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Unit 13: Industrial Relations

Factories Act, 1948 Notes

This Act is divided into twelve chapters covering 141 sections, which again are supplemented by
three schedules. The first Act was enacted in 1881 to regulate working conditions in factories
primarily for women and children and to provide them health and safety measures. The new Act
of 1948 replaced the earlier one and through a series of amendments made from time to time, the
Act is now more comprehensive covering all areas of working conditions of labour.

The Shops and Establishments Acts

The Act in essence a state legislation. It seeks to regulate the working conditions of workers in
the unorganized sector, including shops and establishments which do not come under the
Factories Act Regulations.

Wage-related Labour Legislations

Legislations laying down the methods and manner of wage payment as well as the minimum
wages come under this category:

The Payment of Wages Act, 1936

The Act is intended to regulate payment of wages in a particular form at regular intervals
without any unauthorised deductions. It is applicable to the employees receiving wages below
1,600 per month. As per the Act, employers are responsible for payment of wages to the
employees duly fixing the wage periods (which in no case should exceed one month), deciding
about time of payment as per the norms (which requires payment within seven days of the
expiry of the wage period.

The Minimum Wages Act, 1948

The Act provides for minimum statutory wages for scheduled employment. The Act also stipulates
maximum daily working hours, weekly rest and overtime. The Act empowers the State
Government to fix minimum wages, failing which they cease the right to engage labour and run
the industry.

The Payment of Bonus Act, 1965

The Payment of Bonus Act, 1965 imposes statutory liability on employers (covered under the
Act) to pay bonus to employees according to the prescribed formula, linking the bonus with
profits or productivity.

Social Security Labour Legislations

They cover those legislations, which intend to provide to the workmen, social security benefits
under certain contingencies of life and work.

The Workmen's Compensation Act, 1923

Factories and establishments which are not covered under the Employees State Insurance Act,
are covered under this Act to provide relief to workmen and/or their dependents in case of

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