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IMPORTANT LABOUR AND FACTORY LEGISLATIONS IN INDIA. Raghubar Jha . Acts and Rules. Blend of Acts and Rules Centered on the responsibility of a Factory Manager, Personnel/ HR Manager or self employed Entrepreneur.

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acts and rules
Acts and Rules
  • Blend of Acts and Rules
  • Centered on the responsibility of a Factory Manager, Personnel/ HR Manager or self employed Entrepreneur.
  • Attention has not been made wherever the employer has nothing to do with the provisions but has only to follow the directions of the appropriate govt.

Raghubar Jha

the factories act 1948
THE FACTORIES ACT, 1948
  • Act which makes it obligatory on the part of the employer to provide for the health, safety and welfare of the workers employed.

Raghubar Jha

act extends to the whole of india
Act extends to the whole of India.
  • Applies to every factory wherein 10 or more workers are or were employed, if run with power and 20 or more workers are or were employed, if run without power.
  • Application to factories with fewer workers u/s 85

Raghubar Jha

provides for
PROVIDES for
  • Hours of work (adult) not to exceed 48 hours in a week or 9 hours in a day.
  • Relaxation: Where an adult worker is engaged in urgent repairs.
  • Payment of Overtime wages for overstay at workplace @ twice the ordinary rate of wages.
  • ** Provision relating to hours of work not applicable to supervisory staff.
  • Weekly Holiday: No work for more than 10 days without a day of rest.
  • Intervals of rest: half an hour for 5 hours of work
  • No child (who has not attained the age of 15 years) be permitted to work.
  • Prohibition of employment of Women: No woman shall be employed in any factory for more than 9 hours in any day or between 7 pm and 6 am.

Raghubar Jha

factories act now allows women to work night shifts provided
Factories Act now allows women to work night shifts PROVIDED
  • adequate safeguards in the factory as regards occupational safety and health, equal opportunity for women workers, adequate protection of their dignity, honor and safety and their transportation from the factory premises to the nearest point of their residence" are made.

Raghubar Jha

leave with wages
Leave with Wages
  • @ 1day for every 20 days provided -----

240 days of work during preceding year.

  • Days of lay off, paid holidays or leave days considered
  • Encashment of unavailed leave: Encashable at the present rate of wages.

Raghubar Jha

the occupier employer to maintain a register leave with wages register in form 15
The occupier (Employer) to maintain a register – LEAVE WITH WAGES REGISTER- in FORM 15
  • Provide each employee a Leave Book- thick bound sheet- in FORM 16 (with similar entries as in Form 15)
  • Provide each worker an Attendance Card in form 28 showing the particulars of employment

* shall be substituted by Electronic cards

Raghubar Jha

employer to keep the factory premises clean
EMPLOYER TO KEEP THE FACTORY PREMISES CLEAN
  • white washing at least once in every 14 months
  • repainting or revarnishing every 5 years
  • ensure proper disposal of wastes and effluents
  • Record the dates on which white washing, painting or varnishing done in a register in FORM 7.
  • Ensure provision of sufficient number of Latrines and urinals – separate for gents and ladies
  • Ensure spittoons are provided at adequate places.
  • Ensure workplace has adequate ventilation
  • Avoid overcrowding – ensure 500 cubic feet of space for every worker without reference to any space which is more than 14 feet above the level of the floor of the room.
  • Ensure proper lighting- artificial or natural or both.
  • Ensure supply of uninterrupted supply of Drinking Water.
  • Where the no. of workers is more than 250, provision for cold water in every lunch room, rest room and canteen shall be ensured.

Raghubar Jha

employer to ensure safety of workers
EMPLOYER TO ENSURE SAFETY OF WORKERS
  • Fencing of Machines and Moving parts of machines – spindles, gears, pulleys, belts etc
  • Protection of eyes using screens or goggles from excessive light or infra-red or ultra violet radiations
  • Precaution in case of Fire.
  • No woman or young person shall, unaided by another person, lift, carry or move by hand or head any material or tool exceeding the maximum limit prescribed.
  • * Adult male 75 Kgs
  • * Adult female 30 Kgs
  • * Adolescent male 30 Kgs
  • * Adolescent female 20 Kgs
  • Safety Officer: Appoint a Safety Officer wherein 1000 or more workers are employed.

Raghubar Jha

employer to look after the welfare of employees
EMPLOYER TO LOOK AFTER THE WELFARE OF EMPLOYEES
  • Washing facility separately for women and men
  • Separate rooms for men and women for drying of clothes
  • Separate rest rooms for men and women
  • First Aid boxes equipped with prescribed medicines
  • Ambulance room where 500 or more are employed
  • Canteen for use of workers where 250 or more are employed (150 under Plantation Labour Act)
  • Lunch room where 150 or more are employed
  • Crèches where 30 or more women are employed
  • Appoint WELFARE OFFICER (S) where 500 or more are employed (300 under PLA)
  • The duties, qualification and conditions of service of such welfare officers shall be in accordance with the rules of the respective State Govt.
  • NOTICE OF DANGEROUS OPERATIONS

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registers to be maintained
REGISTERS TO BE MAINTAINED
  • Attendance Register/ Muster roll in form 25
  • Register of Adult Workers in form 12
  • Record of Lime washing, painting etc in form 7
  • Register of Compensatory Holidays in form 9
  • Overtime Muster roll for Exempted workers in form 10
  • Register of Leave with Wages in form 15
  • Health Register in form 17 (in respect of persons employed in occupations declared to be dangerous operations u/s 87)
  • Register of Accidents and Dangerous Occurrences in form 26
  • Particulars of Rooms in the factory in form 35.

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returns to be sent to appropriate authorities
RETURNS TO BE SENT TO APPROPRIATE AUTHORITIES
  • Notice of accidents and dangerous occurrences resulting in death or bodily injury in form 18(similar to the one to be sent ESI Local Office under the ESI Act)
  • Half yearly returns in form 22
  • Annual returns in form 21
  • Notice of change of Manager in form 23
  • Details of closure in form 32
  • Report of examination of Pressure Vessel or Plant in form 8
  • Report of examination of Water sealed Gas holder in form 38
  • Report of Examination of Hoist or Lift in form 41
  • Certificate of Fitness for Dangerous Operations in form 39

Raghubar Jha

the industrial employment standing order act 1946
THE INDUSTRIAL EMPLOYMENT (STANDING ORDER) ACT, 1946
  • Defines the terms and conditions of service between the employer and his employees.
  • Applies to every industrial establishment wherein 100 (in some States 50)or more workers are employed
  • The Act extends to the whole of India

Raghubar Jha

significance
SIGNIFICANCE
  • Terms of appointment order issued to an employee cannot circumvent the provisions of certified standing order. Therefore, it is always desirable to get standing orders drafted and certified as it regulates the relationship between the employer and the employee.

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standing order drafted shall provide for
Standing Order drafted shall provide for
  • Date on which the standing orders shall come in to force and shall remain in force
  • Definitions
  • Classification of workmen as Permanent, Probationer, Badlis, Casual and Trainees

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contd
contd
  • Obligations –
  • not to carryon any other business for gain or to take admission in educational institution without permission
  • to observe strict secrecy of company matters
  • not to take photographs, drawing or documents of the process of manufacture of the company
  • not to carry any lethal weapon, explosive or article dangerous to life or property
  • to follow safety rules in force
  • to inform any change in the address
  • etc

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contd1
contd
  • Medical examination and aid in case of accident
  • Identification of workmen and issue of Identity cards
  • Working time for different categories of workmen
  • Record of age, qualification and experience
  • Entry, exit and liability for security checking
  • Shift working and weekly off
  • Attendance and late coming
  • Methods of applying for different kinds of leave and extension of leave
  • Action for unauthorised absence

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contd2
contd
  • National and festival holidays
  • Transfer
  • Apprehension of danger to the safety and security of factory and its personnels
  • Date of payment of wages/ salary
  • Overtime wages
  • Increment and promotion
  • Stoppage, closing or lay off of establishment and strike
  • Resignation – notice or payment in lieu of notice to be given
  • Termination of employment and notice or payment in lieu of notice required to be served or made

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contd3
contd
  • Deduction from wages for fine imposed or absence from duty or loss caused to the property and recovery of employees contribution to schemes like EPF, ESI and Labour Welfare fund
  • Age of superannuation
  • Grievance procedure
  • Disciplinary action for misconduct
  • Punishment for misconduct and procedure for imposition of punishment

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contd4
contd
  • Service of notice
  • Issue of service certificate
  • Amendment of Standing order
  • Exhibition of Notices – as whether if put in the Notice Board or not

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the maternity benefit act 1961
THE MATERNITY BENEFIT ACT, 1961
  • The Act extends to the whole of India except Jammu & Kashmir
  • Applies to every factory, shop or establishment
  • Woman entitled to maternity benefit not withstanding the application of the Employees State Insurance Act, 1948

Raghubar Jha

employer to ensure
Employer to ensure……
  • No woman works during the six weeks immediately following the day of her delivery or her miscarriage
  • No woman does any arduous work during the period of ten weeks from the expected date of delivery
  • Not to discharge or dismiss a woman during her pregnancy

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eligibility
Eligibility
  • Work of 160 days in the 12 months immediately preceding the date of delivery.
  • Leave days & lay offs taken as worked.

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benefit
Benefit
  • 12 weeks leave of which not more than 6 weeks shall precede the date of her expected delivery
  • The benefit to be paid @ average rate of wages for the three months preceding her maternity leave
  • In case of miscarriage, 6 weeks leave with pay at the same rate as applicable to maternity benefit.

Raghubar Jha

the minimum wages act 1948
THE MINIMUM WAGES ACT, 1948
  • AN ACT TO PREVENT “SWEATED LABOUR AND EXPLOITATION OF LABOUR”
  • The Act extends to the whole of India
  • Requires the Central and State Govt. to fix minimum rates of wages in certain scheduled employment.
  • Minimum wages fixed REVISED from time to time

Raghubar Jha

responsibility of the employer
Responsibility of the Employer
  • to follow the directions and fix wages of the workers at the rate not less than the one fixed
  • to maintain Register of Wages in form XI showing

rate of wages payable,

actual amount paid,

attendance & overtime,

deductions for EPF, ESI and other,

net amount paid,

date of payment and

signature of respective employee.

  • Wages slip in form XIII showing the above details to be given to every employee.

Raghubar Jha

slide28

THE WORKING JOURNALISTS (FIXATION OF RATES OF WAGES) ACT, 1958 Provides for the fixation of wages in respect of Working Journalists and for matters connected therewith

Raghubar Jha

payment of wages act 1936
PAYMENT OF WAGES ACT, 1936
  • An Act to regulate the payment of wages to certain classes of persons
  • Extends to the whole of India
  • Responsibility of payment wages rests with the employer
  • Employer to fix Wage Period
  • No wage period shall exceed one month.

Raghubar Jha

time of payment of wages
Time of Payment of wages
  • 7th day of wage month where less than 1000 are working
  • 10th day where more than 1000 are working
  • No payment in KIND

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permissible deduction from wages
Permissible deduction from Wages
  • fines
  • for absence from duty
  • for damage caused to the property of the employer
  • for the amenities provided, like house accommodation
  • for recovery of advance or adjusting over payment of wages
  • towards EPF, ESI, Labour Welfare Fund and similar deductions permitted under any Act or the Standing Orders of the establishment
  • for Life Insurance/ general insurance policies and Housing loan.

Raghubar Jha

the kerala payment of subsistence allowance act 1972
The Kerala Payment of Subsistence Allowance Act, 1972
  • Act to provide for the payment of subsistence allowance to the employees during the period of suspension
  • Extends to the whole of Kerala

Raghubar Jha

suspension
Suspension
  • Any interim decision of an employer debarring an employee temporarily from attending his office

Raghubar Jha

payment of subsistence allowance
Payment of Subsistence Allowance
  • 50% of wages for the first ninety days of suspension
  • 75% of wages for the period beyond ninety days
  • Full wages for the period beyond one hundred and eighty days

Raghubar Jha

not eligible for subsistence allowance
Not eligible for Subsistence Allowance
  • An employee placed under suspension not entitled for subsistence allowance if he accepts employment during the period of suspension

Raghubar Jha

the payment of bonus act 1965
THE PAYMENT OF BONUS ACT, 1965
  • An Act to provide for the payment of Bonus to persons in certain establishments on the basis of profits, production or productivity.
  • Extends to the whole of India.
  • Applies to every establishment wherein 20 or more are employed
  • The Appropriate Govt. shall apply the Act to any other establishment, including a factory to which the Factories Act, 1948 applies, wherein less than 20 workers are employed provided the number of persons employed is not less than 10.

Raghubar Jha

eligibility to bonus
Eligibility to Bonus
  • employee whose salary/ wages does not exceed Rs 10000 per month
  • who has worked in the establishment for not less than 30 days
  • Not disqualified to claim bonus due to fraud, theft or any other misconduct
  • Bonus of veryperson drawing salary between Rs 3500/- and Rs 10000/- per month shall be calculated as if his salary were Rs 3500 pm

Raghubar Jha

for calculating the number of working days
For calculating the number of working days
  • the days for which the worker has been laid off
  • the days he has been on leave with pay
  • the days he has been absent due to temporary disablement caused by an employment injury
  • the days a woman employee has been on maternity leave

shall be taken in to account.

Raghubar Jha

rate of bonus
Rate of Bonus
  • Minimum :8.33% of salary/wages
  • Maximum 20% of salary/wages
  • Computation of bonus as per Schedule I to IV of the Act.
  • Adjust any interim bonus paid while making payment of the final bonus.

Raghubar Jha

disputes on bonus
Disputes on Bonus
  • The Bonus Act does not provide for any machinery to resolve disputes relating to bonus. For this, the Industrial Dispute Act shall be referred to.

Raghubar Jha

the payment of gratuity act 1972
THE PAYMENT OF GRATUITY ACT, 1972

The Kerala Industrial Employees Payment of Gratuity Act, 1970, followed by the West Bengal Employees Payment of Compulsory Gratuity Act, 1971 and the intention of the other States to have similar Acts in their respective states necessitated the Central Act so as to avoid different treatment to employees of establishments having branches in more than one states who are subject to transfer from one state to another.

Raghubar Jha

the payment of gratuity act 1972 extends to the whole of india
The Payment of Gratuity Act, 1972 extends to the whole of India.
  • Applies to every factory, mine, plantation and other establishment wherein 10 or more workers are employed.

Raghubar Jha

slide43
Gratuity is in the nature of a retirement benefit payable to an employee for a long and meritorious service.
  • It is not paid to an employee gratuitously or merely as a matter of boon. It is paid for the service rendered by him to the employer (Delhi Cloth and General Mills Co; Ltd Vs The Workmen)
  • Then why it should necessarily be denied to him when an employee is dismissed for misconduct at a latter stage of service ???

Raghubar Jha

slide44
Gratuity is payable to an employee on termination of his employment after he has rendered continuous service for not less than five years
  • on his superannuation
  • on his resignation
  • on his death or disablement due to employment injury or disease

Raghubar Jha

news paper employees
News paper employees
  • The Working Journalists and Other Newspaper Employees (Conditions of service) and Miscellaneous Provisions Act, 1955, provides for payment of gratuity.
  • As such, three years of continuous service is required for eligibility for Gratuity.

Raghubar Jha

the payment of gratuity shall be forfeited
The payment of gratuity shall be forfeited
  • to the extent of the damage or loss caused by the employee to the property of the employer
  • where the service of the employee is terminated due to misconduct

Raghubar Jha

rate of gratuity
Rate of gratuity
  • 15 days wages for every completed year of service
  • Rates applicable to Working Journalists depends upon the service of the employee as provided in the Working Journalists and Other Newspaper Employees (Conditions of service) and Miscellaneous Provisions Act, 1955

Raghubar Jha

slide48
The average pay of the monthly rated employee shall be taken by dividing the monthly salary/ wages by 26 and not by 30

Raghubar Jha

piece rate workers and seasonal establishments
Piece rate workers and Seasonal establishments
  • For piece rated workers, average of the three months wages immediately preceding the day of leaving shall be taken as average rate of wage
  • An employee in a seasonal establishment shall be paid @ seven days wages for each season

Raghubar Jha

salary ceiling
Salary ceiling
  • The Amendment Act of 1994 removed the salary ceiling of an employee, but the maximum gratuity payable shall be Rs 3.5 lakh.

Raghubar Jha

slide51
In order to be eligible for gratuity, employee should have at least five continuous years of service with the employer
  • An employee is in service in a calendar year provided he has worked for
    • 190 days in case employee is employed below the ground and
    • 240 days in any other case.

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continuous service contd
Continuous service (contd.)

The days he/she has been

  • laid off under an agreement or under the ID Act or as permitted by the Standing Orders
  • on leave with pay
  • absent due to temporary disablement due to employment injury
  • on maternity leave

shall be taken as worked for the calculation of 190/240 days.

Raghubar Jha

for seasonal employment 75 attendance during a season shall constitute service in a year
For seasonal employment 75% attendance during a season shall constitute service in a year
  • An employee who has worked for 4 years 11 months and 10 days not eligible for gratuity as decided in P. Raghavalu and Sons Vs Additional Labour Court, Andhra Pradesh, as the qualifying phrases ‘part thereof in excess of six months’ shall be taken only for calculation of gratuity and not for determining the eligibility of gratuity.

Raghubar Jha

the interstate migrant workmen regulation of employment and conditions of service act 1979
THE INTERSTATE MIGRANT WORKMEN (REGULATION OF EMPLOYMENT AND CONDITIONS OF SERVICE) ACT 1979
  • Act to regulate the employment of interstate migrant workers and to provide for their conditions of service.

Raghubar Jha

extends to the whole of india
Extends to the whole of India.
  • Applies to every establishment wherein five or more interstate migrant workmen (whether or not in addition to other workmen) are employed and every contractor who employs (whether or not in addition to other workmen) 5 or more interstate migrant worker.

Raghubar Jha

interstate migrant worker
Interstate migrant worker
  • An interstate migrant worker means any personwho is recruited by or through a contractor in the state under an agreementor arrangementfor employment in an establishment in another state, whether with or without the knowledge of the principal employer.

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provides for1
Provides for
  • Registration of establishments employing interstate migrant workmen, licensing of contractors, appointment of licensing officers, prohibition of employment of migrant workmen without registration and duties and obligations of contractors provided under the Act.

Raghubar Jha

employer to ensure1
Employer to ensure
  • Regular payment, equal pay for equal work irrespective of sex, suitable conditions of work, medical facilities, protective clothing etc shall be ensured to such workmen.
  • The contractor to maintain register of migrant employees, send report of accidents, half yearly returns (From 23) and annual returns (Form 24)
  • Employer contravening the provisions liable for punishment of imprisonment or fine or both

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the equal remuneration act 1976
THE EQUAL REMUNERATION ACT, 1976
  • Act provides for the payment of equal remuneration to men and women
  • Extends to the whole of India
  • Act makes it obligatory on the part of employer to pay equal remuneration to men and women workers for same work or work of a similar nature.
  • In order to make the wages equal, prevailing wages shall not be reduced but the higher rate shall be maintained.

Raghubar Jha

no discrimination
No discrimination
  • No discrimination while making recruitment for the same work or work of a similar nature, except where the employment of women in such work is prohibited or restricted by or under any law for the time being in force.
  • Nodiscrimination in any condition of service subsequent to recruitment such as promotions, training or transfer.

Raghubar Jha

the apprentices act 1961
THE APPRENTICES ACT, 1961
  • The Act extends to the whole of India.
  • Applies to those apprentices who are undergoing apprenticeship training in designated trades.
  • From time to time, the Central Govt. has specified the designated trades.

Raghubar Jha

contract of apprenticeship
Contract of apprenticeship
  • A contract of apprenticeship training is entered in to between the employer and the apprentice or, if he is a minor, guardian of the apprentice.
  • The contract of apprenticeship training is to be sent to the Apprenticeship Adviser of the respective area.

Raghubar Jha

termination of training
Termination of training
  • on the expiry of the period of apprenticeship training specified in the contract.
  • Premature termination by employer -

the employer shall pay to the apprentice such compensation as may be prescribed

  • Premature termination by the apprentice

apprentice or his guardian shall refund to the employer as cost of training such amount as may be determined by the Apprenticeship Adviser

Raghubar Jha

number of apprentices
NUMBER OF APPRENTICES
  • Depends on the ratio of trade apprentices to workers other than unskilled workers and the facilities available and that may be made available by the employer for training the apprentices.

Raghubar Jha

duties of the employer
Duties of the employer
  • Make suitable arrangements for imparting practical training
  • Provide for basic training.
  • Where an employer employs 500 or more workers, the basic training shall be imparted in separate part of the workshop building or in a separate building set up by the employer.
  • * the employer may get easy loan from the Govt. for construction of building for conducting training classes

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slide66
ITIs
  • if the number of apprentices to be trained is less than twelve, then the employer may depute such apprentices to any Basic Training Center or Industrial Training Institute run by the Government for basic training in any designated trade.
  • Where an employer deputes any apprentice as above, such employer shall pay to the Government the expenses incurred by the Government on such training, at such rate as may be specified by the Central Government.

Raghubar Jha

ri centre
RI Centre
  • Apprentice to be given Related Instruction course.
  • Time spent by a trade apprentice in attending classes on RIC shall be treated as part of his paid period of work.

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employers to ensure
EMPLOYERS to ensure
  • Placement of Training Officer with suitable qualification
  • Payment of stipend at a rate not less than the prescribed minimum rate
  • Not to pay on the basis of piece work
  • Not to require to take part in any output bonus or other incentive scheme

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employer to ensure contd
Employer to ensure (contd.)
  • HEALTH, SAFETY AND WELFARE OF APPRENTICES
  • Not to requireor allow overtime except with the approval of the Apprenticeship Adviser.
  • In case of employment injurypay compensation in accordance with the provisions of the Workmen's Compensation Act, 1923

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disputes
disputes
  • Any disagreement or dispute between an employer and an apprentice arising out of the contract of apprenticeship shall be referred to the Apprenticeship Adviser for decision.

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obligation for employment
Obligation for employment
  • It shall not be obligatory on the part of the employer to offer any employment to any apprentice who has completed the period of his apprenticeship training in his establishment,
  • nor shall it be obligatory on the part of the apprentice to accept an employment under the employer.

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the workmen s compensation act 1923
THE WORKMEN’S COMPENSATION ACT, 1923
  • The Act provides for payment of compensation to the worker injured during the course of employment or contracted by any occupational disease peculiar to that employment
  • Act extends to the whole of India.

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the amount of compensation
The amount of compensation
  • for accidents resulting in death, an amount equal to fifty per cent of the monthly wages of the deceased workman multiplied by the relevant factor; or an amount of eighty thousand rupees, whichever is more
  • * for permanent total disablement, an amount equal to sixty per cent of the monthly wages of the injured workman multiplied by the relevant factor, or an amount of ninety thousand rupees, whichever is more.

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the maximum compensation as per w c amendment act 2000
The maximum compensation as per W.C. Amendment Act 2000
  • Fatal Injury - Rs.4,57,080
  • Permanent Total Disablement - Rs.5,48,496
  • Permanent Partial Disablement - According to incapacity caused
  • Temporary Disablement - Rs. 2000 per month upto a period of 5 years

Raghubar Jha

esi corporation and workmen compensation
ESI Corporation and Workmen compensation
  • The liability of payment of compensation shifted from the employer to the Employees State Insurance Corporation

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employees state insurance act 1948
EMPLOYEES STATE INSURANCE ACT, 1948

Act extends to the whole of India, However

The ESI Scheme is being implemented area-wise by stages.

The Scheme has already been implemented in different areas in all States/Union Territories except Nagaland, Manipur, Tripura, Sikkim, Arunachal Pradesh and Mizoram and UTs of Delhi, Chandigarh and Pondicherry

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esi act
ESI Act

* Applies to factories and establishments functioning in the notified area and consisting of 10 or more employees.

  * Provides for health care and cash benefits in cases of sickness, maternity and employment injury.

* The Act absolved the employers of their obligations under the Maternity Benefit Act, 1961 and Workmen’s Compensation Act 1923.

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employees covered
Employees covered

All employees drawing salary of Rs 10,000 or less are covered

(w.e.f 1-10-2006)

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contribution
Contribution
  • Employees’ contribution . 1.75% of wages
  • Employers’ contribution. 4.75 % of wages
  • Employees receiving a daily average wage upto Rs.70/-(w.e.f 1-8-07) are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.
  • pay contribution within 21 days.

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contribution period and benefit period
Contribution Period and Benefit Period
  • There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under
  • Contribution period   Corresponding

Benefit period

1st April to 30th Sept.   1st January of the following year

to 30th June

1st Oct. to 31st March1st July to 31st December of

the year following 

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esi benefits
ESI Benefits
  • Medical Benefits
  • Available both to IP and family.
  • Also available to disabled/retired IP
  • Super specialist treatment
  • Sickness BenefitMaternity BenefitDisablement BenefitDependant benefit                               Funeral ExpensesOld age medi careRehabilitation

Raghubar Jha

employer to maintain and file the following books and returns
Employer to maintain and file the following books and returns.
  • 1. Form 7 (Register of Employees showing the details of Gross wages, ESI contribution deducted, Contribution by the Employer and total for the contribution period (six months)
  • 2. Accident book in form 15
  • 3. ESI Declaration in form 1,
  • 4. Return of declaration in form 3
  • 5. Return of Contribution in form 6 for the contribution period (with similar entries as in register of employees Form 7)
  • 6. Accident report in form 16. (similar to Form 18 to be furnished to the Inspector of Factories and Boilers)

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employees provident fund and misc provisions act 1952
EMPLOYEES PROVIDENT FUND AND MISC. PROVISIONS ACT, 1952
  • An Act to provide for the institution of provident funds, pension funds and deposit linked insurance fund for the employees in the factories and other establishments
  • Extends to the whole of India except the State of Jammu and Kashmir

Raghubar Jha

applicability
Applicability
  • Applies to all factories and establishments in which 20 or more are employed
  • Continuity of application
  • Exemption –
  • Where employees get benefits in the nature of provident fund or old age pension fund from the establishment which are not less favourable than the benefits under the Act.

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schemes under the act
Schemes under the Act

Three beneficial schemes-

1.Employees Provident Fund Scheme 1952

2.Employees Pension Scheme 1995

3.Employees Deposit Linked Insurance 1976

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membership
membership
  • An employee at the time of joining the employment and getting wages up to Rs.6500/- is required to become a member.
  • an employee is eligible for membership of fund from the very first date of joining a covered establishment.

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contribution to epf
Contribution to EPF
  • Employees’ share : 12% of the Basic + DA
  • Employer’s contribution : 12% to be deposited as :
  • 8.33% to be deposited in Pension Fund A/C No 10 and
  • the balance, ie, 3.67% to be deposited in Provident Fund A/C No 01 along with Employees’ share of 12%

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contribution contd
Contribution (contd.)
  • Administration charges -
  • @ 1.1% of the total wages/salary disbursed by deposit to A/C No 02,
  • Employees Deposit Linked Insurance @ 0.5% of the total wages/salary by deposit to A/C No. 21 and
  • Administration of EDLI @ 0.01% of the wages/ salary by deposit to A/C. No. 22.

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duties of employer
Duties of employer
  • Employer to furnish information about: (a) Ownership and names of responsible persons of the establishment.(b) Declaration and nomination.(c) Joining and leaving of service by the members in form 5 and form 10 respectively

(d) Form 12A with monthly challans of deposit.(e) Form 9 for details of employees.(f) Form 3A/6A at the end of the financial year.(g) Any other information as may be required under Para 76 of the scheme

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benefits to employees
Benefits to employees
  • Provident Fund Benefits
  • Pension Benefits
  • Death Benefits

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provident fund benefits
Provident Fund Benefits
    • Employer also contributes to Members’ PF @ 3.67% (1.67% in case of sick industry - eg: beedi)
    • EPFO guarantees the Employer contribution and Govt. gives a decent interest to PF accumulations
    • Member can withdraw from this accumulations to cater financial exigencies in life - No need to refund unless misused
  • On resignation, the member can settle the account. i.e., the member gets his PF contribution, Employer Contribution and Interest

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pension benefits
Pension Benefits
  • Pension to Member
  • Pension to Family (on death of member)
  • Scheme Certificate
    • This Certificate shows the service & family details of a member
    • This is issued if the member has not attained the age of 58 while leaving an establishment and he applies for this certificate
    • Member can surrender this certificate while joining another establishment and the service stated in the certificate is added with the service he is gaining from the new establishment.
    • After attaining the age of 50 or above, the member can apply for Pension by surrendering this scheme certificate (if total service is at least 10 years)
    • This is a better choice than Withdrawal Benefit, that if a member dies holding a valid scheme certificate, his family will get pension (Death when NOT in service)

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pension benefit contd
Pension benefit (contd.)
    • Withdrawal Benefit
      • if not eligible for pension, member may withdraw the amount accumulated in his pension account
      • the calculation of this amount is based only on (i) Last average salary and (ii) Service (Not based on actual amount available in Pension Fund Account)
    • No amount is taken from Member to give Pension to the Member. Employer and Govt. contribute to Pension fund @8.33% and @1.16% respectively
    • EPFO guarantees pension to members, even if the Employer has not contributed to Pension Fund.
  • Pension calculation is similar to that of Govt. Employee

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death benefits
Death Benefits
  • Provident Fund Amount to Family (or to Nominee)
  • Pension to Family (or to Parent / Nominee)
  • Capital Return of Pension
  • Insurance (EDLI) amount to Family (or to Nominee)
    • No amount is taken from Member for this facility. Employer contributes for this.
  • Nominee is basically determined as per the information submitted by the member at this office through FORM-2

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the plantation labour act 1951
THE PLANTATION LABOUR ACT 1951
  • AN ACT TO PROVIDE FOR THE WELFARE OF THE LABOUR, AND TO REGULATE THE CONDITIONS OF WORK, IN PLANTATIONS
  • It extends to the whole of India except the State of Jammu and Kashmir

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applicability1
Applicability
  • Applies to any land used or intended to be used for growing tea, coffee, rubber, cinchona or cardamom or any other plant which measures 5 hectares or more and in which 15 or more workers are employed on any day of the preceding 12 months.
  • The State Government by notification can apply this law to any other land even if it measures less than 5 hectares and employs less than 15 workers.

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duties of the employer1
Duties of the Employer
  • Provision of:
  • Drinking Water
  • Separate Toilets for Men and Women
  • Medical facilities to the workmen and their family
  • Canteen where 150 or more workers are employed
  • Crècheswhere 50 or more women workers are employed or where the number of children of women workers is 20 or more
  • Recreational facilities
  • Educational Facilities where children between the ages of six and twelve of workers employed in any plantation exceed twenty five.
  • Housing facility
  • Welfare Officer where three hundred or more workers are employed.

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hours of work and limitations of employment
Hours of work and Limitations of employment
  • Hours of work – 48 hours per week which can be extended to 54 hours with double the rate as overtime wages
  • Weekly holiday
  • Daily intervals of rest
  • Prohibition of employing women workers between 7 pm and 6 am
  • Annual Leave (with wages) @ 1 per 20 days work
  • Sickness and maternity benefits
  • Employer to furnish Notice of Accident
  • Employer to maintain a register of Accidents

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the industrial disputes act 1947
THE INDUSTRIAL DISPUTES ACT, 1947
  • An Act to make provision for the investigation and settlement of industrial disputes, and for certain other purposes.
  • It extends to the whole of India

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industrial dispute
Industrial dispute
  • Any dispute or difference between employers and employers, or between employers and workmen, or between workmen and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labour, of any person.

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authorities under this act
AUTHORITIES UNDER THIS ACT
  • Works Committee
  • Conciliation officers
  • Boards of Conciliation
  • Courts of Inquiry
  • Labour Courts
  • Tribunals
  • National Tribunals

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works committee
Works Committee
  • Where?: Establishments with 100 or more workers
  • Members: Equal number of representatives of the Employer and Employees
  • Objective: promotion of good relationship between employer and employee(s)

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conciliation officers
Conciliation officers
  • Appointed by the appropriate Government
  • Duty: Settlement of industrial disputes.
  • Nature : Appointed for a specified area or for specified industries in a specified area or for one or more specified industries and either permanently or for a limited period.

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boards of conciliation
Boards of Conciliation
  • Appointed by the appropriate Government as occasion arises for settlement of disputes.
  • Board shall consist of an independent Chairman and two or four other members in equal numbers to represent the parties to the dispute

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courts of inquiry
Courts of Inquiry
  • Constituted by the appropriate Government as occasion arises for inquiring into any matter appearing to be connected with or relevant to an industrial dispute

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labour courts
Labour Courts
  • Labour Courts are constituted by the appropriate Govt. for the adjudication of industrial disputes relating to any matter specified in the Second Schedule and for performing such other functions as may be assigned to them under this Act.

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tribunals
Tribunals
  • Tribunalsare constituted by the appropriate Govt. for the adjudication of industrial disputes relating to any matter specified in the Second Schedule or the Third Schedule and for performing such other functions as may be assigned to them under this Act.

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national tribunals
National Tribunals
  • National Tribunals areconstituted by the Central Government for the adjudication of industrial disputes which, in the opinion of the Central Government, involve questions of national importance or are of such a nature that industrial establishments situated in more than one State are likely to be interested in, or affected by such disputes.

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matters within the jurisdiction of labour courts the ii schedule
Matters within the Jurisdiction of Labour Courts (the II Schedule)
  • 1.The propriety or legality of an order passed by an employer under the standing orders;
  • 2.The application and interpretation of standing order;
  • 3.Discharge or dismissal of workmen including re-instatement of, or grant of relief to, workmen wrongfully dismissed;
  • 4.Withdrawal of any customary concession or privilege;
  • 5.Illegality or otherwise of a strike or lock-out; and
  • 6.All matters other than those specified in the Third Schedule.

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matters within the jurisdiction of industrial tribunals the iii schedule
Matters within the Jurisdiction of Industrial Tribunals (the III schedule)
  • 1.Wages, including the period and mode of payment;
  • 2.Compensatory and other allowances;
  • 3.Hours of work and rest intervals;
  • 4.Leave with wages and holidays;
  • 5.Bonus, profit sharing, provident fund and gratuity;
  • 6.Shift working otherwise than in accordance with standing orders;

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iii schedule contd
III schedule (contd.)
  • 7.Classification by grades;
  • 8.Rules of discipline;
  • 9.Rationalisation;
  • 10.Retrenchment of workmen and closure of establishment; and
  • 11.Any other matterthat may be prescribed.

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prohibition of strikes and lock outs
Prohibition of strikes and lock outs
  • Not to strike without giving six weeks notice of strike and during the pendency of any conciliation proceedings
  • Not to declare lock-out without giving to the employees six weeks notice of lock out and during the pendency of any conciliation proceedings
  • A strike or lock-out shall be illegal if it is commenced or declared in contravention of the above.
  • Not to support of any illegal strike or lock-out

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lay off and retrenchment
LAY-OFF AND RETRENCHMENT
  • No workman (other than a badli workman or a casual workman) whose name is borne on the muster-rolls of an industrial establishment wherein 50 or more workers are employed shall be laid-off by his employer except with the prior permission of the appropriate Government.

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lay off compensation
Lay off compensation
  • a workman (other than a badli workman or a casual workman) who has completed one year of continuous service under an employer shall be paid Lay off compensation
  • Lay off compensation shall be equal to fifty per cent of the wages (Basic + DA)
  • Lay off compensation need not be paid for the weekly holidays which may intervene

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continuous service
Continuous Service
  • An employee is in continuous service in a calendar year provided he has worked for
    • 190 days in case employee is employed below the ground and
    • 240 days in any other case.

The days he/she has been

laid off under an agreement or under the ID Act or as permitted by the Standing Orders

on leave with pay

absent due to temporary disablement due to employment injury

on maternity leave

shall be taken as worked for the calculation of

190/240 days.

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workmen not entitled to compensation in certain cases
Workmen not entitled to compensation in certain cases
  • When a worker refuses to accept alternative employment in the same establishment or another establishment owned by the employer and situated in the same village or town or within 5 a radius of miles of the establishment.
  • When a worker does not present himself for work at the establishment at the appointed time during normal working hours at least once a day
  • When such laying-off is due to a strike or slowing-down of production on the part of workmen in another part of the establishment

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retrenchment of workmen
Retrenchment of workmen
  • No workman who has been in continuous service for not less than one year shall be retrenched without giving one month’s notice (three months notice wherein not less than 50 workers are employed) in writing indicating the reasons for retrenchment or
  • if no notice is given, wages in lieu of such notice.
  • Retrenchment of workmen employed in an establishment wherein not less than 50 workers are employed requires permission from the appropriate Govt.

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retrenchment compensation
Retrenchment Compensation
  • Fifteen days average pay for every year (or part thereof in excess of six months) of his service
  • THIS IS APART FROM THE GRATUITY PAYABLE UNDER THE PAYMENT OF GRATUITY ACT

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compensation to workmen in case of transfer of undertakings
Compensation to workmen in case of transfer of undertakings
  • every workman shall be entitled to notice and compensation as if the workman had been retrenched.

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no compensation on transfer provided
No compensation on transfer provided
  • 1 . the service of the workman has not been interrupted by such transfer;
  • 2 . the terms and conditions of service applicable to the workman after such transfer are not in any way less favourable to the workman  
  • 3 . the new employer takes in to account the continuous service of the workman.

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notice to be given of intention to close down any undertaking
Notice to be given of intention to close down any undertaking
  • An employer who intends to close down an undertaking shall give at least sixty days notice (Ninety days wherein not less than 50 workers are employed) to the appropriate government stating clearly the reasons for the intended closure of the undertaking:
  • This section shall not apply to-
  •         (a) an undertaking in which less than fifty workmen are or were employed, or
  • (b) an undertaking set up for the construction of buildings, bridges, roads, canals, dams or for other construction work or project.

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compensation to workmen in case of closing down of undertakings
Compensation to workmen in case of closing down of undertakings
  • Compensation be paid as if workmen are retrenched
  •    However no compensation is payable if the establishment is closed down on account of unavoidable circumstances beyond the control of the employer

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these shall not constitute circumstances beyond the control
These shall not constitute circumstances beyond the control…
  • financial difficulties (including financial losses); or
  • accumulation of undisputed off stocks; or
  • the expiry of the period of the lease or license granted to it; or
  • in case where the undertaking is engaged in mining operations, exhaustion of the minerals in the area in which operations are carried on

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procedure for retrenchment and re employment
Procedure for retrenchment and re employment
  • Retrench the last worker to be appointed under a particular category first
  • For re-employment, retrenched worker shall have preference over other persons

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recovery of money due from an employer section 33 c of id act
RECOVERY OF MONEY DUE FROM AN EMPLOYER (section 33 C of ID Act)
  • Any sum due from the employer under a settlement or an award is recoverable in the same manner as an arrear of land revenue
  • Application by the employee to be received within ONE year.
  • Any sum capable of being computed in terms of money shall be recovered from the employer with the intervention of Labour Court.

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unfair labour practices on the part of employers
UNFAIR LABOUR PRACTICESOn the part of employers
  • threatening workmen with discharge or dismissal, if they join a trade union
  • threatening a lock-out or closure, if a trade union is organised
  • granting wage increase to workmen at crucial periods of trade union organisation, with a view to undermining the efforts of the trade union at organisation
  • an employer taking an active interest in organising a trade, union of his workmen

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unfair employer contd
Unfair-employer (contd.)
  • To establish employer-sponsored trade unions of workmen
  • discharging or punishing a workman, because he urged other workmen to join or organise a trade union
  • discharging or dismissing a workman for taking part in any strike (not being a strike which it deemed to be an illegal strike under this Act)
  • changing seniority rating of workmen because of trade union activities

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unfair employer contd1
Unfair-employer (contd.)
  • refusing to promote workmen to higher posts on account of their trade union activities
  • giving unmerited promotions to certain workmen with a view to creating friction amongst other workmen, or to undermine the strength of their trade union
  • discharging office bearers or active members of the trade union on account of their trade union activities

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unfair employer contd2
Unfair-employer (contd.)
  • To discharge or dismiss workmen –
  • by way of victimisation;
  • by falsely implicating a workman in a criminal case on false or fabricated evidence;
  • on untrue allegations of absence without leave;
  • in utter disregard of the principles of natural justice in the conduct of domestic enquiry or with undue haste;
  • for misconduct of a minor or technical character, without having any regard to the nature of the particular misconduct or the past record of service of the workman.

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unfair employer contd3
Unfair-employer (contd.)
  • To abolish the work of a regular nature being done by workmen, and to give such work to contractors as a measure of breaking a strike.
  • To transfer a workman mala fide from one place to another, under the excuse of following management policy.
  • To insist upon individual workmen, who are on a legal strike to sign a good conduct bond, as a precondition to allowing them to resume work.

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unfair employer contd4
Unfair-employer (contd.)
  • To show favoritism or partiality to one set of workers regardless of merit.
  • To employ workmen as "badlis" casuals or temporaries and to continue them as such for years, with the object of depriving them of the status and privileges of permanent workmen.
  • To discharge or discriminate against any workman for filing charges or testifying against an employer in any enquiry or proceeding relating to any industrial dispute.

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unfair employer contd5
Unfair-employer (contd.)
  • To recruit workmen during a strike which is not an illegal strike.
  • Failure to implement award, settlement or agreement.
  • To indulge in acts of force or violence.
  • To refuse to bargain collectively, in good faith with the recognised trade unions.
  • Proposing or continuing a lock-out deemed to be illegal under this Act

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unfair labour practices on the part of workmen
UNFAIR LABOUR PRACTICESOn the part of workmen
  • advise, support or instigate any strike deemed to be illegal under this Act.
  • coerce workmen to join a trade union or refrain from joining any trade union,
  • picket in such a manner that non-striking workmen are physically debarred from entering the work places
  • indulge in acts of force or violence or intimidation in connection with a strike against non-striking workmen or against managerial staff

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unfair employee contd
Unfair- employee (contd.)
  • For a recognised union to refuse to bargain collectively in good faith with the employer.
  • To indulge in coercive activities against certification of bargaining representative.
  • To stage, encourage or instigate such forms of coercive actions as willful "go slow", squat on the work premises or "gherao" of any of the members of the managerial or other staff.
  • To stage demonstrations at the residences of the employers or the managerial staff members.

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unfair employee contd1
Unfair- employee (contd.)
  • To motivate or indulge in willful damage to employer's property.
  • To indulge in acts of force or violence or to hold out threats of intimidation against any workman with a view to preventing him from attending work.

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the trade unions act 1926
The Trade Unions Act, 1926
  • An act to provide for the registration of Trade Unions and in certain respects to define the law relating to registered Trade Unions.
  • It extends to the Whole of India

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registration
Registration
  • The minimum number of workers to form a registered Trade Union is 10% or 100 whichever is less, subject to a minimum of 7 workers.
  • Ensure that the number of members does not fall down the above requirement.

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sale promotion employees conditions of service act 1976
Sale Promotion Employees (Conditions of Service) Act, 1976
  • An Act to regulate certain conditions of service of sales promotion employees in certain establishments, in the first instance, engaged in pharmaceutical industry
  • It extends to the whole of India

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application of certain acts
APPLICATION OF CERTAIN ACTS
  • Provides for APPLICATION OF CERTAIN ACTS, such as Workmen's Compensation Act, 1923, Industrial Disputes Act, 1947, Minimum Wages Act, 1948, Maternity Benefit Act, 1961, Payment of Bonus Act, 1965 and Payment of Gratuity Act, 1972TO SALES PROMOTION EMPLOYEES

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thank you
THANK YOU

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