Concept Of Minimum Wages in India

ActBasisMechanism
Workmens’/ Employees’ Compensation Act 1923The compensation to the employees and their dependents is made for temporary, partial or permanent disablement and death. Mention of the terms clerical and casual employees but not unorganized workers. The compensation for unorganized workers gets covered in the ‘Unorganised Workers Social Security Act’. Amount of compensation depends on the nature of the injury, the wages and the age of the employee.  The minimum and maximum compensations for death or disability are fixed and get revised from time to time. The minimum compensation limits in the amendment are extended to RS. 1,20,000 and Rs. 1,40,000 from the earlier 80/90,000.Funeral expenses are covered.Reimbursement of medical expenditures incurred from the injuries during the course of employment.Explain the shit about half monthy payments – which makes no sense at all – acc to me full reimbursements need to be made. 
Minimum wages Act 1948The vulnerability and  exploitation of minimum wages for workers in the informal sector led to the formulation of this Act.Two categories of workers namely,  agricultural and non agricultural employees. Connections to other ACTS : Employees’ State Insurance Act@national, state and regional levels. – decentralized? Inclusionary – formal and informal workers.  Question –  are domestic workers included under this act? – news report – http://www.indianexpress.com/news/minimum-wage-to-maternity-leave-domestic-help-policy-almost-home/946324/                               Both Central and State Governments can review, revise and fix the minimum wages.Minimum wages fixed / revised by two ways : Committee Method and Notification method.  (in the notification method, the affected people in the scheduled employment can make a notification)The minimum wages are fixed / revised according to the consumer price index numbers and variable dearness allowance which are related to mitigate the impacts of inflation. The Consumer Price Index Numbers show the price changes in the specified group of goods for each item and are used to assess the price changes associated witht eh cost of living. It could be summed up as an ‘inflationary indicator’.The variable dearness allowance is fixed/ revised twice in a year – once in April and then in October. The enforcement of the Act is aided by the Chief Labor Commissioner at the central level and by the State Enforcement Machinery at the State Level. Apart from the State and Central Spheres, Regional committees are formed to fix  uniformity in wages at the regional level.   
Punjab Industrial Housing Act 1956 “Allotment” means the grant by the state government towards the right of use and occupation of any house to any person.This Act applies to houses constructed by the State Government for the occupation of Industrial workers under the Subsidised Industrial Housing Scheme by the Central Government, 1952.  The State Labor Commissioner is responsible for the allotment of houses.An unauthorized occupation of the allotted house occurs if the allottee ceases to be an industrial worker or the occupation prescribed as per the Labor commissioner. The allottee is bound the agreement made under the Act.The most ridiculous clause ! – the Labor Commissioner or the competent authority may with assistants can enter at all reasonable hours into any hosue, which he considers necessary to enter for purposes of administering or carrying out the provisions of this Act— plus the jurisdiction of courts BARRED?!—how can a person make an appeal (as stated in clause 20 ‘ right of appeal’) if the jurisdiction of courts is barred? He makes an appeal to the state government and not to the courts??Eligibility of Allotment : Strictly for those earning upto Rs.500 per month. houses will first be allotted to those earning less than Rs. 350 per month . And the workers earning more than Rs. 350 per month will have to pay additional rent equivalentto 50% of the interest payable on the subsidy for the house. In case their monthly income exceeds Rs. 500 they are liable for full economic rent. What if the co resident of the indusitral worker is not a son/ daughter, husband /wife and has been a resident of the house for more than 6 months, then why shouldn’t he/she be allowed to retain residence of the house? (live in partner?)10% of the allotment can be fucking made out of turn for reasons recorded for each case? Who decides these reasons.Out of the 10% , 2% is allotted for handicapped people except for the deaf?? – fucked up! – what about mentally ill?Lottery system for allotment .
Maternity Benefit Act 1961  
Contract Labor (regulation and Abolition) Act 1970Basically, in a contract labor system, the employer hires a contractor who in turn employs workers  for a period of time. With the contract labor at in place, the prinicipal employer, the contractor and the workers  are bound   To prevent exploitation of labor – formal and informal – in terms of wages paid and working conditions provided for the employees working under contract labor. The Act does not purport to abolish contract labor system in its entirety, but provides the abolition of contract labor in appropriate cases. Every organization, which works with contract labor, that has 20 or more employees has to register itself under the contract labor act.It does not apply to the establishments wherein the nature of work is seasonal or intermittent. If there is a question about the nature of work performed, the appropriate government is responsible to take decision on it.STATE AMENDMENT – Maharashtra. —In section 1, in sub-section (5), after clause (b), add the following clause, namely:— “(c) Notwithstanding anything contained in clause (b) or any other provisions of this Act, the work performed or carried out in the area of Special Economic Zone(declared as such by the Government of India), which is of ancillary nature such as canteen, gardening, cleaning, security, courier services, transport of raw material and finished products, or loading and unloading of goods within the premises of a factory or establishments which are declared 100 per cent. export units by Government, required to achieve the objective of a principal establishment in the said area, shall be deemed to be of temporary and intermittent nature irrespective of the period of performance of the work by the workers in such ancillary establishments.” STATE AMENDMENT – Andhra Pradesh  – core activity does not include sanitation works, sweeping, cleaning, dusting and collection and disposal of all kinds of waste; watch and ward services including security service; canteen and catering services; loading and unloading operations; running of hospitals, educational and training institutions, guest houses, clubs and the like where they are in the nature of support services of an establishment; courier services which are in nature of support services of an establishment; civil and other constructional works, including maintenance; gardening and maintenance of lawns, etc.; house keeping and laundry services, etc., where they are in nature support services of an establishment; transport services including ambulance services; any activity of intermittent in nature even if that constitutes a core activity of an establishment; and any other activity which is incidental to the core activity: Provided that the above activities by themselves are not the “core activities” of such establishment.’ Constitution of Central and State Advisory Boards to advise the Central and State Governments respectively on the Act. Industrial Courts have no jurisdiction to determine the question as to whether contract labor should be abolished or not. No specifications given for the rest rooms to be provided for contract labor.What is determined as something done in “GOOD FAITH”  and who decides it, in order not be condemned by the court?
Bonded Labor (abolition)Act 1976This Act provides for the abolition of bonded labor system with a view to prevent the economic and physical exploitation of ‘weaker sections of the society.Terms of forced labor according to social custom –  Adiyamar, Baramasia, Basahya, Bethu, Bhagela, Cherumar, Garru-galu, Hali, Hari, Harwai, Holya, Jana, Jeetha, Kamiya, Khundit-Mundit, Kuthia, Lakhari, Munjhi, Mat, Munish system, Nit-Majoor, Paleru, Padiyal, Pannayilal, Sagri, Sanji,Sanjawat, Sewak, Sewakia, Seri, VettiBonded labor system means the system of forced, partly forced labor under which the debtor enters or is presumed to have entered.  Every obligation of a bonded laborer( as the one defined in the Act) to repay any bonded debt is deemed extinguished under the commencement of this Act.No suit of other proceeding shall lie in any civil court towards the recovery of such bonded debt.Forcibly taken property belonging to the bonded laborer returned to him/her.Property of bonded laborer under mortgage in connection to bonded debt, to be freed. District Magistrate given the authorities under the State Government to exercise, impose powers against the bonded labor system. The duty of the District magistrate is to promote the welfare of the freed bonded laborer by securing and protecting the economic interests of such bonded laborer.Vigilance committees appointed by the State Gvernment for each district and sub division. They include – Distrcit Magistrate or the Chairman nominated, two social workers nominated by the district margisatrate from the district, 3 persons representing non official, official agencies connected with rural development nominated by the State Government; one person represented by the financial and credit institutions of the District, nominated by the District Magistrate.3 persons belonging to the scheduled castes and scheduled tribes nominated by the district magistrate. The vigilance committee is responsible to co ordinate the functions of the rural banks and co operative societies with a view to canalizing adequate credit to the freed bonded laborer; to make a survey for any offence to be taken into cognizance under this Act; to defend any suit instituted against the freed bonded laborer ;No mention of banks in the urban areas – bonded labor in the urban areas??The central government by the notification of the official gazette makes the rules for carrying out the provisions under this Act. 
Interstate Migrant Workers’ Act 1979 (regulation of employment and condition of service)To prevent the exploitation of migrant workers.“interstate migrant worker means a person recruited by or through a contractor in one State under an agreement or other arrangement for employment in another State, with ot without the knowledge of the principal employer.Question – what about migrant workforce not employed under any contractor, who don’t have a residence proof in the State apart from their state of origin?Relation to other Acts : Workmen’s Compensation ActPayment of Wages ActIndustrial Disputes ActEmployees State Insurance ActEmployees Provident Funds and Miscellaneous Provisions ActMaternity Benefit ActRegistration of the establishment employing interstate migrant workers with the registration officer appointed by the government.Applies to the organizations employing five or more interstate migrant workmen?Registration of licenses to contractors employing interstate migrant workers.There is no decentralization for review of these contractors.The contactor is responsible to issue passbooks in Hindi/English or in the language of the workman ascertaining the job title, period of employment, proposed payment of wages, return fares. The wages paid to the migrant workers should not be less than that as specified in the Minimum Wages Act, 1948.All the wages have to be paid only in cash and not any other form.The contractor is responsible to pay the interstate migrant worker a displacement allowance ‘equal to 50% of the monthly wages payable or Rs.75 , whichever is higher’.**in case the contractor is not able to pay or provide facilities for  the workers, the principal employer is responsible for the same.**The term “ appropriate government” responsible for appointing “inspectors” to  review licenses and this ACT is not defined at all.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 knowledgeof the inspector or authorised person concerned:Provided that where the offence consists of disobeying a written order made by an inspector or authorised person, complaint thereof may be made within six months of the date on which the offence is alleged to have been committed.”Now in such a condition what happens if the contractor tries to hide all the evidence for more than six months of time ? the government has the power to ‘exempt special cases’.Central government has the power to direct the State governments in carrying out the provisions under this Act.  
Building and other construction workers’ Act 1996 (regulation of employment and condition of service)Given the temporary nature of work relating to construction workers and the vulnerability of these to accidents and welfare therein, this Act provides a comprehensive Central legislation for regulating the safety, welfare and other conditions of sevice relating to the construction workers.This Act applies to every establishment which employs or had employed 10 or more building workers in any building or construction work.Building and construction Welfare funds established at state levels and national level. Government has been empowered to fix the number of hours of work for a building worker, to provide for a day of rest in every period of 7 days and for the payment of remuneration in respect of such days of rest, to provide for payment of work on a day of rest at a rate not less than the overtime rate, under this Act.Relation to acts : Workers Compensation Act, 1923.Gazetted officers of the Government to be the “Registering officers” for the purposes of this Act.Every Employer has to register his/her establishment with registering officer.The registration officer can revoke such registration in case of discrepancies as stated in the Act.The Central Government is responsible to constitute a Committee called “The Central Building and other Construction Workers’ Advisory Committee “ . it consists of a Chairperson appointed by the Central Government; 3 members of parliament elected by the House of the People and one by the Council of State Members; Director – General (an ex official??); 9 to 13 members nominated by the Central Government to represent employers, building workers, associations of architects, engineers, accident insurance institutions and any other as may seem appropriate by the central Govt. (**number of members representing the building works should not be less than that of the employers**)does it include representation by the trade unions?Similar pattern of representation is used for formulating the State Advisory committee.Expert Committees appointed by the Central /appropriate government consisting of a “specially qualified persons in building and other construction work” for advising on rules made by the Government.Every building worker who is between the age of 18 and 60 and who has been engaged in any building or other construction work for not less than ninety days during the last 12 months is eligible for registration as a beneficiary of the Building and Other Construction Workers’ Welfare Fund.  Application is for Rs.50. Identity cards issued by the Construction Welfare Boards to registered building workers which includes the details of the building and other construction work done by the worker.PENSION FUNDS FOR CONSTRUCTION WORKERS ABOVE THE AGE OF 60 WHEN THEY CEASE TO RECEIVE FUNDS FROM THE Welfare Boards?A registered beneficiary, until he attains the age of sixty years, has to contribute to the Fund at the rates specified by the State Government. If any beneficiary is unable to pay his contribution due to any financial hardship, the Building and Other Construction Workers’ Welfare Board can waive the payment of contribution for a period not exceeding three months at a time. If any beneficiary fails to pay his contribution for a continuous period of not less than one year, he ceases to be a beneficiary of the Fund, unless for a reasonable condition.The Welfare Board provides for assistance in case of accident,  sanction loans for construction of house not exceeding amount “ as prescribed??; financial assistance to the education of children of beneficiaries; medical expenses for treatment of “major” ailments; payment of maternity benefit; provision and improvement of welfare measure and facilities;  loan or subsidy to the local authority or employer for the scheme approved by the State government in relation to the welfare of building workers. Grants or loans can be made by the Central Government to the Welfare Boards.THERE HAVE BEEN NO ‘TEMPORARY SHELTER’ BUILDING SPECIFICATIONS PROVIDED FOR THE CONSTRUCTION WORKERS ON SITE.THE NUMBER OF OFFICIALS APPOINTED BY THE GOVERNMENT FOR INSPECTION OF THIS ACT IS NOT SPECIFIED AND IS UPTO THE LOCAL AUTHORITY OR THE STATE GOVERNMENT TO DECIDE UPON ITS NUMBER ACCORDING TO THE LOCAL LIMITS. – A SPECIFIC STRUCTURE OF INSPECTION NEEDS TO BE DESIGNED TO MAKE THINGS WORK ON GROUND.-  the employer is responsible to notify the Inspector having the jurisdiction in the area, 30 days before project/ building construction commencement.The appropriate Government may, after consultation with the expert committee, by notification, make rules for carrying out the provisions of this Act.
National Urban Housing and Habitat policy 2007 (affordable housing for all)       
Unorganised Workers’ Social Security Act 2008Includes : home based workers (not domestic workers – refer to the definition of home based worker). “unorganised sector” means an enterprise owned by individuals or self-employed workers and engaged in the production or sale of goods or providing service of any kind whatsoever, and where the enterprise employs workers, the number of such workers is less than ten.”unorganised worker” means a home-based worker, self-employed worker or a wage worker in the unorganised sector and includes a worker in the organised sector who is not covered by any of the Acts mentioned in Schedule II to this Act.Relation to Acts :Workmens’ Compensation ActIndustrial Disputes ActEmployees State Insurance ActEmployees Provident Funds and Miscellaneous Provisions ActMaternity benefit ActPayment of Gratuity ActSocial Security Schemes for the unorganised workers :Indira Gandhi National Old Age Pension schemeNational Family Benefit SchemeJanani Suraksha YojanaHandloom Weavers’ Comprehensive Welfare SchemeHandicraft Artisans’ Comprehensive Welfare SchemePension to Master Craft personsNational Scheme for Welfare of Fishermen and Training and ExtensionJanshree Bima YojanaAam Admi Bima YojanaRashtriya Swasthya Bima YojanaAbove schemes are at times for BPL workers. An amendment to the Act is required to include unorganised workers under these schemes.    Central government is responsible to formulate and notify welfare schemes for the unroganised workers relating to – Life and disability cover, health and maternity benefits, old age protection and other benefits as seemed suitable.The State government is responsible to frame welfare schemes for – Provident fund, employment injury benefit, housing, educational schemes for children, skill up gradation of workers, funeral assistance, old age homes.Central government is responsible for the constitution of the National Social Security Board, which would consist of :Union minister of Labor and Employment; Director General (labor Welfare) member ; 34 members nominated by the Central Govt to include:7 – representing unorganized workers7 – representing employers of unorganized workers7 – Representing eminent persons from civil society ??? huh??2 – members of Lok Sabha 1- member of Rajya Sabha5 – representing Central Gov. Ministries and departments concerned5 – representing state governmentsThe Act briefly states that there has to be “adequate” representation by women and minorities.The National Social Security Board is responsible for :Recommending/ advising on schemes to the central Govt.Monitoring Social Welfare Schemes for unorganized workers.Reviewing and issuing identity cards to the unorganized workers.Review of expenditures and record keeping functions of the State governments and funds under various schemes The State government is responsible to constitute a State Social Security Board , which would consist of the following members :Minister of Labor and Employment of the concerned State; Principal Secretary (labor) ; 28 members nominated by the State Gov. to include the following :7  – representing unorganized workers7- representing employers of unorganized sector2- members of Legislative Assembly5 – eminent persons of civil society7 – Representing concerned State Gov. depts.Record keeping functions of the Act are the responsibility of the District Administration – District panchayats in the rural areas and Urban Local Bodies in the urban Areas. Worker Facilitation Centers to be set up by the State Government for :Disseminating information on social security schemes.Processing of application forms.Assisting unorganized worker to obtain registration from the District Administration. Facilitating enrolment of registered unorganized workers in social Security schemes.Eligibility for registration :14 years of age and aboveSelf-declaration confirming the unorganized worker status –?? How??If a scheme requires contribution b the worker, then he has to make the contribution to be eligible for the benefits of the Scheme. Nothing contained in this Act shall affect the operation of any corresponding law in a State providing welfare schemes which are more beneficial to the unorganized workers than those provided for them by or under this Act.    
Domestic Workers’ (Registration, Social Security and Welfare) Act 2008Absence of any legal protection to domestic workers. Need for a comprehensive legislation for domestic workers. But the question is why do you need to formulate another act when the domestic workers could be included under the unorganised workers act and contract labor act.“Domestic Worker” means, a person who is employed for remuneration whether in cash or kind , in any house hold through any agency or directly, either on a temporary basis or permanent, part time or full time to do thehousehold work or allied workEXPLANATION: household and allied work includes but is not limited to activities such as cooking or a part of it, washing clothes or utensils, cleaning or dusting of the house, caring/nursing of children/sick/old/handicappedRelation to other Acts :Minimum Wages ActCentral Advisory committee to be constituted review and advise on the provisions of the Act and also advise the State Boards, prescribing minimum standards to achieve Decent Conditions of Work, recommend strategies to eliminate Child Labor.The State Board apart from reviewing and monitoring the functions of the District Boards, is responsible to allocate funds to District Boards for the domestic workers welfare fund. It is also responsible to prescribe fees  to be charged from the employers, service providers and domestic workers.The District Boards are required to designate Workers’ Facilitation Centres for facilitating registration of workers at Local Panchayati Raj Institutions or urban local bodies; redisdent welfare associations/ society and Non profit organisations working among the Domestic Workers.The District Boards are responsible to issue INDENTITY CARDS to domestic workers, Review and renewal of such registrations, collect and distribute funds for the beneficiaries of the WELFARE FUND.The employer or the middlemen who employ such domestic workers are required to register under the District Board for the fee prescribed. DOMESTIC WORKERS WELFARE FUND :  Consists of Grants made by the Central Government; administered by the State Boards for allocation and administration of funds.The registration of the domestic worker is nullified when he attains the age of 60 or when he/she  is not registered as a domestic worker for not less than 90 days in a year.Duties of the employer and service provider : allow an annual leave of 15 days with wages ; allow a daily rest period of at least 10 consecutive hours between ending and commencing of work.
NREGA 2005This Act provides for the enhancement of livelihood security of the households in the rural areas of the country by providing at least 100 days of guaranteed wage employment in every financial year to every household whose adult members volunteer to do “unskilled manual work” for matters connected with the Act.Wages to be calculated as wage per day.Every State responsible to make a scheme under the provisions and rules of this Act.Notwithstanding anything contained in the Minimum Wages Act 1948, the Central Government may be notification specify the wage rate for the purposes of this Act, considering the wage rate not to be less than Rs. 60 per day and that different wage rates may be specified differently for different areas.If an applicant is not provided with employment after 15 days of his application, he would be entitled to a daily unemployment allowance under this Act.Constitution of Central Council called as Central Employment Guarantee Council to discharge functions and perform duties as assigned under this Act. It consists of the following :Representatives of the Central Ministries including the Planning Commission. (number not specified)Representatives of the State Government. (number not specified)Not more than 15 non official representatives of the Panchayati Raj Insitutions, organization of Workers and disadvantaged groups.The central council is responsible for :Establishing a central evaluation and monitoring system. (what is this evaluation all about? Or what is the structure of this evaluation? Ans – collect statistics pertaining to the rural economy and the implementation of Schemes.)Constitution of State Employment Guarantee Council for:Advising the State government on matters related to the Scheme.Determining the preferred works.Providing the widest possible dissemination of information about this Act and the Schemes under it.Collect statistics pertaining to the rural economy and the implementation of Schemes.District Level :The District Programme Co ordinator shall assist the Panchayat at the district level in discharging the functions of this Act.To consolidate and plan project proposals from the implementing agencies to ensure applicants are provided employment.  Panchayat Level :Appointment of Programme Officer at intermediate level below the Block Development Officer, to assist the Panchayats at intermediate level. The programme officer is responsible for supplying each Gram Panchayat with muster rolls for the works sanctioned. The Gram Sabha  is responsible for conducting regular Social Audits made by the Gram Panchayat.Who advises the Gram Panchayat on making development plan for the villages? – Section Creation of Funds at National and State Level.Registration of employees under this Scheme and issue of JOB CARDS.    
Credit Guarantee Scheme for Micro and Small EnterprisesProvides guarantee for credit facilities to borrowers in Micro and Small enterprises.  
  • The question remains to be asked is that on the violation of the above mentioned Acts and regulations is a fine of Rs. 1000 to Rs. 2000 sufficient and a term of imprisonment ranging from 3 to 6 months sufficient? 
  • The Workmen’s Compensation Act which was amended to Employees Compensation Act in 2009 includes the term clerical and casual workers. Do these terms equate for unroganised workers? – the unorganised workers social security act covers this. The employment Insurance Act also covers this for BPL families. Why are there three acts needed  in the first place? Why can’t they be amalgamated into one?
  • Does the representation in the Central and State Advisory committees for Building and other Construction workers include the nominations of trade union members?
  • What about Welfare funds for Construction Workers above the age of 60, when they cease to receive benefits from the Welfare Board??
  • Does the unorganized workers social security act have representation by the unorganized workers trade unions , if any?
  • What is the representation structure in terms of percentages in the Trade Unions (with respect to organized and unorganized workers)?

Notes :

Minimum Wages Act 1948 – The concept of Minimum Wages was first evolved by the International Labor Organization in 1928 with reference to the remuneration of workers in those industries where the level of wages was substantially low and the labor was vulnerable to exploitation, being not well organized and having less bargaining power.  The minimum wages act relates majorly to the informal sector or the unorganized[1] sector in India.  The recommendation for the fixation and revision of the minimum wages is done by the advisory committee and sub committee appointed by the government of India. The minimum rate of wages consists of basic wage and special allowance known as the ‘variable Dearness Allowance (VDA)’ linked to the Consumer Price Index Number.  The allowance is revised twice in a year, once in April and then in October. 

Workmen’s Compensation Act 1923 – Amendment in 2009 – Employees’ Compensation Act:

The term ‘workman’ is replaced by the term ‘employee’ defining the inclusion of casual and clerical employees which were erstwhile excluded, in the amendment to the Act in 2009. 

What is the difference between Employees State Insurance Act 1948 and Employees/Workmens Compensation Act?

The Factory workers are covered ESI (i.e., Emplyees’ State Insurance Scheme) scheme. Under this some percentage of worker’s salary is deducted, the matching amt is contributed by the employer and the total goes to the Govt. which runs hospitals with the amount so collected and the Govt also contributes some money. Any worker who falls ill and his dependents are entitled to receive treatment from ESI Hospitals free of cost. http://qna.rediff.com/questions-and-answers/what-is-the-difference-between-workmen-s-compens/1438664/answers

Under the Workmens’ Compensation act if a worker gets disability (Total or partial, temporary or permanent because of an accident during the course of employment, then the employer is liable to compensate him. By taking an insurance policy, the employer may transfer his liability under this Act to the insurance company.

Every Act has to have some theme before being enacted by the Government of India. Likewise ESI Act, 1948 and WC Act, 1923 also having somewhat similar type of theme but with some different features with somewhat similar objective and i.e. to provide certain benefits to the employees in case of employment injury (Accident) & others.

ESI Act, 1948 is having Wages ceiling but whereas WC Act does not have any wages ceiling. ESI Act has coverage area but WC Act has no coverage area rather we can say in Lehman language that wherever ESI Act is not applicable, WC Act comes into the picture.

So I think saying ESI Act, 1948 makes WC Act, 1923 obsolete will be wrong because suppose if an accident happened to an employee whose Wages/salary is more than Rs.15000/- p.m. on the date of accident and the area where the factory/establishment located is also within the coverage area of ESI Act and he was not a subscriber as per ESI Act, then there will be no remedy available in the Indian Legal System so that the person/dependants will get compensation merely because his salary is more than Rs. 15000/ p.m and the area is covered by ESI Act in which he has no contribution.

So in this type of case WC Act Comes into the picture and the existence of ESI Act in that will hold no good. Attribution: http://www.citehr.com/308431-esic-act-vs-compensation-act.html#ixzz20Dqtp3NG

Employees State Insurance Act explained  – http://statuatorycompliance.blogspot.in/2009/07/employee-state-insurance-act-1948.html

Contract Labor Act 1955 :

The contract labor exists when an employer hires a contractor to get a job done and the contractor in turn hires a set of laborers for the particular job. In such a condition, the laborers are not in contact or neither are in any contract with the principal employer. Such laborers are termed to be called as ‘Contract Laborers’. In most of the cases the exploitation and abuse of such labor exists when the laborers are paid less than the minimum wage that the work officially dictates and are subordinated under poor working conditions.  

The question of the application of abolition of temporary work under this Act,  remains to be asked as there is a large migrant workforce in India, which exists on different temporary works available.  – does the objective of the ACT actually demand abolishing all kinds of temporary work?

***Explain the two contradicting judgements passed in 2 of the Landmark cases. ***

The subterfuge by principal employers that the workers employed are for a temporary period of time and that the work performed is not regular for the organization, is the most prevalent illegality in many of the industries across India today.


[1] Definition of Unorganized/ informal Worker :

The first National Commission on Labour, under the Chairmanship of Justice Gajendragadkar, defined the unorganised sector as that part of the workforce ’who have not been able to organise in pursuit of a common objective because of constraints such as (a) casual nature of employment, (b) ignorance and illiteracy, (c) small size of establishments with low capital investment per person employed, (d) scattered nature of establishments and (e) superior strength of the employer operating singly or in combination.’ The Commission listed ’illustrative’ categories of unorganized labour: ’These are: (i) contract labour including construction workers; (ii) casual labour; (iii) labour employed in small scale industry; (iv) handloom/ power-loom workers; (v) beedi and cigar workers (vi) employees in shops and commercial establishments; (vii) sweepers and scavengers; (viii) workers in tanneries; (ix) tribal labour; and (x) ‘other unprotected labour’ (p.417). 7.12 The National Commission on Self-Employed Women, set up in 1987 under the Chairpersonship of Smt. Ela R. Bhatt, included in their terms of reference, the women workers in the unorganised sector. This report characterised the unorganised sector as one in which women ’do arduous work as wage earners, piece-rate workers, casual labour and paid and unpaid family labour.