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Plant Safety & Labour Laws

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Industrial Safety in a plant or factory is a very important topic. This presentation covers the various industrial hazards and risks, their sources and remedies. Following that, we move on to the various laws and legislation regarding labours in an industry. We look at the history of labour laws in India, and discuss the main point of few important laws

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Plant Safety & Labour Laws

  1. 1. PLANT SAFETY AND LABOUR LAWS
  2. 2.  HAZARD is a substance/situation that poses a threat to life, health, property, or environment.  INDUSTRIAL HAZARD is a condition produced by an industry that may cause injury or death of personnel and loss of product or property.  RISK is a measure of possible damage in case of an accident from a known hazard.  SAFETY in simple terms means freedom from occurrence of accidents and loss of life. Layers of Protection
  3. 3. PLANT SAFETY OR INDUSTRIAL SAFETY INDUSTRIAL ACCIDENTS are caused by chemical, mechanical, civil, electrical or other process failures due to accident, negligence, or incompetence in an industrial plant causing damage to life and property. INDUSTRIAL SAFETY is defined as policies and measures put in place to ensure plant and factory workers’ protection from hazards that could cause injury. Reduction Control Eliminatio n Industrial Safety
  4. 4. INDUSTRIAL HAZARDS : CLASSIFICATION  FIRE HAZARD  PHYSICAL HAZARD  MECHANICAL HAZARD  ELECTRICAL HAZARD  CHEMICAL HAZARD
  5. 5. FIRE HAZARD CAUSE :  Overheating of electrical appliances  High surface temperatures  Sparking  Carelessness STEPS :  Raise alarm and Evacuate  Use staircases only  On encountering thick smoke, crawl, cover nose and mouth with wet cloth.
  6. 6. FIRE HAZARD
  7. 7. FIRE HAZARD Types of Fire Extinguishers
  8. 8. PHYSICAL HAZARD REASONS :  Negligence  Hurry  Lack of Maintenance STEPS to be taken :  Use of Personal Protection Equipment (PPE) at all times  Safety Training  Warning Labels
  9. 9. MECHANICAL HAZARD REASONS :  Insecurely fixed machines  Worn-out parts  Dangerous parts (sharp edges etc.)  Improper maintenance SAFETY MEASURES :  Guarding and Fencing of moving machine parts  Emergency Shutdown button within reach of operator  Turnkey system for cleaning and repairing  Safe Distance from machine
  10. 10. ELECTRICAL HAZARD CAUSES :  Contact with power lines  Grounding is missing or discontinuous  Equipment not being used under prescribed conditions  Damaged insulations REMEDY :  Safer power distribution systems to automatically detect failure and notify operators  Regular checking of all equipment  Safety trainings, safe work practice & warning labels  Proper cooling arrangement for heat- producing electrical equipment
  11. 11. CHEMICAL HAZARD Chemical Hazards may be caused by inhaling toxic fumes, or direct contact with corrosive/carcinogenic chemicals. EFFECTS :  Skin Burn  Irritation in windpipe  Ulcer in hand, nose, etc.  Cancer STEPS :  Personal Protective Cloths, Respirators  Leak-proofing  Pressure regulators and relief valves  Colour coded piping and storage  Warning labels
  12. 12. PERSONAL PROTECTIVE EQUIPMENTS  PPE is designed to protect employees from serious workplace injuries or illnesses.  It includes various devices and garments, such as : Hand Protection
  13. 13. PERSONAL PROTECTIVE EQUIPMENTS  PPE is designed to protect employees from serious workplace injuries or illnesses.  It includes various devices and garments, such as : Hand Protection Helmets
  14. 14. PERSONAL PROTECTIVE EQUIPMENTS  PPE is designed to protect employees from serious workplace injuries or illnesses.  It includes various devices and garments, such as : Hand Protection Helmets Eye Protection
  15. 15. PERSONAL PROTECTIVE EQUIPMENTS  PPE is designed to protect employees from serious workplace injuries or illnesses.  It includes various devices and garments, such as : Hand Protection Helmets Eye Protection Ear Plugs
  16. 16. PERSONAL PROTECTIVE EQUIPMENTS  PPE is designed to protect employees from serious workplace injuries or illnesses.  It includes various devices and garments, such as : Hand Protection Helmets Eye Protection Ear Plugs Foot Protection
  17. 17. PERSONAL PROTECTIVE EQUIPMENTS  PPE is designed to protect employees from serious workplace injuries or illnesses.  It includes various devices and garments, such as : Hand Protection Helmets Eye Protection Ear Plugs RespiratorsFoot Protection
  18. 18. PERSONAL PROTECTIVE EQUIPMENTS  PPE is designed to protect employees from serious workplace injuries or illnesses.  It includes various devices and garments, such as : Hand Protection Helmets Eye Protection Ear Plugs RespiratorsFoot Protection
  19. 19. WHAT’S LABOUR LAW ?  Labour Law is the “Body of Laws, Administrative Rulings, & Precedents” which address the Relationship between & among “Employers, Employees & Labour Organizations”, often dealing with issues of Public Law  The Goal of Labour Laws is to bring both “Employer & Employee” on the same Level, thereby mitigating the differences.  The “Factories Act” was first introduced in 1883 by the British Parliament. Thus we received the stipulation of Eight (08) Hours of work, abolition of Child Labour, Restriction of Women in Night employment, and the introduction of “Overtime Wages” for work beyond Eight Hours.  India has various Labour Laws, such as Resolution of Industrial Disputes, Working Conditions, Labour Compensation, Insurance, Child Labour, Equal Remuneration etc.
  20. 20. CLASSIFICATION LabourLaws Industrial Relations Wages Working Hours, Conditions Equality, Empowerment Social Security
  21. 21. LABOUR POLICY IN INDIA “Labour Policy in India” has been evolving in response to specific need to suit requirements of planned “Economic Development & Social Justice”. Labour Policies are devised to maintain Economic Development, Social Justice, Industrial Harmony & Welfare of Labour in the country. Highlights of Labour Policy:-  Creative Measures to attract Public & Private Investment.  Creating more Jobs with New Social Security Schemes for workers.  Industrial Relations committees and Empowered bodies of experts to suggest required changes.  Streamlining the mechanism of Labour Judiciary and functioning of Labour Department.  Restructuring in functioning of Employment Exchanges with modern Technology.
  22. 22. IMPORTANT ACTS OF INDIAN LABOUR LAW  The Apprentices Act – 1961  The Payment of Wages Act -1936  The Workmen's Compensation Act -1923  The Factories Act -1948  The Industrial Disputes Act – 1947  The Employees PF & MP Act – 1952  The Employees State Insurance Act – 1948  The Maternity Benefit Act – 1961  The Payment of Bonus Act – 1965  The Payment of Gratuity Act - 1972
  23. 23. THE APPRENTICES ACT - 1961 Objective :- Promotion of New Skilled Manpower, Improvement / Refinement of old skills through theoretical & practical training Duties of “Apprentice” :  The candidate is not less than 14 years of age, & satisfies standards of “Education & Physical Fitness” as may be prescribed.  Duration of Training :- May vary from 6 months to 4 years depending on the trade, as prescribed in rules.  Has to carry out all lawful orders of employer with contractual obligations.  Working Hours : 42 – 48 hours/week, but not between 10 pm to 6 am unless approved by “Apprenticeship Advisor”. Duties of “Employer” :  The Apprentice appointed has to execute a ‘Contract of Apprenticeship’ with the Employer, registered with Apprenticeship Adviser. If Apprentice is Minor, Agreement should be signed by his Guardian.  Leaves :- Casual Leave – 12 days, Medical Leave – 15 days & Extraordinary Leave – 10 days each year.  The “Employer” must provide the Training in his Trade, & ensure that a duly qualified person is in charge to carry out all Legal Contractual ObligationsMinimum Payment to Apprentice (w.e.f. 23rd Mar 2011) Graduate Apprentices 3560/- p.m. Sandwich Course (Students from Degree Inst.) 2530/- p.m. Technician Apprentices 2530/- p.m. Sandwich course (Students from Diploma Inst.) 2070/- p.m. Technician (Vocational) Apprentices 1970/- p.m.
  24. 24. PAYMENT OF WAGES ACT – 1936 Objective :- A remedy against unauthorized deductions made by the “Employer” or unjustified delay in payment of wages.  “Wages” : all Remuneration expressed in terms of Money and include Remuneration payable under any Award or Settlement, Overtime Wages, Wages for Holiday & any sum payable on Termination of Employment. However, it does not include “Bonus”, value of House Accommodation, Contribution to PF & ESI, Traveling Allowance, or Payment of Gratuity. Applicability of the Act :-  All Factories, Industrial Establishment, Tramway/ Motor Transport Service engaged in carrying Passengers or Goods. Air Transport, Dock, or Jetty, Inland Vessel, Mines, Quarry, Oil-Field, Plantation, Workshop or other Establishment, etc.
  25. 25. GUIDELINES OF THE ACT :  If the Employee strength is Less then 1000, then Wages shall be paid before the expiry of the 07th Day of the following month, or else, before the expiry of the 10th Day of the following month.  Deduction from Wages :- Deduction on Account of Absence, Fines, Accommodation, Recovery of Advance, Loans given, Income Tax, PF, ESI contribution, LIC premium, amenities, by order of Court etc. is permitted. The Maximum Deduction can be 50% of Monthly wages which may be extended up to 75% if deduction is partly made for payment to Co- operative Society.  Deduction of Fines: - The Maximum deduction as Fines from Wages should not exceed 3% during the same wage period. Record of Fines should be maintain in Fine Register  Wages can be paid on Daily, Weekly, Fortnightly or Monthly basis, but not more than a month. It should be paid by cash, cheque or in employee’s bank a/c with employee’s written authorization.  Records Maintenance: The Employer has to maintain Various Registers, i.e. Register of Fines, Register of Deduction, Register of Advance, Register of Wages, Master Roll-cum-Register of Wages & Annual Return. The attendance of the employee shall be marked not later than one hour after employee starts work for the day.  Penalty to Employer: Conviction for any Offence & Again Guilty of Contravention of same provision  Imprisonment not less than 1 month, extendable up to 6 months and fine not less than Rs.2000, extendable up to Rs.15000.
  26. 26. THE FACTORIES ACT -1948 Objective :  To ensure the Safeguard the interest of workers and Protect them from exploitation  The Act prescribes certain standards with regard to Safety, Welfare and Working Hours of workers, apart from other provisions Applicability :  Any premises whereon 10 or more persons with the aid of power or 20 or more workers working without aid of power, wherein Manufacturing process is being carried on. History :  The Factories Act 1948 was an “Act of Parliament” passed in the “United Kingdom” by the Labour Government of Clement Attlee, with the intention of safeguarding the health of workers and issuing extensive new building regulations.
  27. 27. DUTIES OF EMPLOYER Necessary Facilities :  The Factory should be kept Clean always. There should be arrangement to Dispose of Wastes and effluents.  Reasonable temperature, pressure and humidity for comfort of employees should be maintained.  Adequate Lighting, Drinking Water, Latrines, Urinals should be provided.  Proper Ventilation for Air & Light inside the Factory Building.  Adequate Facilities for Washing, Sitting, Storing of cloths during Off Working hours.  Adequate First Aid Boxes shall be provided & Maintained with all required medicines. Safety Measures :  All Machinery should be properly Fenced  Hoists and Lifts should be in good condition & tested periodically.  Floor, Stairs & means of access should be of sound construction & free from obstructions.  Safety appliances for Eyes, Dangerous Dusts, Gas, Fumes should be provided.  In Case of Hazardous substances, additional safety measures have been prescribed.  Adequate Fire Fighting Equipment should be available.  Safety Officer should be appointed if number of workers in factory are 1,000 or more.
  28. 28. GUIDELINES Overtime Wages :-  If a worker works beyond 09 hours a day or 48 hours a week, overtime wages (double the rate of wages) are payable. Overtime wages are not payable when the worker is on tour.  Total working hours including overtime should not exceed 60 hours in a week and total overtime hours in a quarter should not exceed 50 hours.  Register of overtime should be maintained. Annual Leave :-  A worker having worked for 240 days @ one leave for every 20 days accumulates leave for 30 days. Display on Notice Board:-  A Notice containing abstract of the Factories Act & the rules thereunder, with Name & Address of Factories Inspector & Certifying Surgeon in English & Regional Language should be displayed on Notice Board. Notice of Accidents, Diseases Etc.,:-  Notice of Any Accident causing Disablement of more than 48 hours, Dangerous Occurrences & any worker contacting Occupational Disease should be informed to Factories Inspector. Obligation Regarding Hazardous Processes:-  Information about hazardous substances / processes should be given. Workers and General Public in vicinity should be informed about Dangers & Health Hazards.  Safety Measures & Emergency plan should be ready. Safety Committee should be appointed. Penalties to the Employer:-  If there is Any Contravention of any of the Provisions of this Act, “Employer & Manager” will be Punishable with Imprisonment upto 2 years or fine upto Rs 1,00,000 or both.
  29. 29. THE INDUSTRIAL DISPUTES ACT - 1947 Definitions:  Works Committee:- Joint Committee with equal number of Employers & Employees’ Representatives for discussion of certain common problems.  Conciliation :- Is an attempt by a Third Party in helping to settle the disputes.  Adjudication:- Labour Court, Industrial or National Tribunal to Hear & Decide Dispute. Objective :- Investigation & Settlement of “Industrial Disputes” between Employer & Employee, and certain other purposes Power of Labour Court to give Appropriate Relief :- Labour Court / Industrial Tribunal can modify the dismissal or discharge of workmen & give appropriate relief including reinstatement. Employer has to pay last drawn wages to reinstated workman when proceedings challenging the award of his reinstatement are pending in the higher courts. Lay off & Payment of Compensation :- Failure, Refusal or Inability of an Employer to Provide work Due to:- Shortage of Coal, Power or Raw Material, Accumulation of Stocks, Breakdown of Machinery & Natural Calamity. Notice of Change :- In case of any change about the Conditions of Service the Employer has to give 21 days prior Notice to the Employee.
  30. 30. GUIDELINES Prohibition of Strikes & Lock Outs:  Without giving to the Employer Notice of Strike, within 6 weeks before Striking and 14 days of giving such notice.  Before the Expiry of the Date of Strike specified in any such Notice as aforesaid.  During the Pendency of any Conciliation Proceedings before a Conciliation Officer or a Board & Seven days after the conclusion of such proceedings.  During the Pendency of Proceedings before a Labour Court, Industrial or National Tribunal.  During the Pendency of Arbitration Proceedings before an Arbitrator and Two Months after the Conclusion of such Proceedings, where a Notification has been issued.  During any period in which a Settlement or Award is in Operation, in Respect of any of the Matters covered by the Settlement or Award. Retrenchment of Workmen Compensation & Conditions:  Workman must have worked for 240 days  Retrenchment Compensation @ 15 days’ wages for every year.  One Month’s Notice or Wages in lieu thereof.  Reasons for Retrenchment.  Complying with Principle of “Last come First go”.  Sending Form P to Labour Authorities.
  31. 31. PAYMENT OF GRATUITY ACT - 1972 The “Payment of Gratuity Act 1972” is a Social Security enactment. It is basically a “Retirement Benefit” to an Employee so, that he / she can live life comfortably after retirement. Objective :-  To provide for a Scheme for the Payment of Gratuity to Employees engaged in “Factories, Mines, Oilfields, Plantations, Ports, Railway Companies, Shops or Other Establishments” Meaning of Gratuity:-  Derived from the word “Gratuitous” which means ‘Gift’ or ‘Present’. “The Gratuity” is a Lump Sum Payment to Employee when he / she retires or leaves the service. However, under the “Gratuity Act”, gratuity is payable even to an employee who resigns after completing at least 5 years of service. In case uninterrupted continuous service of ‘04 years & 240 days’ also be consider for Gratuity Payment.  Eligibility for Gratuity:- “Employee” (other than Apprentice) employed on wages in any Establishment, Factory, Mine, Oilfield, Plantation, Port, Railway Company or Shop, to do any Skilled, Semi-skilled or Unskilled, Manual, Supervisory, Technical or Clerical work.  Time of Gratuity Payment:- Gratuity is Payable to a Person on (a) Resignation (b) Termination on account of Death or Disablement due to Accident or Disease (c) Retirement (d) Death Normally, Gratuity is payable only after an Employee completes Five Years of Continuous service. “In case of Death and Disablement,
  32. 32. GUIDELINES Amount of Gratuity Payable:-  15 days wages for every year of completed service. In the last year of service, if the employee has completed more than 6 months, it will be treated as full year for purpose of gratuity. Gratuity = ((Last Drawn Basic Salary + DA) * 15 * Total Service Period)/26 Days  In case of seasonal Establishment, Gratuity is Payable @ 7 days wages for each season.  The Maximum Gratuity Limit has been raised from 3.5 lakhs to 10 lakhs. This will give advantage to both Private & Public sector employees. Compulsory Insurance for Gratuity Liability:-  Every Employer has to Obtain an Insurance in the manner prescribed, for his Liability for payment towards the Gratuity under this Act, from the Life Insurance Corporation of India established under the LIC of India Act, 1956 (31 of 1956) or any Other prescribed Insurer of the Country. Nomination under the Act:-  Each Employee who has completed one year of service is required to make a nomination for the purposes of gratuity in case of his death. There can be more than one nominee. Forfeiture of Gratuity:-  Gratuity can be forfeited where an employee has been terminated: (A) For any act, willful omission or negligence causing any damage or loss to or destruction of any property belonging to the employer. (B) For riotous or disorderly conduct or any act of violence on his part. (C) For any act which constitutes an offence involving moral turpitude, provided the offence has been committed by him in the course of his employment.

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