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Labour and Employment Department
POLICY NOTE - 2006 - 2007
Demand No. 32
INTRODUCTION
The broad spectrum of policy of Labour and Employment includes maintenance of harmonious industrial relations coupled with positive thrust in social security and labour welfare; strict enforcement of labour laws to ensure better working and living conditions of labour; administration of Factories Act, 1948 and providing institutionalized industrial training in modern skills to keep pace with emerging demands in industry to make youth employable and to give placement to job seekers as well as market information on the job situation through a vast network of Employment Exchanges.
Commissionarate of Labour enforces a plethora of labour laws to protect the rights and the welfare of the workers. The role of the Government is to aid in maintaining harmonious relationship between labour and management so that there is a conducive atmosphere for achieving the objective of growth and prosperity for both the employers and the workers. This role is played through a delicate mechanism of intervention at the appropriate time to conciliate and settle industrial disputes.
Policy of the Government under the leadership of Hon’ble Chief Minister Dr. Kalaignar is to have special focus on “Labour Welfare”. Unorganized sector is a major component of labour force. To ensure their welfare, Government have decided to constitute separate Welfare Boards for certain employments.
The Inspectorate of Factories does the registration of factories coming under the Factories Act, 1948 and carries out inspections to ensure the safety, health and welfare of the workers working in registered factories and also enforces the provision of Minimum Wages Act, 1948. The enforcement of prohibition of child labour in factories is implemented under the Factories Act, 1948.
The vocational training system seeks to provide training for developing the skills of those entering the labour force. Two major resources for such training are the Industrial Training Institutes (ITIs) and the Industrial establishments. The Craftsmen training scheme ensures training of skilled craftsmen with the vast network of Government I.T.I.s throughout Tamil Nadu. Apprenticeship training is provided under the Apprentices Act, 1961, to the passed out trainees in Industrial establishments to expose them in specific areas of skills in industries. The scheme of upgradation of ITIs into Centre of Excellence is implemented in Tamil Nadu. The main thrust of the programme is to provide appropriate infrastructure equipments and updated syllabi to the new trade introduced in these ITIs. This scheme will cater to the skill requirement of the industries in the particular areas by organizing multi skilled courses on modular pattern.
To cater to the needs of the job seekers, every district has one Employment Exchange each besides various special offices in the State for the purpose of the Employment to the Professionals, Executives, Unskilled persons, Physically challenged persons, Scheduled Castes and Scheduled Tribes. Overseas Manpower Corporation Limited is exclusively functioning to assist the job seekers in securing suitable placement abroad. There are large numbers of educated unemployed youth registered with employment exchanges and waiting for employment. To mitigate their suffering, an unemployment assistance scheme will be implemented by the Government.
CHAPTER 1
INDUSTRIAL RELATIONS
1.1. The Government of Tamilnadu has determined to create a conducive atmosphere for harmonious industrial relations between the workmen and the Management, to pave the way for faster economic growth through industrial development. Due to globalization and liberalization of trade policy, the prime need of the hour is to maintain healthy and a competitive industrial climate to attract more foreign investments. This congenial atmosphere will encourage and attract young entrepreneurs to start industries and to generate employment opportunities.
LABOUR COURTS
1.2. Labour Courts adjudicate on matters specified in the Second Schedule to the Industrial Disputes Act, 1947. There are 10 Labour Courts in the State.
1.3. There is also an Industrial Tribunal with its Head quarters at Chennai. The Industrial Tribunal adjudicates on matters specified in the Second and Third Schedule to the Industrial Disputes Act, 1947.
LOK ADALAT
1.4. For expeditious settlement of workmen’s claims pending under the Workmen’s Compensation Act, 1923 in an expeditious and effective manner, the Labour Department in co-ordination with the Tamil Nadu State Legal Services Authority has constituted the Lok Adalat.
CHAPTER 2
ENFORCEMENT
2.1 The object of any legislation or welfare measure can be achieved only when the provisions of the respective Statutes are enforced in letter and sprit. The prime duty of the enforcement officials of this Department is to persuade the parties concerned to achieve the objects enshrined in such Statutes or to launch prosecution for non compliance. With this object in mind, this Department acts judiciously to ensure that the workers enjoy the benefits under various Labour Enactments. Certain Labour Laws enforced by the Labour Department are mentioned below:-
- 1. The Tamil Nadu Shops and Establishments Act, 1947
- 2. The Tamil Nadu Catering Establishments Act, 1958
- 3. The Tamil Nadu Industrial Establishments (National and Festival Holidays) Act, 1958
- 4. The Payment of Wages Act, 1936
- 5. The Contract Labour (Regulation and Abolition) Act, 1970
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The Tamil Nadu Industrial Establishment (Conferment of Permanent Status to Workmen ) Act, 1981
- 7. The Standards of Weights and Measures (Enforcement) Act,1985
- 8. The Standards of Weights and Measures (Packaged Commodities) Rules,1977
- 9. The Beedi and Cigar Workers (Conditions of Employment) Act, 1966
- 10. The Motor Transport Workers Act, 1961
- 11. The Working Journalists and Other Newspaper Employees (Conditions of Service and Miscellaneous Provisions) Act, 1955
- 12. The Industrial Employment (Standing Orders) Act, 1946
- 13. The Trade Unions Act, 1926
- 14. The Plantations Labour Act, 1951
CHAPTER 3
MINIMUM WAGES
3.1. To ensure the Minimum Wages, an important “Safety Net” has been enacted in 1948. As many as 90 Employments have been included in the schedule to the Minimum Wages Act, 1948.
3.2 9 Regional Deputy Commissioners of Labour have been notified as Authorities to decide on the claim petitions under Section 20(1) of the Minimum Wages Act.
CHAPTER 4
SOCIAL SECURITY
4.1 Social Security for the workers is an important ingredient of Labour Welfare Policy. The following Acts are implemented in order to safeguard the social security of the workers :-
- 1. The Workmen’s Compensation Act, 1923
- 2. The Payment of Gratuity Act, 1972
- 3. The Payment of Bonus Act, 1965
- 4. The Maternity Benefit Act, 1961
- 5. The Tamil Nadu Payment of Subsistence Allowance Act, 1981
- 6. The Equal Remuneration Act, 1976
CHAPTER 5
INTEGRATED HOUSING SCHEME FOR BEEDI WORKER’S IN TAMILNADU
5.1 The “Integrated Housing Scheme for Beedi workers” of the Government of India is being implemented in Tamil Nadu. As per this Scheme, Government of India provides a maximum subsidy of Rs.40,000/- or 50% of the cost of construction of a house whichever is less. In addition to that, the State Government pays Rs.5,000/- per house as its subsidy.
5.2 Government of India have since revised the Scheme and renamed it as “Revised Integrated Housing Scheme for Beedi Workers 2005”. Now, according to the new Scheme 2,339 beneficiaries have been identified in various Districts of Tamilnadu
CHAPTER 6
ERADICATION OF CHILD LABOUR IN TAMILNADU
6.1. Child Labour eradication is one of the priority agenda of the Government. To achieve this objective, coordinated action for enforcement of laws, rescue and education of child workers and generation of social attitudes to oppose child labour are needed.
6.2. The State Action Plan aims at eradicating Child Labour in hazardous employment as well as in non-hazardous employment.
SURVEY ON CHILD LABOUR
6.3. During the year 2005, the survey conducted by Sarva Shiksha Abhiyan Scheme had revealed the existence of 25,679 child labourers only as against 70,344 child workers in 2003 and 46,153 in 2004.
NATIONAL CHILD LABOUR PROJECTS
6.4. National Child Labour Projects which are funded by Government of India are functioning in 12 Districts viz.,Thoothukudi, Pudukkottai, Tiruchirappalli, Coimbatore, Salem, Vellore, Dharmapuri, Tirunelveli, Chennai, Erode, Dindigul and Theni Districts. National Child Labour Project is implemented under the Chairmanship of the District Collector.
FUNCTIONING OF SPECIAL SCHOOLS
6.5. 17,472 child labourers are presently studying in 454 special schools. They are run by reputed Non-Governmental Organisations. The children studying in the special schools are supplied with books, note books, writing materials, uniform and noon meal. A stipend of Rs.100/- per month is given to every child. Regular health check-up is undertaken by the Health Department for these students. The students studying in special schools under this project are mainstreamed into formal schools every year.
STATE CHILD LABOUR REHABILITATION-CUM-WELFARE SOCIETY
6.6. A State Child Labour Rehabilitation cum Welfare Society is functioning in the State and responsible for implementing the Action Plan. The State Child Labour Rehabilitation cum Welfare Society was formed and registered under the Societies Registration Act. The Commissioner of Labour is the Chairman of the Society and the Additional Commissioner of Labour is the Secretary of the Society.
ENFORCEMENT
6.7. The provisions prohibiting employment of children through various labour enactments are effectively implemented in the State by the Department of Labour and Inspectorate of Factories
DISTRICT LEVEL COMMITTEE
6.8 District Child Labour Prevention Squads have been formed in all the districts and joint raids conducted by these squads. Apart from this, District Level Committees were formed to eradicate child labour in hazardous occupations, under the chairmanship of the District Collector in all the districts to accelerate the enforcement. So far, due to the efforts of the District Committees, 1664 children were rescued and 1108 prosecutions launched and 861 children were admitted in regular special schools.
AWARENESS GENERATION
6.9. Brochures, booklets, posters and stickers have been printed and published. Huge hoardings in buses and in public places erected for generating awareness to combat child labour.
”Anti Child Labour Day” is observed on 12th June every year. A bi-monthly magazine named ‘Kuruthu’ in Tamil is published to highlight child labour eradication activities and rights of the child. A web site www.tnchildlabour.tn.gov.in exclusively on child labour has been established.
BEST COLLECTOR AWARD
6.10. A State Award is given to the District Collectors whose performance in eradicating child labour is exemplary.
ROAD MAP FOR ERADICATION OF CHILD LABOUR
6.11. A Road Map for declaring certain districts as ‘Child Labour Free’ was drawn during the State Authority Meeting and time line was fixed for each district to declare the districts as ‘Child Labour Free’. So far District Collectors from 10 districts have sent their proposals to declare their district as child labour free.
INDUS PROJECT
6.12. The Government of India and the Department of Labour, United States of America, had signed a joint agreement to fund the project namely the INDUS PROJECT.
This project aims to identify children working in hazardous occupations and to admit them into formal/special schools and impart vocational training to them and is implemented in five districts, viz., Kancheepuram, Namakkal, Tiruvallur, Tiruvannamalai and Virudhunagar Districts. 216 Transitional Education Centres are functioning and 8595 rescued children have been admitted in the Transitional Educational Centres. 71 Vocational Training Centres are functioning and children in the age group from 13 years to 17 years are undergoing training in these centers.
CHAPTER 7
WELFARE BOARDS
TAMIL NADU LABOUR WELFARE BOARD
7.1. Tamilnadu Labour Welfare Board was constituted under the provision of Tamil Nadu Labour Welfare Fund Act, 1972 and is functioning with effect from the year 1975. It has been executing several Labour Welfare Schemes for the benefits of workers and their dependants.
TAMIL NADU LABOUR WELFARE FUND
7.2. The Tamil Nadu Labour Welfare Board is receiving contributions from the employers of factories, plantations, motor transport undertakings, shops and catering establishments. The employees of the above establishments are contributing Rs.5/- per year per head and Employers are contributing Rs.10/- per worker per year. The Government of Tamil Nadu is contributing an amount equal to the amount of employees contribution.
7.3 The Board receives fine amount imposed by the Courts and also 90% of compounding fees imposed by the Labour Department against the Employers for violation of Labour Acts and Rules.
7.4 The Board implements the following schemes.
TAILORING CENTRES
7.5 In all the Welfare Centres, tailoring classes are conducted for the benefit of women dependants. A sum of Rs.80/- is given to each trainee per month and examination fees for higher grade examination is also borne by the Board.
CRECHES
7.6 Crèches for the benefit of working mothers are maintained in the Welfare Centres. So far, 2,197 children in the age group of 2 to 5 of workers have been admitted in the creches. Nutritious mid-day meals and milk are provided daily to the children. Eggs and fruits are also given twice a week. Two sets of Terri cotton are also supplied to the children once in a year. The children also undergo Medical Checkup by doctors periodically. Basic education is also imparted by trained Balasevikas. So far, a sum of Rs.6,48,073/- has been incurred for the above said purpose.
READING ROOM
7.7. Two weekly Tamil magazines and two Tamil dailies are provided in the reading rooms in the Welfare Centres.
SCHOLARSHIP
7.8. Scholarship for studying in Higher Secondary and Professional courses is given to the children of subscribing workers.
EDUCATION INCENTIVE
7.9. The Tamil Nadu Labour Welfare Board sanction cash award of Rs.1,000 /- to students who stand first in 10th Standard and 12th Standard in Public Examinations in every district. An amount of Rs.500/- is awarded to the Students who stand second in 10th Standard and 12th Standard in public examinations in every district.
BOOK ALLOWANCE SCHEME
7.10. The Board gives book allowances to children of the workers. Besides, students who are trained in typewriting & shorthand are given fee.
SPECTACLES
7.11. The Tamil Nadu Labour Welfare Board is reimbursing the cost of spectacles to the extent of Rs.400/- per worker.
HEARING AID, THREE WHEELER AND ARTIFICIAL LIMB
7.12. Reimbursement of cost of Hearing Aid up to a sum of Rs.1,000/- to the workers whose hearing is impaired, is given.
FUNERAL EXPENSES
7.13. Assistance towards funeral expenses is now given at Rs.1,500/-.
T.B.WARDS
7.14. The Tamil Nadu Labour Welfare Board has constructed separate T.B. wards with Beds in Tambaram, Asaripallam, Tirupur, Austinpatti and Kilpennathur sanatoriums for the benefit of the workers.
HOLIDAY HOMES
7.15. The Tamil Nadu Labour Welfare Board has constructed Holiday Homes in Mamallapuram, Courtallam, and Valparai for the stay of the workers along with their family members at a very nominal rent.
At Chennai, a Rest House namely Jeeva Illam in DMS Campus at Teynampet has been constructed specially for the stay of Trade Union Leaders who come for conciliation talks, at a very nominal rent.
MAGAZINE FOR WORKERS
7.16. A monthly magazine named “Uzhaippavar Ulagam” is published by the Board which carries Court Judgements, Labour Acts, Question and Answers, Index of Consumer Price for the benefit of the workers, employers and also the public. At present 3,968 subscribers are there.
THE TAMILNADU CONSTRUCTION WORKERS WELFARE BOARD
7.17. The Tamil Nadu Construction Workers Welfare Board is functioning with effect from 1994, under the chairmanship of Commissioner of Labour.
7.18. Identity cards have been issued to all the registered construction workers free of cost. Total No.of registered workers is 11,08,675.
SCHEMES IMPLEMENTED BY THE BOARD
GROUP PERSONAL ACCIDENT INSURANCE SCHEME
7.19. All registered construction workers have been insured under Group Personal Accident Insurance Scheme. Every year, the renewal of premium to the insurance company is paid by the Board.
In the event of death of a registered construction worker in an accident, a sum of Rs.1 Lakh is paid to the nominee of the deceased. A compensation is paid upto Rs.1 lakh depending upon the percentage of loss of limbs, eyes, etc.
ASSISTANCE FOR EDUCATION
7.20 Educational assistance of Rs.1,000/- is paid to the daughter of a registered construction worker for studying 10th Std., 11th Std, and 12th Std., and Rs.1,000/- and Rs.1,500/- to the son/daughter who passes 10th Std and 12th Std., respectively.
7.21. Assistance ranging from Rs.1,000/- to Rs.4,000/- is paid to the children for doing professional courses, degree and post graduate courses for day scholars and assistance ranging from Rs.1,200/- to Rs.6,000/- is paid to the students staying in hostels.
ASSISTANCE FOR MARRIAGE
7.22. Marriage Assistance of Rs.2,000/- is paid to the son or daughter of a registered Construction worker and to the marriage of registered construction worker himself / herself.
ASSISTANCE FOR MATERNITY / MISCARRIAGE / TERMINATION OF PREGNANCY
7.23. A sum of Rs.4,000/- is paid as assistance to a registered woman construction worker for delivery of a child or for the miscarriage of pregnancy or for the termination of pregnancy.
ASSISTANCE TO FAMILY IN CASE OF NATURAL DEATH
7.24. In the event of death of a registered construction worker, a sum of Rs.15,000/- is paid as assistance to his/her nominee.
ASSISTANCE FOR FUNERAL EXPENSES
7.25. In the event of death either natural or accident of a registered construction worker, the nominee is paid, a sum of Rs.2,000/- to meet the funeral expenses.
ASSISTANCE FOR REIMBURSEMENT OF COST OF SPECTACLES
7.26. A sum Rs.500/- each is paid to 2000 workers every year towards reimbursement of cost of spectacles.
PENSION
7.27. Pension of Rs. 200/- per month is being paid to workers who have been members of the Board continuously for 5 years and completed the age of 60.
TAMILNADU MANUAL WORKERS SOCIAL SECURITY AND WELFARE BOARD
7.28. The Tamil Nadu Manual Workers Social Security and Welfare Scheme 2001 is made applicable to 60 employments out of 67 employments mentioned in the Schedule to the Tamil Nadu Manual Workers (Regulation of Employment and Conditions of Work) Act, 1982.
SCHEMES IMPLEMENTED BY THE BOARD
GROUP PERSONAL ACCIDENT INSURANCE SCHEME
7.29 All registered manual workers have been insured under Group Personal Accident Insurance Scheme. Every year, the renewal of premium to the insurance company is paid by the Board.
In the event of death of a registered manual worker in an accident, a sum of Rs.1 Lakh is paid to the nominee of the deceased. A compensation is paid upto Rs.1 lakh depending upon the percentage of loss of limbs, eyes, etc.
ASSISTANCE FOR EDUCATION
7.30 Educational assistance of Rs.1,000/- is paid to the daughter of a registered manual worker for studying 10th Std., 11th Std, and 12th Std., and Rs.1,000/- and Rs.1,500/- to the son/daughter who passes 10th Std and 12th Std., respectively.
Assistance ranging from Rs.1,000/- to Rs.4,000/- is paid to the children for doing Professional Courses, Degree and Post Graduate Courses for day scholars and assistance ranging from Rs.1,200/= to Rs.6,000/= is paid to the students staying in hostels.
ASSISTANCE FOR MARRIAGE
7.31. Marriage Assistance of Rs.2,000/- is paid to the son or daughter of a Registered manual worker and to the marriage of registered manual worker himself / herself.
ASSISTANCE FOR MATERNITY / MISCARRIAGE / TERMINATION OF PREGNANCY
7.32. A sum of Rs.4,000/- is paid as assistance to a registered woman manual worker for delivery of a child or for the miscarriage of pregnancy or for the termination of pregnancy.
ASSISTANCE TO FAMILY IN CASE OF NATURAL DEATH
7.33. In the event of death of a registered manual worker, a sum of Rs.15,000/- is paid as assistance to his/her nominee.
ASSISTANCE FOR FUNERAL EXPENSES
7.34. In the event of death either natural or accident of a registered manual worker, the nominee is paid, a sum of Rs.2,000/- to meet the funeral expenses.
ASSISTANCE FOR REIMBURSEMENT OF COST OF SPECTACLES
7.35. A sum of Rs.500/- each is paid to 2000 workers every year towards reimbursement of cost of spectacles.
FORMATION OF SEPARATE WELFARE BOARDS FOR CERTAIN EMPLOYMENTS
7.36 In Tamil Nadu, two Welfare Boards viz. (i) Tamil Nadu Construction Workers Welfare Board and (ii) Tamil Nadu Manual Workers Social Security and Welfare Board are presently functioning for unorganised workers.
- 7.37 The members of the Tamil Nadu Manual Workers Social Security and Welfare Board are from various employments. The Government has now decided to form separate Welfare Boards for certain employments. Accordingly separate Welfare Boards are being formed for the following employments:
- (i) Tamil Nadu Auto Rickshaw and Taxi Drivers Welfare Board
- (ii) Tamil Nadu Tailoring Workers Welfare Board
- (iii) Tamil Nadu Hairdressers Welfare Board
- (iv) Tamil Nadu Washermen Welfare Board
- (v) Tamil Nadu Palm Tree Workers Welfare Board
- (vi) Tamil Nadu Handicraft Workers Welfare Board
- (vii) Tamil Nadu Handlooms and Silk Weaving Workers Welfare Board
- (viii) Tamil Nadu Foot Wear and Leather Goods Manufactory and Tannery Workers Welfare Board.
- (ix) Tamil Nadu Artists Welfare board
- (x) Tamil Nadu Goldsmith Welfare Board.
PENSION SCHEME FOR UNORGANISED WORKERS
7.38 The Government have decided to introduce pension scheme to all the workers who have registered with all the Manual Workers Welfare Boards at the rate of Rs.300/- per month. Accordingly, a worker who has registered with the Board for a minimum of 5 years and attained the age of 60 years is eligible to get pension.
CHAPTER 8
TAMILNADU INSTITUTE OF LABOUR STUDIES
8.1 The Tamilnadu Institute of Labour Studies was established by the Government of Tamilnadu in 1973 for training the officers of the Labour Department. The Hon'ble Minister for Labour, Government of Tamilnadu is the Chairman of the Governing Committee.
8.2. This Institute periodically conducts Training Programmes, Seminars, Refresher Courses, Orientation Programmes, etc. to suit the needs of supervisory and managerial personnel of private and public sector industries, trade unionists, officials of Labour and Factories Department.
8.3. The Institute has augmented its functions later on and conducts courses in Labour Management, besides doing research activities in the field of personnel management.
8.4 This Institute has also taken up an evaluation study of the proposal for declaration of Child Labour Free District in Sivagangai, Pudukkottai and Villupuram Districts and submitted the report to the Commissioner of Labour.
8.5 A part time one year P.G. Diploma Course in Labour Administration (PGDLA) and full time academic courses viz. B.A. (Labour Management) / M.A. (Labour Management), affiliated to University of Madras, are offered. The University of Madras has also recognised this Institute as a Research Institute to conduct both part-time and full-time Ph.D. programmes.
8.6 The Malaysian Government has recognised this Institute as the Training Centre for conducting the Induction Course for the Indian Workers intending to go for work to Malaysia.

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