Unit – I

Q1) Constitutional Validity of the Minimum Wages Act,

1948

I. Introduction

The Minimum Wages Act, 1948 was enacted to ensure that workers receive a basic minimum wage for
their sustenance and dignity of life. It empowers governments to fix minimum rates of wages for certain
scheduled employments.

However, this Act has faced constitutional challenges, particularly on the grounds of equality (Article
14) and freedom of trade (Article 19(1)(g)).

II. Objectives of the Act

• Prevent exploitation of labor

• Ensure minimum standard of living

• Empower governments to fix and revise wages in scheduled employments

Minimum wage ≠ Fair wage ≠ Living wage

→ Minimum wage is the legal floor, below which wages cannot fall.

III. Key Provisions of the Act

• Section 3: Fixing minimum rates of wages

• Section 5: Procedure for fixing and revising wages

• Section 12: Payment of minimum rates of wages is mandatory

• Section 22: Penalty for non-payment

IV. Constitutional Provisions Involved

Article Provision Relevance

14 Equality before law No arbitrary classification

 19(1)(g) Right to practice any profession Regulation of business by wage laws

23 Prohibition of forced labor Non-payment of minimum wages = forced labor

39(a) DPSP – Equal pay for equal work Supports wage regulation policies

43 DPSP – Living wage for workers Guiding principle

V. Grounds of Constitutional Challenge

1. Arbitrary Classification: Fixing wages only in scheduled employments (Section 3) → claimed to

violate Article 14

2. Violation of Business Freedom: Compulsory wage payment = interference with Article 19(1)(g)

3. Procedural Concerns: Lack of formal trial or adjudication → violation of natural justice

VI. Supreme Court Verdicts on Constitutionality

Bijay Cotton Mills Ltd. v. State of Ajmer (1955 AIR 33)

Facts: Employers challenged the Act as violating Article 19(1)(g)

Held:

• Minimum wages are not arbitrary

• Reasonable restriction under Article 19(6)

• Act is constitutionally valid

Court: Minimum wages prevent exploitation; cannot be waived even voluntarily by workers.

U. Unichoyi v. State of Kerala (1961 AIR 997)

Facts: Validity of Section 5 challenged for arbitrary procedure (committee vs. notification methods)
Held:

• Section 5 gives alternative procedures, not arbitrary

• No violation of Article 14

• State is free to adopt any method based on administrative convenience

Court upheld the legislative wisdom in delegating such powers to State Governments.
 Reptakos Brett v. Workmen (1992)

Significance: Defined components of minimum wage

• Minimum wage must include:

o Food, clothing, shelter

o Children’s education

o Medical care, and

o Provision for unforeseen expenses

VII. DPSP Support for the Act

• Article 39 & 43 clearly direct the State to ensure fair working conditions and wages.

• Minimum Wages Act is a legislative tool to implement these Directive Principles.

Although DPSPs are non-justiciable, they influence interpretation of fundamental rights.

VIII. Balance Between Rights

The judiciary has consistently upheld the balance between Fundamental Rights and Reasonable
Restrictions:

Fundamental Right Restriction Justified By

Article 14 Wage fixation based on rational criteria

Article 19(1)(g) Reasonable restriction under Article 19(6)

Article 23 Non-payment = forced labor

IX. Criticisms of the Act (Still Valid Today)

• Applies only to Scheduled Employments → limited scope

• Enforcement is weak → many violations go unchecked

• No uniform national floor wage (though recently proposed)

• No linkage to inflation automatically (revision is periodic)

X. Recent Developments
 • Code on Wages, 2019: Consolidates four labor laws, including the Minimum Wages Act

• Introduces universal applicability of minimum wages (no more ‘scheduled employments’)

XI. Conclusion

The Minimum Wages Act, 1948, though challenged multiple times, has stood the test of constitutional
validity. The Supreme Court has consistently upheld it as a reasonable restriction under Article 19(6),
and a step towards realizing the socio-economic justice envisioned in the Constitution.

Quick Revision Sheet (Before Exam)

• Act: Minimum Wages Act, 1948

• Key Sections: 3, 5, 12, 22
• Constitutional Articles: 14, 19(1)(g), 23, 39(a), 43
• Landmark Cases:
o Bijay Cotton Mills – Art 19(1)(g) → restriction upheld
o U. Unichoyi – Sec 5 procedure upheld
o Reptakos Brett – scope of wage expanded
• Criticisms: Limited applicability, weak enforcement
• New Code: Code on Wages, 2019 → universal minimum wage

Q2) Procedure for Fixation & Revision of Minimum

Wages and Procedure for Hearing & Deciding Claims

I. Introduction

The Minimum Wages Act, 1948 is a welfare legislation aimed at ensuring a statutory floor wage to
protect laborers from exploitation. One of its most important features is the method of fixation and
revision of minimum wages, and the procedure to claim unpaid wages.

Part A: Procedure for Fixation and Revision of Minimum Wages

Governing Sections: Sections 3 to 5 of the Minimum Wages Act, 1948

1. Fixation of Minimum Wages (Section 3)

The appropriate government (Central or State) is empowered to:

• Fix minimum rates of wages for:

o Time work

o Piece work

o Overtime

o Wage period (hourly, daily, monthly)

Fixation applies to scheduled employments only (as notified in the schedule to the Act)

2. Factors Considered in Fixation

• Cost of living index

• Basic needs (food, shelter, clothing)

• Nature of employment

• Prevailing wages in the region

• Reptakos Brett Case: Added components like medical care, education, social security

3. Revision of Minimum Wages (Section 3(1)(b))

• Must be revised at least once in 5 years

• Can be done sooner if necessary (due to inflation, etc.)

4. Different Rates Can Be Fixed (Sec 3(2))

The government can fix different rates based on:

• Type of work

• Class of employees (skilled, unskilled)

• Locality

• Nature of employment (seasonal, permanent)

5. Procedure for Fixation/Revision (Section 5)

There are two alternate methods available:

A. Committee Method (Section 5(1)(a))

• Government appoints a Committee or Sub-Committee

• Composed of:

o Representatives of employers

o Representatives of employees

o Independent persons (Chairperson)

Committee studies the sector and submits a report with recommendations.

B. Notification Method (Section 5(1)(b))

• Government publishes proposed rates in the Official Gazette

• Invites objections/suggestions from public (within 2 months)

• After considering representations, final rates are notified.

U. Unichoyi v. State of Kerala (1961)

Issue: Validity of alternate procedures under Sec 5

Held: Both methods are valid. Government can choose based on convenience and context.
No violation of Article 14.

6. Publication of Final Notification (Section 5(2))

• After committee recommendation or consideration of objections, the government notifies final

rates

• These rates become binding on the employers

7. Role of Advisory Board (Section 7)

• Government may appoint an Advisory Board to:

o Coordinate committee work

o Advise on fixing and revising wages

Central Advisory Board (Section 8) advises on broader national policy.

Part B: Procedure for Hearing and Deciding Claims

 Sections 20–21 of the Minimum Wages Act

1. Claims for Unpaid or Short-Paid Wages (Section 20)

If an employee is:

• Paid less than minimum wages, or

• Not paid overtime or other benefits under the Act

→ They can file a claim application.

2. Who Can File the Claim?

• Employee himself

• Legal heir (in case of death)

• Inspector under the Act

• Registered trade union or legal representative

3. Authority under Section 20

Appointed by the government:

• Labour Commissioner

• Civil Judge

• Other officers with judicial powers

→ Known as “Authority” under the Act

4. Time Limit for Filing Claim

• Within 6 months of the wage due date

• Delay can be condoned by Authority if sufficient cause is shown

5. Procedure

• Authority conducts summary proceedings (no formal trial needed)

• Both parties are heard

 • Evidence may be taken

• Case must be decided within 3 months, as far as practicable

6. Remedies Available (Section 20(3))

Authority can order:

• Payment of due wages

• Compensation up to 10 times the shortfall amount

Compensation is discretionary

7. Appeal (Section 20(6))

• Appeal lies to Court of Small Causes or District Court

• Must be filed within 30 days

8. Enforcement of Order

• Authority’s order is enforceable as a civil court decree

• Recovery can be initiated by Collector as arrears of land revenue (Section 20(5))

9. Penalty for Non-Payment (Section 22)

• Imprisonment up to 6 months or

• Fine up to ₹500

10. Protection Against Retaliation (Section 23)

Employers cannot dismiss or punish an employee for filing a claim.

Recent Developments

• Code on Wages, 2019:

o Consolidates four wage laws, including Minimum Wages Act

o Applies to all employments, not just scheduled ones

 o Retains advisory boards, wage fixing mechanisms

o Provides for floor wages set by Central Government

Conclusion

The fixation and revision of minimum wages is a statutory obligation that balances employer
affordability and worker dignity. The claims procedure under Section 20 offers a speedy remedy against
wage violations, reinforcing the Act’s goal of ensuring fair, just, and timely payment to laborers.

Quick Revision Sheet (Before Exam)

Fixation & Revision

• Sec 3 – Fix rates for scheduled employments
• Sec 5 – Two methods: Committee / Notification
• U. Unichoyi Case → Both methods valid
• Sec 7 & 8 – Advisory boards
Claims Procedure
• Sec 20 – Authority can order wages + 10× compensation
• Time limit: 6 months (+ condonation)
• Sec 22 – Penalty for non-payment
• Sec 23 – Protection from retaliation
• Appeal → Small Causes or District Court (Sec 20(6))

Short

Q1) Difference Between Minimum Wage, Living Wage,

and Fair Wage

I. Introduction

Wages are a core component of labor welfare. The terms Minimum Wage, Fair Wage, and Living Wage
are often used in wage policy discussions, but they each have distinct legal and economic meanings.

These concepts are part of a wage spectrum — Minimum Wage being the floor and Living Wage
being the ideal.

II. 1. Minimum Wage

 Defined in: Minimum Wages Act, 1948
Minimum wage is the lowest legal wage that an employer can pay to a worker, irrespective of the
industry’s financial capacity.

Features:

• Fixed by appropriate government (Sec 3)

• Based on basic needs: food, clothing, shelter

• Statutory & enforceable

• Paid irrespective of skill or output

Example: A daily wage fixed at ₹350 for unskilled workers in agriculture.

Case Law: Reptakos Brett v. Workmen (1992)

→ Minimum wage must also include education, medical, and some savings.

III. 2. Fair Wage

No statutory definition, but recognized by Royal Commission on Labour (1931) and the Committee on
Fair Wages (1948).

A fair wage is higher than minimum wage but lower than living wage — it adjusts for industry capacity
and prevailing wages.

Features:

• Reflects industry’s paying capacity

• Considers productivity, prevailing wages, and cost of living

• Not fixed by law, but used in collective bargaining / industrial disputes

Example: If the minimum wage is ₹350, fair wage might be ₹500 depending on the employer's ability
and standards in the industry.

Case Law: Crown Aluminium Works v. Workmen (1958)

→ Fair wage must grow with time and profitability.

IV. 3. Living Wage

A living wage is the ideal standard—one that allows a worker to maintain a decent standard of life,
including:

• Health
 • Education

• Recreation

• Insurance against old age, etc.

Recognized under:

• Article 43 of the Constitution (DPSP): “Living wage and decent standard of life for all workers.”

Features:

• Based on moral & constitutional ideals

• Not enforceable by law

• Used as a long-term policy goal

Example: Living wage would be around ₹800 if it accounts for health insurance, child education, rent,
etc.

V. Comparative Table

Feature Minimum Wage Fair Wage Living Wage

Legal Status Statutory (Sec 3) Not statutory Constitutional ideal (Art 43)

Basis Bare survival needs Industry capacity + needs Full human development

Flexibility Fixed by govt Bargainable Ideal, non-binding

Examples ₹350/day (fixed by govt) ₹500 (negotiated) ₹800+ (ideal standard)

Enforcement Yes Through tribunals No enforcement mechanism

Case Law Reptakos Brett Crown Aluminium Referenced in DPSPs

VI. Graphical Spectrum (Mnemonic)

Minimum Wage ← Fair Wage ← Living Wage

Think of them as Good → Better → Best

VII. Conclusion

• Minimum Wage = Legal floor

• Fair Wage = Equitable & economic balance

 • Living Wage = Aspirational constitutional goal
Together, they represent a ladder of wage justice, progressively moving toward dignity and
equity in employment.

Quick Exam Recap:

• Minimum Wage = Sec 3 of MWA, Reptakos Brett

• Fair Wage = Capacity-based, Crown Aluminium
• Living Wage = Art 43 DPSP, ideal standard
• Ladder: Minimum < Fair < Living

Unit – II

Q1) Deductions That May Be Made from Wages and

the Maximum Amount of Deduction

I. Introduction

The Payment of Wages Act, 1936 was enacted to ensure that employees are paid their wages on time
and without arbitrary deductions. While deductions are generally discouraged, the Act allows specific
deductions under strict regulation, and also caps the total deduction amount.

Relevant Sections:

• Section 7 – Deductions permitted

• Section 8–13 – Detailed provisions on fines, absence, damages, amenities, etc.

• Section 6 – Mode of wage payment (cash, cheque, or credit)

II. Who is Covered?

Originally applied to persons earning less than ₹1,600/month, now expanded under State rules and
repealed partially by the Code on Wages, 2019, but still often tested for legal understanding.

Applies to:
 • Factories

• Industrial Establishments

• Railways

• Transport services

III. General Rule

Section 7(1):
No deduction shall be made from the wages of an employee except those authorized by the Act.

This protects employees from exploitation and hidden penalties.

IV. Types of Permissible Deductions (Section 7(2))

Below are authorized deductions under Section 7(2):

1. Fines (Sec 8)

• Must be for acts of misconduct or breach of discipline

• Must be listed in a notice approved by the government

• Cannot exceed 3% of monthly wages

• Must be recovered within 90 days of offence

• Must be recorded and used for employee welfare

Example: Damaging machinery intentionally

2. Absence from Duty (Sec 9)

• If employee absents without notice or permission, employer can deduct wages proportionate
to period of absence

Case Law: Shankar Balaji Waje v. State of Maharashtra

→ Deductions valid only for actual absence, not late arrivals without rules.
3. House Accommodation (Sec 7(2)(c))

• If employer provides house, wage deduction allowed only if employee accepts such
accommodation.

4. Facilities/Services Provided (Sec 7(2)(d))

• Like water, electricity, etc. if authorised by State Government

5. Recovery of Advances or Overpaid Wages (Sec 7(2)(e) & (f))

• Deduction allowed for:

o Advances given

o Wages paid in excess (i.e., clerical error)

o Must follow rules for installment recovery

6. Income Tax or Court-Ordered Deductions (Sec 7(2)(a))

• Deductions for:

o Income tax

o Court orders (e.g., maintenance/alimony)

7. Provident Fund, LIC Premium, Co-operative Society Contributions (Sec 7(2)(h-j))

• Must be authorized and employee must consent if voluntary

Example: EPF deduction @ 12%

8. Recovery for Damages or Loss (Sec 10)

• Deductions for damage caused by employee’s neglect or default

 • Employee must be given a chance to respond (natural justice)

• Must be recorded

Example: Careless driving of forklift

9. Deduction for Strike Days (Unlawful Strikes)

• Allowed only for unlawful strikes or partial strikes

Case: R. D. Mehta v. Union of India

→ Strike deduction valid only if work was actually disrupted.

V. Maximum Amount of Deduction (Section 7(3))

There is a cap on total deductions, even if all types are combined:

Nature of Deductions Max % of wages per wage period

Only general deductions (e.g., fines, house rent, advance) 50% of wages

If including deductions for payments to co-operative societies 75% of wages

Rule of thumb: Deductions cannot reduce take-home pay below 50%, unless for co-op society dues.

VI. Protection for Employees

• Section 15: Employees can file complaint before Authority for wrongful deductions

• Penalty may include refund of amount + compensation up to ₹3,000

VII. Mode of Deductions (Section 6)

• Wages must be paid in:

o Legal tender

o Cheque

o Bank transfer
 This prevents under-the-table wage manipulation.

VIII. Exceptions / Non-Deductible Items

• Deductions not authorized under Sec 7(2) are illegal

• Employers cannot impose arbitrary penalties or recover for general losses not caused by
employee

IX. Enforcement & Penalties

• Inspectors appointed

• Wrongful deduction = offence

• Fine up to ₹7,500 under applicable State rules

X. Conclusion

The Payment of Wages Act ensures that deductions are transparent, fair, and limited. Section 7, read
with other sections, builds a protective legal structure to prevent wage erosion and ensure minimum
financial security for workers.

Quick Exam Recap:

• Section 7(2): Authorised deductions list

o Fines (Sec 8) – max 3%
o Absence (Sec 9) – proportionate
o House, amenities – if accepted
o Advances/overpayments
o Provident Fund, LIC, co-op dues
• Sec 7(3) → Max total deduction: 50%, or 75% (if co-op dues included)
• Sec 10 → Damages: Give employee a hearing
• Sec 15 → Claims authority
• Case: Shankar Balaji, R.D. Mehta
Short

Q1) Concept of Wages under the Payment of Wages

Act, 1936 & Its Object

I. Introduction

The Payment of Wages Act, 1936 is a social welfare legislation aimed at protecting employees
from unjustified delays and unauthorized deductions in wage payments. It regulates timely
payment, methods, and permissible deductions from wages.

II. Object of the Act

The primary objectives of the Act are:

1. To ensure regular and timely payment of wages

2. To prevent arbitrary deductions from wages by employers

3. To empower employees to raise claims through a legal authority

4. To maintain industrial peace by securing wage rights

Before the Act, employers often delayed or manipulated payments—this legislation brought
discipline and accountability in wage practices.

III. Definition of Wages (Section 2(vi))

Wages mean all remuneration (by way of salary or allowances) expressed in money and payable
to an employee if the terms of employment are fulfilled.

This includes:

• Basic Pay

• Dearness Allowance (DA)

• Remuneration for work done

• Overtime wages

• Incentives/bonuses (if contractually due)

 • Commission (linked to performance/sales)

• Any amount payable under court/award/settlement

Components Included in “Wages”

• Salary, DA

• Overtime

• Production bonus

• Leave encashment (if payable)

• Award-settled payments

• Payments under contract or statutory requirement

Components Excluded from “Wages”

As per Section 2(vi):

• Bonus not forming part of employment terms

• Value of house accommodation, light, water

• Employer’s contribution to pension/Provident Fund

• Traveling allowances

• Gratuity

• Retrenchment compensation

• Medical benefits

• Commission not contractually due

Example: If employer gives Diwali bonus as a gift — not wages. But if performance-based
bonus is written into contract — included in wages.

IV. Relevance of Wage Definition

• Determines amount eligible for deductions

 • Helps identify delay or short payment

• Ensures fair legal treatment when employees file claims under Section 15

V. Case Law Reference

Divisional Engineer, Southern Rly. v. S. Shanmugha Vilas Cashewnut Factory

→ Held that commission and allowances must be included if contractually part of the wage.

VI. Who Is an “Employee” under the Act?

• Person earning below wage threshold (now governed under new wage codes)

• Employed in:

o Factory

o Railway

o Industrial establishment

o Workshop or mining area

VII. Importance in Modern Context

• Still relevant where Code on Wages, 2019 not fully enforced

• Ensures transparency in pay structure

• Helps workers challenge wage exploitation

VIII. Conclusion

The concept of wages under the Payment of Wages Act is broad, covering monetary
remuneration tied to employment. It ensures workers are protected, compensated fairly, and
that employers adhere to lawfully mandated payments without unfair deductions or delays.

Quick Exam Recap:

• Object = Timely payment + No arbitrary deductions

 • Sec 2(vi): Wages = monetary remuneration tied to job
• Includes: Basic, DA, overtime, contract bonus
• Excludes: Gifts, accommodation, PF contributions
• Shanmugha Vilas Case → commission counts if in contract

Unit – III

Q1) Provisions Related to Employment of Young

Persons and Children under the Factories Act, 1948

I. Introduction

The Factories Act, 1948 is a key labor legislation enacted to ensure safety, health, and welfare of
workers in factories. A major objective of the Act is to regulate the employment of vulnerable groups,
especially children and young persons, to prevent exploitation and ensure proper development.

Key Sections: Section 67–77

Covers definitions, restrictions, conditions, and certification.

II. Important Definitions (Section 2)

Term Meaning

Child Person who has not completed 15 years (Sec 2(c))

Adolescent Person between 15 and 18 years (Sec 2(b))

Young Person Either a child or adolescent (Sec 2(d))

The law makes a distinction between children and adolescents, treating both under “young
persons.”

III. Prohibition on Employment of Children (Section 67)

“No child who has not completed 14 years shall be required or allowed to work in any factory.”

Absolute ban on employment of children below 14 in factories.

 This provision aligns with:

• Article 24 of the Constitution – Prohibits child labor in factories

• Child and Adolescent Labour (Prohibition and Regulation) Act, 1986

IV. Employment of Adolescents (Section 68)

Adolescents (15–18 years) can be employed, but only if:

• They are medically certified as fit for work (Sec 69)

• The work assigned does not endanger health or safety

Distinction is made between children (<14) and adolescents (15–18).

V. Certificate of Fitness (Section 69)

An adolescent must:

• Be examined by a certifying surgeon

• Receive a Certificate of Fitness to work in a factory

• Carry a Token while at work (showing they’re fit & approved)

Valid for 12 months, subject to renewal

No certificate = No employment

VI. Working Hours of Adolescents (Section 71)

Category Condition

Adolescents (under 18) Cannot work more than 4.5 hours/day

No night work Not allowed between 7 PM and 6 AM

No overtime Even certified adolescents cannot work overtime

VII. Types of Work Prohibited

• Hazardous operations

• Heavy machinery
 • Chemical handling

• Exposure to dangerous fumes, dust, or radiation

Factories Rules (under State jurisdiction) define specific jobs unsafe for young persons.

VIII. Notice of Periods of Work (Section 72)

• Employer must display working hours of young persons in a noticeable format

• No young person can be asked to work beyond prescribed hours

IX. Register of Young Persons (Section 73)

The employer must maintain a register of all young persons employed, containing:

• Name

• Age

• Certificate reference

• Nature of work

• Hours of work

Must be produced for inspection when demanded by Inspector.

X. Penalties for Contravention (Section 92)

If any of the above provisions are violated:

• Imprisonment up to 2 years, or

• Fine up to ₹2 lakhs, or both

Repeat offences attract stricter penalties.

XI. Constitutional & Legal Backing

Provision Relevance

Article 24 Prohibits child labor in hazardous factories

Article 39(e & f) DPSPs – Protect tender age of children

 RTE Act, 2009 Mandates education for children → supports ban

Child Labour Act Updated definition of “adolescent” and “child”

XII. Case Law

People’s Union for Democratic Rights v. Union of India (1982)

→ SC held that non-payment of minimum wages + use of children = forced labor under Article 23

MC Mehta v. State of Tamil Nadu (1997)

→ SC issued directions for gradual elimination of child labor in hazardous industries

XIII. Challenges in Implementation

• Fake age certificates to bypass rules

• Unregistered factories employing children illegally

• Lack of regular inspections

• Delayed certification renewals

XIV. Reforms Under the Code on Occupational Safety, Health & Working Conditions (2020)

• Consolidates Factories Act and other labor laws

• Continues protections for young persons

• Introduces provisions for newer occupational risks

• Strengthens digital monitoring

XV. Conclusion

The Factories Act, 1948 lays down clear and enforceable provisions to protect children and adolescents
from exploitation in industrial settings. The requirement of fitness certification, restricted hours, and
register maintenance ensures a balance between economic needs and physical safety of young
persons.

Quick Exam Recap:

• Sec 67 – Complete ban on <14 years

• Sec 68–69 – Adolescents need fitness certificate
 • Sec 71 – Max 4.5 hours/day, no night shifts
• Sec 72–73 – Display work hours & maintain register
• Article 24 – Constitutional support
• Cases: PUCL v. Union, MC Mehta v. TN
• Penalty: ₹2L fine / 2 years jail under Sec 92

Q2) Measures to Be Taken in Factories for Health,

Safety, and Welfare of Workers

I. Introduction

The Factories Act, 1948 was enacted to ensure that working conditions in factories are safe, hygienic,
and humane. It imposes specific statutory obligations on occupiers to protect the health, safety, and
welfare of workers.

The Act categorizes these protective measures under three main heads:

• Health (Sec 11–20)

• Safety (Sec 21–41)

• Welfare (Sec 42–50)

Part A: Measures for Health (Sections 11–20)

These provisions ensure hygienic conditions inside factories:

1. Cleanliness (Sec 11)

• Factory must be kept clean:

o Daily removal of waste

o Weekly whitewashing or repainting of walls

o Regular sweeping and sanitization

2. Disposal of Wastes (Sec 12)

• Effective arrangements for disposal of industrial waste and effluents

• Must not harm environment or health

3. Ventilation & Temperature (Sec 13)

• Ensure proper air circulation

• Maintain temperature for comfort and health

4. Dust and Fume Control (Sec 14)

• Exhaust systems to remove harmful dust, gases, vapors

Especially important in textile, paint, and welding industries

5. Artificial Humidification (Sec 15)

• Controlled to avoid respiratory disorders

• Must follow rules set by State Govt.

6. Overcrowding (Sec 16)

• At least 4.2 cubic meters space per worker

• Prevent suffocation and disease spread

7. Lighting (Sec 17)

• Sufficient natural or artificial lighting

• Avoid eye strain and accidents

8. Drinking Water (Sec 18)

• Safe, hygienic water at convenient points

• Marked “Drinking Water”

 9. Latrines and Urinals (Sec 19)

• Separate for men and women

• Must be clean and well-ventilated

10. Spittoons (Sec 20)

• Mandatory provision

• To maintain hygiene and prevent disease

Part B: Measures for Safety (Sections 21–41)

These provisions prevent accidents and injuries.

1. Fencing of Machinery (Sec 21)

• Moving parts must be guarded to prevent contact

2. Work on or near Machinery in Motion (Sec 22)

• Workers must not clean or lubricate machines in motion unless authorized

3. Employment of Young Persons on Dangerous Machines (Sec 23)

• Prohibited unless fully trained and supervised

4. Self-Acting Machines (Sec 25)

• Machines should not move into worker’s paths

5. Casing of New Machinery (Sec 26)

• Gears, chains, revolving parts must be enclosed

6. Prohibition of Women Near Cotton Openers (Sec 27)

 • High-risk machines → women prohibited

7. Lifting Machines, Chains, and Lifting Tools (Sec 29)

• Must be tested and certified

8. Pressure Plants (Sec 31)

• Regular inspections needed

9. Floors and Stairs (Sec 32)

• Must be clean, slip-free, and with handrails

10. Safety Officers (Sec 40B)

• Mandatory if factory has:

o 1,000+ workers

o Or hazardous processes

11. Emergency Standards (Sec 41A–41H)

For factories with hazardous processes:

• Risk assessment

• On-site emergency plans

• Worker training

Bhopal Gas Tragedy → led to insertion of Sec 41A–H in 1987

Part C: Welfare Measures (Sections 42–50)

These provisions focus on worker well-being beyond health/safety.

1. Washing Facilities (Sec 42)

• Clean and conveniently located

2. Facilities for Sitting (Sec 44)

• For workers required to stand

3. First-Aid Appliances (Sec 45)

• One first-aid box per 150 workers

• Must be accessible at all times

4. Canteens (Sec 46)

• Compulsory if 250+ workers

• Hygienic food at subsidized rates

5. Shelters, Rest Rooms, Lunch Rooms (Sec 47)

• Mandatory for factories with 150+ workers

6. Creches (Sec 48)

• Mandatory if 30+ women workers

• Must include bedding, trained staff

7. Welfare Officers (Sec 49)

• Factories with 500+ workers must appoint one

8. Working Hours (Sec 51–66) (Welfare through regulation)

• Not more than 48 hours/week

• Overtime compensation

• Weekly holidays
Case Laws

Consumer Education & Research Centre v. Union of India (1995)

→ SC held right to health is part of Article 21. Employer must ensure occupational safety.

M.C. Mehta v. Union of India

→ SC emphasized strict liability of hazardous industries (post-Bhopal gas case)

Recent Developments

• Occupational Safety, Health & Working Conditions Code, 2020

o Consolidates Factories Act and other laws

o Retains core provisions

o Expands scope and digitizes compliance

Conclusion

The Factories Act lays down comprehensive health, safety, and welfare measures to protect workers in
industrial environments. It reflects India's commitment to worker dignity, safe workplaces, and
constitutional rights to health and life.

Quick Exam Recap:

Health (Sec 11–20) – Cleanliness, ventilation, lighting, sanitation

Safety (Sec 21–41H) – Machinery guards, lifting tools, hazardous process control
Welfare (Sec 42–50) – First-aid, canteens, crèches, rest rooms
Key Cases – Consumer Ed. Centre, M.C. Mehta
New Code – OSH Code, 2020

Short

Q1: Concept of Factory under the Factories Act, 1948

I. Introduction
The definition of a factory under the Factories Act, 1948 determines whether the Act applies to
an establishment. It is a jurisdictional definition, triggering all regulatory obligations concerning
health, safety, and welfare.

II. Definition (Section 2(m))

A “factory” means any premises (including precincts thereof) where:

10 or more workers are working/have worked on any day of the preceding 12 months, and
a manufacturing process is carried on with the aid of power,
OR
20 or more workers are working/have worked on any day of the preceding 12 months, and
a manufacturing process is carried on without the aid of power.

The term includes premises used as part of the factory (e.g., warehouses, yards), but
excludes mines, mobile units of armed forces, railway sheds.

III. Key Elements to Note

Element Explanation

Number of workers 10 (with power) / 20 (without power)

Preceding 12 months Applies retrospectively

Manufacturing process As defined under Sec 2(k) – essential condition

Power Electrical or mechanical energy used in the process

IV. Importance of the Definition

• Determines whether the Act applies

• Obligates the employer to:

o Register the factory

o Follow safety & welfare norms

 o Maintain working conditions and hours

V. Case Law

Indian Oil Corporation v. Chief Inspector of Factories (1998)

→ Tank storage terminal used for bottling LPG was held to be a “factory” since manufacturing
(compression and filling) was involved.

Hari Krishan v. State of Delhi (1991)

→ Factory status determined by presence of workers + manufacturing + power, not merely
registration status.

VI. Conclusion

The concept of a factory under Section 2(m) is precisely defined to ensure legal clarity in the
enforcement of welfare and safety standards. The presence of a manufacturing process and
requisite number of workers are the key triggers for applicability.

Q2: Difference Between Worker and Occupier

I. Introduction

The Factories Act, 1948 assigns duties to both the worker and the occupier, making it essential
to differentiate between them. Their roles are legally distinct, carrying separate rights and
responsibilities.

II. Definitions

Term Section Meaning

A person employed directly or indirectly (via contractor) to do manual,

Worker Sec 2(l)
clerical, skilled, unskilled, or technical work for remuneration.
Term Section Meaning

Sec The person who has ultimate control over factory affairs. Could be owner,
Occupier
2(n) partner, director, or manager, depending on entity type.

III. Key Differences

Basis Worker Occupier

Legal Section Section 2(l) Section 2(n)

Role in Factory Performs operational work Controls policy, administration

Employment Employed for wages Employer or managerial controller

Status

Responsibilities Follow safety and work Ensure compliance with health, safety,
norms law

Representation Union member Represents the factory in legal matters

Examples Fitter, welder, supervisor Factory owner, company director

IV. Case Law

J.K. Industries Ltd. v. Chief Inspector of Factories (1996)

→ Supreme Court held that in case of a company, the Managing Director or a nominated
Director is the Occupier, not a mere employee.

V. Conclusion

The worker is the operational backbone of a factory, while the occupier holds ultimate
accountability for ensuring that legal obligations under the Factories Act are fulfilled. Both are
crucial, but with distinct legal identities.
Q3: Manufacturing Process (Sec 2(k))

I. Introduction

The concept of “manufacturing process” is fundamental in determining whether a place

qualifies as a “factory” under the Factories Act.

Section 2(k) provides an inclusive and broad definition.

II. Definition (Section 2(k))

“Manufacturing process” means any process for:

• Making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, or

adapting any article or substance for use, sale, transport, or disposal.

And includes:

• Generating, transmitting, or transforming power

• Printing by letterpress, lithography or other means

• Constructing ships or vessels

• Preserving articles for storage

III. Examples of Manufacturing Processes

Activity Covered under manufacturing process?

Weaving cloth Yes – making article

Bottle washing in soda factory Yes – cleaning + adapting

Printing books Yes – printing

Packing medicines Yes – packing

Running office photocopy No – not manufacturing

IV. Importance of the Term

• Helps decide whether an establishment is a factory under Section 2(m)

• Determines scope of applicability of labor regulations

• Guides safety and health provisions

V. Case Law

Delhi Cloth and General Mills Co. Ltd. v. State of Rajasthan (1980)
→ Court held ‘cleaning and preparing articles for sale’ is a manufacturing process under Sec
2(k).

Ardeshir H. Bhiwandiwala v. State of Bombay (1961)

→ Even power transmission qualifies as manufacturing.

VI. Conclusion

Section 2(k) provides a comprehensive definition that includes both direct production and
supportive processes essential for final goods. It’s a functional definition, ensuring wide
coverage for regulatory safety.