1. INDUSTRIAL RELATIONS AND LABOUR LAWS
   Industrial Relations
   Industrial relations: It means the relationship between labour and management which arises through interactive processes. T. Dunlop defines Industrial relations as the complex interrelations among managers, workers & agencies of government.
   Parties in Industrial Relations: Employees, Employers, Government, Employers’ organisation, Trade unions, Courts & tribunals, etc. Approaches to Industrial Relations (IR):
   1) Unitary Approach: It is based on the core assumption that there is only one source of authority i.e., the management, which owns and controls the dynamics of decision making in issues relating to negotiation and bargaining. Under unitary approach, industrial relations are grounded in mutual cooperation, individual treatment, team-work, and shared goals. It has paternalistic approach where it demands loyalty of all employees.
   2) Pluralistic Approach: It assumes that organization is composed of individuals who form distinct groups with their own set of aims, objectives, leadership styles, and value propositions. It considers conflict between management and employees as rational and inevitable. State intervention through legislation and industrial tribunals is necessary to protect the overall interest of society.
   3) Marxist Approach (Radical Perspective): It is based on the proposition that the economic activities of production, manufacturing, and distribution are majorly governed by the objective of profit. It regard conflict between employers and employees as inevitable (like in pluralistic). Industrial conflict is seen as being synonymous with political and social unrest. Marxists regard state intervention as supporting management’s interest rather than ensuring a balance between the competing groups.
   4) Systems Approach: (by Prof. John T. Dunlop) – According to Dunlop, the industrial relations system comprises certain actors (viz., managers, workers, government agencies), contexts, and an ideology, which binds them together and a body of rules created to govern the actors at the workplace and work community.
   5) Giri Approach: (V.V. Giri) Collective bargaining’s and mutual negotiations between management and labour should be used to settle industrial disputes. He suggested that there should be bipartite machinery in every industry and every unit of the industry to settle differences from time-to-time with active encouragement of Government Outside interference should not encroach upon industrial peace.
   6) Human Relations Approach: (Keith Davis) The concept of human relations approach underlines the need for making the individuals familiar with the work situations of the organization and uniting the efforts of the workers.
   7) Industrial Sociology Approach: (G. Margerison) It holds the view that the core of industrial relations is the nature and development of the conflict itself.
   8) Action Theory Approach: (Henry Sanders) The actors operate within a framework, which can at best be described as a coalition relationship. The action theory analysis of industrial relations focuses primarily on bargaining as a mechanism for the resolution of conflicts.
   9) Oxford Approach: (Flanders) According to this approach, the industrial relations system is a study of institutions of job regulations and the stress is on the substantive and procedural rules as in Dunlop’s model. Flanders considers every business enterprise a social system of production and distribution, which
   has a structured pattern of relationships. The “institution of job regulation” is categorised by him as
   internal (rules, wage structure, grievance procedure) and external (trade unions).
   10) Trusteeship Approach/ Perspective: The theory of trusteeship is based on the view that all forms of property and human accomplishments are gifts of nature and as such, they belong not to any one individual but to society. Thus, the trusteeship system is totally different from other contemporary labour relations systems.
   Important Terms:
   Golden Handshake:
   A golden handshake is a clause in an executive employment contract that provides the executive with a significant severance package in the case that the executive loses their job through firing, restructuring, or even scheduled retirement. This can be in the form of cash, equity, and other benefits, and is often accompanied by an accelerated vesting of stock options. Golden handshake is similar to, but more generous than a golden parachute because it not only provides monetary compensation and/or stock options at the termination of employment, but also includes the same severance packages executives would get at retirement.
   Golden Handcuffs:
   Golden handcuffs refers to financial allurements and benefits that have the objective to encourage highly compensated employees to remain within a company or organization instead of moving from company to company (or organization to organization) (opposite of a golden parachute). Golden handcuffs come in different forms, such as employee stock options or restricted stock, which endow only when the employee has been with the company or organization for a certain number of years, and contractual agreements, consisting of bonuses or other forms of benefits which must be repaid to the company if the employee leaves before the date agreed on. Golden handcuffs are frequently used for jobs that require rare and specialised skills or in a “tight labour market”, where jobs are more common than workers.
   Glass ceiling:
   A glass ceiling is a metaphor usually applied to women, used to represent an invisible barrier that prevents a given demographic from rising beyond a certain level in a hierarchy. No matter how invisible the glass ceiling is expressed, it is actually a difficult obstacle to overcome. The metaphor was first used by feminists in reference to barriers in the careers of high-achieving women. It was coined by Marilyn Loden during a speech in 1978.
   Yellow-dog contract:
   A yellow-dog contract (a yellow-dog clause of a contract, also known as an ironclad oath) is an agreement between an employer and an employee in which the employee agrees, as a condition of employment, not to be a member of a labour union. In the United States, such contracts were used by employers to prevent the formation of unions, most often by permitting employers to take legal action against union organizers. In 1932, yellow-dog contracts were outlawed in the United States under the Norris-LaGuardia Act.
   De-jobbing:
   Means reducing the number of jobs in the organization through the combined processes of increasing functional flexibility, delayering the hierarchy, and downsizing the workforce.
   Iron law of wages:
   The iron law of wages is a proposed law of economics that asserts that real wages always tend, in the long run, toward the minimum wage necessary to sustain the life of the worker. The theory was first named by Ferdinand Lassalle in the mid-nineteenth century.
   It was coined in reference to the views of classical economists such as David Ricardo’s law of rent, and the competing population theory of Thomas Malthus. It held that the market price of labour would always, or almost always, reduce as the working population increased and vice versa. Ricardo believed that this happened only under particular conditions.
   Feather bedding:
   Featherbedding is the practice of hiring more workers than are needed to perform a given job, or to adopt work procedures which appear pointless, complex and time-consuming merely to employ additional workers. The term “make-work” is sometimes used as a synonym for featherbedding.
   Trade unionism:
   It is system, methods, or practice of trade or labour unions or trade unions collectively.
   Theories of Trade Unionism
   1) Class struggle theory of Karl Marx: It traced the origin of trade unionism to the growth of industrial capitalism. Trade union is an instrument for destroying capitalist class. According to Karl Marx, trade union is an organizing centre. Trade union is necessary to bring about revolutionary and fundamental changes in social class order.
   2) Webb’s theory of Industrial Democracy: According to Webb, trade unionism is an extension of democracy from political sphere to industrial sphere. Equality of bargaining power & collective negotiations is the solution of class conflict. Webb agreed with Marx that trade unionism is a class struggle and modern capitalist state is a transitional phase which will lead to democratic socialism. Trade union is an instrument to eliminate industrial autocracy. Webb’s book ‘Industrial democracy’ is the Bible of trade unionism.
   3) Cole’s theory of Industrial Unionism & control of industry: Cole’s views are given in his book “World of Labour” 1913. His views are somewhere in between Webb and Marx. He agrees that unionism is class struggle and the ultimate is the control of industry by labour and not revolution as predicted by Marx.
   4) Mitchell’s Economic Protection Theory of Trade Unionism: Mitchell, a labour leader, completely rejected individual bargaining. According to him unions afford economic protection to.
   5) Tannenbaum’s Anti-technology Theory (Theory of Man Vs. Machine): Industrial revolution (automation) threatens the security of workers. Trade union aims at control over machines.
   6) Simons Theory of Monopolistic, anti-Democratic Trade Unionism: He denounced trade unionism as monopoly founded on violence and he claimed monopoly power has no use save abuse.
   7) Hoxie’s Theory of Business union/Functional classification of Unionism – It explained origin of trade unionism in group psychology. According to him, workers who are similarly situated economically and
   socially, closely associated and not too divergent in temperament and training will tend to develop a common solution of their problems of living.
   8) Common’s Pragmatic Approach/Environment Theory: This theory is based on a set of premises which are mostly environmental factors that’s why it is also called as ‘Environmental theory of labour movement’. The outcome of Common’s theory of labour unionism is non-revolutionary and implies non-acceptance of capitalism which fell considerably short of even the Webb’s expectations of political evolution.
   9) Perlman’s Theory of Scarcity Consciousness: Workers are conscious of the existence of scarcity of opportunity, and they have evolved institutions to hedge and distribute opportunities among members. He rejected the idea of class consciousness as an explanation for the origin of the trade union movement but substituted it with what he called job consciousness.
   10) Mahatma Gandhi’s Sarvodaya Theory – It is based on Sarvodaya principles of Truth, Non-violence and Trusteeship. According to him capital & labour should supplement each other.
   Five functional types of unionism by Robert F. Hoxie:
2. Business Unions (Bread and Butter union): These are trade conscious rather than class conscious. They accept the existing economic system and aim at bringing about improvement in the wages and working conditions of their members.
3. Revolutionary Unions: These are class conscious. Their aim is to overthrow capitalistic system and install socialistic system.
4. Predatory unions: Unions of this kind do not subscribe to any ideology. Such unions are characterized by their ruthless pursuit of immediate ends. Their methods include collective bargaining, secret bribery and violence.
5. Friendly or Uplift Unions: These unions mainly aim at improving the intellectual, moral and social life of their members. They are idealistic in nature. Since they are law-abiding, they believe in the institution of collective bargaining and also setting up of cooperative enterprises, mutual insurance, profit-sharing, etc.
6. Dependent Unions: A depend union is parasitic in nature relying upon the support of the employers or other labour groups.
   a) Company Union: This type of union totally depends on the employer for its support and does not really represent the interest of the workers in so far as it is not opposed to the interest of the management.
   b) Union label Union: These types of union depend upon the union label being imprinted on the products made by the union members.
   Trade unions can be classified into following categories on basis of membership structure:
   1) Craft union- (Occupational union) It is organisation of workers employed in particular craft/occupation. It may cover all workers engaged in a particular craft irrespective of the industries in which they are employed e.g. plumbers, electricians etc.
   2) Industrial unions- (Vertical union) An industrial union is organised on the basis of an industry rather than a craft.
   3) General unions- A General union is one whose membership covers workers employed in different industries and crafts.
   Bargaining and Negotiations:
   Collective Bargaining:
   The term “collective bargaining” refers to the negotiation of employment terms between an employer and a group of workers. Employees are normally represented by a labor union during collective bargaining.
   The terms negotiated during collective bargaining can include working conditions, salaries and compensation, working hours, and benefits. The goal is to come up with a collective bargaining agreement through a written contract. According to the International Labour Organization, collective bargaining is a fundamental right for all employees.
   The process goes through a number of stages:
   ➢ Identifying the issues and preparing the demands: This may include a list ofgrievances, such as abusive management practices or low salaries.
   ➢ Negotiating: The union will hire a team of professional negotiators to reach an agreement with the employer. The employer will also hire negotiators, and the two teams will continue to meet until they find a satisfactory agreement.
   ➢ Coming to a tentative agreement: Once an agreement is reached, both teams of negotiators will submit the agreement to their constituents. At this time, any last-minute issues will be raised as the details are hammered out.
   ➢ Accepting and ratifying the agreement: The agreement will be submitted to union members, who will have the opportunity to vote for or against the new contract.
   ➢ Administering the agreement: After an agreement is finalized, workers and shop stewards will continue monitoring to ensure that the company is abiding by its obligations.
   Types of Collective Bargaining:
7. Composite Bargaining:
   Composite bargaining has nothing to do with compensation. Instead, it focuses on other issues, such as working conditions, job security, and other corporate policies. These may include hiring and firing practices as well as workplace discipline. The goal of composite bargaining is to come up with a suitable agreement leading to a lasting and harmonious relationship between employers and their employees.
8. Concessionary Bargaining:
   As its name implies, concessionary bargaining focuses on union leaders making concessions in exchange for job security. This is common during an economic downturn or a recession. Union leaders may agree to give up certain benefits to guarantee the survival of the employee pool and, ultimately, of the business.
9. Distributive Bargaining:
   This process is characterized as benefiting one party financially at the expense of the other. This can come through increased bonuses, salaries, or any other financial benefits. Distributive bargaining normally favors workers over employers.
10. Integrative Bargaining:
    Each party tries to benefit through integrative bargaining, which is why it’s often referred to as a form of win-win bargaining. Each side tries to consider the other’s position and bring issues to the table that aim to
    benefit both parties. As such, employees and employers both stand to lose and gain with integrative bargaining.
11. Productivity Bargaining:
    This type of bargaining revolves around compensation and the productivity of employees. Labor union leaders often use higher salaries and compensation as a way to boost employee productivity, which leads to higher profits and value for the employer. For this kind of bargaining to work, both parties need to agree to financial terms in order to increase productivity.
    Pros and Cons of Collective Bargaining:
    Pros:

• Employees have a larger voice.
• Improves workplace conditions and protects employees
• Establishes rights and responsibilities of employers and employees
  Cons:
• Lengthy process
• Comes at a high cost
• Employers may be forced to negotiate and accept unfavorable terms.
  Walton & McKersie Negotiation Framework (Behavioral theory of labour negotiations):
  4 sets of activities are considered to account for almost all of the behavior in negotiations as follows:

1. Distributive Bargaining:
   Competitive behaviors.
   The parties bargain over division of a particular pie, and one party’s gain is a direct loss for the opponent. It is a fixed-sum game, or distributive bargaining.
2. Integrative Bargaining:
   Problem-solving behaviors.
   Both sides search for solutions that would increase the size of the pie.
   In game theory models, this approach is referred to as a variable-sum game.
3. Attitudinal Structuring:
   Activities affecting attitudes of the parties to one another.
   This sub process defines the quality and type of relationship between labor and management. Encompasses the parties’ efforts, intended and unintended, to shape their opponents’ behaviors.
4. Intra-organizational Bargaining:
   Behaviors of a negotiator for achieving consensus within his own organization.
   Takes place largely away from the bargaining table and refers to the internal negotiations that occur within the respective organizations.
   Each side must resolve some of these internal conflicts before it can reach a settlement with its bargaining opponent.
   Contract Zone: Its outer limits are determined by the bargaining parties. For example, in the case of a potential automobile transaction, there is a price at which the buyer would rather walk than drive, and there is a price at which the seller would rather keep than sell the automobile
   Trade union security measures:
   Types of Union security measures are as follows:
5. Closed Shop: In this, the employer agrees to hire only union members. Those who resign from the union must be dismissed.
6. Union Shop: In this, the employer may hire anyone regardless of them being a member of the trade union but the employee must join the union within the stipulated time period.
7. Agency Shop: The employer may hire anyone and there is no need for the employee to join the union
8. Dues check off: It is the contract between the employer and the union where the employer agrees to collect fees from union members directly from their paycheck and transmit those funds to the union on regular basis.
   Evolution of Labour laws & Trade unions in India
   ➢ 1st labour agitation in India – In Bombay, 1875 under the leadership of S.S Bengalee.
   ➢ 1st Factory commission, 1875: During Lord Ripon’s time, the first Factories Act was accepted in 1881. Following this act, a Factory Commission was appointed in 1885. Arbuthnott was the president of the First Factory Commission.
   ➢ 1st Factories act, 1881: This act mainly aim to improve the working conditions of labour such as regulation of working hours. The act prohibited employment of children under the age 7. This act is applicable only to factories using mechanical powers, employing not less than 100 workers. Children between the ages 7-12 were to work for maximum 9 hours.
   ➢ Narayan Meghaji Lokhande (1848–1897) established Bombay Mills Hands Association in 1890 to fight for worker’s rights (1st leader to organised labour union in India). He is acclaimed as the Father of the Trade Union Movement in India (first leader to organize labour movement in India)
   ➢ Afterwards, various trade unions came into being:
   In 1897, the Amalgama Society of Railway Servants of India was established and registered under the Companies Act.
   Printers’ Union Calcutta (1907) Postal Union (1907)
   Kamgar Hitwardhak Sabha (1909) Social Service League (1910).
   ➢ Mahatma Gandhi along with Ansuyaben Sarabhai and Shankerlal Banker founded the Ahmadabad textile labour association in 1918.
   ➢ 1st organised trade union: Madras Labour Union (1918) – established by B. P. Wadia.
   ➢ Establishment of International Labour Organization (ILO) by the 1919 Peace Conference that followed World War I. A branch of ILO was established In India and a regular conference of I.L.O. was started in India.
   ➢ All India Trade Union Congress (AITUC) – Set up in 1920. Founded by Lala Lajpat Rai, Joseph Baptista, N.M Joshi and Diwan Chaman Lal. Lajpat Rai was first president of AITUC. The All India Trade Union Congress (AITUC) is the oldest trade union federation in India.
   ➢ Trade Union Act of 1923 and Industrial Disputes Act, 1929.
   ➢ British government established the Royal Commission on Labour in 1929. It was chaired by John Henry Whitely.Reports of this commission laid down way for a series of labour legislations from 1932 to 1937 including Payment of Wages Act, 1936, Trade Disputes (Amendment) Act 1938.
   ➢ The unions which separated themselves from AITUC, formed their own all India body – All India Trade Union Federation.
   ➢ In 1931, a new All India Trade Union – All India Red Trade Union Congress came into being.
   ➢ In 1934, a grand session of Indian Trade Union Congress took place. This session was presided over by Pandit Harinath Shastri. In this session, an agreement was reached between All India Red Trade Union Congress and Trade Union Congress. All India Red Trade Union Congress was abolished. Subsequently in 1938, Trade Union Federation was also merged in All India National Trade Union Congress.
   ➢ In 1941, Indian Trade Union Labour Federation” came into existence led by M.N. Roy.
   ➢ Indian Labour Conference: The first meeting of the Indian Labour Conference (then called Tripartite National Labour Conference) was held in 1942 and so far a total of 46 Sessions have been held. ILC also known as the ‘labour parliament’ of the country formed on the lines of International Labour Conference is the apex level tripartite (Government, Employers and Workers) consultative committee in the Ministry of Labour & Employment. International Labour Conference also known as International Parliament of Labour is a conference organized by ILO every year.
   ➢ Industrial Employment Act, 1946 and Bombay Industrial Relations Act, 1946.
   ➢ In 1947, Indian National Trade Union Congress was established under aegis of ‘Gulzarilal Nanda and Sardar Patel.’
   ➢ Hind Mazdoor Sabha (Praja Socialist Party): It was founded in west Bengal in 1948. Its founders included Basawan Singh (Sinha), Ashok Mehta, R.S. Ruikar, Mani Benkara, Shibnath Benerajee,
   R.K. Khedgikar, T.S. Ramanujam, VS. Mathur, G.G. Mehta.
   ➢ In 1949, United Trade Union Congress (UTUC) headed by Professor K.T. Shah came into existence.
   ➢ In 1955, Bhartiya Mazdoor Sangh was established under aegis of Rashtriya Swayamsevak Sangh (RSS).
   ➢ In 1957, 15th session of Indian Labour Conference evolved code of discipline.
   ➢ Code of Discipline of Industries, 1962: Principles of the Code of Discipline:
9. There should be no strike or lockout without proper notice.
10. No unilateral action should be taken in connection with any industrial matter.
11. There should be no resource to go slow tactics.
12. No deliberate damage should be caused to a plant or property.
13. Acts of violence, intimidation, coercion or instigation should not be resorted to.
14. The existing machinery for settlement of disputes should be utilized.
15. Awards and agreements should be speedily implemented.
16. Any action which disturbs cordial industrial relation should be avoided.
    ➢ 1st National Commission on Labour (1966) under the Chairmanship of Justice P.B. Gajendragadkar. It recommended to set up working committee in any unit which has a recognized union.
    ➢ 2nd National Commission on Labour in (1999) under the chairmanship of Ravindra Verma.
    It recommended that the existing Labour Laws should be broadly grouped into 4 or 5 Labour Codes on functional basis by simplifying, amalgamating and rationalizing the relevant provisions of the existing about 44 Central Labour Laws.
    ➢ Wage Board for Working Journalists 2009: G.R. Majithia
    ➢ Index Review Commission 2009: G.K. Chadha
    United Nation’s Universal Declaration of Human Rights (UDHR) & Labour provisions:
    There are total 30 articles, of which Articles 22–27 sanction an individual’s economic, social and cultural rights, including healthcare.
    Article 22:
    Everyone, as a member of society, has the right to social security and is entitled to realization, through national effort and international co-operation and in accordance with the organization and resources of each State, of the economic, social and cultural rights indispensable for his dignity and the free development of his personality.
    Article 23:
    Everyone has the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment.
    Everyone, without any discrimination, has the right to equal pay for equal work.
    Everyone who works has the right to just and favourable remuneration ensuring for himself and his family an existence worthy of human dignity, and supplemented, if necessary, by other means of social protection. Everyone has the right to form and to join trade unions for the protection of his interests.
    Article 24:
    Everyone has the right to rest and leisure, including reasonable limitation of working hours and periodic holidays with pay.
    Article 25:
    Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care and necessary social services, and the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control. Labour Laws & Indian Constitution (Related Articles)
    Fundamental Rights:
    Article 14:
    Equality before the law which is interpreted in labour laws as “Equal pay for Equal work”. There are a few exceptions in it regarding labour laws such as physical ability, unskilled and skilled labours shall receive payment according to their merit.
    In the case of Randhir Singh vs Union of India, the Supreme Court said that “Even though the principle of ‘Equal pay for Equal work’ is not defined in the Constitution of India, it is a goal which is to be achieved through Article 14,16 and 39 (c) of the Constitution of India.
    Article 16:
    Equality of opportunity in matters of public employment
    16(1) There shall be equality of opportunity for all citizens in matters relating to employment or appointment to any office under the State
    16(2) No citizen shall, on grounds only of religion, race, caste, sex, descent, place of birth, residence or any of them, be ineligible for, or discriminated against in respect or, any employment or office under the State. 16(3) Parliament can prescribe residence as condition for certain employment.
    16(4) State can make provisions for reservations in favour of backward class.
    16(5) Incumbent of an office related to religious/denominational institution can belong to that particular religion/denomination.
    Article 19 (1) (c): All citizens shall have right to form associations/unions/cooperative societies.
    The Trade Union Act, 1926 works through this Article of the Constitution. It allows workers to form trade unions.
    Article 19 (1) (g): All citizen shall have right to practice any profession/carry any occupation, trade, or business.
    Article 23:
    Prohibition of traffic in human beings and beggar & other forms of forced labour.
    In current times, forced or bonded labour is an offense which is punishable under the law. The Bonded Labour (Abolition) Act, 1976 prohibits all kinds of bonded labour and is declared illegal.
    In People’s Union for Democratic Rights vs. Union of India 1983, it was held that labour or services for a remuneration less than a minimum wage amounts to “forced labour”.
    23(2) – State can impose compulsory service for public purpose.
    Article 24:
    No child below the age of 14 years shall be employed to work in any factory/mine or engaged in any other hazardous employment.
    DPSPs:
    Article 38: State to minimise inequalities in income, status, facilities and opportunities. This was added by 44th amendment act, 1976.
    Article 39: To secure opportunities for healthy development of children. This was added by 42nd amendment act, 1976.
    Article 39 (a): State shall secure right to an adequate means of livelihood.
    Article 39 (d): The State shall, in particular, direct its policy towards securing; that there is equal pay for equal work for both men and women.
    Article 39A: To Promote equal justice and to provide free legal aid to the poor. This was added by 42nd amendment act, 1976.
    Article 41: To secure right to work, to education & to public assistance in case of unemployment, old age, sickness & disablement.
    Article 42: State shall make provisions for just & humane conditions for work & maternity relief.
    Article 43: State shall endeavour -1) To secure work, living wage, decent standard of living, full enjoyment of leisure & social & cultural opportunities to all workers. 2) To promote cottage industries on an individual or cooperative basis in rural areas.
    Article 43A: State shall secure participation of workers in management of industries. This was added by
    42nd amendment act, 1976.
    7th SCHEDULE (Article 246): Labour is a concurrent subject in the Constitution of India. However, certain matters are reserved for the Centre.
    Union List:
    Entry 55 – Regulation of labour and safety in mines and oilfields. Entry 61 – Industrial disputes concerning Union employees.
    Entry 65 – Union agencies and institutions for “Vocational …training…”
    Concurrent List:
    Entry No. 22 Trade unions, industrial and labour disputes
    Entry No. 23 Social security and insurance, employment and unemployment
    Entry No. 24: Welfare of labour including conditions of work, provident funds, employers “invalidity and old age pension and maternity.
    State List:
    Entry 9 – Relief of the disabled and unemployable.
    Theories of Labour Welfare:
    As per the Committee on Labour Welfare, welfare services should mean, “Such Services, facilities, and amenities as adequate canteens, rest and recreation facilities, sanitary and medical facilities, arrangements for travel to and from the place of work, and for the accommodation of workers employed at a distance”.
17. Policing Theory:
    According to this theory, the factory and other industrial workplaces provide many opportunities for owners as well as managers to exploit workers in an unfair manner. This is done by making the labour work for very long hours, by paying unfair wages, by not keeping the workplace hygienic, by ignoring safety and health provisions like drinking water, canteens, restrooms etc.
    The welfare state, therefore, has to prevent this exploitation and to do so, it assumes the role of a policeman, and makes it mandatory for the managers of industrial establishments to provide welfare facilities, and also punishes the non-complier.
18. Philanthropic Theory:
    Philanthropy refers to affection for mankind. This theory of labour welfare refers to the provision of good working conditions, crèches, canteens and drinking water facilities etc., so as to remove the disabilities of the workers.
    Employers having concern for their workers may undertake such labour welfare measures for the benefit of workers.
19. Religion Theory:
    The Religion theory consists of two aspects, namely, Investment and Atonement.
    The Investment aspect states that the fruits of today’s deeds will be reaped tomorrow. Therefore, any action, good or bad, is treated as an investment and inspired by this aspect (Investment), some employers plan and organize canteens and crèches.
    The Atonement aspect of the religion theory states that the current disabilities of an individual are the outcome of the sins committed by him/her previously. Therefore, he/she should pledge to do good deeds now so as to atone or compensate for his/her sins.
20. Placating Theory:
    The Placating theory is based on the assumption that appeasement pays when the workers are organised and are militant.
    Workers’ demand for higher wages and better working conditions cannot be left unattended. Therefore, some welfare measures need to be taken so as to bring peace.
21. Trusteeship Theory:
    The Trusteeship Theory is also called the Paternalistic Theory of labour welfare. According to this theory, the employer or the industrialist holds the total industrial estate, properties and the profits accruing from them, in trust. Workers are also not able to take care of themselves for reasons such as lack of education, low wages etc.
    The employers should, therefore, provide for the well-being of the workers out of the funds that are in their control.
22. Functional Theory:
    The Functional Theory is also called the Efficiency Theory of labour welfare. It states that welfare facilities are provided so as to make the workers more efficient. The workers will work efficiently if they are treated kindly if they are provided with clean and safe working conditions, good canteens etc.
23. Public Relations Theory:
    The Public Relations Theory is based on the fact that welfare activities are provided to the workers so as to create a good impression on their minds and the public and this can be done by providing clean and safe working conditions, a good canteen, creche and other measures.Providing such measures help making a good impression on the workers, visitors and the public.
24. Social Theory:
    The Social Theory of labour welfare states that along with improving the condition of its employees an industrial establishment is also morally bound to improve the conditions of the society.
    Citizen concept of labour –

• As a citizen in a democracy has certain inalienable rights and voice in determining and exercising these rights.
• Industrial Labour has also the same right as industrial citizens.
• Labour has a right to be consulted in regard to the terms and conditions under which they are supposed to work.
• Labour welfare is also mandatory in an Industry, which is an extension of the term welfare and its application to labour.
• The term labour, labourer, workers, workman or employee are all used to refer to the wage- earning human agents in the industry.
• The concept of labour welfare has received inspiration from the concepts of democracy and welfare state.
  International Labour Organization (ILO):

1. It is a United Nations agency whose mandate is to advance social and economic justice by setting international labour standards.
2. Founded in October 1919 by the Treaty of Versailles under the League of Nations, it is the first and oldest specialised agency of the UN in the year 1946.
3. The International Labour Organization (ILO) is the only tripartite U.N. agency with government, employer, and worker representatives. The ILO celebrated its 100th anniversary in 2019.
4. The ILO has 187 member states: 186 out of 193 UN member states plus the Cook Islands. India is a founder member of the International Labour Organization.
5. It is headquartered in Geneva, Switzerland.
6. ‘World Employment and Social Outlook’ and ‘Global wage report’ is released by International Labour Organization.
   Declaration of Philadelphia (10 May 1944):
   It restated the traditional objectives of the International Labour Organization (ILO) and then branched out in two new directions: the centrality of human rights to social policy, and the need for international economic planning. With the end of the world war in sight, it sought to adapt the guiding principles of the ILO “to the new realities and to the new aspirations aroused by the hopes for a better world. It was adopted at the 26th Conference of the ILO in Philadelphia, United States of America. In 1946, when the ILO’s constitution was being revised by the General Conference convened in Montreal, the Declaration of Philadelphia was annexed to the constitution and forms an integral part of it by Article 1.
   The declaration focused on a series of key principles to embody the work of the ILO. These include:
7. Labour is not a commodity.
8. Freedom of expression and of association are essential to sustained progress.
9. Poverty anywhere constitutes a danger to prosperity everywhere.
10. The war against want requires … unrelenting vigour … (for) the promotion of the common welfare. (I, d)
    All human beings, irrespective of race, creed or sex, have the right to pursue both their material well-being and their spiritual development in conditions of freedom and dignity, of economic security and equal opportunity.
    The eight ILO fundamental Conventions are:
11. Forced Labour Convention, 1930 (No. 29),
12. Abolition of Forced Labour Convention, 1957 (No. 105)
13. Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87)
14. Right to Organise and Collective Bargaining Convention, 1949 (No. 98)
15. Equal Remuneration Convention, 1951 (No. 100)
16. Discrimination (Employment and Occupation) Convention, 1958 (No. 111)
17. Minimum Age Convention, 1973 (No. 138), and
18. Worst Forms of Child Labour Convention, 1999 (No. 182)
    Among these 8 core fundamental convention India ratify 6 Convention. India has not ratified the two core/fundamental conventions:
19. Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87)
20. Right to Organise and Collective Bargaining Convention, 1949 (No. 98)
    Note: Remember ‘Convention number’ E.g. No. 138 for Minimum Age Convention.
    Labour welfare organisations under Ministry of Labour & Employment:
    Dattopant Thengadi National Board for Workers Education and Development (DTNBWED):
    It is an autonomous body under the Ministry of Labour & Employment, Government of India. It is registered under the Societies Registration Act, 1860. Started in 1958.
    Chief Labour Commissioner (CLC):
    It is known as Central Industrial Relations Machinery was set up in April, 1945 in pursuance of the recommendation of the Royal Commission on Labour in India and was then charged mainly with duties of prevention and settlement of industrial disputes, enforcement of labour laws and to promote welfare of workers in the undertakings falling within the sphere of the Central Government.
    Directorate General Factory Advice Service and Labour Institutes (DGFASLI):
    The office of the Chief Adviser of factories, which is now called Directorate General, Factory Advice Service and Labour Institutes, was setup in 1945 with the objective of advising Central and State Governments on administration of the Factories Act and coordinating the factory inspection services in the States. Headquarters situated in Mumbai.
    Employees State Insurance Scheme (ESIC): ESIC scheme was inaugurated in Kanpur on 24th February 1952 (ESIC Day) by then Prime Minister Pandit Jawahar Lal Nehru.
    It is one of the two main statutory social security bodies under the ownership of Ministry of Labour and Employment, Government of India, the other being the Employees’ Provident Fund Organisation. The fund is managed by the Employees’ State Insurance Corporation (ESIC) according to rules and regulations stipulated in the ESI Act 1948.
    In March 1943, Prof. B.P.Adarkar was appointed by the Government of India to create a report on the health insurance scheme for industrial workers. The report became the basis for the Employment State Insurance (ESI) Act of 1948.
    Founded: 24 February 1952, Headquarters: New Delhi
    The ESI Scheme applies to factories and other establishment’s viz. Road Transport, Hotels, Restaurants, Cinemas, Newspaper, Shops, and Educational/Medical Institutions wherein 10 or more persons are employed. However, in some States threshold limit for coverage of establishments is still 20.
    The ESI Scheme is financed by contributions from employers and employees. The rate of contribution by employer is 4.75% of the wages payable to employees. The employees’ contribution is at the rate of 1.75% of the wages payable to an employee. Employees, earning less than Rs. 137/- a day as daily wages, are exempted from payment of their share of contribution.
    Employees Provident Fund Organisation (EPFO):
    EPFO is one of the World’s largest Social Security Organisations in terms of clientele and the volume of financial transactions undertaken. The Employees’ Provident Fund came into existence with the promulgation of the Employees’ Provident Funds Ordinance on the 15th November, 1951. It was replaced by the Employees’ Provident Funds Act, 1952.
    EPFO Scheme:
    EPF Scheme 1952
    Accumulation plus interest upon retirement and death.
    Partial withdrawals allowed for education, marriage, illness and house construction.
    Housing Scheme for EPFO Members to achieve Hon’ble Prime Minister’s Vision of housing to all Indians by 2022.
    Pension Scheme 1995 (EPS)
    Monthly benefit for superannuation/retirement, disability, survivor, widow(er) and children. Minimum pension on disablement.
    Past service benefit to participants of erstwhile Family Pension Scheme, 1971.
    Insurance Scheme 1976 (EDLI)
    Benefit provided in case of death of an employee who was a member of the scheme at the time of death. Benefit amount 20 times of the wages. Maximum benefit of 6 lakh.
    Pandit Deendayal Upadhyaya National Academy of Social Security (PDNASS):
    NATRSS was set up in 1990, by Employees” Provident Fund Organisation. Ever since its inception, PDNASS has been emerging as a premier institution involved in training, research and consultancy in the social security sector.
    V.V. Giri National Labour Institute (VVGNLI):
    It is an autonomous body of the Ministry of Labour and Employment, Government of India, set up in July 1974, is a premier Institute of Labour Research, Training and Education at Noida, Uttar Pradesh.
    SAMADHAN Portal (Software Application for Monitoring And Disposal, Handling of Industrial Disputes/Claims/General Complaints): It is a digital initiative of the Ministry of Labour and Employment to make the life of workmen, management, trade union and other stakeholders smooth by making the system more user-friendly, transparent & efficient though online documentation, centralized monitoring & reducing disposal time by giving them a single online platform for raising their grievances.
    DigiSaksham: National Career Service (NCS) Portal now offers “DigiSaksham” Microsoft I MoLE Training by Microsoft free of cost for its registered Jobseekers on digital skills, with a focus on rural and socially disadvantaged youth.
    New Labour Codes:
    Ministry of Labour & Employment has consolidated 29 central labour laws into 4 labour codes.
    Labour code
    Acts subsumed under it
    Code on Industrial Relations
    Trade Unions Act, 1926
    Industrial Employment (Standing Orders) Act, 1946 Industrial Disputes Act, 1947
    Code on Wages
    Payment of Wages Act, 1936 Minimum Wages Act, 1948 Payment of Bonus Act, 1965 Equal Remuneration Act, 1976
    Code on Social Security
    Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
    Employees’ State Insurance Act, 1948 Employees’ Compensation Act, 1923
    Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959
    Maternity Benefit Act, 1961 Payment of Gratuity Act, 1972
    Cine-workers Welfare Fund Act, 1981
    Building and Other Construction Workers’ Welfare Cess Act, 1996
    Unorganised Workers Social Security Act, 2008
    Code on Occupational Safety, Health & Working conditions
    Factories Act, 1948
    Mines Act, 1952
    Dock Workers (Safety, Health and Welfare) Act, 1986 Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 Plantations Labour Act, 1951
    Contract Labour (Regulation and Abolition) Act, 1970 Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
    Working Journalist and other Newspaper Employees (Conditions of Service and Miscellaneous Provision) Act, 1955
    Working Journalist (Fixation of Rates of Wages) Act, 1958 Motor Transport Workers Act, 1961
    Sales Promotion Employees (Condition of Service) Act, 1976 Beedi and Cigar Workers (Conditions of Employment) Act, 1966
    Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981
    Code on industrial relations:
    Comparison with previous acts
    Provisions
    Previous Acts
    Code on Industrial relations
    Non-Employee
    Persons employed in a managerial/administrative/in a supervisory capacity with wages
    exceeding Rs 10,000/- (Industrial Dispute Act, 1947).
    Persons employed in a managerial/administrative capacity/in a supervisory capacity with wages exceeding Rs 18,000/-.
    Fixed term employment
    No provision regarding fixed term employment. Introduces a new provision for “fixed term employment” which means engagement of a worker on the basis of a written contract of employment for a fixed period. They are eligible for all statutory benefits available to a permanent worker.
    Strike, Lock-outs 14 days prior notice of strike and lock-out – Applicable only to public utility services.
    Notice of 14 days before a strike or lock-out. This notice is valid for a maximum of 60 days. (Applies to all industrial establishment irrespective
    of Public Utility Services).
    Applicability of Standing Order
    Applies to all the industrial establishments (within India) with an engagement of more than 100workmen (Industrial Dispute
    Act, 1947)
    All industrial establishment with
    300workers or more.
    Negotiating union/council No such provision.
    Sole Negotiating Union: If there were more than one registered trade union of workers functioning in an establishment, the trade union having more than 51% of the workers as members would be recognised as the sole negotiating union.
    Negotiation Council: In case no trade union is eligible as sole negotiating union, negotiating council will be formed consisting of representatives of unions that have at least 20% of the
    workers as members.
    Grievance Redressal
    Workman need not raise its grievance to the committee before moving to a conciliation officer. (Industrial Dispute Act)
    It mandates that establishment with 20 or more employees shall constitute one or more Grievance Redressal Committee.
    Disciplinary proceedings
    No time limit mentioned for completing the disciplinary proceedings against the worker.
    Investigation and inquiry have to be completed within 90 days from the date of suspension of a worker.
    Trade union forum for appeal
    It lies before high court also.
    Appeal against non-registration or cancellation of registration lies only before tribunal
    Industrial Tribunal
    Resolution of Industrial dispute use to be done by only 1 member Tribunal.
    Now the Industrial tribunal will consist of 2 members out of whom one shall be a judicial member and the other will be an administrative
    member.
    Notice for Retrenchment
    1 month notice (for industry employing less than 50 workers), 3 Months’ notice (for Industry employing not less than 100
    workers)
    1 Month notice is required.
    Re-employment or retrenched worker
    No such time period prescribed Within 1 year period only
    PRIOR PERMISSION
    For lay off, retrenchment & closure of establishment
    Applied for industrial establishment where 100 or more workers are employed.
    All industrial establishment with
    300workers or more.
    Workers Reskilling Fund
    Not existed.
    Employer will be required to deposit an amount equal to fifteen days last drawn wages of every retrenched worker.
    ➢ Definition of Industry:
    Industry means any systematic activity carried on by cooperation between an employer and for production, supply or distribution of goods/services with a view to satisfy human wants/wishes whether or not:
    Any capital has invested for purpose of carrying on such activity. Such activity is carried on with motive to make any gain or profit but does not include:
    Institutions owned/managed by organization wholly/substantially engaged in any charitable, social or philanthropic service.
    Any activity of appropriate government relatable to sovereign functions of appropriate government including all activities carried on by departments of central government dealing with defense, research, atomic energy & space, any domestic service.
    Any activity notified by central government.
    ➢ Definition of Worker:
    Worker means any person except an apprentice employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether terms of employment be express or implied and includes working journalists and includes any such person who has been dismissed, discharged or retrenched or retrenchment has led to that dispute. Or whose dismissal, discharge or retrenchment has led to dispute, but does not include any such persons:
    Who is subject to Air force act 1950/Army act 1950/Navy Act 1957.
    Who is employed in police service or as an officer or other employee of a prison or Who is employed mainly in managerial or administrative capacity.
    Who is employed in supervisory capacity drawing wage of exceeding Rs. 18000/month or amount as may be notified by central government.
    Code on wages:
    Comparison with previous acts:
    Provisions
    Previous provisions
    Code on Wages
    Applicability
    Applicable only on scheduled employments under Minimum
    Wages Act, 1948.
    Applicable to all employees including organized and unorganized sector.
    Revision of minimum wages
    Minimum wages must be revised by the Central or State governments at least once in every 5 years.
    Mandates that minimum wages be revised in five-year intervals.
    Settlement period for monthly wages
    If <1000 employees – 7th of succeeding month. If >1000 employees – 10th of succeeding month. 7th of succeeding month. In case the employee is removed/dismissed/retrenched/resign, wages are required to be paid within 2 working days.
    Claims for wages, bonus
    Claims for wages and bonus can be filed within period varying from 6 months to 2
    years.
    Claim could be made within 3 years.
    Applicability to employee Applied to those employees drawing less than Rs.24,000/- for filing claim under Payment of Wages Act, 1936.
    All employees are protected without any wage limit.
    National minimum wage/Floor wage No provision to fix floor wages
    Central Government will fix national minimum wage /floor wage after taking into account minimum standard of living of workers. The State
    Government shall not fix minimum wage below the floor wage.
    Registers & returns Over 10 Registers. Four returns.
    Only 2 registers are required to be
    maintained. Only one return to be filed.
    Overtime payment
    Different States have different provisions for overtime
    payment
    Overtime payment shall be at 2 times the normal wages/ ordinary wages
    Bonus
    The Payment of Bonus Act, 1965: Applies to every establishment which has 20 or more employees whose wages do not exceed Rs.21,000 per month.
    Applies to every establishment which has 20 or more employees.
    All employees whose wages do not exceed specific monthly amount (to be specified by central/state government) will be entitled to annual bonus- Minimum 8.33%and maximum 20%.
    Some More Provision of Code on Wages:
    ➢ Definition of wages:
    Includes-Basic Pay, dearness allowance & retaining allowance
    Excludes-statutory bonus, value of house accommodation & utilities, employer contribution to provident fund/pension, conveyance allowance/travelling concession, house rent, allowance, remuneration, overtime allowance, commission, gratuity, retrenchment, compensation.
    Quantum of exclusion- The specified exclusions, however may not exceed 50% of all renumeration and in event of exceeding, such excess amount shall be deemed as renumeration and will be considered as wage.
    ➢ Mode of payment of wages:
    i) Coins, ii) Currency notes, iii) Cheque, iv) by crediting to bank a/c, v)through electronic mode.
    ➢ Inspector cum Facilitator: Not just inspecting authority (as in erstwhile acts) but also facilitator toward compliance.
    ➢ Advisory boards:
    Central Advisory Board – Employees, Employers(equal in numbers as of employees), Independent persons (not exceeding 1/3rd of total), 5 representative of state government.
    The Central Advisory Board shall consist of persons to be nominated by the Central Government representing employers and employees in the scheduled employments who shall be equal in number and independent persons not exceeding one-third of its total number of members; one of such independent persons shall be appointed the Chairman of the Board by the Central Government.
    State Advisory Board – Employees, Employers (equal in numbers as of employees), Independent persons (not exceeding 1/3rd of total). 1/3rd of total members of central and state advisory board must be women.
    Code on social security:
    Comparison with previous acts:
    Provisions
    Previous provisions
    Code on social security
    Registration/Cancellation of establishment
    Required under all previous acts.
    If Establishment is registered under any existing Central Labour Laws, it is not required to obtain registration under Section 3 of the Code of Social
    Security.
    Employees
    Not include contract labours.
    Include workers employed through contractors.
    Interstate migrant workers
    Not include self-employed workers.
    Include self-employed workers from another state.
    Gig workers and Platform workers
    Not defined.
    Defined & mandated social service schemes for them.
    Assessment & determination of dues from employer
    No limitation period was mentioned for determination of moneys due from an employer
    In case of any dispute or proceedings for determination of dues from the employer, fixed the limitation period of proceedings and inquiry to be five years.
    Applicability for Employees’ State Insurance
    Where 10 or more persons are employed and therefore applies to both organised and unorganised sectors. (ESI Act, 1948)
    To every establishment with 10 or more employees except seasonal factory.
    Central government can extend it for establishment which carries hazardous occupation irrespective of number of employees employed. Employer of plantation who has opted for application of ESIC.
    It allows for voluntary registration(i.e., establishment with less than 10 employees can apply).
    Applicability for Gratuity
    Every factory; Every shop or establishment in which 10 or more persons are employed (The Payment of Gratuity Act, 1972).
    Every shop or establishment in which 10 or more employees are employed, and a continuous service of 5 years in general.
    It reduces the gratuity period from five years to three years for working journalists.
    Fixed term employees will be eligible for gratuity just after 1 year
    of serving an organisation
    Applicability for Maternity benefit
    Every shop or establishment wherein 10 or more persons are employed (Maternity Benefit (Amendment) Act, 2017.
    Every shop or establishment in which ten (10) or more employees are employed
    Social Security Organisations
    No such provision existed.
    It enforces Constitution of Social Security Organizations for the administration of funds.
    National social security board and state unorganised workers’ board
    Not existed.
    Code enforces for its constitution.
    Appeal to tribunal
    No appeal by employer shall be entertained by the Tribunal unless it has deposited a Demand Draft payable in the Fund and bearing 75% of the
    amount due from him.
    No appeal by the employer shall be entertained by the Tribunal unless it has deposited 25% of the amount due with Social Security Organization concerned.
    Excessive Sickness Benefit
    No such provision.
    It provides extra expenditure as sickness benefit for insanitary working conditions in the factory or
    in the accommodations due to the neglect of the owner.
    Some more provisions of Code on Social Security:
    ➢ It mandates government to form social security schemes for- Homebased workers, self-employed workers, wage workers, gig workers and platform workers.
    ➢ Employees’ Provident Fund:
    Applicable to every establishment with 20 or more employees.
    Contributions to PF: Employer – 10% of wages payable, Employee – 10% (or more if he/she want) Central Government can apply rate of 12% of wages for any establishment.
    ➢ It mandates an employee or a worker (including an unorganised worker) to provide Aadhaar number to receive social security benefits or to even avail services from a career centre.
    ➢ It is mandatory for any establishment to report vacancy to career centres before filling up the vacancy. However, there is no obligation on employer to recruit through career centre.
    ➢ Maternity Benefits:
    Women shall not work in any establishment during 6 weeks immediately following day of delivery, miscarriage or medical termination of pregnancy.
    Leave: Maximum 26 weeks of which not more than 8 weeks shall precede the expected day of delivery. Women shall be entitled to payment of maternity benefit at rate of average daily wage.
    Medical bonus of 3500/- or such amount as notified by central government from the employer if no pre- natal confinement or post-natal care is provided by employer.
    2 breaks (for duration as notified by central government) till child attains age of 15 months, Establishment with 50 or more employees, shall have creche facility.
    Woman who has actually worked in establishment for not less than 80 days in 12 month immediately preceding date of expected delivery can claim maternity benefit.
    Punishment- Imprisonment up to 6 months or/and fine up to 50000/-.
    In case of more than 2 surviving chid- Maternity leave will be of 12 weeks of which not more than 6 weeks shall precede the expected date of delivery.
    ➢ Unorganized/gig/platform workers:
    Registration: 2 Conditions- a) completed 16 years of age or other prescribed age, b) he/she has submitted a self-declaration containing information prescribed by central government.
    Contribution by aggregators shall be between 1-2% of the annual turnover of the aggregators, but not exceeding 5% of the annual amount paid or payable by him to his gig workers.
    The Occupational Safety, Health & Working Conditions Code:
    Provisions
    Previous
    New
    Definition of Factory
21. 10 workers, if the work is carried out using power, or
22. 20 workers, if it is carried out without using power. (The Factories Act, 1948)
23. 20 workers for premises where the work is carried out using power, and
24. 40 workers for premises where it is carried out without using power.
    Hazardous Industry
    Factories Act covered only the hazardous industries where any business, trade, or occupation is carried out with 10 or more workers. (The Factories Act, 1948)
    All establishments where any hazardous activity is carried out irrespective of the number of workers
    Contract workers
    The government may prohibit employment of contract labour in some cases including where: (i) the work is of a perennial nature, or (ii) the work performed by contract workers is necessary for the business carried out by the establishment, or (iii) the same work is carried out by regular workmen in the establishment.
    New Code prohibits contract labour in core activities, except where: (i) the normal functioning of the establishment is such that the activity is ordinarily done through contractor, (ii) the activities are such that they do not require full time workers for the major portion of the day, or (iii) there is a sudden increase in the volume work in the core activity which needs to be
    completed in a specified time
    Rights of Employees
    No such provision
    Every employee shall have right to obtain from employer information related to employee’s health & safety and report to Safety Committee also.
    Work Hour
    Maximum limit at 9 hours per day.
    Maximum limit at 8 hours per day.
    Overtime
    If a worker works beyond 9 hours a day or 48 hours a week, overtime wages are double the rate of wages are payable.
    (Factories Act,1948)
    Overtime work can be taken by the employer with consent of worker/employee. Overtime wages are twice the wage.
    Employment of Women
    A woman worker cannot be employed beyond the hours 6 a.m. to 7.00 pm.
    Employer can employ women employee between7 p.m. and 6 a.m. with her consent, subject toconditions on safety, holidays and working hours
    Social security fund
    No provision
    Establishment of a Social Security Fund for the welfare of unorganised worker.
    Inter-state Migrant Workers
    Not defined
    Inter-state migrant worker as a person who: (i) has been recruited by an employer or contractor for working in another state, and (ii)draws wages within the maximum amount notified by the central government; (iii)any person who moves on his own to another
    state and obtains employment
    Safety Committee When there are 1000 workers
    When 500 workers in a factory. 250 workers inhazardous process. 250 workers in building/other construction.
    100 workers in a mine
    Welfare Officer When there are 500 workers in factory.
    On 250 workers in factory, mine, plantation.
    Creche facility for children below 6 years of age For 30 Female workers
    For 50 female workers
    Canteen facility
    When 250 or more workers are employed
    When 100 or more workers are employed
    Other provisions:
    ➢ This code does not apply to offices of central government, state government and any ship of war or any nationality but it applies to contract labour employed through contractor in offices where central/state government are principal employer.
    ➢ Establishments covered by the Code are required to register within 60 days (of the commencement of the Code) electronically to the registering officers, appointed by the Central/state government.
    ➢ It introduces concept of core activity of an establishment as opposed to non-core activities such as sanitation, security, running canteens, hospitals, clubs, guest house, housekeeping, etc.
    ➢ District Magistrate shall be Inspector-cum-facilitator when mines are concerned.
    ➢ It allows the appropriate government to exempt contractors from the provisions of the code in case of an emergency, subject to such conditions as may be notified.
    ➢ It provides that no person below 18 years of age shall be allowed to work in any mine or part thereof but in case of apprentices &other trainees, such age limit is not below 16 years.
    ➢ Workers can’t be required to work for more than 6 days/week and will be entitled to 1 day off for every 20 days of work and 1 day off every week.
    ➢ Provisions regarding Annual leave:
    Eligibility: Worker must have worked for 180 days in calendar year.
    Entitlement: Leave entitlement shall be at the rate of one-day leave for every 20 days of work; In case of adolescent workers and workers employed below ground mine the same is one-day leave for every 15 days of work.
    Prohibition of Sandwich Leave Policy:Any holidays that fall in between the leave availed by a worker shall be excluded from the period of leave so availed.
    If a worker does not avail the whole of the leave allowed to him in any 1 calendar year, then, any leave not taken shall be added to the leave to be allowed to him in the succeeding calendar year. This is subject to the following conditions: –
    a) The total number of days of leave that may be carried forward to a succeeding year does not exceed 30 days;
    b) The worker who has applied for leave with wages but has not been granted the same shall be entitled to carry forward the leave refused without any limit.
    Worker shall be entitled to encashment of leave at the end of a calendar year if he requests the same. Where the total quantum of leave exceeds 30 days, a worker shall be entitled to encash such excess leave.
    Trade Unions Act, 1926
    ➢ The Trade Unions Act, 1926 provides for registration of trade unions with a view to render lawful organisation of labour to enable collective bargaining. It also confers certain protection and privileges on a registered trade union.
    ➢ The Act extends to the whole of India and applies to all kinds of unions of workers and associations of employers, which aim at regularising labour management relations.
    ➢ Definition –
    A Trade Union is a combination whether temporary or permanent, formed for regulating the relations not only between workmen and employers but also between workmen and workmen or between employers and employers.
    ➢ Appointment of Registrar:
    Section 3 of the Trade Union Act, 1926 empowers the Government to appoint a person to be registrar of Trade Unions. The appropriate Government (State/Central), as the case may be is also empowered to appoint additional and Deputy Registrars as it thinks fit for the purpose of exercising and discharging the powers and duties of the Registrar.
    ➢ Mode of Registration – Registration of a trade union is not compulsory but is desirable since a registered trade union enjoys certain rights and privileges under the Act.
    Section 4 of the Act provides for the mode of registration of the trade union.
    According to the Section, any seven or more than seven members of a trade union may by application apply for the registration of the trade union subject to the following two conditions:

• At Least 7 members should be employed in the establishment on the date of the making of the application.
• At Least 10% or a hundred members whichever is less, are employed in the establishment should be a part of it on the date of making the application.
  ➢ Trade dispute: “Trade dispute” means any dispute between employers and workmen or between workmen and workmen, or between employers and employers which is connected with the employment or non-employment, or the terms of employment or the conditions of labour, of any person, and “workmen” means all persons employed in trade or industry whether or not in the employment of the employer with whom the trade dispute arises;
  ➢ Rules of a Trade Union – Section 6 of the Act enlists the provisions which should be contained in the rules of trade union and it provides that no trade union shall be recognized unless it has established an executive committee in accordance with the provisions of the Act and specified rules.
  ➢ Section 7 of the Act furnishes upon the registrar power to call for information in order to satisfy himself that any application made by the trade union is proper. In matters where the discrepancy is found the registrar reserves the right to reject the application unless such information is provided by the union.
  ➢ According to Section 8 of the Act, if the registrar has fully satisfied himself that a union has complied with all the necessary provisions of the Act, he may register such union by recording all its particulars in a manner specified by the Act.
  ➢ According to Section 9 of the Act, the registrar shall issue a registration certificate to any trade union which has been registered under the provision of Section 8 of the Act and such certificate shall act as conclusive proof of registration of the trade union.
  ➢ Section 9A of the Act lays down the minimum number of members required to be present in any union which has been duly registered, the Sections mandates that a trade union which has been registered must at all times should continue to have not less than 10% or one hundred of the workmen, whichever is less, subject to a minimum of seven, engaged or utilized in an institution or trade with that it’s connected, as its members.
  ➢ The registrar, according to Section 10 of the Act has the power to withdraw or cancel the registration certificate of any union in any of the following conditions:
  On an application made by the trade union seeking to be verified in such manner as may be prescribed.
  If the trade union has ceased to exist.
  If the trade union has wilfully and after submitting a notice to the Registrar, has contravened any provision of the Act or has been continuing with any rule which is in contravention with the provisions of the Act.
  If any union has rescinded any rule provided under Section 6 of the Act.
  ➢ Legal Status of a Registered Trade Union Incorporation of Registered Trade Union Section 13 of the Act. It shall – Body corporate by the name under which it is registered.
  Have perpetual succession and a common seal.
  Power to contract and hold and acquire any movable and immovable property. By the said name can sue and be sued.
  ➢ Criminal conspiracy in Trade Disputes: Section 17 of the Act states that no member of a trade union can be held liable for criminal conspiracy regarding any agreement made between the members of the union in order to promote lawful interests of the trade union.
  ➢ Immunity from civil suits in certain cases: Section 18 of the Act immunes the members of trade union from civil or tortious liabilities arising out of any act done in furtherance or contemplation of any trade disputes.
  ➢ Appointment of Office Bearers: At least 50% of the office bearers of a union should be actually engaged or employed in the industry with which the trade union is concerned, and the remaining 50% or less can be outsiders such as Lawyers, politicians, social workers etc.
  ➢ To be appointed as an office bearer or executive of a registered trade union, a person must have:
  a) attained the age of 18 years; and b) not been convicted of any moral turpitude and sentenced to imprisonment, or a period of at least 5 years has elapsed since his/her release.
  ➢ Change of Name & Registered Office:
  A registered trade union may change its name with the consent of at least 2/3rds of the total numbers of its members.
  Notice of change of name in writing, signed by the secretary and 7 members of the union, should be sent to the registrar.
  Change of Registered Office Notice of change in registered office address should be given to the Registrar in writing within 14 days of such change.
  ➢ Amalgamation of Trade Unions: Any registered trade union may amalgamate with any other union(s), provided that-
  a) At least 50% of the members of each such union record their votes and
  b) At least 60% of the votes so recorded are in favour of amalgamation.
  ➢ Dissolution of a Trade Union: A registered trade union can be dissolved in accordance with the rules of the union. A notice of dissolution signed by any seven members and the secretary of the union should be sent to the registrar within 14 days of the dissolution. [The funds of the union shall be divided by the Registrar amongst dissolved Union’s members in the manner prescribed under the rules of the union or as laid down by the government.]
  ➢ The following Act, namely – (a) The Societies Registration At, 1863. (b) The co-operative Societies Act, 1912. And (c) The Company Act shall not apply to any registered Trade Union, had the registration of any such Trade Union under any such Act shall be void.
  Industrial Dispute Act, 1947
  ➢ Earlier laws dealing with Industrial disputes: Employers’ and Workmen’s Disputes Act, 1860, Trade Disputes Act, 1929, Rule 81-A, of the Defence of Indian Rules(during the 2nd World War).
  ➢ The Industrial Disputes Act 1947 came into force on 1 April 1947 and extends to the whole of India. It regulates Indian labour law so far as those concerns trade unions as well as Individual workman employed in any Industry within the territory of India. It applies only to the organized sector.
  ➢ Industrial Dispute is “any dispute of difference between employers and employers or between employers and workmen; or between workmen and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labour of any person.”
  ➢ Section 2A of Industrial Disputes Act, 1947, where any employer discharges, dismisses, retrenches or otherwise terminates the services of an individual workman, any dispute or difference between that workman and his employer connected with, or arising out of, such discharge, dismissal, retrenchment or termination shall be deemed to be an industrial dispute whether or not other workman nor any union of workmen is a party to the dispute.
  ➢ Industry – Any systematic activity carried on by co-operation between an employer and his workmen for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes (not being wants or wishes which are merely spiritual or religious in nature).
  ➢ Applicability –
  To whole of India and applies to every industrial establishment carrying on any business, trade, manufacture or distribution of goods and services irrespective of the number of workmen employed therein.
  Every person employed in an establishment for hire or reward including contract labour, apprentices and part time employees to do any manual, clerical, skilled, unskilled, technical, operational or supervisory work, is covered by the Act.
  ➢ It does not apply to persons mainly in managerial or administrative capacity, persons engaged in a supervisory capacity and drawing more than Rs. 10,000 per month or executing managerial functions and persons subject to Army Act, Air Force and Navy Act or those in police service or officer or employee of a prison.
  ➢ Workmen: The word ‘workman’ means any person employed in any industry etc. It is a very exhaustive term, including any person, apprentice employed in any industry to do any manual, skilled, unskilled, technical, operational, clerical or supervisory work for hire or reward etc.
  ➢ Closure: The Act defines “Closure” as the permanent closing down of a place of employment or part thereof. Here, the employer is constrained to close the establishment permanently.
  ➢ Controlled industry: “controlled industry” means any industry the control of which by the Union has been declared by any Central Act to be expedient in the public interest.
  ➢ Strike: Strike means a cessation of work by a body of persons employed in any industry acting in combination, or a concerted refusal or a refusal under a common understanding of any number of persons who are or have been so employed, to continue to work or to accept employment.
  ➢ Lock-out: It means the temporary closing of a place of employment or the suspension of work, or the refusal by an employer to continue to employ any number of persons employed by him.
  ➢ Restrictions & Prohibitions Strikes and Lockouts: It provides that no person employed in public utility service shall go on strike in breach of contract: a) Within 14 days of giving notice of strike or b) Without giving to employer notice of strike within 6 weeks before striking; or c) Before the expiry of the date of strike specified in any such notice as aforesaid; or d) During the pendency of any conciliation proceedings before a conciliation officer and 7 days after the conclusion of such proceedings.
  ➢ Declaration of Public Utility Service: The appropriate Government may declare any industry specified in the first Schedule of the Industrial Disputes Act, 1947 to be a public utility service for a period of six months by issuing a Notification in the Official Gazette which may extend from time to time for any
  period not exceeding six months if in the opinion of the appropriate Government public emergency or public interest requires extension.
  ➢ General prohibition of strike: Act imposes general restrictions on declaring strike in breach of contract in the both public as well as non- public utility services in the following circumstances mainly: – a) During the pendency of conciliation proceedings before a board and till the expiry of 7 days after the conclusion of such proceedings; b) During the pendency and 2 months after the conclusion of proceedings before a Labour court, Tribunal or National Tribunal; c) During the pendency and 2 months after the conclusion of arbitrator, when a notification has been issued under sub- section 3 (a) of section 10 A; d) During any period in which a settlement or award is in operation in respect of any of the matter covered by the settlement or award.
  [Conciliation proceeding before a conciliation officer is no bar to strike under this section].
  ➢ Lay-offs:
  “Lay-off” means the failure, refusal or inability of an employer on account of – 1) Shortage of coal, 2) Power or raw materials or the accumulation of stocks or 3) Break-down of machinery or 4) Natural calamity or for any other connected reason to give employment to a workman whose name is borne on the muster rolls of his industrial establishment and who has not been retrenched.
  Workman has right to lay-off compensation subject to the following conditions, they are: • Workman name should be borne on muster rolls of the establishment and he/she is not a badli workman or a casual workman; and • The workman should have completed not less than 1-year continuous service, and • The workman should have laid-off, continuously or intermittently;
  The lay-off compensation is equal to 50% of the total of the basic wages and dearness allowance that would have been payable to him, if he had not been so laid off.
  According to section 25C of Industry and dispute Act 1947, maximum days allowed to Layoff of employee by employer is 45 days.
  However, if this contingency is prolonging beyond a reasonable time, then parties can enter into an agreement not to continue lay-off after a period of 45 days in a year.
  Certain establishments do not have any provisions relating to layoff of the employees by the employer.
  a) Industrial establishments in which less than 50 workmen are employed, on an average per working day.
  b) Industrial establishments which are of a seasonal character and in which work is performed only intermittently.
  ➢ Act defines Retrenchment as the termination by the employer of the service of a workman for any reason whatsoever, but does not include – (a) Voluntary retirement of the workman, or (b) Punishment inflicted by way of disciplinary action, or (c) Retirement of the workman on reaching the age of superannuating if the contract of employment between the employer and the workman concerned contains a stipulation in that behalf; or (d) termination of the service of the workman as a result of the non-removal of the contract of employment between the employer and the workman concerned on its expiry or of such contract being terminated under a stipulation in that behalf contained therein; or (e) termination of the service of a workman on the ground of continued ill-health.
  ➢ Works or Workers’ Committee: Act provides that every industrial undertaking employing 100 or more workers is under an obligation to set up a works committee consisting equal number of representatives of employer and employees.
  ➢ Act empowers the Central & State governments to appoint conciliation officers and a Board of Conciliation as and when the situation demands.
  The Organization of the Chief Labour Commissioner (Central) acts as the primary conciliatory agency in the Central Government for industrial disputes
  ➢ The appropriate government may, by notification in the official gazette, appoint such number of persons as it thinks fit to be the conciliation officer. The conciliation officer however has no power to force a settlement.
  Whether the settlement has been reached or not, the report in either case must be submitted within 14 days of the commencement of conciliation proceedings or earlier.
  In case of failure of conciliation, a report is sent to Government. The Ministry of Labour after considering it, either refers the dispute for adjudication or refuses to do so.
  ➢ When the conciliation officer fails to resolve the disputes between the parties, the governments can appoint a Board of Conciliation. (It is not a permanent institution like the Conciliation officer. It is an adhoc, tripartite body having the powers of a civil court, created for a specific dispute.)
  The board cannot admit a dispute voluntarily. It can act only when the dispute is referred to it by the Government. The board is expected to submit its report within 2 months of the date on which the dispute was referred to it.
  ➢ In case of the failure of the conciliation proceedings to settle a dispute, the government can appoint a Court of Inquiry to enquire into any matter connected with or relevant to industrial dispute. The court of enquiry is required to submit its report within a period of six months from the commencement of enquiry. This report is subsequently published by the government within 30 days of its receipt.
  ➢ According to Act, in cases where the conciliation process fails, it is advised that the parties opt for voluntary arbitration. (Voluntary arbitration refers to getting the disputes settled through an independent person chosen by the parties involved mutually and voluntarily).
  The arbitration award becomes binding once it is enforceable on those parties who refer the disputes to the Arbitrator. Government will then publish it within 30 days of such submission. The award would become enforceable on the expiry of 30 days of its publication.
  ➢ For the purpose of adjudication, the Industrial Disputes Act provides a 3-tier machinery:
  A. Labour court
  B. Industrial Tribunal
  C. National Tribunal
  In case of failure of conciliation, the matter is referred to any of the Industrial Tribunal or Labour court and the process of adjudication begins. At the end of the proceedings an Award is given by the Presiding Officer. The Ministry of Labour publishes the Award in the Official Gazette within a period of 30 days from the date of receipt of the Award. An Award becomes enforceable on the expiry of 30 days from the date of its publication in the Official Gazette. The Regional Labour Commissioner is the implementing authority of the Awards.
  Industrial Employment (Standing Orders) Act:
  ➢ Applicability: The Act applies to the industrial establishments (within India) with an engagement of more than 100 workmen at present or as noted on any day in the preceding year unless provided by the appropriate Government for application to any such industrial establishment – with less than a hundred employees.
  ➢ Certification of Standing Orders: It is mandatory for every employer covered under the Industrial Employment (Standing Orders) Act to get standing orders certified by submitting five draft copies of the standing orders to the certifying officer such as labour commissioner or a regional labour commissioner and also includes any other officer appointed to perform the functions of certifying officer.
  ➢ Certification Process:
  1) Certifying Officer Send a copy of the Draft Standing Order to the workmen or trade union, along with a notice calling for objections that shall be submitted within 15 days of receiving such notice.
  2) Upon receipt of such objections, the employer and workmen to be given an opportunity of being heard, after which the Certifying Officer shall decide and pass an order for modification of the Standing Order. 3)Finally, the Certifying Officer shall certify such Standing Order, and thereby, within 7 days, send a copy of it annexed with his order for modification passed under Section.
  ➢ Appeals: Any related party aggrieved by the order of the Certifying Officer may appeal to the ‘appellate authority’ within 30 days, provided that its decision, of confirming such Standing Order or amending it, shall be final. The appellate authority shall thereafter send copies of the Standing Order, if amended, to the related parties within 7 days.
  ➢ Modification of Standing Order: Certified SO cannot be modified, except on agreement between the related parties, until 6 months from the last modification or operation of such standing order. The parties may apply to the Certifying Officer for modifications in the standing order by annexing five copies of the proposal or a certified copy of the agreement for modifications.
  ➢ Payment of Subsistence Allowance: Where any workman is known to be suspended at the investigation or inquiry into complaints or charges of misconduct against him, it is mandatory for the employer to pay to such workman subsistence allowance at the following rates: a)For the first 90 days: @ 50% of the wages which the workman was entitled to immediately preceding the date of such suspension. B) For 91 to 180 days: @ 75% of such wages of suspension if the delay in the completion of disciplinary proceedings against such workman is not directly attributable to the conduct of such workman.
  ➢ Penalty: If an employer defaults to submit draft standing orders or modifies his standing orders, then the concerned officer may impose a penalty which will be above Rs 5,000 and in the case of a continuation of offence may impose a fine which will be above Rs 200 for every day till the offence continues.
  If the establishment does any act in violation of the standing orders after getting certified under this Act, then the employer will be punishable with the penalty of which will be more than Rs 100 and in the case of a continuation of offence may impose a fine of Rs 25 for every day till the offence continues.
  ➢ Interpretation of Standing Orders: Any question relating to the application/interpretation of this Act may be referred to the Labour Courts constituted for this purpose, whose decision shall be final and binding on all parties.
  The Factories Act, 1948
  ➢ Applicability: -To the whole of India.
  Covers all manufacturing processes and establishments falling within the definition of ‘factory’. Applicable to all factories using power and employing 10 or more workers, and if not using power, employing 20 or more workers on any day of the preceding 1 Year.
  ➢ Definition of Factory:
  Factory means any premises including –

1. Where 10 or more workers are working, or were working on any day of the preceding 12 months and in any part of which is manufacturing process is being carried on with the aid of power as is ordinarily so carried on; or
2. Where 20 or more workers are working or were working on any of the preceding 12 months and in any part of which a manufacturing process is being carried on without the aid of power is ordinarily so carried on.
   ➢ A factory shall not include a mine subject to the operation of the Mines Act 1952 or a mobile unit belonging to the armed forces of the Union, a railway running shed or hotel, restaurant or eating places.
   ➢ The state government is empowered to apply the provisions to any establishment irrespective of number of employed persons. (Except where the work is done by the workers solely with the help of the members of his family.)
   ➢ Manufacturing process: It means any process for- (i) making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing or otherwise treating or adopting any article or substance with a view to its use, sale, transport, delivery or disposal; or (ii) Pumping oil, water, sewage, or any other substance; or (iii) Generating, transforming or transmitting power; or (iv) composing types for printing, printing by letter press, lithography, photogravure or other similar process or book-binding; or (v) Constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels; or (vi) Preserving or storing any article in cold storage.
   ➢ Approval, Licencing and registration of Factories:
   The State Government is empowered to frame rules regarding approval, licensing and registrations of Factories.
   Prior to giving such approvals by the state government, the chief inspector of factories should inspect the site to see new construction and extension of existing ones.
   Inspector, Chief inspector Inspecting Staff is appointed by the state government. Every District magistrate shall be the inspector of factories of his district.
   The State govt. should appoint certifying surgeon to take care of the health-related issues in the factories.
   ➢ Facilities:
   Ambulance room if 500 or more workers are employed;
   Canteen if 250 or more workers are employed.
   Rest rooms / shelters with drinking water when 150 or more workmen are employed.
   Crèches if 30 or more women workers are employed.
   Full time Welfare Officer if factory employs 500 or more workers [Section 49].
   Safety Officer if 1,000 or more workmen are employed.
   ➢ Working Hours:
   A worker cannot be employed for more than 48 hours in a week. He cannot be employed for more than 9 hours in a day.
   At least half an hour rest should be provided after 5 hours.
   Total period of work inclusive of rest interval cannot be more than 10.5 hours.
   A worker should be given a weekly holiday. Overlapping of shifts is not permitted.
   ➢ Overtime Wages: If a worker works beyond 9 hours a day or 48 hours a week, overtime wages are double the rate of wages are payable.
   ➢ Restriction on double employment: A workman cannot work in two factories.
   ➢ Employment of Women: A woman worker cannot be employed beyond the hours 6 a.m. to 7.00 pm. State Government can grant exemption to any factory or group or class of factories, but no woman can be permitted to work during 10 PM to 5 AM.
   ➢ A worker is entitled in every calendar year annual leave with wages at the rate of one day for every 20 days of work (provided that he had worked for 240 days or more in the previous calendar year)
   ➢ Child Employment:
   Child below age of 14 should not be employed.
   Child above 14 but below 15 years of age can be employed only for 4.5 hours per day or during the night. He cannot be employed during night between 10 pm to 6 am.
   Adolescent- A person over 15 but below 18 years of age is termed as ‘adolescent’. He can be employed as an adult if he has a certificate of fitness for a full day’s work from certifying surgeon. An adolescent is not permitted to work between 7 pm and 6 am.
   ➢ The Factories Act, 1948, was amended in 1987 to insert a Separate Chapter IV-A (Provisions dealing with hazardous processes) in the wake of the Bhopal gas tragedy.
   Payment of Wages Act, 1936
   ➢ Applicability: – To whole of India.
   To persons who are employed in- any factory/Railway/industrial establishment and whose wages do not exceed Rs. 24000/- per month.
   The State Government may after giving 3 months’ notice of its intention of so doing by notification in the Official Gazette extend the provisions of this Act or any of them to the payment of wages to any class of persons employed in any establishment of class of establishments.
   ➢ Every employer shall be responsible for the payment to persons employed by him of all wages required to be paid.
   ➢ Wage can be paid on daily, weekly, fortnightly & monthly only. (No wage-period shall exceed one month.)
   ➢ Time of Payment of Wages:
   Railway, factory or industrial or other establishment having less than 1000 employees- 7th of succeeding month.
   Other railway factory or industrial or other establishment having more than 1000 employees- 10th of succeeding month.
   For employees of port area, mines, wharf or jetty-7th of succeeding month.
   If the employee is terminated or removed for the employment by the employer the wage of that employee should be paid within 2 days from the day on which he was removed or terminated.
   ➢ Mode of payment – All wages shall be paid in current coin or currency notes or by cheque or by crediting the wages in the bank account of the employee.
   Bonded Labour System (Abolition) Act, 1976
   ➢ After the commencement of this Act, the liability of repayment of the debt would remain suspended and extinguished.
   The creditor can no longer force the worker to pay the debt. And there shall be no suit in any Court regarding the recovery of the same.
   ➢ Any property of the bonded labour which was confiscated by landlords and was under any mortgage, lien or other encumbrances shall be reinstated to the labourers and the debt related to the same shall be discharged.
   ➢ A person who was unchained and set free under this Act from any bonds, shall not be shown the door from residential complexes or premises that he was residing before the commission of this Act, by the creditor.
   ➢ The creditor, by virtue of law, is prevented from accepting payment against any bonded debt which has been withdrawn through this act.
   ➢ 3-tier system of implementation: State government confers the District Magistrate with the power to safeguard the provision of this Act. Further, the District Magistrate delegates the powers to an officer who will have the implementing powers at the local level.
   ➢ The State government is responsible for appointing a vigilance committee at every district and sub- division.
   ➢ When there arises a question of a debt claimed by bonded labour then the burden of proof will lie on the creditor to prove that the debt is not a bonded debt.
   ➢ After the commencement of this Act, all the property which was kept on bonds were to be given back
   to its original owner. This restoration shall be done within 30 days.
   ➢ The Executive Magistrate is conferred with the powers of a Judicial Magistrate of the first or second class as per the case by the State government. These Executive Magistrates with the conferred powers of a Judicial Magistrate will conduct the trial accordingly.
   ➢ Civil Courts do not have jurisdiction pertaining to cases under this act and thereby no Civil Court can issue an injunction relating to matters covered under this act.
   ➢ The Central government has the power to make rules or laws under this act through a notification in the Official Gazette.
   Maternity Benefit Act, 1961
   ➢ Maternity Benefit Act, 1961 has been amended through the Maternity (Amendment) Act, 2017.
   ➢ Applicability:
   The Act is applicable to establishments such as Factories, (factory as defined in the Factories Act, 1948), Mines (mine as defined in the Mines Act, 1952) and Plantations (plantation as defined in the Plantations Labour Act, 1951).
   It also applies to establishments belonging to Government and establishments wherein persons are employed for the exhibition of equestrian, acrobatic and other performances.
   It is also applicable to every shop or establishment defined under law, wherein 10 or more persons are employed on a day during the preceding 1year.
   ➢ Eligibility: A woman must be working as an employee in an establishment for a period of at least 80 days in the past 12 months to be entitled to maternity benefit under the act.
   ➢ Employment of women prohibited during 6 weeks immediately following the day of her delivery, miscarriage or medical termination of pregnancy.
   ➢ Maternity Benefit: Maximum period for which any woman shall be entitled to maternity benefit shall be 26 weeks of which not more than 8 weeks shall precede the date of her expected delivery.
   Women having more than two children, adopting mother and commissioning mother will get 12-week leave.
   ➢ Creche Facility: Mandatory for organizations having 50 or more employees.
   ➢ Every woman shall be entitled to, and her employer shall be liable for, the payment of maternity benefit at the rate of the average daily wage for the period of her actual absence. (The average daily wage means the average of the woman’s wages payable to her for the days on which she has worked during the period of three calendar months immediately preceding the date from which she absents herself on account of maternity.)
   ➢ If a woman entitled to maternity benefit or any other amount under this Act, dies before receiving such maternity benefit or amount, the employer shall pay such benefit or amount to the person nominated by the woman and in case there is no such nominee, to her legal representative.
   ➢ Medical bonus: Rs. 1000/-, if no pre-natal confinement and post-natal care is provided by the employer free of charge. (The Central Government may from time to time, by notification in the Official Gazette, increase the amount of medical bonus subject to the maximum of Rs. 20,000/-).
   ➢ Nursing breaks: Every woman delivered of a child who returns to duty after such delivery shall be allowed in the course of her daily work two breaks of the prescribed duration for nursing the child until the child attains the age of 15 months.
   ➢ Crèche Facility:
   The Ministry of Women and Child Development issued the “National Minimum Guidelines for Setting up and Running Crèches under Maternity Benefit Act, 2017 (the “Crèche Guidelines”).
   ➢ Features of the Crèche Guidelines:
   The crèche facility is for children of age groups of 6 months to 6 years of all employees including temporary, daily wage, consultant and contractual personnel.
   It should be located near/at the work place site or in the beneficiaries’ neighbourhood within 500 metres. The crèche centre should have a minimum space of 10 -12 sq. ft. per child to ensure that children can play, rest and learn. There is a recommended adult-child ratio with helpers, one crèche in charge and one guard to be employed in a crèche unit of up to 30 children.
   Child Labour (Prohibition and Regulation) Amendment Act, 1986
   ➢ Child – A person who has not completed his 14 years of age.
   ➢ Adolescent – A person who has completed his 14 years of age but has not completed his 18th year [Child Labour (Prohibition and Regulation) Amendment Act, 2016].
   ➢ No child shall be employed/permitted to work in any establishment, occupation or process.
   ➢ Under the Act, a Technical Advisory Committee is constituted to advice for inclusion of further occupations & processes.
   ➢ According to the new amendment, child is allowed to work at certain places mentioned below. (a) helps his family or family enterprise, which is other than any hazardous occupations or processes, after his school hours or during vacations; (b) works as an artist in an audio-visual entertainment industry, including advertisement, films, television serials or any such other entertainment or sports activities except the circus, subject to such conditions and safety measures, as may be prescribed. (Provided that no such work under this clause shall affect the school education of the child.)
   ➢ The Child Labour (Prohibition and Regulation) Amendment Act, 2016permit employment of adolescent labour except in hazardous processes or occupation.
   (For this purposes, “hazardous process” has the meaning assigned to it in Factories Act, 1948.)
   Employees State Insurance Act 1948 (ESI Act 1948):
   Social security provisions made in the ESI Act 1948 protect the employees against financial distress arising out of events of disablement, sickness, or death due to employment injury. Employees State Insurance provides cash compensation for the above cases.
   Employees’ State Insurance Corporation (ESIC) administers Employees State Insurance Act 1948.
   Employees’ State Insurance Corporation (ESIC) is a statutory corporate body that is established under the
   employee’s state insurance act in India.
   Benefits of the Employees State Insurance Act 1948 are as follows:
   Medical Benefit- medical care will be given to the person and his family members. There will be no ceiling on the expenditure.
   Maternity Benefit- for pregnancy is payable for 26 weeks as well under the ESI Act 1948, which can be extended up to one month on medical advice.
   Sickness Benefit- it will be given in the form of cash compensation at the rate of 70 percent of wages.
   Dependants Benefit- this is paid in the form of monthly payments to the dependants in cases where the death occurred due to occupational hazards or employment injury.
   Disablement Benefit- Temporary disablement benefit (TDB) at the rate of 90% of wage is payable so long as the disability continues.
   Permanent disablement benefit (PDB) is paid at the rate of 90% of wage in the form of monthly payments. It depends on the extent of the loss.
   Other Benefits of Employees State Insurance Act 1948
   Funeral Expenses, Physical Rehabilitation, Old Age Medical Care, Confinement Expenses, Vocational Rehabilitation
   Coverage of Employees State Insurance Act 1948:
   The Employees State Insurance applies to the factories and other establishments institutions where 10 or more persons are employed. However some states, the limit is 20.
   Under section 1(5) of the Employees State Insurance Act 1948, the ESI scheme has been extended to hotels, shops, cinemas, and restaurants, including road-motor transport, preview theatres and newspaper establishments where employees are 10 or more.
   Again under section 1(5) of the Employees State Insurance Act 1948, the ESI scheme has been extended to educational institutions and private medical employing more than 10 or more persons.
   The ESI scheme is not notified in 526 districts in 35 UT and states, which includes 346 complete districts, 95 district headquarters and 85 districts.
   Payment of Gratuity Act 1972:
   The Payment of Gratuity Act, 1972 is an act to provide gratuity to the employees working in factories, oil fields, plantations, ports, etc. It extends to the whole of India. (In the case of plantations and ports, it shall not extend to the state of Jammu and Kashmir). It came into effect from 16th September 1972.
   Highlights of Payment of Gratuity Act, 1972
   1) The Payment of Gratuity Act, 1972 shall follow to the subsequent: Factory, mine, oilfield, plantation, port and Railway Company.
   Every save or established order or some other established order notified through the primary authorities wherein ten or extra people are hired, or had been hired, on any day of the previous twelve months.
   2) An worker (now no longer hired in a seasonal established order) is stated to be in non-stop carrier beneath the organisation for a duration of twelve months if the worker has labored for: 190 days beneath the floor in a mine or in an established order which goes for much less than six days a week. 240 days, in some other case.
   3) An worker (now no longer hired in a seasonal established order) is stated to be in non-stop carrier beneath the organisation for a duration of six months if the worker has labored for: 95 days, beneath the floor in a mine or in an established order which goes for much less than six days a week. One hundred and twenty days, in some other case.
   4) To calculate the quantity of days on which a worker has without a doubt labored beneath an organisation, the subsequent days also are considered:
   5) An worker (hired in a seasonal status quo) is stated to be in non-stop provider beneath the corporation for a length of twelve months or six months if he has in reality labored for now no longer much less than seventy-5 percentage of the variety of days on which the status quo changed into in operation for the duration of such length.
   7) Under the Payment of Gratuity Act, 1972, gratuity will be payable to an worker at the termination of his employment on the subsequent grounds after he has rendered non-stop provider for now no longer much less than 5 years- Superannuation Retirement or resignation, Death or disablement because of coincidence or disease.
   8) If the termination of the employment is because of loss of life or disablement, 5 years of non-stop provider shall now no longer be necessary. In the case of loss of life of the worker, gratuity payable to him will be paid to his nominee. If no nomination has been made, it will be payable to his heirs.If the nominee or inheritor is a minor, the percentage will be deposited withinside the financial institution or economic group via way of means of the controlling authority.
   9) The corporation shall pay gratuity to a worker on the price of Fifteen days wages for each finished year of provider. Average of the entire wages obtained for a length of 3 months, with inside the case of piece rated employees (Overtime wages aren’t considered).
   Seven days wages for every season, within side the case of seasonal employees.10) Section 4A of the act is concerning the availability of obligatory coverage to the employees.
   If a corporation fails to make any coverage top class fee or fails to make a contribution to an accepted gratuity fund, he will be at risk of pay the gratuity amount (which include hobby for not on time payments) to the controlling authority.
   If any character contravenes the above provisions, he will be punishable with a most excellent of 10000 rupees and an excellent of 1 thousand rupees for every day, within side the case of a persevering with offense.
   10) Section 4A of the act is regarding the provision of compulsory insurance to the employees.
   If an employer fails to make any insurance premium payment or fails to contribute to an approved gratuity fund, he shall be liable to pay the gratuity amount (including interest for delayed payments) to the controlling authority.
   If any person contravenes the above provisions, he shall be punishable with a maximum fine of ten thousand rupees and a fine of one thousand rupees for each day, in the case of a continuing offence.
   12) Any person who makes false statements or false representations to avoid any payment to be paid by himself or any person under this act shall be punishable with a maximum imprisonment of six months or with a maximum fine of ten thousand rupees or with both.
   Any employer who contravenes any provisions of this act shall be punishable with imprisonment for a term which shall not be less than three months but may extend to one year, or with fine which shall not be less than ten thousand rupees but may extend to twenty thousand rupees, or with both.
   If the offence is related to the non-payment of any gratuity, then the employer shall be punishable with imprisonment for a term which shall not be less than six months but may extend to two years or lesser term of imprisonment or the imposition of a fine decided by the court.
   13) Payment of Gratuity: (1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years.
   The amount of gratuity payable to an employee shall not exceed ten lakh rupees.
   (Parliament passes bill in 2020 that lets govt double tax-free gratuity to Rs 20 lakh. The ceiling of tax- free gratuity stands enhanced to Rs 20 lakh from existing Rs 10 lakh)
   Workmen Compensation Act of 1923:
   Objective of Workmen Compensation Act
   The Workmen Compensation Act of 1923 was formed majorly to give compensations to workmen in the event of an accident.
   The Act has it that employers should have duties and obligations that include the welfare of workers after an injury resulting from employment in the same way they have reserved the right to make profits. The Act aims to see workmen have a sustainable life after an employment-related accident.
   Scope of the Act:
   The Act is applicable only to those workmen working in industries as specified in the Act. The Act affords protection to a workman from losses or injury caused by accident arising out of and in the course of employment subject to certain exceptions as laid down in the Act.
   Employers Liability for Compensation:
   To make the employer pay compensation, the death or injury suffered by the workman must be consequence of an accident arising out of and in the course of his employment is dependent upon the following four conditions:
   (1) The casual connection between the injury and the accident (i.e., personal injury is caused to workman while on work);
   (2) The injury and accident caused during the course of employment;
   (3) The probability tenable to reason that the work contributed to the causing of personal injury; and
   (4) The applicant proves that it was the work and the resulting strain which contributed to or aggravated the injury.
   Applicability of the Act:
   The Act is applicable throughout India. The Act does not apply to those areas which are covered by the Employees State Insurance Act, 1948.
   The salient features of the Act are as follows:
   I. Application: It applies to
   (a) All railway servants not permanently employed in any administrative, district or subdivisional office of a railway and not employed in any capacity as is specified in Schedule II to the Act;
   (b) Persons employed in any such capacity as is specified in Schedule II to the Act. Schedule II includes persons employed in factories, mines, plantations, mechanically propelled vehicles, construction works and certain other hazardous occupations. In all, there are 48 employments listed in the Schedule; and
   (c) Persons employed in employments added to Schedule II by the State Government in exercise of the powers conferred on them under section 2(3) of the Act. In this connection, a statement indicating the additions made so far by different State Governments is enclosed (Annex-I).
   Contingencies in which Compensation is Payable:
   Compensation is payable in case of temporary/permanent disablement or death as a result of an employment injury. The contracting of any disease listed in Schedule III to the Act is deemed to be an injury by accident.
   Occupational Diseases:
   If a workman employed in the employment specified in Schedule III of the Act contracts any occupational disease peculiar to that employment he becomes eligible for payment of compensation under the Act.
   Settlement of Claims under the Act:
   The claims for compensation broadly fall in three categories, namely (i) uncontested cases of disablement;
   (ii) disputed cases of disablement and (iii) fatal cases.
   Compensation
   (a) Where death results from the injury: an amount equal to fifty per cent of the monthly wages of the deceased *[employee] multiplied by the relevant factor; or an amount of *[one lakh and twenty thousand rupees], whichever is more;
   (b) Where permanent total disablement results from the injury: an amount equal to sixty per cent. Of the monthly wages of the injured *[employee] multiplied by the relevant factor; *[one lakh and twenty thousand rupees], whichever is more;
   (c) Where permanent partial disablement result from the injury: (i) in the case of an injury specified in Part II of Schedule I, such percentage of the compensation which would have been payable in the case of permanent total disablement as is specified therein as being the percentage of the loss of earning capacity caused by that injury; and (ii) in the case of an injury not specified in Schedule I, such percentage of the compensation payable in the case of permanent total disablement as is proportionate to the loss of earning capacity (as assessed by the qualified medical practitioner) permanently caused by the injury;
   (d) Where temporary disablement, whether total or partial, results from the injury: a half monthly payment of the sum equivalent to twenty-five per cent of monthly wages of the *[employee], to be paid in accordance with the provisions of sub-section (2).
   Plantations Labour Act, 1951:
   Applies to the following plantations, that it to say,-
   (a) To any land used or intended to be used for growing tea, coffee, rubber [cinchona or cardamom] which admeasures 2 hectares or more and in which 15 or more persons are employed or were employed on any day of the preceding twelve months.
   (b) To any land used or intended to be used for growing any other plant, which admeasures 2 hectares or more and in which 15 or more persons are employed or were employed on any day of the preceding twelve months, if after obtaining the approval of the Central Government, the State Government by notification in the Official Gazette, so directs.
   Definitions:
   (a) “Adolescent” means a person who has completed his fourteenth year but has not completed his eighteenth year,
   (b) “Adult” means a person who has completed his eighteenth year,
   (c) “Child” means a person who has not completed his fourteenth year,
   (d) “Day” means a period of twenty-four hours beginning at midnight;
   Registration of plantations: Appointment of registering officers -The State Government may, by notification in the Official Gazette,
   Registration of plantations. –
   (1) Every employer of a plantation, existing at the commencement of the Plantations Labour (Amendment) Act. 1981 shall, within a period of sixty days of such commencement, and every employer of any other plantation coming into existence after such commencement shall, within a period of sixty days of the coming into existence of such plantation, make an application to the registering officer .for the registration of such plantation.
   Appeals against orders of registering officer:
   Any person aggrieved by the order of a registering officer under sub-section (6) of Section 3-B may, within thirty days of the publication of such order in the newspaper under that sub-section, prefer an appeal to such authority as may be prescribed.
   Power to make rules: The State Government may, by notification in the Official Gazette, make rules to carry out the purposes of this Chapter.
   Provisions as to health: Drinking water, Separate Conservancy for male and female, Medical facilities.
   Welfare: Canteens, Recreational facilities, Educational facilities by State government.
   Crèches: In every plantation wherein fifty or more women workers (including women workers employed by any contractor) are employed or were employed on any day of the preceding twelve months, or where the number of children of women workers (including women workers employed by any contractor) is twenty or more, there shall be provided and maintained by the employer suitable rooms for the use of children of such women workers.
   Housing facilities: It shall be the duty of every employer to provide and maintain necessary housing accommodation-
   (a) For every worker (including his family) residing in the plantation;
   (b) For every worker (including his family) residing outside the plantation, who has put in six months of continuous service in such plantation and who has expressed a desire in writing to reside in the plantation.
   Appointment of Commissioners: By The State Government.
   Welfare officers: In every plantation wherein three hundred or more workers are ordinarily employed the employer shall employ such number of welfare officers as may be prescribed.
   Weekly hours: Save as otherwise expressly provided in this Act, no adult worker shall be required or allowed to work on any plantation in excess of [forty-eight hours] a week and no adolescent or child for more than [twenty-seven hours] a week.
   Night work for women and children- Except with the permission of the State Government, no woman or child worker shall, be employed in any plantation otherwise than between the hours of 6 a.m. and 7 p.m.
   PYQs on INDUSTRIAL RELATIONS AND LABOUR LAWS
   Q.1. Match List I with List II and select the correct answer using the code given below the lists: (EPFO EO/AO 2020)
   List I (Term) List 11 (Explanation)
   A. Closure 1. Permanent closing down of a place of employment
   B. Workmen 2. Any person employed in any industry to do skilled, unskilled or manual
   work
   C. Strike 3. Temporary closing down of workplace by the management
   D. Lockout 4. Cessation of work by employees
   Code
   (a) Any industry the control of which by the Union has been declared by any Central Act to be expedient in the public interest
   (b) Any industry the control of which by the State has been declared by any State Act to be expedient in the public interest
   (c) Any industry the control of which by the Municipal bodies has been declared by any Municipal Rules to be expedient in the public interest
   (d) Any industry the control of which by the State has been declared by any Central Act to be expedient in the public interest.
3. What is the minimum number of members required for registration of a Trade Union? (EPFO
   A B C
   D
   EO/AO 2020)
   (a) 1 2 4 3
   (b) 3 4 2 1
   (a) 2 members
   (b) 3 members
   (c) 1 4 2 3
   (d) 3 2 4 1
   (c) 7 members
   (d) 10 member
4. Who is an ‘Adolescent’ as per the Factories Act, 1948? (EPFO EO/AO 2020)
   (a) Who has completed 15 years of age but is less than 18 years
   (b) Who is less than 18 years
   (c) Who has completed 14 years of age but is less than 18 years
   (d) Who has completed 16 years of age but is less than 18 years
5. What is a controlled industry? (EPFO EO/AO
6. Which of the following disputes is/are considered as trade dispute(s) under the provision of the Trade Union Act, 1926? (EPFO EO/AO 2020)
   Any dispute of any person connected with
7. Employment
8. Non-Employment
9. Conditions of Labour
   Select the correct answer using the code given below :
   (a) 1 only
   (b) 2 and 3 only
   (c) 1, 2 and 3
   (d) 1 and 3 only
10. What is the maximum amount of gratuity payable to the employees under the Payment of Gratuity Act, 1972? (EPFO EO/AO 2020)
    a. 5, 00,000 rs
    b. 10, 00,000 rs
    c. 15, 00,000 rs
    d. 20, 00,000 rs
11. What is the maximum number of hours in a week that an adult worker is allowed to work for? (EPFO EO/AO 2020)
    a. 35 hours
    b. 40 hours
    c. 45 hours
    d. 48 hour
12. What is the maximum period in which the appropriate government shall review and revise the minimum rates of wages under the Minimum Wages Act, 1948? (EPFO EO/AO 2020)
    a. 2 years
    b. 3 years
    c. 4 years
    d. 5 years
13. Under which Schedule of the Companies Act, 2013, the format of financial statements are prescribed (EPFO EO/AO 2016)
    (a) Schedule I
    (b) Schedule II
    (c) Schedule III
    (d) Schedule IV
14. In the absence of any provision in the partnership agreement, profit and loss are shared by the partner (EPFO EO/AO 2016)
    (a) In the ratio of the capital of partners
    (b) Equally
    (c) In the ratio of loan given by them to the partnership firm.
    (d) In the ratio of the initial capital introduced by the partners
15. Works Committee, Safety Committee and Canteen Management Committee are the examples of (EPFO EO/AO 2016)
    a. worker’s participation in management
    b. worker’s education schemes
    c. worker’s cooperatives
    d. worker’s suggestion schemes
16. Which one of the following is not part of the aims and purposes of the ILO as per Philadelphia Declaration? (EPFO EO/AO 2016)
    (a) Labour is not a commodity.
    (b) Freedom of expression and of association are essential to sustained progress.
    (c) Poverty anywhere constitutes danger to prosperity everywhere.
    (d) The war against want requires to be carried on with unrelenting vigour within each nation and is solely the responsibility of the government.
17. Which one of the following is an exception from the five functional types of unionism identified by Robert Hoxie? (EPFO EO/AO 2016)
    (a) Business Unionism
    (b) Predatory Unionism
    (c) Revolutionary Unionism
    (d) Evolutionary Unionism
18. Which one of the following is the process in which representatives of workmen and employer involved in an industrial dispute are brought together before a third person or group of persons who facilitates/facilitate through mediation to reach a mutually satisfactory agreement? (EPFO EO/AO 2016)
    (a) Arbitration
    (b) Adjudication
    (c) Conciliation
    (d) Collective negotiation
19. Questions relating to the application or interpretation of a standing order certified under the Industrial Employment (standing Order)(Standing Orders) Act, 1946 may be referred to (EPFO EO/AO 2016)
    (a) Industrial Tribunal
    (b) Labour Commissioner
    (c) Labour Court
    (d) Industrial Employment Court
20. A union whose membership may cover workers employed in many industries, employment and crafts is known as (EPFO EO/AO 2016)
    (a) Industrial union
    (b) General union
    (c) Craft union
    (d) Region-cum-industry level union
21. Which one of the following perspectives of industrial relations is based on the assumption that both the parties strive (and have opportunity) to exercise economic (Wages and benefits) as well as political (Control) power? (EPFO EO/AO 2016)
    (a) Pluralistic perspective
    (b) Unitary perspective
    (c) Radical perspective
    (d) Trusteeship perspective
22. The provision of workers’ participation in management of industries is provided under (EPFO EO/AO 2016)
    (a) Article 39A of the Constitution of India
    (b) Article 43A of the Constitution of India
    (c) Article 42 of the Constitution of India
    (d) Article 43B of the Constitution of India
23. Which one of the following is not a trade union security measures? (EPFO EO/AO 2016)
    (a) Closed shop system
    (b) Agency shop system
    (c) Open shop system
    (d) Union shop system
24. Which one of the following is statutory machinery functioning at the central level? (EPFO EO/AO 2016)
    (a) Central Implementation and Evaluation Committee
    (b) Central Board for Workers’ Education
    (c) Standing Labour Committee
    (d) Employee’s State Insurance Corporation
25. Which one of the following explains the ‘citizen concept’ of labour? (EPFO EO/AO 2016)
    (a) Labour is largely regarded by the employers as operating organizations in industry.
    (b) Labour is affected by the law of demand and supply.
    (c) Labour has a right to be consulted in regard to the terms and conditions under which they are supposed to work.
    (d) Labour is a cog in the machine.
26. Who among the following can be appointed as the Chairman of the Central Advisory Board constituted by the Central government under the minimum wage act 1948? (EPFO EO/AO 2016)
    (a) One of the independent members of the Board
    (b) One of the employers’ representatives of the Board
    (c) One of the employees’ representatives of the Board
    d. A functionaries of the central government nominated by the government.
27. Which one of the following comes under the ‘State List’ under the seventh schedule of the constitution of India? (EPFO EO/AO 2016)
    (a) Relief of the disabled and unemployable
    (b) Regulation of labour and safety in mines
    (c) Regulation and control of manufacture, supply and distribution of salt
    (d) Social security and social insurance
28. The assumption that “man is selfish and self centred and always tries to achieve his own ends even at the cost of others” explains which theory of labour welfare? (EPFO EO/AO 2016)
    (a) Placating theory
    (b) Police theory
    (c) Religious theory
    (d) Philanthropic theory
29. Dr. Aykroyd’s formula is associated with determination of (EPFO EO/AO 2016)
    (a) Fair wage
    (b) Minimum wage
    (c) Living wage
    (d) Real wage
30. Everyone, as a member of society, has the right to social security and is entitled to realization, through national effort and international co-operation and in accordance with the organization and resources of each State, of the economic, social and cultural rights indispensable for his dignity and the free development of his personality. This statement which is emphasizing the importance of social security has been expressed in which of the following? (EPFO EO/AO 2016)
    (a) Universal Declaration of Human Rights
    (b) Philadelphia Declaration of the ILO
    (c) Report of the First National Commission on Labour
    (d) Directive Principles of State Policy of the Indian Constitution
31. For the first time in India, medical benefits as a non cash benefits was provided under (EPFO EO/AO 2016)
    (a) The Employees’ State Insurance Act, 1948
    (b) The Factories Act, 1948
    (c) The maternity benefit Act 1961.
    (d) The Mines Act, 1952
32. Consider an industry with the following features: (EPFO APFC 2015)
    Budgeted monthly fixed cost = Rs.2, 20,000
    Normal monthly output= 12000 per standard labour hour
    Standard variable overhead rate = Rs.25 per labour hour
    What would be the total factory overhead rate?
    (a) 40.33 per labour hour
    (b) 41.67 per labour hour
    (c) 42.67 per labour hour
    (d) 43.33 per labour hour
33. The famous ‘Giri’ approach in Industrial Relations in India espouses the cause of (EPFO APFC 2015)
    (a) Adjudication
    (b) Compulsory Collective Bargaining
    (c) Conciliation
    (d) Arbitration
34. The Maternity Benefit Act, 1961 (M.B. Act) provides for how many weeks’ wages during the maternity period? (EPFO APFC 2015)
    (a) 11 weeks
    (b) 12 weeks
    (c) 13 weeks
    (d) 14 weeks
35. Employees State Insurance Act, 1948 covers factors like (EPFO APFC 2015)
36. Factories and establishments with 10 or more employees.
37. Provision of comprehensive medical care to employees and their families.
38. Provision of cash benefits during sickness and maternity.
39. Monthly payments in case of death or disablement.
    Which of the above statements are correct?
    (a) 1, 2 and 3 only
    (b) 1, 2 and 4 only
    (c) 3 and 4 only
    (d) 1, 2, 3 and 4
40. Which of the following statements is true about Industrial Policy since 1991? (APFC 2012)
    (a) Only 5 industries related to security, strategic and environmental concerns require industrial License
    (b) An investor need not file an industrial entrepreneur Memorandum.
    (c) There is no reservation of products for production in small scale sectors.
    d. The number of industries reserved for public sector has been enhanced.
41. In which of the following Acts, housing facility is a statutory provision? (APFC 2012)
    (a) The Plantation labour act 1951.
    b. The Factories Act, 1948
    c. The Mines Act, 1952
    d. None of the above
42. Statement (I): Industrial relation is currently more influenced by the external market forces than the power play between employers and employees. (APFC 2012)
    Statement (II): The forces of globalization have made competition so imperative so imperative that union and their tactics like stopping productivity
    no more hold good.
    Codes:
    (a) Both Statements (I) and Statement (II) are individually true, and Statement (II) is the correct explanation of statement 1.
    (b) Both Statement (I) and Statement (II) are individually true but Statement (II) is NOT the correct explanation of statement 1.
    (c) Statement (I) is true but Statement (II) is false.
    (d) Statement (I) is false, but Statement (II) is true.
43. The main objective of the minimum wage act 1948 is to safeguard the interest the workers engaged in: (APFC 2012)
    (a) Unorganized sector
    (b) Organized sector
    (c) Industrial sector
    (d) Agricultural sector
44. Match List-I with List-II and select the correct answer using the code given below the lists: List-1 (Contribution) (APFC 2012)
    A. Industrial Welfare Movement
    B. Human Relation thought
    C. Concept of Third Force
    D. Ahmedabad Experiment List-II (Contributor)
45. Charles A Myer
46. A.K. Rice
47. Robert Owen
48. Elton Mayo Code:
    A B C D (a) 2 1 4 3
    (b) 3 1 4 2
    (c) 2 4 1 3
    (d) 3 4 1 2
49. Match List-I with List-II and select the correct answer using the code given below the lists: List-I (Board/Committee) (APFC 2012)
    A. First National commission on labour 1969.
    B. Wage Board for Working Journalists, 2009
    C. Second National commission on labour 2002.
    D. Index Review Commission 2009.
50. G.K. Chadha
51. Ravindra Verma
52. P.B. Gajendragadkar
53. G.R. Majithia Code:
    A B C D
    (a) 3 4 2 1
    (b) 1 4 2 3
    (c) 3 2 4 1
    (d) 1 2 4 3
54. In which part of the Indian Constitution, workers participation in management has been imported? (APFC 2012)
    (a) The Preamble
    (b) The Fundamental Rights
    (c) The Directive Principles of State Policy
    (d) None of the above
55. Which of the following is NOT covered by the Employees Provident Fund and Miscellaneous Provisions Act, 1952? (APFC 2012)
    a) Pension
    b) Provident Fund
    c) Deposit Linked Insurance
    d) Injury Compensation.
56. Which of the following statements about Workmen’s Compensation act 1923 is true? (APFC 2012)
    a) It is not social security legislation.
    b) Its name has been changed to the Employee’s Compensation Act in 2009.
    c. It provides maximum compensation in the event of death.
    d) It does not provide compensation for occupational diseases.
57. Which of the following legislation is comprehensive social security legislation? (APFC 2012)
    a) The Maternity Benefit Act
    b) The Employees State Insurance Act
    c) The Employees Compensation Act
    d) The Employees Provident Funds and Miscellaneous Provisions Act.
58. What is the maximum limit of gratuity payable under the Payment of Gratuity Act, 1972? (APFC 2012)
    a) 3 Lakhs rupees
    b) 7-5 Lakhs rupees
    c) 10 Lakhs rupees
    d) 10.5 Lakhs rupees
59. Which of the following is NOT one of the features of the Special Economic Zones (SEZ) being set up for promoting exports? (APFC 2012)
    (1) Foreign workers will be allowed free entry without Visa restrictions.
    (b) The SEZ area will be treated as foreign territory for trade operations, duties and tariff.
    (c) There will be no routine examination by customs authorities of import/export cargo.
    (d) No license is required for import into the zone.
    Social insurance is a form of social welfare that provides insurance against economic risks. The insurance may be provided publicly or through the subsidizing of private insurance. In contrast to other forms of social assistance, individuals’ claims are partly dependent on their contributions, which can be considered insurance premiums to create a common fund out of which the individuals are then paid benefits in the future.
    Types of social insurance include:

• Public health insurance
• Social Security
• Public Unemployment Insurance
• Public auto insurance
• Universal parental leave
  Features:
  The contributions of individuals is nominal and never goes beyond what they can afford the benefits, eligibility requirements and other aspects of the program are defined by statute; explicit provision is made to account for the income and expenses (often through a trust fund); it is funded by taxes or premiums paid by (or on behalf of) participants (but additional sources of funding may be provided as well); and the program serves a defined population, and participation is either compulsory or so heavily subsidized that most eligible individuals choose to participate.
  Similarities to private insurance: Typical similarities between social insurance programs and private insurance programs include:
• Wide pooling of risks;
• Specific definitions of the benefits provided;
• Specific definitions of eligibility rules and the amount of coverage provided;
• Specific premium, contribution or tax rates required to meet the expected costs of the system.
  Differences from private insurance:
  Typical differences between private insurance programs and social insurance programs include:
• Private insurance programs are generally designed with greater emphasis on equity between individual purchasers of coverage, and social insurance programs generally place a greater emphasis on the social adequacy of benefits for all participants.
• Participation in private insurance programs is often voluntary; if the purchase of insurance is mandatory, individuals usually have a choice of insurers. Participation in social insurance programs is generally mandatory; if participation is voluntary, the cost is heavily subsidised enough to ensure essentially universal participation.
• The right to benefits in a private insurance program is contractual, based on an insurance contract. The insurer generally does not have a unilateral right to change or terminate coverage before the end of the contract period (except in such cases as nonpayment of premiums). Social insurance programs are
  Social insurance:
  SOCIAL SECURITY IN INDIA
  not generally based on a contract but on a statute, and the right to benefits is thus statutory rather than contractual. The provisions of the program can be changed if the statute is modified.
• Individually purchased private insurance generally must be fully funded. Full funding is a desirable goal for private pension plans as well, but is often not achieved. Social insurance programs are often not fully funded, and some argue that full funding is not economically desirable.
  Social security in India:
  Social security in India includes a variety of statutory insurances and social grant schemes bundled into a formerly complex and fragmented system run by the Indian government at the federal and the state level and is divided into three categories: non-contributory and tax-payer-funded, employer-funded and lastly, joint- funded.

1. Aadhar:
   The government of India uses this unique identification number to distribute social security and welfare measures to its citizens and legal residents.
2. Budget:
   In budget expenditure on social protection (direct cash transfers, financial inclusion, social benefits, health and other insurances, subsidies, free school meals, rural employment guarantee and housing grants for the low income) take place.
3. Federal government social security bodies and programs:
   National Pension System:
   National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme designed to enable the subscribers to make optimum decisions regarding their future through systematic savings during their working life. NPS seeks to inculcate the habit of saving for retirement amongst the citizens. It is an attempt towards finding a sustainable solution to the problem of providing adequate retirement income to every citizen of India.
   Under NPS, individual savings are pooled in to a pension fund which are invested by PFRDA regulated professional fund managers as per the approved investment guidelines in to the diversified portfolios comprising of Government Bonds, Bills, Corporate Debentures and Shares. These contributions would grow and accumulate over the years, depending on the returns earned on the investment made.
   Employees’ Provident Fund Organisation:
   Employees’ State Insurance: Employees’ State Insurance (abbreviated as ESI) is a social security and health insurance fund for Indian workers. The fund is managed by the Employees’ State Insurance Corporation (ESIC) according to rules and regulations stipulated in the ESI Act 1948. ESIC is a Statutory and an Autonomous Body under the Ministry of Labour and Employment.
   National Health Protection Scheme: While people working in the organised sector either get health insurance through the Ayushman Bharat Yojana or the Employees’ State Insurance. Ayushman Bharat Yojana also provides coverage to the poor and people working in the unorganised sector.
   Maternity Benefits: According to The Code on Social Security, 2020, all women employees are entitled to 26 weeks of fully paid maternity leaves.
   Accident Assurance Scheme: Pradhan Mantri Suraksha Bima Yojana is available to people (Indian Resident or NRI) between 18 and 70 years of age with bank accounts. It has an annual premium of ₹12.
   Social Assistance and Grants: These are rights-based social assistance programmes funded through the general taxation and have statutory backing.
   National Food Security Safety Net: National Food Security Act, 2013 Free School Meals: Midday Meal Scheme
   The Mid-day-Meal: It is a school meal programme of the Government of India designed to better the nutritional standing of school-age children nationwide and is governed by the statutory act National Food Security Act, 2013.
   Welfare measures in various states:
   Kanyashree is an initiative taken by the Government of West Bengal to improve the life and the status of the girls by helping economically backward families with cash so that families do not arrange the marriage of their girl child before eighteen years because of economic problem.
   Amma Unavagam is a food subsidization programme run by the Government of Tamil Nadu in India. Social Security Scheme thinkers:
   Beveridge Report:
   The Beveridge Report, officially entitled Social Insurance and Allied Services (Cmd. 6404), is a government report, published in November 1942, influential in the founding of the welfare state in the United Kingdom. It was drafted by the Liberal economist William Beveridge, with research and publicity by his wife, mathematician Janet Beveridge who proposed widespread reforms to the system of social welfare to address what he identified as “five giants on the road of reconstruction”: “Want, Disease, Ignorance, Squalor and Idleness”. Published in the midst of World War II, the report promised rewards for everyone’s sacrifices. Overwhelmingly popular with the public, it formed the basis for the post-war reforms known as the welfare state, which include the expansion of National Insurance and the creation of the National Health Service.
   Recommendations: The Report offered three guiding principles to its recommendations:
   Proposals for the future should not be limited by “sectional interests”. A “revolutionary moment in the world’s history is a time for revolutions, not for patching”.
   Social insurance is only one part of a “comprehensive policy of social progress”. The five giants on the road to reconstruction were Want, Disease, Ignorance, Squalor and Idleness.
   Policies of social security “must be achieved by co-operation between the State and the individual”, with the state securing the service and contributions. The state “should not stifle incentive, opportunity, responsibility; in establishing a national minimum, it should leave room and encouragement for voluntary action by each individual to provide more than that minimum for himself and his family”.
   Beveridge was opposed to “means-tested” benefits. His proposal was for a flat rate universal contribution in exchange for a flat rate universal benefit. Means-testing was intended to play a tiny part because it created high marginal tax rates for the poor (the “poverty trap”).
   Provident Fund –Types, Advantages and Disadvantages:
   What Is the Provident Fund Meaning?
   The provident fund is a compulsory retirement savings scheme in India. It was introduced in 1935 and is currently managed by the Employees’ Provident Fund Organisation (EPFO). The EPFO administers the Scheme on behalf of the Government of India.
   Types of Provident Funds:
   There are several types of provident funds, but the two most common are pension and provident fund. Pension funds are special savings accounts that help retired people and their families maintain a comfortable lifestyle in retirement. Provident funds are similar to pension funds, but they are specifically designed to provide an income for individuals when they reach retirement age.
   Some of the most popular provident funds types include the following:
   1) Employees’ Provident Fund (EPF)
   2) Public Provident Fund (PPF)
   3) Industrial Welfare Provident Fund (IW PF)
   4) Life Insurance Corporation (LIC) Provident Fund
   Features of Provident Fund:

• First, the Provident Fund is automatic. This means that you don’t need to do anything to participate, and your contributions are deposited directly into your account each month.
• Second, the Provident Fund is tax-free. This means that you don’t have to worry about paying taxes on your contributions, which can be a major advantage over other retirement savings options.
• Third, the returns on your contributions are guaranteed. This means that your earnings will always be at least as much as the amount you deposited, no matter how long it takes for the fund to reach its target balance.
• Finally, the Provident Fund is growing every day. This means that even if the stock market experiences dramatic changes over time, your retirement fund will continue to grow at a consistent rate.
  Advantages of The Provident Fund include:
• Retirement savings that are tax-effective
• Regular income during retirement years
• Minimum initial contribution
• Wide range of investment options
• Safest Investment Avenue
• Assured returns
• Tax benefits
  The Provident Fund Also Offers a Range of Other Benefits Such As:
• Accidental Insurance,
• Maternity Leave,
• And Education Subsidies.
  Disadvantages of having a provident fund include:
• Accumulated Corpus may not high
• Longer lock-in period
• Money is inadequate for risks occurring early in working life.
• Inflation erodes the real value of savings.
  Pradhan Mantri Krishi Sinchayee Yojana (PMKSY):
  PMKSY is a Centrally Sponsored Scheme (Core Scheme) launched in 1st July, 2015. Centre- States will be 75:25 per cent. In the case of the north-eastern region and hilly states, it will be 90:10. It is being implemented by the Ministry of Jal Shakti, namely, Accelerated Irrigation Benefit Programme (AIBP), and Har Khet Ko Pani (HKKP).
  Its objectives are:
• Achieve convergence of investments in irrigation at the field level.
• Enhance the physical access of water on the farm and expand cultivable area under assured irrigation (Har Khet Ko Pani).
• Enhance the adoption of precision – irrigation and other water saving technologies (More Crop Per Drop).
• Enhance recharge of aquifers and introduce sustainable water conservation practices.
• Explore the feasibility of reusing treated municipal waste water for peri-urban agriculture.
• Improve on – farm water use efficiency to reduce wastage and increase availability both in duration and extent.
• Ensure the integrated development of rainfed areas using the watershed approach towards soil and water conservation
  UDAN Scheme:
  Ude Desh Ka Aam Naagrik (UDAN) was launched as a Regional Connectivity Scheme (RCS) under the
  Ministry of Civil Aviation in 2016. Objectives:
• To develop the regional aviation market.
• To provide affordable, economically viable and profitable air travel on regional routes to the common man even in small towns.
  Features:
• The scheme envisages providing connectivity to un-served and underserved airports of the country through the revival of existing air-strips and airports. The scheme is operational for a period of 10 years.
• Under-served airports are those which do not have more than one flight a day, while unserved airports are those where there are no operations.
  Pradhan Mantri Kisan Samman Nidhi (PM-KISAN):
  PM-KISAN is a central sector scheme launched on February 24, 2019 under Ministry of Agriculture and Farmers Welfare that guarantees direct income support of Rs 6,000 for farmers.
  Eligibility – It will be given per year to all landholder farmer’s families in the country except,

1. All Institutional Land holders.
2. Farmer families in which one or more of its members belong to following categories,
   a) Former and present holders of constitutional post.
   b) Former and present – Ministers/ State Ministers, M.Ps (Lok sabha& Rajya Sabha), MLAs (SLA & SLC)
   c) Former and present Mayors of Municipal Corporations, Chairpersons of District Panchayats.
   d) All serving or retired officers and employees of Central/ State Government Ministries
   /Offices/Departments and its field units Central or State PSEs and Attached offices /Autonomous Institutions under Government as well as regular employees of the Local Bodies.
   e) All superannuated/retired pensioners whose monthly pension is Rs.10,000 / or more (Excluding Multi Tasking Staff / Class IV/Group D employees)
   f) All Persons who paid Income Tax in last assessment year.
   g) Professionals like Doctors, Engineers, Lawyers, Chartered Accountants, and Architects registered with Professional bodies and carrying out profession by undertaking practices.

• The amount will be given in three installments of Rs.2000 each.
• The amount will be transferred directly to the bank account of beneficiaries through Direct Benefit Transfer. DBT will ensure transparency in the entire process and will save time for the farmers.
• This is to help them meet farm input and other costs during the crop season.
• The programme would be made effective retrospectively from December 1, 2018.
• The changes in land records after February 1, 2019 shall not be considered for this scheme.
• State Government and UT Administration will identify the farmer families which are eligible for support as per scheme guidelines.
• Other Features – The cash transfer is not linked to the land size and hence it becomes an income supplement to landowning households.
• It has left the landless tenants out of its scope.
  PM Kisan Maan Dhan Yojana:
• It is a new central sector and pension scheme launched on September 12, 2019 under Ministry of Agriculture & Farmers’ Welfare, for only small and marginal farmers who own less than 2 hectares of land. (While PM-KISAN is for all farmers)
• Under this Scheme, a minimum fixed pension of Rs.3,000/- is provided to the eligible small and marginal farmers, on attaining the age of 60 years.
• It is a voluntary and contributory pension scheme, with entry age of 18 to 40 years.
• The beneficiary is required to make a monthly contribution of between Rs.55/- to Rs.200/- to the Pension Fund, depending on the age of entry into the Scheme.
• Central Government will contribute equally to the beneficiary‘s contribution.
• The pension fund is managed by the Life Insurance Corporation of India (LIC).
• Farmers can also allow contribution to be made directly from the benefits drawn from the PM-KISAN scheme.
• The beneficiary may exit from the scheme voluntarily or on failure of contribution or on demise.
• The beneficiaries may opt voluntarily to exit the Scheme after a minimum period of 5 years of regular contributions
• On exit, only their contribution shall be returned by LIC with an interest equivalent to

1. Prevailing saving bank rates (within 10 years) 2. Either accumulated interest actually earned by the Pension Fund or the interest at the savings bank interest rate, whichever is higher.

• The spouse is also eligible to get a separate pension of Rs.3000/- upon making separate contributions to the Fund. On the death of the subscriber during the period of contribution, the spouse shall have the option of continuing the Scheme by paying regular contribution. If the spouse does not wish to continue, the total contribution made by the farmer along with interest will be paid to spouse. If there is no spouse, then total contribution along with interest will be paid to the nominee.
• If the farmer died during the receipt of pension, the spouse or heir shall be entitled to receive 50% of the pension as family pension, provided he/she is not already an SMF beneficiary of the Scheme.
• After the death of both the farmer and the spouse, the accumulated corpus shall be credited back to the Pension Fund.
• Exception – The beneficiary should not be covered under any other statuary social security schemes and it includes exceptions under PM-KISAN scheme.
  Pradhan Mantri Fasal Bima Yojana:
• It is the flagship scheme of the government for agricultural insurance in India launched in 18th February 2016 under Ministry of Agriculture in line with the One Nation-One Scheme theme.
• It is compulsory for farmers availing crop loans for notified crops in notified areas and voluntary for non loanee farmers.
• Premium rate – There is no capping in premium and one premium rate on pan-India basis. It is 1.5%, 2% and 5% for all Rabi, Kharif and annual horticultural/commercial crops, respectively.
• There is no upper limit on the government subsidy i.e the difference between premium and insurance charges paid by the farmer.
• Losses covered – Non-Preventable risk such as Natural Fire, Storm, Hailstorm, Cyclone and Inundation has also been included as a localized calamity. Post-Harvest losses also covered.
• A cluster approach will be adopted under which a group of districts with variable risk profile will be allotted to an insurance company
• Use of Remote Sensing Technology, Smart phones & Drones for quick estimation of crop losses to ensure early settlement of claims.
  National Food Security Mission:
• It is a centrally sponsored scheme.
• It is launched to enhance the production of Rice, Wheat, Pulses, Coarse Cereals and commercial crops
  (Cotton, jute and Sugarcane).
• Targets – Production of rice, wheat and pulses would be increased by 10, 8, 4 million tonnes respectively and Coarse cereals by 3 million tonnes.
• Funding – 50:50 by Centre and State for food crops and 100% centre funding for cash crops.
• It would be implemented through cluster demonstration, distribution of high yield seeds with farm mechanization, &Integrated pest management.
  Stand up India scheme:
  It was launched in 5 April 2016 under Ministry of Finance to promote entrepreneurship at the grass-root level focusing on economic empowerment and job creation.
  Aim: To leverage the institutional credit structure to reach out to the underserved sector of people such as
  SCs, STs and Women Entrepreneurs.
  Facilitates Bank Loans: The objective of this scheme is to facilitate bank loans between Rs.10 lakh and Rs.1 crore to at least one SC or ST borrower and at least one woman borrower per bank branch of Scheduled Commercial Banks for setting up a Greenfield enterprise.
  This enterprise may be in manufacturing, services or the trading sector. Eligibility:
  SC/ST and/or women entrepreneurs of above 18 years of age.
  Loans under the scheme are available for only Greenfield projects. Borrower should not be in default to any bank or financial institution.
  In case of non-individual enterprises, at least 51% of the shareholding and controlling stake should be held by either an SC/ST or Woman entrepreneur.
  New Changes:
  The margin money requirement for loans under the Scheme has been reduced from ‘upto 25%’ to ‘upto 15%’ and activities allied to agriculture have been included in the Scheme.
  Start Up India Scheme:
  It aims at fostering entrepreneurship and promoting innovation by creating an ecosystem that is conducive for growth of Start-ups launched on 16th January, 2016 under Ministry of Commerce and Industry.
• According to the scheme, an entity headquartered in India shall be considered as a Startup up to 10 years from the date of its incorporation/ registration.
• The annual turnover should also not exceed INR 100 crore in any preceding financial year and Entity should not have been formed by splitting up or reconstructing a business already in existence.
• It provides

1. Simple Compliance Regime for startups based on Self-certification.
2. Single window clearance based on mobile App.
3. Legal support and fast-track patent examination by reducing 80% of the patent cost.
4. Faster exit for startups through modified new bankruptcy code ensuring 90 days exit window.
5. Credit Guarantee Fund for startups through Small Industries Development Bank of India (SIDBI).
6. Providing funding support through a Fund of Funds with a corpus of Rupees 10,000 crore
7. Tax exemption on capital gains invested in Fund of Funds. Tax exemption to startups for 3 years. Exemption from labour inspection for 3 years.

• Rural India’s version of Startup India was named the Deen Dayal Upadhyay Swaniyojan Yojana, which is developed by Rural development ministry backed by MUDRA loans.
  Sampoorna Bima Gram Yojana:
  The Union Minister for Communications, Manoj Sinha has launched Sampoorna Bima Gram (SBG) Yojana on 13 October 2017 and expanded coverage of Postal Life Insurance (PLI) in a bid to provide affordable life insurance services to people particularly those living in rural areas.
• Under the scheme, at least one village (having a minimum of 100 households) will be identified in each districts and provide with a minimum of one Rural Postal Life Insurance policy for each households.
• Coverage of all households in the identified village is the primary objective of this scheme.
• All villages under the Saansad Adarsh Gram Yojana will be brought under its ambit.
  National Food Security Act, 2013:
  It aims to provide subsidized food grains to approximately 2/3rdof India’s population i.e 75% in rural areas and 50% in urban areas will be covered under TPDS, with uniform entitlement of 5 kg/person/month.
• It converts the various existing food security schemes into legal entitlements (i.e.) from welfare based approach to rights based approach.
• It includes the Midday Meal Scheme, ICDS scheme, the PDS and also recognizes maternity entitlements.
• Under NFSA, each beneficiaries is entitled to 5 kilograms of food grains per month at Rs. 3, Rs. 2 , Rs. 1 per kg for rice, wheat and coarse grains respectively. It has been decided by the Government to continue the above mentioned subsidized prices upto June, 2019. Thereafter prices will be as fixed by the Central Government from time to time, not exceeding MSP. However, the beneficiaries under Antyodaya Anna Yojana will keep receiving the 35 kg/household/month at same rates.
• NFSA also guarantees age appropriate meal, free of charge through local anganwadi for children up to 6 months and one free meal for children in age group 6-14 years in schools.
• Every pregnant and lactating mother is entitled to a free meal at the local anganwadi as well as maternity benefits of Rs.6,000 in installments.
• These maternal benefits are not extended to Government employees, since other similar benefits are provided.
• The identification of eligible households is left to state governments.
• It also has provisions for food security allowance to entitled beneficiaries in case of non-supply of entitled food grains/meals.
  Antyodaya Anna Yojana:
  It is launched by the Ministry of Consumer Affairs, Food and Public Distribution on 25 December 2000 to provide food subsidies for poor people.
• The scheme aims to make Targeted Public Distribution System (TPDS) more focused and targeted towards the poorest section of population.
• Beneficiary families under the scheme are distributed 35 kg of rice and wheat at the rates of Rs. 3 per kg and Rs. 2 per kg respectively. Coarse grains, on the other hand, are distributed at the rate of Rs. 1 per kg.
• Other families that are not part of AAY but are covered under NFSA receive grains at the rate of Rs. 5 per kg.
• Under the scheme, subsidies are fully borne by the central government and States/UT bears the distribution cost.
• The scheme has been expanded to cover 2.50 Cr households and scale of issue has been increased to 35 kg/family/month.
  Atal Bhujal Yojana:
• It is a Central Sector Scheme of Ministry of Jal Shakti aims to improve ground water management through community participation in identified priority areas in seven States.
• It will be implemented over a period of 5 years (2020-21 to 2024-25).
• The states are Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh.
• It will promote panchayat led ground water management and behavioural changes with primary focus on demand side management.
• It has two major components such as,

1. Institutional Strengthening and Capacity Building Component
2. Incentive Component for the States
   Swachh Bharat Mission:
   It was launched on 2nd October 2014 to accelerate the efforts to achieve universal sanitation coverage and to put the focus on sanitation

• It aims at achieving Open Defecation Free (ODF) nation and a Swachh Bharat (Clean India) by 2nd Oct, 2019, the 150th anniversary of Mahatma Gandhi.
• SBM is being implemented by the Ministry of Urban Development in urban areas & by the Ministry of Jal Shakti in rural areas.
• Objectives – Elimination of open defecation, Eradication of Manual Scavenging, Modern and Scientific Municipal Solid Waste Management, To effect behavioural change regarding healthy sanitation practices, Generate awareness about sanitation and its linkage with public health, Capacity Augmentation for ULB‘s and Creating an enabling environment for private sector participation.
• Components –

1. Household toilets, including conversion of insanitary latrines into pour-flush latrines;
2. Community toilets
3. Public toilets
4. Solid waste management
5. Public Awareness and IEC (Information, Education and Communication).

• Implementation – Behaviour change is the primary focus and fundamental tool for achievement of ODF outcomes.
• It also promotes gender sensitive information, behaviour change guidelines and various mass education activities.
• Funding – States will contribute a minimum of 25% funds towards all components to match 75% Central Share. This will be 10% in the case of North East and special category States.
  Digital India:
  It is a flagship programme of the Government of India launched on July 1, 2015 with a vision to transform India into a digitally empowered society and knowledge economy.
• The scheme is coordinated by the department of Electronics and IT and implemented by all government departments.
• The scheme is to be monitored by a Digital India committee comprised of several ministers.
• Digital India has three core components. These includes

1. The creation of digital infrastructure,
2. Delivering services digitally,
3. Digital literacy

• 9 Key points of Digital India Programme are

1. Universal Access to Phones
2. Broadband Highways
3. Public Internet Access Programme
4. e-Governance – Reforming government through Technology
5. e-Kranti – Electronic delivery of services
6. Information for All
7. Electronics Manufacturing – Target NET ZERO Imports
8. IT for Jobs
9. Early Harvest Programmes

• It is an umbrella programme which includes the hitherto National Optical Fiber Network (NOFN) to connect 2, 50,000gram Panchayats by providing internet connectivity to all citizens.
• Digital India includes development of an electronic development fund and envisages Net-Zero Electronics Import Target by 2020.
• Common Services Centers (CSC) scheme is one of the mission mode projects under the Digital India Programme, Ministry of Electronics and IT.
  Pradhan Mantri Jan Dhan Yojana:
• It is a flagship financial inclusion scheme under Ministry of Finance and launched on 28th August 2014 for 4 years and was later approved to continue beyond.
• The scheme facilitates the opening of bank accounts with zero balance for every household to ensure access to financial services in an affordable manner.
• The scheme ensures access to a range of financial services like availability of basic savings bank account, access to need based credit, remittances facility, insurance and pension.
• The 1st phase of the scheme focused on opening basic bank accounts and RuPay debit card with inbuilt accident insurance cover of Rs 1 lakh.
• The 2nd phase (2015-2018) planned to provide micro-insurance to the people and pension schemes to unorganized sector workers through Business Correspondents.
  The 3rd Phase (from 2018) focus on opening accounts from “every household to every adult”. Existing Over Draft (OD) limit of Rs 5,000 to be raised to Rs 10,000. There will not be any conditions attached for OD upto Rs 2,000.
• The free accident insurance cover for new RuPay card holders has been doubled to Rs 2 lakh.
• Also, the upper age limit for availing the overdraft facility has been hiked to 65 from the earlier 60 years.
  Aam Admi Bima Yojana:
• AABY is a Social Security Scheme launched on 2nd October 2007 and administered through LIC to provide Death and Disability cover for low-income families of India (unorganised sector workers) to persons between the age group of 18 yrs to 59 yrs.
• It is a group insurance scheme providing insurance cover for a sum of Rs 30,000/- on natural death, Rs. 75,000/- on death or total permanent disability due to accident, Rs. 37,500/- for partial permanent disability due to accident.
• The total annual premium under the scheme is Rs. 200/- per beneficiary, of which 50% is contributed from the Social Security Fund created by the Central Government and maintained by LIC. The balance is contributed by the State Government / Nodal Agency / Individuals.
  Pradhan Mantri Suraksha Bima Yojana (PMSBY):
• It is launched by Ministry of Finance on 9th May, 2015 which aimed at providing accidental insurance cover to the people belonging to the underprivileged sections of society.
  The annual premium for PMSBY has been hiked from Rs 12 to Rs 20 first time from the inception of the scheme.
• The coverage available will be Rs.2 lakh for accidental death or permanent total disability and Rs.1 lakh for permanent partial disability.
• The Scheme will be available to people in the age group 18 to 70 years with a savings bank account who give their consent to join and enable auto-debit on an annual renewal basis.
• It is offered by Public Sector General Insurance Companies or any other General Insurance Company who are willing to offer the product on similar terms.
  This premium is auto-debited in one instalment on or before 1st June of every year. Individuals can exit and re-join the scheme subjecting to conditions.
• It serves the goal of financial inclusion by achieving penetration of insurance down to the weaker sections of the society.
  In case of the death of the account holder, the benefits of the scheme can be availed by his/her nominee. As per the latest PIB release, about 41.50 per cent of enrolment under this scheme belong to women, and
  61.29 percent of claim beneficiaries are women.
  Pradhan Mantri Jeevan Jyoti Bima Yojana:
• It is launched by Ministry of Finance on 9th May, 2015 which offers coverage for death due to any reason.
  The annual premium rates of both schemes have been revised from Rs 330 to Rs 436 first time from the inception of the scheme.
  Eligibility: Available to people in the age group of 18 to 50 and having a bank account. People who join the scheme before completing 50 years can, however, continue to have the risk of life cover up to the age of 55 years subject to payment of premium.
  Terms of Risk Coverage: A person has to opt for the scheme every year. He can also prefer to give a long-term option of continuing, in which case his account will be auto-debited every year by the bank.
• A life cover of Rs. 2 lakhs is available for a one year period at a premium of Rs.330/- per annum per member and is renewable every year.
• It is administered through LIC and other Indian private Life Insurance companies.
• A person can join PMJJBY with one Insurance company with one bank account only.
• It provides coverage for death only, therefore the benefit will only go to the nominee.
  The Atal Pension Yojana (APY):
• It was launched on 9th May, 2015 to create a universal social security system for all Indians, especially the poor, the under-privileged and the workers in the unorganised sector. With this introduction, the enrolment under Swavalamban has been closed and the eligible subscribers were automatically migrated to the APY unless they opt out.
  It focuses on all citizens in the unorganised sector, who join the National Pension System (NPS) administered by the Pension Fund Regulatory and Development Authority (PFRDA).
  It is open to all bank account holders in the age group of 18 to 40 years and the contributions differ, based on pension amount chosen.
  Provided that from 1st October, 2022, any citizen who is or has been an income-tax payer, shall not be eligible to join APY.
  Subscribers would receive the guaranteed minimum monthly pension of Rs. 1000 or Rs. 2000 or Rs. 3000 or Rs. 4000 or Rs. 5000 at the age of 60 years.
  The monthly pension would be available to the subscriber, and after him to his spouse and after their death, the pension corpus, as accumulated at age 60 of the subscriber, would be returned to the nominee of the subscriber.
  In case of premature death of subscriber (death before 60 years of age), spouse of the subscriber can continue contribution to APY account of the subscriber, for the remaining vesting period, till the original subscriber would have attained the age of 60 years.
  Subscribers can voluntarily exit from APY subject to certain conditions, on deduction of Government co- contribution and return/interest thereon.
• It is open to all bank account holders who are not members of any statutory social security scheme.
• The Central Government would also co-contribute 50% of the subscriber‘s contribution or Rs. 1000 per annum, whichever is lower for a period of 5 years upto 2020.
• APY can be opened through banks, Postal department and also through eNPS platform.
  National Pension Scheme:
• It is a pension cum investment scheme launched by Ministry of Finance on 1st January, 2004 to provide old age security to citizens.
• Any individual citizen of India (both resident and Non-resident) in the age group of 18-65 years can join NPS.
• The scheme is regulated by Pension Fund Regulatory and Development Authority (PFRDA).
• The different sectors covered under the scheme are classified in to 2 categories.
  Government Sector: Central Government/Central Autonomous Bodies Employees (except for armed forces), State Government/State Autonomous Bodies Employees.
  Private Sector Corporates (adopting NPS architecture) All Citizens of India.
• The employee of the various sectors contributes towards pension from monthly salary along with matching contribution from the employer (central government/state govt/corporate).
• After retirement or exit from the scheme, the corpus is made available with the mandate that some portion of the corpus must be invested into annuity to provide a monthly pension post retirement or exit from the scheme.
• Recent Developments–PFRDA has now permitted Overseas Citizen of India (OCI) to enrol in NPS at par with Non-Resident Indians.
• Now, any Indian citizen, resident or non-resident and OCIs are eligible to join NPS till the age of 65 years.
  Varishtha Pension Bima Yojana:
• It is a pension scheme for the benefit of citizens aged 60 years and above.
• Under the Scheme the subscribers on payment of a lump sum amount get pension at a guaranteed rate of
  9% per annum (payable monthly).
• Any gap in the guaranteed return over the return generated by the LIC on the fund is compensated by Government of India by way of subsidy payment in the scheme.
• The scheme allows withdrawals of deposit amount by the annuitant after 15 years of purchase of the policy.
• The scheme is administered through LIC.
  Pradhan Mantri Vaya Vandana Yojana:
• It is insurance policy-cum-pension scheme launched by Ministry of Finance on 4th May 2017 exclusively for the senior citizens aged 60 years or above.
• The investment limit is Rs.15 lakh/senior citizen and provides an assured return of 8% p.a. for 10 years.
• It is exempted from Service Tax/ GST and LIC is the implementing agency.
• The ceiling of maximum pension is for a family as a whole; the family will comprise of pensioner, his/her spouse and dependants.
• Premature withdrawal from the scheme is possible in case the money is required for the treatment of terminal or critical illness of the person or spouse.
• The shortfall owing to the difference between the interest guaranteed and the actual interest earned shall be subsidized by the Government of India and reimbursed to the Corporation.
  Pradhan Mantri MUDRA Yojana:
• The programme was launched by Ministry of Finance on April 8, 2015 to give access to cheap credit to poor and small fledgling businesspersons with the objective to provide self-employment.
• It is a scheme to extend collateral free loans by Banks, NBFCs and MFIs to Small/Micro business enterprises and individuals in the non-agricultural sector to enable their business activities and to generate self-employment.
• For implementing the Scheme, government has set up a new institution named, Micro Units Development & Refinance Agency Ltd (MUDRA).
• It acts as a regulator for the micro finance sector looks after development and refinancing activities relating to micro units.
• It provides refinance to all banks and Last Mile Financiers seeking refinancing of small business loans given under PMMY.
• The scheme services whose credit needs are below Rs.10 lakh.
• Loans can be availed under three categories i. Shishu for loans up to Rs.50,000; ii. Kishor for loans above Rs. 50,000 and up to Rs.5 lakh; iii. Tarun for loans above Rs.5 lakh and up to Rs.10 lakh.
• Mudra debit cards are issued to borrowers. Using these, they can withdraw the loan from any ATM in India, as and when they need the money.
  Pradhan Mantri Kisan Sampada Yojana:
• It is a Central Sector Scheme of Ministry of Food Processing Industries (MoFPI) that aims to supplement agriculture, modernize processing and decrease Agriculture waste.
• It was previously known as Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters (SAMPADA).
• The scheme will be implemented in 2016-20, and the implementation will result in creation of modern infrastructure, growth of food processing sector and providing better prices to the farmers.
• The following schemes will be implemented under it

1. Mega Food Parks
2. Integrated Cold Chain and Value Addition Infrastructure
3. Creation/ Expansion of Food Processing/ Preservation Capacities (Unit Scheme)
4. Infrastructure for Agro-processing Clusters
5. Creation of Backward and Forward Linkages
6. Food Safety and Quality Assurance Infrastructure
7. Human Resources and Institutions
   Ayushman Bharat Programme:

• Ayushman Bharat (centrally sponsored scheme) is National Health Protection Scheme launched by Ministry of Health and Family Welfare on 23 September 2018, which will cover over 10 crore poor and vulnerable families based on SECC (Socio-Economic Caste Census) database (approximately 50 crore beneficiaries) providing coverage upto 5 lakh rupees per family per year for secondary and tertiary care hospitalization to achieve the vision of Universal Health Coverage.
  Ayushman Bharat – National Health Protection Mission will subsume the on-going centrally sponsored schemes – Rashtriya Swasthya Bima Yojana (RSBY) and the Senior Citizen Health Insurance Scheme (SCHIS).
• It comprises of two inter-related components:

1. Establishment of Health and Wellness Centre
2. Pradhan Mantri Jan Arogya Yojana (PMJAY)

• Health and Wellness Centre – National Health Policy, 2017 envisioned Health and Wellness Centres as the foundation of India‘s health system.
• These will also provide free essential drugs and diagnostic services.
• First ‘health and wellness centre’ has been inaugurated in Bijapur district in Chhattisgarh.
• Pradhan Mantri Jan Arogya Yojana (PMJAY) – It aims to reduce out of pocket hospitalisation expenses by providing health insurance coverage upto Rs.5 lakh/family/year for secondary and tertiary care hospitalization.
• Also, a beneficiary covered under the scheme will be allowed to take cashless benefits from any public/private empanelled hospitals across the country.
• To ensure that nobody from the vulnerable group is left out of the benefit cover, there will be no cap on family size and age in the scheme.
• The insurance scheme will cover pre and post-hospitalisation expenses.
• All pre-existing diseases are also covered.
• It will also pay defined transport allowance per hospitalization to the beneficiary.
• Funding – The expenditure incurred in premium payment will be shared between central and state governments in a specified ratio

1. 60:40 for all states and UTs with their own legislature.
2. 90:10 in NE states and the 3 Himalayan states of J&K, HP and Uttarakhand. 3. 100% central funding for UTs without legislature.

• States would need to have State Health Agency (SHA) to implement the scheme.
• The scheme is creating a cadre of certified frontline health service professionals called Pradhan Mantri Aarogya Mitras (PMAMs). PMAM will be primary point of facilitation for the beneficiaries to avail treatment at the hospital and thus, act as a support system to streamline health service delivery.
  Janani Suraksha Yojana:
• It is 100 % centrally sponsored scheme to provide a safe motherhood intervention under the National Rural Health Mission (NHM). It is being implemented with the objective of reducing maternal and infant mortality by promoting institutional delivery among pregnant women.
• There is no bar on age of mother, number of children or type of institution i.e a government or accredited private health facility.
  It was launched by Ministry of Health & Family Welfare in April 2005 by modifying the National Maternity Benefit Scheme (NMBS).
• Financial assistance under JSY is available to all pregnant women in states that have low institutional delivery rates, namely, UP, Uttarakhand, Bihar, Jharkhand, MP, Chhattisgarh, Assam, Rajasthan, Odisha, and J&K. They are categorized as Low Performing States (LPS).
• In High Performing States (HPS), where the levels of institutional delivery are satisfactory, pregnant women from BPL/SC/ST households only are entitled for JSY benefit.
• The scheme also provides performance based incentives to ASHAs.
  Pradhan Mantri Surakshit Matritva Abhiyan:
• It is launched by Ministry of Health & Family Welfare on June 9, 2016 to provide assured, comprehensive and quality antenatal care, free of cost, universally to all pregnant women on the 9th of every month.
• It guarantees a minimum package of antenatal care services to women in their 2nd/3rd trimesters of pregnancy at designated government health facilities.
• The health check-up includes a minimum package of prenatal care/antenatal care services i.e. care given during pregnancy and medicines such as IFA supplements, calcium supplements etc. would be provided to all pregnant women.
• The programme follows a systematic approach for engagement with private sector which includes motivating private practitioners to volunteer for the campaign.
• It also laid special emphasis on early diagnosis, adequate and appropriate management of women with malnutrition and adolescent and early pregnancies as these pregnancies need extra and specialized care.
• Thus it aims to improve the quality and coverage of Antenatal Care (ANC) including diagnostics and counselling services as part of the Reproductive Maternal Neonatal Child and Adolescent Health (RMNCH+A) Strategy.
  Housing for All (URBAN):
• It envisions Housing for All by 2022 and it subsumes Rajiv Awasyojana and Rajiv RinnYojana
• It seeks to address the housing requirement of slum dwellers through urban poor including following programme

1. Central assistance to Urban Local Bodies (ULBs) and other implementing agencies for Slum rehabilitation with participation of private developers.
2. Promotion of Affordable Housing for weaker section through Credit Linked Subsidy
3. Affordable Housing in Partnership with Public & Private sectors
4. Subsidy for beneficiary-led individual house construction

• It covers all 4041 statutory towns as per Census 2011 with focus on 500 Class I cities in three phases.
• Centre and state will be funding in the ratio of 75:25 and in case of North Eastern and special category States in the ratio of 90:10.
• Beneficiaries -Urban poor who does not own a pucca house, Economically Weaker Section (EWS) and Lower Income Groups (LIG – eligible only for credit linked subsidy scheme).
• States/UTs have flexibility to redefine the annual income criteria with the approval of Ministry.
• Under the mission, a beneficiary can avail of benefit of one component only.
• HUDCO and NHB have been identified as Central Nodal Agencies (CNAs) to channelize this subsidy to the lending institutions.
  Deendayal Antyodaya Yojana:
• It aims to uplift the urban poor by enhancing sustainable livelihood opportunities through skill development.
• It is an integration of National Urban Livelihood Mission (NULM) & National Rural Livelihood Mission (NRLM).
  DAY-NULM was launched by Ministry of Housing and Urban Affairs in the year 2013 by restructuring the Swarna Jayanti Shahari Rozgar Yojana with an aim to benefit the urban poor including the urban
  homeless. It is implemented under the Ministry of Housing and Urban Affairs. NULM aims at universal coverage of the urban poor for skill development and credit facilities.
  DAY-NRLM has been launched under the Ministry of Rural Development in June 2011 by restructuring of Swarna Jayanti Gram Swarozgar Yojna (SGSY) with an aim to reduce the rural poverty by providing them with employment opportunities. It also involves building strong community institutions and mobilizing them to build strong self-help groups.
• Funding will be shared between the Centre and the States in the ratio of 75:25. For North Eastern and Special Category – the ratio will be 90:10.
  Pradhan Mantri Shram-Yogi Maandhan (PM-SYM):
• It is a voluntary and contributory Pension Scheme launched in February 2019 for Unorganized Workers for entry age of 18 to 40 years with monthly income of Rs.15000 or less.
  PM-SYM is a Central Sector Scheme administered by the Ministry of Labour and Employment and implemented through Life Insurance Corporation of India and Community Service Centers (CSCs). LIC will be the Pension Fund Manager and responsible for Pension pay out.
• It promises to provide assured pension of Rs 3,000 per month from the age of 60 years, in return for making a monthly contribution of a nominal sum during the working age.
• The scheme will cover 10 crore workers in the unorganised sector in the first 5 years, making it one of the largest pension schemes in the world.
  They should not be covered under New Pension Scheme (NPS), Employees’ State Insurance Corporation (ESIC) scheme or Employees’ Provident Fund Organisation (EPFO). He/She should not be an income tax payer.
  It functions on a 50:50 basis where prescribed age-specific contribution shall be made by the beneficiary and the matching contribution by the Central Government.
• Family Pension – During the receipt of pension, if the subscriber dies, the spouse of the beneficiary shall be entitled to receive 50% of the pension received by the beneficiary as family pension. Family pension is applicable only to spouse. If a beneficiary has given regular contribution and died due to any cause (before age of 60 years), his/her spouse will be entitled to join and continue the scheme subsequently by payment of regular contribution or exit the scheme as per provisions of exit and withdrawal.
  Portal PENCIL:
• Platform for Effective Enforcement for No Child Labour (PENCIL) is an electronic platform under the Ministry of Labour and Employment to create a child labour free India.
• The portal creates a robust implementing and monitoring mechanism for enforcement of the legislative provisions of National Child Labour Policy (NCLP).
• Since the subject of labour is in the concurrent list, the enforcement of the policy depends on respective state governments.
• This online portal aims to connect the Centre to the state government, district and to all project societies for effective implementation of NCLP.
  Pradhan Mantri Ujjawala Yojana:
• It is launched by Ministry of Petroleum and Natural Gas on 1st May 2016 to provide free LPG connections to Women from BPL Households by providing financial support of Rs 1600 for each new LPG connection.
• The identification of eligible BPL families will be made in consultation with the State Governments and the Union Territories based on the socio-economic and caste census data.
• Providing LPG connections to BPL households will ensure universal coverage of cooking gas in the country which will empower women and protect their health.
• It aims to address serious health hazards associated with cooking based on fossil fuels. Non- communicable diseases such as heart disease, stroke, chronic obstructive pulmonary disease and lung cancer and Indoor air pollution causing acute respiratory illnesses in young children is addressed through this scheme.
• It will also provide employment for rural youth in the supply chain of cooking gas.
  PAHAL:
• Direct Benefit Transfer for LPG consumer scheme called, `PAHAL‘aims to reduce leakage of subsidy, reduce intermediaries and eliminate duplicate LPG connections by introducing direct cash transfer of subsidies.
• LPG consumers, who join the scheme, will get the LPG cylinders at market price and receive the subsidy directly into their bank accounts.
• The scheme required the consumer to mandatorily have a bank account linked with Aadhaar number for availing LPG Subsidy.
• If they do not possess Aadhaar number, they will have to link their bank account directly with their LPG ID.
  Ujwal DISCOM Assurance Yojana:
• It is launched by Ministry of Power on November 15, 2015 to provide financial and operational turnaround of power distribution companies (DISCOMs) and aims at long term affordable and accessible 24×7 power supply to all.
• It has target of making all DISCOMs profitable by 2018-19 through four initiatives such as improving operational efficiencies of Discoms, Reduction of cost of power, Reduction in interest cost of Discoms, Enforcing financial discipline on DISCOMs through alignment with state finances.
• Under this programme, States shall take over 75% of DISCOM debt over two years i.e. 50% of DISCOM debt shall be taken over in 2015-16 and 25% in 2016-17.
• Government of India will not include the debt taken over by the states as per the above scheme in the calculation of fiscal deficit of respective states in the financial years 2015-16 and 2016-17.
• States will issue non-SLR including SDL bonds in the market or directly to the respective banks / financial institutions (FIs) holding the DISCOM debt to the appropriate extent.
• DISCOM debt not taken over by the state shall be converted by the banks / FIs into loans or bonds.
  MNREGA:
• Mahatma Gandhi National Rural Employment Guarantee Act 2005 is an employment scheme to enhance livelihood security in rural areas by providing at least 100 days of legal guaranteed demand based wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work.
• A 60:40 wage and material ratio has to be maintained. No contractors and machinery is allowed.
• Wages are linked to Consumer Price Index (Agriculture labour).
  The Ministry of Rural Development (MRD), Govt. of India is monitoring the entire implementation of this scheme in association with state governments.
• The central government bears the 100% wage cost of unskilled manual labour and 75% of the material cost including the wages of skilled and semi-skilled workers.
• If work is not provided within 15 days of applying, applicants are entitled to an unemployment allowance.
  The employment will be provided within a radius of 5 km: if it is above 5 km extra wage will be paid.
• MGNREGA is to be implemented mainly by gram panchayats.
• At least one-third beneficiaries shall be women. Wages must be paid according to the statutory minimum wages specified for agricultural labourers in the state under the Minimum Wages Act, 1948.
• Social audit has to be done by the gram sabha at least once in every 6 months.
  National Social Assistance Program:
• It is a social security and welfare programme to provide support to aged persons, widows, disabled persons and bereaved families on death of primary bread winner, belonging to below poverty line households.
• It comprises of five schemes, namely – (1) Indira Gandhi National Old Age Pension Scheme (IGNOAPS),
  (2) Indira Gandhi National Widow Pension Scheme (IGNWPS), (3) Indira Gandhi National Disability Pension Scheme (IGNDPS), (4) National Family Benefit Scheme NFBS) and (5) Annapurna.
• Under NSAP 100% Central Assistance is extended to the States/UTs to provide the benefits in accordance with the norms, guidelines and conditions laid down by the Central Government.
  Rashtriya Vayoshri Yojana:
• It is a scheme for providing physical aids and assisted-living devices for Senior citizens belonging to BPL category.
• The scheme will address disabilities like low vision, hearing impairment, loss of teeth and locomotors disability with such assisted living devices which can restore near normalcy in their bodily functions.
• The devices will be distributed in camp mode and will be implemented by Artificial Limbs Manufacturing Corporation (ALIMCO), a Public Sector Undertaking under Ministry of Social Justice and Empowerment.
• This is a Central Sector Scheme, fully funded by the Central Government.
• The expenditure for implementation of the scheme will be met from the “Senior Citizens’ Welfare Fund”.
• Beneficiaries in each district will be identified by the State Governments/UT Administrations through a
  Committee chaired by the Deputy Commissioner/District Collector.
  Pradhan Mantri Matru Vandana Yojana:
• Since 2005, JSY pays Rs.1, 400 to poor women who deliver in a hospital, for the first two deliveries.
• National Food Security Act (2013) mandated the payment of no less than Rs.6,000 to all pregnant women, irrespective of their income status.
• So the Ministry has formulated Indira Gandhi Matritva Sahyog Yojana. It was implemented using the platform of Integrated Child Development Services (ICDS) Scheme and in selected 53 districts across the country. Pan-India Expansion of Indira Gandhi Matritva Sahyog Yojana is called Pradhan Mantri Matru Vandana Yojana (PMMVY)/Maternity Benefit Programmee.
• The Scheme provides cash incentives to pregnant and lactating women.

1. For the wage loss so that the woman can take adequate rest before and after delivery;
2. To improve her health and nutrition during the period of pregnancy and lactation;
3. To breastfeed the child during the first six months of the birth, which is very vital for the development of the child.

• All Pregnant Women and Lactating Mothers (PW&LM), excluding those in regular employment with the Government or PSUs or those who are in receipt of similar benefits under any law for the time being are eligible.
• Pregnant Women and Lactating Mothers who are eligible will receive a cash benefit of Rs.5,000/- in three instalment. The cash incentive is payable in three instalments for the first live birth, as normally, the first pregnancy of a woman exposes her to new kind of challenges and stress factors.
• The cash transfer would be Aadhaar linked through the individual bank/post office account etc. in DBT mode.
• It is a Centrally Sponsored Scheme and the cost sharing between Centre and States is 60:40 for all the States and UTs (with legislature), 90:10 for NER and Himalayan States and 100% GoI share for UTs without legislatures.
• Thus a PW&LM will get Rs. 5,000/- under PMMVY and the remaining cash incentive as per approved norms under Janani Suraksha Yojana (JSY) after institutional delivery so that on an average, a woman gets Rs. 6000/
  Sukanya Samriddhi Yojana:
• It is launched as a part of the BetiBachaoBetiPadhao’ campaign.
• It is a small deposit scheme for girl child to motivate parents to open an account in the name of a girl child and for her welfare to deposit maximum of their savings.
• The account can be opened at any time from the birth of a girl child till she attains the age of 10 years in any post office or authorized branches of commercial banks.
• A minimum of Rs. 1000 and maximum of Rs. 1.5 lakh can be deposited during a financial year and fetch an interest rate of 9.1 % and provide income tax rebate.
• The account will get matured in 21 years from the date of opening of account or marriage of the girl child after attaining 18 years of age.
• Partial Withdrawal for girl child education can be done when she cleared 10th class or turned 18 years.
• 100% of the amount can be withdrawn after girl child turns 18 is allowed and the provision of not allowing the withdrawal till the age of 18 is to prevent early marriage.
  Insurance – Meaning and Definition
  The literal meaning of insurance would be an assurance against unforeseen and unfortunate loss. This means, that if you encounter a less than normal event in your normal course of life, and happen to incur a financial loss because of it, you can be compensated.
  Legally insurance has been defined as a contract where the insurer agrees to compensate the insured against the losses incurred due to any unforeseen contingency. The contract also involves a consideration which is called a premium. The maximum available benefit amount is called sum assured or sum insured.
  How does an Insurance Policy Work?
  To understand how insurance works, you should know below terms:

1. Premium: is the money you pay to the insurance company to avail of insurance policy benefits.
2. Sum Insured: Sum insured is applicable for a non-life insurance policy like home and health insurance. It refers to the maximum cap on the costs you are covered for in a year against any unfortunate event.
3. Sum Assured: Sum assured is the amount the life insurance company pays to the nominee if the insured event happens (death of insured). Important Terms of Insurance:
   Contestable Period:

• The life insurance contestability period is a short window in which insurance companies can investigate and deny claims. The period is two years in most states and one year in others, and it begins as soon as a policy goes into effect.
• If you die within the contestability period, the life insurance company can investigate whether you gave accurate information on your life insurance application. The company can deny paying the death benefit if you lied – even if the cause of death has nothing to do with misrepresentation on your application.
  Gross Written Premium:
• The sum of direct premiums written and assumed premiums written before the consequences conceded reinsurance is called Gross Premium written.
• The premiums issued on policies of the insurance subsidiaries of an insurance company during the financial year are called direct premiums.
• The premiums that insurance subsidiaries of an insurance company received from an approved state- ordered pool or under past fronting offices.
  Actual Cash Value:
• In insurance sector, Actual Cash Value is the method estimating the value of insured property.
• It is calculated by subtracting depreciation from the replacement cost.
• ACV is always less than the cost to replace the damaged or stolen property. ACV is often used by the insurance companies to calculate the amount to be paid against the damaged or lost property to the policyholder.
  Insurance in India:
  INSURANCE
  Earned Premium:
• The part of the premium collected by an insurance company against the policy that has been expired is called as the earned premium.
• Generally, the insurance premiums are payable in advance but the insurance company does not fully earn them until the policy period expires.
• When the premium is paid, it is considered an unearned premium-thus, not a profit because the insurance company still has an obligation to fulfill.
  Maximum Possible Loss:
• It is the maximum loss of the insured property that an insurer would be expected to incur on a policy.
• Normally, this sum would be all the property within the premise of the of a structure, in addition, a loss to a nearby property because of its closeness.
• While determining the risk associated with underwriting a new insurance policy, the insurance companies use diverse sets of data including Maximum Possible Loss (MPL).
• Maximum Possible Loss (MPL) helps the insurance companies to set the premium under the new insurance policy.
  Contestable Period:
• The life insurance contestability period is a short window in which Insurance companies can investigate and deny claims. The period is two years in most states and one year in others, and it begins as soon as a policy goes into effect.
• If you die within the contestability period, the life insurance company can investigate whether you gave accurate information on your life insurance application. The company can deny paying the death benefit if you lied – even if the cause of death has nothing to do with misrepresentation on your application.
  Human Life Value:
• HLV is the expected income of the insured person or in other words, it is the total income the person is supposed to earn during the rest of his/her working life.
• For example, a person having 23 years of age will work till the age of 60 years and he is expected to earn Rs. 85 lakh rest of his/her life span then Rs. 85 lakh will be the HLV of his/her.
• HLV is not the actual income of a person but it is the expected amount that should be targeted to earn during his/her rest of life in order to live a financially secured life for himself/herself or for his/her own loved one irrespective of the possibility of unprecedented death.
  Certified Insurance Counselor:
• Certified Insurance Counselor (CIC) is an insurance agent professional certification designation.
• The CIC certification program was started by the National Alliance for Insurance Education & Research in Austin, Texas in 1969.
• Some CIC courses can be used to fulfill state continuing education requirements for licensing as an insurance agent.
  History and evolution:
  1818 Advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta, started by Europeans 1870 Bombay Mutual Life Insurance was the first Swadeshi life insurance company started in the Bombay Residency. 1912 The Indian Life Assurance Companies Act 1912, was the first statutory measure to regulate life business. However, the norms were lax, that led insurance industry to face problems in the aftermath of Great Depression in USA. 1938 With a view to protecting the interest of the public, the earlier legislation was consolidated and amended by the Insurance Act, 1938 with tougher regulatory provisions. 1956 Nationalising the Life Insurance sector and Life Insurance Corporation (LIC) came into existence. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector. early 1990s The process of re-opening of the sector had begun. 1993 The Govt. set up RN Malhotra committee to propose recommendations for reforms in the insurance sector. 1999 On recommendations of Malhotra committee, Insurance Regulatory and Development Authority (IRDA) (made statutory body in 2000) was constituted as an autonomous body to regulate and develop the insurance industry. 2000 The subsidiaries of the General Insurance Corporation of India (GIC) were restructured as independent companies and GIC was converted into a national re- insurer.
  There are currently 57 insurance companies in India, of which 46 are from the private sector. There are 24 life insurance and 33 non-life insurance companies in India. Insurance principles:
  To ensure the proper functioning of an insurance contract, the insurer and the insured have to uphold the 7 principles of Insurances mentioned below:

1. Utmost Good Faith
2. Proximate Cause
3. Insurable Interest
4. Indemnity
5. Subrogation
6. Contribution
7. Loss Minimization Importance of insurance sector:
   Benefits of Insurance:

• The obvious benefit of insurance is the payment of losses.
• Manages cash flow uncertainty when paying capacity at the time of losses is reduced significantly.
• Complies with legal requirements by meeting contractual and statutory requirements, also provides evidence of financial resources.
• Promotes risk control activity by providing incentives to implement a program of losing control because of policy requirements.
• The efficient use of the insured’s resources. It provides a source of investment funds. Insurers collect the premiums and invest those in a variety of investment vehicles.
• Insurance is support for the insured’s credit. It facilitates loans to organisations and individuals by guaranteeing the lender payment at the time when collateral for the loan is destroyed by an insured event. Hence, reducing the uncertainty of the lender’s default by the party borrowing funds.
• It reduces social burden by reducing uncompensated accident victims and the uncertainty of society.
• Sector helps in mobilizing savings of public to financial assets
• Reduces fiscal burden on govt. to run schemes for social security – reduction in fiscal deficit.
• Insurance sector also act as a stabilizer and it helps people in the situation of crisis (health, accident, etc.)
• Spread of financial services in rural areas – IRDA Regulations provide certain minimum business to be done in rural areas, in the socially weaker sections.
• Insurance is a financial instrument which turns saving into an investment–Circular flow of capital
• A well-developed insurance sector boosts risk-taking in the economy.
• Sector also provides much-needed support to family members in the case of loss of life or health.
• Insurance companies need to invest part of premium in social and economic infrastructure – promotes socio-economic development.
• Insurance enables entrepreneurs to take bold and big-ticket decisions.
• Assets under management of insurance companies represent long-term capital, they also act as a pool in which to invest in long-term projects such as infrastructure development.
• Budget-2019 Finance minister Nirmala Sitaraman in the Union Budget last year said that 100% FDI will be permitted for insurance intermediaries. This will facilitate more investment by foreign companies in insurance sector, increased competition, better services to consumer, better and robust economic growth. FDI in the insurance sector was capped at 49% under the automatic route. According to the policy, FDI for insurance company is still capped at 49%.
  Insurance sector in India:
• India currently accounts for less than 1.5 per cent of the world’s total insurance premiums and about 2 per cent of the world’s life insurance premiums despite being the second most populous nation.
• India’s life insurance sector is the biggest in the world with about 360 million policies which are expected to increase at a Compound Annual Growth Rate (CAGR) of 12-15 per cent over the next five years.
• Government had last year raised the FDI limit in the insurance sector to 74% from 49%, it did
  not cover LIC that is governed by a specific legislation.
• At present, the FDI policy does not prescribe any specific provision for foreign investment in LIC which is a statutory corporation established under LIC Act, 1956. Union Cabinet cleared an amendment to the FDI Policy to allow Foreign Direct Investment (FDI) up to 20% under the “automatic route” in Life Insurance Corporation (LIC) ahead of its proposed Initial Public Offer (IPO).
  Banking sector vs insurance sector:
  YEAR
  BANKING SECTOR
  INSURANCE SECTOR
  Regulator
  RBI
  IRDAI
  1948-49
  Nationalization of RBI
  1955 – 56
  Nationalization of SBI
  Nationalization of the Life Insurance sector and LIC came into existence.
  1969
  Nationalization of 14 Private Banks
  1972
  GIC Act – GIC and its 4 subsidiaries tookover – 107 (private owned) General Insurance Companies.
  1980
  Nationalization of 6 Private Banks
  Reforms In 1990s
  Narasimham committee I (1991) and II (1998) + privatization and liberalization of banking sector
  Malhotra Committee (1993) + Private insurance companies were allowed + FDI was liberalized
  Safeguards
  CRR, SLR, BASEL
  Investment Pattern, Solvency Margin. For instance, Insurance companies must invest minimum “specified %” of premium in G-Sec, they cannot invest more than “specified %” of premium in private companies shares or debentures etc. They must not invest in companies having less than “AA” credit rating
  etc. Exact norms not imp.
  Financial Inclusion and goal of Welfare
  Priority Sector Lending (PSL) norms, 25% branches in unbanked rural areas
  Rural & Social Obligation Norms- every year “specified” number of policies must be sold in rural areas, PH/backward etc. Further Insurance companies required to invest minimum “specified” in affordable housing projects, State Govt’s fire equipment etc.
  Delivery Channel
  Bank branch, Business Correspondence Agent (Bank-Mitra)
  Agents & brokers, Banks selling insurance (Bancassurance), Surveyor/Loss Assessors, Third Party Administrators (e.g. Hospital
  where treatment is given)
  Types of Insurance:
  There are two broad categories of insurance:

1. Life Insurance
2. General insurance Life Insurance:
   The insurance policy whereby the policyholder (insured) can ensure financial freedom for their family members after death. It offers financial compensation in case of death or disability.
   Life Insurance in India was nationalised by incorporating Life Insurance Corporation (LIC) in 1956. All private life insurance companies at that time were taken over by LIC. In 1993, the Government of India appointed RN Malhotra Committee to lay down a road map for privatisation of the life insurance sector.
   While purchasing the life insurance policy, the insured either pay the lump-sum amount or makes periodic payments known as premiums to the insurer. In exchange, of which the insurer promises to pay an assured sum to the family if insured in the event of death or disability or at maturity.
   Depending on the coverage, life insurance can be classified into the below-mentioned types:

• Term Insurance: Gives life coverage for a specific time period.
• Whole life insurance: Offer life cover for the whole life of an individual
• Endowment policy: a portion of premiums go toward the death benefit, while the remaining is invested by the insurer.
• Money back Policy: a certain percentage of the sum assured is paid to the insured in intervals throughout the term as survival benefit.
• Pension Plans: Also called retirement plans are a fusion of insurance and investment. A portion from the premiums is directed towards retirement corpus, which is paid as a lump-sum or monthly payment after the retirement of the insured.
• Child Plans: Provides financial aid for children of the policyholders throughout their lives.
• ULIPS – Unit Linked Insurance Plans: same as endowment plans, a part of premiums go toward the death benefit while the remaining goes toward mutual fund investments.
  General Insurance:
  Everything apart from life can be insured under general insurance. It offers financial compensation on any loss other than death. General insurance covers the loss or damages caused to all the assets and liabilities. The insurance company promises to pay the assured sum to cover the loss related to the vehicle, medical treatments, fire, theft, or even financial problems during travel.
  General Insurance can cover almost anything, and everything but the five key types of insurances available under it are –
• Health Insurance: Covers the cost of medical care.
• Fire Insurance: give coverage for the damages caused to goods or property due to fire.
• Travel Insurance: compensates the financial liabilities arising out of non-medical or medical emergencies during travel within the country or abroad
• Motor Insurance: offers financial protection to motor vehicles from damages due to accidents, fire, theft, or natural calamities.
• Home Insurance: compensates the damage caused to home due to man-made disasters, natural calamities, or other threats.
  Life Insurance Corporation of India (LIC):
• The life insurance business/industry in the country was nationalised by the GoI in 1956 and fully government-owned company was setup by an act of Parliament, to take over the private life insurance companies.
• In 2018, LIC became majority shareholder in IDBI bank.
• Further in 2019, RBI classifies IDBI as a ‘private sector’ bank.
• LIC HQ (Mumbai) and Corporate magazineà “Yogakshema” (means well-being – Rigveda)
• LIC mottoà “Yogakshemam Vahamyaham” (means I ensure safety and well-beingof my devotees- Gita)
• Twin objectives of nationalisation of LIC
• To spread the message of life insurance for greater social security
• To mobilise people’s savings (collected as premiums) for nation building.
  Disinvestment of LIC (2020):
• Union Budget-2020 stated that LIC Act will be amended. This move will convert LIC from a statutory corporation into a listed company. This will enable govt. to sell part of its shareholding through Initial Public Offering (IPO)
• Insurance products of LIC come with a sovereign guarantee by the Government. Hence, people prefer to buy it over private sector insurance policies. This led to distortion of perfect competition.
• Reduction of shareholding by government will result into independent functioning of LIC.
• Prior to these developments, IMF (2018) and Financial Sector Legislative Reforms Commission (Justice
  B. N. Sri Krishna) (FSLRC-2011) had also advised the disinvestment to Government of India.
• RN Malhotra Committee (1993) was appointed by the GoI to lay down a road map for privatisation of the life insurance sector.
  Life Insurance and Accidental (General) Insurance:
  FEATURES PRADHAN MANTRI JEEVAN JYOTI BIMA (PMJJB) PRADHAN MANTRI SURAKSHA BIMA YOJANA (PMSBY) Age 18 to 50 years with bank account in India. NRIs eligible but payment in rupee currency only. 18 to 70 years with bank account in India. NRIs eligible but payment in rupee currency only. Purchase from LIC or any empanelled private life insurance company. Four Public Sector, or any empaneled pvt. General Insurance company. Premium amount INR 436 per person/ annum INR 20 per person/ annum Insurance Type Life Insurance General Insurance Nature of Plan 1 year “term” life insurance. 1 year “term” accident cum death insurance. Return Any type of death: INR 2 lakhs will be returned Accidental Death, murder, natural disaster etc. INR 2 lakhs. However, suicide, alcohol- drugs related death will not be eligible
  General Insurance Entities in India:
  1948 Employees’ State Insurance Corporation (ESIC) under Labour Ministry – through an act of Parliament to protect selected category of workers. 1957 Export Credit Guarantee Corporation of India (ECGC) under Commerce Ministry. Gives insurance cover to exporters, and credit guarantee to Bank/NBFC who loan to exporters. 1961 DICGCI Act – banks must buy deposit insurance from it- covers upto INR 5 lakh Although not considered a General Insurance Company in textbook sense because does not directly sell insurance policy to any individual household/business firm. 1972 General Insurance Nationalization Act – 107 (private) general insurance companies were taken over by GIC and its 4 subsidiaries – National insurance, New India Assurance, United India, Oriental Later, Govt. took direct control over these 4 subsidiaries, and left GIC to take care of re-insurance business. 2002 Agriculture Insurance Company Limited (AIC), (formed with funding of GIC, above 4 public sector General Insurance Companies and NABARD.) Budget 2018- Feb Budget announced to merge National Insurance Company, United India Insurance Company and Oriental India Insurance Company, however the plan is yet to materialize. 2018-Oct Dept of Financial service (Min. of Finance) organized ‘Insurance Manthan’ for Public Sector General Insurance at Delhi. Six-point agenda endorsedàfully insured society, customer orientation, digital-analytics for future, sustainable-prudent business, reach for everyone and talent management.
  Agricultural insurance in India:
  Agriculture in India is highly susceptible to risks like droughts and floods. It is necessary to protect the farmers from natural calamities and ensure their credit eligibility for the next season. For this purpose, the Government of India introduced many agricultural schemes throughout the country.
  Pradhan Mantri Fasal Bima Yojana: Covered in Social security section.
  Livestock Insurance Scheme: In India provided “provide protection mechanism to the farmers and cattle rearers against any eventual loss of their animals due to death.
  Farm Income Insurance Scheme: Central Government formulated the Farm Income Insurance Scheme (FIIS) during 2003-04. The two critical components of a farmer’s income are yield and price.
  National Agriculture Insurance Scheme: Government of India experimented with a comprehensive crop insurance scheme which failed. The Government then introduced in 1999-2000, a new scheme titled “National Agricultural Insurance Scheme” (NAIS) or “Rashtriya Krishi Bima Yojana” (RKBY).
  Employees’ Provident Fund Organisation (EPFO):
  The Employees’ Provident Fund Organisation (EPFO) is one of the two main organizations under the Government of India’s Ministry of Labour and Employment.It is a non-constitutional body that promotes employees to save funds for retirement. It was launched in 1951.
  It is responsible for regulation and management of provident funds in India, the other being Employees’ State Insurance.
  The EPFO administers the mandatory provident fund, a basic pension scheme, and a disability/death insurance scheme.
  It also manages social security agreements with other countries. International workers are covered under EPFO plans in countries where bilateral
  Reinsurance:
  Reinsurance, often referred to as “insurance for insurance companies,” is a contract between a reinsurer and an insurer. In this contract, the insurance company—the cedent—transfers risk to the reinsurance company, and the latter assumes all or part of one or more insurance policies issued by the cedent.
  Micro-insurance:
  Micro-insurance products offer coverage to low-income households or to individuals who have little savings. It is tailored specifically for lower valued assets and compensation for illness, injury, or death.
  IRDAI – Insurance Sector Regulator in India:
  Organisation Following the recommendations of the Malhotra Committee report, IRDA was setup in 1996, the statutory status given in 1999. In 2014, its name changed to Insurance Regulatory and Development Authority of India (IRDAI). It is headquartered at Hyderabad (Telangana). (SEBI and RBI are at Mumbai) Structure Total 10à One Chairman (5yrs or 65 yrs) and 9 members (5yrs or 62 yrs) They are eligible for re-appointment.
  Functions
  IRDAI gives separate licenses for life, general & re-insurance companies.
  Prescribes norms for insurance companies for accounting, solvency, audit, commission to agents etc. It can penalize companies, suspend or cancel registration. (Appeal against order lies in Securities Appellate Tribunal (SAT).
  Norms for agents & brokers, banks selling products (Bancassurance), Surveyor/ Loss Assessor, and Third-Party Administrators (e.g. Hospital)
  Consumer grievance redressal via Insurance Ombudsman.
  IRDAI is member of Financial Stability and Development Council (FSDC).
  Challenges to insurance sector:
• Low penetration and density rates: Due to relatively few buyers and sellers of insurance in rural areas, market power shifts to insurers and results in high prices, which further leads to lower penetration.
• Poor rural participation and low household investment: As per the IRDAI, lack of awareness about health insurance remains one of the major hurdles. Not surprisingly, less than 15 percent of the populace purchase a health insurance policy. Despite liberalisation, insurance companies have consistently ignored rural markets.
• Lack of adequate capital investments: Partly, low insurance penetration can be attributed to inadequate capital with insurers. The expansion to the unpenetrated markets of the country remains a challenge due to insufficient capital that needs to be invested.
• Accessibility and lack of financial literacy: The insurance sector is less accessible to people in rural areas for a number of reasons, including pricing and lack of awareness.
• Low Awareness – A large majority of people in India believe that health insurance is not a worthy investment.
• Poor Distribution – Distribution outside large cities is poor. The reason insurers and distributors do not build a presence in small towns is that it is unviable.
• Insurance is highly regulated, but healthcare is equally unregulated, so it creates supply demand mismatch between (doctors-hospitals) vs. patients. Moreover, standardized medical treatment costs difficult to ascertain (unlike car damage). This problem further aggravated by delays in claim settlement so discourages to renew health policy.
• Capital intensive industry– Private players not generating enough profits due to poor returns in share market. Soaring commission rates and marketing reduces profitability further.
• Costly products – Lack of innovative custom and tailor-made policies for MSME. This results into under insurance (client not taking sufficient insurance to cover losses)
• Lack of required skill set – with the insurance agents. Need of more skill and network more than banker.
• Rural folks – they are either disinterested or un-served despite no. of schemes and & IRDAI norms which are in place.
• Sales centric focus – Insurers have been focusing on growing sales even if that creates a distortion in pricing for individuals.
• Perception by influencers – Often, the life insurance industry is portrayed (by media and influencers) in a negative manner and hence the consumers become skeptical.
• Fewer product innovations – While many essential products to mitigate risk are available, there are gaps in the insurance product portfolio that leaves large risks uninsured.
• Hesitation by peoples in buying House, Factory, Fire, Theft insurance due to fear of discovery of ‘asset value’ which could result into IT/GST raids & ransom demands. As a result, India’s “insurance gap” is high i.e. total assets (in value) divided by insured assets (in value).