Labour_law

(1)

IMPORTANT LABOUR AND FACTORY LEGISLATIONS IN INDIA

1) 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.

1) 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.

• 1) 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

2) 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.

3) **

3) Provision relating to hours of work not applicable to supervisory staff.**

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.

4)

4) 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.

5)

5) 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.

6)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

(2)

• * shall be substituted by Electronic cards

7)

EMPLOYER TO KEEP THE FACTORY PREMISES CLEAN

1. white washing at least once in every 14 months

2. repainting or revarnishing every 5 years

3. r disposal of wastes and effluents

4. Record the dates on which white washing, painting or varnishing done in a

register in FORM 7.

5. Ensure provision of sufficient number of Latrines and urinals – separate for gents

and ladies

6. Ensure spittoons are provided at adequate places.

7. Ensure workplace has adequate ventilation

8. 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.

9. Ensure proper lighting- artificial or natural or both.

10. 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.

8) EMPLOYER TO ENSURE SAFETY OF WORKERS

1. Fencing of Machines and Moving parts

Fencing of Machines and Moving parts

of machines – spindles, gears, pulleys,

belts etc

2. Protection of eyes using screens or

Protection of eyes using screens or

goggles from excessive light or infra-red or

ultra violet radiations

3. Precaution in case of Fire.

4. No woman or young person shall,

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.

9) EMPLOYER TO LOOK AFTER THE WELFARE OF EMPLOYEES

1. Washing facility separately for women and men

2. Separate rooms for men and women for drying of clothes

3. Separate rest rooms for men and women

4. First Aid boxes equipped with prescribed medicines

5. Ambulance room where 500 or more are employed

6. Canteen for use of workers where 250 or more are employed (150 under

Plantation Labour Act)

7. Lunch room where 150 or more are employed

8. Crèches where 30 or more women are employed

9. Appoint WELFARE OFFICER (S) where 500 or more are employed (300 under

PLA)

10.

10. The duties, qualification and conditions of service of such welfare officers

The duties, qualification and conditions of service of such welfare officers

shall be in accordance with the rules of the respective State Govt.

(3)

11. NOTICE OF DANGEROUS OPERATIONS

10) REGISTERS TO BE MAINTAINED

1. Attendance Register/ Muster roll in form 25

2. Register of Adult Workers in form 12

3. Record of Lime washing, painting etc in form 7

4. Register of Compensatory Holidays in form 9

5. Overtime Muster roll for Exempted workers in form 10

6. Register of Leave with Wages in form 15

7. Health Register in form 17 (in respect of persons employed in occupations

declared to be dangerous operations u/s 87)

8. Register of Accidents and Dangerous Occurrences in form 26

9. Particulars of Rooms in the factory in form 35.

11) RETURNS TO BE SENT TO APPROPRIATE AUTHORITIES

1. 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)

2. Half yearly returns in form 22

3. Annual returns in form 21

4. Notice of change of Manager in form 23

5. Details of closure in form 32

6. Report of examination of Pressure Vessel or Plant in form 8

7. Report of examination of Water sealed Gas holder in form 38

8. Report of Examination of Hoist or Lift in form 41

9. Certificate of Fitness for Dangerous Operations in form 39

2) THE INDUSTRIAL EMPLOYMENT (STANDING ORDER) ACT, 1946

1. Defines the terms and

Defines the terms and

conditions of service between the employer and his

employees.

2. Applies to every industrial

Applies to every industrial

establishment wherein 100 (in some States 50)or

more workers are employed

3. The Act extends to the whole of

The Act extends to the whole of

India

1 ) 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.

2) 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

4) Obligations –

1. not to carryon any other business for gain or to take admission in educational

institution without permission

(4)

3. not to take photographs, drawing or documents of the process of manufacture of

the company

4. not to carry any lethal weapon, explosive or article dangerous to life or property

5. to follow safety rules in force

6. to inform any change in the address

7. Medical examination and aid in case of accident

8. Identification of workmen and issue of Identity cards

9. Working time for different categories of workmen

10. Record of age, qualification and experience

11. Entry, exit and liability for security checking

12. Shift working and weekly off

13. Attendance and late coming

14. Methods of applying for different kinds of leave and extension of leave

15. Action for unauthorised absence

16. National and festival holidays

17. Transfer

18. Apprehension of danger to the safety and security of factory and its personnels

19. Date of payment of wages/ salary

20. Overtime wages

21. Increment and promotion

22. Stoppage, closing or lay off of establishment and strike

23. Resignation – notice or payment in lieu of notice to be given

24. Termination of employment and notice or payment in lieu of notice required

to be served or made

25. 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

26. Age of superannuation

27. Grievance procedure

28. Disciplinary action for misconduct

29. Punishment for misconduct and procedure for imposition of punishment

30. Service of notice

31. Issue of service certificate

32. Amendment of Standing order

33. Exhibition of Notices – as whether if put in the Notice Board or not

3) 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

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

(5)

Eligibility:

• Work of 160 days in the 12 months immediately preceding the date of delivery.

• Leave days & lay offs taken as worked.

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.

4 ) THE MINIMUM WAGES ACT, 1948

1. AN ACT TO PREVENT “SWEATED LABOUR AND EXPLOITATION OF

LABOUR”

2. The Act extends to the whole of India

3. Requires the Central and State Govt. to fix minimum rates of wages in certain

scheduled employment.

4. Minimum wages fixed REVISED from time to time

Responsibility of the Employer :

1. to follow the directions and fix wages of the workers at the rate not less than

the one fixed

2. 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.

3. Wages slip in

form XIII

showing the above details to be given to every

employee.

5) THE WORKING JOURNALISTS (FIXATION OF RATES OF WAGES)

THE WORKING JOURNALISTS (FIXATION OF RATES OF WAGES)

ACT, 1958

Provides for the fixatio

n of wages in respect of Working Journalists

and for matters connected therewith

6)

6) PAYMENT OF WAGES ACT, 1936

• An Act to regulate the

An Act to regulate the

payment of wages to certain classes of persons

• Extends to the whole of India

• Responsibility of payment

Responsibility of payment

wages rests with the employer

• Employer to fix Wage Period

(6)

1)

Time of Payment of wages

1.

7

7 th

th

day

of wage month where

less than 1000 are working

2.

10

10 th

th

day

where

more than 1000 are working

3. No payment in KIND

2)

Permissible deduction from Wages

i. fines

ii. for absence from duty

iii. for damage caused to the property of the employer

iv. for the amenities provided, like house accommodation

v. for recovery of advance or adjusting over payment of wages

vi. towards EPF, ESI, Labour Welfare Fund and similar deductions permitted

under any Act or the Standing Orders of the establishment

vii. for Life Insurance/ general insurance policies and Housing loan.

****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

***3)

Suspension

Any interim decision of an employer debarring an employee temporarily from

attending his office

***4 )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

Not eligible for Subsistence Allowance:

An employee placed under suspension not

entitled for subsistence allowance if he accepts employment during the period of

suspension

7) THE PAYMENT OF BONUS ACT, 1965

i. An Act to provide for the payment of Bonus to persons in certain

establishments on the basis of profits, production or productivity.

ii. Extends to the whole of India.

iii. Applies to every establishment wherein 20 or more are employed

iv. 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.

Eligibility to Bonus

i. employee whose salary/ wages does not exceed Rs 10000 per month

ii. who has worked in the establishment for not less than 30 days

(7)

iii. Not disqualified to claim bonus due to fraud, theft or any other misconduct

iv. Bonus of very person drawing salary between Rs 3500/- and Rs 10000/- per

month shall be calculated as if his salary were Rs 3500 pm

For calculating the number of working days

i. the days for which the worker has been laid off

ii. the days he has been on leave with pay

iii. the days he has been absent due to temporary disablement caused by an

employment injury

iv. the days a woman employee has been on maternity leave

v. shall be taken in to account.

Rate of Bonus

i. Minimum :8.33% of salary/wages

ii. Maximum 20% of salary/wages

iii. Computation of bonus as per Schedule I to IV of the Act.

iv. Adjust any interim bonus paid while making payment of the final bonus.

Disputes on Bonus

The BonThe Bonus Act does not provide for any machinery to resolve disputes relating

to bonus. For this, the Industrial Dispute Act shall be referred to.us A

ct

does not

provide for any machinery to resolve disputes relating to bonus. For this,

t

he Industrial

Dispute Act shall be referred to.

8) 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.)

1) 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.

2) 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 ???

3) 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

(8)

4) 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.

5) 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

6) 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

****The average pay of the monthly rated employee shall be taken by dividing the

monthly salary/ wages by 26 and not by 30

7) 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

8) Salary ceiling

i. The Amendment Act of 1994 removed the salary ceiling of an employee, but the

maximum gratuity payable shall be Rs 3.5 lakh.In order to be eligible for

gratuity, employee should have at least five continuous years of service with

the employer

ii. 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.

(iii)The days he/she has been

Continuous service (contd.)

• 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

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

(v) 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’

(9)

shall be taken only for calculation of gratuity and not for determining the

eligibility of gratuity.

9) 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.

1) 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.

2) Interstate migrant worker

An interstate migrant worker means any

person

who is

recruited by

or through

a

contractor in the state under an agreement

or arrangement

for employment

in an

establishment

in another state

, whether with or without the knowledge of the principal

employer.

3) Provides for

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.

4) 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

10) 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.

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.

• No discrimination in any condition of service subsequent to recruitment such as

promotions, training or transfer.

(10)

11) 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.

1) 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.

2) 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

3) 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.

4) 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

5) 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.

6) 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.

(11)

7) 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

8) HEALTH, SAFETY AND WELFARE OF APPRENTICES

• Not to require or allow overtime except with the approval of the Apprenticeship

Adviser.

• In case of employment injury pay compensation in accordance with the provisions

of the Workmen's Compensation Act, 1923

9) 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.

10) 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.

12) THE WORKMEN’S COMPENSATION ACT, 1923

i. 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

ii. Act extends to the whole of India.

iii. The amount of compensation

iv. 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

v. * 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.

****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

• take p frob below

ESI Corporation and Workmen compensation

The liability of payment of compensation shifted from the employer to the Employees

State Insurance Corporation

(12)

13) 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

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.

Employees covered

All employees drawing salary of Rs 10,000 or less are covered (w.e.f 1-10-2006)

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.

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 March 1st July to 31st December of the year following

ESI Benefits

1) Medical Benefits

2)Available both to IP and family.

3) Also available to disabled/retired IP

4) Super specialist treatment

5) Sickness Benefit

6) Maternity Benefit

7) Disablement Benefit

8)Dependant benefit

9) Funeral Expenses

10) Old age medi care

11) Rehabilitation

**** 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 ofGross wages, ESI contribution

deducted, Contribution by the Employer and total for the contribution period (six

months)

(13)

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)

14) 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

1) Applicability :

• Applies to all factories and

Applies to all factories and

establishments in which 20 or more are employed

• Continuity of application

2) 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.

3) Schemes under the Act

Three beneficial

schemes-1.Employees Provident Fund Scheme 1952

2.Employees Pension Scheme 1995

3.Employees Deposit Linked Insurance 1976

4) 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.

5) Contribution to EPF

• Employees’ share : 12% of the

Employees’ share : 12% of the

Basic + DA

• Employer’s contribution : 12%

Employer’s contribution : 12%

to be deposited as :

• 8.33% to be deposited in

8.33% to be deposited in

Pension Fund A/C No 10 and

• The balance, ie, 3.67% to be

The balance, ie, 3.67% to be

deposited in Provident Fund A/C No 01 along with

Employees’ share of 12%

******

6) Administration charges : -

6) Administration charges :

-•

@ 1.1% of the total

wages/salary disbursed by deposit to A/C No 02,

• Employees Deposit Linked

Employees Deposit Linked

Insurance @ 0.5% of the total wages/salary by deposit

to A/C No. 21 and

• Administration of EDLI

Administration of EDLI

@ 0.01% of the wages/ salary by deposit to A/C. No. 22.

7) Duties of employer

:-Employer to furnish information about:

(14)

(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

8) Benefits to employees

1. Provident Fund Benefits

2. Pension Benefits

3. Death Benefits

1) 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

2) Pension Benefits

i. Pension to Member

ii. Pension to Family (on death of member)

iii. 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)

iv. 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.

(15)

3) 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

15 ) 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

1) 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.

2) Duties of the Employer

Provision of:

1) Drinking Water

2) Separate Toilets for Men and Women

3) Medical facilities to the workmen and their family

4) Canteen where 150 or more workers are employed

5) Crèches where 30(EL Book)- 50 or more women workers are employed or where the

number of children of women workers is 20 or more

6) Recreational facilities

7) Educational Facilities where children between the ages of six and twelve of workers

employed in any plantation exceed twenty five.

8) Housing facility

9) Welfare Officer where three hundred or more workers are employed.

3) Hours of work and Limitations of employment

1) Hours of work – 48 hours per week which can be extended to 54 hours with double the

rate as overtime wages

2) Weekly holiday

3) Daily intervals of rest

4) Prohibition of employing women workers between 7 pm and 6 am

4) Annual Leave (with wages) @ 1 per

20 days work

1) Sickness and maternity benefits

(16)

3) Employer to maintain a register of Accidents

16) 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

**** 1) 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.

2) AUTHORITIES UNDER THIS ACT

1) Works Committee

2)Conciliation officers

3) Boards of Conciliation

4) Courts of Inquiry

5) Labour Courts

6) Tribunals

7) National Tribunals

3) 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)

4) Conciliation officers i

Boards of Conciliation

1) Appointed by the appropriate Government as occasion arises for settlement of

disputes.

2) Board shall consist of an independent Chairman and two or four other members in

equal numbers to represent the parties to the dispute

3) Courts of Inquiry

4) Constituted by the appropriate Government as occasion arises for inquiring into any

matter appearing to be connected with or relevant to an industrial dispute

***** 5) 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.

6) Tribunals

Tribunals are 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.

****** 7) National Tribunals

(17)

National Tribunals are constituted 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.

****** 8) 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.

****** 9) 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;

7.Classification by grades;

8.Rules of discipline;

9.Rationalisation;

10.Retrenchment of workmen and closure of establishment; and

11.Any other matter that may be prescribed.

****** 10) Prohibition of strikes and lock outs

1) Not to strike without giving six weeks notice of strike and during the pendency of any

conciliation proceedings

2) Not to declare lock-out without giving to the employees six weeks notice of lock out

and during the pendency of any conciliation proceedings

3) A strike or lock-out shall be illegal if it is commenced or declared in contravention of

the above.

4) Not to support of any illegal strike or lock-out

11) 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.

1) 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

2) Lay off compensation shall be equal to fifty per cent of the wages (Basic + DA)

3) Lay off compensation need not be paid for the weekly holidays which may

intervene

(18)

**** Continuous Service

1) 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

2) 240 days in any other case.

3) The days he/she has been

laid off

under an agreement or under the ID Act or as

permitted by the Standing Orders

(i)

on leave with pay

(ii)absent due

to temporary disablement due to

employment injury or maternity

leave

(iii)

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

12) Workmen not entitled to compensation in certain cases

1) When a worker

refuses to accept

alternative employment in the same

establishment

or a

nother establishment

owned by the employer and situated in the

same village or town or within 5 a radius of miles of the establishment.

2) 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

3) 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

13) Retrenchment of workmen

• No workman who has been in continuous service for

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.

if no notice is given, wages in lieu of such notice.

• Retrenchment of workmen employed in an establishment wherein not less than 50

Retrenchment of workmen employed in an establishment wherein not less than 50

workers are employed requires permission from the appropr

workers are employed requires permission from the appropriate Govt.

14) Retrenchment Compensation

• Fifteen days average pay

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

15) 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.

16) 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.

17) Notice to be given of intention to close down any undertaking

(19)

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.

Compensation:

1) Compensation to workmen in case of closing down of undertakings

2) Compensation be paid as if workmen are retrenched

3) However no compensation is payable if the establishment is closed down on account

of unavoidable circumstances beyond the control of the employer

4) These shall not constitute circumstances beyond the control…

5) financial difficulties (including financial losses); or

6) accumulation of undisputed off stocks; or

7) the expiry of the period of the lease or license granted to it; or

8)

In case where the undertaking is engaged in mining operations, exhaustion of the

minerals in the area in which operations are carried on

Procedure for retrenchment and re employment

1) Retrench the last worker to be appointed under a particular category first

2) For re-employment, retrenched worker shall have preference over other persons

17) RECOVERY OF MONEY DUE FROM AN EMPLOYER (section 33 C of ID

Act)

1) Any sum due from the

employer under a settlement or an award is recoverable in the

same manner as an arrear of land revenue

2) Application by the

employee to be received within ONE year.

3) Any sum capable of being

computed in terms of money shall be recovered from the

employer with the intervention of Labour Court.

18) UNFAIR LABOUR PRACTICESOn the part of employers

1) threatening workmen with discharge or dismissal, if they join a trade union.

2) threatening a lock-out or closure, if a trade union is organised .

3) 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.

4)an employer taking an active interest in organising a trade, union of his workmen.

5) To establish employer-sponsored trade unions of workmen.

6) Discharging or punishing a workman, because he urged other workmen to join or

organise a trade union

7) 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)

8) Changing seniority rating of workmen because of trade union activities.

9) Refusing to promote workmen to higher posts on account of their trade union activities

10) Giving unmerited promotions to certain workmen with a view to creating friction

amongst other workmen, or to undermine the strength of their trade union.

Labour_law

IMPORTANT LABOUR AND FACTORY LEGISLATIONS IN INDIA

IMPORTANT LABOUR AND FACTORY LEGISLATIONS IN INDIA

1) 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.

1) THE FACTORIES ACT,

1) THE FACTORIES ACT,

1948

1948

•

Act which makes it obligatory on the part of the employer to provide for the

health, safety and welfare of the workers employed.

•

1) 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

2) 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.

3) **

3) ** Provision relating to hours of work not applicable to supervisory staff.

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.

4)

4) 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.

5)

5) 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.

6)The occupier (Employer) to maintain a register – LEAVE WITH WAGES

6)The occupier (Employer) to maintain a register – LEAVE WITH WAGES

REGISTER- in FORM 15

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

7)

7)

EMPLOYER TO KEEP THE FACTORY PREMISES CLEAN

3) Provision relating to hours of work not applicable to supervisory staff.**