Labour Law II Definitions-

1. Gratuity-
Gratuity is the amount paid by an employer for the services rendered by an employee
during their employment period. According to the law, employees have the right to avail
gratuity after working in an organization for five continuous years. Gratuity is paid to the
employee when he retires, his employment is terminated, he resigns or upon his death. It
is given force by the payment of gratuity act, 1972.

2. Migrant workers-
 The OSH Code defines inter-state migrant workers as individuals who are recruited by an
employer or contractor in one state for employment in another state. Earns a maximum of
Rs 18,000 per month, or such higher amount which the central government may notify
 Moves on their own to another state and obtains employment there

3. Worker’s education-
Workers Education refers to the educational initiatives provided by trade unions to
enhance the knowledge, skills, and capabilities of workers for their development and
empowerment as workers and citizens. In India, the Workers Education Scheme was
started in 1958 by the Central Board for Workers Education (CBWE).

4. PF-
A PF is a long-term investment fund that employees and their employers contribute
to. The employee's contribution is usually a percentage of their salary, and the employer
contributes a similar amount. Employees can access the interest earned on their PF
account when they retire or leave their job. The act applies to industries that employ at
least 20 people.

5. Contract Labour-
A worker hired through a contractor to work for an establishment, with or without the
knowledge of the establishment's principal employer. essentially meaning that a company
employs workers through a third-party contractor instead of directly hiring them; this
practice is governed by the Contract Labour (Regulation and Abolition) Act, 1970. The
OSHWC Code also includes inter-state migrant workers in its definition of contract labor.
inter-State migrant workers and workers in a supervisory capacity who receive wages
above INR 500 and less than INR 18,000.

6. Floor wage-
 Under the Code on Wages, 2019, a floor wage is the lowest wage rate that the central
government sets for a particular geographical area. The central government sets the floor
 wage after considering the minimum living standards of workers. The floor wage can be
the same for the entire country or different for different regions
 The appropriate government must set the minimum wage at or above the floor wage.
7. Occupational Safety-
Occupational safety is the practice of preventing and controlling workplace hazards that
could harm the health and well-being of workers. It also involves improving the working
environment and promoting the health of employees. Employers are ultimately
responsible for managing occupational safety and health (OSH). They can benefit from
OSH regulations because injuries and illnesses can lead to higher turnover, lost
productivity, and more expensive health insurance premiums.

8. Doctrine of added peril-

The doctrine of added peril is a legal defense for employers under the Workmen's
Compensation Act, 1923. It states that if an employee performs a task that is not part of
their job duties and involves extra danger, the employer is not liable for any injuries that
result. The doctrine of added peril is based on the idea that the employee took on a
greater risk than their employer required.

9. Doctrine of Notional extension-

The doctrine of notional extension is a theory that prescribes that compensation is to be
paid to the workers in case of an accident during the course of employment, but the actual
cause of adopting this theory was to include within its scope, the injury and danger
originated due to employment but not necessarily at the workplace, during working hours
or while coming or going to the place of work. It's based on the idea of social security
and is used to determine when an employer is responsible for compensating injured
workers.

10. Bondedlabour-
A person becomes a bonded labourer when their labour is demanded as a means of
repayment for a loan.It is a practice in which employers give high-interest loans to workers who work at
low wages to pay off the debt. The Supreme Court of India has interpreted bonded labour as the payment of
wages that are below the prevailing market wages and legal minimum wages. Article 23 and 21 of the
Constitution prohibits forced labour.

11. Child Labour-

According to the Child and Adolescent Labour (Prohibition and Regulation) Act, 1986,
amended in 2016, a child is defined as anyone under the age of 14. The act prohibits the
employment of children in any capacity, including as domestic help, and is a criminal
offense to do so. Article 24 of the constitution prohibits it.

12. Employee pension scheme-

 The Employee Pension Scheme (EPS) is a social security scheme that provides a pension
to eligible employees after retirement. The scheme is run by the Employees' Provident
Fund Organisation (EPFO) for employees in the organized sector. The scheme makes
provisions for employees working in the organized sector for a pension after their
retirement at the age of 58 years. The employer contributes 8.33% of the employee's
salary towards the EPS. The employee's entire share goes towards EPF.

13. Family pension scheme-

The Family Pension Scheme is a benefit that provides financial support to the family of a
government servant who has died or retired. The widow or widower of a government
servant who entered service on or after January 1, 1964 and before December 31, 2003. If
there is no widow or widower, the children of the deceased government servant are
eligible. Social security schemes are designed to provide financial and health care
benefits to the family of a retired, deceased, or disabled earning member.

Payment of bonus act

8. Eligibility for bonus.—Every employee shall be entitled to be paid by his employer in

an accounting year, bonus, in accordance with the provisions of this Act, provided he has
worked in the establishment for not less than thirty working days in that year.
9. Disqualification for bonus.—Notwithstanding anything contained in this Act, an
employee shall be disqualified from receiving bonus under this Act, if he is dismissed
from service for— (a) fraud; or (b) riotous or violent behaviour while on the premises of
the establishment; or (c) theft, misappropriation or sabotage of any property of the
establishment.

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Employee compensation

Under the Employees' Compensation Act, 1923, employees are eligible for
compensation if they suffer an injury, contract a disease, or lose their life while
performing their duties under specific circumstances. The grounds for eligibility are
detailed below:

1. Injury by Accident Arising out of and in the Course of Employment

 The injury must be caused by an accident.
 The accident must arise out of employment, i.e., there should be a causal connection
between the work and the accident.
 The accident must occur in the course of employment, i.e., while the employee is
engaged in the employer's business or fulfilling their duties.
2. Occupational Diseases
 Employees are eligible for compensation if they contract diseases that are directly
attributable to their occupation.
 The Act classifies occupational diseases into:
o Scheduled diseases: Diseases listed in Schedule III of the Act, specific to certain
occupations.
o Notified diseases: Diseases notified by the government as arising due to specific
employment.

3. Fatal Accidents
 If an employee dies due to an accident arising out of and in the course of employment,
their dependents are eligible for compensation.
 The amount of compensation depends on the employee’s wages and age.

4. Permanent Total or Partial Disability

 If the accident causes permanent total disablement (e.g., loss of both limbs), the
employee is eligible for maximum compensation.
 For permanent partial disablement (e.g., loss of a finger), compensation is calculated
based on the extent of disability as per the schedule provided in the Act.

5. Temporary Disablement
 In case of temporary disablement (total or partial), the employee is entitled to
compensation in the form of a half-monthly payment during the period of disablement.

Exceptions (Non-Eligibility for Compensation):

 If the injury does not result in the loss of the employee's ability to earn.
 If the injury is self-inflicted or caused due to:
o The employee being under the influence of drugs or alcohol.
o Willful disobedience of safety rules or orders.
o Intentional disregard of safety measures.

Calculation of Compensation:
 The compensation depends on:
o Nature and extent of the injury.
o Age of the employee.
o Monthly wages of the employee.
o Relevant provisions in the Act for the type of disablement or fatality.
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