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    V I S H W E S H K O U N D I L Y A

    P G E X P / 0 0 4 / 2 0 1 2 - 1 4

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    Welfare and Working

    Conditions

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    Q 1)What is meant by manufacturing process?

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    Ans.1:- Manufacturing Process means any process for

    I. Making , altering, repairing, ornamenting, finishing, packing,oiling, washing, cleaning, breaking up, demolishing, or otherwise

    treating or adapting any article or substance with a view to its use,sale, transport, delivery or disposal, orII. Pumping oil, water, sewerage or any other substance, orIII. Generating, transforming or transmitting power; orIV. Composing types for printing , printing by letters press,

    lithography, photogravure or other similar process or book

    binding orV. Constructing, reconstructing , repairing, refitting, finishing or

    breaking up ships or vessels orVI. Preserving or storing any article in cold storage

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    Q2) What are the eligibility criteria for the calculation ofannual leave with wages under the Factories Act

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    The main provisions of the Act about the grant of annual leave withwages under Section 79 are:

    A worker shall be allowed in every calendar year, annual leave with wages @ 1day for every 20 days of work performed by him during the previous calendar

    year

    In case of child worker, annual leave with wages @ 1 day for every 15 days of workperformed

    Leave can be accumulated upto 30 days in case of an adult or 40 days in case of achild

    The leave admissible will be exclusive of all holidays, occurring during, or ateither end of the leave period

    Wages for leave allowed shall be paid before the leave begins In case of a worker who is discharged or dismissed from service, quits or dies

    while in service, he or his heir or nominees must be paid wages in lieu of annualleave.

    In such case, the annual leave is to be calculated at the same rate as above butirrespective of whether the worker has worked for 240 days or not.

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    Q3)What is the legal status of a firm engaged in thedevelopment of software solutions? Is it a factory?

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    [Explanation II].- For the purposes of this clause, the mere fact that anElectronic Data Processing Unit or a Computer Unit is installed in anypremises or part thereof, shall not be construed to make it a factory ifno manufacturing process is being carried on in such premises or part

    thereof ;]

    Therefore, it is not a factory.

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    The establishment in the first instance must ensure that they have gota registration certificate from the competent authority as provided u/s7 of the Contract Labour (R&A) Act, 1970 before proceeding to engagethe contract labour.

    The establishment must ensure that they issue certificate in Form V to

    the contractor for obtaining license as provided u/s 12 of the Act.

    It must be ensured that the contractor who is employing more than 20persons has a valid licence issued in his name by the competentauthority as provided under section 12 of the Act.

    The payment of wages to the employees employed by the contractor isdisbursed to his employees by the contractor himself or his nomineeand principal employer has to depute his representative to be presentand sign the payment register in token of having disbursed the salaryin his presence by the contractor.

    Q4) Indicate the implications of job contract from laboursupply contract under the contract labour Act?

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    There should not be any direct supervision and control by the principalemployer in respect of employees employed by the contractor to fulfillthe obligation of the contract.

    The work for which contract labour is engaged is not of perennialnature.

    Discipline of the employees of contractor in the discharge of duties mustbe regulated by the contractor and not by the principal employer.

    Leave to the employees of contractor must be sanctioned by the

    contractor and not by the principal employer.

    That the agreement to be entered into with the contractor should bedrafted and executed on a non-judicial stamp paper.

    Q4) Indicate the implications of job contract from labour supplycontract under the contract labour Act?

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    That the agreement must disclose the names, addresses of thecontractor and the principal employer.

    That the agreement must specify the rights and obligations of both theparties.

    That the agreement must disclose the place of work, time of working,rate of compensation and consequences of breach of contract andprocedure for termination of the agreement by both the parties.

    That the agreement must also disclose the scope of work, deploymentof manpower in number, period of validity, security deposit and terms

    of payment to the contractor. That the agreement should be witnessed by two witnesses.

    Q4) Indicate the implications of job contract from labour supplycontract under the contract labour Act?

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    Q5) What do you understand by outworker? How do you ensure

    enforcement of the provisions of the Factories Act in respect ofoutworkers?

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    outworker-a person to whom any articles and materials are given out by oron behalf of the principal employer to be made up, cleaned, washed, altered,ornamented, finished, repaired, adapted or otherwise processed for sale forthe purposes of the trade or business of the principal employer and theprocess is to be carried out either in the home of the out-worker or in some

    other premises, not being premises under the control and management of theprincipal employer.

    outworker- they are not covered under the provisions of the Factories Act.It may be noted that these are the work or processes related to or "for thepurposes of the trade or business of the principal employer" and can be

    carried out either in the home of the out-worker or in some other premises,not being premises under the control and management of the principalemployer

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    Q6)What guidelines should the government follow while abolishingcontract labour system in any employment/establishment?

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    Certain circumstances under which the registration of an establishment canbe revoked. :

    The Registering Officer, after affording reasonable opportunity to thePrincipal Employer, the holder of the Certificate of Registration can revokethe registration of an establishment with the previous approval of the

    appropriate State of Central Govt. in case he is satisfied that :-

    1. The registration has been obtained by mis-representation or suppression ofany material facts or.

    2. The registration has become useless or ineffective for any other reason asspecified in the schedules will be advised by the local labour department.

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    Q7) What is meant by outsourcing? What are its implications inthe context of Contract Labour Act

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    the term outsourcing has not been defined under Contract Labour Act.

    Outsourcing - When an employer engages somebody else to deliver aspecified result where employer is not involved with the man powerengagement or supervision or control activity over such man power. If any

    activity which is outsourced to someone and carried outside the premises ofthe principal employer, such manpower engaged will not be termed asworkman under Contractor Labour Act.

    When the jobs and services are outsourced and are carried out in some other

    premises not being premises under controlled and management of theprincipal employer, Contract Labour Act will not apply. For all other jobs andservices outsourced which are carried out in the premises of the principalemployer will be covered under the Contract Labour Act.

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    THANKS