Social Security Labour Legislations

They cover those legislations that intend to provide to the workmen, social safety benefits under definite contingencies of life and work.

1. The Workmen's Compensation Act, 1923

Factories & establishments which are not covered under the Employees State Insurance Act, are included under this Act to provide help to workmen and/or their dependents in case of accidents occur of and in the course of employment causing disablement of workmen or death. The workmen's compensation (Amendment) Act, 2000 w.e.f. 8-12-2000 has brought all of the workmen within the restriction of this Act, irrespective of their nature of employment.   Under the Act, the employer is under compulsion to pay compensation for any accident suffered by workers in the course of employment, failing which Act provides for penalties. There ought to be some causal connection along employment to become qualified for compensation, which might not necessarily be inside the workplace. By the circumstantial evidence causal relationship is established, which may be even in cases where workmen sustain injury when coming to work or when going to his house after completion of work.

2. The Employees' State Insurance Act, 1948

The principal goal of this Act is to provide to the employees medical relief, compensation for employment injuries (which also covers occupational diseases), cash benefits for sickness, pension to the dependents of deceased employees & maternity benefits to women workers. All of these benefits are given from a contributory fund. Once workmen are covered under ESI policy, compensation under Workmen's Compensation Act for employment injuries is not payable.  The Act is applicable to all of factories (excluding seasonal factories) employing ten or more (while manufacturing procedure is carried out by using power).  For factories carrying out the manufacturing procedure without the aid of power, the declared number is 20 or more persons. The scope of the Act covers all of employee, including those engaged as casual or by a contractor, provided they do not retain wages not exceeding Rs.6,500  per month. Apprentices engaged under the Apprentices Act are not qualified for ESI benefits.   The Act needs registration of eligible factories & establishments within a set time limit.  Likewise entitled employees are also needed to be insured in a preset manner under the Act.  As the nature of insurance is contributory, employer is needed to pay @ 4.75 per cent and workers are required to contribute @ 1.75 per cent of the wages.  Though, such workers who are drawing less than Rs.40 as everyday wages are exempted from the obligation of contribution. The Act provides benefits at preset rate and imposes penalty for violation up to 5 years detention and fine up to Rs. 25,000.

3. The Employees PF and Miscellaneous Provisions Act, 1952

The Act provides for obligatory contributory fund for social security of the workers and their dependents (in case of death). It extends to all factories, establishment employing 20 or more persons. However, the Central Government by notification brings any establishment under the purview of the Act even in cases where such establishments employ less than 20 people. However, cooperative societies employing less than 50 people and working without the aid of strength, newly set up establishments (for primly 3 years), and State/Central Government establishments (where they have their own plan) are immune from the provisions of this Act. The Central Government has make three plans under the Act, for example. Employees' Provident Fund plan, 1952 (for provident funds), Employees' Family Pension plan, 1971 for providing family pension & life assurance profit, which been merged with, Employees' Pension plan, 1995 and the employees' Deposit Linked Insurance plan, 1976. The Act needs employers to contribute amount @ 12 per cent of the Wages, D.A. etc. (10percent in case of BIFR referred establishments or establishments employing less than 20 people or any establishments in the, beedi, jute, coir, brick or gaur gum industry) and ensure same deduction from workers and deposit the similar together with administrative charges and needed returns/attachments to the regional provident fund office or to their own private provident fund plan (approved by the Provident Fund Commissioner).

4. The Maternity Benefit Act, 1961

This provides maternity reimbursement to women employees. It sets out that a woman might avail 3 months leave with complete salary before or after the birth of her child.

5. Payment of Gratuity Act, 1972

This particular Act is also a social security measure to provide retirement reimbursement to the workmen, who have rendered unblemished and long service to the employer. Workers are entitled to attain gratuity under the Act, provided they have rendered constant 5 years service or more at the rate of 15 days wages for each of completed year, subject to an utmost of Rs.3, 50,000. The gratuity might be partly or wholly forfeited by the employer if termination of services of a worker is due to his disorderly or riotous conduct or any other act of violence or any offence, by including moral turpitude committed in the course of his employment.

Chapter V A of the Industrial Disputes Act 1947 is also of the character of social security in as much as it provides for payment or lay-off, closure compensation and retrenchment.