Understanding Factory Worker Definitions: Do ITI Qualified Employees Count?

Who is a worker in the factory? In our factory, all the workers are receiving a salary of $18,000 to $22,000, and they are ITI qualified. Do they fall under the definition of workers? If so, do we need to file all the returns as usual?

Dear Ashok,

As per legal provisions in Standing Orders, the workmen who draw wages up to Rs. 1600/- per month are called workers, whether they perform skilled, unskilled, manual jobs, etc. This definition is mentioned in the Industrial Disputes Act. Please refer to it.

Nowadays, nobody is drawing wages of Rs. 1600/-, and the government has not made any changes to labor laws. However, you can define your employees as workers based on the nature of their jobs as provided in the Industrial Disputes Act.

Regards,
Bhushan Dahanukar

Dear Friend,

The Factories Act of 1947 defines a "worker" as follows:

(1) "worker" means a person employed, directly or by or through any agency (including a contractor) with or without the knowledge of the principal employer, whether for remuneration or not, in any manufacturing process, or in cleaning any part of the machinery or premises used for a manufacturing process, or in any other 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.

Nowhere is remuneration mentioned in this definition. However, according to the Contract Labour (Regulation and Abolition) Act, the term "worker" is further specified as:

(i) "workman" means any person employed in or in connection with the work of any establishment to do any skilled, semi-skilled, or unskilled manual, supervisory, technical, or clerical work for hire or reward, whether the terms of employment are express or implied. This definition excludes individuals who fall under the following categories:

(A) those employed mainly in a managerial or administrative capacity;
(B) those employed in a supervisory capacity earning wages exceeding One thousand six hundred rupees per month or carrying out managerial functions; or
(C) out-workers, who receive materials from the principal employer to be processed for sale, and carry out the process at their home or in premises not under the control of the principal employer.

I recommend reviewing the act to draw your own conclusions.

Regards,

PBS KUMAR

Dear Ashok,

Please refer to the definition of a worker under the Industrial Disputes Act. Wages may vary, but it is essential to determine the nature of their job. If the role is not supervisory or managerial, then they are referred to as a worker or workman.

Regards,
Bhushan