THE KERALA UNORGANIZED WORKERS (RIGHTS, REGULATION OF

EMPLOYMENT, CONDITIONS OF WORK, SOCIAL SECURITY AND WELFARE)

BILL

Preamble.—WHEREAS Social and economic justices are the promise of our Constitution;

AND WHEREAS justice to the unorganized workers who are long neglected victims of very
exploitative conditions is therefore an urgent imperative of our Socialist Republic;

AND WHEREAS the experience of implementational failure, legal and litigational hurdles of
existing labour legislations have made it necessary to make creative changes in the structure,
schemes and operation of any labour legislation designed to liberate the workers in this sector
from the unjust practices prevalent in the field;

AND WHEREAS the participation of workers as envisaged by the Constitution under Article 43-
A in the working of the legislation and enforcement of remedies thereunder is essential if
credibility and confidence are to be commanded by the law.

BE it enacted in the Fifty-ninth Year of the Republic of India as follows:—

CHAPTER I

PRELIMINARY

1. Short title, extent and commencement.—(1) The Act may be called The Kerala Unorganized
Workers (Rights, Regulation of Employment, Conditions of Service, Social Security and
Welfare) Act—

(2) It extends to the whole of Kerala.

(3) Chapter I shall come into force at once and the rest of the Act shall come into force on such
date or dates as the Government may, by notification in the Official Gazette, appoint.

2. Definitions.—In this Act, unless the context otherwise requires,

(a) “Adolescent” means a person who has completed 15 years of age but has not completed 18
years of age.

(b) “Adult” means a person who has completed 18 years of age.

(c) “Government” means Government of Kerala.

(d) “Board” means Unorganized Workers Boards established under Section 7 of this Act.
(e) “Kerala Advisory Committee” means an Advisory Committee constituted under Section 15.

(f) “Child” means a person who has not completed 15 years of age.

(g) “Contractor” in relation to any unorganized worker in the scheduled grouping of

employments, means a person who undertakes to execute any work or render any service for an
establishment by engaging such workers on hire or otherwise, or who supplies such workers
either in groups, gangs or as individuals and includes a sub-contractor, an agent, or a mastery or
any supplier of labour.

(h) “Employer” in relation to any unorganized worker in the scheduled grouping of

employments, means the principal employer and in relation to any unorganized worker in the
scheduled grouping of employments, the person who has an ultimate control over the affairs of
the establishment work or service and includes any other person to whom the affairs of such
establishment are entrusted, whether such person is called an agent, manager or is called by any
other name prevailing in the scheduled group of employments.

(i) “Establishment” means any place or premises belonging to, or under the control of an
employer where workers are employed in any work and includes an establishment belonging to a
contractor.

(j) “Family” in relation to an employer or any unorganized sector worker in the scheduled
grouping of employments, mean the spouse, son, daughter, father, mother, brother or sister of
such employer or any unorganized sector worker in the scheduled grouping of employments,
who lives with him and is wholly dependent on him.

(k) “Fund” means fund created for social security, administration and welfare schemes under this
Act.

(l) “Home based worker” means a person involved in the production of goods or services for an
employer premise in his name or other premises of his choice other than the work place of the
employer for remuneration irrespective of whether or not the employer provides the equipment,
materials or other inputs.

(m) “Inspector” means an Inspector appointed under Section 16.

(n) “Prescribed” means prescribed by rule or scheme made under this Act.

(o) “Principal employer” means any employer who engages any unorganized worker in the
scheduled grouping of employments, by or through a contractor.

(p) “Scheduled employment” means any employment specified in schedule or any other
employment added in the schedule by notification under Section 11.

(q) “Scheme” means a scheme notified by the Government under the Act.
(r) “Self employed person” means any person who is not employed by an employer, but directly
engages himself in any employment or vocation for his livelihood.

(s) “Social security number” means the number given to the worker under clause (o) of sub-
section (2) of Section 8.

(t) “Unorganised sector & Unorganized Sector Worker” means the sector in which the scheduled
employments exist.

(u) “Wages” means all remunerations expressed in terms of money or capable of being so
expressed which would, if the terms of contract of employment, express or implied were
fulfilled, be payable to an unorganized sector worker in respect of work done in any scheduled
employment but does not include—

(i) The value of any house accommodation, supply of light, water, medical attendance, or any
other amenity or any service excluded from the computation of wages by general or special order
of the Government;

(ii) Any contribution paid by the employer to any pension fund or provident fund or under any
scheme or social insurance and the interest which may have accrued thereon;

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

(iv) Any sum paid to the unorganized sector worker to defray special expenses entailed to him by
the nature of his employment; or

(v) Any gratuity payable on discharge.

(vi) “Worker” means a person between the age of 15 and 60 years working in any unorganized
sector in the scheduled grouping of employments, as a self employed, or employed directly or
through any agency or contractor whether exclusively for one employer or in a group or
otherwise one or more employers whether simultaneously or otherwise and includes,—

(a) A casual or temporary worker;

(b) Migrant worker;

But does not include any member of the family of an employer.

3. Effect of laws and agreements inconsistent with this Act.—(1) The rovisions of this Act shall
have effect notwithstanding anything inconsistent therein contained in any other law for the time
being in force or in any contract or instrument having effect by virtue of any law other than this
Act or any other decree or order of any court, tribunal or authority or under any settlement.

(2) The Government may by notification in the Official Gazette and subject to such conditions as
may be specified in such notification, exempt any employer in the Schedule Grouping of
Employments from the operation of this Act, if the workers under such employment are
otherwise in receipt of benefits substantially similar or superior to the benefits provided under
this Act.

4. Application of Various Laws to Unorganized Sector Workers.— Notwithstanding anything

contained in any other law for the time being in force, provision of Workmen’s Compensation
Act, 1923 (Central Act 8 of 1923), Interstate Migrant Workers Act, 1976, Payment of Wages
Act, 1936 (Central Act 4 of 1936), Maternity Benefit Act, 1961 (Central Act 53 of 1961),
Minimum Wages Act, 1948 (Central Act 11 of 1948), Equal Remuneration Act, 1976 (Central
Act 25 of 1976), Employee’s State Insurance Act, 1948 (Central Act 34 of 1948), Employees

Provident Fund Act, 1952 (Central Act 19 of 1952), Payment of Gratuity Act, 1972 (Central Act
39 of 1972) subject to modifications of this Act shall apply to all the Unorganized Sector
Workers covered under this Act.

5. Rules of evidence.—Notwithstanding anything contained in the Indian Evidence Act, 1872

(Central Act 1 of 1872) the burden of proof that compliance with the provisions of the Act and
the Scheme have been effected shall be on the employer and the units of the Board wherever
applicable.

CHAPTER II

MINIMUM LABOUR STANDARDS TO BE ENSURED

FOR THE WORKERS

6. Duty of Government to ensure Minimum Standards.—Government shall ensure to every

worker engaged in the Scheduled Grouping of Employments the following Rights and
Entitlements, namely: —

(i) The right to livelihood including the right over common properties and natural resources in
the following manner:

(a) Ensuring the traditional rights of all types of Forest Workers, Fish Workers, Potters, Sand
Miners, Quarry and other Miners and other groups of workers having traditional access to
common property resources for their livelihood.

(b) Ensuring the right of workers to share the public space to engage in economic activities.

(c) Ensuring the right to inhabitance in places where the workers are usually residing.
(ii) Not to be employed in employments such as forced/bonded labour, child labour and manual
scavenging.

(iii) Prohibition of discrimination in employment on grounds of religion, race, caste, creed, sex,
place of birth/residence/domicile or any other reason.

(iv) Minimum age of employment not to be below 15 years of age.

(v) The age of superannuation not exceeding 60 years for men and 55 years for women.

(vi) The right for written contract with regard to terms and conditions of employment.

(vii) The right to have an uniform social security card.

(viii) The duty of the Government to prescribe a model set of standing orders in consultation
with worker’s representatives on matters such as hours of work, weekly rest, annual leave with
wages, suspension, disciplinary proceedings, discharge, termination and welfare measures within
the scope of employment, with a condition that every employer must frame the standing order in
conformity with such standing orders. In cases where an employer fails to frame such standing
order, model standing order shall be applicable. Any condition of engagement, employment or
service not so provided, shall be in accordance with the provisions of this Act.

(ix) The right to form the union and for collective bargaining through the tripartite mechanism or
otherwise.

(x) The right to collective action by the Unions and the Workers.

(xi) The employers’ duty to provide occupational and other safety measures.

(xii) The right to the entitlement for vocational training and guidance through the State,
Employers Organisations or otherwise.

(xiii) Ensuring special protection for migrant workers and their families in providing ration
cards, housing, medical help and education to their children. (xiv) Providing the protection for
women workers against sexual harassment at work place, as defined in the Visakha judgment.

(xv) Restricting mechanization causing labour displacement and other labour displacement
methods in the unorganized sector.

(xvi) Ensuring the health and medical care, employment, injury benefit, maternity benefits, group
insurance, housing, gratuity, bonus and pension benefits.

(xvii) Providing Credit, adequate raw material (input) supply and creating marketing facilities for
the Employments specified in the Scheduled Grouping of employments in respect of home-based
and self employed workers.
(xviii) Ensuring access to Banking Institutions, in the State or Co-operative Sector for the
purpose of affordable credit facilities with due provisions for insurance collective or otherwise.

CHAPTER III

CONSTITUTION OF STATE BOARDS, FRAMING OF SCHEMES

7. Unorganized Sector Workers Boards.—(1) The Government shall, by notification in the

Official Gazette, establish Unorganized Sector Workers Board at State level for each grouping of
scheduled employments with such number of members as may be prescribed. The Board shall
consist of representatives of workers, employers, and Government representatives and experts in
the field.

(2) Every such Board shall be a body corporate with the name as aforesaid having perpetual
succession and common seal with power to acquire, hold and dispose of property and to contract
and may by that name sue and be sued.

(3) The Government shall after consulting the State Advisory Committee, by notification in the
Official Gazette and subject to the condition of prior publication set up at the District level
bodies on the same pattern as that of the State Unorganized Sector Workers Board constituted by
each grouping of scheduled employments.

(4) The representatives of workers of the Board shall be elected by registered Unorganized
Sector Workers in such manner as may be prescribed. Until that time, representatives of the
workers in the Board shall be the representatives of Trade Unions of the Unorganized Workers in
the corresponding grouping of scheduled employments with such substantial membership as may
be prescribed.

(5) Women unorganized sector workers shall have proportionate representation among
representatives of workers in all bodies.

(6) The term of the members of the Boards and the District bodies shall be for a period of three
years.

(7) The meeting of the State level Boards shall be held in every two months and the meeting of
the District Boards shall be held every month.

8. Scheme for ensuring regular employment of workers.—(1) The Government shall, in

consultation with its Unorganized Workers Boards frame schemes to be called the Unorganized
Workers (Regulation of Employment and Conditions of Service) Schemes, for ensuring greater
regularity of employment, for regulating the employment of unorganized workers and for
prescribing conditions of service for the unorganized workers covered by the scheme.

(2) Each Scheme shall be for the corresponding group of scheduled employments of unorganized
workers and for all categories of workers. (3) In particular, the Scheme may provide for any or
all of the following matters, namely: —

(a) For the application of the Scheme to such classes of unorganized workers and employers as
may be specified therein;

(b) For ensuring regular employment and regulating employment in the each grouping of
scheduled employments in the unorganized sector and providing benefits to workers;

(c) For regulating the recruitment and entry into the Unorganized Sector Workers Board, by way
of registration of unorganized workers identified by registered trade unions and employers
including the maintenance of registers, temporary or permanent; removal of names of workers or
employers from the registers and the imposition of fees for registration for provision of identity
card, work book and a social security number to each worker;

(d) For regulating the employment of unorganized workers, and the terms and conditions of such
employment, including rates of remuneration, hours of work and conditions as to holidays and
pay in respect thereof;

(e) For providing for minimum payment to workers who are available for work in respect of
periods during which full employment, or even part employment, is not available;

(f) For prohibiting, restricting or otherwise regulating the employment of unorganized workers
who are not registered workers and the employment of unorganized workers by employers who
are not registered employers;

(g) For collecting levy from employers of the scheduled employments towards the scheme and
social security and welfare fund;

(h) For the manner in which, and the persons by whom, the cost of operating the scheme is to be
defrayed, including any contributions to the fund by employers and manual workers and the rate
of such contributions;

(i) For creating such fund or funds as may be necessary or expedient for the purposes of social
security and other welfare benefits and for the administration of such fund or funds;

(j) For training, imparting skills to and providing welfare for unorganized workers; such as
housing, crèche, assistance for accidents, natural death of the registered workers, marriage and
education of children etc.;

(k) For the welfare of the officers and other staff of the Board;
(l) For health and safety measures in places where unorganized workers are employed;

(m) For implementing ESI, PF, Pension from the age of 55, maternity benefit to the registered
workers;

(n) For constituting Social Security and Welfare Fund composed of contributions from
Employers through Cess, levy, annual budgetary provision from the State Government and small
contribution from the workers;

(o) Provision of National Social Security Number to each unorganized sector worker by the
Unorganized Sector Boards;

(p) For implementing special protection for migrant workers and families;

(q) For constituting complaints committee on sexual harassment of women workers;

(r) For evolving guidelines for restricting of mechanization and other labour displacement
policies and practices in the unorganized sector and implementing them;

(s) For devising steps to help workers depending on open and common resources to see that their
activities are not hindered and sustainability maintained with environmental protection;

(t) For taking steps to protect the historical and traditional rights of the forest workers and forest
produce gatherers, fisher-people, potters, sand miners, quarry workers and other miners and such
other groups of workers having traditional access to common property resources for their living
and avocation;

(u) For taking steps to protect the right of the unorganized sector workers to share the public
space to engage in economic activities;

(v) For taking steps to protect natural and common resources with a view to sustainability of
work of those group of workers who are having access to natural and common property
resources for their living avocation;

(w) For promotion of labour intensive methods and practices in the unorganized workers;

(x) For constituting, Administrative Bodies at various levels as may be necessary for the
administration of the Scheme;

(y) For setting up units of the Board at various levels;

(z) The Scheme may further provide for constituting appropriate dispute resolution bodies for
speedy resolution of disputes that may arise between workers, the contractors, principal
employers and Board, or any two of the unorganized workers, the principal employer’s
contractors and the Board.
(aa) for formulating appropriate provisions for taking disciplinary action if necessary against
employers and workers, and the functionaries of Boards and its bodies.

9. Contribution to Social Security and Welfare Fund.— Notwithstanding anything contained in

any law for the time being in force or in any agreement,—

(i) The employers of goods and services shall make contribution to the social security and
Welfare Funds of the corresponding unorganized sector workers boards in the State. One percent
of levy of the total turnover shall be paid by every kind of production and services before the exit
of goods and services from place of production and at the time of sale at the point of distribution
of goods and services in the State.

(ii) Every motorized transport service shall pay 1% of the road tax for Social Security and
Welfare Funds of the Unorganized Workers (Transport & allied services, No. 12 in the Schedule)
Boards in the State.

(iii) The Govt. shall make annual grants to the Social Security and Welfare Funds of the
Unorganized Sector Workers Boards operating in the State starting from 3% of the budgetary
allocations and increasing every year till adequate Social Security levels are reached in the State.

(iv) Each registered worker shall make a small contribution.

10. Amendment of the Scheme.— The Government may in consultation with the Unorganized
Workers Boards for grouping of scheduled employments by notification in the Official Gazette,
from time to time may amend, alter or vary the schemes framed under Section 8 for the purpose
of more effective implementation of the Schemes or for conferring additional benefits to the
unorganized workers.

11. Amendment of Schedule.— Government may add any unorganized sections to the Schedule
by notification in the Gazette.

12. Functions of the Boards.—(1) The Unorganized Sector Workers Boards at state level shall be
responsible for administering the schemes and shall exercise such powers and perform such
functions as may be conferred on them by the Scheme.

(2) The District Board shall likewise be responsible for administering the Schemes in their
respective areas, under the over all supervision and guidance of the Board.

(3) The District, Panchayat level Board shall convene meetings of registered workers in each
scheduled grouping of employments every year and the minutes placed before the corresponding
boards in the subsequent meeting.

(4) There shall be grievance day every week in the District Boards, where the registered worker
can get the redressal of grievance relating to the functioning of the Scheme.
(5) No decision of a Board, which is adverse to the interests of unorganized workers, shall be
taken except with the concurrence of the representatives of the workers on the concerned Board.

(6) The Boards shall recruit necessary staff from the employment exchange. The service rules of
such staff of the Boards shall be formulated by the Board in meeting and published in the
gazette.

(7) Notwithstanding anything contained in any other law, the Board may nominate persons or
officers who would be competent to act on behalf of any unorganized sector workers to initiate
action for making any claim under any law or rules made thereunder or award or settlement
made under any such law and appear on behalf of the unorganized workers in such proceedings.

(8) The State level Board shall submit to the Government as soon as may be, after the first day of
April every year, the annual report on the working of the scheme during the preceding year
ending on thirty-first March of that year. Every report so received shall be laid as soon as may be
after it is received before the State Legislature if it is in session, or in the session immediately
following the receipt of the report.

(9) The Board shall constitute a vigilance committee comprising of the representatives of
workers, employers, government and experts to check corruption, monitor the functioning of the
board and evolve strategies to eradicate corruption and to promote accountability and
transparency.

13. Accounts and Audit.—(1) The Board shall maintain proper accounts and other relevant
records and prepare an annual statement of accounts, including a balance sheet in such form as
may be prescribed.

(2) The accounts of the Board shall be audited annually by such qualified person as the
Government may appoint in this behalf.

(3) The auditor shall at all reasonable time have access to the books of accounts and other
documents of the Board, and may for the purposes of the audit, call for such explanation and
information as he may require or examine any member or Officer of the Boards.

(4) The accounts of the Board certified by the auditor, together with the audited report thereon
shall be forwarded annually to the Government after it is approved by the corresponding Board.

(5) The Board shall comply with such directions as the Government may after perusal of the
report of the auditor, think fit to issue.

(6) The cost of audit, as determined by the Government, shall be paid out of the funds of the
Board.

14. Recovery of dues to the Board.—(1) On an application made by the Board for the recovery of
arrears of any sum payable to it under this Act or any scheme and on its furnishing a statement of
accounts in respect of such arrears, the Collector may, after making such inquiries as he deems
fit, grant a certificate for the recovery of the amount stated therein to be due as arrears.

(2) A certificate by the Collector shall be final and conclusive as to the arrears due. The arrears
stated to be due therein shall then be recovered as arrears of land revenue by the Collector and
remitted to the Board.

15. Advisory Committee.—(1) Government shall constitute an Advisory Committee in order to

evolve appropriate schemes for the scheduled grouping of employments.

(2) The Advisory Committee shall monitor the functioning of the schemes and Boards in the
State and make suggestions for suitable amendments to the schemes in conformity with the
provisions of this Act.

(3) The Advisory Committee shall consist of such number of members as may be prescribed by
the Government.

(4) The method of selection and terms and conditions of their service shall be such as may be
prescribed.

16. Inspectors.— (1) The Board may appoint such persons as it thinks fit to be Inspectors
possessing the prescribed qualifications for the purpose of this Act or of any scheme and may
define the limits of their jurisdiction.

(2) Subject to any rules made by the Government in this behalf, an Inspector may,—

(a) Enter and search at all reasonable hours, with such assistants as he thinks fit, any premises or
place, where unorganized workers are employed, or work is given out to unorganized workers in
any scheduled employment, for the purpose of examining any register, record of wages or notice
required to be kept or exhibited under any scheme, and require the production thereof, for
inspection;

(b) Examine any person whom he finds in any such premises or place and who, he has
reasonable cause to believe, is a manual worker employed therein or an unorganized worker to
whom work is given out therein;

(c) Require any person giving any work to unorganized sector workers or to a group of
unorganized workers to give any information, which is in his power to give, in respect of the
names and addresses of the persons to whom the work is given, and in respect of payments
made, or to be made, for the said work;

(d) Seize or take copies of such registers, records of wages or notices or portions thereof as he
may consider relevant, in respect of an offence under this Act or scheme, which he has reason to
believe has been committed by an employer; and
(e) Exercise such other powers as may be prescribed:

Provided that the Inspector shall have no power to require anyone to answer any question or
make any statement tending to incriminate him.

(3) Every Inspector appointed under this section shall be deemed to be a public servant within
the meaning of Section 21 of the Indian Penal Code (Act XLV of 1860).

17. Obstructions.—(i) Whoever obstructs an Inspector in the discharge of his duties under this
Act or refuses or willfully neglects to afford the Inspector any reasonable facility for making any
inspection, examination, inquiry or investigation authorized by or under this Act in relation to an
establishment to which, or a contractor to whom, this Act applies, shall be punishable with
imprisonment for a term which may extend to two years, or with a fine which may extend to two
thousand rupees, or with both.

(ii) Whoever willfully refuses to produce on the demand of any Inspector any register or other
document kept in pursuance of this Act or prevents or attempts to prevent or does anything
which he has reason to believe is likely to prevent any person from appearing before or being
examined by any Inspector acting in pursuance of his duties under this Act, shall be punishable
with imprisonment for a term which may extend to two years, or with a fine which may extend to
two thousand rupees or with both.

(iii) Such obstruction or willful refusal shall at once be reported to the respective unit of the
Board within whose jurisdiction such obstruction / willful refusal takes place, as well as to the
Board which may also take appropriate action in accordance with the scheme.

CHAPTER IV

DISPUTE RESOLUTION BODIES AND THEIR CONSTITUTION

18. Resolution of Disputes.—All disputes arising out of the enforcement of the provisions of this
Act shall be resolved only by Dispute Resolution Councils and Appellate authority duly
constituted under this Act.

19. Constitution of Dispute Resolution Councils and Appellate Authority.—(1) Government

shall constitute the Dispute Resolution Council and an Appellate Authority in each District.

(2) The Dispute Resolution Council in every District shall comprise of three members,
representing the Government, the unorganized workers and the employers in each of the
Unorganized Workers Board.
(3) The term of office of the members of the council shall be three years and the members may
be nominated by each Board for such term.

(4) The Appellate authority shall likewise be a tripartite body, representative in composition and
constituted in the same manner by each Board.

20. Reference of Disputes.—(1) Where the appropriate unit of the Board is of the opinion that
dispute exists or is apprehended it may at any time, by order in

writing—

(a) Refer the dispute to the Board for promoting a settlement thereof; or

(b) Refer any matter appearing to be connected with or relevant to the dispute to a Council for
inquiry; or for resolution of the dispute as provided in the Scheme.

(2) No proceeding pending before a Dispute Resolution Council or the Appellate Authority in
relation to a dispute shall lapse merely by reason of the death of any of the parties to the dispute
being a workman, and such council or appellate authority shall complete such proceedings and
submit its award to the appropriate unit of the Board.

CHAPTER V

PROCEDURE, POWERS AND DUTIES OF AUTHORITIES

21. Procedures and powers of Boards, Councils and Appellate Authorities.—(1) Subject to any
rules that may be made in this behalf by the Board, the Dispute Resolution Council or Appellate
Authority shall follow such procedure as may by deemed fit and conforming to principles of
natural justice.

(2) Dispute Resolution Council and the Appellate Authority shall have the same powers as are
vested in civil court under the Code of Civil Procedure, 1908 (5 of 1908), when adjudicating a
dispute in respect of the following matters, namely –

(a) Enforcing the attendance of any person and examining him on oath;

(b) Compelling the production of documents and material objects;

(c) Issuing commissions for the examination of witnesses;

(d) In respect of such other matters as may be prescribed.

(3) Every enquiry or investigation by the Dispute Resolution Council or the Appellate Authority
shall be deemed to be a judicial proceeding within the meaning of Sections 193 and 228 of the
Indian Penal Code (45 of 1860).

(4) Every document in relation to a dispute shall be a public document within the meaning of
Section 76 of the Indian Evidence Act, 1872. Any person interested in the dispute or his
authorized representatives shall have a right to obtain copies of such documents.

(5) The Dispute Resolution Council may enforce the attendance of any person for the purpose of
examination of such person or call for and inspect any document which it has reasons for
considering being relevant to the implementation of any Award or to carrying out any other duty
imposed on it under this Act. For the aforesaid purposes, the Dispute Resolution Council shall
have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of
1908) (in respect of enforcing the attendance of any person and examining him or of compelling
the production of documents).

(6) All members of the Council and the presiding officers of a Council or Appellate Authority
shall be deemed to be public servants within the meaning of Section 21 of the Indian Penal Code.
Subject to any rules made under this Act, the costs of, and incidental to any proceedings before a
Council shall be in the discretion of that Council, which shall have full power to determine by
whom, to whom and to what extent and subject to what conditions, if any, such costs are to be
paid, and to give all necessary directions for the purposes aforesaid and such costs may on
application made to the appropriate Board, by the person entitled, be recovered by the
appropriate Government in such manner as it deems appropriate.

22. Bar of jurisdiction of civil and labour courts.— No civil or labour court shall entertain the
suit or application in respect of any matters arising under this Act or the Scheme.

23. Contravention of provisions regarding employment of Unorganized workers.—Whoever

contravenes any provisions of this Act or of any rules made thereunder regarding the
employment of unorganized workers, or contravenes any other provision under this Act or this
Scheme, shall be punishable with imprisonment for a term which may extend to one year, or with
fine which may extend to one thousand rupees, or with both, and in the case of continuing
contravention, with an additional fine which may extend upto one hundred rupees for every day
during which such contravention continues even after such conviction.

24. Offences by Companies.—(1) Where an offence under this Act or Scheme has been
committed or the provisions thereof have been violated by a company, it shall be presumed that
appropriate instruction has not been issued by the Company for wholesome compliance with the
Act and Scheme unless it is otherwise proved.

(2) Where it is not so proved, every person who, at the time the offence was committed, was in
charge of and was responsible, to the company for the conduct of the business of the company,
as well as the company, shall be deemed to be guilty of the offence and shall be liable to be
proceeded against and punished accordingly.

(3) Where it is so proved, the person who is responsible for such violation shall be proceeded
against and punished accordingly.

(4) Notwithstanding anything contained in sub-section (1), if the commission of the offence
under this Act is attributable to any omission or negligence on the part of the Director, Manager,
Secretary, or other officer of the Company, such Director, Manager, Secretary or other officer
shall be deemed to be guilty of that offence and shall be liable to be proceeded against and
punished accordingly.

Explanation.—For the purposes of this section:

(a) ‘Company’ means any body corporate and includes a partnership firm or other association of
individuals; and

(b) ‘Director’, in relation to a firm, means a partner in the firm. 25. Cognizance of offences.—(1)
Every offence punishable under this Act and the scheme shall be cognizable only by a Judicial
Magistrate not below the rank than a First Class Magistrate of the area concerned.

(2) Whenever any contravention of the provisions of the Act and Scheme takes place, the
Inspector of the Board or any person aggrieved by such contravention may in writing complain
to the Magistrate for taking cognizance of the offence.

(3) Whenever an Inspector without sufficient reason refuses or fails to make a complaint of such
a contravention, the Board, may suo motu or on a report from the person aggrieved, make a
report to the Magistrate in writing to take cognizance of the offence. This will be without
prejudice to such disciplinary action that the Board may cause to be initiated against the
Inspector for his lapse.

26. Power to make Rules.—The Government and its unorganized sector workers boards together
shall have the power to make rules for the purposes of effective functioning of the Scheme. In
particular the Government and its unorganized sector workers boards shall have the power to
make in respect of the following:

(a) The election of representatives of unorganized workers in the unorganized sector workers
boards.

(b) Health, safety and medical facilities, social security and maternity benefits, and unorganized
workers welfare funds.

(c) Enforcement of Provisions of the Act and Scheme, including machinery for such
enforcement.
(d) Provisions in regard to welfare crèches, education and such other social welfare benefits for
the children of unorganized workers.

(e) The conditions of service including recruitment, pay, allowance, tenure, discipline and
appeal, retirement benefits of various categories of employees of the Board and their welfare.

(f) The remuneration or honorarium payable to the Presidents and other Office-bearers of the
Boards.

(g) Provisions for leisure time activities, recreation, library any literacy measures including legal
literacy among unorganized workers.

SCHEDULE I

LIST OF EMPLOYMENTS IN THE UNORGANISED SECTOR

1. Handlooms & PowerLooms, Dyeing

a. handloom weaving of cotton and silk

b. powerloom weaving

c. cloth printing

d. bleaching & dyeing

e. ginning

2. Fish

a. fishing

b. fish selling

c. fishery production

d. fish processing

3. Poultry & Animal Husbandry

a. animal husbandry

b. dairying and allied activities

c. shepherding
4. Tea, Coffee, Rubber, Cashew, Plantation, Processing, Horticulture, Sericulture

a. cashew processing

b. gardening and parks maintenance

c. horticulture and floriculture

d. plantation [other than those covered under Plantations Labour Act, 1951 (Act No.69 of 1951)]

e. sericulture (silk rearing)

5. Forests & Allied Activities

a. forestry operation

* Till special laws are made honey gathering enacted to cover these sectors

b. minor forest produce gathering

c. tendu leaves collection

6. Tree Climbing, Coir

a. coir processing / manufacture

b. toddy tapping

c. coconut peeling

d. tree climbing

7. Home Based Work

a. agarbatti making

b. bindi work

c. masala making

d. matches manufacture

e. pappad making

f. food products and others

8. Vendors

a. hawking and vending

9. Handicrafts

a. blacksmithy

b. goldsmithy

c. pottery

d. artist

e. sculpture

f. cane / reed work

g. carpet weaving

h. chikan work

i. hand embroidery work

j. floral work and garland making and others

10. Services (Traditional & Modern)

a. beautician

b. hair dressing

c. rag picking

d. scavenging

e. shoe shining work

f. laundry work

g. cable TV operation

h. folk arts

i. sound & light service and others

11. Shops & Establishments

a. catering and canteen, hotels and restaurants, bakeries

b. computer and information technology related services

c. courier service
d. distribution of petroleum products

e. electronic and electrical goods repairs

f. health services

g. ngo services

h. packing and packaging

i. security service

j. telephone booth service

k. video & photography and others

12. Transport & Allied

a. transport services (driving, conducting, cleaning etc.)

b. autorickshaw

c. bicycle, automobile, auto, two-wheeler repair and servicing work

d. boat / ferry operation

e. bullock / camel—cart operation

f. rickshaw and tricycle driving and others

13. Salt Pans

a. salt pan work

b. loading & unloading

14. Small Scale & Cottage Industries

a. arrack and liquor production and vending

b. bulb manufacture

c. envelope making

d. fire work / crackers production

e. foundry, engineering works

f. garment manufacture
g. glassware manufacturing

h. lock making

i. plastics manufacture

j. printing press work

k. rice mills, oil mills, dhal mills, flour mill

l. soap manufacture

m. sports goods manufacture

n. steel vessels and utensils and containers manufacture

o. timber industry, furniture manufacturing, saw mills

p. Sago

q. tanning (including hides and skins production), leather goods and footwear manufacture and
others

15. Loading Unloading Goods Sheds, Yards, Markets Etc.

a. headload work

b. cleaning

c. stacking

16. Tailoring Statement of Objects and Reasons

1. Unorganized workers number nearly–crores in Kerala, of which substantial numbers are

women. This sector contributes 65% of the GDP and covers a wide range of occupations such as
agriculture, construction, handlooms & powerlooms, dyeing, fisheries, poultry & animal
husbandry, tea, coffee, rubber, cashew, plantation, processing, horticulture, sericulture, forests
and allied activities, tree climbing, coir, home based work, vendors, handicrafts, services, shops
& establishment, transport & allied, leather, tanning products, salt pans, small scale & cottage
industries, domestic work, production & distribution of culture, art & media, loading &
unloading in goods sheds, yards, markets etc. The unorganized sector is neglected and
unprotected. Thus bonded labour, child labour, exploitation of women labour, poverty and
deprivation are widely prevalent. Also the processes of globalization, liberalization and
mechanization have led to invisible retrenchments, under employment, poverty and mal-nutrition
levels. Hence there is an urgent need for regulation of employment, conditions of service, social
security and welfare of this vast unorganized sector in our country.
2. Unlike the organized sector, there is no fixed employment relationship in the unorganized
sector. The peculiar nature of the unorganized sector is the changing employer–employee
relationships and existence of hierarchy of relationships. The employment is contractual, most
often on a sub-contract basis and is unregulated and thus the workers are unprotected. Thus, to
ensure security of employment and protection of workers, it is imperative to regulate
employment in the unorganized sector. A sizable section of workers are women, hence gender
discrimination must be prevented and maternity entitlements, childcare ensured apart from
preventing sexual harassment at workplaces. Also, there is a large number of self employed
workers, at the mercy of traders and authorities, and being further marginalized facing starvation
due to globalization.

3. Though labour laws enacted to protect sweated labour, such as the Minimum Wages Act,
Contract Labour (Regulation and Abolition) Act etc., are sought to be applied to unorganized
sector workers, they are not capable of being implemented due to the changing employer–
employee relation, inadequacy of labour law administration and the lack of provisions to involve
workers in the implementation or to protect them against victimization.

4. Though social security laws such as the ESI Act, EPF Act, Payment of Gratuity Act etc., have
been sought to be extended to the unorganized sector, constraints in their application have been
experienced due to lack of continuity of employment, the changing employer–employee
relationship and the total lack of records pertaining to details of employment.

5. Thus the major contributing cause to this state of affairs is the total inapplicability of the
normal type of labour laws to the situation obtaining in the unorganized sector.The beneficiaries
of the labour of unorganized workers have thus a collective obligation to meet the human needs
of those, the fruits of whose labour benefit the people at large. If the benefits of labour legislation
are to reach this large mass of workers, it is then necessary that the law should take note of the
unique features of the unorganized sector and should provide not merely for welfare of the
workers, but also for the regulation of employment itself in the unorganized sector. Such
regulation could not be left to be taken care of by the employers or by the administrative
hierarchy, but must be entrusted to an autonomous body statutorily set up and consisting of
representatives of the workers, Government and the employers. 6. The proposed Law intends to
incorporate the following features based on the above stated nature of employment in the
unorganized sector.

(a) Right to livelihood including right over common property and resources;

(b) Minimum Labour Standards to achieve Decent Conditions of Work;

(c) Right of workers in formulation and implementation of schemes through Tripartite Boards at
various levels with workers having decisive voice;
(d) Compulsory registration of the employers and of the workers, identified by registered trade
unions in all the scheduled groupings of employments;

(e) Restriction on employment in the sector to only those workers who are registered under the
law;

(f) Prohibition of employment in unorganized sector by employers, without registration under the
law;

(g) Equitable sharing of the available employment, category-wise, on the basis of rotational
booking of workers;

(h) Employment guarantee for a minimum number of days in a month;

(i) Vesting of the responsibility for determining wages including piece rates to be not less than
the time rated wage for 8 hours and their disbursement in the autonomous body; and

(j) Provision of safety measures and for various other entitlements including social security,
pension, group insurance, relief for accident and natural death and a minimum guarantee of
earnings by the autonomous body;

(k) Provision of ESI, PF, gratuity, maternity entitlement, housing, crèches etc. and steps for
prevention of sexual harassment of women;

(l) Restriction of mechanization and labour displacement strategies and promotion of labour
intensive methods in the unorganized sector;

(m) Inbuilt tripartite dispute resolution mechanism and appellate authority;

(n) Special protection of migrant workers and their families;

(o) Elimination of bonded labour and child labour and ensuring compulsory education of
children in the unorganized sector;

(p) Special measure for prevention of sexual harassment on women workers in workplaces. The
objects and reasons for the Bill is stated above.

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