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INDUSTRIAL LAWS

Symbiosis Centre for Management Studies

PROJECT REPORT

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About the Industry

Journey from a Fledging Producer to Global Conveyor Belt Manufacturer

Established in 1949, Oriental Rubber Industries Ltd. has, over the years, gained the reputation
of being a world class manufacturer of rubber conveyor belts and rubber sheeting in India.
Located at Pune, just 160 kms. from Mumbai, Oriental enjoys easy access to the International
Airport via the recently built expressway. Shipping port facilities are also conveniently located
at a distance of only 120 kms. Oriental today is the biggest Indian exporter of fabric reinforced
conveyor belts. We manufacture conveyor belts upto 2000 mm width and in various grades
conforming to international standards.
The foundation was laid by Mr. Sadanand Makar who passed the baton to his son Mr.
Vijaynand, one of the premier rubber technologists in independent India. With their spirit of
enterprise and innovation, Oriental emerged into prominence – a company known for providing
excellent products of lasting value.
Oriental is led by third generation entrepreneurs Vikram and Vishal Makar, who are ably
assisted by the best professionals in the industry and a vision to transform the company from
“proudly Indian” to “proudly Global”
The values remain the same as when we started and as our newsletter Suryodaya promises – at
Oriental, the sun of innovation rises every day.

Products
Mfrs of Conveyor Belts, General Purpose Belt, Heat Resistant Belts, Fire Resistant Belts, Oil
Resistant Belts, Chemical Resistant Belts, Hygienic Belts Rough Top Belts, Profile Belts etc.
Specialization
Oriental’s wide range of belts caters to critical requirements of material handling applications
in the movement of loose bulk material.
Quality
Oriental Rubber Industries Limited is an ISO 9001-2000 accredited organization. Our
commitment to quality guarantees excellent products and total customer satisfaction.
Facilities
We have always sourced equipment from world renowned machinery manufacturers like
SIEMPELKAMP (Germany), Nippon Roll Calendar Line and KOBE Mixing Line.
Contact Details
Establishment year – 1949 Total employees range – 500&above

Contact Person Mr. Vikram V. Makar

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Address Shravani Gardens, 20, Viman Nagar, Nagar Road

City Pune State Maharashtra Pin Code 411 014 Country India.

Phone 91-20-2663 0071,

Fax 91-20-2663 0840

Mobile 91-9822022480

Email Send Enquiry

Website www.orientalrubber.com

IRD Biz Page http://www.indiarubberdirectory.com/orientalrubber

Milestone
 1949 - Established as one of the first producers of rubber moulded articles in
independent India.
 1954 - Imported cycle tyre and Belting Lines from Japan to become the first producer
of Conveyor Belts using indigenous technology.
 1964 - Established as a leading producer of Conveyor and Transmission belts in India
with an additional 1800-mm wide Belting Line.
With a wide range of products catering to defence, railways and industrial applications,
Oriental became one of the largest non-tyre rubber producers in the country.
 1973 - The first Indian belt manufacturer to install a SIEMPELKAMP Press imported
from Germany, resulting in the largest capacity for belts in the country.
 1978 - With the continuous technological developments, Oriental manufactured the
FIRST SYNTHETIC FABRIC REINFORCED CONVEYOR BELT in India.
 1993 - Established a modern plant in Pune, near Mumbai, with a land area of 32000 M2
and covered area of 5000 M2.
Focus on making synthetic fabric reinforced Conveyor Belts for the Indian and overseas
markets.
 1994 - Commenced exports; products well accepted in Western Europe, USA and
Middle East.
 1996 - Successfully executed the single largest EP belt in the country for a copper
project.
Increased product portfolio to include wear resistant products.
 1999 - Completed Phase 1 of expansion in conveyor belt capacity
 2000-2001 - Phase 2 – expansion resulting in mixing capacity of 7200 TPA.
Became the largest producer and exporter of fabric reinforced conveyor belt in the
country.
Accredited with ISO 9001 Certification
 2002 - Awarded Export House Status by Govt of India
 2003 - Increase in plant capacity by 70% which included two Vulcanizing Press Lines.

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 2007 - 2nd Manufacturing facility covering 100,000 sq ft was established in Karandi as
100% EOU.
Oriental Rubber Industries(SA)Pty Ltd : A Subsidiary of Oriental Rubber Industries in
India was floated
 2009 - Accredited by South African Board of Standard (SABS) for the Fire Resistant
and General Purpose Conveyor Belts.
 2010 - National Accreditation Board For Testing & Calibration Laboratory (NABL)
 2011 - Commissioning of 2200mm wide Siempelkamp Press
 2013 - Commissioning of 2600mm wide Clouth Press, widest press in India
 2017 - Overseas Manufacturing Facility in South Africa
 2019 - Expansion of Steel Cord Belts manufacturing facility

The 2 acts on the basis of which we are providing experiential learning are :
 The Factories Act, 1948
 The Minimum wages Act, 1948

THE FACTORIES ACT, 1948

Introduction
There has been rise of large scale factory/ industry in India in the later half of nineteenth
century. Major Moore, Inspector-in- Chief of the Bombay Cotton Department, in his Report in
1872-73 first of all raised the question for the provision of legislation to regulate the working
condition in factories; the first Factories act was enacted in 1881. Since then the act has been
amended on many occasions. The Factories Act 1934 was passed replacing all the previous
legislation in regard to factories. This act was drafted in the light of the recommendations of
the Royal Commission on Labour. This Act has also been amended suitably from time to time.
The experience of working of the Factories Act, 1934 had revealed a number of defects and
weakness which have hampered effective administration of the Act, and the need for wholesale
revision of the act to extend its protective provisions to the large number of smaller industrial
establishments was felt. Therefore, the Factories Act, 1948 consolidating and amending the
law relating to labour in factories, was passed by the Constituent Assembly on August 28,
1948. The Act received the assent of Governor General of India on 23 September 1948 and
came into force on April 1, 1949.

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Objectives
The main objectives of the Indian Factories Act, 1948 are to regulate the working conditions
in factories, to regulate health, safety welfare, and annual leave and enact special provision in
respect of young persons, women and children who work in the factories.

Definitions
1. Factory
 any premises in which 10 or more workers are employed and a manufacturing process
is carried with the aid of the power.
 any premises in which 20 or more workers are employed and a manufacturing process
is carried without the aid of power.
2. Worker
A person employed {directly or by or through any agency including a contractor}, with
or without the knowledge of principal employer, whether for remuneration or not in
any manufacturing process , or in cleaning any part of the machinery or premises used
for manufacturing process , or in any kind of work incidental to, or connected with,
the manufacturing process or the subject of the manufacturing process but does not
include any member of the armed forces of the Union.

3. Occupier
The person who has ultimate control over the affairs of the factory; and the partner, in the
case of a firm or any association, any director in case of a company a person appointed to
manage the affairs of a factory in case of factory owned or controlled by Central / State
government.
4. Factory Insectorate
It is necessary that approval from the Chief Inspector of Factories is obtained for the
plans of the factory. The Occupier has also to arrange to register the factory with the
Chief Inspector of Factories and obtain necessary license. Factory Inspector has
authority to enter the Factory to examine premises, plant, machinery as well as registers
& documents maintained under the Act.

PROVISIONS UNDER THE FACTORIES ACT


1. Health
It is necessary to provide appropriate measures like : -
 To keep clean and free from effluvia

 To dispose off wastes & effluents

 To maintain adequate ventilation & reasonable temperature

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 To prevent inhalation of dust & fumes and their accumulation in any room
 To ensure proper standards of humidity
 To avoid over crowding
 To provide sufficient and suitable natural & artificial lighting
 To provide for sufficient supply of wholesome drinking water
 To provide separately for male & female workers sufficient latrine & urinal
accommodation
 To Provide sufficient number of spittoons and maintain them in clean and hygienic
condition.
2. Safety
It is necessary to undertake appropriate safety measures like:-
 To fence dangerous pats of machines
 To prohibit employment of women and children near cotton openers.
 To protect workers from repairing machinery in motion
 To maintain hoists & lifts of good mechanical construction of sound materials &
adequate strength
 To Keep all floors, steps, stairs, passages & gangways in good condition.
 To prohibit any person from carrying or moving any load so heavy as to be likely to
cause him injury
 To protect workers from injury to eyes from particles or fragments thrown off in the
course of the manufacturing process
 To protect workers from dangerous fumes, inflammable dust, gas and such other
materials.
 To protect workers from fire and provide for precautionary measures.
3. Welfare
The Act prescribes following welfare measures:-
 Separate & adequate washing facilities for male & female workers
 Facilities for storing of clothes not worn during working hours and drying of wet
clothing
 Facilities for sitting of workers obliged to work normally in standing position.
 First aid boxes or cupboards, One such box for every 150 workers under a separate
responsible person.
 Ambulance rooms in factories ordinarily employing 500 or more workers.

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 Canteens of prescribed standards, in factories ordinarily employing more than 250
workers, to be run on non-profit basis by Canteen Committee.
 Suitable and adequate rest rooms / shelters & lunch rooms (if canteen not provided)
to be provided by factories ordinarily employing 150 workers
 A crèche is to be provided in a factory wherein ordinarily more than 30 women
workers are employed
 In a factory wherein 500 or more workers are ordinarily employed the occupier shall
employ such number of welfare officers as may be prescribed.
4. Hours of Work
Rules for adult worker in a factory:-
 A worker cannot be employed for more than 48 hours in a week.
 He must be given a holiday for whole day in every week, or a compensatory holiday in
lieu of weekly holiday.
 A worker cannot be employed for more than nine hours a day & should get an interval
of rest of at least half an hour after maximum five hours of work
 Total period of work including rest period cannot exceed 101/2 hours in a day.
 For overtime work above nine hours a day or 48 hours a week, he shall be paid at twice
the normal rate of wages.
 The state government can make rules under certain conditions providing for exemption
but not beyond 10 hours of work a day, twelve hours of spread over or sixty hours a
week including overtime.
 Rules for women & children worker in a factory
 A woman worker cannot be employed except between the hours of six in the morning
and seven in the evening.
 Employment of children below 14 years is totally prohibited.
 A child above 14 years but below 15 years can be employed for maximum 4¼ hours a
day.
 A child cannot be employed during the night time I.e. from 10 pm to 6 am
 Child worker must have a certificate of fitness granted by a Certifying Surgeon. A child
above 15 years can be employed as an adult if he has a certificate of fitness to perform
full day’s work.
 A prescribed Register is to be maintained for child workers.

5. Offences and Penalties


If in any factory, there is a contravention of the provisions of the Act or of any rule there under,
the occupier or manager may be punished by fine of up to one lakh rupees or imprisonment of
up to two years or both. Greater punishments are prescribed for subsequent contraventions.
Punishment is prescribed for obstructing Inspector or not allowing worker to meet Inspector or
for refusing to produce records demanded by Inspector.
If any worker contravenes any provision of the Act he may be punished with prescribed fine.

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THE MINIMUM WAGES ACT, 1948

Introduction

The Minimum Wages Act, has been enacted by the Central Legislative Assembly from the
year 1948 concerning Indian labour law that sets the minimum wages that must be paid to
skilled and unskilled labours.
The Act intends to provide for fixing of minimum rates of wages in certain employments.
The wages that are paid by an employer should not be lesser than the specified minimum
wages.

Objectives
 To give minimum wages to the workers working in the organized sector (scheduled
employment).
 To stop the exploitation of workers.
 To empower the government to take steps for fixing minimum wages and to revise
this wages within five years.
 To provide for the appointment of Advisory committees and Advisory Boards, having
equal representatives of employers and workers.

Applicability
 It applies to all over India except Jammu and Kashmir.
 It applies to any employment if it employs 1000 employees in the respective state.
 It does not apply to any employees in any undertaking owned by the Central
government or of the federal railway, except with the consent of the central
government.

Definitions

1. Adolescent
"Adolescent" means a person who has completed his fourteenth year of age but has
not completed his eighteenth year.

2. Adult
"Adult" means a person who has completed his eighteenth year of age.

3. Appropriate Government "appropriate Government" means -


(i) In relation to any scheduled employment carried on by or under the authority of
the Central Government or a railway administration, or in relation to a
mine, oilfield or major port, or any corporation established by a Central Act,
the Central Government, and
(ii) In relation to any other scheduled employment, the State Government

4. Child
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"Child” means a person who has not completed his fourteenth year of age.

5. Competent authority
"Competent authority" means the authority appointed by the appropriate Government by
notification in its Official Gazette to ascertain from time to time the cost of living
index number applicable to the employees employed in the scheduled employments
specified in such notification.

6. Wages
"Wages” means all remuneration, capable of being expressed in terms of money,
which would, if the terms of the contract of employment, express or implied, were
fulfilled, be payable to a person employed in respect of his employment or of work
done in such employment, and includes house rent allowance], but does not
include--
(i) The value of—
(a) Any house-accommodation, supply of light, water, medical attendance, or
(b) Any other amenity or any service excluded by general or special order of the
appropriate Government;
(ii) Any contribution paid by the employer to any Pension Fund or Provident Fund or
under any scheme of social insurance;

(iii) Any travelling allowance or the value of any travelling concession;

(iv) Any sum paid to the person employed to defray special expenses entailed on him
by the nature of his employment; or

(v) Any gratuity payable on discharge;

7. Employee
"Employee” means any person who is employed for hire or reward to do any work,
skilled or unskilled, manual or clerical, in a scheduled employment in respect of which
minimum rates of wages have been fixed; and includes an out-worker to whom any
articles or materials are given out by another person to be made up, cleaned, washed,
altered, ornamented, finished, repaired, adapted or otherwise processed for sale for the
purposes of the trade or business of that other person where the process is to be
carried out either in the home of the out-worker or in some other premises not being
premises under the control and management of that other person; and also includes an
employee declared to be an employee by the appropriate Government; but does not
include any member of the Armed Forces of the Union.

Wages under Section 2 of the Act


Wages means all remuneration, capable of being represented in money. It covers house rent
allowance but does not include the: -
 Value of house accommodation, the supply of electricity, water, medical attendance.

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 Value of any other amenity provided is excluded by Government order.
 Any contribution to the pension fund, provident fund or insurance.
 Allowance for travelling.
 Special expenses acquired by the nature of employment.
 Gratuity is payable on discharge.

Fixation and Revision of Minimum Wages


 The minimum rates of wages will be reviewed or revised, for every five years, by the
appropriate government.
 The appropriate government can add any employment, to the schedule (part-I or part –
II), wherein one thousand or more employees are found working.
 Different minimum rates of wages can be fixed for different scheduled employments/
different classes of work /different localities.

Minimum Rates of Wages


Any minimum rate of wages fixed or updated by the appropriate Government in respect of
scheduled employments under section 3 consists of
 The basic rate of wages and a special allowance which varies with the cost of living
index.
 The basic rate of wages with or without allowance for the cost of living allowance
based on the cost of living index number.
 All inclusive rate is allowing for the basic rate of wages with the cost of living
allowance and cash value of concessional supply of materials.

Procedure for Fixing and Revising Minimum Wages


There are two different modes of procedure for Fixing and Revising
Minimum Wages under Section 5. The main aim of both the procedures is to empower the
Government to reach a favourable result about Fixation of a Minimum Wage.
The Two Modes are as follows:
 Appointment of Committee
The Appropriate Government should appoint as many Committees or Sub- Committees as to
hold necessary inquiries for Fixation of Minimum Rates of Wages.
 Publication of Proposals in the Official Gazette
The Appropriate Government by notification in the Legal Gazette, publish its Proposals for
the Information of the Person who is likely to be affected by the Fixation of Minimum Rates
of Wages.

Penalties
The fine or penalties cannot be imposed on any employed person in respect of omissions of
such acts by the employer, with the previous approval of the State Government or the
prescribed authority specifying in the form of notice under sub-section (2).
A notice specifying such acts and omissions can be exhibited in the prescribed manner on the
premises in which the employment is carried on or in the case of a person employed upon a
railway (otherwise than in a factory), at the prescribed place or places.
The fine cannot be imposed on any employed person until he has been with the reason against

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the fine or following such procedure as may be prescribed for the imposition of fines.
The total amount of fine, which can be imposed in any one wage-period on any employed
person, should not exceed an amount equal to 3% of the wages payable to him in respect of
that wage-period. The fine cannot be imposed on any employed person who is under the age
of fifteen years.

Deduction for damage or loss


In case of any damage or loss performed by the employee for an employer in such cases
deduction made from the wages of an employee should not exceed the amount of the damage
or loss caused to the employer. Then the employee is allowed to apologies with the reason for
this cause. And all such deduction has to be recorded in a register.

Deductions for recovery of Advance


The deduction can be made in case of recovery of advance given before employment can be
made from the first payment. The deduction can be made in case of recovery of an advance
given after employment can subject to such conditions as the Appropriate Government may
impose.

Deduction for damage or loss


In case of any damage or loss performed by the employee for an employer in such cases
deduction made from the wages of an employee should not exceed the amount of the damage
or loss caused to the employer. Then the employee is allowed to apologies with the reason for
this cause. And all such deduction has to be recorded in a register.

Deductions for recovery of Advance


The deduction can be made in case of recovery of advance given before employment can be
made from the first payment. The deduction can be made in case of recovery of an advance
given after employment can subject to such conditions as the Appropriate Government may
impose.

Personal Experience
1. How many hours of overtime do you allow or make them work?
As per the Factories Act, every adult (who has completed 18 years of age) cannot
work for more than 48 hours in a week and not more than 9 hours a day. And as even
the spread over should not exceed over 10-1/2 hours. Hence the same is followed in
this organization.
As when it comes to the women workers, according to the Factories Act there is a
restriction of women to work between 7:00pm-6:00am and as women are not allowed
to work between 10:00pm-5:00am.
2. How many leaves are given by the organization?
Numbers of leaves entitlement in a company depends upon state you are in. Every
state has different leave entitlement and leave policies which should be seen before
one defines leave policy of your company. Leave policy of a company cannot be less
than that mentioned by the State’s shop and establishment act.
As in this organization at least seven holidays are provided for national and other
festivals. Similarly, minimum 14 days sick leaves, earned leaves at least 15- 3 days
and casual leaves minimum 3 days a month.
3. Is it possible for an employee to take a leave in an urgent situation?

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Yes, it is depending on the situation that is if the leave is for a genuine reason such as
maternity, health issues etc.
4. If any employee has been terminated, how do you pay him?
Under the state labor law in Maharashtra, an employer cannot terminate an employee
who has been in the company for more than one year without giving the employee at
least 30 days of notice in writing
If the employee has been in the company for more than three months and less than
one year, the employer needs to give at least 14 days of notice. The notice is not
necessary if the employee has been terminated for a misconduct.
5. How do you keep record of the workers on leave and how many days are they
working?
As the organization is well organized and they maintain proper record about the
workers hence, a leave book, a register and an excel sheet is maintained.
6. Does an employee have a right to take leave during the notice period?
In this organization an employee can take leave during the notice period, provided it
is for genuine reason that is maternity, health issues, etc.
The Delhi High Court, is one its judgement, said that employee can take leave during
the notice period if nothing is mentioned in the appointment letter which bars the
employee from taking leave during the notice period, if he has to leave his credit and
is entitled to the same.
7. What kind of protection do you have for your employees?
When it comes to the protection of the employee, we make sure that they have all the
safety tools i.e body suits, goggles, gloves, hard hats, steel capped, boots.
We also make sure that they are aware about certain cleanliness in the organization.
Proper induction and training are given about the safety rules, make sure they know
about the first aid, medical facilities, and signs and posters are posted everywhere in
different languages so that everyone in order to read.

8. Are there availability of welfare facilities?


Yes, there are welfare facilities available such as washrooms, lunchrooms, canteens,
sitting area, and medical room.
9. How is the attendance marked for each employee?
As it is mandatory to mark attendance for each employee therefore, the attendance is
marked through the biometric attendance machine throughout the day that is when
they reach the organization and when they leave.

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