CS Executive Paper 6 (ECIPL) study materials
CS Executive Paper 6 (ECIPL) study resources

CS Executive Paper 6 (ECIPL): Industrial and Labour Laws

CS Executive Paper 6 (ECIPL) · Work through your exam, one topic at a time.

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Industrial and Labour Laws

Factories Act, 1948

A factory is premises where a manufacturing process is carried on with 10 or more workers and power, or 20 or more without power. Limits: 48 hours a week, 9 hours a day, a rest interval of 30 minutes after five hours, a weekly holiday, and leave with wages at one day for every 20 days worked. Hazardous processes attract s.41B safety committees and site appraisal committees.

Industrial Disputes Act, 1947

Core concepts are industry, workman, industrial dispute and award. In public utilities a strike needs six weeks' notice, cannot begin within 14 days of notice, and is barred during conciliation or after reference (s.23). Lay-off, retrenchment (one month's notice or pay plus 15 days' average pay per completed year) and closure are governed by ss.25C–25FFF; Chapter V-B adds prior approval above the prescribed worker threshold.

Social security

EPF: 20 or more employees, wage ceiling ₹15,000, 12% each side, with 8.33% of the employer share going to the pension fund. Gratuity: 10 or more employees, five years' continuous service, 15/26 of last drawn wages, ceiling ₹20 lakh. ESI: wage ceiling ₹21,000, employee 0.75%, employer 3.25%.

Worked example. An employee with 20 years' service and last salary of ₹26,000 retires. Gratuity = 26,000 × 15/26 × 20 = ₹3,00,000, within the ceiling.

Traps. Applying the five-year rule even on death or disablement; using 15/30 instead of 15/26; treating the ESI and EPF ceilings as the same.