Classification should be made as per the Standing Orders. Where there are no Standing Orders or service rules applicable to employees, then classification can be made either based on trade tests or any other test which is reasonable and in accordance with the Model Standing Orders. Generally, the workers are classified as

to regulate working conditions in factories;

to ensure that basic minimum requirements for the safety, health and welfare of the factory workers are provided; and

to regulate of working hours, leave, holidays, overtime and employment of children, women and young persons.

This act applies to all factories including Government factories. A “factory” as defined in the Act means any premises including the precincts:

This act applies to all factories including Government factories. A “factory” as defined in the Act means any premises including the precincts:

where ten or more workers are employed on any day of the preceding 12 months and a manufacturing process is carried on with the aid of electric power; and

where 20 or more workers are employed on any day of the preceding 12 months and a manufacturing process is carried on without the aid of electric power.

The obligations of the employers are, practically speaking, the rights of the employees to claim the minimum health and safety measures and welfare amenities as provided for in the Act, observance of working hours, holidays, overtime, annual leave and special protection against hazardous processes and dangerous substances, to obtain information relating to workers’ health and safety at work from the occupier, to get trained by or through the occupier, in respect of workers’ health and safety, to represent to the Inspector directly or though a representative in the matter of inadequate provision for protection of health or safety in the factory, not to pay any fee or charge for the facilities or appliances provided by the employer and to claim wages for or in lieu of allowable leave under the provisions of the Payment of Wages Act.

Under the Payment of Wages Act 1936 the following are the common obligations of the employer:

every employer is primarily responsible for payment of wages to employees. The employer should fix the wage period (which may be per day, per week or per month) but in no case it should exceed one month;

every employer should make timely payment of wages. If the employment of any person is being terminated, those wages should be paid within two days of the date of termination; and

the employer should pay the wages in cash, ie in current coins or currency notes. However wages may also be paid either by cheque or by crediting in employee’s bank account after obtaining written consent.

The employer is bound to pay to every employee engaged by him wages at a rate not less than the minimum rates of wages fixed for that class of employees without making any deduction (except as permitted under the Payment of Wages Act). The employees are entitled to the minimum wages at all times and under all circumstances.

The empoyer must pay compensation for an accident suffered by an employee during the course of employment and in accordance with the Act. The employer must submit a statement to the Commissioner (within 30 days of receiving the notice) giving the circumstances attending the death of a worker as result of an accident and indicating whether the employer is liable to deposit any compensation for the same. It should also submit an accident report to the Commissioner within seven days of the accident.

The employer must pay its and the employees’ contributions and administrative charges as required under the Act and schemes. Financial difficulty is no excuse for non-payment. The contribution has to be made irrespective of the fact whether wages are paid to the employee due to lockout, strike, or other related reason. Employer must furnish the necessary returns to the Provident Funds Commissioner.