IMPORTANT LABOUR AND FACTORY LEGISLATIONS IN INDIA

1
IMPORTANT LABOUR AND FACTORY LEGISLATIONS IN
INDIA

• Raghubar Jha

2
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.

3
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.

4
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

5
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 _at_ 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.

6
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.

7
Leave with Wages

• _at_ 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.

8
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

9
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.

10
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.

11
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

12
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.

13
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

14
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

15
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.

16
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

17
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

18
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

19
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

20
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

21
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

22
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

23
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

24
Eligibility

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

25
Benefit

• 12 weeks leave of which not more than 6 weeks
  shall precede the date of her expected delivery
• The benefit to be paid _at_ 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.

26
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

27
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.

28
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
29
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.

30
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

31
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.

32
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

33
Suspension

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

34
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

35
Not eligible for Subsistence Allowance

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

36
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.

37
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 very person drawing salary between Rs
  3500/- and Rs 10000/- per month shall be
  calculated as if his salary were Rs 3500 pm

38
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.

39
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.

40
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.

41
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.

42
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.

43
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 ???

44
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

45
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.

46
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

47
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

48
The average pay of the monthly rated
employee shall be taken by dividing the monthly
salary/ wages by 26 and not by 30
49
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 _at_ seven days wages for each season

50
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.

51
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.

52
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.

53
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.

54
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.

55
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.

56
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.

57
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.

58
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

59
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.

60
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.

61
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.

62
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.

63
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

64
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.

65
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

66
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.

67
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.

68
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

69
Employer to ensure (contd.)

• 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

70
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.

71
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.

72
THE WORKMENS 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.

73
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.

74
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

75
ESI Corporation and Workmen compensation

• The liability of payment of compensation shifted
  from the employer to the Employees State
  Insurance Corporation

76
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

77
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 Workmens Compensation Act 1923.

78
Employees covered

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

79
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.

80
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      

81
ESI Benefits

•   Medical Benefits
• Available both to IP and family.
• Also available to disabled/retired
  IP
• Super specialist treatment
•   Sickness Benefit  Maternity Benefit 
  Disablement Benefit  Dependant
  benefit                                 Funeral
  Expenses  Old age medi care  Rehabilitation

82
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)

83
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

84
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.

85
Schemes under the Act

• Three beneficial schemes-
• 1.Employees Provident Fund Scheme 1952
• 2.Employees Pension Scheme 1995
• 3.Employees Deposit Linked Insurance 1976

86
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.

87
Contribution to EPF

• Employees share 12 of the Basic DA
• Employers 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

88
Contribution (contd.)

• Administration charges -
• _at_ 1.1 of the total wages/salary disbursed by
  deposit to A/C No 02,
• Employees Deposit Linked Insurance _at_ 0.5 of the
  total wages/salary by deposit to A/C No. 21 and
• Administration of EDLI _at_ 0.01 of the wages/
  salary by deposit to A/C. No. 22.

89
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

90
Benefits to employees

• Provident Fund Benefits
• Pension Benefits
• Death Benefits

91
Provident Fund Benefits

• Employer also contributes to Members PF _at_ 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

92
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)

93
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 _at_8.33 and _at_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

94
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

95
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

96
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.

97
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
• Crèches where 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.

98
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) _at_ 1 per 20 days work
• Sickness and maternity benefits
• Employer to furnish Notice of Accident
• Employer to maintain a register of Accidents

99
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

100
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.

101
AUTHORITIES UNDER THIS ACT

• Works Committee
• Conciliation officers
• Boards of Conciliation
• Courts of Inquiry
• Labour Courts
• Tribunals
• National Tribunals

102
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)

103
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.

104
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

105
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

106
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.

107
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.

108
National Tribunals

• 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.

109
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.

110
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

111
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 matter that may be prescribed.

112
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

113
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.

114
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

115
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.

116
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

117
Retrenchment of workmen

• No workman who has been in continuous service for
  not less than one year shall be retrenched
  without giving one months 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.

118
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

119
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.

120
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.

121
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.

122
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

123
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

124
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

125
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.

126
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

127
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

128
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

129
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.

130
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.

131
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.

132
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

133
UNFAIR LABOUR PRACTICES On 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

134
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.

135
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.

136
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

137
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.

138
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

139
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, 1972 TO
  SALES PROMOTION EMPLOYEES

140
THANK YOU