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Chapter XI · OSH Code

Special Provisions for Contract Labour and Inter-State Migrant Workers, etc.

This chapter collects the special rules for particular kinds of work: contract labour, inter-State migrant workers, audio-visual workers, mines, beedi and cigar units, building work, factories and plantations. For contract labour it sets up contractor licensing, bans contract labour in core activities except in three situations, and makes the principal employer answerable for welfare facilities and unpaid wages. For migrant workers it adds an annual journey fare, equal benefits and accident reporting to both States, and for factories it carries the approval, hazardous-process and workers' right-to-warn rules.

49 sections ~38 min read Official text, PDF pp. 39–53
Principal employers and HR managers using contract labourLabour contractors and manpower supply firmsFactory owners and occupiersEmployers of inter-State migrant workers

Key points

  1. 1The contract labour rules apply to an establishment that used 50 or more contract labour, or a manpower supply contractor that employed 50 or more, on any day in the preceding 12 months, and a contractor to whom the Part applies needs a licence to supply or engage contract labour or to execute work through it. §45§47
  2. 2The principal employer must provide the welfare facilities under sections 23 and 24 to contract labour, and must pay wages in full or the shortfall if the contractor fails to pay on time, then recover the amount from the contractor. §53§55
  3. 3Where a principal employer uses contract labour through a contractor who needs a licence but does not have one, that employment is deemed to be a contravention of the Code. §54
  4. 4Contract labour is banned in core activities, except where the activity is normally done through a contractor, does not need full-time workers for most of the day, or faces a sudden rise in work that must be finished in a set time. §57
  5. 5Where 10 or more inter-State migrant workers are employed, the contractor or employer must give them the same benefits as the establishment's other workers and report a death or serious injury to both States and the next of kin, and the employer must pay a yearly lump-sum fare for the journey home and back. §59§60§61
  6. 6A factory with a hazardous process must disclose its hazards, keep an approved on-site emergency plan and medically examine workers handling hazardous substances before they start and then at intervals of not more than 12 months, and its workers may warn the management and the Inspector-cum-Facilitator about imminent danger. §84§85§89
Earlier law:Contract Labour (Regulation and Abolition) Act, 1970Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981Mines Act, 1952Beedi and Cigar Workers (Conditions of Employment) Act, 1966Factories Act, 1948Plantations Labour Act, 1951Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996
45

Applicability of this Part

In plain words

Part I on contract labour applies to any establishment that employed 50 or more contract labour, and any manpower supply contractor that employed 50 or more, on any day in the preceding 12 months, but not to establishments doing only intermittent or casual work.

(1)

This Part shall apply to—

(i)

every establishment in which fifty or more contract labour are employed or were employed on any day of the preceding twelve months through contract;

(ii)

every manpower supply contractor who has employed, on any day of the preceding twelve months, fifty or more contract labour.

(2)

This Part shall not apply to the establishment in which work only of an intermittent or casual nature is performed:

Proviso

Provided that if a question arises as to whether work performed in an establishment is of an intermittent or casual nature, the appropriate Government shall decide that question after consultation with the National Board or a State Advisory Board and its decision thereon shall be final.

Explanation

Explanation.—For the purpose of this sub-section, work performed in an establishment shall not be deemed to be of an intermittent nature—

(i)

if it was performed for more than one hundred and twenty days in the preceding twelve months; or

(ii)

if it is of seasonal character and is performed for more than sixty days in a year.

46

Appointment of designated authority

In plain words

The government may, by order, appoint Gazetted officers as the designated authority under section 119, fixes their jurisdiction and gives them powers, including issuing and revoking licences electronically.

The appropriate Government may, by an order, appoint such persons, being Gazetted officers of the Government, as it thinks fit to be designated as authority under sub-section (1) of section 119 and specify the limits of their jurisdiction and vest with such powers and duties including dealing with issuance and revocation of licences electronically as may be specified therein.

47

Licensing of contractors

In plain words

A contractor covered by this Part cannot supply or use contract labour without a licence that states the number of workers allowed and the security deposit; a contractor who does not meet the qualifications may be issued a work-specific licence, renewable electronically, that covers only the work order it names.

(1)

No contractor to whom this Part applies shall—

(a)

supply or engage contract labour in any establishment; or

(b)

undertake or execute the work through contract labour,

except under and in accordance with a licence issued to him by the authority referred to in sub-section (1) of section 119 in accordance with the provisions of that section after satisfying that the contractor fulfills such requisite qualifications or criteria as may be prescribed by the Central Government and such licence shall, in addition to the requisite particulars and conditions specified in sub-section (3), specify the number of such contract labour who can be supplied or engaged and the amount of security to be deposited by the contractor.

(2)

Where the contractor does not fulfil the requisite qualifications or criteria referred to in sub-section (1), the authority referred to in sub-section (1) of section 119 may issue him a "work specific licence" electronically renewable within such period as may be prescribed by the Central Government to supply or engage the contract labour, or execute the work through contract labour, only for the concerned work order as may be specified in such licence and subject to such conditions as may be specified in such licence.

(3)

Subject to the provisions of this Part,—

(a)

a licence under sub-section (1) may contain such conditions including, in particular, conditions as to hours of work, fixation of wages and other essential amenities in respect of contract labour as may be prescribed by the appropriate Government;

(b)

the licence referred to in sub-section (1) or sub-section (2), shall be obtained from, if for such establishment the appropriate Government is—

(i)

the Central Government, the authority referred to in sub-section (1) of section 119 designated by that Government; and

(ii)

the State Government, the authority referred to in sub-section (1) of section 119 designated by that Government:

Proviso

Provided that where the contractor is desirous of obtaining licence for supplying or engaging contract labour or undertaking or executing the contract works under sub-section (1) or sub- section (2) in more than one States or for the whole of India, then, he may obtain the licence from the authority referred to in sub-section (1) of section 119 designated by the Central Government for such purpose and the provisions of that section shall apply:

Proviso

Provided further that before issuing such licence the authority referred to in the first proviso shall consult the concerned State or States authorities designated under sub-section (1) of section 119, electronically before issuing licence for the establishments for which the appropriate Government is the State Government.

48

Procedure for issue or renewal of licence

In plain words

Licence applications are made online with details of the number of contract labour, the nature of work and any inter-State migrant workers; a licence under section 47(1) is valid for 5 years for the number of contract labour it states, and that number can be raised only by amending the licence and depositing the security fixed in the amended licence for the remaining period.

(1)

Subject to the provisions of section 119, every application for issuing a licence under section 119 for the purposes of sub-section (1) or sub-section (2) of section 47 shall be made electronically in such form and manner and shall contain such particulars regarding the number of contract labour, nature of work for which contract labour is to be employed and such other particulars including the information relating to the employment of inter-State migrant workers as may be prescribed by the appropriate Government.

(2)

Subject to the provisions of section 119, the authority referred to in sub-section (1) thereof shall follow such procedure as may be prescribed by the appropriate Government.

(3)

Subject to the provisions of section 119, the licence issued for the purposes of sub-section (1) of section 47 shall be valid for a period of five years in respect of the number of contract labour specified therein and in case the contractor wants to increase the number of the contract labour, he shall apply in the prescribed manner for the amendment to the licence for such purpose to the authority referred to in sub-section (1) of section119 and if the licence is so amended, the number of contract labour shall be increased to such extent by depositing such security deposit as specified in the amended licence for the balance period.

(4)

Subject to the provisions of section 119, the licence issued for the purposes of sub-section (1) of section 47 shall contain responsibility of the contractor as may be prescribed by the appropriate Government.

50

Information regarding work order to be given to the appropriate Government

In plain words

A contractor who receives a work order to supply contract labour or do work through contract labour must inform the authority within the time notified by the government, or risk suspension or cancellation of the licence after a show-cause notice.

(1)

When a contractor receives work order from an establishment either to supply contract labour in the establishment or to execute the contract through contract labour in the establishment he shall, within such time and in such manner as may be prescribed, intimate to the authority referred to in section 119.

(2)

Where the contractor fails to give intimation under sub-section (1), the designated authority may, after giving the holder of the licence an opportunity of showing cause, suspend or cancel the licence in such manner as may be prescribed by the appropriate Government.

51

Revocation, suspension and amendment of licence

In plain words

The authority can revoke or suspend a licence, after a show-cause notice, if it was obtained by misrepresentation or hiding facts or if the contractor breaks its conditions, this Part or the rules under it, and it can also amend a licence.

(1)

If the authority referred to in sub-section (1) of section 119 is satisfied, either on a reference made to him in this behalf or otherwise, that—

(a)

a licence granted for the purposes of this Part has been obtained by misrepresentation or suppression of any material fact, or

(b)

the holder of a licence has, failed to comply with the conditions subject to which the licence has been granted or has contravened any of the provisions of this Part or the rules made thereunder, then,

without prejudice to any other penalty to which the contractor may be liable under this Code, the authority referred to in sub-section (1) of section 119 may, after giving the contractor an opportunity of showing cause, revoke or suspend the licence in accordance with the procedure as may be prescribed by the Central Government.

(2)

Subject to any rules that may be made in this behalf, the authority referred to in sub-section (1) of section 119 may amend a licence granted for the purposes of this Part.

52

Appeal

In plain words

Anyone aggrieved by an order under section 47, 48 or 51 can appeal to the appellate authority within 30 days of the order being communicated; the authority may accept a late appeal for sufficient cause and, after hearing the appellant, must decide within 30 days of the appeal being filed.

(1)

Any person aggrieved by an order made under section 47, section 48 or section 51 may, within thirty days from the date on which the order is communicated to him, prefer an appeal to an appellate authority prescribed by the appropriate Government under sub-section (6) of section 119:

Proviso

Provided that the appellate authority may entertain the appeal after the expiry of the said period of thirty days, if he is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time.

(2)

On receipt of an appeal under sub-section (1), the appellate authority shall, after giving the appellant an opportunity of being heard, dispose of the appeal within thirty days from the date on which the appeal is preferred.

53

Liability of principal employer for welfare facilities

In plain words

The principal employer must provide the welfare facilities required under sections 23 and 24 of the Code to the contract labour working in the establishment.

Welfare facilities specified under section 23 and section 24 shall be provided by the principal employer of the establishment to the contract labour who are employed in such establishment.

54

Effect of employing contract labour from a non-licenced contractor

In plain words

If a principal employer uses contract labour through a contractor who needs a licence but has not obtained one, that employment is treated as a contravention of the Code.

Where any principal employer of an establishment is employing contract labour through a contractor who is required to obtain a licence under this Part, but he has not obtained such licence, then, such employment shall be deemed to be in contravention of the provision of this Code.

55

Responsibility for payment of wages

In plain words

The contractor must pay contract labour by bank transfer or electronic mode (or as prescribed where that is not practicable) within the period notified by the government and tell the principal employer electronically what was paid; if the contractor fails or short-pays, the principal employer must pay and can recover the amount from the contractor.

(1)

A contractor shall be responsible for payment of wages to each contract labour employed by him and such wages shall be paid before the expiry of such period as may be prescribed by the appropriate Government.

(2)

Every contractor shall, make the disbursement of wages referred to in sub-section (1) through bank transfer or electronic mode and inform the principal employer electronically the amount so paid by such mode:

Proviso

Provided that where it is not practicable to disburse payment in the mode specified in this section, then, the payment shall be made in such manner as may be prescribed by the appropriate Government.

(3)

In case the contractor fails to make payment of wages referred to in sub-section (1) within the prescribed period or makes short payment, then, the principal employer shall be liable to make payment of the wages in full or the unpaid balance due, as the case may be, to the concerned contract labour employed by the contractor and recover the amount so paid from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.

(4)

The appropriate Government, in the event the contractor does not pay the wages to the contract labour employed by him, shall pass the orders of making payment of such wages from the amount deposited by such contractor as security deposit under the licence issued by the licensing officer to the contractor, in such manner as may be prescribed by such Government.

56

Experience certificate

In plain words

A contractor must, on request, give a contract worker an experience certificate describing the work done, in the form notified by the government.

Every concerned contractor shall issue, on demand, experience certificate, in such form as may be prescribed by the appropriate Government, to the contract labour giving details of the work performed by such contract labour.

57

Prohibition of employment of contract labour

In plain words

Contract labour is prohibited in core activities, except where the activity is normally done through a contractor, does not need full-time workers for most of the day or longer periods, or faces a sudden rise in work that must be done in a set time; disputes over what is a core activity go to the government.

(1)

Notwithstanding anything contained in this Part, employment of contract labour in core activities of any establishment is prohibited:

Proviso

Provided that the principal employer may engage contract labour through a contractor to any core activity, if—

(a)

the normal functioning of the establishment is such that the activity is ordinarily done through contractor; or

(b)

the activities are such that they do not require full time workers for the major portion of the working hours in a day or for longer periods, as the case may be;

(c)

any sudden increase of volume of work in the core activity which needs to be accomplished in a specified time.

(2)
(a)

The appropriate Government may, by notification, appoint a designated authority to advise that Government on the question whether any activity of an establishment is a core activity or otherwise;

(b)

if a question arises as to whether any activity of an establishment is a core activity or otherwise, the aggrieved party may make an application in such form and manner as may be prescribed, to the appropriate Government for decision;

(c)

the appropriate Government may refer any such question suo motu or refer the application to the designated authority, which on the basis of relevant material in its possession, or after making such an enquiry as it deems fit, shall report to the appropriate Government, within such period and thereafter the appropriate Government shall decide the question within such period as may be prescribed.

58

Power to exempt in special cases

In plain words

In an emergency, the government can by notification exempt any establishment, class of establishments or class of contractors from all or any provisions of the Code, on conditions and for a period it specifies.

The appropriate Government may, in the case of an emergency, direct, by notification, that subject to such conditions and restrictions, if any, and for such period, as may be specified in the notification, all or any of the provisions of this Code or the rules made thereunder shall not apply to any establishment or class of establishments or any class of contractors.

60

Facilities to inter-State migrant workers

In plain words

The contractor or employer must give inter-State migrant workers suitable working conditions, report a death or serious bodily injury to the authorities of both States and to the worker's next of kin, and extend every benefit the establishment's other workers get, including ESI, EPF and medical check-ups.

It shall be the duty of every contractor or the employer, of an establishment employing inter-State migrant workers in connection with the work of that establishment—

(i)

to ensure suitable conditions of work to such worker having regard to the fact that he is required to work in a State different from his own State;

(ii)

in case of fatal accident or serious bodily injury to any such worker, to report to the specified authorities of both the States and also the next of kin of the worker;

(iii)

to extend all benefits to such worker which are available to a worker of that establishment including benefits under the Employees' State Insurance Act, 1948 or the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 or any other law for the time being in force and the facility of medical check-up as available to a worker under clause (c) of sub-section (1) of section 6.

61

Journey allowance

In plain words

The employer must pay every inter-State migrant worker, in a year, a lump-sum fare for the journey from the place of work to the native place and back, on terms such as minimum service for entitlement, periodicity and class of travel notified by the government.

The employer shall pay, to every inter-State migrant worker employed in his establishment, in a year a lump sum amount of fare for to and fro journey to his native place from the place of his employment, in the manner taking into account the minimum service for entitlement, periodicity and class of travel and such other matters as may be prescribed by the appropriate Government.

62

Benefits of public distribution system, etc

In plain words

The government must make schemes letting migrant workers draw ration (public distribution system) benefits in either their home or work State, and making benefits for migrant construction workers portable out of the building and other construction cess fund of the State where they work.

The appropriate Government shall make schemes to provide—

(a)

option to an inter-State migrant worker for availing benefits of public distribution system either in his native State or the destination State where he is employed; and

(b)

for portability of the benefits of the inter-State migrant worker working for building or other construction work out of the building and other construction cess fund in the destination State where such inter-State migrant worker is employed.

65

Past liabilities

In plain words

Any debt an inter-State migrant worker still owes the contractor or principal employer at the end of the employment is extinguished, and no suit or proceeding can be filed to recover it.

No suit or other proceeding shall lie in any court or before any authority for the recovery of debt or any part thereof relating to an inter-State migrant worker after the completion of his employment where it remains unsettled obligation to the contractor or the principal employer and such debt or part thereof shall, on the completion of the period of employment of such worker, be deemed to have been extinguished.

66

Prohibition of employment of audio-visual worker without agreement

In plain words

No one can be employed as an audio-visual worker without a written agreement, registered by the producer, that covers the assignment, wages and benefits including PF where the worker is covered, health and working conditions, safety, hours, welfare and a dispute mechanism, with the producer liable if a contractor defaults and wages paid electronically.

(1)

No person shall be employed as an audio-visual worker in or in connection with production of any audio-visual programme unless,—

(a)

an agreement in writing is entered into—

(i)

with such person by the producer of such audio-visual programme; or

(ii)

with such person by the producer of such audio-visual programme with the contractor, where such person is employed through such contractor; or

(iii)

with such person by the contractor or other person through whom such person is employed; and

(b)

such agreement is registered with the competent authority, to be notified by the appropriate Government, by the producer of such audio-visual programme.

(2)

Every agreement, referred to in sub-section (1) shall,—

(a)

be in the prescribed form;

(b)

specify the name and such other particulars as may be prescribed by the appropriate Government with respect to, such person to be employed under the agreement as audio-visual worker;

(c)

include, where such audio-visual worker is employed through a contractor, a specific condition to the effect that in the event of the contractor failing to discharge his obligations under the agreement to the audio-visual worker with respect to payment of wages or any other matter, the producer of the audio-visual programme shall also be liable to discharge such obligations and shall be entitled to be reimbursed with respect thereto by the contractor.

(3)

A copy of the agreement referred to in sub-section (1) with respect to the employment of the audio-visual worker shall, if such audio-visual worker is covered under the provision of an enactment for the time being in force for providing the benefit of provident fund to him, also be forwarded by the producer of the audio-visual programme to such authority as may be prescribed by the appropriate Government.

(4)

Notwithstanding anything contained in Chapters V, VI and VII, the agreement referred to in sub-section (1) shall include,—

(i)

nature of assignment;

(ii)

wages and other benefits (including provident fund, if covered under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952);

(iii)

health and working conditions;

(iv)

safety;

(v)

hours of work;

(vi)

welfare facilities; and

(vii)

dispute resolution process or mechanism, the constitution and other details of which shall be prescribed by the appropriate Government:

Proviso

Provided that in case of failure of the resolution of the dispute in such dispute resolution process or mechanism, either party in the dispute may invoke the jurisdiction of the Industrial Tribunal established by the appropriate Government under section 7A of the Industrial Disputes Act, 1947 and for such purpose such dispute shall be deemed to be industrial dispute within the meaning of that Act and it shall be the responsibility of the producer of the audio-visual programme to provide the facilities specified in the agreement to the audio-visual worker and the payment of wages shall be through electronic mode.

67

Managers

In plain words

Every mine must have a sole qualified manager responsible for its overall management; the owner or agent may act as manager only if qualified, must confirm instructions to the manager in writing, and outside emergencies must not bypass the manager on statutory duties.

(1)

Save as may be otherwise prescribed, every mine shall be under a sole manager who shall have such qualifications as may be prescribed by the Central Government and the owner or agent of every mine shall appoint a person having such qualifications to be the manager:

Proviso

Provided that the owner or agent may appoint himself as manager if he possesses the prescribed qualifications.

(2)

Subject to any instructions given to him by or on behalf of the owner or agent of the mine, the manager shall be responsible for the overall management, control, supervision and direction of the mine and all such instructions when given by the owner or agent shall be confirmed in writing forthwith.

(3)

Except in case of an emergency, the owner or agent of a mine or anyone on his behalf shall not give, otherwise than through the manager, instructions affecting the fulfilment of his statutory duties, to a person, employed in a mine, who is responsible to the manager.

68

Code not to apply in certain cases

In plain words

Apart from sections 35, 38, 40, 41 and 44, the Code does not apply to prospecting-only mines or to mines extracting listed materials such as ordinary sand, ordinary clay, gravel and building stone, subject to conditions notified by the Central Government; if those conditions are breached, the whole Code applies at once, and the Central Government can also declare that the Code applies to such a mine.

(1)

The provisions of this Code, except those contained in sections 35, 38, 40, 41 and 44, shall not apply to—

(a)

any mine or part thereof in which excavation is being made for prospecting purposes only and not for the purpose of obtaining minerals for use or sale subject to such conditions relating to number of employees, depth of excavation and other matters as may be prescribed by the Central Government;

(b)

any mine engaged in the extraction of kankar, murrum, laterite, boulder, gravel, shingle, ordinary sand (excluding mouldings and glass sand and other mineral sands), ordinary clay (excluding kaolin, china clay, white clay or fire clay), building stone, slate, road metal, earth, fullers earth (marl, chalk) and lime stone subject to such conditions relating to workings, open cast workings and explosives as may be prescribed by the Central Government.

(2)

Notwithstanding anything contained in sub-section (1), the Central Government may declare that the provisions of this Code shall apply to such mine or part thereof as may be prescribed by the Central Government.

(3)

Without prejudice to the provisions contained in sub-section (2), if at any time any of the conditions specified in clause (a) or clause (b) of sub-section (1) is not fulfilled in relation to any mine referred to in that sub-section, the provisions of this Code not set out in sub-section (1), shall become immediately applicable, and it shall be the duty of the employer of the mine to inform about such non-fulfilment to such authority in such manner and within such time as may be prescribed by the Central Government.

69

Exemption from provision regarding employment

In plain words

In an emergency, accident, act of God or urgent breakdown repair, a mine manager may let people work outside the normal rules on hours of work, double employment and the notice of periods of work (sections 25, 30 and 31(1)) on work needed for safety, but must record each case and report it to the Chief Inspector-cum-Facilitator or Inspector-cum-Facilitator.

(1)

In case of an emergency involving serious risk to the safety of the mine or of persons employed therein, or in case of an accident, whether actual or apprehended, or in case of any act of God or in case of any urgent work to be done to machinery, plant or equipment of the mine as a result of breakdown of such machinery plant or equipment, the manager may, subject to the provision of clause (B) of sub-section (1) of section 38 and in accordance with the provisions of section 25 relating to exemption from hours of work above ground, hours of work below ground and notification regarding hours of work and weekly day of rest relating to mines under section 26, permit persons to be employed in contravention of sections 25 and 30 and sub-section (1) of section 31 on such work as may be necessary to protect the safety of the mine or of the persons employed therein:

Proviso

Provided that in case of any urgent work to be done to machinery, plant or equipment under this section, the manager may take the action permitted by this section, although the production of mineral would thereby be incidentally affected, but any action so taken shall not exceed the limits necessary for the purpose of avoiding serious interference with the ordinary working of the mine.

(2)

Every case in which action has been taken by the manager under sub-section (1), shall be recorded together with the circumstances relating thereto and a report thereof shall also be made to the Chief Inspector-cum-Facilitator or the Inspector-cum-Facilitator.

70

Employment of persons below eighteen years of age

In plain words

No one below 18 may work in a mine, except apprentices and trainees aged 16 or above under proper supervision, and trainees other than apprentices need the prior approval of the Chief Inspector-cum-Facilitator or an Inspector-cum-Facilitator.

(1)

No person below eighteen years of age shall be allowed to work in any mine or part thereof.

(2)

Notwithstanding anything contained in sub-section (1), apprentices and other trainees, not below sixteen years of age, may be allowed to work, under proper supervision, in a mine or part thereof by the manager as referred to in section 67:

Proviso

Provided that in the case of trainees, other than apprentices, prior approval of the Chief Inspector-cum-Facilitator or an Inspector-cum-Facilitator shall be obtained before they are allowed to work.

(3)

The Central Government may prescribe the provisions for medical examination of apprentice, other trainee and employee in the mine to ensure their fitness to work and to prevent the persons below sixteen years of age to work as apprentice or trainee and those who are not adults to work as such employee.

Explanation

Explanation.—In this section, "apprentice" means an apprentice as defined in clause (a) of section 2 of the Apprentices Act, 1961.

71

Exemption to certain persons

In plain words

The Central Government may make rules exempting certain persons or categories employed in mines from the daily hours limit, the weekly day of rest, the bar on double employment and the notice of periods of work (sections 25(1), 26(1), 30 and 31(1)).

The Central Government may make rules to provide for exemption to certain persons or category of persons employed in mines from the provisions of sub-section (1) of section 25, sub-section (1) of section 26, section 30 and sub-section (1) of section 31.

73

Decision of question whether a mine is covered under this Code

In plain words

If there is a question whether an excavation or premises counts as a mine under the Code, the Central Government decides, and a certificate signed by a Secretary in the Ministry of Labour and Employment is conclusive proof.

If any question arises as to whether any excavation or working or premises in or adjacent to and belonging to a mine, on which any process ancillary to the getting, dressing or preparation for sale of minerals or of coke is being carried on in a mine within the meaning of this Code, the Central Government may decide the question, and a certificate signed by a Secretary to the Government of India in the Ministry of Labour and Employment shall be conclusive proof thereof.

74

Licence to industrial premises and person

In plain words

No employer may use premises for making beedi or cigars without a licence, which is granted after looking at the premises, experience, finances and labour welfare, is valid for 5 years, and can be renewed on an application made at least 30 days before it expires.

(1)

Save as otherwise provided in this Part, no employer shall use or allow to use any place or premises as an industrial premises unless he holds a valid licence issued under section 119 for the purposes of this Part and no such premises shall be used except in accordance with the terms and conditions of such licence.

(2)

Subject to the provisions of section 119, any person who intends to use or allows to use any place or premises specified in sub-section (1) shall make an application to the authority referred to in sub-section (1) of section 119, in such form and on payment of such fees as may be prescribed by the State Government, for a licence to use, or allow to use, such premises as an industrial premises.

(3)

Subject to the provisions of section 119, the application shall specify the maximum number of employees proposed to be employed at any time of the day in the place or premises and shall be accompanied by a plan of the place or premises prepared in such manner as may be prescribed by the State Government.

(4)

Subject to the provisions of section 119, the authority referred to in sub-section (1) thereof shall, in deciding whether to grant or refuse to grant a licence, have regard to the following matters, namely:—

(a)

the suitability of the place or premises which is proposed to be used for the manufacture of beedi or cigar or both;

(b)

previous experience of the applicant or he has employed experienced person or has entered into agreement with the experienced person for employment for the period of licence;

(c)

the financial resources of the applicant including his financial capacity to meet the demands arising out of the provisions of the laws for the time being in force relating to welfare of labour;

(d)

whether the application is made bona fide on behalf of the applicant himself or in benami of any other person;

(e)

welfare of the labour in the locality, the interest of the public generally and such other matters as may be prescribed by the State Government.

(5)

Subject to the provisions of section 119, a licence granted under the said section for the purposes of this section shall be valid for five years and may be renewed thereafter.

(6)

Subject to the provisions of section 119, an application for the renewal of a licence for the purposes of this Part shall be made at least thirty days before the expiry of the period thereof, on payment of such fees as may be prescribed by the State Government, and where such an application has been made, the licence shall be deemed to continue, notwithstanding the expiry of the period thereof, until the renewal of the licence, or, as the case may be, the rejection of the application for the renewal thereof:

Proviso

Provided that the authority referred to in sub-section (1) of section 119 shall not grant or renew a licence unless it is satisfied that the provisions of this Part and the rules made thereunder have been complied with:

Proviso

Provided further that the authority referred to in sub-section (1) of section 119 shall renew or refuse to renew the licence within such period as may be prescribed by the State Government and in deciding whether to renew a licence or to refuse a renewal thereof shall have regard to the matters specified in sub-section (4).

(7)

Subject to the provisions of section 119, the authority referred to in sub-section (1) thereof may, after giving the holder of a licence an opportunity of being heard, cancel or suspend any licence granted or renewed under section 119 for the purposes of this Part, if it appears to it that such licence has been obtained by misrepresentation or fraud or that the licence has contravened or failed to comply with any of the provisions of this Part or the rules made thereunder or any of the terms or conditions of the licence.

(8)

The State Government may issue in writing to an authority referred to in sub-section (1) of section 119 such directions of a general character as that Government may consider necessary in respect of any matter relating to the grant or renewal of licence under section 119 relating to this section.

(9)

Subject to section 119 and the foregoing provisions of this section, the authority referred to in sub-section (1) of section 119 may grant or renew licence relating to this Part on such terms and conditions as it may determine and where such authority refuses to grant or renew any licence, it shall do so by an order communicated to the applicant, giving the reasons in writing for such refusal.

75

Appeals

In plain words

Anyone aggrieved by a refusal, cancellation or suspension of a beedi or cigar premises licence can appeal to the appellate authority within the time and on the fees notified by the government.

Any person aggrieved by the decision of the authority referred to in sub-section (1) of section 119 refusing to grant or renew a licence, or cancelling or suspending a licence, relating to this Part may, within such time and on payment of such fees as may be prescribed, appeal to the appellate authority referred to in sub-section (6) of section 119, and such authority may by order confirm, modify or reverse any order refusing to grant or renew a licence, or cancelling or suspending a licence, relating to this Part.

76

Permission to work by employees outside industrial premises

In plain words

Beedi or cigar making cannot be done outside licensed premises, except wetting or cutting of leaves allowed by the State Government on the employer's application, and home work by a worker given raw material by an employer or contractor.

(1)

The State Government may permit the wetting or cutting of beedi or tobacco leaves by employees outside the industrial premises on an application made to it by the employer on behalf of such employees, subject to such conditions as may be prescribed.

(2)

The employer shall maintain the record of the work permitted under sub-section (1), to be carried on outside the industrial premises, in such form as may be prescribed.

(3)

Save as otherwise provided in this section, no employer shall require or allow any manufacturing process connected with the making of beedi or cigar or both to be carried on outside the industrial premises:

Proviso

Provided that nothing in this sub-section shall apply to any worker who is given raw material by an employer or a contractor to make beedi or cigar or both at home.

77

Part not to apply to self-employed persons in private dwelling houses

In plain words

The beedi and cigar rules do not apply to a self-employed person making them in their own home with help from dependent family members living there, and a child, as defined in the Child and Adolescent Labour (Prohibition and Regulation) Act, 1986, is not counted as family for this purpose.

Nothing contained in this Part shall apply to the owner or occupier of a private dwelling house, not being an employee of an employer to whom this Part applies, who carries on any manufacturing process in such private dwelling house with the assistance of the members of his family living with him in such dwelling house and dependent on him.

Explanation

Explanation.—For the purposes of this section,—

(i)

"family" does not include child, as defined in the Child and Adolescent (Prohibition and Regulation) Act, 1986, for this section;

(ii)

"private dwelling house" means a house in which persons engaged in the manufacture of beedi or cigar or both reside.

78

Prohibition of employment of certain persons in certain building or other construction work

In plain words

A person the employer knows or believes to be deaf, to have defective vision or to be prone to giddiness must not be made or allowed to do construction work that carries a risk of accident to them or others.

No person, about whom the employer knows or has reasons to believe that he is a deaf or he has a defective vision or he has a tendency to giddiness, shall be required or allowed to work in any such operation of building or other construction work which is likely to involve a risk of any accident either to the building worker himself or to any other person.

79

Approval and licensing of factories

In plain words

The government may make rules on factory plans, site and construction permission and licensing; an online permission application with no order within the set period, which cannot exceed 30 days, is deemed granted, and a refusal can be appealed within 30 days.

(1)

The appropriate Government may make rules in respect of factory or class or description of factories for—

(a)

the submission of plans including specifications, nature and certification thereof;

(b)

the previous permission for the site on which the factory is to be situated and for the construction or extension thereof; and

(c)

subject to the provision of sub-section 119, licensing and renewal thereof including fees to be payable for such, licensing and renewal, if required, as the case may be.

(2)

If on an application for permission referred to in clause (b) of sub-section (1) accompanied by the plans and specifications required by the rules made under clause (a) of that sub-section, sent to the State Government or Chief Inspector-cum-Facilitator in the electronic mode, no order is communicated to the applicant within such period not exceeding thirty days, the permission applied for in the said application shall be deemed to have been granted.

(3)

Where a State Government or a Chief Inspector-cum-Facilitator refuses to grant permission to the site, construction or extension of a factory and licensing of a factory, the applicant may within thirty days of the date of such refusal appeal to the Central Government if the decision appealed from was of the State Government and to the State Government in any other case.

Explanation

Explanation.—A factory shall not be deemed to be extended within the meaning of this section by reason only of the replacement of any plant or machinery or within such limits as may be prescribed, of the addition of any plant or machinery if such replacement or addition does not reduce the minimum clear space required for safe working around the plant or machinery or adversely affect the environmental conditions from the evolution or emission of steam, heat or dust or fumes injurious to health.

80

Liability of owner of premises in certain circumstances

In plain words

Where premises are leased to different occupiers as separate factories, the owner and the occupiers are jointly and severally responsible for common facilities such as fire safety, access, hygiene, ventilation, canteens, rest rooms and crèches, as notified by the government.

Where any premises or separate buildings are leased to different occupiers for use as separate factories, the owner of the premises and occupiers of the factories utilising such common facilities which include safety and fire prevention and protection, access, hygiene, occupational health, ventilation, temperature, emergency preparedness and response, canteens, shelter, rest rooms and crèches shall jointly and severally be responsible for provision and maintenance of such common facilities and services as may be prescribed by the appropriate Government.

81

Power to apply Code to certain premises

In plain words

The government can, by notification, apply all or any of the factory provisions to any place with a manufacturing process, whatever the number of workers; the place is then treated as a factory, the owner (including a lessee or mortgagee in possession) as the occupier and anyone working there as a worker.

(1)

The appropriate Government may, by notification, declare that all or any of the provisions of this Part shall apply to any place wherein a manufacturing process is carried on with or without the aid of power or is ordinarily carried on irrespective of the number of workers working in the factory.

(2)

After a place is so declared, it shall be deemed to be a factory for the purposes of this Code, and the owner shall be deemed to be the occupier, and any person working therein, a worker.

Explanation

Explanation.—For the purposes of this section, "owner" shall include a lessee or mortgagee with possession of the premises.

82

Dangerous operations

In plain words

The government can make rules declaring a process dangerous and, for it, prohibiting or restricting the employment of pregnant women, requiring medical examinations at the occupier's cost and requiring welfare amenities and protective equipment.

The appropriate Government may by rules make the provisions relating to any factory or class or description of factories in which manufacturing process or operation is carried on which exposes any of the persons employed in it to a serious risk of bodily injury, poisoning or disease, for—

(a)

specifying the manufacturing process or operation and declaring it to be dangerous;

(b)

prohibiting or restricting the employment of pregnant women in the manufacturing process or operation;

(c)

the periodical medical examination before, or at any time during the employment to ascertain the fitness of a worker or employee for such employment on the cost of the occupier; and

(d)

welfare amenities, sanitary facilities, protective equipment and clothing, and any other requirement necessary for dangerous operations.

83

Constitution of site appraisal committee

In plain words

The government may set up site appraisal committees to advise on where a hazardous-process factory may be located or expanded, and a committee must give its recommendation within 30 days of receiving the application.

(1)

The appropriate Government may, constitute one or more site appraisal committees consisting of a chairman and other members, for such purpose as may be prescribed including to consider and to give recommendations on an application for grant of permission for the initial location of a factory involving a hazardous process or for the expansion of such factory.

(2)

The site appraisal committee referred to in sub-section (1) shall make its recommendation within a period of thirty days of the receipt of the application for any of the purpose referred to in the said sub-section in such form, as may be prescribed.

84

Compulsory disclosure of information by occupier

In plain words

The occupier of a hazardous-process factory must disclose hazards and safety measures to workers, the Inspector-cum-Facilitator, the local authority and nearby residents, set a health and safety policy, draw up an approved on-site emergency plan, and inform the Chief Inspector-cum-Facilitator within thirty days before starting a new hazardous process.

(1)

The occupier of every factory involving a hazardous process shall disclose in the manner prescribed by the State Government all information regarding dangers, including health hazards and the measures to overcome such hazards arising from the exposure to or handling of the materials or substances in the manufacture, transportation, storage and other processes, to the workers employed in the factory, the Chief Inspector-cum-Facilitator or Inspector-cum-Facilitator, the local authority within whose jurisdiction the factory is situate and the general public in the vicinity.

(2)

The occupier shall, at the time of registering the factory involving a hazardous process, lay down a detailed policy with respect to the health and safety of the workers employed therein and intimate such policy to the Chief Inspector-cum-Facilitator or Inspector-cum-Facilitator and the local authority and, thereafter, at such intervals as may be prescribed by the State Government, inform the Chief Inspector-cum-Facilitator or Inspector-cum-Facilitator and the local authority of any change made in the said policy.

(3)

The information furnished under sub-section (1) shall include accurate information as to the quantity, specifications and other characteristics of wastes and the manner of their disposal.

(4)

Every occupier shall, with the approval of the Chief Inspector-cum-Facilitator, draw up an on-site emergency plan and detailed disaster control measures for his factory and make known to the workers employed therein and to the general public living in the vicinity of the factory the safety measures required to be taken in the event of an accident taking place.

(5)

Every occupier of a factory shall, if such factory proposes to engage in a hazardous process at any time after the commencement of this Code, within a period of thirty days before the commencement of such process, inform the Chief Inspector-cum-Facilitator about the nature and details of the process in such form and in such manner as may be prescribed by the State Government.

(6)

Where any occupier of a factory contravenes the provisions of sub-section (5), the licence issued under section 79 to such factory shall, notwithstanding any penalty to which the occupier of factory shall be subjected to under the provisions of this Code, be liable for cancellation.

(7)

The occupier of a factory involving a hazardous process shall, with the previous approval of the Chief Inspector-cum-Facilitator, lay down measures for the handling, usage, transportation and storage of hazardous substances inside the factory premises and the disposal of such substances outside the factory premises and publicise them in the manner prescribed by the State Government among the workers and the general public living in the vicinity.

85

Specific responsibility of the occupier in relation to hazardous processes

In plain words

The occupier of a hazardous-process factory must keep health records of exposed workers that the workers can access on prescribed conditions, appoint qualified supervisors for hazardous substances, and medically examine workers before such a job, during it and after it at intervals not exceeding 12 months.

Every occupier of a factory involving any hazardous process shall—

(a)

maintain accurate and up-to-date health records or, as the case may be, medical records, of the workers in the factory who are exposed to any chemical, toxic or any other harmful substances which are manufactured, stored, handled or transported and such records shall be accessible to the workers subject to such conditions as may be prescribed by the State Government;

(b)

appoint persons who possess prescribed qualifications and experience in handling hazardous substances and are competent to supervise such handling within the factory and to provide at the working place all the necessary facilities for protecting the workers in the manner prescribed by the State Government:

Proviso

Provided that where any question arises as to the qualifications and experience of a person so appointed, the decision of the Chief Inspector-cum-Facilitator shall be final;

(c)

provide for medical examination of every worker—

(i)

before such worker is assigned to a job involving the handling of, or working with, a hazardous substance; and

(ii)

while continuing in such job, and after he has ceased to work in such job, at intervals not exceeding twelve months, in such manner as may be prescribed by the State Government.

86

National Board to inquire into certain situations

In plain words

In an extraordinary situation at a hazardous-process factory, the Central Government can direct the National Board to inquire into the safety standards followed, and the Board's recommendations are advisory.

(1)

The Central Government may, in the event of the occurrence of an extraordinary situation involving a factory engaged in a hazardous process, direct the National Board to inquire into the standards of health and safety observed in the factory with a view to finding out the causes of any failure or neglect in the adoption of any measures or standards prescribed by the State Government for the health and safety of the workers employed in the factory or the general public affected, or likely to be affected due to such failure or neglect and for the prevention of recurrence of such extraordinary situations in future in such factory or elsewhere.

(2)

The recommendations of the National Board shall be advisory in the nature.

87

Emergency standards

In plain words

Where safety standards for a hazardous process are missing or inadequate, the Central Government can have the Directorate General Occupational Safety and Health or another authorised institution set emergency standards, which are enforceable as if they were rules.

(1)

Where the Central Government is satisfied that no standards of safety have been prescribed in respect of a hazardous process or class of hazardous processes, or where the standards so prescribed are inadequate, it may direct the Directorate General Occupational Safety and Health formerly known as the Directorate General of Factory Advice Service and Labour Institutes or any Institution authorised in matters relating to standards of safety in hazardous processes, to lay down emergency standards for enforcement of suitable standards in respect of such hazardous processes.

(2)

The emergency standards laid down under sub-section (1) shall, until they are incorporated in the rules made under this Code, be enforceable and have the same effect as if they had been incorporated in the rules made under this Code.

88

Permissible limits of exposure of chemicals and toxic substances

In plain words

The maximum permissible limits of exposure to chemical and toxic substances in factories are those set by the State Government.

The maximum permissible limits of exposure of chemical and toxic substances in manufacturing process in any factory shall be of the value as may be prescribed by the State Government.

89

Right of workers to warn about imminent danger

In plain words

Workers in a hazardous-process factory who reasonably fear imminent danger can raise it with the occupier or manager, directly or through Safety Committee representatives, and with the Inspector-cum-Facilitator at the same time; management must act and report, or refer the matter to the Inspector-cum-Facilitator, whose decision is final.

(1)

Where the workers employed in any factory engaged in a hazardous process have reasonable apprehension that there is a likelihood of imminent danger to their lives or health due to any accident, they may, bring the same to the notice of the occupier, agent, manager or any other person who is in-charge of the factory or the process concerned directly or through their representatives in the Safety Committee and simultaneously bring the same to the notice of the Inspector-cum-Facilitator.

(2)

It shall be the duty of such occupier, agent, manager or the person in-charge of the factory or process to take immediate remedial action if he is satisfied about the existence of such imminent danger and send a report forthwith of the action taken to the Inspector-cum-Facilitator.

(3)

If the occupier, agent, manager or the person in-charge referred to in sub-section (2) is not satisfied about the existence of any imminent danger as apprehended by the workers, he shall, nevertheless, refer the matter forthwith to the Inspector-cum-Facilitator whose decision on the question of the existence of such imminent danger shall be final.

90

Appeal against the order of Inspector-cum-Facilitator in case of factory

In plain words

The government may prescribe how and to whom a factory manager or occupier can appeal against an order of the Inspector-cum-Facilitator.

The appropriate Government may prescribe provisions providing the manner in which and the appropriate authority to whom the manager or occupier of the factory may make appeal against the order of the Inspector-cum-Facilitator and the procedure for disposing of such appeals.

91

Power to make rules to exempt

In plain words

The government can make rules taking supervisory, managerial and confidential staff in factories outside the Code and exempting workers or classes of workers, and the government or Chief Inspector-cum-Facilitator can exempt adult workers by written order.

(1)

The appropriate Government may make rules,—

(a)

specifying the persons who hold positions of supervision or management or are employed in a confidential position in a factory or empowering the Chief Inspector-cum-Facilitator to declare any person, other than a person so specified, as a person holding position of supervision or management or employed in a confidential position in a factory if, in the opinion of the Chief Inspector-cum-Facilitator, such person holds such position or is so employed, and the provisions of this Code, shall not apply to any person so defined or declared;

(b)

in respect of any worker or class of workers in any establishment or class of establishment, for providing the exemption, extent of exemption and conditions subject to which such exemption may be given.

(2)

The appropriate Government or the Chief Inspector-cum-Facilitator may, by order in writing, exempt subject to such conditions as it may deem expedient, any or all of the adult workers in any establishment or class of establishments.

92

Facilities for workers in plantation

In plain words

The State Government may require plantation employers to provide housing with drinking water, kitchen and toilet, crèches where 50 or more workers are employed, schooling where more than 25 workers' children are aged 6 to 12, health facilities or ESI cover, and recreation.

(1)

Without prejudice to the generality of sections 23 and 24, the State Government may prescribe requiring every employer to make provisions in his plantation for—

(a)

necessary housing accommodation including drinking water, kitchen and toilet to every worker employed in the plantation (including his family);

(b)

crèches facilities where in the plantation fifty or more workers (including workers employed by any contractor) are employed or were employed on any day of the preceding twelve months:

Proviso

Provided that,—

(i)

an establishment may avail common crèche facility of the Central Government, State Government, municipality or private entity or provided by non-Governmental organisation or by any other organisation; or

(ii)

a group of establishments may agree to pool their resources for setting up of common crèche;

(c)

educational facilities for the children of the workers employed in the plantation where the children between the ages of six to twelve of the workers exceed twenty-five in number;

(d)

health facilities to every worker employed in the plantation (including his family) or provide coverage under the Employees State Insurance Act, 1948; and

(e)

recreational facilities for the workers employed in the plantation.

(2)

An employer of a plantation shall be responsible to provide and maintain welfare facilities for which the workers in the plantation are entitled under this Code either from his own resources or through the schemes of the Central Government or State Government, Municipality or Panchayat for the locality in which the plantation is situated.

Explanation

Explanation.—For the purposes of this sub-section—

(i)

the expression "Municipality" has the same meaning as assigned to it in clause (e) of article 243 of the Constitution; and

(ii)

the expression "Panchayat" has the same meaning as assigned to it in clause (d) of article 243 of the Constitution.

93

Safety

In plain words

Plantation employers must protect workers handling insecticides, pesticides and toxic chemicals through qualified supervisors, training, periodic medical examinations, health records the workers can see, washing facilities, protective clothing, a displayed list of permissible concentrations and warning notices.

(1)

In every plantation, arrangement shall be made by the employer to provide for the safety of a worker in connection with the use, handling, storage and transport of insecticides, pesticides and chemicals and toxic substances.

(2)

The State Government may prescribe for special safeguards for employment of women or adolescents in using or handling hazardous chemicals.

(3)

The employer of a plantation shall appoint persons possessing the prescribed qualifications to supervise the use, handling, storage and transportation of insecticides, chemicals and toxic substances in his plantation.

(4)

Every employer of a plantation shall ensure that every worker in plantation employed for handling, mixing, blending and applying insecticides, chemicals and toxic substances, is trained about the hazards involved in different operations in which he is engaged, the various safety measures and safe work practices to be adopted in emergencies arising from spillage of such insecticides, chemicals and toxic substances and such other matters as may be prescribed by the State Government.

(5)

Every worker in a plantation who is exposed to insecticides, pesticides, chemicals and toxic substances shall be medically examined periodically, in such manner as may be prescribed by the State Government.

(6)

Every employer of a plantation shall maintain health record of every worker in plantation who is exposed to insecticides, pesticides, chemicals and toxic substances which are used, handled, stored or transported in a plantation, and every such worker shall have access to such record.

(7)

Every employer of a plantation shall provide—

(a)

washing, bathing and clock room facilities; and

(b)

protective clothing and equipment,

to every worker engaged in the handling insecticides, pesticides, chemicals and toxic substances in such manner as may be prescribed by the State Government.

(8)

Every employer of a plantation shall display in the plantation, a list of permissible concentrations of insecticides, pesticides, chemicals and toxic substances in the breathing zone of the workers engaged in the handling and application of insecticides, pesticides, chemicals and toxic substances in the plantation.

(9)

Every employer of a plantation shall exhibit such precautionary notices in the plantation as may be prescribed by the State Government indicating the hazards of insecticides, pesticides, chemicals and toxic substances.

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