UNIT V

Labour Legislation
 Contents
• Labour Legislation
• Salient Provision of health, Safety and welfare under Indian
Factories Act
• Industrial Disputes Act
• Employee State Insurance Act
• Workmen’s compensation Act
• Payment of Bonus Act
Labour Legislation:
Law comes into existence to cater to the growing needs of
society, which may be caused by technological, economic,
political, social changes.
Law is a dynamic concept.
Law is like a citadel which requires regular repairs, revamping
and replacement.
"Life and Laws have moved together in history and it must do in
future".
It is in this perspective that the Labour Legislations have to be
studied.
Industrial Revolution and the need for Labour
Legislations
Society evolves institutions to abhor vacuum created by changes.
Industrial Revolution is a epoch-making event, which completely changes the
lifestyles of society from agricultural and pastoral to industrial and materialistic one.
The industrial society brought about, in its wake, excessive exploitation of the
working classes by the employer who took advantage of the individual dispensability
of the worker and wanted maximum profit on his investment.
The golden rule of capitalism that "Risk and Right" go together provided them with
prerogatives to "hire and fire".
The other legal concepts which were then available were those of Master and
Servant and carrot and stick etc.
The principle of common law was in operation.
The law of contract used to govern the relation between worker and the employer in
which individual contact was struck, the terns of contract were usually verbal and
mostly used in cases of breaches, leading to prosecution and imprisonment of
workers.
Industrial Revolution and the need for Labour
Legislations
Labour and Migration Act was another legislation which gave rise to the
"Indentured labour system".
Anti-Combination legislations were in vague treating 'combination' of
workers as act of criminal conspiracy.
Longer hours of work, abysmally low wages, no safety and welfare
provisions, and no insurance - the exploitation at large.
State was adopting the policy of Laissez-faire (let not interfere) and
employers abused workers, taking advantage of the situation.
22 Every society on its onwards march revises, reviews, refurbishes and
reinvents its legal concept and civilised ways of living.
The changes brought about by the industrial revolution created some
gaps and it became the responsibility of the society to fill-up those gaps.
Industrial Revolution and the need for Labour
Legislations
Society went for certain social devices to take care of the gaps, which
are known as labour legislation.
The labour legislations are the products of Industrial Revolution and
they have come into being to take care of the aberrations created by it.
They are different from common legislations, because they come to
alleviate special disorders created by specific circumstances.
Therefore, they are specific and not general in orientation, philosophy
and concept.
The Main Ingredients of Labour Legislations:
Labour legislation regards individuals as workers ,whereas the general
legislation regards him a citizen.
The principles governing labour legislations are more influenced by the
postulates of social justice than general justice.
Workers are the weaker class of industrial society and have suffered long at
the hands of employers.
Therefore, these sets of legislations go out of way in protecting workers and
securing justice to them.
The influences of 'discriminative justice' and ' distibutive justice' can be
clearly seen over them.
All the labour legislations are heavily skewed towards labour and they are
specifically designed like that.
The Main Ingredients of Labour Legislations:
Individuals have different roles to perform and different laws are
designed for regulating the different roles.
It is the role-relation that determines whether a particular legislation
falls under the category of labour legislation, social legislation or
general legislation.
All these legislations try to meet the specific objectives of their
respective target groups- that is
(a) to provide subsistence,
(b) to aim at abundance,
(c) to encourage equality, and
(d) to maintain security.
The Main Ingredients of Labour Legislations:
As labour legislations are to regulate the conditions of labour, in the
industrial milieu, it is required to be adjusted as per the changing
requirements of industry.
This has to be done more frequently than the general legislation where
changes are not that swift.
Unless ' labour legislations are subjected to frequent revision and not left to
continue as they are, they become obsolete and irrelevant.
The Indian Labour Legislations are the best example. Most of them have
become outdated as the required revisions have not been affected and gaps
have been created between the expectation of industrial so( ..:! the
institution of labour legislation.
ORIGIN OF LABOUR LEGISLATIONS
The origin of labour legislation is the history of continuous and relentless
struggle for emancipation of working class from cloches of aggressive
capitalism.
The struggle was between two unequals. The contract between capital and
labour could never be struck on equitable terms.
The social scientists interpreted this struggle in different ways. The point,
however, was to change it.
The change contemplated was one of transforming a slave into partner and
thereby bridle the power of capital to impose its own terms on the workmen.

Various factors helped this process to take place.

The struggle was not easy. Numerous forces, directly and indirectly,
hastened the pace facilitating the passing of labour friendly legislation
Factors Influencing Labour Legislations in India
The factors discussed above are the general factors influencing the shape of labour
legislation.
There are specific factors, peculiar to India which have influenced labour legislations.
a) Influence of colonial rule:
Most of the early labour legislation came into being because of the pressure
from the manufacturers of Lancashire and Birmingham; because labour
employed in factories and mills in India were proving very cheap in comparison
to their British counterpart.
No doubt, these legislations were beneficial to Indian labour but this benefit
was incidental to the main purpose i.e. the protection of the interests of British
Capitalists.
The British Civil Servants carried with them the British tradition of democracy
and pragmatism. The Workman Compensation Act, 1923, the Indian Trade
Unions Act, 1926, the Payment of Wages Act, 1936 etc. followed British pattern
Factors Influencing Labour Legislations in India
b)The struggle for national emancipation and adoption of Indian Constitution:

The Industrial Workers got support from the freedom struggle and
nationalist leaders who made tireless efforts to get protective labour
legislations enacted.
The Indian Trade Unions Act, the appointment of Royal Commission on
Labour etc. were because of pressure from freedom struggle.
The leaders of the national movement had promised the establishment of a
better and just social order after independence; which was ultimately
embodied in the Preamble, Fundamental Rights and Directive Principles of
State Policy of the Indian Constitution.
OBJECTIVES OF THE LABOUR LEGISLATIONS
Labour legislation in India has sought to achieve the following objectives:
(1) Establishment of justice- Social, Political and Economic
(2) Provision of opportunities to all workers, irrespective of caste, creed,
religion, beliefs, for the development of their personality.
(3) Protection of weaker section in the community.
(4) Maintenance of Industrial Peace.
(5) Creation of conditons for economic growth.
(6) Protection and improvement of labour standards.
(7) Protect workers from exploitation:
(8) Guarantee right of workmen to combine and form association or unions.
(9) Ensure right of workmen to bargain collectively for the betterment of
their service conditons.
Principles of Labour Legislation
There are various principles of labour legislations such as:
• Principle of Protection
• Principle of Social Justice
• Principle of Regulation
• Principle of Welfare
• Principle of Social Security
• Principle of Economic Development
• Principle of International Obligation
There are two main principles, i.e. social justice and social equity. There
are other principles too.
Principles of Labour Legislation
Principle of Social justice

The principle of social justice essentially states that all social groups
must be treated the same, no matter what.
It aims to remove social inequality, as it can be clearly seen that certain
groups have been subject to social disability in terms of employment or
labour.
It aims to provide equal employment opportunity to all regardless of
social status of a person.
Principles of Labour Legislation
Social equity

This principle is essentially based on maintenance of legislations which is based on

social equity of labour.
Laws are to be updated from time to time, circumstances are not permanent,
they keep on changing from time to time, hence there is a necessity to bring
changes in the law accordingly.
This intervention by the government for making modifications or amendments, to
suit the changed situations are based upon the principle of social equity.
In a nutshell, Social equity is setting up of equitable standards for all by means of
legislative provisions and obligations to do so.
Principles of Labour Legislation
International uniformity

For this principle, the role of ILO (International Labour Organization) is

noteworthy.
It has produced a good number of International Conventions and
Recommendations which covers the aspects like unemployment, general
conditions of employment, wages, hours of work, young people, women,
industrial health, etc.
Principles of Labour Legislation
National Economy

This principle states that, while enacting a labour legislation, the general
economic situation of the country must be taken into consideration.
Because in any country the state of national economy is a key factor in influencing
labour legislation.
Principles of Labour Legislation
Social Security

From the point of view of, “Principles of Labour Legislation and Industrial
Jurisprudence, Dr. Soumitra Kumar Chatterjee” is the concept of social security is
an important part of social justice.
It is based on ideas of human dignity and social justice. It essentially means that
state must protect every citizen which in any way contributes to the promotion of
the country’s welfare.
Its measures are significant from two viewpoints:
First, they constitute an important step towards the goal of a welfare state;
Second, they enable workers to become more efficient and hence increases the
industrial power and potential.
Principles of Labour Legislation
Adoption of Social Security measures in India has been done through
the implementation of Acts chronologically are:
• The Workmen’s Compensation Act, 1923.
• The Trade Union Act, 1926.
• The Industrial Employment (Standing Orders) Act, 1946.
• The Industrial Disputes Act, 1947.
• The Minimum Wages Act, 1948.
• The Employees State Insurance Act, 1948.
• The Factories Act, 1948.
• Maternity Benefits Act, 1961.
Growth of Labour Legislation in India
In the eighteenth-century, India was not just a great agricultural country but
also a great manufacturing country.
Both the European and Asian markets were mainly fed because of the looms
supplied by India. British government in India, as a matter of policy discouraged
Indian manufacturers, so that they could encourage new manufacturers of
England.
Their policy essentially was to make Indian people grow only the raw materials.
The British oppression in India continued for some time, which led to the
growth of Indian nationalism.
In the twentieth century, the national movement took a new turn and hence
there was a demand for Indian goods. A non-cooperation movement, which is
known as Swadeshi movement, was started, which urged the people to use the
goods which were made in India and to boycott the goods which were foreign-
made.
Growth of Labour Legislation in India
In India, the plantation industry in Assam was the first one to attract the
legislation.
Several new acts were passed from 1863 onwards for the regulation of
recruitments.
These legislations had more focus on the protection of interests of the
employers rather than safeguarding the interest of the workers.
Although, The Factories Act was passed in 1881 and the Mines Act was passed
in 1901.
But the most important Act which was passed to protect the interests of the
workers was The Workmen’s Compensation Act, 1923.
Some of the other important social security legislations are: The Employees
State Insurance Act, 1948, The employees Provident Funds Act, 1952 etc.
Growth of Labour Legislation in India
Laws were also made to regulate the labour management relations. Some of
them are: The Industrial Disputes Act, 1947.
The Trade Unions Act, 1926, and The Industrial Employment (Standing Orders)
Act, 1946.
Labour legislations ensuring labour welfare and minimum standards were also
enacted.
Some of them are: The Factories Act, 1948. The Minimum Wages Act, 1948. The
Payment of Wages Act, 1936, and The Payment of Bonus Act, 1965.
Growth of Labour Legislation in India
Further, by the setting up of International Labour Organisation (ILO), India saw
many revolutionary changes like the amendment in The Factories Act, 1881.
All these amended and enacted legislations make provisions for both, general
welfare and protection of interest of the labours in India.
The positive influence of ILO was seen in the form of recognition of many new
kinds of rights that were not available to the labour class but were made
available post creation of ILO.
It is important to note that until 1919, there were no important labour
legislations in India, but with the establishment of ILO, there have been many
changes in the labour legislation of our country.
Salient Provision of health, Safety and welfare under Indian Factories
Act
Factories Act, 1948 is an act to consolidate and amend the law regulating labour in factories.
The main objective of the Act is to ensure adequate safety measures but also to promote
health and welfare of the workers employed in factories as well as to prevent haphazard
growth of factories.
The Factories Act,1948 has been enacted on 23.09.1948. This Act is legislated to lay guidelines
on working conditions in factories including leaves, working hours, holidays, etc.
It also ensures health, safety and welfare measures of workers in factories. This Act made
mandatory medical examination for children under the age of 15 while admitting to work as
well periodically.
Certificates of fitness is also made necessary for young workers working in harbors,
constructions, etc.
This Act has been amended in the year 1987.
There are provisions of the Act which deals with regard to health measures including
cleanliness, ventilation, lightning, drinking water, latrines & urinal, etc., safety measure
includes fencing, lifting, casing of machinery, employment of young workers with dangerous
machines, etc., welfare measures which include washing facilities, facilities for sitting, first aid
Salient Provision of health, Safety and welfare under Indian Factories
Act
This Act also focused on hazardous process by industries and the level of chemical
substances permissible in work environment.
The Act contain provisions regarding hazardous process, constitution of Site Appraisal
Committee, compulsory disclosure of Information, appointing competent person in
handling hazardous substances, etc.
As far as the working hours of adult workers is concerned, e.g. weekly works and
holidays, night shifts, overtime wages, etc., it is provided that an adult worker should not
work more than 48 hours in a week and should get one full day holiday in a week.
A women worker should not be allowed to work beyond 10pm and before 6 a.m. No
children under the age of fourteen should be allowed to work in any factory. Beyond
several provisions for the welfare of the workers, there are several special provisions
which really give special protection with some strict measures for the purpose of the Act.
Court will take cognizance only when the complaint is made in three months within the
reach of Inspector. There were several other penal provisions for the offences by several
authorities and experts
INDUSTRIAL DISPUTES ACT, 1947
• Disablement, is said to be total when if Incapacitates a worker for all work
he was capable of doing at the time of the accident resulting in such
disablement.
• "Total disablement" is considered to be permanent if a workman, as a
result of an accident, suffers from the injury specified in Part I of Schedule I
or suffers from such combination of injuries specified in Part II of Schedule
I as would be the loss of earning capacity when totaled to one hundred per
cent .
• Disablement is said to be permanent partial when it reduces for all times,
the earning capacity of a workman in every employment which he was
capable of undertaking at the time of the accident. Every injury specified in
Part II of Schedule I is deemed to result in permanent partial disablement.
• Where the disablement is of a temporary nature and reduces the earning
capacity of a workman in the employment in which he was engaged at the
time of the accident it is "temporary partial disablement.
Accident Compensation-when payable
• The employer of any establishment covered under this Act, is required
to compensate an employee:
• who has suffered an accident arising out of and in the course of
his employment, resulting into (i) death, (ii) permanent total
disablement, (iii) permanent partial disablement, or (iv)
temporary disablement
• who has contracted an occupational disease accident arising out
of and in the course of Employment
❒ Accident arising out of and in the course of Employment
• An accident arising out of employment implies a casual
connection between the injury and the accident and the work
done in the course of employment.
 What are the condition for receiving compensation for Personal Injury
caused by the accident ?
The three tests for determining whether an accident arose out of
employment are :
• At the time of injury workman must have been engaged in the
business of the employer and must not be doing something for his
personal benefit;
• That accident occurred at the place where he was performing his
duties; and
• Injury must have resulted from some risk incidental to the duties of
the service, or inherent in the nature or condition of employment.
When is an Employer not liable to pay compensation ?
The employer shall not be liable to pay compensation in the following
cases:

• if the injury did not result in total or partial disablement of a workman

for a period exceeding three days,
• if the workman was at the time of the accident under the influence of
drink of drug, or
• if the workman willfully disobeyed an order expressly given or a rule
expressly framed for the purpose of securing safety of workman, or
• If the workman willfully removed or disregarded any safety guard or
other device which to his knowledge was provided for the purpose of
securing his safety.
Doctrine of Notional Extension:
• The expression in the course of his employment', connotes not only actual work
but also any other engagement natural and necessary thereto, reasonably
extended both as regards work-hours and work-place.
• It refers to the time during which the employment continues.
• However, this is subject to the theory of notional extension of the employer's
premises so as to include an area which the workman passes and re-passes in
going to and in leaving the actual place of work.
• There may be some reasonable extension in both time and place and a workman
may be regarded as in the course of his employment even though he had not
reached or had left his employer's premises. This is also called as the Doctrine of
Notional Extension.
• The doctrine of notional extension could not be placed in a strait jacket; it was
merely a matter of sound common sense as to when and where and to what
extent this doctrine could be applied.
 AMOUNT OF COMPENSATION –section 4
• The amount of compensation payable to a workman depends on

❖ the nature of injury caused by accident,

❖ the monthly wages of the workman concerned, and
❖ the relevant factor for working out lump sum equivalent of
compensation amount as specified in Schedule IV.

• There is no distinction between an adult and a minor worker with

respect to the amount of compensation.
COMPENSATION FOR DEATH

• In case of death resulting from injury, the amount of compensation

shall be equal 50% of the monthly wages of the deceased workman
multiplied by the relevant factor.

• Or an amount of Rs 80,000/- whichever is more.

Example:
• A workman is employed in a factory on a monthly wage of Rs 3000. While
working he met with an accident and dies on oct 2000. His date of birth is
july 18 , 1970. The amount of compensation payable to his dependent
would be 50* monthly wages* Relevant factor of age 30
100
0r 80,000 whichever is higher

50* 3000* 207.98 = 3,11,970

100

• Since Rs 311970 is more than 80000 the compensation payable to him

shall be Rs 311,970
COMPENSATION FOR PERMANENT TOTAL DISABLEMENT
• In case of permanent total disablement resulting from the injury, the
amount of compensation shall be 60% of the monthly wages of the
injured workman multiplied by the relevant factor or Rs 90,000/-
thousand whichever is more.

• For the above example the compensation would be

60* 3000* 207.98 = 3,74,365

100

Since Rs 3,74364 is more than 90,000 the amount of compensation

payable should be Rs 3, 74364
 COMPENSATION FOR PERMANENT PARTIAL DISABLEMENT
• Where permanent partial disablement occurs, the amount of
compensation payable shall be as follows:

❖ in case of an injury specified in part II of the schedule I, the amount of

compensation shall be such percentage of the compensation which
would have been payable is the percentage of loss of earning capacity
caused by that injury.
❖ in case of an injury not specified in schedule I, such percentage of the
compensation is payable which is proportionate to the loss of earning
capacity (as assessed by a qualified medical practitioner) permanently
caused by the injury.
Example:
• A worker whose monthly wages is RS 3000 loses one eye AS A RESULT
OF Injury caused to him on Nov 15, 1995. On Oct 1, 1995. He had
completed 20 years of age. The amount of compensation payable to
him would be

40% of 60* 3000* 224 = 1,61,280

100
COMPENSATION FOR TEMPORARY DISABLEMENT (TOTAL OR PARTIAL)
• If the temporary disablement, whether total or partial results from the
injury, the amount of compensation shall be a half monthly payment
of the sum equivalent to 25% of the monthly wages of the workman to
be paid in accordance with the provisions.
• The half monthly payment shall be payable on the sixteenth day from
the date of disablement, In cases where such disablement lasts for a
period of 28 days or more compensation is payable from the date of
disablement
• In other cases After the expiry of a waiting period of three days from
the date of disablement means 19th day from the disablement.
 COMPENSATION TO BE PAID WHEN DUE AND PENALTY FOR DEFAULT (section 4A)
• As per this section, compensation has to paid as soon as it is due

• In case the employer does not accept the liability of paying the
compensation, he is bound to make provisional payment to the
extent of the liability he accepts. Such amount has to be deposited
with the commissioner or paid to the workman. If he defaults, the
commissioner may order:

❖ the payment of the amount with interest at 12 % per year

❖ if the default to be unjustifiable then the commissioner may order
payment of a further sum not exceeding 50% of the amount due, by
way of penalty.
Payment of Compensation to Contract Labour
• The principal employer is liable to pay compensation to contract
labour in the same manner as his departmental labour.
• He is entitled to be indemnified by the contractor.
• The principal employer shall not however be liable to pay any interest
and penalty leviable under the Act
Occupational Diseases
• Workers employed in certain types of occupations are exposed to the
risk of contracting certain diseases which are peculiar and inherent to
those occupations.
• A worker contracting an occupational disease is deemed to have
suffered an accident out of and in the course of employment and the
employer is liable to pay compensation for the same.
Mode of Payment
• The employer becomes liable to pay the compensation as soon as the
personal injury was caused to the workman by the accident which arose out
of and in the course of the employment.

• The amount of compensation should be paid as soon as it falls due. It will be

computed on the date of accident. If the amount is not paid within one
month from the date it fell due, the Commissioner may after giving
reasonable opportunity of being heard, direct the employer to pay simple
interest @ 12% p.a. or at such higher rate as may be specified not exceeding
the. Maximum lending rate of any scheduled bank. Besides, if there is no
justification for the delay, the Commissioner may after giving reasonable
opportunity of being heard, direct the employer to pay a further sum not
exceeding 50% of the compensation, by way of penalty.
Notice of Accident
• A 'notice of accident' should be sent to the Commissioner, by the
concerned employee as soon as practicable after the happening
thereof.
• The notice should contain such particulars as the name and address of
the person injured, the date and cause of accident, etc.
• A Copy of the notice should also be sent to the establishment wherein
he was employed.
• The notice of accident may be served either personally or by
registered post or by means of an entry in the notice-book maintained
by the employer.
Medical Examination
• The employer may get the concerned workman examined by a
qualified medical practitioner, within 3 days from receiving the notice
of accident. The employee must present himself for such examination
otherwise he shall loose his right to the compensation.
• Failure of employer to have the workman medically examined does
not debar him from challenging the medical certificate produced by
the workman.
 Obligations of Employers
⚫ To pay compensation for an accident suffered by an employee, in accordance with the Act.
⚫ prescribed
To submit a statement to the Commissioner (within 30 days of receiving the notice) in the
form, giving the circumstances attending the death of a workman as result of
an accident and indicating whether he is liable to deposit any compensation for the same.

⚫ accident
To submit accident report to the Commissioner in the prescribed form within 7 days of the
which results in death of a workman or a serious bodily injury to a workman.

⚫ the
To maintain a notice book in the prescribed from at a place where it is readily accessible to
workman.

⚫ compensation
To submit an annual return of accidents specifying the number of injuries for which
has been paid during the year, the amount of such compensation and other
prescribed particulars.
Obligations of Employees
• To send a notice of the accident in the prescribed form, to the
Commissioner and the employer, within such time as soon as it is
practicable for him. This notice is precondition for the admission of the
claim for compensation.

• To present-himself for medical examination, if required by the

employer.
Payment of Bonus Act
th
15 Sept 1965
 Bonus- History in India
✔ The practice of paying bonus in India appears to have originated during
First World War when certain textile mills granted 10% of wages as war
bonus to their workers in 1917.

✔ In certain cases of industrial disputes demand for payment of bonus

was also included. In 1950, the Full Bench of the Labour Appellate
evolved a formula for determination of bonus.

Introduction
✔ Act to provide for the payment of bonus to persons employed in certain
establishments on the basis of profits or on the basis of production or
productivity and for matters connected therewith.
 Scope & Applicability
It extends to the whole of India

Every establishment in which twenty or more persons are

employed on any day during an accounting year.

Factory ( As Defined in factories Act)

very other establishment in which 20 or more persons are employed on any day during
any accounting yearc)Public sector(Share capital held by Govt>40%)

Note : For some establishment POBA will apply even if the number of employees are
below 20 under two conditions,
Minimum of 10 employees
Notified in gazette.
 To whom u/s8
All the employees

❑ Who works for 30 days (or) more.

❑ Salary less than (or) equal to 10,000.

❑ Note : Working days includes Casual leaves, sick leaves………….

etc.
 Exceptions
According to Section 32 of the Act

✔ General insurance & Life insurance business and the employees

✔ Seamen as defined in clause (42) of Section 3 of the Merchant Shipping Act, 1958;
✔ Employees employed by any department of Central Government or a State
Government or a local authority;
✔ Employed by The Indian Red Cross Society
✔ Universities and other educational institutions
✔ Institutions (including hospitals, chambers of commerce and social welfare
institutions) established not for the purpose of profit
✔ Employees employed through contractors on building operations
✔ Employees employed by the Reserve Bank of India
✔ Employees employed by The Industrial Finance Corporation of India;
✔ And other institution mentioned under sec 32
 Calculation of bonus

Calculation of available surplus u/s 5.

Gross profit u/s 4 xxx

Less :Prior profits u/s6 xxx
Add :Tax savings(previous accounting year) xxx
Available surplus xxx
Allocable Surplus
60% of Available Surplus,
67% in case of foreign companies.
According to Sec 19
[All amounts] payable to an employee by way of bonus under this Act shall be paid
in cash by his employer
 Bonus limits
Bonus is calculated as % on Salary

Minimum u/s10 = 8.33%

Maximum u/s11 = 20%

The minimum for majors is RS 100.

The minimum for minors between 14 to 15 is RS 60

The maximum bonus payable is RS 24000 (10000*20%*12months)

The minimum bonus payable is RS 1200 (100*12) (OR) for minors 720(60*12).
1) An Bonus be denied to an employee on the condition that on the day of
declaration of Bonus he was not in employment ?
NO. It violates the provisions of Sec. 8 of the Act.

2) Whether a Probationer is eligible for Bonus ?

A probationer will be eligible for bonus as there is no exclusion in the
definition of ‘employee’ under the Act.
Penalties
Offence

Contraventions of any provisions

Default in complying with Act
Penalty

6 month’s jail and /or Rs 10,000 or both

 Forfeited of Bonus U/S 9
Bonus can be forfeited to an employee who has been dismissed from
service on grounds of fraud, theft, misappropriation, or Damage of
any property of the establishment.

Book Record
Every employer shall prepare and maintain such registers, records and
other documents in such form and in such manner as may prescribed.
The appropriate Government may, by notification on the Official
Gazette, appoint such person as it think fit to be Inspectors for the
purposes of this Act and may define the limits within which they shall
exercise jurisdiction.
 Amendment in the Payment of Bonus Act, 1965
The Cabinet in its meeting held on October 1, 2007 has approved the
Amendments to the payment of Bonus Act, 1965, which are as follows:-

i) Amendment to Section 2(13): To raise the eligibility limit for payment of

bonus from the salary or wage of Rs.3500/- to Rs.10,000 per month.

ii) Amendment to section 12: To raise the ceiling for calculation purpose
from the salary or wage of Rs.2500/- to Rs.3500/- per month, and;

iii) Deletion of section 32(vi): To cover the employees employed through

contractors on building operations .

Source: Press Information Bureau,Government of India.

THANK YOU