introduction to medical Treatment and intersection with law

 3.1.1 Industry
 Industry means any business, trade,
undertaking, manufacture or
calling(occupation or profession) of
employers and includes any calling, service,
employment, handicraft or industrial
occupation or avocation of workmen.(S.2(j)
 In a case of Bangalore water supply v/s A.
Rajappa, [AIR 1978 S.C. 548] the Supreme
Court of India enlarged the scope of the
definition of industry. According to the
Supreme Court, this term would cover
professionals like those of lawyers,
chartered accounts, etc., clubs, educational
institutions like universities, co-operatives,
research institutes, charitable hospitals,
projects, etc., if they satisfy the tests
mentioned below:
 Systematic activities;
 Co-operation between
employer and employees for
the production and /or
distribution of goods and
services calculated to satisfy
human wants and wishes, not
being spiritual and religious.
Legal Aspects of Hospital Management – Dr. B.G. Maniar
 Motive is immaterial 

 It has covered almost all the activities from
barber‘s shops to big steel companies except
domestic employment.
3.1.2 Industrial Dispute
Any dispute or difference between
employers and employers, or
employers and employees, or
employees and employees,
connected with the employment or non
employment or the terms and conditions of the
employment of any person.(S.2(k).
It can be raised collectively or supported by a trade
union or a substantial number of fellow workers
only, except in the cases of dismissal, discharge,
retrenchment or termination of services of a

(S. 2A)

3.1.3 Workman
 Every person employed in an establishment
for hire or reward, to do any manual,
clerical, skilled, unskilled, technical,
operational or supervisory work, is covered
under the Act. However, the Act does not
apply to –
Legal Aspects of Hospital Management – Dr. B.G. Maniar
o Persons employed mainly in a
managerial or administrative
o persons employed in a supervisory
capacity and drawing wages
exceeding Rs. 1600/- p.m. (Rs.
10,000/- is proposed) or exercising
function mainly of managerial
nature, and
o Persons subject to Army Act, Air
Force Act, Navy Act or those
employed in the police service or as
an officer or employee of a prison.
(Sec. 2 (s)
 Prima Facie test is master-servant

  There must be supervisory control on
employee, not only in the matter of directing
what work to be done but also the manner in
which to be done. (Dhrangadhra Chemical
Works Ltd. v. State of Saurashtra, AIR 1957
SC 264)
 A teacher is not a workman u/s 2(s) of the
 The designation of an employee is not the
criterion to determine the status of an
employee as to whether he is a workman or
 The test is the nature of the duties of an
 The doctor is a workman.

Legal Aspects of Hospital Management – Dr. B.G. Maniar
3.1.4 Notice of Change

 No change in the conditions of services
specified in the IV Schedule of the Act
without giving at least 21 days notice in
form E to the concerned workman. ( S. 9A ) 

 Schedule IV covers wages, allowances,
contribution to P.F., pension fund, hours of
work, rest intervals, leaves, holidays,
timings of shifts, classification of grades,
 No notice is necessary, if the change is due
to any settlement or award or Government
3.1.5 Settlement of Disputes
 Works Committee – Where in 100 or
more workmen are employed or were
employed on any day of the preceding
twelve months (for resolving collective
disputes through negotiations.) –S.3.
 Grievance Settlement Authority (G.S.A.)
– wherein 50 or more workmen are
employed or were employed on any day
of the preceding twelve months for
settlement of individual dispute of
 No dispute shall be referred for
adjudication unless it is referred to
G.S.A. previously and not settled there.
Legal Aspects of Hospital Management – Dr. B.G. Maniar
(S. 9C)
 The task is basically advisory in nature
and inside the industrial premises.

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