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Gratuity Act 1972

Extent and Application


It extends to the whole of India
Applicable to: every factory, mine, oilfield, plantation, port and railway company;
every shop or establishment in which 10 or more persons are employed, or were employed, on any day of the
preceding twelve months
Section2
Definitions
S.2 (e) "employee" means any person employed to do any skilled, semi-skilled, or unskilled, manual,
supervisory, technical or clerical work
it does not include an apprentice
S.2 (s) "wages" includes dearness allowance but does not include any bonus, commission, house rent allowance,
overtime wages and any other allowance.

MEANING OF GRATUITY
the term “gratuity” was considered as an amount given freely and could not be demanded as a matter of
right by the employees. in many cases gratuity was given as a matter of favor.
employers used to pay gratuity as a reward for long,continous & meritorious service.
with a view to ensure a uniform pattern of the payment of gratuity to the employees ,the “central
government enacted the” the payment of gratuity act,1972”.

GRATUITY WHEN PAYABLE ?


Gratuity shall be payable to an employee
 Who has rendered continuous service for not less than 05 years
 on the termination of his employment -
 on his superannuation, or
 on his retirement or
 resignation, or on his death or disablement due to accident or disease:

CAN GRATUITY BE WITHHELD BY THE EMPLOYER ?


The gratuity of an employee, whose services have been terminated for any act, willful omission or negligence
causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the
extent of the damage or loss so caused.
The gratuity payable to an employee may be wholly or partially forfeited
If the services of such employee have been terminated for his riotous or disorderly conduct or any other act of
violence on his part, or
If the services of such employee have been terminated for any act which constitutes an offence involving moral
turpitude, provided that such offence is committed by him in the course of his employment.

NOMINATION
 Each employee, who has completed one year of service, shall make nomination for to receive the
amount of gratuity.
 In his nomination, an employee may, distribute the amount of gratuity payable to him amongst more
than one nominee.
 If at the time of making nomination he has already family, he can not make nomination in favour of a
person who is not a member of his family. If he does so it shall be void.
 Fresh nomination in favour of one or more members of his family is required where he has not family at
the time of making nomination..
 If a nominee predeceases the employee, the interest of the nominee shall revert to the employee who can
make a fresh nomination.
 Every nomination, fresh nomination or alteration of nomination, as the case may be, shall be sent by the
employee to his employer, who shall keep the same in his safe custody.

DETERMINATION OF THE AMOUNT OF GRATUITY


 A person who is eligible for payment of gratuity shall send a written application to the employer.
 The employer shall determine the amount of gratuity and give notice in writing to the person to whom
the gratuity is payable and also to the controlling authority specifying the amount gratuity so determined
as soon as gratuity becomes payable and whether or not an application has been made by the concerned
employee.
 The employer shall arrange to pay the amount of gratuity within 30 days from the date it becomes
payable.

PENALTIES
 Knowingly making false statement/ false representation to avoid to make payment  imprisonment up
to 06 months, or with fine which may extend to Rs.10,000/- or with both.
 Breach, or makes default in complying with any of the provisions of this Act  imprisonment for 03
months to 01 year, or with fine which shall not be less than Rs.10,000/- but which may extend to
Rs.20,000/- or with both:
 Non-payment of any gratuity  imprisonment 6 months to 02 years + a fine.

PAYMENT OF BONUS ACT


 The practice of paying bonus in India appears to have originated during First World War when certain
textile mills granted 10% of wages as war bonus to their workers 1917.
 In certain of industrial disputes demand for payment of bonus cases was also included. In 1950, the Full
Bench of the Labour Appellate evolved a formula for determination of bonus.
 A plea was made to raise that formula in 1959. At the second and third meetings of the Eighteenth
Session of Standing Labour Committee (G.O.I.) held in New Delhi in March/April 1960, it was agreed
that a Commission be appointed to go into the question of bonus and evolve
suitable norms.

ELIGIBILITY
 Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance
with the provisions of this Act, provided he has worked in the establishment for not less than thirty
working days in that year

Disqualification for bonus


 Notwithstanding anything contained in this Act, an employee shall be disqualified from receiving bonus
under this Act, if he is dismissed from service for –
 (a) fraud; or
 (b) riotous or violent behavior while on the premises of
 the establishment; or
 (c) theft, misappropriation or sabotage of any property of the establishment

PAYMENT OF MINIMUM BONUS


Every employer shall be bound to pay to every employee a minimum bonus which shall be 8.33 percent
of the salary or wage earned by the employee during the accounting year .

SET ON AND SET OFF ALLOCABLE SURPLUS


 Where for any accounting year, the allocable surplus exceeds the amount of maximum bonus payable to
the employees in the establishment, then, the excess shall, subject to a limit of twenty per cent. of the
total salary or wage of the employees employed in the establishment in that accounting year, be carried
forward for being set on in the succeeding accounting year and so on
 Where for any accounting year, there is no available surplus or the allocable surplus in respect of that
year falls short of the amount of minimum bonus payable to the employees in the establishment and
there is no amount of sufficient amount carried forward and set on which could be utilized for the
purpose of payment of the minimum bonus, then, such minimum amount or the deficiency, as the case
may be, shall be carried forward for being set off in the succeeding accounting year and so
on up to and inclusive of the fourth accounting year in the manner
 Where in any accounting year any amount has been carried forward and set on or set off under this
section, then, in calculating bonus for the succeeding accounting year, the amount of set on or set off
carried forward from the earliest accounting year shall first betaken into account
 Where any money is due to an employee by way of bonus from his employer under a settlement or an
award or agreement, the employee himself or any other person authorized by him in writing in this
behalf, or in the case of the death of the employee, his assignee or heirs may, without prejudice to any
other mode of recovery, make an application to the appropriate Government or such authority as the
appropriate Government may specify in this behalf is satisfied that any money is so due, it shall issue a
certificate for that amount to the Collector who shall proceed to recover the same in the same manner as
an arrears of land revenue
 Provided that every such application shall be made within one year from the date on which the money
became due to the employee from the employer
 Provided further that any such application may be entertained after the expiry of the said period of one
year, if the appropriate Government is satisfied that the applicant had sufficient cause for not making the
application within the said period.
 set on--first we calculate allocable surplus and out of that surplus we pay bonus and after paying max
bonus i.e 20% ,if some amount left balance is called set on and this amount is kept in reserve for future .
set off-if in any accounting year you do not have sufficient surplus and even you are not able to pay
minimum bonus of 8.33% than legally you have to pay 8.33%,so balance amount which you do not have
in surplus will be shown as set off for future and you have to take care of set off/on in future before
deciding rate of bonus.
 PF ACT 1952
PF act was came into force in 1952 in order to secure the life of an employee for rendering his services to
organization, this is a statutory liability of employer to give PF amt to an employee.
This amount is paid after the retirement from the services.
Applicability of the act
 PF is applicable in any organization where 20 or more persons are employed
 PF is applicable in every state except J & k.
 Benefits of the act
 To provide Monetary benefits to survive after retirement.
 To minimize risk against health, sickness, disablement of the employee and his dependents.
 Old age Pension benefits.
 Widow pension.
 To maintain dignity & Social status.
 PF Contribution
PF is deducted on basic salary. If employee's basic is less than or equals to Rs.6500 he will be covered in pf.
12 % Employee side
3.67%(epf part)+ 8.33 % (Pension part)
13.61% Employer side
3.67 (EPF)+8.33 (Pension)+ 1.1(Admin charge) + 0.5(EDLI) +
0.01(Inspection charge /admin on edli)
Employees Deposit linked insurance scheme.
Challans & Returns
PF challans are submitted on 15th of every month, 5 days grace period is given to submit challans.
PF Returns are submitted twice a year-
PF RETURNS
Form 5 is used to submit pf monthly return in which new employee details is mentioned.
Form 10 is used to submit pf monthly return in which left employee details is mentioned.
Form 12A that is used for the same purpose which contains consolidated details of that particular month-
new joinees, left employees & employees/employer pf contribution.
Form 3A is used for pf annual return.

 Workmen Compensation Act


 The Workmen’s Compensation Act, aims to provide workmen and/or their dependents some relief in
case of accidents arising out of and in the course of employment and causing either death or disablement
of workmen.
 It provides for payment by certain classes of employers to their workmen compensation for injury by
accident.
 EMPLOYEES ENTITLED TO COMPENSATION
 Every employee (including those employed through a contractor but excluding casual employees), who
is engaged for the purposes of employer’s business and who suffers an injury in any accident arising out
of and in the course of his employment, shall be entitled for compensation under the Act.
 EMPLOYER’S LIABILITY FOR COMPENSATION (ACCIDENTS)
 The employer of any establishment covered under this Act, is required to compensate an employee:
a. Who has suffered an accident arising out of and in the course of his employment, resulting into (i)
death, (ii) permanent total disablement, (iii) permanent partial disablement, or (iv) temporary
disablement whether total or partial, or
b. Who has contracted an occupational disease.
 HOWEVER THE EMPLOYER SHALL NOT BE LIABLE
 a. In respect of any injury which does not result in the total or partial disablement of the workmen for a
period exceeding three days;
b. In respect of any injury not resulting in death, caused by an accident which is directly attributable to-
i. the workmen having been at the time thereof under the influence or drugs, or
ii. the willful disobedience of the workman to an order expressly given, or to a rule expressly framed, for
the purpose of securing the safety of workmen, or
iii. The willful removal or disregard by the workmen of any safeguard or other device which he knew to
have been provided for the purpose of securing the safety of workmen.
The burden of proving intentional disobedience on the part of the employee shall lie upon the employer.
iv. when the employee has contacted a disease which is not directly attributable to a specific injury
caused by the accident or to the occupation; or
v. When the employee has filed a suit for damages against the employer or any other person, in a Civil
Court.
 WHAT IS DISABLEMENT
 Disablement is the loss of the earning capacity resulting from injury caused to a workman by an
accident.
· Disablement’s can be classified as (a) Total, and (b) Partial. It can further be classified into (i)
Permanent, and (ii) Temporary, Disablement, whether permanent or temporary is said to be total when it
incapacitates a worker for all work he was capable of doing at the time of the accident resulting in such
disablement.
 ACCIDENT ARISING OUT OF AND IN THE COURSE OF EMPLOYMENT
 An accident arising out of employment implies a casual connection between the injury and the accident
and the work done in the course of employment. Employment should be the distinctive and the
proximate cause of the injury. The three tests for determining whether an accident arose out of
employment are:
1. At the time of injury workman must have been engaged in the business of the employer and must not
be doing something for his personal benefit;
2. That accident occurred at the place where he as performing his duties; and
3. Injury must have resulted from some risk incidental to the duties of the service, or inherent in the
nature condition of employment.
 The general principles that are evolved are:
 · There must be a casual connection between the injury and the accident and the work done in the course
of employment;

· It is not necessary that the workman must be actually working at the time of his death or that death
must occur while he was working or had just ceased to work;
 COMPENSATION IN CASE OF OCCUPATIONAL DISEASES
 Workers employed in certain types of occupations are exposed to the risk of contracting certain diseases,
which are peculiar and inherent to those occupations. A worker contracting an occupational disease is
deemed to have suffered an accident out of and in the course of employment and the employer is liable
to pay compensation for the same.
Occupational diseases have been categorized in Parts A, B and C of Schedule III. The employer is liable
to pay compensation:
a. When a workman contracts any disease specified in Part B, while in service for a continuous period of
6 months under one employer.
 b. When a workman contracts any disease specified in Part C, while he has been in continuous service
for a specified period, whether under one or more employers.
 CALCULATION OF COMPENSATION
 The amount of compensation payable by the employer shall be calculated as follows:
(a) In case of death. - 50% of the monthly wages X Relevant Factor or Rs. 50,000, whichever is more
and Rs.1000 for funeral expenses.
(b) In case of total permanent disablement Specified under -60% of the monthly wages X Relevant
Factor or Rs. 60,000, whichever is more.
 (d) In case of partial permanent disablement .-Such percentage of the compensation payable in case (b)
above, as is proportionate to the loss of earning Capacity (as assessed by a qualified medical
practitioner).
(e) In case of temporary disablement (whether total or partial). - A half-monthly installment equal to
25% of the monthly wages, for the period of disablement or 5 years, whichever is shorter
 WHEN COMPENSATION TO BE DEPOSITED WITH COMMISSIONER ?
 The amount of compensation is not payable to the workman directly. It is generally deposited along with
the prescribed statement, with the Commissioner who will then pay it to the workman. Any payment
made to the workman or his dependents, directly, in the following cases will not be deemed to be a
payment of compensation:

i. in case of death of the employee;


ii. in case of lump sum compensation payable to a or a minor or a person of unsound mind or whose entitlement
to the compensation is in dispute or a person under a legal disability.
The receipt of deposit with the Commissioner shall be a sufficient proof of discharge of the employer’s liability.
 AMOUNTS PERMISSIBLE TO BE PAID TO THE WORKMAN/ DEPENDENTS DIRECTLY
Following amounts may be paid directly to the workman or his dependents:
a. In case of death of the workman, any advance on account of compensation up to [an amount equal to
three months’ wages of such workman] may be paid to any dependent.
b. In case of lump sum compensation payable to an adult male worker not suffering from any legal
disability.
In case of half-monthly payments payable to any workman.
 REGISTRATION OF AGREEMENTS OF COMPENSATION
1. Where the amount payable as compensation has been settled by agreement a memorandum thereof
shall be sent by the employer to the Commissioner, who shall, on being satisfied about its genuineness,
record the memorandum in a registered manner.

2. However where it appears to the Commissioner that the agreement ought not to be registered by
reason of the inadequacy of the sum or amount, or by reason that the agreement has been obtained by
fraud or undue influence or other improper means he may refuse to record the agreement and may make
such order including an order as to any sum already paid under the agreement as he thinks just in the
circumstances.
3. An agreement for payment of compensation which has been registered shall be enforceable under this
act notwithstanding anything contained in the Indian Contract Act, or any other law for the time being in
force.
EFFECT OF FAILURE TO REGISTER AGREEMENT
When a memorandum of any agreement is not sent to the Commissioner for registration, the employer
shall be liable to pay the full amount of compensation, which he is liable to pay under the provisions of
this Act.

FILING OF CLAIMS
 A claim for the compensation shall be made before the Commissioner.
No claim for compensation shall be entertained by the Commissioner unless the notice of accident has
been given by the workman in the prescribed manner, except in the following circumstances:

a. in case of death of workman resulting from an accident which occurred on the premises of the
employer, or at any place where the workman at the time of the accident was working died on such
premises or such place or in the vicinity of such premises or place;
b. in case the employer has knowledge of the accident from any other source, at or about the time of its
occurrence;
c. in case the failure to give notice or prefer the claim, was due to sufficient cause.
LIMITATION

Workman, to the Commissioner, may file the claim for accident compensation in the prescribed form,
within 2 years from the occurrence of the accident or from the date of death. The claim must be
preceded by
(i) a notice of accident, and

(ii) the claimant-employee must present himself for medical examination if so required by the employer.
DUTIES OF EMPLOYERS / EMPLOYEES
 · To pay compensation for an accident suffered by an employee, in accordance with the Act.
· To submit a statement to the Commissioner (within 30 days of receiving the notice) in the prescribed
form, giving the circumstances attending the death of a workman as result of an accident and indicating
whether he is liable to deposit any compensation for the same.
· To submit accident report to the Commissioner in the prescribed form within 7 days of the accident,
which results in death of a workman or a serious bodily injury to a workman.
· To maintain a notice book in the prescribed from at a place where it is readily accessible to the
workman.
· To submit an annual return of accidents specifying the number of injuries for which compensation has
been paid during the year, the amount of such compensation and other prescribed particulars.
DUTIES OF EMPLOYEES

· To send a notice of the accident in the prescribed form, to the Commissioner and the employer, within
such time as soon as it is practicable for him. The notice is precondition for the admission of the claim
for compensation.
· To present himself for medical examination, if required by the employer.

THE EMPLOYEE’S STATE INSURANCE ACT 1948


• ESI Scheme …
• ESI Scheme for India is an integrated social security scheme tailored to provide Social Production to
workers and their dependents, in the organised sector, in contingencies, such as Sickness, Maternity and
Death or Disablement due to an employment injury or Occupational hazard
1. Employees’ Contribution – 1.75% of the Wages
2. Employers’ Contribution – 4.75% of the Wages
TOTAL - 6.5 % of the Wages
• Benefits to Employees …
• ESI Scheme Major Social Security Benefits in Cash and Kind include …
1. Medical Benefit – for self & Family
2. Sickness Benefit – for self
3. Maternity Benefit - for self
4. Disablement Benefit
a). Temporary Disablement Benefit – for self
b). Permanent Disablement Benefit – for self
5. Dependents’ Benefit – for dependents in case of death due to employment injury

• Benefits to Employees …
• In addition, the Scheme also provides some other need based benefits to insured workers. These are:
i). Funeral Expenses – to a person who
performs the last rites of IP
ii). Rehabilitation allowances – for self
iii). Vocational Rehabilitation - for self
iv). Old age Medicare – for self and spouse
v). Medical Bonus – for insured women and IP’s wife
• Medical Benefit …
• Medical Benefit means Medical care of IPs and their families, wherever covered for medical benefit.
• The Standard medical care consists of out-door treatment, in-patient treatment, all necessary drugs and
dressing, pathological and radiological specialist consultation and care, ante-natal and post natal care,
emergency treatment etc.,
• Out-door medical care is provided at the state Insurance Dispensaries or Mobile Dispensaries manned by
full-time doctors (service’ system) or at the private clinics of Insurance Medical Practitioners (Panel
System)
• Medical Benefit …
• Insured worker and members of his family are eligible for medical care from the very first day of the
worker coming under ESI Scheme.
• A worker who is covered under the scheme for first time is eligible for medical care for the period of
three months. If he/she contributes at least for 78 days in a contribution period the eligibility is there up
to the end of the corresponding benefit period.
• A worker is also eligible for extended sickness benefit when he/she is suffering from any one of the long
term 34 diseases listed in the Act. This is admissible after the worker has been under ESI these
conditions are satisfied medical benefit is admissible for a maximum period of 730 days for the IP and
his/ her family.
• Sickness Benefit …
• Sickness signifies a state of health necessitating Medical treatment and attendance and abstention from
work on Medical grounds. Financial support extended by the corporation is such a contingency is called
sickness Benefit
• Sickness Benefit represents periodical payments made to an Insured Person for the period of certified
sickness after completing 9 Months in insurable employment.
• Benefits to Employees …
• To qualify for this benefit, contributions should have been payable for atleast 78 days in the relevant
contribution period.
• The Maximum duration for availing sickness Benefit is 91 days in two consecutive benefit periods
• Standard benefit rate – this rate corresponds to the average daily wage of an Insured person during the
corresponding contribution period and is roughly half of the daily wage rate.
• Extended Sickness Benefit …
• Extended Sickness Benefit is a Cash Benefit paid for prolonged illness (Tuberculosis / Leprosy, Mental
and Malignant diseases) due to any of the 34 Specified diseases
• The IP should have been in continuous employment for a period of 2 years and should have contributed
for atleast 156 days in 4 preceding contribution periods
• Extended Sickness Benefit …
• The daily rate of Extended Sickness Benefit is 40% more than the standard Sickness Benefit rate
admissible
• After exhausting sickness Benefit Payable for 91 days the Extended Sickness Benefit is payable upto
further period of 124 / 309 days that can be extended upto 2 years in special circumstances
• Enhanced Sickness Benefit …
• Is Cash Benefit for IP undergoing sterilisation operation of vasectomy / tuberctomy for family planning.
• The contributory conditions are the dame as for claiming sickness benefits
• The daily rate of this benefit is double the standard benefit rate. Say, not less than the daily wage.
• The benefit rate of this benefit is double the standard benefit rate. Say, not less than the daily wage.
• The benefit is available upto 7 days for vasectomy and upto 14 days for tubectomy operations.
• Maternity Benefit…
• Maternity Benefit is cash payable to an Insured women for the specified period of abstention from work
for confinement or mis-carriage or for sickness arising out of pregnancy, “confinement” “premature
birth of child or miscarriage” “confinement” connotes labour after 26 weeks of pregnancy whether the
result issue is alive or dead,
• “Miscarriage” means expulsion of the contents of a pregnant uterus at any period prior to or during 26 th
week of pregnancy.
• Maternity Benefit…
• Criminal abortion or miscarriage does not, however, entitle to benefit.
• The contribution condition is the same as for Sickness Benefit.
• The daily benefit rate is double the sickness Benefit rate and is thus roughly equivalent to the full wages.
Benefits is paid for Sundays also.
• Maternity Benefit…
• The Benefit is paid as follows (Duration)
a). For Confinement
For a total period 12 Weeks beginning not more than 6 weeks before the expected date of child birth, if the
insured women dies during confinement or with in 6 weeks thereafter, leaving behind the living child, the
benefit continues to be payable for the whole of the period. But the child also die during that period, the benefit
will be paid upto and including the day of the death of the child.
• Maternity Benefit…
b). For Miscarriage
For the period of 6 weeks following the
date of miscarriage
c). For sickness arising out of pregnancy,
confinement, Premature birth of child or
miscarriage :
For an additional period or upto four weeks.
In all the cases, the benefit is paid only if the insured women does not work for remuneration during the
period for which benefit is claimed. There is no waiting period.
• Maternity Benefit…
• Medical Bonus
Medical Bonus is lump sum payment made to an Insured woman or the wife of an insures person in case she
does not avail medical facility from an ESI hospital at the time of delivery of a child. This bonus of Rs. 250/-
has been increased to Rs. 1000/- from 1st April 2003
• Disablement Benefit …
a). Temporary disablement benefit :
• In case of temporary disability arising out of an employment injury or occupational disease.,
• Disablement benefit is admissible to insured person for the entire period so certified by an Insurance
Medical officer / Practitioner for which IP does not work for wages.
• The benefit is not subject to any contributory condition and is payable at a rate which is not less than
70% of daily average wages.
• However, not payable if the incapacity lasts for less than 3 days excluding the date of accident.

• Permanent disablement benefit …


• In case an employment injury or occupational disease results in permanent, partial or total loss of
earning capacity,
• Periodical payments are made to the IP for life at a rate depending on the actual loss of earning capacity
as may be determined and certified by a duly-constituted Medical Board.
• The rates of Disablement Benefits are determined in accordance with the provisions of Rule 57 of ESI
(Central) Rules, 1991.
• In order to product erosion in real value of the periodical payments of Permanent Disablement benefits,
against rise in the cost of living index, periodical increases are granted, based on actuarial calculation
• Permanent disablement benefit …
• Commutation of periodical payments into lump sum (one time payment) is permissible where the
permanent disablement stands assessed as final.
• Commutation of Permanent Disablement Benefit into lump sum payment is also allowed in case the
total commuted value does not exceed Rs.10000/- (The ceiling is now being raised to Rs.30000/-).
• Dependants’ Benefit …
• Dependents Benefit is a monthly pension payable to the eligible dependents of an insured person who
dies as a result of an Employment Injury or occupational disease
• Beneficiaries and Duration of benefit
a). Widow / widows during life or until remarriage
b). Legitimate or adopted son until age 18 or if legitimate son is infirm, till infirmity lasts.
c). Legitimate or adopted unmarried daughter until age 18 or until marriage, whichever is earlier, or if infirm,
till infirmity lasts and she continues to be unmarried.
In the absence of any widow or legitimate child, the benefit is payable to a parent or grandparent for life, to
any other male dependent until age 18 or to an unmarried or widowed female dependent until age 18.
How much …
• The total divisible benefit is equivalent to the temporary disablement benefit rate (roughly 70% of the
wage rate). The widow / widows share 3/5th of the benefit and the legitimate or adopted son and
daughter 2/5th each of the benefit. If the total benefit so divided exceeds the full rate, there is a
proportionate reduction in the respective shares of the beneficiaries.
• The amount of pension paid to the dependents of a deceased insured person is reviewed vis-à-vis the
cost of living index and increases are granted from time to time to compensate for erosion in its real
value.
Maternity Benefit Act 1961
  Object of the Act
 To protect the dignity of motherhood and the dignity of a new person’ birth by providing for the full and
healthy maintenance of the woman and her child at this important time when she is not working
  Coverage of the Act
Upon all women employees either employed directly or through contractor except domestic women employed
in mines, factories, plantations and also in other establishments if the State Government so decides. Therefore,
if the State Government decides to apply this Act to women employees in shops and commercial
establishments, they also will get the benefit of this Act. Sec.3
 Conditionsforeligibilityof benefits
 Women indulging temporary or unmarried are eligible for maternity benefit when she is expecting a
child and has worked for her employer for at least 80 days in the 12 months immediately preceding the
date of her expected delivery.
Sec. 5
CONDITIONS FOR CLAIMING BENEFITS
 Ten weeks before the date of her expected delivery, she may ask the employer to give her light work for
a month. At that time she should produce a certificate that she is pregnant.
 She should give written notice to the employer about seven weeks before the date of her delivery that
she will be absent for six weeks before and after her delivery. She should also name the person to who
payment will be made in case she cannot take it herself.
 She should take the payment for the first six weeks before she goes on leave.
 She will get payment for the six weeks after child-birth within 48 hours of giving proof that she has had
child. She will be entitled to 2 nursing breaks of 15 minutes each in the course of her daily work till her
child is 15 months.
 Her employer cannot discharge her or change her conditions of service while she is on maternity leave.
Sec.5
 Cash Benefits
 Leave with average pay for six weeks before the delivery
 Leave with average pay for six weeks after the delivery
 A medical bonus of Rs. 1000, if the employer does not provide free medical care to the woman.
 An additional leave with pay up to one month if the woman shows proof of illness due to the pregnancy,
delivery, miscarriage, or premature birth.
 In case of miscarriage, six weeks leave with average pay from the date of miscarriage.
 Non Cash Benefits & Privilege
 Light work for 10 weeks (6 weeks plus 1 month) before the date of her expected delivery, if she asks for
it.
 2 Nursing breaks in the course of her daily work until the child 15 months old.
 No discharge or dismissal while she is on maternity leave.
 No charge to her disadvantage in any of the conditions of her employment while on maternity leave.
 Leave for Miscarriage & Tubectomy Operation
 Leave with wages at the rate of maternity benefit, for a period of 6 weeks immediately following the
day of her miscarriage or her medical termination of pregnancy.
 Entitled to leave with wages at the rate of maternity benefit for a period of 2 weeks immediately
following the day of her tubectomy operation.
 Leave for illness arising out of pregnancy etc.,

 Forfeiture of maternity benefit


o If permitted by her employer to absent herself under the provisions of sec.6 for any period during such
authorised absence, she shall forfeit her claim to the maternity benefit for such period.
o For discharging or dismissing such a woman during or on account of her absence from work, the
employer shall be punishable with imprisonment which shall not be less than 3 months, but it will
extend to one year and will find, but not exceeding Rs. 5000/-
Industrial Disputes Act
 What are Industrial Disputes?
 Industrial Dispute means any dispute or differences 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
 What are the different categories of Industrial Disputes?

The Second Schedule of the I.D. Act deals with matters within the jurisdiction of Labour Courts which fall
under the category of Rights Disputes.
 The propriety or legality of an order passed by an employer under the standing orders;
 The application and interpretation of standing orders which regulate conditions of employment.
 Discharge or dismissal of workmen including reinstatement of, or grant of relief to workmen
wrongfully dismissed;
 Withdrawal of any customary concession or privilege;
 Illegality or otherwise of a strike or lock-out;

The Third Schedule of the I.D. Act deals with matters within the jurisdiction of Industrial Tribunals which
could be classified as Interest Disputes.
 These are :
 Wages, including the period and mode of payment;
 Compensatory and other allowances;
 Hours of work and rest intervals;
 Leave with wages and holidays;
 Bonus, profit sharing, provident fund and gratuity;
 Shift working otherwise than in accordance with standing orders;
 Classification by grades;
 Rules of discipline;
 Rationalization;
 Retrenchment of workmen and closure of establishment; and
 Any other matter that may be prescribed.
 Who can raise an Industrial Dispute?
 Any person who is a workman employed in an industry can raise an industrial dispute.
 A workman includes any person (including an apprentice) employed in an industry to do manual,
unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward.
 It excludes those employed in managerial or administrative capacity.
 Industry means any business, trade, undertaking, manufacture and includes any service, employment,
handicraft, or industrial occupation or avocation of workmen.
 How to raise an Industrial Dispute?
 A workman can raise a dispute directly before a Conciliation Officer in the case of discharge, dismissal,
retrenchment or any form of termination of service. In all other cases listed at 2 above, the dispute has
to be raised by a Union / Management.

Purpose of the Act
 SETTLEMENT MACHINERIES
 CONCILITAION
 ARBITRATION
 COURT OF INQUIRY
-INDUSTRIAL TRIBUNAL
NATIONAL TRIBUNAL
 Works Committee
 It shall be the duty of the Works Committee to promote measures for
securing and preserving amity and good relations between the employer
and workmen and, to that end, to comment upon matters of their common
interest or concern and endeavour to compose any material difference of
opinion in respect of such matters
 Conciliation officer
 The appropriate Government may, by notification in the Official Gazette, appoint such number of
persons as it thinks fit, to be conciliation officers, charged with the duty of mediating in and promoting
the settlement of industrial disputes.
 A conciliation officer may be 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.
 Board of conciliation
 Provided that, if any party fails to make a recommendation as aforesaid within the prescribed time, the
appropriate Government shall appoint such persons as it thinks fit to represent that party.
 (4) A Board, having the prescribed quorum, may act notwithstanding the absence of the Chairman or
any of its members or any vacancy in its number:
 Provided that if the appropriate Government notifies the Board that the services of the Chairman or of
any other member have ceased to be available, the Board shall not act until a new chairman or member,
as the case may be, has been appointed
 Courts of inquiry
 Labour courts
 (3) A person shall not be qualified for appointment as the Presiding Officer of a Labour Court, unless -
(a) he is, or has been, a Judge of a High Court; or
(b) he has, for a period of not less than three years, been a District Judge or
 an Additional District Judge; or]
(c) he has held any judicial office in India for not less than seven years ; or
(d) he has been the Presiding Officer of a Labour Court constituted under
 any Provincial Act or State Act for not less than five years
 Industrial tribunals
 The appropriate Government may, by notification in the Official Gazette, constitute one or more
Industrial Tribunals for the adjudication of industrial disputes relating to any matter and for performing
such other functions as may be assigned to them under this Act.
 (2) A Tribunal shall consist of one person only to be appointed by the
 appropriate Government.
 (3) A person shall not be qualified for appointment as the presiding officer of a
 Tribunal unless:
 (a) he is, or has been, a Judge of a High Court; or
 (b) he has, for a period of not less than three years, been a District Judge or an Additional District Judge.
 (4) The appropriate Government may, if it so thinks fit, appoint two person as assessor, to advise the
tribunal
 National tribunals
 The Central Government may, by notification in the Official Gazette,
 constitute one or more National Industrial Tribunals 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.
 (2) A National Tribunal shall consist of one-person only to be appointed by the Central Government.
 (3) A person shall not be qualified for appointment as the presiding officer of a
 National Tribunal unless he is, or has been, a Judge of a High Court.
 (4) The Central Government may, if it so thinks fit, appoint two persons as assessors to advise the
National Tribunal in the proceeding before it
 Strike
1. By workmen
2. Refusal to work/ accept employment
 Lockout
 By employee
 Temporary closure
 Refusal to continue to employ the persons employed
 Illegal strikes
 Without giving 14 days notice
 Commenced after 42 days of notice
 Prior to the date indicated in the notice
 In non PUs
 During the pendency of proceedings
 Strike/lock out will be illegal if Govt bans.
 Lay off
 Temporary suspension or permanent termination of employees.
 Where in 50 or more workers are employed, shall be laid off by prior permission of the appropriate
government.
 Lay off compensation
 50% of Basic + DA
 Alternative employment within 5 miles not eligible for compensation.
 Retrenchment
 It is a way of downsizing, cutting costs.
 One month notice /pay for small Co.
 3 months notice /pay in larger establishments.
 Retrenchment Compensation
 15 days wages for every completed year.
 Closure
 Permanent closure of place of employment.
 No permission is required in case of smaller establishments
 For larger establishments, 90 days prior in advance to get permission from the government.

CONTRACT LABOUR (REGULARATION & ABOLITION) ACT, 1970 & THE RULES
CHECKLIST
Applicability Registration of
 Every establishment in which 20 or more Establishment
Object of the Act
workmen are employed or were Principal employer employing
To regulate the
employed on any day of the preceding 20 or more workers through
employment of contract
12 months as contract labor. the contractor or the
labor in certain
 Every contractor who employs or who contractor(s) on deposit of
establishments and to
employed on any day of the preceding required fee in Form 1
provide for its abolition in
twelve months 20 or more workmen. Sec. 7
certain circumstances and
Sec. 1
for matters connected
therewith. Revocation of Registration Licensing of Contractor
Prohibition of Employment of Contract When obtained by  Engaging 20 or more than
Labour Misrepresentation or 20 workers and on deposit
Only by the appropriate Government suppression of required fee in Form IV.
through issue of notification after Of material facts etc. after  Valid for specified
consultation with the Board (and not Courts) opportunity to the principal period.Sec.12, Rule 21
can order the prohibition of employment of Employer
contract labor. Sec. 10 Sec. 9
Welfare measures to be taken by the Contractor
Revocation or Suspension &  Contract labor either one hundred or more employed by a contractor for
Amendment of Licences one or more canteens shall be provided and maintained.
 When obtained by misrepresentation or  First Aid facilities.
suppression of material facts.  Number of rest-rooms as required under the Act.
 Failure of the contractor to comply with  Drinking water, latrines and washing facilities. Sec. 16 & 17
the conditions or contravention of Act or Liability of Principal Employer
Laws,
the Agreement or standing
Rules. Sec. 14
orders inconsistent with the Act-  To ensure provision for canteen, restrooms, sufficient supply of drinking
Not Permissible water, latrines and urinals, washing facilities.
Unless the privileges in the contract  Principal employer entitled to recover from the contractor for providing such
between the parties or more favorable than amenities or to make deductions from amount payable. Sec. 20
the prescribed in the Act, such contract will Muster Roll, Wages Register, Deduction Register and Overtime Register by
be invalid and the workers will continue to Contractor
get more favorable benefits.  Every contractor shall
Sec. 20  Maintain Muster Roll and a Register of Wages in Form XVI and Form XVII respectively
Registers of Contractors when combined.
 Principal employer  Register or wage-cum-Muster Roll in Form XVII where the wage period is a fortnight or
 To maintain a register of contractor in less.
respect of every establishment in Form  Maintain a Register of Deductions for damage or loss, Register or Fines and Register of
XII. Avances in Form XX, from XXI and Form XXII respectively.
 Contractor Rule 74  Maintain a Register of Overtime in Form XXIII.
 To issue wage slips in Form XIX, to the workmen at least a day prior to the disbursement
 To maintain register of workers for
of wages.
PENALTIES
Sec. Offence Punishment
Sec. 22 Obstructions For obstructing the inspector or failing to produce registers etc.

- 3 months’ imprisonment or fine upto Rs.500, or both.

Sec.23 Violation For violation of the provisions of Act or the Rules, imprisonment of 3

Months or fine upto Rs.1000. On continuing contravention, additional fine


upto Rs.100 per day

EMPLOYEES’ PROVIDENT FUNDS & MISC. PROVISIONS ACT, 1952


& THE SCHEMES
CHECKLIST
Eligibility Applicability
Any person who is employed for  Every establishment which is factory engaged in any industry specified in
work of an establishment or Schedule 1 and in which 20 or more persons are employed.
employed through contractor in  Any other establishment employing 20 or more persons which Central
or in connection with the work of Government may, by notification, specify in this behalf.
an establishment.  Any establishment employing even less than 20 persons can be covered
Payment of Contribution voluntarily u/s 1(4) of the Act.
 The employer shall pay the
contribution payable to the EPF, Benefits
DLI and Employees’ Pension Fund Employees covered enjoy a benefit of Social Security in the form of an
in respect of the member of the unattachable and unwithdrawable (except in severely restricted circumstances
Employees’ Pension Fund like buying house, marriage/education, etc.) financial nest egg to which
employed by him directly by or employees and employers contribute equally throughout the covered persons’
through a contractor. employment.
 It shall be the responsibility of the This sum is payable normally on retirement or death. Other Benefits include
principal employer to pay the Employees’ Pension Scheme and Employees’ Deposit Linked Insurance Scheme.
contributions payable to the EPF, Rates of Contribution
DLI and Employees’ Pension Fund
by himself in respect of the SCHEME EMPLOYEE’S EMPLOYER’S CENTRAL GOVT’S
employees directly employed by
him and also in respect of the Amount > 8.33%
employees directly employed by (in case where
him and also in respect of the contribution is 12%
Clarification about by
employees employed Contribution
or through of 10%)
After revision
a contractor. in wage ceiling from 10% (in case of
Provident Fund NIL
Rs.5000 to Rs.6500 w.e.f. 1.6.2001 per 12% certain
Scheme
month, the government will continue to Establishments as
contribute 1.16% upto the actual wage per details given
of maximum Rs.6500 per month earlier)
towards Employees’ Pension Scheme.
The employer’s share in the Pension Insurance NIL
NIL 0.5
Scheme will be Rs.541 w.e.f. 1.6.2001. Scheme
Damages 8.33% (Diverted
1.16%
Under Employees’ Deposit-Linked Pension Scheme NIL out of Provident
 Less than 2 months Fund ….@ 17% per annum
Insurance Scheme the contribution @
0.50% is required to be paid upto a
 Two months and above but less than upto four months ….@22% per annum
maximum limit of Rs.6500.
 Four months and above but less than upto six months ….@ 27% per annum
The employer also will pay
administrative charges @ 0.01% on  Six months and above
Penal Provision
Liable to be arrested without warrants being a cognizable offence.

Defaults by employer in paying contributions or inspection/administrative


EMPLOYEES’ STATE INSURANCE
ACT, 1948 & the SCHEME charges attract imprisonment upto 3 years and fines upto Rs.10, 000 (S.14).
CHECK LIST
For any retrospective application, all dues have to be paid by employer with

damages upto 100% of arrears.

Coverage Rate of
Applicability of Contribution of THE ESI SCHEME TODAY
the Act & Scheme the wages
Of employees No. of implemented Centres 677
Is extended in area-
No. of Employers covered 2.38 lacs
wise to factories using
power and employing
10 or more persons
Drawing wages Employers’ 4.75% No. of Insured Persons 85 lacs
and to non-power
using manufacturing Upto No. of Beneficiaries 330 lacs
units and establish-
ments employing 20 No. of Regional Offices/SRO’s 26
or more person upto
Rs.7500/- per month Manner and Time Limit No. of ESI Hospitals/Annexes 183
w.e.f. 1.4.2004. It For making Payment of contribution Benefits
has also been extend- No. of ESI Dispensaries 1453
ed upon shops,
To the employees under the Act
hotels, restaurants, No. of Panel Clinics 2950
roads motor transport The total amount of contribution (employee’s
undertakings, equip- share and employer’s share) is to be deposited
ment maintenance
staff in the hospitals.
with the authorized bank Employees’ 1.75%
through a challan in Medical, sickness, extended sickness
the prescribed form in quadruplicate on ore for certain diseases, enhanced
before 21st of month following the calendar sickness, dependents maternity,
month in which the wages fall due. besides funeral expenses, rehabilitation
allowance, medical benefit to insured
WAGES FOR ESI CONTRIBUTIONS Contribution Contribution
person and his or her spouse.
period period
Rs.10000/-
Registers/files to be maintained per
by the employers
To be deemed as wages NOT
monthto be deemed as
wages
Engaged either If the person joined
 Basic pay directly or thru’ insurance employment for
 Dearness allowance contractor
Contribution paid by kthe 1st April to 30th
employer to any the first time, say on 5th
 House rent allowance September.
pension/provident fund or January, his first
 City compensatory contribution period will be
under ESI Act.
allowance
 Sum paid to defray special from 5th January to 31st
 Overtime wages (but not March and his
expenses entailed by the Penalties
to be taken into account
nature of employment – corresponding first benefit
for determining the
Daily allowance paid for will be from 5th October to
coverage of an employee) 1st October to 31st
the period spent on tour.
March punishment have 31
beenDecember.
st
 Payment for day of rest Different prescribed for different
 Gratuity payable on
 Production incentive discharge. types of offences in terms of Section 85: (I) (six
 Bonus other than  Pay in lieu of notice of months imprisonment and fine Rs.5000), (ii) (one year
statutory bonus retrenchment
imprisonment and fine), and 85-A: (five years
FACTORIES ACT, 1948
CHECK LIST

Employer to ensure health of Registration & Renewal


Applicability of the Act workers pertaining to of Factories

Any premises whereon 10 or  Cleanliness Disposal of wastes and


more persons with the aid of effluents
power or 20 or more workers  Ventilation and temperature dust and To be granted by Chief
are/were without aid of power fume Inspector of Factories on
working on any dyad preceding  Overcrowding Artificial humidification submission of prescribed
12 months, wherein Lighting
form, fee and plan.
Manufacturing process is being  Drinking water Spittons.
carried on. Secs. 11 to 20
Secs. 6
Sec.2(ii)
Safety Measures  Self-acting machines. Welfare Measures
 Casing of new machinery.
 Prohibition of employment of
 Facing of machinery women and children near  Washing facilities
 Work on near machinery in motion. cotton-openers.  Facilities for storing and drying
 Employment prohibition of young persons  Hoists and lifts. clothing
on dangerous machines.  Facilities for sitting
 Striking gear and devices for cutting off  First-aid appliances – one first aid
power. Working Hours, Spread Over & Overtime of Adults box not less than one for every
Weekly hours not more than 48.
Daily hours, not more than 9 hours. 150 workers.
 Canteens when there are 250 or
more workers.
Intervals for rest at least ½ hour on working for 5 hours.
 Shelters, rest rooms and lunch
rooms when there are 150 or more
Spreadover not more than 10½ hours.
workers.
 Creches when there are 30 or
Overlapping shifts prohibited.
more women workers.
Employment of Young Persons Annual office
 Welfare Leavewhenwith there
Wagesare 500
Extra wages for overtime double than normal rate of wages. or more workers.

Restrictions
Prohibitionon
ofemployment
employmentof
ofwomen before 6AM
young children e.g. and beyond 7 PM.
14 years. A worker having worked for 240 days @
 Non-adult workers to carry tokens e.g. certificate of fitnekss. one day for every 20 days and for a child
 Working hours for children not more than 4Secs.½ hrs.51, 54not
And to 56, 59 & 60
permitted to one day for working of 15 days.
work during night shift.
Secs. 51, 54 to 56, 59 & 60 Accumulation of leave for 30 days.
OFFENCE PENALTIES
Sec.92 to Secs. 79
 For contravention of the Provisions of the Act or  Imprisonment upto 2 years or fine upto Rs.1,00,000 or
Rules both
 On Continuation of contravention  Rs.1000 per day
 On contravention of Chapter IV pertaining to  Not less than Rs.25000 in case of death.
safety or dangerous operations.  Not less than Rs.5000 in case of serious injuries.
 Subsequent contravention of some provisions  Imprisonment upto 3 years or fine not less than
Rs.10, 000 which may extend to Rs.2, 00,000.
 Obstructing Inspectors  Imprisonment upto 6 months or fine upto Rs.10,
000 or both.
 Wrongful disclosing result pertaining to results  Imprisonment upto 6 months or fine upto Rs.10,
of analysis. 000 or both.
 For contravention of the provisions of Sec.41B,  Imprisonment upto 7 years with fine upto Rs.2,
41C and 41H pertaining to compulsory 00,000 and on continuation fine @ Rs.5, 000 per
disclosure of information by occupier, specific day.
responsibility of occupier or right of workers to  Imprisonment of 10 years when contravention
work imminent danger. continues for one year.

INDUSTRIAL DISPUTES ACT, 1947


Object of the Act
Provisions for investigation and settlement of industrial disputes and for certain other purposes.

Important Clarifications Power of Labour Court to give Right of a Workman during Pendency
Industry – has attained wider meaning than defined Appropriate Relief of Proceedings in High Court
except for domestic employment, covers from barber Labour Court/Industrial Tribunal can Employer to pay last drawn wages to
shops to big steel companies. Sec.2 (I) Modify the punishment of dismissal or reinstated workman when proceedings
Works Committee–Joint Committee with equal number discharge of workmen and give appropriate challenging the award of his
of employers and employees’ representatives for relief including reinstatement. Sec.11A reinstatement are pending in the
discussion of certain common problems. Sec.3 Persons Bound by Settlement higher Courts. Sec.17B
 When in the course of conciliation Period of Operation of
proceedings etc., all persons working Settlements and Awards
Conciliation–is an attempt by a third party in helping to  A settlement for a period as
or joining subsequently.
settle the disputes Sec.4 agreed by the parties, or
 Otherwise than in course of
 Period of six months on signing
Lay off & Payment of Compensation – settlement upon the parties to the
AdjudicationConditions
– Labour Court, Industrial of settlement.
for Laying off Tribunal or settlement. Sec.18
National  An award for one year after its
Failure, refusal or inability of an employerthe
Tribunal to hear and decide dispute.
to provide
Secs.7, 7Ato& 7B enforcement. Sec.19
work due Notice of Change
21 days by an employer to workmen Prior Permission for Lay off
 Shortage of coal, power or raw material. about changing the conditions of service When there are more than 100
 Accumulation of stocks. as provided in Ivth Schedule. Sec.9A workmen during proceeding 12
 Breakdown of machinery. months. Sec.25-M
 Natural calamity. Sec.25-C

Lay off Compensation


Payment of wages except for Prohibition of Strikes & Lock Outs
intervening weekly holiday  Without giving to the employer notice of strike, as  During the pendency of proceedings before a Labour Court,
hereinafter provided, within six weeks before striking. Tribunal or National
compensation 50% of total or  Within fourteen days of giving such notice.  Tribunal and two months, after the conclusion of such
basic wages and DA for a period  Before the expiry of the date of strike specified in any proceedings.
of lay off upto maximum 45 days such notice as aforesaid.  During the pendency of arbitration proceedings before an
in a year. Sec.25-C  During the pendency of any conciliation proceedings arbitrator and two months after the conclusion of such
before a conciliation officer and seven days after the proceedings, where a notification has been issued under
Prior Permission by the conclusion of such proceedings. Sub-Section(3A) of section 10A
Government for Retrenchment
 During the pendency of conciliation proceedings before  During any period in which a settlement or award is in
 When there are more than 100 (in operation, in respect of any of the matters covered by the
a Board and seven days after the conclusion of such
UP 300 or more) workmen during settlement or award. during pendency
Secs.22&23
proceedings.
Conditions of service etc. to remain unchanged under certain circumstances of proceedings
preceding 12 months.
 Three months’ notice or wages  Not to alter to the prejudice of workmen concerned the condition of service.
thereto.  To seek Express permission of the concerned authority by paying one month’s wages on dismissal, discharge
 Form QA or punish a protected workman connected with the dispute.
 Compensation @ 15 days’ wages.  To seek approval of the authority by paying one month’s wages before altering condition of service, dismissing
Sec. 25-N or discharging or punishing a workman. Sec.33
Prohibition of unfair labour
practice either by employer or
Retrenchment of Workmen Compensation & Conditions
workman or a trade union as
 Workman must have worked for 240 days.
stipulated in fifth schedule
 Retrenchment compensation @ 15 days’ wages for every completed year to be calculated at last drawn wages
Both the employer and the Union can
 One month’s notice or wages in lieu thereof.
be punished. Sec.25-T  Reasons for retrenchment
 Complying with principle of ‘last come first go’.
Closure of an Undertaking
 Sending Form P to Labour Authorities.
60 days’ notice to the labour authorities for
intended closure in Form QA. Sec.25FFA
Conditions of service etc. to remain unchanged under certain circumstances during pendency of proceedings
 Not to alter to the prejudice of workmen concerned the condition of service.
Prior permission atleast 90 days before in
 To seek Express permission of the concerned authority by paying one month’s wages on dismissal, discharge or punish a
Form O by the Government when there are
protected workman connected with the dispute.
100 ore more workmen during preceding 12
PENALTIES Offence <Punishment
Committing unfair labour practices
Sec.25-U Imprisonment of upto 6 months or with fine upto Rs.3, 000.
Illegal strike and lock-ourts
26 Imprisonment upto one month or with fine upto Rs.50 (Rs.1000 for lock-out)
Instigation etc. for illegal strike or lock-outs. or with both.
27 MATERNITY
BENEFIT ACT, 1961
Giving financial aid to illegal strikes and lock-outs. Imprisonment upto 6 months or with fine upto Rs.1, 000
28 CHECK LIST
Breach of settlement or award Imprisonment for 6 months or with fine upto Rs.1, 000
29 Coverage of the Act
Object of the Act Conditions for eligibility of
Disclosing confidential informationUpon all to
pertaining women
Sec.21 employees either upto
Imprisonment employed
6 months or with fine.On continuity of offence fine
benefits
30 To protect the dignity of
directly or through contractor except
uptoRs.200 domestic
per day
motherhoodClosure
and thewithout 60 days’ notice underemployees
Sec.25 FFA employed in mines, factories,
women Women indulging temporary of
31A dignity of a new person’s Imprisonment upto 6if months
plantations and also in other establishments the or with fine upto Rs.1, 000
unmarried are eligible for
birth by providing
Contravention for the
of Sec.33 pertaining to change of conditions of
State Government so decides. Therefore, if the maternity benefit when she is
full and healthy Imprisonment upto 6 months or with fine upto Rs.5, 000
State Government decides to apply this Act to expecting a child and has
maintenance of theService during pendency of dispute etc. worked for her employer for at
women employees in shops and commercial
Imprisonment upto 6 months or fine upto Rs.1, 000. Fine upto Rs.100
woman and her child at least 80 days in the 12 months
establishments,
When no penally is provided they also will get the benefit of
for contravention
31 this important time when immediately proceeding the
this Act. Bihar, Punjab Haryana, West Bengal, date of her expected delivery
she is not working.
U.P., Orissa and Andhra have done so. Sec. 5.
Cash Benefits Conditions for eligibility of
 Leave with average pay for six weeks before the delivery. benefits
 Leave with average pay for six weeks after the delivery.
 A medical bonus of Rs.25 if the employer does not provide free medical care to the woman.
 An additional leave with pay up to one month if the woman shows proof of illness due to the
 Ten weeks before the date of her
pregnancy, delivery, miscarriage, or premature birth.
expected delivery, she may ask
 In case of miscarriage, six weeks leave with average pay from the date of miscarriage. the employer to give her light
Non Cash Benefits/Privilege work for a month. At that time
 Light work for ten weeks (six weeks plus one month) before the date of her expected delivery, if she should produce a certificate
she asks for it. that she is pregnant.
 Two nursing breaks in the course of her daily work until the child is 15 months old.  She should give written notice to
 No discharge or dismissal while she is on maternity leave. the employer about seven weeks
 No change to her disadvantage in any of the conditions of her employment while on maternity before the date of her delivery
that she will be absent for six
leave.
weeks before and after her
 Pregnant women discharged or dismissed may still claim maternity benefit from the employer. delivery. She should also name
Exception: Women dismissed for gross misconduct lose their right under the Act for Maternity the person to whom payment will
be made in case she can not
Benefit take it herself.
 She should take the payment for
Leave for Miscarriage Leave for illness arising out of
the first six weeks before she
& Tubectomy Operation pregnancy etc. etc. goes on leave.
 She will get payment for the six
 Leave with wages at the rate of A woman suffering from illness arising weeks after child-birth within 48
maternity benefit, for a period of six our of pregnancy, delivery, premature hours of giving proof that she
weeks immediately following the day of has had a child.
birth of child (Miscarriage, medical  She will be entitled to two
her miscarriage or her medical
termination of pregnancy. termination of pregnancy or tubectomy nursing breaks of fifteen minutes
operation) be entitled, in addition to each in the course of her daily
 Entitled to leave with wages at the rate work till her child is fifteen
of maternity benefit for a period of two the period of absence allowed to her months old.
weeks immediately following the day of leave with wages at the rate of  Her employer cannot discharge
her tubectomy operation. Prohibition of dismissal
maternity during
benefitabsence
for a of pregnancy
maximum her or change her conditions of
 Discharge or dismissal of a woman employed during or on account serviceonwhile
such she
a dayis that
on maternity
periodof such absence
of or to
onegive noticemonth.
or discharge or dismissal the notice
will expire during such absence or to very her disadvantage. leave.
Sec. 10 Sec. 5.
 Discharge or dismissal during or on account of such absence or to give notice of discharge or dismissal on such a day that the notice will expire during such
absence, or to vary to her disadvantage any of the conditions of her service.
 At the time during her pregnancy, if the woman but for such discharge or dismissal would have been entitled to maternity benefit or medical bonus, etc.
 Not barred in case of dismissal for cross misconduct. Sec.
Failure to Display Forfeiture of maternity benefit
Extract of Act If permitted by her employer to absent herself under the provisions of section 6 for any period
Imprisonment may during such authorized absence, she shall forfeit her claim to the maternity benefit for such
extend to one year or
MINIMUM WAGESperiod.
ACT, 1948
fine.
For discharging or dismissing such a woman during or on account of her absence from work,
CHECK LIST
the employer shall be punishable with imprisonment which shall not be less than 3 months, but
it will extend to one year and will find, but not exceeding Rs.5, 000. Sec. 18
Object of the Act Fixation of Minimum Rates of Wages
To provide for fixing  The appropriate government to fix minimum rates of wages. The employees
minimum rates of wages employed in para 1 or B of Schedule either at 2 or either part of notification u/s 27.
in certain employments  To make review at such intervals not exceeding five years the minimum rates or so
fixed and revised the minimum rates.
Minimum Rates of Government can also fix Minimum Wages for
Wages  Time work  Piece work at piece rate  Piece work for the purpose of securing to
such employees on a time work basis  Overtime work done by employees for piece
Such as Basic rates of work or time rate workers. Sec. 3
wages etc. Variable DA
and Value of other
concessions etc. Sec. 4 Procedure for fixing and Composition of Payment of
revising Minimum Rates of Committee Minimum Rates of
Fixing Hours for Wages Representation of Wages
employer and employee Employer to pay to every
Normal Working employee engated in
Appointing Committee issue of in schedule employer in schedule employment at
Overtime
Notification etc. Sec. 5 equal number and a rate not less than
independent persons not minimum rates of wages
 Shall constitute a To be fixed by the hour, by the as fixed by Notification by
exceeding 1/3rd or its
not making deduction
normal working day day or by such a longer wage- total number one such other than prescribed.
inclusive of one or more period works on any day in person to be appointed Sec.12
specified intervals. excess of the number of hours Wages of workers who works for less than normal
by the Chairman.
 To provide for a day of
constituting normal working day. working days
rest in every period of
seven days with Sec. 9
Payment for every hour or for Save as otherwise hereinafter provided, be entitled to
remuneration.
 To provide for payment part of an hour so worked in receive wages in respect of work done by him on that day
for work on a day of excess at the overtime rate as if he had worked for a full normal working day.
restWages
at a for
ratetwo
notclass
lessof work
double of the ordinary rate of Maintenance of registers and records
Where
than an
the employee
overtime does
rate..two or(1½moretimes or Register of Fines – Form I Rule 21(4)
for agriculture Sec.15
classes
Sec.of13work to each of which a different  Annual Returns – Form III Rule 21 (4-A)
labour) Sec. 5
minimum rate of wages is applicable,  Register for Overtime – Form IV Rule 25
 Register of Wages–Form X, Wages slip–Form XI, Muster Roll–Form V Rule 26
wages at not less than the minimum rate in
 Representation of register – for three year Rule 26-A Sec. 18
respect of each such class. Sec. 16
Minimum time rate wages for piece work Claims by employees
Not less than minimum rates wages as  To be filed by before authority constituted under the Act within 6 months.
fixed . Sec. 17  Compensation upto 10 times on under or non-payment of wages Sec. 16

PENALITIES Offence Punishment

For paying less than minimum Imprisonment upto 6 months


rates of wages or with fine upto Rs.500/-
Sec. 20 For contravention of any Imprisonment upto 6 months
provisions pertaining to fixing or with fine upto Rs.500/-
hours for normal working day
etc.
TRADE UNIONS ACT, 1926
CHECKLIST

Object of the Act


To provide for the registration of Trade Union and in certain respects

To define the law relating to registered Trade Unions


Registration of trade Union Registration of trade Union

 Any 7 or more members of a trade union may, by subscribing Prescribed form with following details.
their names to the rules of the trade union and its compliance.  Names, occupations and address of the
 There should be at least 10%, or 100 of the work-men, members’ place of work.
whichever is less, engaged or employed in the establishment or  Address of its head office; and
industry with which it is connected.
 Names, ages, addresses and occupations of its
 It has on the date of making application not less than 7 persons office bearers.
as its members, who are workmen engaged or employed in the
Sec. 5
Minimum requirements
establishment for which it is connected. Cancellation of
or industry with Criminal conspiracy in trade
membership of trade union Registration disputes

Not less than 10%, or 100 of  If the certificate has been No office bearer or member of a registered
the workmen, whichever is less, obtained by fraud or mistake or trade union shall be liable to punishment
it has ceased to exist or has
under sub section (2) of conspiracy u/s 120B
willfully contravened any
Subject to a minimum of 7, provision of this Act. of IPC in respect of any agreement made
 If it ceases to have the between the members for the purpose of
engaged or employed in an requisite number of members. furthering any such object of the Trade
Disqualification of office bearers
Sec. 10 of Union. Returns
Establishments etc.Trade
Union
Sec. 17
Sec. 9A Annually to the Registrar, on or before such date as may be
If one has not attained the age of 18 years. prescribed, a general statement, audited in the prescribed
manner, of all receipts and expenditure of every registered
Conviction for an offence involving moral turpitude. Trade Union during the year ending on the 31st December.

Not applicable when 5 years have elapsed. Sec. 28

Sec. 21-A
Penalties Offence Punishment

 For making false entry in or any  Fine upto Rs.500. On continuing


omission in general statement default, additional fault, Rs.5 for
required for sending returns. each week (not exceeding Rs.50).
U/s 31
 For making false entry in the  Fine upto Rs.500.
form.

U/s 32
 Supplying false information  Fine upto Rs.200.
regarding Trade Union

PAYMENT OF BONUS ACT, 1965 & THE RULES


CHECKLIST
Applicability of Act Establishment
Every factory where in 10 or more persons are employed
with the aid of power or
Establishment includes
An establishment in which 20 or more persons are employed Departments, undertakings
Separate establishment
without the aid of power on any day during an accounting year
and branches, etc.
Computation of available surplus Components of Bonus
If profit and loss accounts are
prepared and maintained in
Income taxes and direct taxes as payable. Salary or wages includes respect of any such
dearness allowance but no department or undertaking or
Depreciation as per section 32 of Income other allowances e.g. branch, then such department
Tax Act. over-time, house rent, or undertaking or branch is
Disqualification & Deduction incentive
of Bonusor commission. treated as a separate
Development rebate, investment or Computation of gross
establishment.
development allowance. Sec.2 (21) profit Sec.3
On dismissal of an employee for For banking company, as per
Sec.5 First Schedule.
 Fraud; or
 riotous or violent behavior while on the premises of the establishment;
or
Others, as per
Eligible Employees
 theft, misappropriation or sabotage of any property of the establishment
or Second Schedule
 Misconduct of causing financial loss to the Employer to the extent that
Eligibility
bonus of Bonusfor that year. Payment of Minimum Bonus
can be deducted Employees drawing wages
Sec.4
8.33% of the salary Secs. 9 & 18.
or Rs.100 upto Rs.3500 per month or
(on completion of 5 years after 1st less.
An employee will be entitled Accounting year even if there is no
only when he has worked for profit) For calculation purposes
30 working days in that year. Rs.2500 per month
Sec.10 maximum will be taken
Time Limit for Set-off and even if an employee is
Payment of Bonus Sec. 8 Set-on Sec. 8
drawing upto Rs.3500 per
Within 8 months from the close of As per Schedule IV. month.
accounting y ear. Sec. 19 Sec.12
Maintenance of Registers andSec. 15 etc.
Records Note: The proposal to
enhance the existing ceiling of
Rs.3500 is under active
 A register showing the computation of the allocable surplus referred to in clause (4) of section 2,byinthe
consideration form A.
Govt.

 A register showing the set-on and set-off of the allocable surplus, under section 15, in form B

 A register showing the details of the amount of bonus due to each of the employees, the deductions under
section 17 and 18 and the amount actually disbursed, in form C.
Sec.26, Rule 4
PENAL Fortocontravention
Act not applicable certain employeesof ofany
LIC,provision of the DockYards,
General Insurance, Upto 6 Red months or with& Educational
Cross, Universities fine upto
Act or the
Institutions, Chambers
TY Rule
of Commerce, Rs.1000.
Social Welfare Institutions, Building Contractors,Sec.28
etc. etc. Sec.32.

PAYMENT OF
Sec. Sec.
GRATUITY
1ACT, 1972 & THE RULES
Applicability 2(s)
Wages for
Calculation
CHECKLIST
Every factory,
mine, oil field, @ 15 days’ wages
plantation, port, for every
railways, company, completed year as
Sec.

2(e)
Employee Qualifying period
Sec.

1 All employees On rendering of 5 Rule


Calculation Calculation irrespective of years’ service, 4
Piece-rated Seasonal status or salary either termination,
employee employee Display of Notice
resignation or
retirement.
@ 15 days @ 7 days’ On conspicuous
Entitlement
wages for wages for every place at the main
every completed year On completion entrance in English
completed of service. of five years’ language or the
year on an service except language
Sec. understood by
average of 3 in case of death
4(3) majority of
months’ or disablement Rule
Sec.6
wages Maximum 9 employees of the
Rule 6 Ceiling factory, etc.
Mode of Rule
Nomination payment
9
Rs.3, 50,000 Penalties
To be obtained Cash or, if so
by employer after desired, by
 Imprisonment for
expiry of one Bank Draft or
6 months or fine
year’s service, in Sec. Cheque upto Rs.10, 000
Form ‘F’ for avoiding to
Sec.8 4(6) Sec.
make payment by
Rule 8 Forfeiture of Gratuity 13 making false state-
Recovery of Protection of ment or representa
Gratuity Gratuity -tion.
 On termination of an
employee for moral
turpitude or riotous or  Imprisonment not
To apply within disorderly behavior. Can’t be attached
less than 3 months
30 days in Form I  Wholly or partially for in execution of and upto one year
when not paid willfully causing loss, any decree with fine on
within 30 days destruction of property etc. default in comply-
ing with the
provisions of Act or
Rules.

PAYMENT OF WAGES ACT, 1936


CHECKLIST
Applicability of Act Object of the Act Wages to be paid in
 Factory industrial Establishment To regulate the payment of wages of certain current coins or currency
 Tramway service or motor classes of employed persons notes
transport service engaged in Time of payment of wages All wages shall be paid in
carrying passengers or good or The wages of every person employed is current coins or currency
both by road for hire or reward. paid. notes or in both.
 Air transport service Dock, When less than 1000 persons are employed
Wharf or Jetty  Inland vessel, shall be paid before the expiry of the 7th day After obtaining the
mechanically propelled
of the following month. authorization, either by
 Mine, quarry or oil-field
Coverage of Employees Deduction made from wages Deduction for absence
Drawing average wage upto Deductions such as, fine, deduction for from duties for
Rs.6500
Fines aspm as amended
prescribed by w.e.f. amenities and services supplied by the unauthorized absence
6.9.05.
Not to imposed unless the employer, advances paid, over payment of
employer is given an opportunity to wages, loan, granted for house-building or
show cause other purposes, income tax payable, in Absence for whole or any
pursuance of the order of the Court, PF part of the day –
To record in the register contributions, cooperative societies,
premium for Life Insurance, contribution to If ten or more persons
Sec.8 any fund constituted by employer or a trade absent without reasonable
Deductions for service Deduction for damage or loss cause, deduction of wages
union, recovery of losses, ESI contributions
rendered upto 8 days.
etc.etc. Sec. 7
When accommodation amenity or
service has been accepted by the For default or negligence of an employee
employee. resulting into loss. Show cause notice has to
be given to the employee. Sec.10 Sec. 9
Sec.11
On contravention of S.5 (except sub-sec.4), S.7, S.8 Fine not less than Rs.1000, which may extend to Rs.5000.
(except Ss.8), S.9, S.10 (except Ss.2) and Secs.11 to 13. On subsequent conviction fine not less than Rs.5000, may
extend to Rs.10, 000. On contravention S.4, S.5 (4), S6,
S.8 (8), S.10 (2) or S.25 fine not less than Rs.1000. – may
extend to Rs.5000. On subsequent On conviction fine not
less.

 For failing to maintain registers or records; or


 Willfully refusing or without lawful excuse neglecting to
furnish information or return; or  Fine which shall not be less than Rs.1000 but may
 Willfully furnishing or causing to be furnished any extend to Rs.5000 – On record conviction fine not less
information or return which he knows to be false or than Rs.5000, may extend to Rs.10, 000.
 Refusing to answer or willfully giving a false answer to  For second or subsequent conviction, fine not less than
any question necessary for obtaining any information Rs.5000 but may extend to Rs.10,000
required to be furnished under this Act.
 Willfully obstructing an Inspector in the discharge of his
duties under this Act; or
 Refusing or willfully neglecting to afford an Inspector any
reasonable facility for making any entry, inspection etc.
 Willfully refusing to produce on the demand of an Fine not less than Rs.1000 extendable
inspector any register or other document kept in
WORKMEN’S
pursuance of thisCOMPENSATION
Act; or preventing any person for Upto Rs.5000 – On subsequent conviction fine
appearance
ACT, 1923 etc.
CHECKLIST not less than Rs.5000 – may extent to Rs.10,000

 On conviction for any offence and again


Coverage of Workmen  Imprisonment not less
guilty of than one month
Employer’s extendable
liability to pay upto
Applicabilityof same provision.
Contravention sixor
All workers irrespective of their status months and finecompensation
not less than Rs.2000 extendable
to a workman
 Failing or neglecting to pay wages to any
salaries employee
either directly or throughupto Rs.15000.On death or personal injury resulting into
 Additional finetotal
uptoorRs.100
partialfor each day. or occupational
disablement
contractor or a person recruited to work
All over India
abroad. Sec.1 (3) disease caused to a workman arising out
Sec.1 Amount of compensation of and during the course of employment.
 Where death of a workman results from the injury
 An amount equal to fifty per cent of the monthly wages of the Sec.3
When an employee is not liable for
deceased workman multiplied by the relevant factor on an compensation
amount of eighty thousand rupees, whichever is more.
 Where permanent total disablement results from the injury.
 An amount equal to sixty per cent of the monthly wages of the
 In respect of any injury which does
injured workman multiplied by the relevant factor or an amount
result in the total or partial disablement
of ninety thousand rupees, whichever is more
of the workman for a period exceeding
Wages Procedure for calculation
Notice
three days.
Accident
 In respect of any injury, not resulting in
Higher the age – Lower the compensation death or permanent total disablement
 Relevant factor specified in second column of Schedule IV giving
Report of accident Bar upon contracting out
Rule 11 Form EE

Any workman relinquishing his right for


Report of fatal Accident and Serious Injury within 7 days to the personal injury not permissible.
Commissioner (not application when ESI Act applies).
Sec.14
PENALTY Sec.10B

 In case of default by employer  50% of the compensation amount + interest to be paid to the
 Deposit of Compensation workman or his dependents as the case may be.
 Within one month with the Compensation Commissioner
Sec.4A