Maturity Model Of Labor Law

Maturity Model of Labour Law Compliances Project Guide: Mr. I D Guru Summer Interns 2008: Manoj Kumar

2007HR023 TISS Mumbai

Level-0

Level-1

Level-2

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Aditya Birla Group

Level-3

Acknowledgement: I would like to express my gratitude to my project guide Mr. I D Guru (Group Head-ER), who gave me an influential support to complete this project. I would like to thank Aditya Birla Group for giving me an opportunity to work on this project. It was a great learning experience, where I got the opportunity to observe labour law in practice, and prepare a maturity model of labour law compliances.

Manoj Kumar

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Contents:

Acknowledgement Introduction................................................................................................ ............................4 Objectives.................................................................................................. .............................5 Methodology............................................................................................... ...........................6 Act Descriptions.................................................................................................. ....................7  Factories Act, 1948

Maturity Model (labour compliances)...........................................................................11

law

 Safety, Health & Welfare Learning’s.................................................................................................. ...........................33

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Introduction: Aditya Birla Group: The Aditya Birla Group is India’s first truly multinational corporation. Global in vision, rooted in values, the group is driven by a performance ethic pegged on value creation for its multiple stakeholders. A US$ 28 billion conglomerate, with a market capitalisation of US$ 31.5 billion, it is anchored by an extraordinary force of 100,000 employees belonging to over 25 different nationalities. Over 50% of its revenue flow from its overseas operations. The group’s products and services offer distinctive customer solutions worldwide. Its 100 state of the art manufacturing units and sectoral services span 20 country- India, Thailand, Laos, Indonesia, Philippines, Egypt, Canada, Australia, China, USA, UK, Germany, Hungary, Brazil, Italy, France Luxembourg, Switzerland, Malaysia, and Korea. The ABG is a dominant player in all of the sectors in which it operates. Among these are viscose staple fibre, metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers, insulators, financial services, telecom, retail, BPO and IT services. The group has been adjudged the best employer in India and top 16 in Asia by the Hewitt-economic Times and the wall street journal study 2007. Beyond Business: •

Works in 3700 village

•

Reaches out to 7 million people annually through the Aditya Birla Centre for Community Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla

•

Focuses on health care, education, infrastructure and espousing social causes

•

Runs 45 school and 18 hospitals

•

Transcends the conventional barriers of business to send out a message that “we care”

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sustainable

livelihood,

Objectives: Objective of this project is to formulate a maturity model for safety, health & welfare under the factories act, 1948

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Methodology:

Getting the observation of all Labour Law

Detailed study of Safety, Health & Welfare under the Factories Act, 1948

Identifying various parameter for Safety, Health & Welfare

Accessing various degree of compliances against each parameters

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Act Descriptions: FACTORIES ACT:

This is one of the earliest welfare legislation. The object is to secure to workers health, safety, welfare, proper working hours and other benefits. It was observed that Factories Act is enacted primarily with object to of protecting workers employed in factories against industrial and occupational hazards. The Act requires that workers should work in healthy and sanitary conditions and for that purpose it provides that precautions should be taken for safety of workers and prevention of accidents. Incidental provisions have also been made. First Factories Act was passed in 1880. Factories Act, 1948 was engrafted in the Statute where emphasis had been on the welfare of the workers. Factory Inspectors have been placed with heavy responsibility on them. The Act undoubtedly is welfare legislation and can be termed to be a complete code in itself. In this case, it was held that if a workman is found working during period not notified beforehand, prosecution can be launched. 'Factory' means any premises where 10 or more workers are working and a manufacturing process is carried out with aid of power (20 if manufacture is without aid of power). ‘Manufacturing process’ means process of altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing or otherwise treating or adopting any article or substance. It also includes- pumping oil, water, sewage or any other substance- Generating, transforming or transmitting power- Composing, typing, printing- Constructing, repairing, breaking of ships or vessels- Preserving articles in cold storage- Worker means a person employed in any manufacturing process or cleaning or any work incidental to manufacturing process. It includes persons employed through contractor. 'Factory' should be licensed / registered with Chief Inspector of Factories (termed as Director of Industrial Health & Safety in some States). The Page 7 of 14

license / registration have to be renewed every year by paying prescribed fees. OCCUPIER OF THE FACTORY – ‘Occupier’ of a factory means the person who has ultimate control over the affairs of factory. It includes a partner in case of firm and director in case of a company. In case of Government Company, 'occupier' need not be a director. In that case, person appointed to manage affairs of the factory shall be ‘occupier’. Name of 'occupier' of the factory should be informed to Factories Inspector. The 'occupier' will be held responsible if provisions of Factories Act are not complied with. Besides 'occupier', name of 'Manager' should also be informed. Any change in name of Manager shall also be informed. DUTIES OF OCCUPIER – The occupier shall ensure, as far as possible, health, safety and welfare of workers while they are working in factory. DUTIES OF EVERY MANUFACTURER – Every manufacturer or importer of an article or substance in factory shall design it in such a way that it is safe to use and carry. Adequate safety information about the article should be given. FACILITIES AND CONVENIENCES - The factory should be kept clean. There should be arrangement to dispose of wastes and effluents. Ventilation should be adequate. Reasonable temperature for comfort of employees should be maintained. Dust and fumes should be controlled below permissible limits. Artificial humidification should be at prescribed standard level. Overcrowding should be avoided. Adequate lighting, drinking water, latrines, urinals and spittoons should be provided. Adequate spittoons should be provided. WELFARE - Adequate facilities for washing, sitting, storing cloths when not worn during working hours. If a worker has to work in standing position, sitting arrangement to take short rests should be provided. Adequate First aid boxes shall be provided and maintained. FACILITIES IN LARGE FACTORIES - Following facilities are required to be provided by large factories - Ambulance room if 500 or more workers are employed. Canteen if 250 or more workers are employed. It should be sufficiently lighted and ventilated and suitably located. 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. Safety Officer if 1,000 or more workmen are employed. Page 8 of 14

SAFETY - All machinery should be properly fenced to protect workers when machinery is in motion. Hoists and lifts should be in good condition and tested periodically. Pressure plants should be checked as per rules. Floor, stairs and means of access should be of sound construction and free form obstructions. Safety appliances for eyes, dangerous dusts, gas, and fumes should be provided. Worker is also under obligation to use the safety appliances. He should not misuse any appliance, convenience or other things provided. In case of hazardous substances, additional safety measures have been prescribed. [sections 41A to 41H]. Adequate fire fighting equipment should be available. Safety Officer should be appointed if number of workers in factory is 1,000 or more. WORKING HOURS - A worker cannot be employed for more than 48 hours in a week. Weekly holiday is compulsory. If he is asked to work on weekly holiday, he should have full holiday on one of three days immediately or after the normal day of holiday. 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. Notice of period of work should be displayed. 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. A workman cannot work in two factories. There is restriction on double employment. However, overtime wages are not payable when the worker is on tour. Total working hours including overtime should not exceed 60 in a week and total overtime hours in a quarter should not exceed 50. Register of overtime should be maintained. An employee working outside the factory premises like field workers etc. on tour outside headquarters are not entitled to overtime. 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. Shift change can be only after weekly or other holiday and not in between. RECORD OF WORKMEN - A register (muster roll) of all workers should be maintained. No worker should be permitted to work unless his name is in the register. Record of overtime is also required to be maintained. LEAVE - A worker is entitled in every calendar year annual leave with wages at the rate of one day for every 20 days of work performed in the Page 9 of 14

previous calendar year, provided that he had worked for 240 days or more in the previous calendar year. Child worker is entitled to one day per every 15 days. While calculating 240 days, earned leave, maternity leave upto 12 weeks and lay off days will be considered, but leave shall not be earned on those days. Leave can be accumulated upto 30 days in case of adult and 40 days in case of child. Leave admissible is exclusive of holidays occurring during or at either end of the leave period. Wage for period must be paid before leave begins, if leave is for 4 or more days. Leave cannot be taken for more than three times in a year. Application for leave should not normally be refused. [These are minimum benefits. Employer can, of course, give additional or higher benefits]. WAGES FOR OT AND LEAVE SALARY - 'Wages' for leave encashment and overtime will include dearness allowance and cash equivalent of any benefit. However, it will not include bonus or overtime. CHILD EMPLOYMENT - Child below age of 14 cannot 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 should be certified fit by a certifying surgeon. He cannot be employed during night between 10 pm to 6 am. 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. There are more restrictions on employment of female adolescent. Register of child workers should be maintained. DISPLAY ON NOTICE BOARD - A notice containing abstract of the Factories Act and the rules made there under, in English and local language should be displayed. Name and address of Factories Inspector and the certifying surgeon should also be displayed on notice board. NOTICE OF ACCIDENTS, DISEASES ETC - Notice of any accident causing disablement of more than 48 hours, dangerous occurrences and any worker contacting occupational disease should be informed to Factories Inspector. Notice of dangerous occurrences and specified diseases should be given. NO PUNISHMENT TO WELFARE OFFICER WITHOUT SANCTION - No punishment can be imposed on Welfare Officer without prior sanction of Chief Commissioner. However, a simple order of termination as per terms of appointment is not a ‘punishment’ and such termination order is valid. OBLIGATION REGARDING HAZARDOUS PROCESSES / SUBSTANCES Information about hazardous substances / processes should be given. Page 10 of 14

Workers and general public in vicinity should be informed about dangers and health hazards. Safety measures and emergency plan should be ready. Safety Committee should be appointed.

Maturity Model:

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Maturity Model of Labour Law Compliances: PARAMETE RS Safety

Level0 Point0

FENCING

21. FENCING OF MACHINERY. - (1) In every factory the following, namely, - (i) every moving part of a prime mover and every flywheel connected to a prime mover, whether the prime mover or flywheel is in the engine house or not; (ii) the headrace and tailrace of every water-wheel and water turbine; (iii) any part of a stock-bar which projects beyond the head stock of a lathe; and (iv) unless they are in such position or of such construction as to be safe to every person employed in the factory as they would be if they were securely fenced, the following, namely - (a) every part of an electric generator, a motor or rotary converter; (b) every part of transmission machinery; and (c) every dangerous part of any other machinery, shall be securely fenced by safeguards of substantial construction which shall be constantly maintained and kept in position while the parts of machinery they are fencing are in motion or in use : Provided that for the purpose of determining whether any part of machinery is in such position or is of such construction as to be safe as aforesaid, account shall not be taken of any occasion when - (i) it is necessary to make an examination of any part of the machinery aforesaid while it is in motion or, as a result of such examination, to carry out lubrication or other adjusting operation while the machinery is in motion, being an examination or operation which it is necessary to be carried out while that part of the machinery is in motion, or (ii) in the case of any part of a transmission machinery used in such process as may be prescribed (being a process of a continuous nature the carrying on of which shall be, or is likely to be, substantially interfered with by the stoppage of that part of the machinery), it is necessary to make an examination of such part of the machinery while it is in motion or, as a result of such examination, to carry out any mounting or shipping of belts or lubrication or other adjusting operation while the machinery is in motion, and such examination or operation is made or carried out in accordance with the provisions of sub-section (1) of section 22. (2) The State Government may by rules prescribe such further precautions as it may consider necessary in respect of any particular machinery or part thereof, or exempt, subject to such condition as may be prescribed, for securing the safety of the workers, any particular machinery or part thereof from the provisions of this section.

OF MACHINE RY

Level0 Point0 Not exist

Level-1 Point-5

Level-1 Point-5 _

Level-2 Point-8

Level-2 Point-8 _

Level-3 Point-10

Level-3 Point-10 Fencing Exist

22. WORK ON OR NEAR MACHINERY IN MOTION. - (1) Where in any factory it becomes necessary to examine any part of machinery referred to in section 21, while the machinery is in motion, or, as a result of such examination, to carry out - (a) in a case referred to in clause (i) of the proviso to sub-section (1) of section 21, lubrication or other Page 12adjusting of 14 operation; or (b) in a case referred to in clause (ii) of the proviso aforesaid, any mounting or shipping of belts or lubrication or other adjusting operation, while the machinery is in motion such examination or operation shall be made or carried out only by a specially trained adult male worker wearing tight fitting clothing (which shall be

AWARDE D POINTS

Defined

=100%

Manage d

>80% & <100%

Initial

>50 & <80%

0 Levels

<50%

Learning’s: Technical learning’s: The technicality of this project is all about the study & observations of labour law and its practices. And then prepare a Maturity Model of Labour Law Compliances; it is an actual technical learning’s which came up after the completion of the project, Page 13 of 14

Behavioural learning’s: Behavioural learning is a very comprehensive term in an organizational perspective, working as a summer interns in Group Human Resources at Aditya Birla Group, I have learned many behavioural things first the interaction with the students who came from the other Ivy League Bschools. The second and most important learning’s is interactions with the existing employees.

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