
exceed six months but may, by a like notification, be extended from time
to time, by any period not exceeding six months, at any one time if in the
opinion of the appropriate government public emergency or public interest
requires such extension;
(o) "Railway company" means a railway company as defined in section 3 of
the Indian Railways Act, 1890 (9 of 1890);
19

[(oo) "Retrenchments" 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 the workman; or

(b)

Retirement of the workman on reaching the age of superannuation if the


contract of employment between the employer and the workman
concerned contains a stipulation in that behalf; or

43

[(bb) Termination of the service of the workman as a result of the non-renewal


of the contract of employment between the employer and the workman
concerned on its expiry or of such contract being terminated under a
stipulation on that behalf contained therein; or]

(c) Termination of the service of a workman on the ground of continued illhealth;]


44

[(p) "Settlement" means a settlement arrived at in the course of conciliation


proceeding and includes a written agreement between the employer and
workmen arrived at otherwise than in the course of conciliation proceeding
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 45[an
officer authorised in this behalf by] the appropriate government and the
conciliation officer;]

(q) "Strike" means a cessation of work by a body of persons employed in any


industry acting in combination or a concerted refusal, or a refusal, under; a
common understanding of any number of persons who are or have been so
employed to continue to work or to accept employment;
47

[(r) "Tribunal" means an Industrial Tribunal constituted under section 7A and


includes an Industrial Tribunal constituted before the 10th day of March,
1957, under this Act;]

47

[(ra) "Unfair labour practice" means any of the practices specified in the Fifth
Schedule;

(rb) "Village industries" has the meaning assigned to it in clause (h) of section 2
of the Khadi and Village Industries Commission Act, 1956 (61 of 1956);]
49

[(s) "Workman" means any person (including an apprentice employed in any


industry to do any manual, unskilled, skilled, technical, operational,
clerical or supervisory work for hire or reward, whether the terms of
employment be express or implied, and for the purposes of any proceeding
under this Act 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 to that dispute, but does not include any such person-

(i)

Who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act,
1950 (46 of 1950), or the Navy Act, 1957 (62 of 1957); or

(ii) Who is employed in the police service or as an officer or other employee of


a prison; or
(iii) Who is employed mainly in a managerial or administrative capacity; or
(iv) Who, being employed in a supervisory capacity, draws wages exceeding
one thousand six hundred rupees per mensem or exercises, either by the
nature of the duties attached to the office or by reason of the powers vested
in him, function mainly of a managerial nature.
Dismissal, etc., of an individual workman to be deemed to be an
industrial dispute
Where any employer discharges, dismisses, retrenches or otherwise
terminates the services of an individual workman, any dispute or
difference between that workman and his employer connected with, or
arising out of, such discharge, dismissal, retrenchment or termination shall
be deemed to be an industrial dispute notwithstanding that no other
workman nor any union of workmen is a party to the dispute.
CHAPTER II : AUTHORITIES UNDER THIS ACT
3.

Works Committee

(1)

In the case of any industrial establishment in which one hundred or more


workmen are employed or have been employed on any day in the
preceding twelve months, the appropriate government may by general or
special order require the employer to constitute in the prescribed manner a
Works Committee consisting of representatives of employers and
workmen engaged in the establishment, so however that the number of
representatives of workmen on the Committee shall not be less than the
number of representatives of the employer. The representatives of the
workmen shall be chosen in the prescribed manner from among the
workmen engaged in the establishment and in consultation with their trade
union, if any, registered under the Indian Trade Unions Act, 1926 (16 of
1926).

(2)

It shall be the duty of the Works Committee to promote measures for


securing and preserving amity and good relations between the employer
and workmen and, to that end, to comment upon matters of their common

interest or concern and endeavor to compose any material difference of


opinion in respect of such matters.
4.

Conciliation officers

(1)

The appropriate. Government may, by notification in the Official Gazette,


appoint such number of persons, as it thinks fit to be conciliation officers,
charged with the duty of mediating in and promoting the settlement of
industrial disputes.

(2) A conciliation officer may be appointed for a specified area or for


specified industries in a specified area or for one or more. specified
industries and either permanently or for a limited period.
5.

Boards of Conciliation

(1) The appropriate government may as occasion arises by notification in the


Official Gazette constitute a Board of Conciliation for promoting the
settlement of an industrial dispute.
(2) A Board shall consist of a Chairman and two or four other members, as the
appropriate government thinks fit.
(3) The Chairman shall be an independent person and the other members shall
be persons appointed in equal numbers to represent the parties to the
dispute and any person appointed to represent a party shall be appointed
on the recommendation of that party:
PROVIDED that, if any party fails to make a recommendation as aforesaid
within the prescribed time, the appropriate government shall appoint such
persons as it thinks fit to represent that party.
(4) A Board, having the prescribed quorum, may act notwithstanding the
absence of the Chairman or any of its members or any vacancy in its
number:
PROVIDED that, if the appropriate government notifies the Board that the
services of the Chairman or of any other member have ceased to be
available, the Board shall not act until a new Chairman or member, as the
case may be, has been appointed.
6.

Courts of Inquiry

(1) The appropriate government may, as occasion arises by notification in the


Official Gazette, constitute a Court of Inquiry for inquiring into any matter
appearing to be connected with or relevant to an industrial dispute.
(2) A court may consist of one independent person or of such number of
independent persons as the appropriate government may think fit and
where a court consists of two or more members, one of them shall be
appointed as the Chairman.
(3) A court, having the prescribed quorum, may act not with standing the
absence of the Chairman or any of its members or any vacancy in its
number:
PROVIDED that, if the appropriate government notifies the court that the
services of the Chairman have ceased to be available, the court shall not
act until a new Chairman has been appointed.
51

[7. Labour Courts

(1) The appropriate government may, by notification in the Official Gazette,


constitute one or more Labour Courts for the adjudication of industrial
disputes relating to any matter specified in the Second Schedule and for
performing such other functions as may be assigned to them under this
Act.
(2) A Labour Court shall consist of one person only to be appointed by the
appropriate government.
(3) A person shall not be, qualified for appointment as the presiding officer of
a Labour Court, unless52

[(a) He is, or has been, a judge of a High Court; or

(b)

He has, for a period of not less than three years, been a District Judge or an
Additional District Judge; or]

54

[(d) He has held any judicial office in India for not less than seven years; or

54

[(e)] He has been the presiding officer of a Labour Court constituted under
any
Provincial Act or State Act for not less than five years.

7A. Tribunals
(1) The appropriate government may, by notification in the Official Gazette,
constitute one or more Industrial Tribunals for the adjudication of

industrial disputes relating to any matter, whether specified in the Second


Schedule or the Third Schedule 55[and for performing such other functions
as may be assigned to them under this Act].
(2) A Tribunal shall consist of one person only to be appointed by the
appropriate government.
(3) A person shall not be qualified for appointment as the presiding officer of a
Tribunal unless(a)

He is, or has been, a Judge of a High Court; or


56

[(aa) He has, for a period of not less than three-years, been a District
judge or an Additional District Judge; 57[* * *]
(4) The appropriate government may, if it so thinks fit, appoint two persons as
assessors to advise the Tribunal in the proceeding before it.
7B. National Tribunals
(1)

The Central Government may, by notification in the Official Gazette,


constitute one or more National Industrial Tribunals for the adjudication of
industrial disputes which, in the opinion of the Central Government,
involve questions of national importance or are of such a nature that
industrial establishments situated in more than one State are likely to be
interested in, or affected by, such disputes.

(2) A National Tribunal shall consist of one person only to be appointed by the
Central Government.
(3) A person shall not be qualified for appointment as the presiding officer of a
National Tribunal 58[unless he is, or has been, a Judge of a High Court.
(4) The Central Government may, if it so thinks fit, appoint two persons as
assessors to advise the National Tribunal in the proceeding before it.
7C. Disqualifications for the presiding officers of Labour Courts, Tribunals
and National Tribunals
No person shall be appointed to, or continue in, the office of the presiding
officer of a Labour Court, Tribunal or National Tribunal, if(a)

He is not an independent person; or

(b) He has attained the age of sixty-five years.]

59

[8. Filling of vacancies


If, for any reason a vacancy (other than a temporary absence) occurs in the
office of the presiding officer of a Labour Court, Tribunal or National
Tribunal or in the office of the Chairman or any other member of a Board
or court, then, in the case of a National Tribunal, the Central Government
and in any other case, the appropriate government shall appoint another
person in accordance with the provisions of this Act to fill the vacancy,
and the proceeding may be continued before the Labour Court, Tribunal,
National Tribunal, Board or court, as the case may be, from the stage at
which the vacancy is filled.

9.

Finality of orders constituting Boards, etc.

(1) No order of the appropriate government or of the Central Government


appointing any person as the Chairman or any other member of a Board or
court or as the presiding officer of a Labour Court, Tribunal or National
Tribunal shall be called in question in any manner; and no act or
proceeding before any Board or court shall be called in question in any
manner on the ground merely of the existence of any vacancy in, or defect
in the constitution of, such Board or court.
(2)

No settlement arrived at in the course of a conciliation proceeding shall be


invalid by reason only of the fact that such settlement was arrived at after
the expiry of the period referred to in sub-section (6) of section 12 or subsection (5) of section 13, as the case may be.

(3) Where the report of any settlement arrived at in the course of conciliation
proceeding before a Board is signed by the Chairman and all the other
members of the Board, no such settlement shall be invalid by reason only
of the casual or unforeseen absence of any of the members (including the
Chairman) of the Board during any stage of the proceeding.]
CHAPTER III : REFERENCE OF DISPUTES TO BOARDS, COURTS
OR TRIBUNALS
10. Reference of disputes to Boards, courts or Tribunals
(1)
(a)

63

[Where the appropriate government is of opinion that any industrial


dispute exists or is apprehended, it may at any time], by order in writing-

Refer the dispute to a Board for promoting a settlement thereof; or

(b) Refer any matter appearing to be connected with or relevant to the dispute
to a court for inquiry; or
64

[(c) Refer the dispute or any matter appearing to be connected with, or


relevant to, the dispute, if it relates to any matter specified in the Second
Schedule, to a Labour Court for adjudication; or

(d) Refer the dispute or any matter appearing to be connected with, or relevant
to, the dispute, whether it relates to any matter specified in the Second
Schedule or the Third Schedule, to a Tribunal for adjudication:
PROVIDED that where the dispute relates to any matter specified in the
Third Schedule and is not likely to affect more than one hundred
workmen, the appropriate government may, if it so thinks fit, make the
reference to a Labour Court under clause (c):]
65

[PROVIDED FURTHER that] where the dispute relates to a public utility


service and a notice under section 22 has been given, the appropriate
government shall, unless it considers that the notice has been frivolously
or vexatiously given or that it would be inexpedient so to do. Make a
reference under this sub-section notwithstanding that any other
proceedings under this Act in respect of the dispute may have commenced:

66

[PROVIDED ALSO that where the dispute in relation to which the


Central Government is the appropriate government, it shall be competent
for that government to refer the dispute to a Labour Court or an Industrial
Tribunal, as the case may be, constituted by the State Government]

67

[(1A) Where the Central Government is of opinion that any industrial


dispute exists or is apprehended and the dispute involves any question of
national importance or is of such a nature that industrial establishments
situated in more than one State are likely to be interested in, or affected by,
such dispute and that the dispute should be adjudicated by a National
Tribunal, then, the Central Government may, whether or not it is the
appropriate government in relation to that dispute, at any time, by order in
writing, refer the dispute or any matter appearing to be connected with, or
relevant to, the dispute, whether it relates to any matter specified in the
Second Schedule or the Third Schedule to a National Tribunal for
adjudication.]

(2) Where the parties to an industrial dispute apply in the prescribed manner,
whether jointly or separately, for a reference of the dispute to a Board,
court, 68[Labour Court, Tribunal or National Tribunal], the appropriate

government, if satisfied that the persons applying represent the majority of


each party, shall make the reference accordingly.
29

[(2A) An order referring an industrial dispute to a Labour Court, Tribunal


or National Tribunal under this section shall specify the period within
which such Labour Court, Tribunal or National Tribunal shall submit its
award on such dispute to the appropriate government:
PROVIDED that where such industrial dispute is connected with an
individual workman, no such period shall exceed three months:
PROVIDED FURTHER that where the parties to an industrial dispute
apply in the prescribed manner, whether jointly or separately, to the
Labour Court, Tribunal or National Tribunal for extension of such period
or for any other reason, and the presiding officer of such Labour Court,
Tribunal or National Tribunal considers it necessary or expedient to extend
such period, he may for reasons to be recorded in writing, extend such
period by such further period as he may think fit:
PROVIDED ALSO that in computing any period specified in this subsection, the period, if any, for which the proceedings before the Labour
Court, Tribunal or National Tribunal had been stayed by any injunction or
order of a civil court shall be excluded:

PROVIDED ALSO that no proceedings before a Labour Court, Tribunal or


National Tribunal shall lapse merely on the ground that any period
specified under this sub-section had expired without such proceedings
being completed.]
(3) Where an industrial dispute has been referred to a Board, 68[Labour Court,
Tribunal or National Tribunal] under this section, the appropriate
Government may by order prohibit the continuance of any strike or lockout in connection with such dispute which may be in existence on the date
of the reference.
34

[4) Where in an order referring an industrial dispute to 68[a Labour Court,


Tribunal or National Tribunal] under this section or in a subsequent order,
the appropriate government has specified the points of dispute for
adjudication, 68[the Labour Court or the Tribunal or the National Tribunal,
as the case may be,] shall confine its adjudication to those points and
matters incidental thereto.

(5) Where a dispute concerning any establishment or establishments has been,


or is to be, referred to a 69[Labour Court, Tribunal or National Tribunal]

under this section and the appropriate government is of opinion, whether


on an application made to it in this behalf or otherwise, that the dispute is
of, such a nature that any other establishment, group or class of
establishments of a similar nature is likely to be interested in, or affected
by, such dispute, the appropriate government may, at the time of making
the reference or at any time thereafter but before the submission of the
award, include in that reference such establishment, group or class of
establishments, whether or not at the time of such inclusion any dispute
exists or is apprehended in that establishment, group or class of
establishments.]
70

[6) Where any reference has been made under sub-section (1A) to a National
Tribunal, then notwithstanding anything contained in this Act, no Labour
Court or Tribunal shall have jurisdiction to adjudicate upon any matter
which is under adjudication before the National Tribunal, and accordingly-

(a) If the matter under adjudication before the National Tribunal is pending in a
proceeding before a Labour Court or Tribunal, the proceeding before the
Labour Court or the Tribunal, as the case may be, insofar as it relates to
such matter, shall be deemed to have been quashed on such reference to
the National Tribunal; and
(b) It shall not be lawful for the appropriate government to refer the matter
under adjudication before the National Tribunal to any Labour Court or
Tribunal for adjudication during the pendency of the proceeding in relation
to such matter before the National Tribunal.
(7) Where any industrial dispute, in relation to which the Central Government is
not the appropriate government, is referred to a National Tribunal, then,
notwithstanding anything contained in this Act, any reference in section
15, section 17, section 19, section 33A, section 33B and section 36A to the
appropriate government in relation to such dispute shall be construed as a
reference to the Central Government but, save as aforesaid and as
otherwise expressly provided in this Act, any reference in any other
provision of this Act to the appropriate government in relation to that
dispute shall mean a reference to the State Government.]
29

[(8) No proceedings pending before a Labour Court, Tribunal or National


Tribunal in relation to an industrial dispute shall lapse merely by reason of
the death of any of the parties to the dispute being a workman, and such
Labour Court, Tribunal or National Tribunal shall complete such
proceedings and submit its award to the appropriate government.]

70

[10 A. Voluntary reference of disputes to arbitration

(1) Where any industrial dispute exists or is apprehended and the employer and
the workman agree to refer the dispute to arbitration, they may, at any time
before the dispute has been referred under section 10 to a Labour Court or
Tribunal or National Tribunal by a written agreement, refer the dispute to
arbitration and the reference shall be to such person or persons (including
the presiding officer of a Labour Court or Tribunal, or National Tribunal)
as an arbitrator or arbitrators as may be specified in the arbitration
agreement.
71

[(1A) Where an arbitration agreement provides for a reference of the


dispute to an even number of arbitrators the agreement shall provide for
the appointment of another person as umpire who shall enter upon the
reference, if the arbitrators are equally divided in their opinion, and the
award of the umpire shall prevail and shall be deemed to be the arbitration
award for the purposes of this Act.]
(2) An arbitration agreement referred to in sub-section (1) shall be in such
form and shall be signed by the parties thereto in such manner as may be
prescribed.
(3) A copy of the arbitration agreement shall be forwarded to the appropriate
government and the conciliation officer and the appropriate government
shall, within 72[one month] from the date of the receipt of such copy,
publish the same in the Official Gazette.
71

[(3A) Where an industrial dispute has been referred to arbitration and the
appropriate government is satisfied that the persons making the reference
represent the majority of each party, the appropriate government may,
within the time referred to in sub-section (3), issue a notification in such
manner as maybe prescribed; and when any such notification is issued, the
employers and workmen who are not parties to the arbitration agreement
but are concerned in the dispute, shall be given an opportunity of
presenting their case before the arbitrator or arbitrators.]

(4) The arbitrator or arbitrators shall investigate the dispute and submit to the
appropriate government the arbitration award signed by the arbitrator or all
the arbitrators, as the case may be.
71

[(4A) Where an industrial dispute has been referred to arbitration and a


notification has been issued under sub-section (3A), the appropriate
government may, by order, prohibit the continuance of any strike or lockout in connection with such dispute which maybe in existence on the date
of the reference.]

(5) Nothing in the Arbitration Act, 1940 (10 of 1940), shall apply to
arbitrations under this section.
CHAPTER IV : PROCEDURE, POWERS AND DUTIES OF
AUTHORITIES
11.

Procedure and powers of conciliation officers, Board, courts and


Tribunals and National Tribunals

73

[(1) Subject to any rules that may be made in this behalf, an arbitrator, a
Board, court, Labour Court, Tribunal or National Tribunal shall follow
such procedure as the arbitrator or other authority concerned may think
fit.]

(2) A conciliation officer or a member of a board 74[or court or the presiding


officer of a Labour Court, Tribunal or National Tribunal] may for the
purpose of inquiry into any existing or apprehended industrial dispute,
after giving reasonable notice, enter the premises occupied by any
establishment to which the dispute relates.
(3)

Every Board, court, Labour Court, Tribunal and National Tribunal] shall
have the same powers as are vested in a Civil Court under the Code of
Civil Procedure,1908 (5 or 1908), when trying a suit, in respect of the
following matters, namely:-

(a)

Enforcing the attendance of any person and examining him on oath;

(b)

Compelling the production of documents and material objects;

(c)

Issuing commissions for the examination of witnesses;

(d)

In respect of such other matters as may be prescribed, and every inquiry


or investigation by a Board, court, 76[Labour Court, Tribunal or National
Tribunal, shall be deemed to be a judicial proceeding within the meaning
of sections 193 and 228 of the Indian Penal Code (45 to 1860).

(4)

A conciliation officer 77[may enforce the attendance of any person for the
purpose of examination of such person or call for] and inspect any
document which he has ground for considering to be relevant to the
industrial dispute 78[or to be necessary for the purpose of verifying the
implementation of any award or carrying out any other duty imposed on
him under this Act, and for the aforesaid purposes, the conciliation officer
shall have the same powers as are vested in a civil court under the Code of
Civil Procedure, 1908 (5 of 1908), 77[in respect of enforcing the attendance

of any person and examining him or of compelling the production of


documents]] .
79

[(5) A court, Labour Court, Tribunal or National Tribunal may, if it so thinks


fit, appoint one or more persons having special knowledge of the matter
under consideration as an assessor or assessors to advise it in the
proceeding before it.

(6)

All conciliation officers, members of a Board or court and the presiding


officers of a Labour Court, Tribunal or National Tribunal shall be deemed
to be public servants within the meaning of section 21 of the Indian Penal
Code (45 of 1860).

(7) Subject to any rules made under this Act the costs of, and incidental to, any
proceeding before a Labour Court, Tribunal or National Tribunal shall be
in the discretion of that Labour Court, Tribunal or National Tribunal, and
the Labour Court, Tribunal or National Tribunal, as the case may be, shall
have full power to determine by and to whom and to what extent and.
subject to what conditions, if any, such costs are to be paid, and to give all
necessary directions for the purposes aforesaid and such costs may, on
application made to the appropriate government by the person entitled, be
recovered by that government in the same manner as an arrear of land
revenue.
80

[ (8) Every 81[Labour Court, Tribunal or National Tribunal] shall be deemed


to be civil court for the purposes of 82[sections 345, 346, and 348 of the
Code of Criminal Procedure, 1973 (2 of 1974).]

83

[11A. Powers of Labour Court Tribunal, and National Tribunal to give


appropriate relief in case of discharge or dismissal of workmen
Where an industrial dispute relating to the discharge or dismissal of a
workman has been referred to a Labour Court, Tribunal or National
Tribunal for adjudication and, in the course of the adjudication
proceedings, the Labour Court, Tribunal or National Tribunal, as the case
may be, is satisfied that the order of discharge or dismissal was not
justified, it may, by its award, set aside the order of discharge or dismissal
and direct reinstatement of the workman on such terms and conditions, if
any, as it thinks fit, or give such other relief to the workman including the
award of any lesser punishment in lieu of discharge or dismissal as the
circumstances of the case may require:

PROVIDED that in any proceeding under this section the Labour Court,
Tribunal or National Tribunal, as the case may be, shall rely only on the
materials on record and shall not take any fresh evidence in relation to the
matter.]
12.

Duties of conciliation officers

(1) Where any industrial dispute exists or is apprehended, the conciliation


officer may, or where the dispute relates to a public utility service and a
notice under section 22 has been given, shall, hold conciliation
proceedings in the prescribed manner.
(2)

The conciliation officer shall, for the purpose of bringing about a


settlement of the dispute, without delay, investigate the dispute and all
matters affecting the merits and the right settlement thereof and may do all
such things as he thinks fit for the purpose of inducing the parties to come
to a fair and amicable settlement of the dispute.

(3) If a settlement of the dispute or of any of the matters in dispute is arrived


at in the course of the conciliation proceedings the conciliation officer
shall send a report thereof to the appropriate government 84[or an officer
authorised in this behalf by the appropriate government] together with a
memorandum of the settlement signed by the parties to the dispute.
(4) If no such settlement is arrived at , the conciliation officer shall, as soon as
practicable after the close of the investigation, send to the appropriate
Government a full report setting forth the steps taken by him for
ascertaining the facts and circumstances relating to the dispute and for
bringing about a settlement thereof, together with a full statement of such
facts and circumstances, and the reasons on account of which, in his
opinion, a settlement could not be arrived at.
(5) If, on a consideration of the report referred to in sub-section (4), the
appropriate government is satisfied that there is a case for reference to a
Board, 85[Labour Court, Tribunal or National Tribunal], it may make such
reference. Where the appropriate government does not make such a
reference it shall record and communicate to the parties concerned its
reasons therefore.
(6) A report under this section shall be submitted within fourteen days of the
commencement of the conciliation proceedings or within such shorter
period as may be fixed by the appropriate government:

38

[PROVIDED that, 18[subject to the approval of the conciliation officer,]


the time for the submission of the report may be extended by such period
as may be agreed upon in writing by all the parties to the dispute.]
13.

Duties of Board

(1) Where a dispute has been referred to a Board under this Act, it shall be the
duty of the Board to endeavor to bring about a settlement of the same and
for this purpose the Board shall, in such manner as it thinks fit and without
delay, investigate the dispute and all matters affecting the merit and the
right settlement thereof and may do all such things as it thinks fit for the
purpose of inducing the parties to come to a fair and amicable settlement
of the dispute.
(2)

If a settlement of the dispute or of any of the matter in dispute is arrived at


in the course of the conciliation proceedings, the Board shall send a report
thereof to the appropriate government together with a memorandum of the
settlement signed by the parties to the dispute.

(3) If no such settlement is arrived at, the Board shall, as soon as practicable
after the close of the investigation, send to the appropriate government a
full report setting forth the proceedings and steps taken by the Board for
ascertaining the facts and circumstances relating to the dispute and for
bringing about a settlement thereof, together with a full statement of such
facts and circumstances, its findings thereon, the reasons on account of
which, in its opinion, a settlement could not be arrived at and its
recommendations for the determination of the dispute.
(4)

If, on the receipt of a report under sub-section (3) in respect of a dispute


relating to a public utility service, the appropriate government does not
make a reference to a 86[Labour Court, Tribunal or National Tribunal]
under section 10, it shall record and communicate to the parties concerned
its reasons therefore.

(5) The Board shall submit its report under this section within two months of
the date 87[on which the dispute was referred to it] or within such shorter
period as may be fixed by the appropriate government:
PROVIDED that the appropriate Government may from time to time
extend the time for the submission of the report by such further periods not
exceeding two months in the aggregate:

PROVIDED FURTHER that the time for the submission of the report may
be extended by such period as may be agreed on in writing by all the
parties to the dispute.
14.

Duties of courts
A court shall inquire into the matters referred to it and report thereon to the
appropriate government ordinarily within a period of six months from the
commencement of its inquiry.

(j)

"Industry" means any systematic activity carried on by co-operation


between an employer and his workmen (whether such workmen are
employed by such employer directly or by or through any agency,
including a contractor) for the production, supply or distribution of goods
or services with a view to satisfy human wants or wishes (not being wants
or wishes which are merely spiritual or religious in nature), whether or not,

(i)

Any capital has been invested for the purpose of carrying on such activity;
or

(ii)

Such activity is carried on with a motive to make any gain or profit, and
includes-

(a) Any activity of the Dock Labour Board established under section 5A of the
Dock Workers (Regulation of Employment) Act, 1948 (9 of 1949);
(b) Any activity relating to the promotion of sales or business or both carried
on by an establishment; but does not include(1) Any agricultural operation except where. such agricultural operation is
carried on in an integrated manner with any other activity (being any such
activity as is referred to in the foregoing provisions of this clause) and
such other activity is the predominant one.
(2) Hospitals or dispensaries; or
(3) Educational, scientific, research or training institutions; or
(4)

Institutions owned or managed by organisations wholly or substantially


engaged in any charitable, social or philanthropic service; or

(5) Khadi or village industries; or


(6) Any activity of the government reliable to the sovereign functions of the
government including all the activities carried on by the departments of the

Central Government dealing with defence research, atomic energy and


space; or
(7) Any domestic service; or
(8) Any activity, being a profession practised by an individual or body of
individuals, if the number of persons employed by the individuals or body
of individuals in relation to such profession is less than ten; or
(9) Any activity, being an activity carried on by a co-operative society or a club
or any other like body of individuals, if the number of persons employed
by the co-operative society, club or other like body of individuals in
relation to such activity is less than ten;
"CHAPTER II B : REFERENCE OF CERTAIN INDIVIDUAL
DISPUTES TO GRIEVANCE SETTLEMENT AUTHORITIES
9C. Setting up of Grievance Settlement Authorities and reference of
certain individual disputes to such authorities
(1) The employer in relation to every industrial establishment in which fifty or
more workmen are employed or have been employed on any day in the
preceding twelve months, shall provide for, in accordance with the rules
made in that behalf under this Act, a Grievance Settlement Authority for
the settlement of industrial disputes connected with an individual workman
employed in the establishment.
(2) Where an industrial dispute connected with an individual workman arises in
an establishment referred to in sub-section (1), a workman or any trade
union of workmen of which such workman is a member, refer, in such
manner as may be prescribed, such dispute to the Grievance Settlement
Authority provided for by the employer under that sub-section for
settlement.
(3)

The Grievance Settlement Authority referred to in sub-section (1) shall


follow such procedure and complete its proceedings within such period as
may be prescribed.

(4)

No reference shall be made under Chapter III with respect to any dispute
referred to in this section unless such dispute has been referred to the
Grievance Settlement Authority concerned and the decision of the
Grievance Settlement Authority is not acceptable to any of the parties to
the dispute."

MINIMUM WAGES ACT, 1948


The MINIMUM WAGES ACT of 1948 was to fixing the minimum rates
of wages in certain employments. Whereas it is expedient to provide for
fixing the minimum rates of wages in certain employments; it is here
enacted as follows1.

Short title and extent

(1) This Act may be called the Minimum Wages Act, 1948.
(2) It extends to the whole of India.l[***]
2.

Interpretation
In this Act, unless there is anything repugnant in the subject or context,-

[(a) "Adolescent" means a person who has completed his fourteenth years of
age but has not completed his eighteenth year;

(aa) "Adult" means a person who has completed his eighteenth years of age;]
(b) "Appropriate government" means(i)

In relation to any scheduled employment carried on by or under the


authority of the 3[Central Government or a railway administration], or in
relation to a mine, oilfield or major port, or any corporation established by
4
[a Central Act], the Central Government, and

(ii) In relation to any other scheduled employment, the State Government;


5

[(bb) "Child" means a person who has not completed his fourteenth year of
age;]

(c) "Competent authority" means the authority appointed by the appropriate


government by notification in its Official Gazette to ascertain from time to
time the cost of living index number applicable to the employees
employed in the scheduled employments specified in such notification;
(d) "Cost of living index number" in relation to employees in any scheduled
employment in respect of which minimum rates of wages have been fixed,
means the index number ascertained and declared by the competent
authority by notification in the Official Gazette to be the cost of living
index number applicable to employees in such employment;
(e) "Employer" means any person who employs, whether directly or through
another person, or whether on behalf of himself or any other person, one or
more employees in any scheduled employment in respect of which
minimum rates of wages have been fixed under this Act, and includes,
except in sub-section (3) of section 26,(i)

In a factory where there is carried on any scheduled employment in respect


of which minimum rates of wages have been fixed under this Act, any
person named under 6[clause (f) of sub-section (1) of section 7 of the
Factories Act, 1948 (63 of 1948)], as manager of the factory;

(ii) In any scheduled employment under the control of any government in India
in respect of which minimum rates of wages have been fixed under this
Act, the person or authority appointed by such government for the
supervision and control of employees or where no person or authority is so
appointed the head of the department;

(iii) In any scheduled employment under any local authority in respect of which
minimum rates of wages have been fixed under this Act, the person
appointed by such authority for the supervision and control of employees
or where no person is so appointed, the chief executive officer of the local
authority;
(iv) In any other case where there is carried on any scheduled employment in
respect of which minimum rates of wages have been fixed under this Act,
any person responsible to the owner for the supervision and control of the
employees or for the payment of wages;
(f) "Prescribed" means prescribed by rules made under this Act;
(g) "Scheduled employment" means an employment specified in the Schedule,
or any process or branch of work forming part of such employment;
(h) "Wages" means all remuneration, capable of being expressed in terms of
money, which would, if the terms of the contract of employment, express
or implied, were fulfilled, be payable to a person employed in respect of
his employment or of work done in such employment 7[and includes house
rent allowance], but does not include(i) The value of(a) Any house, accommodation, supply of light, water, medical attendance, or
(b) Any other amenity or any service excluded by general or special order of the
appropriate government;
(ii) Any contribution paid by the employer to any pension fund or provident
fund or under any scheme of social insurance;
(iii) Any traveling allowance or the value of any traveling concession;
(iv) Any sum paid to the person employed to defray special expenses entailed
on him by the nature of his employment; or
(v) Any gratuity payable on discharge;
(i)

"Employee" means any person who is employed for hire or reward to do


any work, skilled or unskilled, manual or clerical, in a scheduled
employment in respect of which minimum rates of wages have been fixed;
and includes an out-worker to whom any articles or materials are given out
by another person to be made up, cleaned, washed, altered, ornamented,

finished, repaired, adapted or otherwise processed for sale for the purposes
of the trade or business of that other person where the process is to be
carried out either in the home of the out-worker or in some other premises
not being premises under the control and management of that other person;
and also includes an employee declared to be an employee by the
appropriate government; but does not include any member of the Armed
Forces of the,8[Union].
3.

Fixing of minimum rates of wages

[(1) The appropriate government shall, in the manner hereinafter provided,-

10

[(a) Fix the minimum rates of wages payable to employees employed in an


employment specified in Part I or Part II of the Schedule and in an
employment added to either Part by notification under section 27:

(b)

Review at such intervals as it may think fit, such intervals not exceeding
five years, the minimum rates of wages so fixed and revise the minimum
rates, if necessary:

1A) Notwithstanding anything contained in sub-section (1), the appropriate


government may refrain from fixing minimum rates of wages in respect of
any scheduled employment in which there are in the whole State less than
one thousand employees engaged in such employment, but if at any time,
11
[***] the appropriate government comes to a finding after such inquiry as
it may make or cause to be made in this behalf that the number of
employees in any scheduled employment in respect of which it has
refrained from fixing minimum rates of wages has risen to one thousand or
more, it shall fix minimum rates of wages payable to employees in such
employment 12[as soon as may be after such finding.]
(2) The appropriate government may fix(a)

A minimum rate of wages for time work (hereinafter referred to as "a


minimum time rate");

(b) A minimum rate of wages for piece work (hereinafter referred to as "a
minimum piece rate");
(c)

A minimum rate of remuneration to apply in the case of employees


employed on piece work for the purpose of securing to such employees a
minimum rate of wages on a time work basis (hereinafter referred to as "a
guaranteed time rate");

(d)

A minimum rate (whether a time rate or a piece rate) to apply in


substitution for the minimum rate which would otherwise be applicable, in
respect of overtime work done by employees (hereinafter referred to as
"overtime rate").

(3) In fixing or revising minimum rates of wages under this section,(a)

Different minimum rates of wages may be fixed for-

(i)

Different scheduled employments;

(ii)

Different classes of work in the same scheduled employment;

(iii) Adults, adolescents, children and apprentices;


(iv) Different localities;

4.

Minimum rate of wages

(1) Any minimum rate of wages fixed or revised by the appropriate government
in respect of scheduled employments under section 3 may consist of(i) A basic rate of wages and a special allowance at a rate to be adjusted, at
such intervals and in such manner as the appropriate government may
direct, to accord as nearly as practicable with the variation in the cost of
living index number applicable to such workers (hereinafter referred to as
the "cost of living allowance"); or
(ii) A basic rate of wages with or without the cost of living allowance, and the
cash value of the concessions in respect of supplies of essential
commodities at concessional rates, where so authorised; or
(iii)

An all-inclusive rate allowing for the basic rate, the cost of living
allowance and the cash value of the concessions, if any.

(2) The cost of living allowance and the cash value of the concessions in
respect of supplies of essential commodities at concessional rate shall be
computed by the competent authority at such intervals and in accordance
with such directions as may be specified or given by the appropriate
government.
14

[5. Procedure for fixing and revising minimum wages

(1) In fixing minimum rates of wages in respect of any scheduled employment


for the first time under this Act or in revising minimum rates of wages so
fixed, the appropriate government shall either(a) Appoint as many committees and sub-committees as it considers necessary
to hold enquiries and advise it in respect of such fixation or revision, as the
case may be, or
(b)

By notification in the Official Gazette, publish its proposals for the


information of persons likely to be affected thereby and specify a date, not
less than two months from the date of the notification, on which the
proposals will be taken into consideration.

(2)

After considering the advice of the committee or committees appointed


under clause (a) of sub-section (1), or as the case may be, all
representations received by it before the date specified in the notification
under clause (b) of that sub-section, the appropriate government shall, by
notification in the Official Gazette fix, or, as the case may be, revise the
minimum rates of wages in respect of each scheduled employment, and
unless such notification otherwise provides, it shall come into force on the
expiry of three months from the date of its issue:
PROVIDED that where the appropriate government proposes to revise the
minimum rates of wages by the mode specified in clause (b) of sub-section
(1), the appropriate government shall consult the Advisory Board also.

6.

Advisory committees and sub-committees


Advisory Board
For the purpose of coordinating work of 15[committees and subcommittees appointed under section 5] and advising the appropriate
government generally in the matter of fixing and revising minimum rates
of wages, the appropriate government shall appoint an Advisory Board.
Central Advisory Board

(1)

For the purpose of advising the Central and State Governments in the
matters of the fixation and revision of minimum rates of wages and other
matters under this Act and for coordinating the work of the Advisory
Boards, the Central Government shall appoint a Central Advisory Board.

(2) The Central Advisory Board shall consist of persons to be nominated by the
Central Government representing employers and employees in the

scheduled employments, who shall be equal in number, and independent


persons not exceeding one-third of its total number of members; one of
such independent persons shall be appointed the Chairman of the Board by
the Central Government.
Composition of committees, etc.
Each of the committees, sub-committees 16[***] and the Advisory Board
shall consist of persons to be nominated by the appropriate government
representing employers and employees in the scheduled employments,
who shall be equal in number, and independent persons not exceeding onethird of its total number of members; one of such independent persons
shall be appointed the Chairman by the appropriate government.
Wages in kind
(1)

Minimum wages payable under this Act shall be paid in cash.

(2)

Where it has been the custom to pay wages wholly or partly in kind, the
appropriate government being of the opinion that it is necessary in the
circumstances of the case may, by notification in the Official Gazette,
authorise the payment of minimum wages either wholly or partly in kind.

(3) If appropriate government is of the opinion that provision should be made


for the supply of essential commodities at concessional rates, the
appropriate government may, by notification in the Official Gazette,
authorise the provision of such supplies at concessional rates.
(4) The cash value of wages in kind and of concessions in respect of supplies
of essential commodities at concessional rates authorised under subsections (2) and (3) shall be estimated in the prescribed manner.
12. Payment of minimum rates of wages
(1) Where in respect of any scheduled employment a notification under section
5 17[***] is in force, the employer shall pay to every employee engaged in
a scheduled employment under him wages at a rate not less than the
minimum rate of wages fixed by such notification for that class of
employees in that employment without any deductions except as may be
authorised within such time and subject to such conditions as may be
prescribed.
(2) Nothing contained in this section shall affect the provisions of the Payment
of Wages Act, 1936 (4 of 1936).

13.

Fixing hours for a normal working day, etc.

[(1) In regard to any scheduled employment minimum rates of wages in respect


of which have been fixed under this Act, the appropriate government may(a) Fix the number of hours of work which shall constitute a normal working
day, inclusive of one or more specified intervals;
(b)

Provide for a day of rest in every period of seven days which shall be
allowed to all employees or to any specified class of employees and for the
payment of remuneration in respect of such days of rest;

(c) Provide for payment for work on a day of rest at a rate not less than the
overtime rate.]
(2) The provisions of sub-section (1) shall, in relation to the following classes
of employees, apply only to such extent and subject to such conditions as
may be prescribed:(a)

Employees engaged on urgent work, or in any emergency which could not


have been foreseen or prevented;

(b) Employees engaged in work in the nature of preparatory or complementary


work which must necessarily be carried on outside the limits laid down for
the general working in the employment concerned;
(c) Employees whose employment is essentially intermittent;
(d)

Employees engaged in any work which for technical reasons has to be


completed before the duty is over;

(e) Employees engaged in a work which could not be carried on except at times
dependent on the irregular action of natural forces.
14. Overtime
(1) Where an employee, whose minimum rate of wages is fixed under this Act
by the hour, by the day or by such a longer wage-period as may be
prescribed, works on any day in excess of the number of hours constituting
a normal working day, the employer shall pay him for every hour or for
part of an hour so worked in excess at the overtime rate fixed under this
Act or under any law of the appropriate government for the time being in
force, whichever is higher.

Penalties for certain offences


Any employer who
(a) Pays to any employee less than the minimum rates of wages fixed for that
employee's class of work, or less than the amount due to him under the
provisions of this Act, or
(b) Contravenes any rule or order made under section 13 shall be punishable
with imprisonment for a term which may extend to six months, or with
fine which may extend to five hundred rupees, or with both: PROVIDED
that in imposing any fine for an offence under this section, the court shall
take into consideration the amount of any compensation already awarded
against the accused in any proceedings taken under section 20.

PAYMENT OF WAGES ACT, 1936


It is said that the payment of wages act 1936 is a gift of the royal
commission of labour to the Indian workers. The royal commission of
labour which was appointed by the government to investigate the
conditions of labour found that the employers in India were not paying
wages in time and making indiscriminate deductions from the wages
payable to the labour. The Royal commissions of labour therefore,
recommend that a law should be enacted in India which will fix the date of
payment of wages to the workmen and lay down the authorized deductions
which can be made from the wages payable to the workmen. This Act
contained the following points.
1.

Short title, extent, commencement and application


(1) This Act may be called the Payment of Wages Act, 1936.
(2) It extends to the whole of India 3[* * *]].
(3) It shall come into force on such 4[date] as the Central Government may,
by notification in the Official Gazette, appoint it.

2. Application and Definition


Application
The act is applicable to the persons employed in the factory, railway and
to such other establishment to which the State Government may by
notification extend the provision of the Act, after given three months
notice to that effect.
The term establishment includes tramway service, motor transport service
engaged in carrying passengers or goods, or transport service in dock,
wharf or jetty, mine, quarry, oil field, plantation, workshop, construction
development or maintenance of buildings, roads, bridges, canals etc.
Employers whose wages average less than 1600/- per month are covered
under the Act. The contractor engaged for fulfilling a contract with
railway administration or employed in an industrial or other
establishments are covered under the act.
DEFFINITION
In this Act, unless there is anything repugnant in the subject or context,11

[(I) "employed person" includes the legal representative of a deceased


employed person;

(ia) "Employer" includes the legal representative of a deceased employer;


13

[(vi) "wages" 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 of employment, express or implied,
were fulfilled, be payable to a person employed in respect of his
employment or of work done in such employment, and includes-

(a) Any remuneration payable under any award or settlement between the
parties or order of a court;
(b) Any remuneration to which the person employed is entitled in respect of
overtime work or holidays or any leave period;
(c) Any sum which by reason of the termination of employment of the person
employed is payable under any law, contract or instrument which provides
for the payment of such sum, whether with or without deductions, but does
not provide for the time within which the payment is to be made;

(d) Any sum to which the person employed is entitled under any scheme
framed under any law for the time being in force,
However but does not include(1) Any bonus (whether under a scheme of profit sharing or otherwise) which
does not form part of the remuneration payable under the terms of
employment or which is not payable under any award or settlement
between the parties or order of a court;
(2)

The value of any house-accommodation, or of the supply of light, water,


medical attendance or other amenity or of any service excluded from the
computation of wages by a general or special order of the State
Government;

(3) Any contribution paid by the employer to any pension or provident fund,
and the interest which may have accrued thereon;
(4) Any traveling allowance or the value of any traveling concession;
(5) Any sum paid to the employed person to defray special expenses entailed on
him by the nature of his employment; or
(6) Any gratuity payable on the termination of employment in cases other than
those specified in sub-clause
3. Responsibility for payment of wages
Every employer shall be responsible for the payment to persons employed
by him of all wages required to be paid under this Act:
PROVIDED that, in the case of persons employed (otherwise than by a
contractor)(a)
(b)

In factories, if a person has been named as the manager of the factory


In industrial or other establishments, if there is a person responsible to
the
employer for the supervision and control of the industrial or
other establishments.

(c) Upon railways (otherwise than in factories), if the employer is the railway
administration and the railway administration has nominated a person in
this behalf for the local area concerned. The person so named, the person
so responsible to the employer, or the person so nominated, as the case
may be 18[shall also be responsible] for such payment.

4.

Fixation of wage-periods

(1)

Every person responsible for the payment of wages under section 3 shall
fix periods in this Act referred to as wage-periods) in respect of which
such wages shall be payable.

(2) No wage-period shall exceed one month.


5.

Time of payment of wages

(1) The wages of every person employed upon or in(a) Any railway, factory or 12[industrial or other establishment] upon or in
which less than one thousand persons are employed, shall be paid before
the expiry of the seventh day,
(b) Any other railway, factory or industrial or other establishment shall be paid
before the expiry of the tenth day, Where the employment of any person is
terminated by or on behalf of the employer, the wages, earned by him shall
be paid before the expiry of the second working day from the day on
which his employment is terminated
6.

Wages to be paid in current coin or currency notes


All wages shall be paid in current coin or currency notes or in both:
20

[PROVIDED that the employer may, after obtaining the written


authorization of the employed person, pay him the wages either by cheque
or by crediting the wages in his bank account.]
7.

Deductions which may be made from wages


(Authorized/permissible/ valid deductions) The wages of an employed
person shall be paid to him without deductions of any kind except those
authorized by or under this Act.
The imposition of any of the following penalties, namely

(i)

The withholding of increment or promotion (including the stoppage of


increment at an efficiency bar);

(ii)

The reduction to a lower post or time scale or to a lower stage in a time


scale; or

(iii) Suspension; shall not be deemed to be a deduction from wages in any case
where the rules framed by the employer for the imposition of any such
penalty are in conformity with the requirements, if any, which may be
specified in this behalf by the State Government by notification in the
Official Gazette.]
(2)

Deductions from the wages of an employed person shall be made only in


accordance with the provisions of this Act, and may be of the following
kinds only, namely:

(a) Fines;
(b) Deductions for absence from duty;
(c) Deductions for damage to or loss of goods expressly entrusted to the
employed person for custody, or for loss of money for which he is required
to account, where such damage or loss is directly attributable to his neglect
or default;
13

(e)

[(d) deductions for house-accommodation supplied by the employer or by


government or any housing board set up under any law for the time being
in force (whether the government or the board is the employer or not) or
any other authority engaged in the business of subsidizing houseaccommodation which may be specified in this behalf by the State
Government by notification in the Official Gazette;]
Deductions for such amenities and services supplied by the employer as
the 22[***] State Government 15[or any officer specified by it in this behalf]
may, by general or special order, authorize.

11

[(f) Deductions for recovery of advances of whatever nature (including


advances for traveling allowance or conveyance allowance), and the
interest due in respect thereof, or for adjustment of over-payments of
wages;

(g)

Deductions of income-tax payable by the employed person;

(h)

Deductions required to be made by order of a court or other authority


competent to make such order;

(I)

Deductions for subscriptions to, and for repayment of advances from any
provident fund to which the Provident Funds Act, 1925 (19 of 1925),
applies or any recognized provident fund as defined in 24[section 58A of
the Indian Income Tax Act, 1922 (11 of 1922)], or any provident fund

approved in this behalf by the State Government, during the continuance


of such approval; 25[***]
6

[(j) Deductions for payments to co-operative societies approved by the State


Government 15[or any officer specified by it in this behalf] or to a scheme
of insurance maintained by the Indian Post Office, 27[and]

13

[(k) Deductions, made with the written authorization of the person employed
for payment of any premium on his life insurance policy to the Life
Insurance Corporation Act of India established under the Life Insurance
Corporation Act, 1956 (31 of 1956), or for the purchase of securities of the
Government of India or of any State Government or for being deposited in
any Post Office Savings Bank in furtherance of any savings scheme of any
such government.]]

15

[(l) Deductions, for payment of insurance premium on Fidelity Guarantee


Bonds;

(m) Deductions for recovery of losses sustained by a railway administration on


account of acceptance by the employed person of counterfeit or base coins
or mutilated or forged currency notes;
(n) Deductions for recovery of losses sustained by a railway administration on
account of the failure of the employed person to invoice, to bill, to collect
or to account for the appropriate charges due to that administration
whether in respect of fares, freight, demurrage, wharf age and carnage or
in respect of sale of food in catering establishments or in respect of sale of
commodities in grain shops or otherwise;
(o) Deductions for recovery of losses sustained by a railway administration on
account of any rebates or refunds incorrectly granted by the employed
person where such loss is directly attributable to his neglect or default;]
20

[(p) Deductions, made with the written authorization of the employed person,
for contribution to the Prime Ministers National Relief Fund or to such
other Fund as the Central Government may, by notification in the Official
Gazette, specify;]

28

[(q) Deductions for contributions to any insurance scheme framed by the


Central Government for the benefit of its employees.]

15

[(3) Not withstanding anything contained in this Act, the total amount of
deductions which may be made under sub-section (2) in any wage-period
from the wages of any employed person shall not exceed-

(I) in cases where such deductions are wholly or partly made for payments to
co-operative societies under clause (j) of sub-section (2), seventy-five per
cent of such wages, and
(ii) In any other case, fifty per cent of such wages
9. Deductions for absence from duty
This section provides that the deductions may be made on account of the
absence of an employed person from the place or places where, by the
terms of his employment, he is required to work, such absence being for
the whole or any part of the period during which he is so required to work.
However, the amount so deducted should be in proportion to the period for
which he remains absent from the work place of work.
(2)

Provisions to this section tells us that, if 10 or more employed persons


acting in concert absent themselves without due notice and without due
notice and without reasonable cause, the employer can deduct wages up to
8 days from the wages payable to the workmen.

15

[13A] Maintenance of registers and records

(1)

Every employer shall maintain such registers and records giving such
particulars of persons employed by him, the work performed by them, the
wages paid to them, the deductions made from their wages, the receipts
given by them and such other particulars and in such form as may be
prescribed.

(2)

Every register and record required to be maintained under this section


shall, for the purposes of this Act, be preserved for a period of three years
after the date of the last entry made therein].

14. Inspectors
1.

Appointment- The state Government may appoint inspectors for the


purpose of this Act.

2.

Powers

Inspectors may enter in the premises.


May examine the register and records

May visit the work spot and interrogate the persons for the

purpose.

May seize the Registers and Records.

May prosecute the Employer who is the defaulter under the


provision.

3.

Duties- implementation of the provision of this Act, by undertaking


inspection frequently and regularly.

15

[14A] Facilities to be afforded to Inspectors


Every employer shall afford an Inspector all reasonable facilities for
making any entry, inspection, supervision, examination or inquiry under
this Act.]

3.
o

Claims
Nature of claim-

1.

Claim arising out of delayed payment.

2.

Claim arising out of illegal deductions.

o
a)
b)
c)
d)
e)

Who can file the claim


Aggrieved person himself
Any legal practitioner
Any official of the registered union
Any inspector under this Act
Any other persons acting with the
permission of the authority appointed under the provision may apply to
such authority for direction.
Competent authority: For setting a claim
Appointed by the state Government by Notification in the Government
Gazette

1.

Authority Any Commissioner for workmen Compensation.

2.

Or other officer with experience as a judge of civil court or as a


stipendiary

3.

Presiding officer of any Labour Court- the Authority has Civil Court
power and any inquiry under this Section shall be deemed to be a judicial
proceeding.
Function
To hear and decide all the claims arising out of deductions from the wages
or delay in payment of the wages and including all the matters incidental
to such claim
Time Limitation
Every such application shall be presented within twelve months from the
date on which the deductions from the wages was made or from the date
on which the payment of wages to be made, as the case may be delay in
submission of claim application shall be condoned by the authority on
bonafide/ sufficient ground.
The authority shall here that applicant and the employer or other person
responsible for the payment of wages under Section 3 or give them an
opportunity of being heard and stage the further inquiry in the matter if
necessary and examine all the registers/ record for the purpose, and issue
the order for the refund of the amount of wages to the claimant, together
with the payment of compensation as the authority may think fir. If the
authority bearing an application under this section is satisfied.
That the application was malicious or vexatious, the authority may direct
that a penalty not exceed fifty rupees be paid to the employer or other
person responsible for the payment of wages.

16.

Single application in respect of claims from unpaid group


A single application may be presented under section l5 on behalf or in
respect of any number of employed persons belonging to the same unpaid
group, if they are and deductions have been made from their wages in
contravention of this Act for the same cause and during the same wage
period

17. Appeal
(1)

37

[An appeal against an order dismissing either wholly or in part an


application made under sub-section (2) of section 15, or against a direction
made under sub-section (3) or sub-section (4) of that section] may be
preferred, within thirty days of the date on which 38 [the order or direction]

was made, in a Presidency-town 39 [***] before the Court of Small Causes


and elsewhere before the District Court(a)

By the employer or other person responsible for the payment of wages


under section 3, if the total sum directed to be paid by way of wages and
compensation exceeds three hundred rupees 15 [or such direction has the
effect of imposing on the employer or the other person a financial liability
exceeding one thousand rupees], or

11

[(b) By an employed person or any legal practitioner or any official of a


registered trade union authorized in writing to act on his behalf or any
Inspector under this Act, or any other person permitted by the authority to
make an application under sub-section (2) of section 15, if the total amount
of wages claimed to have been withheld from the employed person
exceeds twenty rupees or from the unpaid group to which the employed
person belongs or belonged exceeds fifty rupees, or]

(c)

By any person directed to pay a penalty under sub-section (4) of section


15.

15

[(1A) No appeal under clause (a) of sub-section (1) shall lie unless the
memorandum of appeal is accompanied by a certificate by the authority to
the effect that the appellant has deposited the amount payable under the
direction appealed against.]

13

[(2) Save as provided in sub-section (1) any order dismissing either wholly or
in part an application made under sub-section (2) of section 15, or a
direction made under sub-section (3) or sub-section (4) of that section shall
be final.]

65

[(3) Where an employer prefers an appeal under this section the authority
against whose decision the appeal has been preferred may, and if so
directed by the court referred to in sub-section (1) shall, pending the
decision of the appeal, withhold payment of any sum in deposit with it.

(4)

The court referred to in sub-section (1) may if it thinks fit submit any
question of law for the decision of the High Court and, if it so does, shall
decide the question in conformity with such decision.]

20.

Penalty for offences under the Act

(1) Whoever being responsible for the payment of wages to an employed


person contravenes any of the provisions of any of the following sections,
namely, 41[section 5 except sub-section (4) thereof, section 7, section 8

except sub-section (8) thereof, section 9, section 10 except sub-section (2)


thereof, and section 11 to 13], both inclusive, shall be punishable with fine
42
[which shall not be less than two hundred rupees but which may extend
to one thousand rupees.]
(2) Whoever contravenes the provisions of section 4, 43[sub-section (4) of
section 5, section 6, sub-section (8) of section 8, sub-section (2) of section
10] or section 25 shall be punishable with fine which may extend to 44[five
hundred rupees.]
15

[(3) whoever being required under this Act to maintain any records or
registers or to furnish any information or return-

(a) Fails to maintain such register or record; or


(b)

Willfully refuses or without lawful excuse neglects to furnish such


information or return; or

(c) Willfully furnishes or causes to be furnished any information or return


which he knows to be false; or
(d)

Refuses to answer or willfully gives a false answer to any question


necessary for obtaining any information required to be furnished under this
Act,
Shall, for each such offence, be punishable with fine 45 [which shall not be
less than two hundred rupees but which may extend to one thousand
rupees].

(4) Whoever(a)

Willfully obstructs an Inspector in the discharge of his duties under this


Act; or

(b) Refuses or willfully neglects to afford an Inspector any reasonable facility


for making any entry, inspection, examination, supervision, or inquiry
authorized by or under this Act in relation to any railway, factory or
12
[industrial or other establishment]; or
(c) Willfully refuses to produce on the demand of an Inspector any register or
other document kept in pursuance of this Act; or

(d) Prevents or attempts to prevent or does anything which he has any reason to
believe is likely to prevent any person from appearing before or being
examined by an Inspector acting in pursuance of his duties under this Act;
Shall be punishable with fine 45[which shall not be less than two hundred
rupees but which may extend to one thousand rupees.]
22. Bar of suits
No Court shall entertain any suit for the recovery of wages or of any
deduction from wages in so far as the sum so claimed(a)

Forms the subject of an application under section 15 which has been


presented by the plaintiff and which is pending before the authority
appointed under that section or of an appeal under section 17; or

(b)

Has formed the subject of a direction under section 15 in favour of the


plaintiff; or

(c) Has been adjudged, in any proceeding under section 15, not to be owed to
the plaintiff; or
(d) Could have been recovered by an application under section 15.
15

[22A] Protection of action taken in good faith


No suit, prosecution or other legal proceeding shall lie against the
government or any officer of the government for anything which is in good
faith done or intended to be done under this Act.]

23. Contracting out


Any contract or agreement, whether made before or after the
commencement of this Act, whereby an employed person relinquishes any
right conferred by this Act shall be null and void in so far as it purports to
deprive him of such right.

The Shops and Commercial Establishments Act, 1958[ACT NO. 15


OF 1958]
(Received the assent of the President on the 25 th. April, 1958 and was
published in the Government Gazette on the first May, 1958 for general
information)
An Act to provide for the regulation of conditions of work and
employment in Shops and commercial establishments.
Be it enacted by the Legislature of the State of and Commercial
Establishments Act, 1958.
1. Short Title, extent, commencement and application. -- (
(1) This Act may be called the Shops and Commercial Establishments Act,
1958
(2)
It extends state wise.

(3) It shall come into force on such date as Government may, by notification in
the
Official Gazette, appoint in this behalf.
(4) It shall apply in the first instance to the areas specified in the Schedule, but
the Government may by notification direct that it shall also apply to such
other area on such date as may be specified in the notification.
2. Definitions. -- (1) In this Act, unless the context otherwise requires;
(i) Closed means not open for the service of any customer or for any other
purpose whatsoever relating to business;
(ii) Closed day means the day of the week on which a shop or commercial
establishment remains closed;
(iii) Closing hours means the hour at which a shop or commercial
establishment closed;
(iv) Commercial establishment means any premises wherein any business,
trade or profession is carried on for profit and includes journalistic or
printing establishment and premises in which business of banking,
insurance, stocks and shares, brokerage and produce exchange is carried
on or which is used as hotel, restaurant, boarding or eating house, theatre,
cinema or other place of public entertainment or any other place which the
Government may declare, by notification in the official Gazette, to be a
commercial establishment for the purposes of this Act;
(v) Day means the period of twenty-four hours beginning at mid night;
Provided that in the case of any employee whose hours of work extend
beyond mid night, day means the period of twenty hours beginning from
the time when such employment commences.
(vi) Employee means a person wholly or principally employed in, or in
connection with, an establishment, whether working on permanent,
periodical, contract or piece-rate wages or on commission basis even
though he receives no reward for his labour, but does not include a
member of employees family;
(vii) Employer a person having charge of or owning or having ultimate
control over the affairs of an establishment and include members of the
family of an employer, a manager, agent or other person acting in the
general management or control of the establishment;
(viii) Establishment means a shop or a commercial establishment;
(ix) Factory has the meaning assigned to it in the Factories Act, 1948;
(x) Family in relation to an employer, means -(i) Spouse
(ii) Children and step children; and
(iii) Parents, sisters and brothers if residing with and wholly dependent upon
him;
(xi) Festival means any festival which Government may, by notification
declare to be a festival for the purposes of this Act;
(xii) Government means the Government;

(xiii) Hours of work, or working hours means the time during which the
persons employed are at the disposal of the employer exclusive of any
interval for rest and meals;
(xiv) Inspector means an Inspector appointed under this Act;
(xv) Leave means leave provided for in section 14;
(xvi) Manager in relation to an establishment where five or more persons are
employed on an establishment whose owner does not ordinarily carry on
the business personally, means a person declared as such by the employer
in the prescribed manner;
(xvii) Night means a period of at least twelve consecutive hours which shall
include the interval between 8 p.m. and 6 a.m.;
(xviii) Opened in relation to a shop or commercial establishment whose
entrance is the only entrance to the residence, means, opened for the
service of any customer or for any business connected with the
establishment;
(xix) Opening hour means the hour at which an establishment opens;
(xx) Prescribed means prescribed by rules made under this Act;
(xxi) Prescribed authority means the authority prescribed under the rules
made under this Act;
(xxii) Retail trade or business includes the business of a barber or hair
dresser, the sale of refreshments or intoxicating liquors, and retain sales by
auction;
(xxiii) Register of establishments means a register maintained for the
registration of establishments under this Act;
(xxiv) Registration certificate means a certificate showing the registration of
an establishment;
(xxv) Shop means any premises where any trade or business is carried on or
where services are rendered to customers and includes offices, storerooms, godowns, sale-depots or ware-houses, whether in the same
premises or otherwise, used in connection with such trade or business but
does not include a commercial establishment or a shop attached to a
factory where the persons employed in the shop are allowed the benefits
provided for workers under the Factories Act, 1948 LXIII of 1948):
(xxvi)Spread over means a period between the commencement and
termination of work of an employee on any day;
(xxvii) Wages shall have the meaning assigned to it in the Payment of Wages
Act, 1936 (IV of 1936);
(xxviii) Wage period means the period after which the wages of an employed
person shall be paid;
(xxix) Week means the period between mid-night on Saturday and mid-night
on the following Saturday;
(xxx) Young person means a person who has attained the age of fourteen but
has not attained the age of eighteen years; and

(xxxi) Year means a year commencing on the first day of April.


(2)
For the purposes of this Act, any employment in the service of the
employer of an establishment upon any work, whether within the
establishment or outside it, which relates to, or is connected with or is
ancillary to the business carried on at the establishment shall be deemed to
be employment about the business of the establishment.
SECTION 3
3. Act not applicable to certain establishment and persons. -- Nothing in this
Act shall apply to.
(a) Offices of or under the Central or State Governments, (except commercial
undertakings), the Reserve Bank of India, any railway administration or
any local authority;
(b) Any railway service, air service, water transport service, tramway, postal,
telegraph or telephone service, any system of public conservancy or
sanitation or any industry business or undertaking which supplies power,
light or water to the public;
(c) Railway dining cars;
(d) Offices of lawyers;
(e) Any person employed about the business of any establishment mentioned in
paragraphs (a) to (d) aforesaid;
(f)
Any person whose hours of employment are regulated by or under the
Factories Act, 1947, except the provisions of sub-sections (3), (4), and (5)
of section 7 of this Act in so far as they relate to employment in a factory;
(g) Any person whose work is inherently intermittent;
(h) Establishments of stamp vendors and petition writers.
SECTION 4
4. Provisions of section 9 and sub-section (1) of section 10 not applicable to
certain establishments.
(1) Nothing in section 9 and sub-section (1) of section 10 shall apply to-(a) Clubs, hotels, boarding houses, stalls and refreshment rooms at the railway
stations;
(b) Shops of barbers and hair dressers;
(c) Establishments dealing exclusively in meat, fish, confectionery, poultry,
eggs, dairy produce [except ghee], bread sweets, chocolates, ice, icecream, cooked food; fresh fruits, flowers or vegetables;
(d) Shops dealing exclusively in medicines or medical or surgical requisites or
appliances and establishments for the treatment or care of the sick, infirm,
destitute or mentally unfit.
(e) Shops dealing in articles required for funerals, burials, or cremations.
(f) Shops dealing exclusively in pans (betel leaves), biris or cigarettes of liquid
refreshment sold in retail for consumption on the premises.

(g) Shops dealing exclusively in newspapers or periodicals, editing and


dispatching sections of the newspaper office and office of the news
agencies;
(h) Places of public entertainment except cinema houses;
(i) Establishment for the retail sale of petrol and petroleum products used for
transport;
(j)
Shops in regimental institutes, garrison shops and troop canteens in
cantonments;
(k) Tanneries;
(l) Establishments engaged in retail trade carried on at an exhibition or show, if
such retail trade is subsidiary or ancillary only to the main purpose of the
exhibition or show;
(m) Oil mills not registered under the Factories Act, 1948;
(n) Brick and lime kilns;
(o)
Commercial establishments engaged in the manufacture of bronze and
brass utensils so far as it is confined to the process of melting in furnace;
(p) Saltpeter refineries;
(q) Establishments of commercial; colleges of short hand or type writing and
other educational academies;
(r) Booking offices of the passenger and goods transport companies;
(s)
Establishments dealing exclusively in green and dry fodder and chaff
cutting; and
(t) Cycle stands and cycle repair shops;
(2) Nothing in sub-section (1) of section 10 shall apply to: -(i) Establishments of Cinema houses.
(ii) Establishments dealing in hides and skins;
(iii) Ice factories;
(iv) Establishments engaged exclusively in repairs of cycles or Motor vehicles
or the service of motor vehicles, not being an establishment dealing in
cycle or motor vehicle or exclusively in spare parts thereof;
(v) Establishments dealing exclusively in providing on hire tents, Chhauldaries
and other articles such as crockery, furniture, loud speakers, gas lights and
fans required for ceremonial purposes and
(vi) Establishments, dealing exclusively in retail sale of phulians, murmura,
sugar coated gram, reories or other similar commodities.
5.
Power of Government to extend the provision of Act. (1) Not
withstanding anything contained in section 3 or section 4, Government
may by notification declare that any class of establishments or persons
specified therein shall not be exempt from the operation of such provisions
of this Act as may be specified in the notification and that provisions of
this Act specified such notification shall apply to such class of
establishments or persons as the case may be.

(2)

Every notification made under sub-section (1) shall as soon as possible


after it is made, be laid before the both Houses of the State Legislature.
6. Conditions of employments for young persons. -- (1) The total number of
hours worked by a young person employed about the business of an
establishment, exclusive of intervals for meals and rest, shall not exceed
thirty hours in any one week or five hours in any one day.
(2) A young person employed about the business of an establishment shall not
be employed continuously for more than three hours without an interval of
at least half an hour for meal or rest.
(3) Government may prescribe further conditions in respect of the employment
of young persons employed about the business of establishments or any
class of them, including if it thinks fit, conditions with respect to the daily
period of employment of those persons, and no such person shall be
employed otherwise than in accordance with those conditions.
(4)
In the case of any contravention of, or failure to comply with the
provisions of this section, the employer shall, be liable, on conviction, to a
fine which shall not be less than fifty rupees but which may extend to two
hundred rupees.
(5) Where, in proceedings for an offence under this section, the person in
respect of whom the offence was committed was a young person, and he
appears to the court to have been at the date of the commission of the
offence a young person he shall, for the purposes of this Act, be presumed
at that date to have been a young person unless the contrary is proved.
7.
Hours of employment. (1) Subject to the provisions of this Act, no
person shall be employed about the business of an establishment for more
than forty-eight hours in any one week and nice hours in any one-day.
(1)
On occasion of seasonal or exceptional pressure of work a person
employed in an establishment may be employed about the business of the
establishment in excess of the working hour specified in sub-section (1);
(2) The period of work of an employee in an establishment shall be so fixed
that, inclusive of his interval for rest, the spread over shall not be more
than ten hours in a day.
8. Opening and closing hours. -- Government shall by notification fix the
opening and closing hours of all classes of establishments; and different
opening and closing hours may be fixed for different classes of
establishments and for different areas; Provided that Government may
allow an establishment attached to a factory to observe such opening and
closing hours as the Government may direct.
9. Close day. -- (1) Save as otherwise provided in this Act every establishment
shall remain closed on every Sunday;
Provided that, in the case of an establishment attached to a factory the
employer may substitute the close day of such establishment so as to
corresponds to the substituted close day of the factory in the same manger

and subject to the same conditions as are laid down in this behalf in the
Factories Act, 1948;
10. Employees off day in a week -- No employees shall be allowed or
required to work(a) On a close day, in any establishment which is required to observe a close
day; and
(b) On one day in a week, in any other establishment; and
(c) Before the opening hour of the establishment and after closing hour of the
establishment;
Provided that a watchman may be allowed or required to work on an off
day under this section if he is allowed another off day in the week.
12. Holidays. Every employee in an establishment shall be allowed
(a) A holiday with wages on the Independence day, Republic day, and Mahatma
Gandhis birthday; and
(b)
Three other holidays with wages in a year in connection with such
festivals as Government may declare from time to time by notification.
Provided that an employee required to work on any such holiday should
be paid remuneration at double the rate of his normal wages calculated by
the hour.
13. Registration of establishments. (1) Within the period specified, in subsection
(3), The employer of every establishment shall send to the prescribed
authorityconcerned a statement in the prescribed form containing: (a) The name of the employer and the manager, if any;
(b) Postal address of the establishment;
(c) The name, if any; of the establishment;
(d) Number of persons employed;
(e) Such other particulars as may be prescribed.
(2)(i) On receipt of the statement, the authority shall on being satisfied about the
correctness of the statement, register the establishment in the register of
establishments in such a manner as may be prescribed and shall issue in a
prescribed form a registration certificate to the employer. The registration
certificate shall on demand by the inspector, be shown to him by the
employer.
(ii) The registration certificate shall be renewable by the 31st. March, every
year. Thirty days grace time shall, however, be allowed for the renewal of
the certificate.
(3) Within thirty days from the date mentioned in column 2 below in respect of
the establishment in column 1 the statement shall be sent to the prescribed
authority under sub-section (1).
Establishment - Date from which the period of 30 days is to commence

(i)

Establishments existing in areas to which The date on which this Act this
Act applies or where this Act is extended. comes into force or the date on
which the Act is extended, as the case may be.
(ii) New establishment in such the date of which the establishment commences
its work.
(4) It shall be the duty of the employer to notify to the prescribed authority in
the prescribed form any change in respect of any information contained in
his statement under this section within seven days after the change has
taken place. The authority shall on receiving such notice and on being
satisfied about its correctness make the change in the register of
establishments in accordance with such notice and shall amend the
registration certificate, if necessar0
(5) The employer shall, within ten days of his closing the establishment, notify
to the prescribed authority in writing accordingly. The authority shall, on
receiving the information and being satisfied about the correctness remove
the name of such establishment from the register of establishments and
cancel the registration certificate.
14.
Leave. -- (a) every employee who has been in employment for not less
than twenty days in a year shall be entitled to one days earned leave for
every such twenty days:
Provided that a young person shall be entitled to one days earned leave
for every fifteen days of employment during the year.
(b) If an employee is discharged or dismissed from or leaves service during the
course of the year he shall be entitled to leave with wages or wage in lieu
of un-availed leave at the rates laid down in clause (a).
(c) In calculating leave under this section, fraction of half a day or more shall
be treated as one days leave and fraction of less then half a day shall be
ignored.
(d)
If an employee does not in any one year take the whole of the leave
allowed to him under clause (a), any leave not taken by him shall be added
to the leave to be allowed to him in the succeeding year:
Provided that
(i)
Subject to any specific agreement between the employer and the
employee, the total number of days of leave that may be carried forward to
a succeeding year shall not exceed forty in the case of a young person or
thirty in any other case;
(ii) The provisions of this section shall not operate to the prejudice of any
rights to which an employee may be entitled under any other law or under
the terms of any award, agreement or contract of service;
(iii) Where such award, agreement or contract of service provides for a longer
leave with wages or weekly holidays than those provided under this
section the employee shall be entitled to only such longer leave or weekly
holidays as the case may be.

(2)

Leave period in clause (a) of sub-section (1) shall, when applied for be
granted except for a valid reason to be communicated in writing by the
employer to the employee within fifteen days of the application:
Provided that the leave so refused shall, if applied for again, be allowed
during the year.
(3)(a) For the purpose of computing the period during which an employee has
been in employment within the meaning of sub-section (1) (a), the period
during which he was on leave under this section and the off days in a week
referred to in section 11, shall be included.
(b) The un-availed leave of an employee shall not be taken into consideration in
computing the period of any notice required to be given before discharge,
removal or dismissal.
(4) Notwithstanding anything contained in the foregoing sub-section every
employee in an establishment shall be allowed with wages seven days
casual leave and seven days sick leave in a year.
15. Wages for close days and during leave period. (1) Any person employed
in or about an establishment for a period of fifteen days, or more shall
receive, for every off day in a week referred to in section 11, wages at the
rate of not less than the average daily wages earned by him for the days on
which he worked during the week immediately preceding every such off
day.
(2) For the leave allowed to him under section 14, an employee shall be paid
at the rate of equal to the daily average of his total full time earnings for
the days on which he worked during the month immediately preceding his
leave exclusive of any overtime and bonus but inclusive of dearness
allowance and the cash equivalent of the advantage accruing through the
Confessional sale to the employee of food grains and other articles.
(3) An employee who has been allowed leave for not less than five days in the
case of a young person and four days in any other case shall, on demand,
before his leave begins, be paid the wages due for the period of leave
allowed.
16. Wage period. -- (1) Every person responsible for the payment of wages to an
employee shall fix a period in respect of which such wages shall be
payable.
(2) No wage period shall exceed one month.
(3) The wages of every person employed shall be paid before the expiry of the
seventh day from the date on which the wages become due.
(4) Where the employment of any person is terminated by or on behalf of the
employer the wages earned buy him and the remuneration in lieu of unavailed period of due leave shall be paid before the expiry of the second
working day after such termination and where an employee quits his
employment, on or before the next pay day:

17.

18.

(2)

19.

(2)
(a)
(b)
(c)

(3)
20.

(2)

Provided that no claim under this section shall be entertained unless it is


preferred within six months from the date of its accruing except under
special circumstances at the discretion of the Chief Inspector of Shops and
Commercial Establishments Punjab.
Deduction from wages. -- The wages of an employee shall be paid to him
without deductions of any kind except those authorized by or under the
Payment of Wages Act, 1936, in so far as such deductions are applicable to
the employee and in such manner, to such extent and to subject to such
conditions as are specified in that Act.
Realisations of compensation. -- (1) In case of contravention of the
provisions of section 16, if a judicial Magistrate is satisfied that the
employee has not been paid his due wages, he shall direct the employer to
pay the wages along with compensation not exceeding eight times the
amount of wages withheld.
The amount of wages withheld and compensation payable under this
section shall for the purposes of its recovery, be deemed to be a fine
imposed under this Act in addition to the penalty imposed under section 26
and shall be realised as such.
Enforcement and inspection. -- (1) Government may, by notification
appoint such persons or such class of persons as it thinks fir to be
inspecting officers for the purposes of this Act within such local limits as it
may assign to them, respectively.
Subject to any rules made by Government in this behalf an inspecting
officer may, within the local limits for which he is appointed
Enter at all reasonable times and with such assistants, if any being persons
in the service of Government or of any local authority as he thinks fit, any
place which is or which he has reason to believe to be an establishment;
Make such examination of the premises and of any prescribed registers,
records and notices and take on the spot or otherwise evidence of any
persons as he may deem necessary for carrying out purposes of this Act;
Exercise such other powers as may be necessary for carrying out the
purposes of this Act:
Provided that no one shall be required under this section to answer any
question or give any evidence tending to incriminate him.
Ever inspecting officer appointed under this section shall be deemed to be a
public servant within the meaning of section 21 of the Indian Penal Code.
Record. (1) The employer of every establishment shall, in the
prescribed form and manner keep exhibited in the establishment a notice
setting forth the close day, the working hours and the period of interval of
employed persons, if any, and such other particulars as may be prescribed.
The employer of any establishment, about the business of which persons are
employed, shall in the prescribed form and manner keep a record of
working hours, rest intervals and the amount of leave taken by every

person employed about the business of an establishment and particulars of


all overtime employment shall be separately entered in the record.
(2A) The employer of every establishment, about the business of which persons
are employed, shall mart the attendance of every employees in the register
maintained for the purpose within one hour of the start of duty and in the
case of overtime every entry regarding the commencement or closure of
overtime shall respectively be made before or after such commencement
of closure.
(3)
The employer of every establishment shall keep a photograph of each
employee who has completed three months continuous service in the
establishment:
Provided that where such employee fails to supply such photograph to the
employer within fifteen days of the completion of such service, his failure
so to so shall be recorded by the employer under the signature of the
employee.
(4)
The employer of every establishment shall for the purposes of this Act
maintain such other records and registers and display such other notices as
may be prescribed. Act I of 1964.
(5) In the case of any contravention of the foregoing provisions of this section,
the employer of an establishment shall be liable, on conviction to a fine
not exceeding five rupees for everyday on which the contravention occurs
or continues.
(6) If any person with intent to deceive makes, or causes or allows to be made,
in any such record, register or notice as aforesaid an entry which is to his
knowledge false in any material particular or willfully omits or causes or
allows to be omitted from any such record, register or notice an entry
required to be made therein, he shall be liable, on conviction, to
imprisonment for a term not exceeding three months or to a fine which
shall not be less than twenty five rupees and may extend to two hundred
rupees or both.
21. Inspection of registers and calling for information. -- (1) It shall be the
duty of every employer of an establishment to make available for
inspection of such officers as may be prescribed, all accounts or other
records required to be kept for the purposes of this Act; and to give to such
officer any other information in connection therewith as may be required.
(2) Whoever contravenes the provisions of sub-section (1) or willfully obstructs
the inspecting authority in the exercise of the power under this Act or
conceals or prevents any employee in an establishment from appearing
before or being examined by the authority shall be liable, on conviction to
a fine which shall not be less than twenty five rupees and may extend to
two hundred rupees.

22. Notice of removal. -- (1) No employee shall be removed from service


unless and until one months previous notice or pay in lieu thereof has
been given to him:
Provided that
(a) No employee shall be entitled to the notice or pay in lieu thereof if he is
removed on account of misconduct established on record;
(b) No employee shall be entitled to one months notice or notice pay unless
and until he has been in the service of the employee continuously for a
period of three months.
(2) In any case instituted for a contravention of the provisions of sub-section
(1), if a Judicial Magistrate is satisfied that an employee has been removed
without reasonable cause, the Judicial Magistrate shall, for reason to be
recorded in writing, award compensation to the employee equivalent to
two months salary;
Provided that no such claim shall be entertained unless it is preferred by
the employee within six months from the date of his removal.
(3) The amount payable as compensation under this section shall be in addition
to, and recoverable and fine payable under section 26.
(4) No person who has been awarded compensation under this section shall be
entitled to bring a civil suit in respect of the same claim.
23. Notice by employee. -- (1) No employee, who has been in the service of the
employer continuously for a period of three months shall terminate his
employment unless he has given to his employer seven days previous
notice or pay in lieu thereof.
(2)
Where an employee contravenes the provisions of sub-section (1) his
employer may forfeit his unpaid wages for a period not exceeding seven
days.
24. [Omitted vide Act, 1 of 1964]
25. Provisions as to trading elsewhere than in establishment. -- Save as
otherwise provided by any law for the time being in force, it shall not be
lawful in any locality to carry on in any place not being an establishment,
retail trade or business of any class at any time if it is unlawful in that
locality to keep an establishment open for the purpose of such retail trade
or business, and if any person carried on any trade or business in
contravention of this section, this Act shall apply as if he were the
employer of the establishment which was being kept open in contravention
of the Act.
26.
Penalties. -- Subject to the other provisions of this Act whoever
contravenes any of the provisions of this Act or the rules made there under
and no penalty has been provided for such contravention in this Act, shall
be liable, on conviction, to a fine, not exceeding one hundred rupees for
the first offence, and three hundred rupees for every subsequent office:

27.

28.

29.
30.

(2)
(3)

31.

32.

Provided that the fine in respect of every subsequent offence within the
same year shall not be less than one hundred rupee sin any case.
Protection of officers and their agents from personal liability. -- No suit,
prosecution or other legal proceeding shall lie against any public servant or
any other person in the service of the Central or State Government, acting
under direction of any such public servant, for anything in good faith done
or intended to be done in pursuance of the provisions of this Act or of any
rule made there under.
Power to grant exemptions. -- Government or any officer empowered by
the Government in this behalf may, by notification in the official Gazette,
exempt from the operation of all or any of the provisions of this Act for
any period it considers desirable any establishment or any class thereof or
any employer or employees or class of employers or employees to whom
this Act applies on such conditions as it may think fit.
Prohibition of employment of children. -- No child who has not completed
the age of fourteen years shall be employed in any establishment.
Condition of Employment of women. -- (1) No woman shall be required or
allowed to work whether as an employee or otherwise in any establishment
during night: Provided that nothing in this sub-section shall apply to an
establishment which is engaged in the treatment or care of the sick, the
infirm, the destitute or the mentally unfit.
No employee of any establishment shall knowingly employ a woman and
no woman shall engage in employment in any establishment during six
weeks following the day of her confinement or miscarriage.
Government may prescribe further conditions in respect of employment of
women employed about the business of establishment or any class of
them, including if it thinks fit, conditions with respect to the daily period
of employment, leave, and other matters and no woman shall be employed
otherwise than in accordance with these conditions.
Maternity benefit. -- (1) Every woman employed in an establishment who
has been continuously employed in that establishment or in establishments
belonging to the employer of that establishment for a period of not less
than six months preceding the date of her delivery shall be entitled to
receive, and the employer shall be liable to make to her, a payment of
maternity benefit which shall be prescribed by the Government for
everyday during the six weeks immediately preceding and including the
day of her delivery and for each days of six weeks following her delivery:
Provided that no such payment shall be made for any day on which she
attends work and receives payment thereof during the six weeks preceding
her delivery.
Bar of Legal Practitioners in certain proceedings. Notwithstanding
anything contained in the law relating to legal parishioners for the time
being in force, no legal practitioner shall be permitted to appear, plead or

act for the employer or the employee in any proceedings, before a court
between an employers or the employee, arising out of the contravention of
any of the provisions of this Act.
33. Saving of certain rights and privileges. Nothing in this Act shall affect
any rights or privileges to which an employee in any establishment is
entitled on the date this Act comes into force under any other law, contract,
custom or usage applicable to such establishment or any award, settlement
or agreement binding on the employer and the employee in such
establishment if such, rights or privileges are more favorable to him than
those to which he could be entitled under this Act.
33A. Cognizance of offences. -- No court shall take cognizance of any offence
punishable under this Act or any rule made there under or of the abetment
of or attempt to commit, such offence, save on a complaint made by the
employee concerned or by such officer, save on a complaint made by the
employee concerned or by such officer as may be authorized in writing in
this behalf by the Government.
34. Power to make Rules. -- (1) Government may make rules for the purpose
of giving effect to the provisions of this Act.
Act 1 of 1964
(2) In particular, and without prejudice to the generality of the foregoing
power, such rules may provide for all or any of the following matters,
namely: -(a) The manner and form in which the registers and notice shall be kept;
(b)
The officers who may be empowered to inspect registers and call for
information as required by this Act;
(c) The agency by which and the manner in which the prosecution shall be
instituted;
(d) The form of submitting a statement, the particulars under sub-section (1)
of section
13. The manner in which registration of establishment is to be made and the
form of registration certificate under sub-section (2) and the form of
notifying a change under sub-section (4) of section 13;
(e) The authority to and the manner in which any notice required by this Act
shall be given;
(f) The conditions subject to which any exemption under this Act may be
granted;
(g) The manner in which the employer of an establishment shall keep exhibited
in the premises a close day, closing and opening hours and such other
particulars as may be prescribed; and
(h) To safeguard health, safety and welfare of the employees while on duty;
and
(3) All rules made under this section shall, as soon as possible after they are
made, be laid before the State Legislature.

35. Repeal. -- The Trade Employees Act, 1940, is hereby repealed:


Provided that
(a) Every appointment order, rule, bye-law, regulation, notification or notice
made, issued or given under the provisions of the Act so repealed shall in
so far as it is not inconsistent with the provisions of this Act, be deemed to
have been made, issued or given under the provisions of this Act, unless
and until superseded by any other appointment order, rule, bye-law,
regulation, notification or notice made issued or given under this Act;
(b) Any proceeding relating to the trial of an offence punishable under the
provisions of the Act so repealed, shall be continued and completed as if
the said Act has not been repealed but has continued in operation, and any
penalty imposed in such proceeding shall be recovered under this Act as
repealed.

ROUND 1 : EXPLAIN THE FOLLOWING ROUND


1 what is the set up for enforcement of this Act?
Answer: The Act is enforced through the Chief Inspector of Shops (CIS) and
various inspectors under the Act, who are posted in nine districts of the
capital who function under the supervision and control of Dy./ Asstt.

Labour Commissioners of the concerned district. Chief Inspector functions


under the supervision of Dy. Labour Commissioners (CIS) who in turn
functions under
2 what is the period or interval for rest and meals?
Answer: No period of continuous work shall exceed five hours, which is to be
followed by an interval for rest and meals of at least half an hour for an
adult person. (Section .10)
3 what are the hours of work of young persons employed in Shops and
Establishments?
Answer: Not for more than 6 hours a day and not to be employed continuously
for more than 3 hours without an interval of at least half an hour.
4 what are the provisions regarding exemptions under this Act?
Answer: Section 4 of the Act provides for grant of exemptions from certain
provisions of the Act. (e.g. Section 14, 15 & 16) with the approval of Lt.
Governor subject to conditions as may be prescribed.

5 what are the records and registers etc to be maintained by every Shops or
Establishments?
Answer: The occupier of every Shops or Establishments shall for the purpose
of this Act maintain such other records and registers and display such other
notices as may be prescribed. (Section 33)

6 what are the time and conditions for payment of wages to employers?
Every employer or his agent or the manager of any establishment shall fix
periods of wages payable to the employees, which shall not exceed one
month.
The wages of a wage period must be paid before the expiry of seventh day
of the last day of the wage period.
7 What is the provision of availing privilege leave ?
Answer: An employee has to apply in writing to the employer, indicating in
advance, the date from which he would like to avail privilege leave 15
days in advance.
8. AWARD is defined as
ANSWER According to section 2(b)
award means an interim or final decision of any industrial tribunal of dispute
or any question there to by any labour courts, industrial tribunal or
national tribunal. It also arbitration award made under section 10 (a) Of
Industrial Dispute Act

9. What is the exact definition of industry?


ANSWER According to section 2(j) of the Act industry means, any

business,

trade, undertaking, manufacture or calling, and any the latter engaged in


any calling, service, employment, handicraft or industrial occupation or
avocation of workmen.

10.. How does term Lay Off is defined under Industrial Dispute Act?
ANSWER: According to section 2(kkk) of industrial dispute act

lay off

means the failure, refusal, or inability of an employer on the account of


shortage of coal, power or raw materials or the accumulation of stocks or
the break-down of machinery or natural calamity or 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 been
retrenched
11.. How does term retrenchment is defined under Industrial Dispute Act?
ANSWER: According to section 2 (OO) of industrial dispute "retrenchments"
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
12)

What is meant by 'apprenticeship training?

Answer:- According to section 8(aaa) "apprenticeship training" means a course


of training in any industry or establishment undergone in pursuance of a
contract of apprenticeship and under prescribed terms and conditions
which may be different for different categories of apprentices

What is meant by 'graduate or technician apprentice?


Answer:- According to section 5(j) "graduate or technician apprentice" means
an apprentice who holds, or is undergoing training in order that he may
hold a degree or diploma in engineering or technology or equivalent
qualification granted by any institution recognised by the government and
undergoes apprenticeship training in any such subject field in engineering
or technology as may be prescribed

13)

What is meant by 'technician (vocational) apprentice?

Answer:- According to section 10 (p) "technician (vocational) apprentice"


means an apprentice who holds or is undergoing training in order that he
may hold a certificate in vocational course involving two years of study
after the completion of the secondary stage of school education recognised
by the All-India Council and undergoes apprenticeship training in any
vocational course as may be prescribed;]
15. Who is occupier of the company?
Answer: "Occupier" of a factory means the person who has ultimate control
over the affairs of the factory
16. How does term Lock out is defined under Industrial Dispute Act?
Answer: According to section 2 (l) of industrial dispute act

lock-out means

the temporary dosing of a place of employment], or the suspension of


work, or the refusal by an employer to continue to employ any number of
persons employed by him
Q17.Who is occupier of the factory
Answer:- According to section 2(n) of factories act 1948 a person who has the
ultimate power control over the affairs of the factory, and where the said
affairs are entrusted to a managing agent, such agent shall be deemed to
be the occupier of the factory.
Q18. What is relay shift?
Answer:- where work of the same kind is carried out by the two or more sets of
workers during different periods of the day, each of such set is called is
called relay and each of such period shift is called a shift
Q19. The minimum Number of workers required to latrine urinal facility
are___________

Answer 250 workers


Q. 20 Employed Persons is known as __________________
Answer: Persons Employed in Industry.
Q21.What is commercial establishment?
Answer Commercial Establishment means any premises, not being the premises
of a Factory, shop wherein any trade, business, Premises of a factory, or
incidental or Ancillary thereto, is carried on for profit.
Q22. What are the penalties for person whosoever employs any child or
permits any child to work in the contravention?
Answer: Shall be punishable with imprisonment for a term of not less than 3
months but can be extended to one year or with a fine which shall not be
less than

Rs 10000, however, it can extend to twenty thousand rupees or

with both.
Q23.The purpose of design Mines Act 1952 is ____________
Answer : is to prescribe the safer working conditions in the mines

Q. 24 what is the penalty for obstructing the functioning of the inspector?


Answer: shall be punishable with imprisonment up to three months or with fine
up to Rs 500 hundred or both.
Q.25 Who are contractors covered by Contract Labour Act.

Ans. Person Who under take the produce a given result for an establishment
through contract labour, or who supply contract labour for any work of the
establishment, and include Sub-contract.
Q.26 Under section 2(g) employer is defined as_________________
Answer: In relation to any industry carried on by or under the authority of any
department of the central government or the state government, the
authority as prescribed in this behalf or where no authority is prescribed,
the head of the department
Q. 27 What happened if a person does not take leave during the current year.
Ans. It is added in next year.
Q.28-Who are contractors covered by Contract Labour Act.
Ans. Person Who under take the produce a given result for an establishment
through contract labour, or who supply contract labour for any work of the
establishment, and include Sub-contract.

ROUND 2ND : MULTIPLE CHOICE ROUND


1 what is the object of the Delhi Shops & Establishments Act?
(a) Is to give some minimum benefits and relief to the vast unorganized sector
of employees, employed in Shops and Establishments.
(b) is to give guidelines in opening shops

(c) Rules and regulations to open new shops


(d) None of these
2 what is the area where Delhi Shops and Establishments Act 1954 is
applicable?
(a) In whole of India except Jammu and Kashmir
(b) In the whole of the National Capital Territory of Delhi.
(c) In whole of India
(d) None of these
3 what are the rest and closed day.
(a) Every Shops and Establishments shall remain closed for any one day in a
week.
(b) Every Shops and Establishments shall remain closed on Sunday
(c) Every Shops and Establishments shall remain closed on Tuesday
(d) Every Shops and Establishments shall remain closed Monday

4 what are the working hours for employees of shops or establishments?


(a) Not more than 9 hours a day
(b) Not more than 9 hours a day or 48 hours a week
(c) Not limited

(d) None of these


5 which of the following is not the legal provisions that employer shall
furnish regarding the issuance of appointment letters?
(a) Name of the employer, Hours of work
(b) Name and address of the establishment, date of appointment.
(c) The name, father's name and age of the employee, address of employees
(d) None of these
6 which of the following is not type of leave available to an employee under
the Act?
(a) To 15 days of privilege leave for one year of service, which can be
accumulated to 45 days.
(b) To 12 days of sickness or casual in an year.
(c) To 15 days Special leave
(d) None of these

7 what are the timings for the women to work in the shops
(a) 9 P.M. to 7 A.M during summer season and between 8 P.M. to 8 A.M during
winter season.
(b) 9 am to 7pm during summer season and between 8 am to 8am during winter.
(c) 9 A.M. to 7 A.M during winter season and between 8 P.M. to 8 A.M during
summer season.

(d) Not specific


8.What is a purpose of the industrial dispute act
(a) An act to make provision for investigation and settlement of industrial
disputes and for certain other problems.
(b) To restrains have been imposed on the rights of strike and lockouts in public
utility services
(c) To minimize the disputes among the workers and management.
(d) To increase the satisfaction level among workers and management.
9. Appropriate government is defined under which section of labour law
(a) 2(a)
(c) 2

(b) 2(c)
(d) 2(d)

10. Coal mines provident fund act and miscellaneous provision was passed in
__________
(a) 1947

(b) 1949

(c) 1946

(d ) 1950

11. Which of the following is not considered as the industry?


(a) Hospital

(b)municipal corporation

(b) fire brigade service

(d) educational institute

12. Under section 2(g) employer is defined as_________________

(a)

In relation to any industry carried on by or under the authority of any


department of the central government or the state government, the
authority as prescribed in this behalf or where no authority is prescribed,
the head of the department

(b) In relation to an industry carried on by on behalf of the local authority, the


Chief Executive Officer of that industry.
(c) Both (a) & (b)
(d) None of these.
13. Which of the following is not required for industrial dispute
(a) There should be an industry employee and workman
(b) There must be community of interest
(c) Relationship between employers and employees/ workmen and worker.
(d) None of these.

14. Industrial dispute must be concerned with


(a) Employment
(b) term and condition of employment of labour
(c) non employment

(d) All of above


15. Who cannot raise a dispute?
(a) An individual

(b) Workman

(c) Body of workman

(d) None of above

16. Settlement is defined under which section of industrial dispute Act.


(a) 2(p)

(b) 3 (p)

(c) 3(q)

(d) 2 (q)

17. Which of the following is not a machine/s under the Industrial Dispute Act?
(a) Conciliation

(b) Arbitration

(c) Adjunction

(d) None of these.

18. Which of the following is not a method of adjunction?


(a) Labour court (section 7)

(b) Industrial Tribunal (section 7(a))

(c) National tribunal (section 7(b))

(d) None of these.

19. Who has the authority to appoint conciliation officer?


(a) Government

(b) Appropriate Government

(c) Appropriate government by notification

(d) None of these.

20. Which of the following is/are objective of works committee?


(a)To promote measures for securing and preserving good relations between
employer and employees.
(b) To strive for minimizing the difference of opinion in regard to matters of
mutual interest between the employees and the employer. It is meant to
create a sense of partnership or comradeship between the employers and
workmen.

(a) Both

(a) and (b)

(d) None of these.


21. Punishment of illegal strike is punishable under which section of Industrial
Dispute Act?
(a) Section 26

(b) Section 27

(c) Section 28

(d) None of these.

22 When was factory act 1945 come into force?


(a) 1ST APRIL 1948

(b) 1ST JANUARY 1949

(c) 1ST AUGUST 1949

(d) 1ST AUGUST 1943

23 What is the main motive of establishing factories act?


(a) To establish factory
(b) To serve rules and regulations for new factory
(c) To establish the norms of the factory and or similar work place.
(d) None of these.
24 Which of the following comes under manufacturing process?
(a) Making, altering, repairing and selling
(b) Purchasing, altering, repairing and finishing.
(c) Research, making, altering, or making and finishing
(d) Making, altering, repairing ornamenting and finishing
25 Who is occupier of a factory?
(a) Who establish the factory

(b) Who finance the factory

(c) Who prevent the factory

(d) Who has ultimate control over the


factory

26. How many minimum workers are required to form a factory with aid of
power?

(a) 6
(c) 2

(b) 7
(d) 10

27. How many minimum workers are required to form a factory with utility of
power?
(a) 17

(b) 18

(c) 19

(d) 20

28. Who approved the site and construction of the factory?


(a) State Government

(b) Chief Inspector

(c) Central Government

(d) both (a) & (b)

Q.29.In which section the appointment of inspector is there?


(a) Section 9 (a)

(b) Section 10 (a)

(c) Section 10 (a)

(d) Section 8 (i)

30 In which section the power of inspector are defined?


(a) Section 20

(b) Section 19

(c) Section 18

(d) Section 17

31. In which section ventilation and temperature are defined?


(a) Section 20

(b) Section 19

(c) Section 18

(d) Section 17

32 The ratio between Number of males and Number of latrine seats are;a) 25 : 1

(b) 50 :1

(c) 100: 1

(d) 75: 1

33 The ratio between Number of males and Number of latrine seats are;a) 25 : 1

(b) 50 :1

(c) 100: 1

(d) 75: 1

34 In side wall should be white washed with simple white washed in ____
a) Once in a year

(b) Twice in a year

(c) Once in two year

(d) Once in five year

35 In side wall with WASHABLE paints must be washed in _________


a) Once in a year

(b) twice in a year

(c) Once in two year

(d) once in five year

36 In side wall with WASHABLE paints must be painted in _________


a) Once in a year

(b) twice in a year

(c) Once in two year

(d) Once in five year

37 What is the space between workers in old factory?


(a) 4.8 cubic meters.

(b) 4.9 cubic meters

(c) 5 cubic meters

(d) 9.9 cubic meters

38 what is the space between workers in New Factory?


(a) 4.8 cubic meters.

(b) 4.9 cubic meters

(c) 5 cubic meters

(d) 9.9 cubic meters

39 According to which section of Indian Factories Act 1948 the First- Aid box is
mentioned?
(a) Section 48.

(b) Section 45

(c) Section 46

(d) Section 47

40 how many workers are required to have a facility of shelter and rest room
a) 49

(b) 40

(c) 51

(d) 30

41 how many women workers are required to have a facility of crches?


(a) 49

(b) 40

(c) 51

(d) 30

42 For how many hours of week a man worker could work without overtime?
(a) 49

(b) 40

(c) 48

(d) 30

43After how many hour of work a man require the rest pause?
(a) 4 hours

(b) 5 hours

(c) 3 hours

(d) 6 hours

44. What is duration of rest pause?


(a) 5 minutes

(b) 10 minutes

(c) 20 minutes

(d) 30 minutes

45. For how many hours of week a man worker could work without overtime?
(a) 49

(b) 40

(c) 48

(d) 28

46 What is minimum distance between the latrine and drinking water Tap?

(a) 5 meters

(b) 10 meters

(c) 6 meters

(d) 8 meters

47 A worker is allowed to handle a belt of a moving pulley unless the belt is less
than _____ centimeters in width.
(a) 20

(b) 15

(c) 18

(d) 30

48 No material carried thereon shall be allowed t o run on its outward or inward


transverse with in a distance of __________inches from any fixed
structure which is not a part of machines.
(a) 20

(b) 15

(c) 18

(d) 30

49.Hoist lifts lifting machines etc must be examined by a competent person in


_________.
(a) Once in a year

(b) every month.

(c) Once in six months

(d) once in two years

50. What was the old mane of the Payment of Wages Act?
(a) Monthly Wages Act

(b) Weekly payment Act

(c) Yearly Payment

(d) Daily Payment Bill

51 Who had examined entire question in detail and recommend that legislation
regarding deductions from Wages and imposition of fines in certain cases
was necessary and desirable?
(a) The Royal Commissioner

(b) Labour welfare officer of India.

(c) Simon Commission

(d) None of these.

52 When was Payment of Wages Act passed?

(a) 23rd April 1936

(b) 22nd April 1936.

(c) 28th March 1937

(d) 26th May 1936.

53. When Payment of Wages Act Was came into Force?


(a) 23rd April 1936

(b) 22nd April 1936.

(c) 28th March 1937

(d) 26th May 1936

54. In which of the following year Payment of Wages Act was not amended?
(a) 1940

(b) 1947

(c) 1957

(d) 1962

55. Who has vested the a power to make Act applicable to payment of wages
any class of person employed in any establishment or an reestablishment.
(a) State Government

(b) Central Government.

(c) Labour Court

(d) Trade Unions

56 who is not eligible for payment of wages


(a) person employed in any Factory
(b) Person employed upon any Railway Administration or by person fulfilling a
control with Railway Administration?
(c) Person who are used as labour to improve building, construct the building, to
build the house

(d) Person employed in an industry or other establishment specified in the


section 2(a) to 2(g).
57. Introduction of computers in office is discussed in which session of Indian
labour conference?
(a) 24th

(b) 26th

(c) Both A and B

(d) None of these

58 When did the contract Act came into force?


(a) 10th February 1971

(b) 11th February 1971.

(c) 10th February 1972

(d) 10th March 1971

59 All adult workers both on surface and under ground should not exceed
_________ hours of week
(a) 48

(b) 40

(c) 60

(d) 28

60 How many Hours of a day a worker to work for above the ground?
(a) 9 hours with a spread of 12 hours

(b) 9 hours with a spread of

10 hours
(c) 10 hours with a spread of 12 hours

(d) 12 hours with a spread

of 9 hours
61. For how many hours including overtime worker is allowed to work?
(a) 9

(b) 10

(c) 12

(d) 16

62 which of the following condition is not correct for the ground for the
working of adolescent in the mines
(a) He has passed his fourteenth birthday
(b) A medical certificate in the prescribed form is granted to him by a certifying
surgeon, certifying that he is fit for work, as an adult is in custody of the
manager of the mine
(c) He has half an hours interval of rest after every four and a half hours of
Continuous work
(d) He carries, while at work, a token giving a reference to such certificate
63 Working of a mine is strictly restricted to which of the following Hours of
working in mines on surface?
(a) 6 A.M. to 7 P.M.

(b) 8 A.M. to 5 P.M.

(c) 6 A.M. to 4 P.M.

(d) 8 A.M. to 4 P.M.

64 What is a minimum days of attendance required in the mine engaged on the


ground?
(a) 190

(b) 240

(c) 160

(d) 250

Q65 What is a minimum days of attendance required in the mine engaged


underground?
(a) 190

(b) 240

(c) 160

(d) 250

67 How many minimum number of worker required to have so that welfare


Inspector in the mines
(a) 500

(b) 1000

(c) 1500

(d) 2500

68.-Upto which date of month wages must be paid to the after the date
of a month for less then 1000 workers?
(a) 7th day

(b) 10th day

(c) 5th day

(c)

not

fixed
69- Up to which date of month wages must be paid to the after the date
of a month for more then 1000 workers?
(a) 7th day

(b) 10th day

(c) 5th day

(c)

not

fixed
70- As per section 7 (I) any loss of wages resulting from the permission of the
following nature not as authorized deductions?
(a)

With holding of increase increment or promotion including the stops at an


efficiency bar,

(b) The demotion to a lower post or time scale or to a lower stage in scale; or
(c)

Suspension.

(d) None of these.


71- When was payment of wages passed?
(a) 23rd April, 1936

(b) 22nd April 1936

(c) 28th March 1937

(d) 26th May 1936

72- When payment of wages act was came into force?

73

(a) 23rd April, 1936

(b) 22nd April 1936

(c) 28th March 1937

(d) 26th May 1936

In which of the following year payment of wages act was not amended?
(a) 1940

(b) 1947

(c) 1957

(d) 1962

74- Who has vested a power to make act applicable to payment of wages any
class of person employed in any establishment or industry?
(a) State Govt. (b) Central Govt.

(c) Labour Court

(d)Trade Union

75- Who is not eligible for payment of wages?


(a) Person employed in a factory
(b) Person employed upon any railway by a railway administration or by
person full fining control with railway administration.
(c) Person employed in an industry or other establishment specified in
section 2 (a) up to 2 (g)
(d) Person who are use as labour to improve building, construct building or
for manufacturing house.

76- Who approved specified list of act or omission for which employed person
can be find.

77-

(a) State Govt.

(b) Central Govt.

(c) Prescribed Authority

(d) Both (a) & (c)

What is the maximum percentage of fine impose on any person?


(a) 3%

(b) 4%

(c) 2%

(d) 1%

78. Registrar also include:(a) Additional Registrar


(B) Deputy Registrar.
(C) Both A & B
(D) None of These

79- When was Contract Labour Act 1970 was came in to force
(a) 10 February 1972

(b) 10 February 1970

(c) 10 March 1970

(d) 10 January 1970

80- How many minimum No workers are required for applicability of Contract
Labour Act.
(a) 10

(b) 15

(c) 20

(d) 30

81- What is the period of employment contract labour So that Contract Labour
Act should be applicable.
(a) 12 months

(b) 10 months

(c) 15 months

82- Who administer the Contract Labour Act.

(d) 19 months

(a) Central Government

(b) State Government

(c) Both A & B

(d) None of these

83- What would be the maximum Amount of wages under which the Contract
Labour Act Is Applicable?
(a) Rs. 400

(b) Rs. 500

(c) Rs. 600

(d) Rs. 1000

84- Who set up the Advisory body of Contract Labour Act.


(a) State Government

(b) Central Government

(c) Legislative Body

(d) Both A & B

85- Who can employ Contract Labour.


(a) Who had registered with the registration office
(b) Who had got a certificate of registration.
(c) Who had paid a form of Rs. 20 to 2500 depending upon the number of
workers employed
(d) All of these.
86- Who give licensing of contract of labour.
(a) Central Government

(b) State Government

(c) Legislation

(d) Licensing officer

87- What is the licensing fee of the Contract Labour.


(a) 10-105

(b) 5-125

(c) 20-105

(d) 6-125

88- What are the penalties for contravention of various provision of contract
labour.
(a) Fine upto Rs. 1000

(b) Fine from 500 to 1000

(c) Imprisonment of 3 month

(d) Both A & C or any 1 of them

89- Registrar also include


(a) Additional Registrar

(b) Deputy Registrar

(c) Both A & B

(d) None of these

90- Which of the following included in trade dispute

(a) Between Employer & workers

(b)

Between

employers

and

Employees
(c) Between Employer & Non Employee (d) All of these
91- When was Trade Union Act came in to force.
(a) 9 January 2001

(b) 9 February 1926

(c) 9 January 1950

(d) 9 January 1930

92- What is the minimum no of employers to have trade union.


(a) 500

(b) 400

(c) 1000

(d) 100

93- What is % of employees in trade Union.


(a) 10%

(b) 5%

(c) 20%

(d) 30%

94- What is the minimum amount of subscription of trade union in organized


sector.
(a) Rs. 12 p. a.

(b) Rs. 10 p.a.

(c) Rs. 9 p.a.

(d) Rs. 3 p.a.

95 -What is the minimum amount of subscription of trade union in unorganized


sector.
(a) Rs. 12 p. a.

(b) Rs. 10 p.a.

(c) Rs. 9 p.a.

(d) Rs. 3 p.a.

96 -What is the maximum % of bonus of the wages.


(a) 10%

(b) 20%

(c) 30%

(d) 40%

97 how much minimum number of workers are required to have workers


participation in Management.
(a) 300

(b) 400

(c) 500

(d) 600

98 What is the period for notice or notice pay in lieu of notice in case of
retrenchment?
(a) 2 months

(b) 4 months

(c) 8 months

(d) 1 month

99. What the period of extension is for lay off for organisation employing
more then 300 workers.
(a) 1 month

(b) 2 months

(c) 15 days

(d) 20 days.

100 What is the lay off % of the wages as at present in case of retrenchment.

(a) 60%

(b) 40%

(c) 50%

(d) 30%

101 What is the appropriate % of workers support to make structure recognized.


(a) 10%

(b) 20%

(c) 30%

(d) 40%

102 What is the Ratio between leaves and a working days of adult.
(a) 1:30

(b) 1:20

(c) 1:10

(d) 1:40

103 What is a ratio between leave and working days of young.


(a) 1:30

(b) 1:20

(c) 1:10

(d) 1:40

104. What is an extent Apprenticeship Act?


(a) In whole of India except Jammu and Kashmir
(b) In the whole of the National Capital Territory of Delhi.
(c) In whole of India
(d) None of these

105. When was apprenticeship Act came into force?


(a) 23rd April 1961

(b) 22nd April 1961.

(c) 28th March 1961

(d) Differently in different state

106.In which section the Apprenticeship Advisor is appointed ?


(a) Section 26 (ii)
(c) Section 26(i)

(b) Section 22(ii)


(d) Section 26(iii)

107.In which section state Apprenticeship Advisor appointed?


(a) Section 26 (ii)

(b) Section 22(ii)

(c) Section 26(i)

(d) Section 26(iii)

108 Who cannot be an apprentice?


(a) Technician

(b) ITI graduates

(c) Simple Graduate

(d) Candidates from government


recognized institutes

109. What is the new name of national council?


(a) National Council for Training

(b) National council for Vocational


Training

(c) National council for Apprentices

(d) None of these.

110. Who register apprentices in India?


(a) Board of Apprenticeship training, Bombay, Calcutta
(b) Board of Apprenticeship training Madras
(c) Board of Apprenticeship training, Kanpur
(d) All of these
111 What is the qualification for apprenticeship?
(a) Is not less than fourteen years of age, and

(b) Satisfies such standards of education and physical fitness as may be


prescribed:
(c) Both A and B
(d) None of These.
112. What is the minimum number of employees employed by the by an
employer to make an establishment applicable for apprenticeship?
(a) 400

(b) 500

(c) 600

(d) 1000

113 What is the date of commencement of apprenticeship training?


(a) Date on which he has entered into a contract.
(b) Date on which the contract of apprenticeship has been entered into a sub
contract
(c) Date on which apprenticeship applies
(d) None of these
114. Where does a employees of that organization get the basic training where
the number of employees is less than desired number.
(a) National Council for Training

(b) National council for Vocational


Training

(c) National institute of training

(d) Training instates set up by


government

115. What is the minimum number of employees employed at the training


institute set up by government?

(a) 5

(b) 2

(c) 3

(d)

2
116. Who approve the apprentices to work overtime?
(a) Employer

(b) Central Government

(c) Apprenticeship Advisor

(d) None of these

117.Who conducts the test for trade apprentice who has completed the period of
training?
(a) National Council

(b) Employer

(c) Trainer

(d) None of these

RAPID FIRE ROUND


1 whether Registration is mandatory under the Act?
(a) Yes

(b) No

2 what are the opening and closing hours of Shops and Establishments in
Delhi?
(a) Yes

(b) No

3 could any Shop or Establishment is opened on a rest or closed day?


(a) Yes

(b) No

4 whether children are permitted to work in Shops or Establishments?

(a) Yes

(b) No

5 whether double employment is permissible under the Act?


(a) Yes

(b) No

6 Is there any legal obligation for keeping the premises clean?


(a) yes

(b) No

7 whether an employer is liable to pay compensation if an employee suffers


injuries or is subject to fatal accident?
(a) Yes

(b) No

8.In the case of SANTOSH GUPTA v/s S.B.I. Santosh Guptas termination was
termed as retrenchment?
(a) Yes

(b) No

9 In the case of S.K. Verma v/s Mahesh Chandra the development officer of LIC
was considered to be workman?
(a) Yes

(b) No

10. In the case of H.S. Chauhan v/s Life Insurance Corporation of India was
considered to be workman?
(a) Yes

(b) No

11.In the case of Ved Prakash Gupta v/s Messers Delton Cable company was
considered to be workman?
(a) Yes

(b) No

12. In the case of Crompton Greaves v/s their workers the strike was legal?
(a) Yes

(b) No

13. In the case of Ram Krishna Iron Foundry, India General Navigation and
Railway Cambay Ltd v/s their workers the strike was legal?

(a) Yes

(b) No

14. Is an apprentice a worker or an employee?


(a) Yes

(b) No

15Is an apprentice a Management Trainee?


(a) Yes

(b) No

16 Will the apprentice be entitled to any payment?


(a) Yes

(b) No

17 Is the employer liable to employ the apprentice after completion of his


training period?
(a) Yes

(b) No

18 Is there any reservation of training places for the Scheduled Castes and the
Scheduled Tribes in designated trades?
(a) Yes

(b) No

19.Is the employer liable to employ the apprentice after completion of his
training period?
(a) Yes

(b) No

20.Is the employer required to maintain any records & returns?


(a) Yes

(b) No

21.Will the apprentice get any certificate?


(a) Yes

(b) No

22. Municipality which is pumping the water and supplying water?


(a) Yes

(b) No

23. Is PUMPING OIL is deemed to a manufacturing process


(a) Yes

(b) No

24. Any process of generating, transforming or transmitting power is deemed to


manufacturing process?
(a) Yes

(b) No

26. Preserving or storing articles is deemed to manufacturing process?


(a) Yes

(b) No

27. Process relating to composing, types for printing by letter press, lithography,
photogravure is deemed to manufacturing process?
(a) Yes

(b) No

28.In the famous case of Rohtas Industries v/s Ramlakhan Singh, is


Ramlakhan Singh involved in manufacturing process
(a) Yes

(b) No

29. In the famous case of GENERAL SUPDT., CHRISTIAN MEDICAL


COLLEGE and HOSPITAL v/s Inspector of FACTORIES OF VELLORE
a person working in the hospital laundry is worker of laundry or not ?
(a) Yes

(b) No

30. Latrines and urinal must be cleaned in every ___________days

31 Is GEMINI STUDIO is factory or not?


a) Yes

(b) No

32 is any woman is allowed to lubricate the machines?


(a) Yes

(b) No

33. Is there is Any extra payment to person employed is entitled in respect of


over- time work or holidays or any leave period?
(a) Yes

(b) No

34. In the Famous case of in payment of wages inspector v/s B.E.S company,
that workman whose services have been terminated on account of transfer

of an undertaking whether by law agreement is entitled to have any


wages?
(a) Yes

(b) No

35. In the case of Cominco Binnani Link Limited. v/s Pappachan, that
employees who are maintaining the canteen are eligible for payment of
wages?
(a) Yes

(b) No

36 whether an employer is bound to maintain some records pertaining to the


employees?
(a) Yes

(b) No

37 Is half day leaved in considered in leave.


(a) Yes

(b) No

38. Whether an employer is bound to maintain some records pertaining to


the employees?
(a) Yes

(b) No

39 Contract Labour Act applies to that establishment where work is of casual


(Irregular or Occasional) nature.
(a) Yes

(b) No

40 Is contract labour Act is applicable for seasonal work, which is, perform
more than 60 days.
(a) Yes

(b) No

41- Material given for production at home by some one, that person with
considered as contract labour.
(a) Yes

(b) No

42- Are persons regarding supply of goods or articles of manufacture to an


establishment are included in contractor.
(a) Yes

(b) No

43 The commission would like to recommend the compensation per completion


years of service at the rate of ____________ days on amount of closure in
case of sick industries.

CONCLUSION
Labour Laws is that essential aspect of the Human Resource Management
without which the management of Human Resource is not even possible so
every personnel who is having the concern with Human Resource must
have the knowledge of Labour Laws

As we know Asking Is Knowing, Question not only enhances the


knowledge but also checks and evaluates the values of learning that what
ever we had learned is the in the mind.
A project on Quiz on labour laws gives me a Practical Experience of
management of Human Resource and its management moreover studies of
labour laws and its Act created interest about law in me.
As labour law is the part of our third semester in our course but with the
help of this project I had learned Labour Laws in Advance. That is what an
approach to be proactive about future.
Experience during Practical Training at ITC SAHARANPUR (A PART
OF INDIAN MULTINATIONAL) in Human Resource taught me a true
picture of managing Human Resource. I had realized a close picture of
Future Human Resource Management.
Experience during the training period was very exiting which it self is
based on challenges where every part of life is challenge and we have to
win that challenge. The management and staff was very cooperative during
the period of training

S.NO BOOK/ E-MAIL


1.
DYNAMICS
OF
RELATIONS

AUTHORS
INDURTRIAL Dr. C.B. MAMORIA
Dr. SATISH MAMORIA
S.V. GANKAR

2.

LABOUR RELATIONS AND LAW

INDIAN

LAW

INSTITUTE
3.

INDUSTRIAL RELATIONS IN INDIA

PUBLICATION
C.A. MYERS,
KANNAPPAL

4.
5.
6.

LABOUR PROBLEMS IN INDUSTRIES


STRIKES, LOCKOUTS AND GHERAOS
LABOUR MANAGEMENT RELATIONS

7.

IN INDIA (ASIA 1967)


LABOUR MANAGEMENT RELATIONS
IN INDIA (ASIA 1967)

8.
9.
10.
11.

I.T.C. ANNUAL REPORT


www.google.co.in
www.itcportal.com
www.indianlabourlaws.com

(ASIA

1970)
V.V. GIRI
V.P.ARYA

K.N. SUBRAMANIAM