Prepared by,

T. Siva Kumar

Compiled from:
Elements of Mercantile Law by N.D.Kapoor (2007),
http://labour.nic.in/act/welcome.html
Various postings in www.citehr.com
Law
What is law?
Law includes all the rules & principles which regulate our
relations with other individuals & with the state.

Object of law?
To establish socio-economic justice and remove the
existing imbalance in the socio-economic structure.

Need for the knowledge of law?

Ignorance of law is no excuse.
Mercantile/Business/Commerci
al Law
What is it mean?
It deals with contractual situations and the right &
obligations arising out of mercantile transactions
between mercantile persons.

Sources of Business Law?

English Mercantile law
Statute Law
Judicial decisions or the system of precedents
Customs & usages
The Indian Contract Act,
1872
Object?
Branch of law which determines the circumstances
in which promises made by the parties to a
contract shall be legally binding on them.

Contract = Agreement + Enforceablility by law

(Legal obligation not a Social obligation)
Agreement = Offer + Acceptance (In genuine
consent)
Essentials of valid contract
1. Offer and acceptance - 2 parties one party making the
offer, other party accepting the offer, terms of offer must
be definite and the acceptance must also be according to
the mode prescribed and must be communicated to the
offeror.

2. Intention to create legal relationship

3. Lawful consideration - something in return

4. Capacity of parties - competent, major, sound mind, not

disqualified from contracting by any law
Essentials of valid contract
5. Free and genuine consent same mind on all the material
terms of the contract

6. Lawful object legal, moral, not opposed to public policy

7. Agreement not declared is void

8. Certainty and possibility of performance not vague or

indefinite

9. Legal formalities contract should be in writing

Workmens Compensation
Act, 1923
First step towards social security of workmen
The theory behind this act is that the cost of product
should bear the blood of the workmen

Object?
To provide for the payment of compensation by certain
classes of employers to their workmen for injury by
accident.

Note: Workmen who are covered under ESI Act, 1948 are not
entitled to compensation under this Act as disablement and
dependants benefit is available to workmen under the former act.
Disablement?
Disablement means loss of capacity to work or to
move
It may result in loss or reduction of his/her earning
capacity.
Disablement may be
Partial
Total

Further it may be
Permanent
Temporary
Employers liability for
compensation
1. Personal injury
2. Occupational Disease

Compensation Calculation Minimum

for amount
Death 50% of monthly wages * relevant age factor Rs. 80,000
Eg: Age 16 factor = 228.54, Age 65 factor =
99.37
Permanent total 60% of monthly wages * relevant age factor Rs. 90,000
disablement

Permanent partial % loss of earning capacity * relevant age

disablement factor

Temporary 25% of monthly wages shall be payable every

disablement (total & half month till the disablement lasts
partial)

Note: Where the monthly wages of workman exceed Rs. 4000, his monthly
wages shall be deemed to be Rs.4000 only.
Trade Unions Act, 1926
Trade Union An association of workers in a
particular craft or industry and now it symbolize
Workers right to organize
Their right to press their demands collectively and to go
on strike if their demands are not accepted

Object?
To regulate the conditions governing the
registration of trade unions
Obligations imposed upon a registered trade union
and
Rights & liabilities of registered trade unions
Indian Partnership Act, 1932
A contract of uberrimae fidei- utmost good faith i.e partnership
contract must run with mutual trust and confidence
Min: 2 competent persons
Max: on banking business should not exceed 10, any other
business not exceeding 20
Profit must be distributed in agreed ratio
Documents which contains the agreement is called Partnership
Deed and it contains
nature of business,
principal place of business,
name and address of the partners,
management,
accounts
Deed must be duly stamped as required by the Indian Stamp Act,
1889
 Payment of Wages Act, 1936
Object?
To avoid with holding wages, delays in paying wages & making
unreasonable deductions out of wages.

This Act is applicable to persons whose wages does not exceed Rs. 6500 per
month (2005) or such other higher sum which, on the basis of figures of the
Consumer Expenditure Survey published by the National Sample Survey
Organisation, the Central Government may, after every five years, by notification
in the Official Gazette.
Wage period shall not exceed 1 month
Time of payment of wages
<1000 persons before the expiry of the 7 th day of the following wage period
>1000 persons - before the expiry of the 10 th day of the following wage period
Termination of employment before 2nd working day from the terminated day
Wages to be paid on a working day
Deductions from wages
Medium of payment of wages current coin or currency
notes or both, after obtaining written authorization of the
employed person, payment can be made either by cheque or
by crediting the wages in bank account

Deductions from wages

Fines (shall not exceed 3% of wages payable to him in that wage
period)
Absence of duty
Services like house accommodation, amenities etc
Recovery of advances
Recovery of loans
Payments to co-operative societies & insurance schemes
Other deductions such as income tax, PMs Relief fund etc
Maintenance of registers &
records
Every employer shall maintain registers & records
giving the following particulars of the persons
employed by him:
the work performed by them
the wages paid to them
the deductions made from their wages
the receipts given by them
The Industrial Employment
(Standing Orders) Act, 1946

Object?
To require employers in industrial establishments
to define with sufficient precision the conditions of
employment under them & to make the said
conditions known to workmen employed by them.
Matters to be provided in Standing
Orders
Classification of workmen
Manner of intimating to workmen about periods & hours of work,
holidays, pay days & wage rates
Shift working
Attendance & late coming
Conditions of procedure in applying for, and the authority which
may grant leave & holidays
Requirement to enter premises by certain gates, & liability to
search
Closing & reopening of sections in Industrial Establishment,
temporary stoppages of work & the rights & liabilities of workmen
& employer arising therefrom.
Termination of employment & respective notice
Suspension or dismissal for misconduct & related actions
Redress mechanism against unfair treatment
Procedure for Certification of Standing
orders
The Industrial Disputes Act,
1947
Object?
To secure industrial peace
By preventing & settling industrial disputes between the
employers & workmen
By securing & preserving amity & good relations between the
employers & workmen through an internal Works Committee
By promoting good relations through an external machinery
of conciliation, Courts of Inquiry, Labor Courts, Industrial
Tribunals & National Tribunals
To improve the condition of workmen in industry
By redressal of grievances of workmen through a statutory
machinery
By improving job security
What is Industrial dispute?
It means any dispute or difference between
employers & employers
employers & workmen
workmen & workmen, which is connected with
a) The employment or non-employment
b) The terms of employment
c) The conditions of labor of any person

It includes both individual & collective disputes

Important Terms
Lay off Failure/Refusal/Inability of an employer to give
employment to a workman due to
Shortage of coal, power or raw material.
Accumulation of stocks.
Breakdown of machinery.
Natural calamity.
Lock out Temporary closing of a place of employment or
suspension of work or refusal by employer (Employers weapon)
Closure Closing the business due to actual loss or
apprehended loss
Retrenchment Employees terminated on account of surplus
labor
Strike Cessation of work by workmen
Unfair labor practices
Conciliation Machinery
Work committees
Conciliation Officer
Board of Conciliation
Courts of Inquiry

Adjudication Machinery
Labor Courts
Industrial Tribunal
National Tribunal
Factories Act, 1948
Factory means any premises where in a
manufacturing process
10 or more persons are engaged if power is used
or
20 or more persons are engaged if power is not
used

Object?
To protect children & to provide for some
health & safety measures.
State Government / Chief
Inspector
1. Site Approval for a factory before it is constructed
2. Submission of plans of Factories
3. Registration & Licensing of Factories
4. Appeal to State/Central Govt within 30 days if permission
is refused by Chief Inspector/State Govt respectively
5. Notice by the occupier
Name & address of the factory, owner & occupier
Address for communication
Nature of manufacturing process
Total rated horsepower
Name of the manager
No. of workers likely to be employed etc
Health of workers
Cleanliness
Disposal of wastes & effluents
Ventilation & Temperature
Dust & fume
Artificial humidification
Overcrowding
Lighting
Drinking water
Latrines & Urinals
Spittoons
Safety of workers
Fencing of machinery
Work on near machinery in motion
Employment of young persons on dangerous machine
Striking gear & devices for cutting off power
Self acting machines
Casting of new machinery
Prohibition of employment of women & children near cotton
opener
Hoists & Lifts
Lifting machine, chains, ropes & lifting tackles
Revolving machinery
Safety of workers
Pressure plant
Floors, stairs and means of access
Pits, sumps, openings in floors etc
Excessive weights
Protection of eyes
Precautions against dangerous fumes
Precautions regarding the use of portable electric light
Precautions against explosive or inflammable dust, gas, fire etc.
Power to require specifications of defective parts or tests of
stability
Safety of building & machinery
Maintenance of building
Safety officers
Welfare of workers
Washing facilities
Facilities for storing & drying clothes
Facilities for sitting
First aid appliances
Canteens
Shelter, rest rooms & lunch rooms
Creches (>30 women workers)
Welfare officers (>500 workers)
Working hours
Not more than 48hours per week or 9 hours per day
Intervals of rest fixed by factory
Women employees 6AM to 7PM

Ordinary rate of wages = Basic wage + Allowances

Extra wages for overtime wages at twice the ordinary rate

Annual leave with wages

1 day for every 20/15 days of work performed in case of adult/child
Application for leave atleast 15 days before for private, 30 days
for public utility service
Maternity leave not exceeding 12 weeks
Employees State Insurance
Act, 1948
Object?
The Act is a piece of social security legislation conceived
as a means of extinction of the evils of the society,
namely, want, disease, dirt, ignorance and indigence

Applicability of the Act for employees is Rs. 10000/- per month

(Gross Salary).

Benefits?
Sickness benefit
Maternity benefit
Disablement benefit
Dependants benefit
Medical benefit
Funeral expenses
Employee?
Any person employed for wages in or in connection with
the work of a factory or establishment
Directly employed by the principal employer

Employed through an intermediate employer

Contract employees

Apprentice, not being an apprentice engaged under the

Apprentices Act, 1961 or under Standing Orders

Wages?
All remuneration paid in cash to an employee except
employer contribution to pension & provident funds,
travelling allowance, special expenses paid and gratuity
payable on discharge
Contribution?
Contribution Sum of money payable to ESI Corporation by the
principal employer & employee
Contribution period Must not exceed 6 consecutive months

Contribution Rate of Contribution

by
Employer A sum equal to 4.75% of the total wage bill of all employees
rounded to the next higher rupee + 1.16% Admin charges
Employee A sum equal to 1.75% of his/her wages rounded to next
higher rupee
Employee Contribution is exemption for employees whose wages
are < Rs.50 per day
Default in payment of contribution to pay simple interest at
12% or more per annum, till the date of its actual payment
All disputes arising out of this are resolved by Employees
Insurance Court
Minimum Wages Act, 1948
Object?
To secure the welfare of the workers in a
competitive market by fixing the minimum rates of
wages in certain employments

Scheduled employment Workers in mines,

plantation, transport, mills etc

Appropriate State Government shall fix

minimum rate of wages for time work
minimum rate of wages for piece work
guaranteed time rate
overtime rate
Fixation & Revision of wages
Fixation & revision of minimum wages are
done by appropriate Government through
either of the 2 methods
1. Appointment of committees & sub-committees
as it considers necessary to hold inquiries
2. Publication of proposals in the Official Gazette

Appropriate Government shall consult with

Advisory Boards before fixing/revising
minimum wages
Employees Provident Fund &
Miscellaneous Provisions Act,
1952
Object?
It is a social security measure meant to induce employees to
save a portion from their present earnings for a rainy day

Authorized Officer?
Central PF Commissioner
Additional Central PF Commissioner
Deputy PF Commissioner
Regional PF Commissioner
Contribution is made to
Employees Provident Fund Scheme
Employees Pension Scheme & Fund
Employees Deposit Linked Insurance Scheme (EDLI) & Fund
Contribution
ESI is covered to employees whose wages are upto
Rs.10,000 per month
Basic Salary = Basic Wages + Dearness Allowance including
cash value of any food concession + Retaining Allowance

Employee Contribution Employers Contribution

12% of Basic Salary 12% of Basic Salary + 1.61%

Pension Fund: 8.33% of Basic Salary

or Rs.541 whichever is lesser

Provident Fund: 3.67% of Basic

Salary
Administrative 1.10%of Basic
charges Salary
0.50% of Basic
EDLI Fund Salary
Administrative
Company Act, 1956
Company - an association of many persons who
contribute money or moneys worth to a common
stock and employ it in some common trade or
business(for common purpose) and who share the
profit or loss arising there from
Characteristics of the
company
1. Separate legal entity
2. Limited liability
3. limited by shares
4. limited by guarantee
5. Perpetual succession
6. Common seal
7. Transferability of shares
8. Separate property
9. Capacity to sue
 Company Vs Partnership

Company
Partnership
Regulated under Partnership Act 1932
Companies Act 1956
Exits after registration Registration not mandatory
under Co.Act 1956
Managed by Directors, Every partner should take
Board of Directors part in the management
Property and rights is Transferable to any or all
nontransferable to partners
shareholders
 Company Vs Partnership
Shares are transferable when Shares cannot be transferred
the transferee becomes the without the concern of all
member partners
Shareholders is not the Each partner is an agenthas
agenthas no power power
Members Public Pvt Min-2
Min 7 2 Max- banking 10
Max No limit 50 others 20
Bound by law and audited No statutory provisions
annually
Only it can be dissolved Dissolved by death/
(Wound by provisions of insolvency of partner or
companies Act 1956) wound if it is for fixed period.
 Public Co. Vs Private Co.
Public Co. Private Co.
Min members- 7 Min- 2
Max members - no limit Max - 50

File with registrar to act as No restriction

Director

Invites public to subscribe for No public invitation

shares / issues

Quorum members 5 2

Managerial remuneration No restrictions

cannot exceed 11% of NP

No privileges Special priviliges

Documents to be filed with Registrar for
getting Certificate of Incorporation
Memorandum of Association signed by the subscribers
Fundamental document
Lays down the area of operation
Regulates the external affairs of the co in relation to outsiders
Articles of Association if any(public limited co limited by
shares need not have its own AOA
Rules and regulations and bye-laws for the internal management of the
affairs of a company.
Agreement between the Co and the individual for the
appointment of whole time Director or Manager
List of directors agreed to act as director with their written
consent
Declaration relating to companies act and formalities related
to registration
Employment Exchanges (Compulsory
Notification of Vacancies) Act, 1959
Object?
To provide for the compulsory notification of
vacancies to employment exchanges.

Act is applicable to vacancies in posts of a technical and scientific

nature carrying a basic pay Rs.210 per month occurring in establishments
or to be circulated to the Employment Exchanges outside the State or Union
Territory

Act is not applicable to any employment in

agriculture, horticulture etc
domestic service,
the total duration of which is less than three months,
to do unskilled office work,
connected with the staff of Parliament.
 Form and manner of notification of vacancies
(1) Name and address of the employer ;
(2) Telephone number of the employer, if any ;
(3) Nature of vacancy :-
(a) Type of workers required (Designation) ;
(b) Description of duties ;
(c) Qualifications required - (i) Essential, (ii) Desirable
(d) Age-limits if any ;
(e) Whether women are eligible ?
(4) Number of vacancies - (a) Regular, (b) Temporary
(5) Pay and allowances
(6) Place of work (name of town/village and district in which it is situated).
(7) Probable date by which the vacancy will be filled
(8) Particulars regarding interview/test of applicant - (a) Date , Time & Place of
interview/test (b) Designation and address of the person to whom applicants should report
(9) Whether there is any obligation or arrangement for giving preference to
any category of persons such as Scheduled Castes, Scheduled Tribes, ex-
Servicemen and physically handicapped persons in filling up the
vacancies, and if so, the number of vacancies to be filled by such
categories of persons.
(10) Any other relevant information
 Time limit for notification of vacancies & selection
Atleast 15 days before the applicants will be interviewed or
tested.
Employer to furnish the result of selection within 15 days.

Submission of Returns
Quarterly in Form ER-I - Within 30 days by 30th June, 31st March, 30th
September & 31st December
BIENNIAL Return Form ER-II Within 30 days of the due date as
notified in the Official Gazette
Apprentices Act, 1961
An apprentice is bound to obey his master in all
his lawful commands, take care of his property and
promote his interest, endeavor to learn his trade or
business, & perform all the conditions of his
contract not contrary to law. He must not leave his
masters service during the term of his
apprenticeship

Object?
To provide for the regulation & control of training of
apprentices
Types
Technician (Vocational) Apprentice
Undergo training for 2 years inorder to hold a certificate in

vocational course after completing secondary stage of school

education, recognized by All India Council of Technical Education
Trade Apprentice
Undergo apprenticeship training in any trade or business

Qualifications for being an

apprentice
14 years of age or above
satisfies the standard of education & physical fitness as prescribed
for apprenticeship training
Employers responsibilities
Total number of hours/week = 42 to 48 (6AM to 10PM)
Employer shall look after
Offer & Acceptance of employment
Practical & basic training of apprentices & related
instructions
Health, Safety & Welfare of apprentices
Leave / Overtime hours
Payment of stipend
Compensating for injury during training
Holding test & granting certificate
Records, settlement of disputes
Maternity Benefits Act, 1961
Object?
To regulate the employment of women in certain
establishments for certain periods before & after child birth &
to provide for maternity benefit & other certain benefits

Wage?
Remuneration in cash + Cash Allowances including DA & HRA +
Incentives + Money value of food grains
Maternity benefit is a payment to a women (should have worked
atleast 80 days in the 12 months immediately proceeding the date
of her expected delivery ) at a rate of the average daily wage for
the period of her actual absence
Maternity benefit is given for a maximum period of 12 weeks, of
which not more than 6 weeks shall precede the date of her
expected delivery
Liabilities of Employer
Pregnant women are prohibited to work in establishments
during a period of 6 weeks immediately following the day of
her delivery or her miscarriage

Employer is liable to pay maternity benefit to her nominee or

that woman even in case of death of that woman/child
respectively

2 nursing breaks per day shall be allowed until the child

attains the age of 15 months

6 weeks leave shall be allowed for miscarriage on production

of the prescribed proof
Payment of Bonus Act, 1965
Bonus gratuity to workmen beyond their wages

Object?
To maintain peace & harmony between labor & capital by
allowing the employees, in recognition of their right, to share
in the prosperity of the establishment reflected by the
contributions made by capital, management & labor

A minimum bonus of 8.33% of the (Salary + DA) or Rs. 100

whichever is higher - paid to all employees whose salary is up to
Rs.3500 per month & worked for not less than 30 days for that
year
Bonus is no longer linked with production & profitability and so it
is a statutory liability for an employer on completion of 5 years
after 1st Accounting year even if there is no profit
60 or 67% of available surplus is allocated for bonus
Contract Labour (Regulation &
Abolition)
Object?
Act, 1970
To regulate the employment of contract labour in certain
establishments and to provide for its abolition in certain
circumstances and for matters connected therewith.

Liability of Principal Employer

To ensure provision for canteen, restrooms, sufficient supply of drinking
water, latrines and urinals, washing facilities.
Principal employer entitled to recover from the contractor for providing
such amenities or to make deductions from amount payable

Every contractor shall maintain Muster Roll, Register of wages, Register of

Deductions, Register of Overtime, Register of Fines, Register of Advances,
Wage slip & display the abstract 0f rules & Act in English & regional
language.
Registration of Establishment
Principal employer employing 20 or more workers through
the contractor or the contractor(s) on deposit of required
fee in Form 1 as given below. If the number of workmen
proposed to be employed on contract on any days-
(a) is 20 Rs.60
(b) exceed 20 but does not exceed 50 Rs.150
(c) exceed 50 but does not exceed 100 Rs.300
(d) exceed 100 but does not exceed Rs.600
200
(e) exceed 200 but does not exceed Rs.1200
400
(f) exceeds 400 Rs.1500
Prohibition of Employment of Contract Labour
Only by the appropriate Government through issue of
notification after consultation with the Board (and not
Courts) can order the prohibition of employment of
contract labour.
Licensing of Contractor
Engaging 20 or more than 20 workers and on deposit of
required fee in Form IV as given below.
If the number of workmen employed by the contractor on
any day-
(a) is 20 Rs.15.00
(b) exceed 20 but does not exceed 50 Rs.37.50
(c) exceed 50 but does not exceed 100 Rs.75.00
(d) exceed 100 but does not exceed Rs.150
200
(e) exceed 200 but does not exceed Rs.300.00
400
(f) exceed 400 Rs.375.00

It is valid for specified period.

Payment of Gratuity Act,
1972
Principle?
By faithful service over a long period, the employee is entitled to claim a
certain amount as a retirement benefit
Gratuity is paid out at the time of superannuation (if you retire at the
age of 58), when you retire (at any other age) or resignation, and in the
event of your death or being rendered disable because of an accident or
illness. You need to have at least 5 full years of service with an
employer to qualify for gratuity.
Rate of Gratuity
Application for gratuity
An employee or his/her nominee shall write to the employer
within 30 days from the date the gratuity become payable
or shall be applied before 30 days if date of superannuation
is known

If it is not paid by the employer within 30 days, then he shall

pay simple interest as prescribed by Central Government

The grievances are redressed by controlling authority and

the collector shall recover the gratuity amount + compound
interest from the employer
Equal Remuneration Act,
1976
Object?
To provide for the payment of equal remuneration to
men and women workers and for the prevention of
discrimination, on the ground of sex, against women in
the matter of employment and for matters connected
therewith or incidental thereto

Duties of employer
To pay equal remuneration to men and women workers for same work or
work of a similar nature
No discrimination to be made while recruiting [or promoting/training
/transferring] men and women workers except where the employment of
women in such work is prohibited or restricted by any law and it shall
not affect any reservations for SC, ST, Ex-Servicemen etc.

The appropriate Government shall constitute one or more Advisory

Committees to increase employment opportunities for women
Penalties
If an employer

Omits or fails to produce any register, muster-roll, any information or other

document relating to the employment of workers - he shall be punishable
with simple imprisonment for a term which may extend to 1 month or with
fine which may extend to Rs.10,000 or with both

Makes any recruitment or discrimination in wages in contravention of the

provisions of this Act - he shall be punishable with fine of Rs.10,000 to
Rs.20,000 or with imprisonment for a term of 3 months to 1 year or with
both for the first offence, and with imprisonment which may extend to 2
years for the second and subsequent offences

If any person being required so to do, omits or refuses to produce to an

Inspector any register or other document or to give any information, he
shall be punishable with fine, which may extend to Rs.5000
Professional Tax Act, 1976
Object?
To provide for the levy & collection of tax on
professionals , trade callings & employment in the
state.

The set of professional tax slabs in India are different for all the 28 states in
India and some of the states have formulated different professional tax slabs
for men, women, and the senior citizens of the respective states.

Eg: Tamil Nadu's Tax Slabs: Half yearly basis Half yearly Income Monthly Professional Tax
Less than Rs.21000 Nil
Between Rs.21001-Rs.30000 Rs.75
Between Rs.30001-Rs.45000 Rs.188
Between Rs.45001- Rs.60000 Rs.390
Between Rs.60001- Rs.75000 Rs.585
Beyond Rs.75001 Rs.810
Date of payment
15th of succeeding month + additional 5 days grace
Inter-state Migrant Workmen
(Regulation of Employment &
Conditions of Service ) Act, 1979
Object?
To regulate the employment of inter-State migrant
workmen and to provide for their conditions of
service and for matters connected therewith.

Inter-State migrant workman

Any person who is recruited by or through a contractor in one State
under an agreement or other arrangement for employment in an
establishment in another State, whether with or without the
knowledge of the principal employer in relation to such
establishment;
Duties of Contractors
To furnish prescribed particulars to the specified authority in State from
which an inter-State migrant workman is recruited and in the State in which
such workman is employed, within 15 days from the date of recruitment
and also to intimate if there are any changes in employment

To issue to every inter-State migrant workman, a passbook affixed with a

passport size photograph of the workman and indicating in Hindi/Regional
and English languages -
(i) the name and place of the establishment wherein the workman is employed;
(ii) the period of employment;
(iii) the proposed rates and modes of payment of wages;
(iv) the displacement allowance payable;
(v) the return fare payable to the workman on the expiry of the period of his
employment and in such contingencies as may be prescribed and in such other
contingencies as may be specified in the contract of employment;
(vi) deductions made; and others.
Wages, Welfare & other
facilities
The wage rates, holidays, hours of work and other conditions of service of an
inter-State migrant workman shall remain the same as any other workman in
that establishment and Minimum Wages Act, 1948 is also applicable to them

Non-refundable displacement allowance = 50% of the monthly wages payable

to him or Rs.75 whichever is higher

Journey allowance the fare from the place of residence of the inter-State
migrant workman in his State to the place of work in the other State

Other facilities such as suitable conditions of work, residential accommodation,

prescribed medical facilities (free of charge), protective clothing are also
applicable

To ensure regular payment of wages, equal pay for equal work irrespective of
sex, in case of fatal accident or serious bodily injury to any such workman to
report to the specified authorities of both the States and also the next-of-kin of
the workman
 Child Labour (Prohibition and
Regulation) Act, 1986
Object?
To prohibit the engagement of children in certain
employments and to regulate the conditions of work or
children in certain other employments.

Child means a person who has not completed his fourteen years
of age.

Penalties
Violations under Section-3 shall be
punishable with imprisonment - 3 months to 1 year or

with fine of Rs.10,000 to Rs.20,000 or with both.

Continuing offence shall be punishable with imprisonment for a term of 6 months

to 2 years.
Unorganized Workers Social
Security Act, 2008
Object?
To provide for the social security and welfare of
unorganised workers and for other matters
connected therewith or incidental thereto.

Unorganized workers means a home based worker, self employed

0r a wage worker in the unorganized sector & includes a worker in
the organized sector who is not covered under
 The Central Government formulated schemes for different
sections of unorganized workers on matters relating to
life and disability cover;
health and maternity benefits;
old age protection
any other benefit as may be determined by the Central
Government

The State Government formulated schemes for unorganized

workers relating to
provident fund,
employment injury benefits,
housing,
educational schemes for children,
skill upgradation,
funeral assistance and
old-age homes
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