List of ACTS

THE FACTORIES ACT, 1948

THE INDUSTRIAL EMPLOYMENT (STANDING ORDER) ACT, 1946

THE MATERNITY BENEFIT ACT, 1961

THE MINIMUM WAGES ACT, 1948

THE PAYMENT OF WAGES ACT, 1936

THE PAYMENT OF BONUS ACT, 1965

THE PAYMENT OF GRATUITY ACT, 1972

THE EQUAL REMUNERATION ACT, 1976

THE WORKMENS COMPENSATION ACT, 1923

THE TRADE UNIONS ACT, 1926

THE PROFESSIONAL TAX ACT, 1975 (as applicable to the State)

THE LABOUR WELFARE FUND as applicable to the State

THE CONTRACT LABOUR (Regulation and Abolition) ACT, 1970

Ignorance of law is not excuse and hence one needs to comply with compliance with
existing rules and regulations of labour laws to avoid the penal consequences.
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 government.

THE FACTORIES ACT, 1948

The Factories Act is meant to provide protection to the workers from being exploited by
the greedy business establishments and it also provides for the improvement of working
conditions within the factory premises

Act which makes it obligatory on the part of the employer to provide for the health, safety
and welfare of the workers employed.

Act extends to the whole of India.

Applies to every factory wherein 10 or more workers are working, or were working on
any day of the preceding twelve months, and in any part of which a manufacturing
process is being carried on with the aid of power and 20 or more workers, if run without
the aid of power.

Application to factories with fewer workers u/s 85

PROVIDES for

Hours of work (adult) not to exceed 48 hours in a week or 9 hours in a day.

Relaxation: Where an adult worker is engaged in urgent repairs.

Payment of Overtime wages for overstay at workplace @ twice the ordinary rate of
wages.

Provision relating to hours of work not applicable to supervisory staff.

Weekly Holiday: No work for more than 10 days without a day of rest.

Intervals of rest: half an hour for 5 hours of work

No child (who has not attained the age of 15 years) be permitted to work.

Prohibition of employment of Women: No woman shall be employed in any factory for

more than 9 hours in any day or between 7 pm and 6 am.

Restriction on double employment.

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.

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.

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

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.

EMPLOYER TO ENSURE SAFETY OF WORKERS

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.

Display of notices in factory premises.

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

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

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.

THE MATERNITY BENEFIT ACT, 1961

The Act extends to the whole of India

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

Not to discharge or dismiss a woman during her pregnancy

Eligibility

Work of 80 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.

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

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.

THE 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.

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

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.

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.

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

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.

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.

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.

THE PAYMENT OF GRATUITY ACT, 1972

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.

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 ???

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

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.

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

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
dividing the monthly salary/ wages by 26 and not by 30

employee

shall

be

taken

by

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

Salary ceiling

The Amendment Act of 1994 removed the salary ceiling of an employee, but the
maximum gratuity payable shall be Rs. 10 lakh.

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.

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.

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.

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.

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.

The Maximum Compensation as per W.C. Amendment Act, 2000

Fatal Injury

Permanent Total Disablement

Permanent Partial Disablement - According to incapacity caused

Temporary Disablement - Rs. 2000 per month upto a period of 5 years

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

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.

Professional Tax Act, 1975

In India, the professional tax is imposed at the state level. However, not all the states
impose this tax, the following states impose this levy in India Karnataka, West Bengal,
Andhra Pradesh, Maharashtra, Tamilnadu, Gujarat, and Madhya Pradesh.

Profession Tax means the tax on Professions, Trades, Callings, Employments and
people carrying out various occupations comes under the purview of this tax.

Professional tax is levied by particular Municipal Corporations and majority of the Indian
states impose this duty.

It is a tax on Professions, Trades, Callings and Employments for raising the resources
needed for implementing the Employment Guarantee Scheme of the State Govt. and to
provide for establishment of the Employment Guarantee Fund.

Every company which conducts business and every individual, who is involved directly in
any business, occupation, or employment in the town panchayat on the first day of the
half-year for which return has been submitted, needs to pay biannual tax at the rates
stipulated.

Salaried persons are also liable to profession tax but their tax is to be deducted and paid
by employer.

Professional Tax slab rates varies as per States (as per Income slab).

Exemptions from payment of Profession Tax

Person suffering from permanent physical disability.

Parents of mentally retarded child.

Parents of a child suffering from a physical disability.

Persons who have completed the age of 65 years.

The Labour Welfare Fund Act as applicable to the State

Labour welfare refers to all the facilities provided to labour in order to improve their
working conditions, provide social security and raise their standard of living. Parliament
to set up five Welfare Funds to be administered by Ministry of Labour & Employment to
provide housing, medical care, educational and recreational facilities to workers
employed in beedi industry, certain non-coal mines, and cine workers.

Applicability:

Every employee, including employer through contractor as to contribute. (varies from

state to state, Gross salary and designation).

MLWF Act. "Unpaid Accumulations-All Payments Due to the employees but not made to
them within a period of 3 years from the date on which they became due including
unpaid Wages, Gratuity, Bonus."

The Contract Labour (Regulation and Abolition)Act, 1970

It extends to the whole of India.

It applies - (a) to every establishment in which twenty or more workmen are employed
or were employed on any day of the preceding twelve months as contract labour;

(b) to every contractor who employs or who employed on any day of the preceding
twelve months twenty or more workmen : Provided that the appropriate Government
may, after giving not less than two months' notice of its intention so to do, by notification
in the Official Gazette, apply the provisions of this Act to any establishment or contractor
employing such number of workmen less than twenty as may be specified in the
notification.

It shall not apply to establishments in which work only of an intermittent or casual nature
is performed.

If a question arises whether work performed in an establishment is of an intermittent or

casual nature, the appropriate Government shall decide the question after consultation
with the Central Board or, as the case may be, a State Board, and its decision shall be
final.

Definitions :

a workman shall be deemed to be employed as "contract labour" in or in connection with

the work of an establishment when he is hired in or in connection with such work by or
through a contractor, with or without the knowledge of the principal employer;

"contractor", in relation to an establishment, means a person who undertakes to produce

a given result for the establishment, other than a mere supply of goods or articles of
manufacture to such establishment, through contract labour or who supplies contract
labour for any work of the establishment and includes a sub-contractor;

Others :

wherein contract labour numbering one hundred or more is ordinarily employed by a

contractor, one or more canteens shall be provided and maintained by the contractor for
the use of such contract labour.

Rest room to be provided in every place wherein contract labour is required to halt at
night in connection to work.

drinking water to be provided

sufficient number of latrines and urinals,

washing facilities, First Aid box, etc.