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Project report On Statutory

Labour Compliances

In the partial fulfillment of


Presented to: Presented by:

Mr.Awadhesh Singh ATUL SHARMA
( I.R.Consultant) (Student of P.S.I.T
Collage , Kanpur


An undertaking of work life, this is never an outcome of a single person;

rather it bears the imprints of a number of people who directly or indirectly
helped me in completing the present study. I would be failing in my duties if
I don’t say a word of thanks to all those who made my training period
educative and pleasurable one.

I am thankful to RELIANCE COMMUNICATIONS, for giving me an

opportunity to do summer training in the company. I have gained enriching
experiences, learned a lot and become more matured as an individual.

To begin with I acknowledge and express my gratitude to HR Team- Mr.

Manish Srivastava, Head-HR, Vikrant Makhija and Head (IR) Ajit
Kumar Srivastava Reliance Communications, Circle Head Office, UP(E)
for the support and guidance which he rendered in spite of his highly busy

I am deeply indebted to my project guide Mr. Ajit Kumar Srivastava &,

Mr. Awadhesh Singh ( IR Consultant) for giving me his valuable time,
advice, guidance, encouragement and help during the course of my project. I
am grateful to Mr. Pankaj Khare, from I.R. Department, for their help. My
humble gratitude also for the Reliance employees who helped me out by
giving me their valuable suggestions.

And at last I am thankful to all divine light and my parents, who kept my
Motivation and zest for knowledge always high through the tides of time.



This is to certify that the project entitled Statutory & Labour compliances
in Reliance Communications, being submitted for the partial fulfillment
of degree of M.B.A 2009-2011, is a record of work carried out by Atul
Sharma under my guidance and supervision.

This is to further certify that the student has attended the Reliance
Communications, Lucknow for the 06 weeks after the second semester
theory exams. His work has been satisfactory and commendable.

I wish him success in his life.

Ajit Srivastava
IR Head & Project Head Date:
I.R. Department
Reliance Communication. Place:


This is to certify that Javed Ahmad, a bonafide student of MBA- HR&IR
3rd semester of Lucknow University, Lucknow, has undergone training from
15th May 2010 to 15st July 2010 at Reliance Communications, Lucknow
under my specialized guidance and was working on project entitled
“Statutory & Labour Compliances in Reliance Communications.”

During this period he has successfully completed the project according to

the requirements specified, and report duly submitted. I am very pleased
with the quality of work, which he has shown, and wishes him the best for
his future.

Date: Ajit Kumar Srivastava

IR Head & Project Head
Place: I.R. Department
Reliance Communications


I, Atul Sharma, hereby declare that the report of the project entitled
Statutory & Labour Compliances in Reliance Communications has not
been presented as a part of any other academic work, to get my degree or
certificate, except Lucknow University, Lucknow for the fulfillment of the
degree of Master of Business Administration.

Atul Sharma


These days institutes have started giving more stress on the management
training , as it is the interface of a management student with the culture of
the corporate world and it also gives the first hand experience to use the
knowledge acquired by them in the corporate world.

My institute has also been looking in the same direction and is determined
to produce quality students who have a balanced knowledge of both
theoretical aspects and the practical knowledge as well. In the same context I
had to undergo a summer training of 08 weeks in a company.

Herein I got to do a project for the Reliance Communication, which was

basically to know the “Statutory and Labour Compliances in Reliance

The main objective of the project is to study the working IR (Industrial

relations) department at Reliance Communications. The project also gives
detailed information about Reliance Communications through the history of
Reliance Communications which also highlights the recent trend followed
by the Reliance Communications.



Reliance communication is the outcome of the late visionary Dhirubhai
Ambani’s (1932-2002) dream to herald a digital revolution in India by
bringing affordable means of information and communication to the
doorsteps of India’s vast population.

Working at breakneck speed, from late 1999 to 2002 Reliance Infocomm

built the backbone for a digital India- 60,000 kms of fibre optic backbone,
crisscrossing the entire country. The Reliance communication pan-India
network was commissioned on December 28, 2002, the 70th- birth
anniversary of Dhirubhai.

Reliance communication network is a pan India, high capacity,

integrated(wireless and wire line) and convergent(voice, data and video)
digital network, designed to offer services that span the entire Infocomm
value chain- infrastructure, services for enterprises and individuals,
applications and consulting. The network is designed to deliver services that
will foster a new way of life for a new India.

Late Dhirubhai Ambani built The Reliance from scratch to be in the

reckoning for a place in the Global Fortune 500 list. This achievement is
even more significant due to the fact, that the entire growth was achieved in
an organic manner and in a span of just 25 years.

Dhirubhai Ambani, Founder Chairman of the reliance group, had an acute

sense that education alone empowers people. He was a great communicator.
He communicated to inspire, to guide, to educate and to motivate.

He wanted a telephone call to be cheaper that a post card. This, he believed,

would transform every home, empowers every Indian, remove the
roadblocks to opportunity and demolish the barriers that divide our society.


Reliance Communications envisions a digital revolution that will bring
about a New Way of Life, A Digital Way of Life, For a New India.

With mobile devices, networks and broadband systems linked to powerful

digital networks, Reliance Communications will usher fundamental changes
in the social and economic landscape of India.

Reliance Communications will help men and women connect and

communicate with each other. It will enable citizens to reach out to their
work place, home and interests, while on the move. It will enable people to
work, shop, educate and entertain themselves round the clock, both in the
virtual world and in the physical world. It will make available television
programmes, movies and news capsules on demand. It will unfurl new
simulated virtual worlds with exhilarating experiences behind the screens of
computers and televisions.

Users of Reliance Communications' full range of services would no longer

need audiotapes and CDs to listen to music. Videotapes and DVDs would
not be necessary to see movies. Books and CD ROMs would not be needed
to get educated. Newspapers and magazines would not be required to keep
abreast of events. Vehicles and wallets will become unnecessary for

Reliance Communications will disseminate information at a low cost. "Make

a telephone call cheaper than a post card". These prophetic words of
Dhirubhai Ambani will be a metaphor of profound significance for Reliance
Communications. Reliance Communications will regularly unfold new
applications. Continually adapt new digital technologies. Create new
customer experiences. Constantly strive to be ahead of the world.

Reliance Communications will transform thousands of villages and hundreds

of towns and cities across the country. Above all, Reliance Communications
will pave the way to make India a global leader in the knowledge age.


"We bet on people" said Dhirubhai Ambani, our legendary founder. This is
at the core of Reliance Communications’ Business philosophy. Reliance
Communications believes in hiring world-class talent and supporting them
with an enabling organizational framework.

We have already invested in 50,000 person training days and state-of-the-art

e-learning facilities. We are introducing several progressive and employee
friendly HR practices in e-HR, Employee Self Service, Performance
Management System, 360° Feedback and Leadership Development

Our Vision is to develop Global Leaders in India by providing them

opportunities to learn through a comprehensive and contemporary
framework of continuing education.


Anil Dhirubhai Ambani

Mr. ANIL D. Ambani ,48, is the chairman of Reliance Communications

venture capital ltd. and Chairman and Managing Director of Reliance
Energy Ltd. Till recent the position of the vice Chairman and Managing
Director of Reliance Industries Ltd.

Birth place : Mumbai, India

Date of Birth : June 4, 1959
Father’s Name : Dhirubhai Hirachand Ambani
Mother’s Name : Kokilaben Dhirubhai Ambani

• Bachelor of Science, University of Bombay.
• MBA from the Wharton School, University of Pennsylvania, USA.

• Joined Reliance in 1983,as co-chief executive officer. Has to his credit
an innovation in the Indian capital markets.
• Pioneered India’s a first Forays into overseas capital markets with
international public offerings of global depository receipts,
convertibles and bonds.
• Directed Reliance in it’s efforts to raise, since 1991,around US $ 2
billion overseas financial markets, with the 100 year. Yankee bond
issue in January 1997 high point of his endeavors.
• With an investment of over Rs.36,000 crore (US $ 9 billion) in
petroleum, petrochemicals, power generation, telecommunication

services and a power of three-year time frame, he has esteemed the
Reliance Group to it’s current leading textiles-petroleum-
petrochemicals-power-infocom-telecom player.

• Wharton Board of Overseers, The Wharton School, USA
• Central Advisory Committee, Central Electricity Regulatory
• Board of Governors, Indian Institute of Management, Ahmedabad
• Board of Governors Indian Institute of Technology, Kanpur
• In June 2004, he was elected for a six-year term as an independent
member of the Rajya Sabha, Upper House of India's Parliament a position
he chose to resign voluntarily on March 25, 2006.


• Conferred the 'CEO of the Year 2004' in the Platts Global Energy
• Rated as one of 'India's Most Admired CEOs' for the sixth
consecutive year in the Business Barons - TNS Mode opinion poll,
• Conferred 'The Entrepreneur of the Decade Award' by the Bombay
Management Association, October 2002
• Awarded the First Wharton Indian Alumni Award by the Wharton
India Economic Forum (WIEF) in recognition of his contribution
to the establishment of Reliance as a global leader in many of its
business areas, December 2001

• Selected by Asia week magazine for its list of 'Leaders of the
Millennium in Business and Finance' and was introduced as the
only 'new hero' in Business and Finance from India, June 1999

The strongest influence in Anil's life is his father, Shri Dhirubhai Ambani.
Here are a few quotes from the legend himself.

"Give the youth a proper environment. Motivate them. Extend them the
support they need. Each of them have infinite source of energy. They will

"Growth has no limit at Reliance. I keep revising my vision. Only when you
dream it you can do it."


Reliance- Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group
founded by Shri Dhirubhai Ambani (1932-2002), runs among India’s top
three private sector business houses in terms of net worth. The group has
business interests that range from telecommunications (Reliance
communications Ventures Ltd.) to financial services (Reliance Capital Ltd.)
to the generation and distribution of power (Reliance Energy Ltd.)

Reliance- ADA Group’s flagship company Reliance communication is

India’s largest private sector information and Communications Company
with over 20 million subscribers. The company has established a pan- India,
high capacity, integrated (wireless and wire line) and convergent (voice, data
and video) digital network, designed to offer services that span the entire
Infocomm value chain.


Reliance - ADA Group


The healthcare industry is staged for tremendous growth in India. The

drivers for health have never been so explicit and there is need to ensure that
health industry continues to provide ‘Sustainable health’, otherwise the
impact on the growth of economy could be adverse. Clearly, this is the area
that Reliance ADA Group is committed in participating as a partner and a

Our focus is to provide a platform for ‘financial’ and ‘geographical’ access
to health. We hope to support existing initiatives while entering in areas that
have seen limited growth in India and we believe this will transform the
existing landscape.

Health is a global opportunity and we are planning to participate in the

global market place.


Reliance General Insurance, a subsidiary of Reliance capital, is one of the

first non-life companies to get the license from the IRDA, RGICL offers an
exhaustive range of insurance products that covers most risks including
property, Marine, casualty and liability.


Reliance capital limited is a Non-Banking Company (NBFC) registered with

the Reserve Bank of India under section 45-IA of the Reserve Bank of India
Act, 1934. RCL was incorporated as a public limited company in 1986 and
is non listed on the Bombay stock exchange and National stock exchange

With a net worth of Rs. 4123 crore and over 1, 65,000 shareholders, RCL
has established its presence as a leading player in the financial services
sector in the country. On conversion of outstanding equity instruments the
net worth of the company will increase to over Rs. 4,568 crores. RCL ranks
among the top 3 companies in the private financial services and banking
sector in the country in terms of net worth. RCL sees immense potential in
the rapidly growing financial services sector in India and aims to become a
dominant player in this industry and offer fully integrated financial services.


Reliance Energy Ltd. is India’s leading integrated power utility company in
the private sector. It has a significant presence in generation, transmission
and distribution of power in Maharashtra, Goa and Andhra Pradesh.

With the ushering in of the power sector reforms and in the new
environment of opportunity for the power sector, REL is a key player in this
transformation process. Reliance’s gas finds in KGD6 block in Krishna
Godavari basin which constitutes 60% of India’s present total gas
production, will provide an enormous opportunity to scale up power
generation capacities in India. With the new gas find, REL has the unique
advantage of integration from ‘well head to wall socket’.

REL and its affiliate power companies rank among the top 25 listed private
sector companies on major financial parameters. REL is part of the Reliance
industries India’s private sector company ranked among the world’s 175
largest companies in terms of net profit and the 500 largest companies in
terms of sales.


Reliance Capital Asset Management Limited (RCAM), a company
registered under the company’s act,1956 was appointed to act as the
investment manager of Reliance Mutual Fund.
Reliance Capital Asset Management Limited was approved as the Asset
management company for the Mutual fund by SEBI wide their letter no.
IIMARP/1264/95 dated June 30, 1995.The mutual fund has entered into an
investment Management Agreement (IMA) with RCAM dated May 12,1995
and was amended on August 12,1997 in line with SEBI (Mutual Funds).


Telecommunication networks are the infrastructure for provisioning
Communications services. All businesses today are dependent on telecom to
continue their day-to-day operations. The range and quality of services that
can be provisioned is determined by the quality of the network deployed.

The Reliance Communications network consists of 60,000 kilometers of

optical fiber cables spanning the length and breadth of India. These cables
can carry thousands of billions of bits per second and can instantly connect
one part of the country with another. This physical network and its
associated infrastructure will cover over 600 cities and towns in 18 of the
country's 21 circles, 229 of the nation’s 323 Long Distance Charging Areas
(LDCAs) and broadband connectivity to over 190 cities. This infrastructure
will be backed by state-of-the-art information management systems and a
customer-focused organization.

An interesting aspect of the network is the manner in which these fibers are
interconnected and deployed. Reliance's architecture is so fault-tolerant that
the chances of failure are virtually nil. Reliance's ring and mesh architecture

topology is the most expensive component to implement, but assures the
highest quality of uninterrupted service, even in the event of failure or
breakage in any segment of the network. Reliance has 77 such rings across
the country with at least three alternative paths available in metros.
Connected on this topology, the service has virtually no chance of disruption
in quality performance.

Reliance's objective is to create value for our customers. Reliance will

innovate ceaselessly so that state-of-the-art technology can be leveraged to
create products and services that are affordable.

Access networks determine the services that can finally be delivered to

customer. Our network has wireline access technologies based on fiber as
well as copper. Fiber in the access network makes broadband services easy
to deploy. The wireless access network deployed for CDMA 1X is spectrum
efficient and provides better quality of voice than other networks and higher
data rates. CDMA 1X also provides an upgradation path to future


S – Strength
W – Weakness
O – Opportunity
T - Threats

Strengths Of The Company

• It is well established and famous company not only in India but as

well as in abroad.
• It uses CDMA 2000 1-X technology, which gives high speed data
transmission and connectivity.
• It provides a huge pool Value Added services(VAS)
• It provides world class product and services at cheaper prices.
• It provides special features with handsets like R-Connect, R-World
which are JAVA enable.
• It also provides 144 kbps internet connection.

Weaknesses Of The Company

• Currently network coverage is main weakness of the company.

• The company is bound to take its Network Compatible handsets.
• Customers are bounded with network compatible handsets
therefore they can’t frequently change their handsets with the latest
models coming up regularly in the market.
• The company is unable to satisfy their customers fully who use its
R-World and R-Connect features as well as with the prices charged
for it.
• The company is unable to maintain a rigid price tag for their
products. It varies from region to region.
Opportunities For The Company

• Today the Indian Economy is growing rapidly, therefore has a vast

opportunity to grow and expand.
• The company has established itself to create and fulfill the needs and
demands of all classes of society.
• The Company has an opportunity in most of the part of the country as
well as semi- Urban and rural areas to penetrate where other networks
have not yet penetrated.

• It has an opportunity to fulfill he needs of high speed data
transmission by using its broadband services.
• It has an opportunity to bind up the new upcoming generation
customers who are more interested in latest handsets and value added
services like – latest ringtones, GPRS, R-Connect, etc.
• New and attractive advertisements can create high demand for

Threats For The Company

• The company has to look forward for other promotional programs
apart from its Value Added Services (VAS) and low prices strategies.
• The major threat generated by new entrants which are using CDMA
technology and GSM technology, tend to lue the customers by giving
them short term attractive promotional schemes and attractive and
latest handsets.



Labour law (also known as employment or labor law) is the body
of laws, administrative rulings, and precedents which address the
legal rights of, and restrictions on, working people and their
organizations. As such, it mediates many aspects of the
relationship between trade unions, employers and employees. In
Canada, employment laws related to unionised workplaces are
differentiated from those relating to particular individuals. In most
countries however, no such distinction is made. However, there are
two broad categories of labour law. First, collective labour law
relates to the tripartite relationship between employee, employer
and union. Second, individual labour law concerns employees'
rights at work and through the contract for work. The labour
movement has been instrumental in the enacting of laws protecting
labour rights in the 19th and 20th centuries. Labour rights have
been integral to the social and economic development since the
industrial revolution


Labour law arose due to the demands of workers for better
conditions, the right to organise, and the simultaneous demands of
employers to restrict the powers of workers' many organizations
and to keep labour costs low. Employers costs can increase due to
workers organizing to win higher wages, or by laws imposing
costly requirements, such as health and safety or equal
opportunities conditions. Workers' organisations, such as trade
unions, can also transcend purely industrial disputes, and gain
political power - which some employers may oppose. The state of
labour law at any one time is therefore both the product of, and a
component of, struggles between different interests in society.
Labour law arose due to the demands of workers for better
conditions, the right to organise, and the simultaneous demands of
employers to restrict the powers of workers' many organizations
and to keep labour costs low. Employers costs can increase due to
workers organizing to win higher wages, or by laws imposing
costly requirements, such as health and safety or equal
opportunities conditions. Workers' organisations, such as trade
unions, can also transcend purely industrial disputes, and gain
political power - which some employers may oppose. The state of
labour law at any one time is therefore both the product of, and a
component of, struggles between different interests in society.
















SCHEME, 1948




ACT, 1986



The establishments of Reliance Group of Industries are required to comply

with the provisions of the following Acts / Rules in their day to working:

Contract Labour / Regulation & Abolition Act 1970:

(A) Obligations on Principal Employer

Each establishment employing twenty or more workmen as
contract labour is required to be registered under the contract
Labour / Regulation & Abolition Act 1970 by making an
application in triplicate in form I (appended to the Rules)
alongwith Registration fee through Draft and obtain a
certificate of Registration and shall maintain a register of
contractors in form XII appended to rules. If there is any
change in the particulars given in the certificate of Registration,
the Principal Employer, within 30 days of such change, intimate
to the Registration officer particulars of such change.

Principal Employer of the registered establishment is required to

display at a prominent place in the establishment , notices
showing the rates of wages , hours of work , wage periods , date
of payment of wages , names and addresses of Inspectors and
date of payment of unpaid wages in English and in Hindi and in
the local language understood by majority of workers. Every
Principal Employer, within fifteen days of the commencement /
completion of each contract work under each contractor, shall
submit a return to the inspector in form VI-B ( appended to the
rules ).

Every Principal Employer of a registered establishment shall

send annually a return in formXXV, in duplicate to Registering
officer so as to reach him not later than 15th February following
the end of the year to which it relates.

The Principal Employer shall ensure the presence of his

authorized representative at the place and time of disbursement of
wages by contractor to worker; who would record a certificate in
the Register of wager as “certified that the amount shown in col.

no._____ ______ has been paid to the workman concerned in my
presence on_______at_________.”
Amenities such as canteens , Rest rooms , wholesome drinking
water , sufficient , no. of latrines & urinals and first aid facilities
required to be provided by contractor, to contract labour , if not
provided shall be provided by P.E. at the cost of contractor.

The responsibility for payment of wages to each worker

employed as contract labour is that of contractor but if contractor
fails to pay wages within the prescribed period or makes short
payment then the Principal Employer shall be liable to pay wages
in full or unpaid balance due to worker employed by contractor
as contract labour and recover the amount so paid from the
contractor by deduction from any amount payable to contractor
under any contract.

(B) Obligations on contractors:

A person undertaking to produce a given result for the

establishment through contract labour or who supplies contract
labour for any work of the establishment numbering twenty or
more is required to comply with following requirements under
the Act as contractor.

No contractor shall undertake or execute any work through

contract labour except under and in accordance with a license
issued by licensing Officer for the area. Application for license
shall be in triplicate in form IV appended to rules accompanied
by form V issued by Principal Employer and security as also
license fee through separate demand drafts.

The contractor is required to provide sufficient supply of drinking

water, a sufficient number of latrines and urinals, washing
facilities & first aid facilities to contract labour at work place.

In places where contract labour is required to halt at night in

connection with the working of the establishment and the

contract work is likely to continue for three months of more, the
contractor shall maintain rest room for the use of workers.

In contract works where contract labour numbering 100 or more

are employed and contract work is likely to continue for six
months or more, an adequate canteen shall be provided by

Contractor shall display at workplace a notice showing working

hours, weekly rest day, wage period, date, time & place of
payment of wages, date of payment of unpaid wages, minimum
rates of wages being paid and name & address of Inspector in
English and in Hindi and in local language understood by
majority of workers and send a copy of it to the Inspector.

Copy of notice showing the wage period & place and time of
disbursement of wages displayed at site shall be sent to Principal
Employer under acknowledgement.

The contractor shall maintain following registers in the prescribed

formats under the Act:

1. Register of persons employed.

2. Muster Roll.
3. Register of wages.
4. Register of deductions for damages or
5. Register of fines.
6. Register of Advances and
7. Register of overtime.

Where wage period is week or more contractor shall issue

wages slips in prescribed proforma.

Every contractor shall issue employment card in prescribed
proforma to each worker within three days of employment and
on termination of employment issue a service certificate in the
prescribed format.

Every contractor shall display an abstract of the Act and Rules

in English and Hindi and the language spoken by majority of

Every contractor shall send half yearly return (in duplicate) in

prescribed proforma to the Licensing Officer not later than 30
days from the close of half year.

Minimum Wages Act 1948/ Minimum Wages (Central)Rules


The Act provides for fixation of minimum rates of Wages in

certain employment and make rules for implementation of the
provisions of the Act.

Each employer who employs, whether directly or through

another person or whether on behalf of himself or any other
person, one or more employees in any employment specified in
the schedule to the Act in respect of which minimum rates of
wages have been fixed by notification is required to pay wages
at a rate not less than the minimum rates of wages so fixed.

Wages may be fixed by hour, day or month. A normal working

day is defined as 9 hours for an adult and 4 ½ hours for a child
and spread over including rest intervals shall not be more than
12 hours on any day. Worker working for more than 9 hours a
day or 48 hours a week shall be entitled for overtime wages at

the rate of double the ordinary rate of wages in respect of
overtime working.

Employer shall provide a day of rest every week to an

employee in a schedule employment which shall normally be
Sunday but employer may fix any other day of week as the rest
day for any employee or class of employees by a display of
notice to that effect in the place of employment.

Employer shall display at the main entrance to the

establishment and its office notices in prescribes form (formIX-
A under the Act) containing minimum rates of wages, working
hours, weekly rest, wages period, date of payment and name
and address of Inspector in English or and in language
understood by majority of workers. An extract of Act/Rules
shall also be displayed.

Every Employer shall maintain the following registers/records

in prescribed proforma at work spot:

1. Register of wages (form X under the Rules)

2. Muster Roll (Form V)
3. Overtime Register (Form IX)
4. Register the fines (Form I)
5. Register of deductions for damage or loss (Form II)

Every employer shall issue wage slip (in Form XI) to every
worker at least a day prior to the disbursement of wages.

The above registers/records are required to be preserved for 3
years from the date of last entry therein.

Every employer is required to sent annually a return (form III )

to reach the Inspector not later than 1st February following the
end of the year to which it relates.

Uttar Pradesh Dookan Aur Vanijya Adhisthan Adhiniyam


1. This Act is applicable to shops and establishment in the areas

mentioned in the schedule to the Act.
2. Every shop and commercial establishment shall register itself
with Chief Inspector within 3 months of business.
3. No shop or commercial establishment shall on any day open
before 9 am and keep open after 7 pm.
4. Working hours shall be five in case of child, six in case of
young person and eight in case of any other employee.
5. An employee, other than child & young person may be allowed
to work longer hours but not exceeding 10 hours, including
overtime, on any day except on days of stock taking and
making of account.
6. The total number of hours of overtime work shall not exceed
fifty in a quarter.
7. Overtime wages to be paid shall be at double the rate of
ordinary wages.
8. The total spread over of working in a day including rest
intervals of half an hour after every 5 hours working shall not
exceed twelve hours. Intimation of such overtime working
shall be sent to Inspector within 24 hours of the expiry of
period of such work.
9. Every establishment shall remain closed for one day in a week
(which may generally be Sunday) and eight public holidays
prescribed under the rules.

10.With the prior approval of District Magistrate of the area an
alternate close day maybe observed .A notice of all close days
and weekly holidays shall be displayed in a conspicuous place
in the establishment.
11.Every employee other than watchman or caretaker shall be
allowed holiday on every closed day which is a public holiday
and one weekly off day.
12.Every employee, in addition to public holidays, & weekly off
days, shall be entitled to 15 days earned leave for each
completed twelve months of service. Total period of leave
admissible at one time shall not exceed 45 days.
13.Watchman or caretaker in continuous employment for12
months shall be entitled for sixty days earned leave.
14.Employee in continuous employment for six months or more
shall be entitled for 15 days Earned leave in a year.
15.Every employee shall also be entitled for 10 days casual leave
in a year.
16.Wage period may be monthly, fort nightly, weekly and daily.
17. Where wage period is a month, wage shall be paid by 7 of the

month following wage period and where wage period is

fortnight or a week wage shall be paid within 3 days after
completion of fortnight or week.
18.No deduction shall be made from wages except deductions
prescribed under the Act.
19.No employee other than an employee engaged for a specified
period or against leave vacancy shall be discharged without
serving a notice in writing of grounds of discharge and giving
him time of at least 30 days.
20.No Woman shall be allowed to work during night or during a
period of six weeks following the date of child delivery.
21.A seven days clear notice, in writing is required to be given by
pregnant woman employee for absence from duty for a period
not exceeding six weeks before the expected date of delivery.
22.Maternity leave shall be authorised absence from duty without
23.Woman employee shall be entitled for maternity benefits if she
has been in continuous employment of same employer for a
period not less than six months

24.The employer shall maintain following registers in the
prescribed proforma:
a) Attendance register
b) Register of wages
c) Register of deductions from wages
d) Register of leave
e) Register of fines.

ESI.Act 1948

Act applies to establishment where 20 or more persons are

employed or were employed on any day preceding twelve months.

1. Each establishment to be registered with ESIC

2. All employees of shops & establishments in receipt of wages up
to 15000/- pm are to be insured.
3. Principal Employer to pay contributions in respect of each
employee whether employed directly or through a contractor,
employees contributions in the first instance and recover the
amount of contribution from employee or immediate employer.

Employees Provident Fund and ( Misc. Provisions ) Act

1. The Act applies to establishments employing 20 or more

2. Every employee employed in or in connection with the work of

an establishment shall be a subscriber to the fund.
3. The employer shall in the first instance, pay every month both
the contributions payable by him and also on behalf of
employees employed by him directly or by or through

Equal Remuneration Act 1976

1. The Act has been made applicable to different establishments

including communication, construction, storage and warehouses
and is applicable to all Groups of Reliance Industries.
2. Act provides that there would not be any discrimation in
remuneration in any employment on the basis of sex, for
performing the same work or work of similar nature.
3. No employer shall discriminate between male and female in
making recruitment for same work except where employment
of women is restricted or prohibited by law.
4. Each employer shall maintain register and other documents in
relation to workers employed (Form ‘D’ under the rules)

Payment of Bonus Act 1965

1. This Act applies to every establishment in which twenty or

more persons are employed on any day during the accounting
2. All employees drawing wages or salary not exceeding Ten
thousand and five hundred are covered under the Act.
3. Employer is required to pay statutory minimum of
- 8.33% of the wages earned or rupees one
hundred & fifty which ever is higher
whether or not the employer has any
allocable surplus in the Accounting Year.
- Maximum rate of bonus payable to an
employee in respect of any accounting
year, if allocable surplus exceeds the
amount of minimum bonus can be 20% of

salary or wages earned during that
accounting year.
4. Every employer is required to maintain following registers:
• Register showing
computation of allocable surplus (Form ‘A’
under the rules )
• Register showing set
on and set off of the allocable surplus ( Form
‘B’ )
• Register showing
details of the amount of bonus due to each
employee ( Form ‘C’ )
• Annual Return in
prescribed form (Form ‘D’) is required to be
submitted within 30 days after statutory time
limit of six months from close of accounting

Payment of Gratuity Act 1972

Each shop or establishment in which ten or more employees are

employed or were employed on any day of preceding 12 months are
required to pay Gratuity to employees on the termination of his
employment after he has rendered continuous service for not less than
five years:

(a) on his superannuation, or

(b) on his retirement or resignation; or
(c) on his death or disablement due to accident or



Object of the Act

To provide Holidays and to regulate the hours of employment

of employees, working in Shops and Commercial

Salient Features

• The provisions of this Act shall apply to the establishment

situated within the areas of Municipal Corporation and municipal
area and notified town areas.
• In this regard notification is issued by U.P. Govt.
• Commercial establishment is defined in sec 2(4)
• Every Web World is a Commercial Establishment.

As per provision of Sec 2(6)

• “Employee” means a person wholly or mainly employed

on wages by an employer in, or in connection with any
trade, business or manufacture carried on in a shop or
commercial Establishment and includes-
o Caretaker, mali or a member of the watch and ward

o Any clerical or other staff of a factory or industrial
establishment, which is not covered by the provisions
of the Factories Act,1948
o Any apprentice or a contract or piece-rate worker.

As per provision of Sec2 (7)

• “Employer” means: a person who owns, or who holds

charge of, or has ultimate control over trade, business or
manufacture carried on in a shop or commercial
establishment, as the case may be, and includes the
manager, agent or any other person acting on behalf of the
employer in the management or control of such trade,
business or manufacture.

Registration of the Commercial Establishment

• As per provision of sec 4(B), every establishment will be

duly registered for 5 yrs, with prescribed fees.
• After expiry of the period, it will be duly renewed by
depositing prescribed fees.

Weekly Closed Day

• Establishment shall be closed on weekly holiday as

prescribed by concerned district magistrate.
• 8 Public holidays shall be observed by the employer in whole

List of 8 Public Holidays

Of Dr. c
Ambedkar Day Holi
List of
Indepen Public
dence Holidays

Kartik Fitr.
Gandhi Purnim
Jayanti Diwali aaa

Maintenance of register, records, etc.

As per provision of sec 32, rule 18, every employer shall maintain:
• Who is employing up to 10 employees, shall maintain a
register of attendance, payment of wages and leave facilities
in Form ‘CC’.
• Who is employing 10 to 25 employees, shall maintain a
register of attendance and wage in Form ‘G’, a register of
leave in Form ‘H’, a register of deduction in Form ‘D’.

Display of notices

Every employer shall exhibit in his Commercial establishments,

• Extract of the act and rules in Hindi.
• Registration number shall be displayed on notice board.
• List of 8 Public Holidays
• Day of weekly holiday.
Register and notices to be kept by employer, to any year shall be
preserved for 6 years and it can be produced before an Inspector
on demand.


Object of the Act

• The minimum wages act was enacted in 1948 to provide

minimum statutory wages for scheduled employment with a
view to obviate the chances of exploitation of poor down-
trodden working class people.
• The basic aim of the act was fixing living wage just to create
social and industrial harmony.
• The act provides the provision of maximum daily working
hours, weekly rest day with wages and provision for

Scope and Coverage of the Act

• The act extends to the whole of India and applies to

employees of scheduled employment of establishment
employing 1 or more persons.

Salient features

Sec 2(b), ‘Appropriate Government’ means-

• In relation to any scheduled employment carried on by or
under the authority of the [Central Government or a railway
administration], or in relation to a mine, oilfield or a major
port, or any corporation establishment by [a Central Act], the
Central Government;

• In relation to any other scheduled employment, the [State],

Sec 2(g), ‘Scheduled employment’ means: an employment

specified in the schedule, or any process or branch of work
forming part of such employment.

• ‘Employer’ means- Any person who employs, whether

directly or through another person, or whether on behalf of
himself or any other person, one or more employees in any
scheduled employment in respect of which minimum rats of
wages have been fixed under this act;
• ‘Employee’ means: any person who is employed for hire or
reward to do any work, skilled or unskilled, manual or
clerical, in a scheduled employment in respect of which
minimum rates of wages have been fixed and includes an out
• ‘Wages’ means: all remuneration, capable of being expressed
in terms of money, which would, if the terms of the contract
of employment, express or implied, were fulfilled, be capable
to a person employed in respect of his employment or of
work done in such employment and includes house-rent

Sec 27, Power of State Govt. to add to schedule –

• The appropriate govt. (State) may after giving 3 months

notice of its intention, by notification, add any schedule of
employment regarding which minimum wages is to be fixed.
After notification minimum rates of wages shall be
applicable in concerned employment.

Payment of minimum rates of wages

As per provision of sec 12, every employer shall pay to every

employee engaged in scheduled employment under him at a rate
not less than the wages fixed for the establishment.

Minimum Wage rates applicable from the period

1/04/10 to 30/09/10


PERIOD (RS.) (PER 01/10/09 TO MONTH) 01/04/10 TO
MONTH) 31/03/10 01/04/10 TO 30/09/10
01/10/09 TO 30/09/10

1 2 3 4 5
UN 3451.72 132.75 3795.40 145.97
SEMI 3934.97 151.34 4326.75 166.41
SKILLED 4367.76 168 4802.64 184.71

• As per provision of sec 13, no employer shall take more than 8
hours of duty from his/her employee.
• Employer shall provide a day of rest in every period of
seven days, with remuneration.
• As per provision of sec 14, where an employee, whose
minimum rate of wages is fixed under this act works for longer
period than fixed normal wage period shall be paid overtime.
The duration of work shall not exceed 8 hours in a day.

Claims for violation of sec 12, non payment of minimum


• As per provision of sec 20(2), if any employee is not paid

minimum wage, employee himself, or any legal practitioner or
any official of registered trade union authorized in writing on his
behalf, or any Inspector may file a claim application in Form VI
before prescribed authority.
• As per provision of sec 20(3), the authority shall issue notice to
parties and after hearing the case on merit, if finds that employer
has paid less than minimum wage shall issue direction to
employer for making payment (less paid minimum wage) with
compensation up to 10% of less wages.
• Any amount directed to be paid under this sec, may be recovered
as a fine.

Maintenance of registers and records

• As per provision of sec 18, read with UP MW rules 26,

following register shall be maintained at the work spot and
will be produced for inspection on demand made by any

o Muster-roll- [FORM V]
o Register of wage and deductions – [FORM II]
o Over time register-[ FORM IV]
• It is to be noted that in a web world above registers will not be
maintained separately, as register prescribed in UP Shop act
suffices the purpose of the act.
• Every Employer shall issue a wage slip to his/her employee before 24
hours from the payment of salary/wage.

Display of notices and abstract, etc.

• Every employer shall keep exhibited at main entrance to the

establishment or at notice board of office;
• Abstract of the act in English and in a language understood by
majority of the workers.
• Minimum rates of wages fixed for the establishment.
• Name and address of the Inspector.


The Object of the Act

The object of the Act was to do away with the long practiced inhuman
exploitation of contract Labour prevailing in industries other Labour
oriented industrial & allied social setup. The preamble of the Act
suggests for :-
• To prohibit the employment of contract Labour and ,
• To regulate the working conditions of the contract Labour where
ever such employment is not prohibited.
Thus, the purpose of the Act is to abolish the contract system in the
industrial establishments & where ever it is not possible at one point of
time to go for regulation of the system in certain circumstances.

What Contractor & Contract Labour Is?

• Contract Labour is a workmen which means any person employed in

or in connection with the work of any establishment to do any
skilled, semiskilled, unskilled, manual, supervisory, technical or
clerical work for hire or reward but does not include the person
employed mainly in a managerial, administrative or supervisory
capacity drawing wages exceeding Rs.500/-.

• ‘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

The Act Applies to :

CL (R&A) Act Applies to every establishment wherein 20 or more
workmen are employed or were employed during proceeding 12

Contractor who employs or has employed 20 or more workmen in

relation to his contract work during proceeding 12 months has to obtain
license under section 12 from the ALC & the Licensing Officer

Responsibility of Principal Employer under CL(R&A) ACT

To obtain registration certificate under section 7. For this he has to

make an application in form-I to the Registering officer in whose area
his establishment is located. All ALC have been appointed as
Registering as well as licensing officer in respect of their area of
jurisdictions by the Govt. of India in the central sphere. The application
has to be accompanied by a cross demand draft of appropriate value of
fees payable to the Registering officer in the union bank of India. On
receipt of the certificate of registration the principal employer shall
issue a certificate in form –V to the contractor engaged. Certificate in
form –VI-B is to be issued to the Inspector of the area intimating the
date of commencement of the contract work. A form of contractor in

from- III is required to maintain by the principal employer at his

Notice to be Displayed by Principal Employer

• Notices showing the Rate of wages.

• Hours of work.
• Wages Period.
• Date of payment of wages.
• Name & Addresses of the Inspector having Jurisdiction.
• Date of payment of unpaid wages.
• Notice should be displayed in English, Hindi & in the Local
Language understood by the majority of the workers.
• The Notice shall be correctly maintained in a clean & legible
• The copy of the notice shall be sent to the Inspector and
whenever any changes occur the same shall be communicated to him

Returns & Records to be Maintained by the Principal


• Registers of contractors in Form-XII is to maintain & kept at

• Annual Return in Form – XXV for the year ending 31st
December to be submitted to Registering officer.

Responsibility of Contractor
• Application for license in form-IV, in triplicate with form-TR-6
along with form –V & crossed Demand draft of the appropriate
amount towards security deposit @ of Rs.90/- per workmen &
license fee of the prescribed amount is to be submitted to the
licensing officer of the area on whose jurisdiction his contract work
• The license is issued for a period of 12 months from the date of
issue. It is renewable under Rule 29 by applying one month before of
its expiry. The fee for renewal is the same as that of grant of license.
• The Act also provides for grant of temporary license &
registration for the work of short duration.
• There is also a provision for grant of duplicate
license/registration incase of original license/registration is lost,
defaced or accidentally destroyed on payment of Fee of Rs.5/-
• On obtaining license the intimation for
commencement/Completion of the work will be given to the
Inspector in FORM-VI-A.

Notices to be Displayed by Contractor at his work Place

• Contractor has to display a copy of license as well as abstract of
act & rules.
• Notices showing Name & address of the establishment and
contract work.
• Name & address of contractor
• Working Hrs.
• Wage period
• Weekly day of rest

• Date of Payment
• Date of payment of unpaid wages
• Details of minimum wages payable & wages actually paid
• Name & Address of the Inspector.
• Notice should be displayed in English, Hindi & in the Local
Language understood by the majority of the workers.
• The Notice shall be correctly maintained in a clean & legible
The copy of the notice shall be sent to the Inspector and whenever any
changes occur the same shall be communicated to him forthwith

Payments of Wages

• Wages can be time rate or Piece rate of course, by kind also.

• Wages can be fixed by an agreement, award or contract or by
notification prescribing the minimum rates of wages by the Govt. In
case the contractual wages OR Piece rate wages or in kind wages
false below the minimum rates of wages than the minimum wages
will be payable.
• The contractor can have a wage period of a week /fortnight or a
month. But it can not be beyond a month.
• Wages are payable by 7th of the month after expiry of the wage
period if the No. of workmen employed are below 1000. In higher
cases it is payable by 10th of the month.
• Wages have to be paid on the work place & during working
• If the employment of the workmen is terminated his wages are
to be paid before expiry of the second working day from the day on
which his employment is terminated.

• Wages are to be paid to the worker direct & without any
deduction and shall be paid in presence of the principal Employer

Register to be Maintained by Contractor at his Work Place

• Muster roll form – XVI

• Register of wages form – XVII
• Register of Fines Form – XXI
• Register of Deduction for damages or loss Form – XX
• Register of advances form – XXII
• Register of Over Time form – XXIII
• Register of workmen employed by Contractors Form- XIII
• Employment Card Form – XIV
• Wage Slip Form – XIX
• Service Certificate Form - XV

Welfare & Health of Contract Labour

Facilities required to be provided under section 19 are:

• Sufficient supply of whole some drinking water at the convenient

places for use of contract Labour
• Sufficient No. of Latrine & urinals separately for male & female
Labour @ of 1 Latrine for 25 workmen of prescribed type. At the
outside of Latrine it will be distinctly marked for Male & Female
only in the language understood by majority of workmen. The
notice shall bear the figure of male & female at the urinal

structure also. The urinal will be at the scale of one for male
worker up to 50 and one for female up to 50 employed.
• Washing Facilities: Separate & adequate screening facilities shall
be provided for male & Female Employees.
• First Aid Facilities: One first Aid box for 150 contact labour or
part thereof. The first aid box will be kept in charge of a first aid
trained person.
• Canteen Facilities : Wherein contract labour numbering 100 or
more and contract work likely to continue beyond six months
adequate canteen facilities are to be provided for the use of
contract labour

This facility are to be provided in Seven days of commencement of the

employment of the contract labour.If these facilities are not provided by
the contractor within the period prescribed the same shall be provided
by the principal employer within seven days.

Periodical Returns

Half yearly return for the period ending 30th June & 31st December are
required to be submitted to the licensing officer of the area concerned
within 30 days after expiry of the half year.

Inspecting Inspectorate
• The Central & the State governments have appointed their officers
as INSPECTORS under the Act to carry out inspections for the
purpose of effective enforcement of the law. They have all powers
in this regards.

• PENALITIES: To secure effective enforcement the law provides
for punishments to the defaulters under section 22 to 25. The
violations of provision under this act are criminal offenses and tribal
by the criminal courts.



Object of the Act

The Employees Provident Fund & Misc. Provisions Act, 1952 is a piece
of social Welfare Legislation, enacted for the better future of industrial
worker/employees to provide economic and financial security after

• Applicability: The Act applies to 173 industries and classes of
establishment employing 20 or more persons as specified in schedule
1.But Central Govt. may, after giving 2 months notice apply the
provisions of this Act to any establishments employing the persons
less than 20.

• Important Definitions:

“Employer” means-

(i) In relation to a factory the occupier or
manager as per provision of Section 7, sub-section (1) (f) Factories
Act, 1948.
(ii) In relation to any other establishment, the person who or the
authorities which has the ultimate control over the affairs of the

“Employee” means any person who is employed for Wages in

any kind of work, manual or otherwise, in or in connection with
work of an establishment and who gets his wages directly or
indirectly from the employer and it includes any person employed
through contractor engaged as an apprentice, not being an apprentice
engaged under Apprentice Act,1961.

• “Contributions” means a contribution payable in respect of a

member under a scheme.
• “Fund” means the provident fund established under scheme.

Contributions & matters which may be provided for in


The employer shall pay the 12% of Basic Wages for the time being
payable to each of the employees and the employee’s contribution shall
be equal to the contribution payable by the employer in respect of
him /her. The Total Contribution shall be deposited in fund established
by the Act.

Whoever for the purpose of avoiding any payments to be made by
himself under this Act/Scheme or of enabling any other person to avoid
such payments knowingly makes or causes to be made any false
statement shall be punishable with imprisonment for a term which may
extend to one year or with fine of 5000 Rs. or both.

Act not to apply to certain establishments

This Act shall not apply to

• Any establishment registered under the Co-operative Society
• Any other establishment under the control of State Govt. and
whose Employees are entitled to benefit of contributory provident
fund or old age pension.


Object of the Act

Article 39 of the Constitution envisages that the State shall direct its
policy, among other things, towards securing that there is equal pay for
equal work for both men & women. It means there should not be any
discrimination for Wages or Working Conditions the basis of sex.

Coverage of the Act

The Central Govt. has issued a notification showing the date from which
the Act is Applicable in different Industries.

Salient Features

• Employer shall pay Equal Remuneration to men & Women

Workers for same work or work of similar nature.
• No discrimination shall be made while recruiting Men &
Women workers.
• Duty of Employers to maintain Registers
• An Employer shall maintain a Register as prescribed under


After the Commencement of this Act whosoever will Contravene the
provision of this Act shall be punishable with simple imprisonment for
a term which may extend to one month or fine which may extend up to
10,000 Rs. or both.


Object of the Act

The Industrial Dispute Act, 1947 is a progressive piece of legislation and

specially designed to settle the Industrial disputes on a new pattern
hitherto unknown to the judicial machinery set in the country. The object
of this legislation is settle the dispute between employer and employee
through conciliation in amicable situation so that, production should not
be hampered in National Interest.

Important Definitions

• “Industry”: means any business, trade, undertaking, manufacture or

calling of employers and includes any calling, service, employment,
handicraft, or Industrial occupation or avocation of workmen.
• “Industrial Dispute”: means any dispute or difference between
employers and employees, 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.

Section 2A

• Dismissal of an Individual workman is deemed to be an Industrial

Dispute and he can raise his/her dispute individually.
• Settlement”: means a settlement arrived at in the course of conciliation
proceeding and includes a written agreement between the employer and
workmen arrived at otherwise than in the course of conciliation
proceeding where such agreement has been signed by the parties there
to and the copies of such agreement has been sent to the appropriate
government and conciliation Officer.
• “Strike”: means a cessation of work by a body of persons employed in
any industry acting in combination, or a concerted refusal under a
common understanding, of any number of persons who are or have
been so employed to continue to work or to accept employment.
• “Award” means an interim or final determination of any Industrial
Dispute or of any question relating thereto by any Labour Court,
Industrial Tribunal or National Industrial Tribunal and includes an
arbitration Award.
• “Lock-out” means the [temporary closing of place of Employment] or
the suspension of work or the refusal by the Employer to continue to
employ any number of persons employed by him.
• “Lay-off" means the failure, refusal or inability of an employer on
account of shortage of coal, power or raw material or accumulation of
stocks or breakage of Machinery or Natural Calamity to give
employment to workmen whose name is borne on the muster-rolls of
his Industrial establishment and who has not been retrenchment.

• “Retrenchment” means the termination by the employer of the service
of workmen for any reason whatsoever.

Authorities Under This Act

• Concilliation Officers- The appropriate Govt. may, by notification
Official Gazette, appoint such number of persons to be C.O as it thinks
• Labour Court- The appropriate Govt. may, by notification in official
Gazette, constitute one or more Labour Courts for the adjudication of
Industrial Disputes.
• Courts Of Inquiry- The appropriate Govt. may as occasion arises by
notification in the Official Gazette Constitute a court of enquiry for
enquiring into any matter connected with relevant industrial dispute.
• In Section 10 of the Act the appropriate Govt. may refer the dispute for
adjudication to Labour Court, to court of enquiry for making enquiry


• Section 26 to 31provide provisions for penalties for different violations

in this Act.
• Section 33-C Recovery of money due from an Employer where any
money is due to a workmen from an Employer under a settlement or an
Award the workmen himself or any other person authorized by him
make an application to an appropriate Govt. for recovery of money due
to him.

• Section 38- This Section provides provision to make rules to implement
the different provision of the Act through notification from appropriate


Object of the Act

To provide for the Payment of Bonus (linked with profits and

productivity) to persons employed in certain establishments on the
basis of profits or on the basis of production of productivity and for
matters connected therewith.

Applicability of the Act

• It extends to the whole of India

• It is applicable to
 Every Factory
a. Wherein 10 or more workers are working on any
day of the preceding 12 months with the aid of
b. Wherein 20 or more workers are working or were
working on any day of the preceding 12 months
without the aid of power.

 Every other establishment in which 20 or more
persons are employed on any day during an accounting


The meaning of this word is ‘The place in which one is

permanently fixed for business, with necessary equipments, and
office or place of business’.
Section 2(16) defines ‘Establishment in Public sector.’ All other
establishments are ‘establishments in Private sector’.
Establishments include departments, undertakings and branches.

Computation of Gross Profits

The Gross profits derived by an employer from an establishment in

respect of any accounting year shall-
• Be calculated according to First Schedule, in case of a
banking company.
• Be calculated according to Second Schedule in any other

Computation of Available Surplus

The available surplus in respect of any accounting year shall be the

gross profits for that year after deducting therefrom the sums
referred to in Section-6.

It consists of
• Income Tax and Direct Taxes as payable.
• Depreciation as per Section 32 of Income Tax Act.
• Development rebate, investment or Development allowance.

Calculation of Bonus

The method of calculation of annual bonus is as follows

• Calculate the Gross profit as explained above.
• Calculate the Available surplus as explained above.
• Calculation of Allocable surplus-
Allocable surplus = 60% of Available surplus
67% in case of foreign companies.
• Make adjustment for Set-on and Set-off as illustrated in
fourth schedule.
• The Allocable surplus so computed is distributed amongst the
employees in proportion to salary or wages received by them
during the relevant accounting year.

Minimum Bonus

The Minimum Bonus, which an employer is required to pay even if

he suffers losses during the accounting year is-
• 8.33% of the salary or wages during the accounting year, or
• Rs 100 in case of employees above 15 years and Rs. 60 in
case of employees below 15 years, at the beginning of the
accounting year, which ever is higher.

Maximum Bonus

If in any accounting year, the Allocable surplus exceeds the

Minimum Bonus, the employer should pay bonus in proportion to
the salary or wages earned by the employee during that accounting
year provided the bonus should not exceed 20% of salary or wages.

Deductions Permissible from Bonus

Following amounts can be adjusted against the amount of bonus

• Any customary/ festival bonus paid.
• Any financial loss caused by the misconduct of the

Non-Applicability of the Act

This act is not applicable to the following-

• Certain employees of LIC, General Insurance, Dock Yards,
Red Cross, Universities & Educational Institutions,
Chambers of Commerce, Social Welfare Institutions,
Building Contractors etc.


For contravention of any provision of the Act, the employer is

liable to imprisonment upto 6 months and fine upto Rs. 1000.

ACT, 1972


This Act envisages to provide a retirement benefit to the workmen

who have rendered long service to the employer and have thus
contributed to the prosperity of the employer. Gratuity is the award
for long and meritorious service. The principle of gratuity is
accepted as a compulsory and statutory retrial benefit. This act
came into force on 16th Sept, 1972.

Scope And Coverage

The Act extends to whole of India and is applicable to-

• To every factory, mine, oilfield, plantation, port and railway
• Every shop or establishment governed by the Shops and
Establishments Act of that state in which 10 or more persons
are employed or were employed on any day of the preceding
12 months and
• Any other establishment wherein 10 or more persons are
employed or were employed on any day of the preceding 12
• This Act also extends to all the educational institutions in the
country having 10 or more employees and to all trust and
societies registered under the Societies Registration Act,
1860 employing 10 or more persons.

Once this Act applies to any establishment, it shall continue to

be governed by the Act, irrespective of the fact that the number
of employees working therein has subsequently fallen below 10.


The Act is not applicable to apprentices and persons holding a post

under the central or state govt. who are governed by any other act
or by any other rule providing for payment of gratuity.

Employees Entitled for Gratuity

Every employee (other than apprentice) irrespective of his wages,

is entitled to receive gratuity after he has rendered continuous for
five years or more. Gratuity is payable at the time of termination
(includes retrenchment also) of his services either on

• Superannuation or
• On retirement or resignation or
• On death or disablement due to accident or disease.

Continuous Service

An employee is said to have rendered continuous service, if,

• He has been in uninterrupted service, including service

interrupted by sickness, accident, layoff, etc.
• In case of mine or a non seasonal establishment working for
less than 6 days a week, he has actually worked for atleast
190 days during the preceding 12 months or 95 days during
the preceding 6 months, he shall be deemed to have rendered
Continuous service for a period of one year or 6 months resp.
• In case of a seasonal establishment, he has actually worked
for atleast 75% of the days on which the establishment was in

What is Gratuity?

Gratuity is sort of an award which an employer pays out of his

gratitude to an employee for his long and meritorious services.

Payment of Gratuity

• Gratuity shall be payable to an employee on the termination
of his employment after he has rendered continuous service
not less than 5 years-
 Superannuation or
 On retirement or resignation or
 On death or disablement due to accident or disease.
• For every completed year of services, the employer shall pay
gratuity to an employee at the rate of 15 days wages based on
the rate of wages last drawn by the employee concerned.
• The amount of gratuity payable to an employee shall not
exceed 3,50,000 Rs.
• For the purpose of computing the gratuity payable to an
employee who is employed, after his disablement, on reduced
wages, his wages for the period preceding his disablement
shall be taken to be the wages received by him during that
• Any employee has a right to receive better terms of gratuity
under any award or agreement or contract with the employer.

Recovery of gratuity

If the amount of gratuity payable under this Act to the person

entitled, is not paid within the prescribed time, then the controlling
authority shall issue a certificate for that amount to the collector,
who shall recover the same, together with the compound interest
thereon, from the date of expiry of the prescribed time, as arrears
of land revenue and pay the same to the person entitled.

Protection of gratuity

No gratuity payable under this Act to an employee employed in
any establishment, factory, mine, oilfield, plantation, port and
Railway Company, shall be liable to attachment in execution of
any decree or order of any civil revenue or criminal court.


• If any employer makes any false statement or representation

for the purpose of avoiding any payment, then he shall be
punishable with imprisonment for a term which may extend
to 6 months, or with fine may extend to 10,000 Rs or with
• An employer who contravenes, or makes default in
complying with any of the provisions of this Act or any rule
or order made thereunder shall be punishable with
imprisonment for a term which shall not be less than 3
months but which may extend to 12 months, or with fine
which shall not be less than 10,000 Rs but which may extend
to 20,000 Rs or with both.

& THE SCHEME ,1948


The main objective of this Act is to provide to the workers medical relief,
sickness cash benefits, maternity benefits to women workers, pension to
the dependents of decreased workers and compensation for fatal and other
employment injuries including occupational diseases, in an integral form
through a contributory fund.

Applicability of the Act & Scheme

Applicability of the Act & Scheme is extended in area wise to factories
using power and employing 10 or more persons and to non-power using
manufacturing units and establishments employing 20 or more person
upto Rs.15,000/-per month w.e.f. 1.04.2010 It has also been extended
upon shops, hotels, restaurants, roads motor transport undertakings,
equipment maintenance staffing the hospitals.

Coverage of Employees
Drawing wages upto Rs. 15,000/- per month engaged either directly or
through contractor.

Rate of Contribution Of The Wages

Employers’ 4.75%
Employees’ 1.75%

Manner and Time Limit Of Making Payment of


The total amount of contribution (employees share and employer’s share)

is to be deposited with the authorized bank through a Challan in the
prescribed form in quadruplicate on or before 21st of month following
the calendar month in which the wages fall due.

Benefits of the Employees under the Act

Medical, sickness, extended sickness for certain diseases, enhanced
sickness, dependents maternity, besides funeral expenses, rehabilitation
allowance, medical benefit to insured person and his or her spouse.

Contribution period

1st April to 30th September

1st October to 31st March

Benefit period

If the person joined insurable employment for the first time, say on 5th
January, his first contribution period will be from 5th January to 31st
March and his corresponding first benefit will be from 5th October to
31st December.


Different punishments have been prescribed for different types of

offences in terms of Section 85:

• Six months imprisonment and fine Rs.5000. One year imprisonment

and fine and Section 85A:
• Five years imprisonment and not less to 2 years 85-C(2) of the ESI
Act, which are self explanatory. Besides these provisions, action also
can be taken under section 406 of the IPC in case where an employer
deducts contributions from the wages of his employees but does not

pay the same to the corporation which amounts to criminal breach of



Continuous Applicability of the Act

By an amendment of the ESI Act in 1989, it has been provided that a

factory or an establishment shall continue to be governed by this Act
notwithstanding that the number of persons employed therein at any time
falls below the limit specified by or under this Act or the manufacturing
process therein ceases to be carried on with the aid of power.

Employees engaged by a Contractor

The employees engaged by a contractor are squarely to be covered under

ESI Act and the Scheme thereto

Partner of the Firm

The Supreme Court has held that a partner engaged for the work of the
factory or establishment and being paid monthly will not come within the
purview of an ‘employee’ as defined in section 2(9) of the ESI Act.

Employees’ State Insurance Corporation vs. Apex Engineering (P) Ltd.,
1997 LLR1097 (SC).

Managing Directors

The Managing Director of a Company will be covered under the Act if

his salary is below prescribed ceiling. E.S.I. Corporation vs. Apex
Engineering (P) Ltd., 1997 LLR 1097 (SC)

Casual/ Temporary Employee

Casual or temporary employees will be liable to be covered under the Act

from the date of their joining the service.

Professional Consultants
The professionals engaged are of regular nature and being paid monthly,
hence they will be covered under the Scheme. However, the payment
made to labour consultants, lawyers, engineers, counsels, chartered
accountants would not constitute wages and no contribution is payable on
such amount.

Loaders & Unloaders

Merely because the loaders & unloaders have not been able to get the
benefit, it will not be a ground for non coverage under ESI Act.

Procedure for availing Sickness Benefits

The employee is issued medical certificate from ESI Dispensary/Hospital.

The medical certificate issued by the dispensary is deposited with the local
office of the ESI Corporation from where the employee gets the payment

Entitlement of Sickness Benefits

Entitlement to sickness benefit depends on the entry of the employee in a
contribution for half the number of days in one contribution period and
duration of sickness benefit is 91 days in two consequent benefits periods.
The benefit periods corresponding to contribution periods are as follows:

Contribution Period Benefit Period

April to September January to June

October to March July to December

For getting the Sickness Benefit, it is necessary that the insured person
should have paid the contribution for half the number of days in one
contribution period, only then the corresponding benefit period only and
not earlier. Some other benefit period only and not earlier. Some other
benefits like Disablement Benefit, Dependent Benefit, Medical Benefit

and Funeral Benefit are available to the insured person from day one of
his/her employment and the criteria of contribution period vis-à-vis
benefit period is not applicable in these benefits. Similarly, an insured
person is also eligible for vocational rehabilitation and physical
rehabilitation. From day one. For availing the Maternity Benefit, an
insured woman must have paid contribution for a minim of 80 days in
one or two consecutive contribution periods.

Entitlement of Medical Benefits to Family Members

The Medical Benefits I.e. treatment in the dispensary and hospital is

available and provided not only to the insured person but also to the
family members of the insured person from the date of employment itself.
However, sickness benefit is not provided to the members of the family
as sickness benefits are wages during sickness. For the purpose of
obtaining medical treatment, the family consists of the following-

• Spouse.
• Minor legitimate or adopted child dependent upon the insured
• Child who is wholly dependent on the earnings of insured person
and who is i) receiving education, till he or she attains the age of
21 years.ii) an unmarried daughter.
• An infirm child -Physical, Mental or Accidental-so long as the
infirmity lasts.
• Dependent parents “Medical Benefit to Families of Insured
Persons has been substituted an attested family photograph”.

Availability of Benefits- Even when contribution are
not paid

Non-payment of contributions won’t affect for availing of ESI benefits by

an employee.

Non- Availability of Funds - No Excuse for the non-

payment of Contribution

There is no provision to waive off the amount due on account of

contribution, interest and damages. However, the damages can be waived
off in relation to a factory or establishment which is declared as sick
industrial company and in respect of which a rehabilitation scheme has
been sanctioned by the Board for Industrial and financial Reconstruction.

Difference between Contribution and Benefit Period

Contribution Period Corresponding Benefit Period

April to September January to June

October to March July to Decembe

Maintenance of records
An employer is required to maintain

• Attendance Register in respect of all the employees including

employees engaged by immediate employer/contractor;
• Wage Register
• Register under Regulation -32
• Accounts Book
• Cash Book/Books of Account, Ledgers, petty cash book including
bills and vouchers.
• Other relevant records to show the labour charges paid to the labour
engaged in construction, repair & maintenance etc.
• Inspection Book

Wages & Allowances for Contribution



• Basic Pay.
• Dearness allowance.
• House rent allowance.
• City compensatory allowance


• Contribution paid by the employer to any pension/provident

fund or under ESI Act.
• Any traveling allowance or the value of any traveling
concession conveyance allowance.
• Sum paid to defray special expenses entailed by the nature of
employment -daily allowance paid for the period spent on tour.
• Gratuity payable on discharge

Benefits under the ESI Scheme at a glance


• Sickness Benefit.
• Extended Sickness Benefit for long term diseases like TB,
Leprosy etc.
• Enhanced Sickness Benefit for undergoing sterilization
operation for Family Planning.


Object of the Act

The Maternity Benefit act, 1961, aims at regulation of employment

of women employees in certain establishments for certain periods
before and after child birth and provision of maternity and certain
other benefits. Some State Acts also provide for additional benefits
such as free medical aid, maternity bonus, provisions of creches,
additional rest intervals, etc.

Applicability of the Law

The act extends to the whole of India and is applicable to every

factory, mine, or plantation (including those belonging to govt.)
and an establishment engaged in the exhibition of equestrian,
acrobatic and other performances, irrespective of the number of
employees, and to every shop or establishment wherein 10 or more
persons are employed or were employed on any day of the
preceding 12 months. The state government may extend the act to
any other establishment or class of establishment; industrial,
commercial agricultural or otherwise.

Non-Applicability of the Law
The act does not apply to any such factories/ other establishment to
which the provision of the ESI Act are applicable for the time
being. But where the factory/ establishment is governed under the
ESI act, and the woman employee is not qualified to claim
maternity benefit under sec-50 of the act because her wages exceed
Rs 3000 p.m.

Entitlement of Employees

Every woman employee, whether employed directly or through a

contractor who has actually worked in the establishment for a
period of atleast 80 days during the 12 months immediately
preceding the date of her expected delivery, is entitled to receive
the Maternity Benefit.

Female workers engaged on casual basis or on muster roll on daily

wages are also entitled to benefit under the Act.

Meaning of Maternity Benefit

A woman employee is entitled to maternity benefits under the Act

irrespective of the no. of children she has. If a woman employee
does not avail 6 weeks leave preceding the date of her delivery,she
can avail of that leave following her delivery,provided the total
leave period,i.e. preceding and following the day of her
delivery,does not exceed 12 weeks.

Amount of Benefits

The maternity benefit is payable to a woman worker at the rate of

average daily wages for the period of her actual absence, during
the benefit period. Wages for this purpose includes basic wages,
D.A. and HRA, incentive bonus and money value of concessional
supply of foodgrains and other articles.

If a woman dies during the benefit period, the benefit is payable-

• Upto and including the day of her death ,in case she dies
without delivering a child;
• For the entire period, in case she dies after delivering a child;
• Upto and including the day of child’s death, in case the child
also dies during that period.

The benefit is payable for a maximum period of 12 weeks of which

not more than 6 weeks shall precede the date of her expected

Notice of Claim

A woman employee entitled to maternity benefit may give a notice

in writing to her employer, stating as follows:
• That her maternity benefit may be paid to her or to her
nominee(to be specified in the notice);
• That she will not work in any establishment during the period
for which she receives maternity benefit;
• That she will be absent from work from such date (to be
specified by her), which shall not be earlier than 6 weeks
before the date of her expected delivery.

The notice may be given during the pregnancy or as soon as
possible, after the delivery. However, the failure to give the notice,
does not disentitle the woman to the benefits of the Act.

Payment of maternity benefit

The employer is liable to pay the amount of maternity benefit for

the period preceding the date of expected delivery, in advance to
the woman employee on production of the proof of pregnancy. The
balance of amount due for the subsequent period should be paid
within 48 hrs of production of the proof of delivery.

In case of death of woman employee entitled to the maternity

benefit, the employer shall pay the amount of benefit to her
nominee or legal representative, as the case may be.

Obligation of Employers

Important Obligation of Employers under the Act are-

• To pay maternity benefit and/or medical bonus and allow

maternity leave and nursing breaks to the woman employees,
in accordance with the provisions of the Act.
• Not to engage pregnant woman in contravention of sec-4 and
not to dismiss or discharge a pregnant woman employee
during the period of maternity leave.
• To exhibit the abstract of the provisions of the act and the
rules made thereunder, in the local language, at a
conspicuous place in every part of the establishment in
which woman are employed.

• To prepare and maintain the prescribed registers, records and
muster rolls and submit the prescribed returns. Annual
Return should be submitted in the revised form.

Rights of employers

The employer has the right to appeal against an order of the

inspector to the competent authority, within 30 days of the service
of the order and the decision of the competent authority shall be

Rights of employees

Important rights of an employee are-

• To make a complaint to the inspector and claim the amount
of maternity benefit improperly withheld by the employer.
• To appeal against an order of the employer depriving her of
the maternity benefit or medical bonus or dismissing or
discharging her from service, to the competent authority,
within 60 days of the service of such order.


• Imprisonment upto one year and fine upto Rs.

5000(Minimum 3 months and Rs. 2000 respectively)



The objective of the Act is to provide for the payment by certain

classes of employers to their workmen for injury by accident. This
Act came into force on the first day of July, 1924.


It extends to the whole of India.

Employer’s Liability for Compensation

• If personal injury is caused to a workman by accident arising

out of and in the course of his employment, his employer
shall be liable to pay compensation in accordance with the
• If a workman employed in any employment contracts any
disease specified therein as an occupational disease peculiar
to that employment, the contracting of the disease shall be
deemed to be an injury by accident within the meaning of
this section and, unless the contrary is proved, the accident
shall be deemed to have arisen out of, and in the course of

the employment. Thus the employer is liable to pay
compensation to the employee.
• Nothing herein contained shall be deemed to confer any
right to compensation on a workman in respect of any injury
if he has instituted in a civil court a suit for damages in
respect of the injury against the employer or any other
person and no suit for damages shall be maintainable by a
workman in any court of law in respect of any injury

Compensation to be paid when Due and Penalty for


• Compensation under Sec-4 shall be paid as soon as it falls

• When the employer does not accept the liability for
compensation to the extent claimed, he shall be bound to
make provisional payment based on the extent of liability
which he accepts and such payment shall be deposited to the
Commissioner or made to the workman.
• When any employer is in default in paying the Compensation
due under this Act within one month from the date it fell due,
the commissioner shall-
 Direct that the employer shall, in addition to the amount
of arrears, pay simple interest thereon at the rate of 12%
per annum.
 Direct that the employer shall, in addition to the amount
of arrears, and interest thereon, pay a further sum not
exceeding 50% of such amount by way of penalty.

Distribution of Compensation

• No Compensation should be paid to a workman whose injury

has resulted in death and no payment of a lump sum is made
as compensation to a woman or a person under a legal
• Any other sum amounting to not less than 10 Rs which is
payable as compensation may be deposited with the
commissioner on behalf of the person entitled.
• Compensation deposited in respect of a deceased workman
shall, subject to any deduction made under sub-section 4, be
apportioned among the dependents of the deceased workman
or any of them in a proportion as decided by the

Compensation not to be Assigned, Attached or Charged

No lump sum or half monthly payment payable under this Act

shall be capable of being assigned or charged or be liable to
attachment or to pass to any person other than the workman by
operation of the law.


• Whoever-
 Fails to maintain a notice book which he is required to
maintain under sub-sec 3 of Sec-10, or
 Fails to send to the commissioner a statement which he
is required to send under sub-sec 1 of Sec-10-A, or
 Fails to send a report which he is required to send under
Sec-10-B, or
 Fails to make a return which he is required to make
under Sec-16, shall be punishable with fine which may
extend to 5000 Rs.
• No prosecution under this section shall be instituted except
by or with the previous sanction of a commissioner.



Child labour Act, 1986, prohibits the engagement of children in

certain occupations and processes which are considered unsafe and
harmful to child workers who are of tender age, and aims at
regulating the conditions of work of children in certain other

Scope and Coverage

The Act extends to the whole of India. It repealed the previous Act
on child labour known as Employment of C Act, 1938.The Child
Labour Act of 1986 applies to all establishments and workshops
wherein any industrial process is carried on.

Who is a Child Labour

Under the Act, ’Child’ means a person who has not completed his
fourteenth year of age. Any such person engaged for wages,
whether in cash or kind, is a child worker.

Occupations and Processes where Child Labour is

No child should be employed or permitted to work in any

occupation set forth in Part A of the schedule appended to the act,
or in any workshop wherein any of the processes listed in Part B of
the schedule is carried on, except a workshop wherein of the
process carried on by the occupier with the aid of his family or a
Govt. recognized/ aided school.

The Occupations listed in Part A of the schedule are:

• Any occupation connected with

 Transport of passengers, goods or mails by railway
 Cinder picking, clearing of an ash pit or building
operation in the railway premises
 Work in a catering establishment at a railway station,
involving the movement of a vendor or any other
employee of the establishment, from one platform to
another or into or out of a moving train,
 Work relating to the construction of a railway station or
with any other work which is done in close proximity to
or between the railway lines
 A port authority within the limits of any port
 Work relating to selling of crackers or fireworks in
shops with temporary licenses and,
 Abattoirs/ Slaughter houses

The Occupations listed in Part B of the schedule are:

• Bidi making
• Carpet weaving
• Cement manufacturing
• Cloth printing
• Manufacture of fireworks
• Mica cutting and splitting
• Shellac manufacture
• Soap manufacture
• Tanning
• Building and construction industry
• Wool- cleaning
• Manufacture of slate pencils
• Manufacture of products from agate
• Cashew and cashew-nut decaling and processing
• Printing
• Soldering processes in electronic industries

Administrative Authority

The Act is administered both by the central and State Govt. In

relation to an establishment under the control of the Central Govt.
or a railway administration or a major port or a mine or oilfield, the
responsibility for administration of the Act lies with the Central
Govt. and in all other cases, with the concerned State Govt. The
Central and State Govts. have appointed inspectors to ensure
compliance with the provisions of the Act.

Regulation of conditions of Child Labour

Establishments where the occupations listed in Part-A and Part-B

are not carried on, or wherein the process of zari making and
embroidery, precious stone polishing or state manufacturing is
carried on, shall be regulated as under:

• Hours and period of works- No child shall be permitted or

required to work between 7 p.m. and 8 a.m. and to work
overtime. No child shall be required to work in any establishment
on any day on which he has already been working in another

• Weekly Holiday- every child employed in an establishment shall

be allowed in each week, a holiday for whole one day and this
day should not be altered more than once in three months by the

• Health and safety of child workers- the govt. in power makes

rule for the health and safety of working children in any
establishment such as cleanliness in workplace, drinking water,
latrines and urinals, protection of eyes, device for cutting off
power etc.


If any employer violates the provisions of the Act, he is liable to

imprisonment for atleast 3 months which may extend to 1 year, or
fine of not less than Rs. 10,000 which may extend to Rs. 20,000 or



The Apprentices Act, 1961 envisages to regulate and control the

training of apprentices and to supplement the availability of trained
technical personnel for the industry. The Act was amended in 1973
to provide for practical training to the graduate engineers and
diploma holders for improving their employment potential.

Scope and Coverage

The Act extends to the whole of India and appeals to areas and
industries specified by the Central Govt. The Act, does not apply
to the notified apprenticeship schemes.

Administrative Authority

The Act is administered both by the Central and State Govts, in

there respective spheres. The Central and State Govts have
appointed National and State Councils for training in vocational
trades, apprenticeship councils etc. to assist the govt. in carring out
the purposes of the Act.

Who is an Apprentice?

Any person, including a graduate engineer or diploma holder, who

is not less than 14 yrs of age and satisfies the prescribed standard
of education and physical fitness, can undergo apprenticeship
training in the designated trade under an employer.

Apprentice not a ‘workman’

An apprentice is a trainee and not a worker of the employer

Provisions of any labour law do not apply to apprentices except
that if the apprentices are working in a factory or a mine, the
provisions related to health, safety and welfare, prescribed under
the Factories Act or the Mines Act, shall apply to them alike any
other worker

Obligations of Employer

• No employer should engage a person as an apprentice,

unless he satisfies the standards of age, education and
physical fitness, prescribed for the designated trade.
• A contract of an apprenticeship containing the terms and
conditions which are inconsistent with the Act, must be
signed between the employer and the apprentice and should
be submitted for registration within three months to the
apprenticeship advisor by the employer.

• The employer should make suitable arrangements in his
factory or establishment, for imparting practical training to
the apprentice engaged under him.
• The employer should pay a stipend to every apprentice,
during the period of training, at such rates and intervals as
may be prescribed.
• There is no obligation to provide a job to the apprentice

Obligations of Apprentices

• To learn his trade subject’s, vocational course diligently.

• To attend practical and instructional classes regularly.
• To carry out all lawful orders of his employer and superiors.
• To carry out his obligations under the contract of his
• To maintain a daily record of the work done by him in the
form of a workshop or lab notebook.


• An employer who
 Engages any unqualified person as apprentice,
 Fails to fulfill his obligations under the contract,
 Does not engages the required number of apprentices,
 Requires an apprentice to work overtime or to do any
work not connected with his training,
shall be punishable with imprisonment upto 6 months or with
fine or with both.

• If any employer or other person contravenes any other
provision of the Act, he shall be punishable with fine upto
Rs. 500.



INDEMNITY BOND- This is not the legal binding. Just for the
benefit of the company, it is taken from each contractor against
each contract.

INSURANCE POLICY- Company asks contractor to take

insurance policy under Workmen’s Compensation Act, 1923.

LABOUR LICENCE- Contractor, who engages 20 or more

workers, is required to obtain labour license from office of Asst.
Labour Commissioner.

AFFIDAVIT- Any contractor is required to give an affidavit if he

engages less than 20 workers for a works assigned to him.

PF CODE NO.- It is the policy of the company o assign the

work to those contractors who have their own PF Code No.

PF CHALLAN- It is a monthly return, where employer

contributes 12% & 12% is also contributed by the employee.8.33%
of employer contribution is submitted in Family Pension Scheme
and rest is submitted in Provident Fund Scheme.

PF Returns,FORM 5- It is the detail of all the employees who
become members of Employee Provident Fund and Employee
Pension Scheme.

PF Returns,FORM 10- It contains the detail of all the

employees who have left the services during the month.

PF Returns,FORM 12A- It is the reconciliation statement of

PF dues deposited for the month.


contractor or employer , who employs contract labour in more than
one establishment ,has to maintain the details of the wages paid
and their provident funds deposited at each site and is to be
submitted in summary.

ATTENDANCE SHEET- Attendance of all the contract

labours is recorded in it.

WAGES SHEET- In this document, detail of the wages paid to

the contract labour, according to his attendance, is recorded.

LATEST INSPECTION REPORT- This is the inspection

report conducted by inspectorate, may be PF inspector, ESI
inspector, etc.

document, the amount of PF submitted with the details of wages
paid and PF deducted in the whole year is recorded.

PF SLIP COVERING LETTER- It is given to contract

labour or employee concern as and when year is completed, details
of PF deducted and interest earned are mentioned there and copy
is given to each worker.

Checkpoints for Labour Compliance

1. Whether the contractor has obtained Labour License under Yes/No

CL(R&A) Act. If yes, please attach copy of license
along with first payment Bill. Date of validity of the
License is to be mentioned in subsequent bills. Date of validity of
2. If Labour License is not required, submit affidavit Yes/No
3. Whether contractor has obtained P.F. Code No. Yes/No
If yes, please enclose a copy with first payment bill against the contract.
4. Whether P.F. premiums have been paid. Yes/No
If yes, please enclose a copy of challans along with each payment bill.
5. Whether summary of various sites (contract vise), giving Yes/No
site name, no. of employees, P.F. wage, P.F. details etc. are enclosed
6. Whether Form 5 under P.F. & M.P. Act enclosed Yes/No
7. Whether Form 10 under P.F. & M.P. Act enclosed Yes/ No
8. Whether Form 12- A under P.F. & M.P. Act enclosed. Yes/No

9. Whether copy of attendance sheet (contract vise) is enclosed Yes/No

10 Whether copy of Wages payment sheet (contract vise) Yes/No
duly certified by Site Engineer is enclosed
11. Whether payments have been made as per Minimum Wages
fixed by Government
12 Whether a copy of Insurance Policy under W.C. Act enclosed Yes/No
with the first Wage bill
13 Whether Indemnity Bond duly notorised is enclosed with Yes/No
the first bill against each work order
14. Whether half yearly return under CL(R&A) Act submitted, Yes/No
if yes attach its copy(applicable in January and July of every year)
15 Information to be given Annually in April every year under P.F. & M.P. Act

a. Whether Form3A under the Act enclosed Yes/No

b. Whether Form 6A under P.F. Act enclosed Yes/No

c. Whether Form 12 A enclosed Yes/No

d. Whether covering letter for issue of P.F. slips Yes/No

by P.F. authorities enclosed.

e. Whether latest inspection report by P.F. Yes/No

organization enclosed.

Signature of Contractor
(To be executed and notorised on Non Judicial Stamp Paper of Rs. 80)


THIS DEED OF INDEMNITY IS MADE ON THE ……………………day of………….2004 between

M/s……………………………………………………………………….. (Herewith after called the
Contractor/Sub Contractor of the per part) and the Reliance__________________________________
H.O._____________________ and the Project Office located at Lucknow (herewith after called the
‘Company’ of the other part).

That the Company awarded work of …………………………………………………vide Work

Order/Letter of Indent/ Letter of Commitment no……………………………dated…………………and
the contractor has signed the terms and conditions laid down under the same. This document is the part
and parcel of the above referred work Order / Letter of Intent /Letter of Commitment.

As per the terms and conditions relating to the compliance of various Labour Laws
for the contracting period, in the above referred Work Order / Letter of Intent /Letter
pf Commitment, the contractor has agreed to comply the provisions of all labour laws
applicable from time to time to him and / or his sub-contractor including PRWS /
gang workers engaged by the consent of the company.

The contracting party i.e. the contractor moved by the sentiments of justice and
humanity as well as by desire to secure the permanent peace and tranquility in and
amongst the labour community, agree and undertake the following.

1. I here by expressly undertake to bound by all the provision of the Contract

Labour (Regulation & Abolition) Central Rules, 1971, framed thereunder, Inter State
Migrant Workmen Act, Minimum Wages Act, Provident fund & Miscellaneous
Provision Act and Scheme /Rules framed thereunder and all other Labour Laws
applicable from time to time and / on all the sub-contractor engaged to carry out the
awarded work on company’s site. The relevant information regarding workers
engaged by me and / or my sub-contractor shall be submitted to the company on daily
basis regularly during the subsistence of the contract with the company. I also hereby
agree and undertake to maintain different registers, forms and other necessary records
required to be maintained under the provision of various labour laws and its rules
applicable from time to time.
2. I further undertake to comply with the stipulation relating to various labour laws
as per the agreed conditions of Work Order/ Letter of Intent under the heading Labour
Laws as applicable currently or amended from time to time in terms with the
mandatory requirements imposed by the statutory bodies functioning under the
relevant labour legislation.

3. I further undertake to furnish the details as and when required in the prescribed
format in case of any accidents, which may result into man days / man-hours loss
including fatal accidents.
4. I have read and understood the guidelines relating to Labour Laws Compliance
applicable to contract Labour issued by the company and I here by expressly
undertake to comply with the requirements under a foresaid guidelines from the
commencement to the completion of contract work.

5. I further undertake (including my sub-contractors) to indemnify the Company

for all the time from all the Litigations/ disputes/ claims accrued out of the contract
work. I also undertake to abide by all the status/rules/regulations of any statutory
6. I further declare that as per the Articles of the Associations of the Company
/Partnership Deed/Proprietorship document. I am authorized to furnish this
undertaking and the CONTRACTOR shall be bound by the stipulations herewith
contained and so will be the Sub-contractor(s).
IN WITNESS HERE OF the contractor signed and delived this Indemnity Bond in
the day, month and year first above written.

Seal & Signature of the Contractor


1 ………………………………………

2 ………………………………………

Accepted by:

Signature of the Site Engineer-in–Charge…………………………………….



1 ………………………………………

2 ………………………………………

(To be executed and notorised on Non Judicial Stamp Paper of Rs. 10)

Before M/s_______________________________________________________,


I,_______________________________ S/o Shri______________________________,

proprietor/partner of
take oath and solemnly affirm as under:

That the deponent has been awarded the work

of__________________________at__________ vide work order
no._________________dated______________ by

For execution of this job we have engaged only__________ workers which is less
than 20, hence labour license is not required under the Contract Labour(R&A) Act. We
have recruited the workers locally, hence provisions of Inter-State Migrant Workmen
(Regulation of Employment and Conditions of Service) Act 1979 are also not applicable.
That the contents of this affidavit are true to best of my knowledge, nothing is
false and nor concealed therein.


Name of the Contractor and


The above-maintained contents are verified.

Name of the Contractor and

Name of Contractor______________________________________________

Work Order no._______________________ Bill


Name of the Contractor________________________________Month_______________

S.N Name of site No. of P.F. Member Co.’s Co.’s Total

o. including employees Wages contribution Cont. Cont.
Reliance site on each site @ 12% toward towards
s P.F. E.P.S. @
@ 8.33%

Admin Charges of P.F. @ 1.1 %

EDLI Charges @ 0.5%

Inspection Charges @ 0.01%

Interest @ 12% for delay in submission of P.F. dues

Total amount Rs._______/- deposited vide challan no.________dated:-

against P.F. liabilities of M/s _____________________________________________
for the month of ___________________.

Signature of the Contractor

Name of the Contractor__________________________ Month______________

S.No. Name of Employee Earned Employe Employers Employer

wages on e Cont. contributio Contribution
which P.F. towards n @3.67% towards family
recoveries P.F.@ towards pension
have been 12% P.F. scheme @
made 8.33%


Admin Charges of P.F. @ 1.1%

EDLI Charges @ 0.5%

Inspection Charges @ 0.01%

Interest @ 12% for delay in submission of P.F. dues

Signature of the Contractor

FORM 3-A (Revised)

(For Unexempted Establishments only)

(Para 35 & 42 of the Employees’ Provident Funds Scheme 1952 and Para 19 of
The Employee Pension Scheme 1995)
Contribution Card for the currency period from 1st April 20………… 31st
March, 20

1. Account No.
2. Name/Surname………………………………………………………………………
………………….(in block capital)
3. Father’s/Husband’s
4. Name & Address of the
5. Statutory rate of the
6. Voluntary higher rate of employee’s contrbution, if
Months Worker’s share Employer’s Share Refund Remarks/
of No. of
Advance days/period
of Service
Amount E.P.F. E.P.F. P.F. non-
of difference Contribution contribution
wages between 8.33%+ (if any)
8.33% (if
1 2 3 4(a) 4(b) 5 6 7
March (a) Date of
paid in leaving
April service, if

June (b)
July for leaving
Aug. service, if



paid in

Certified that the total amount of contribution (both shares )indicated in this card
i.e. Rs……….. has been already been remitted in full in EPF A/c No 1 and Pension Fund
A/c No. 10…………..(vide note below)
Certified that the difference between the total of the contribution shown under
Cols. 3 & 4(a) & 4(b) of the above table and that arrived at on the total wages shown in
Column 2 at the prescribed rate is solely due to rounding off of contributions to the
nearest rupee under the rules.
Dated …………………20 Signature of
the Employer
with Office Seal
+. Rates now enhanced by EPF (Amendment) Act, 1998
Note. - (1) In respect of Form (3-A) sent to the Regional Office during the course of the
currency period for the purpose of final settlement of the accounts of the member who
has left service, details of date and reasons for leaving service should be furnished under
col. 7(a) &(b)

(2) In respect of those who are not members of the Pension Fund the employers share of
contribution to the EPF will be 8.33 of 10% as the case may be and is to be shown under
Column 4(a)


[Paragraph 43 of the Employees’ Provident Funds Scheme
1952 and
Paragraph 20(4) of the Pension Scheme, 1995]
Annual statement of contribution for the currency period from

Statutory rate of
No. of Members voluntarily
Name and address of the Factory/Establishment…….. contributing at a
higher rate……………….
Code no. of the Establishment………………………...

Sl.No. Account Name of Wages, Amount of Employer’s Refund Rate of Remarks

no. the Retaining worker’s contribution of higher
Member(in allowance Contribution EPF Pension Advances voluntary
block (if any) deducted difference Fund contribution
letter) and D.A. from the s 8.33% (if any)
including wages between
cash value 12% % &
of food 8.33%
during the
1 2 3 4 5 6 7 8 9 10

Reconciliation of Remittances Total

Rs Rs Rs Rs

Amount Remitted

Sl.No. Month Amount Pension EDLI (Admn. Charges Rs at . Aggregate

Remitted Fund Contribution 65 % of wages) Contribution
EPF Contribution A/c No. 21 Cols. 5+6+7
Contribution A/c No. 10 Rs. Rs ()
refund of
A/c No. 1
1. Rs Rs Rs
2. Rs Rs Rs Admin EDLI
3 Rs Rs Rs Charges Admn.
4 Rs Rs Rs A/c No. 2 Charges
5 Rs Rs Rs Rs. 0.001%
6 Rs Rs Rs Rs.
7 Rs Rs Rs
8 Rs Rs Rs
9 Rs Rs Rs
10 Rs Rs Rs
11 Rs Rs Rs
12 Rs Rs Rs


(1) Total number of contribution cards enclosed (form 3-A Revised)

(2) Certified that Form 3-A, duly completed of all the members listed in
this statement are enclosed, except those already sent during the course
of the currency period for the final settlement of the concerned
member’s account vide ‘Remarks’ furnished against the names of the
respective members above.

Signature of
Employer (with Office Seal)

Notes. – (1) The names of all the members, including those who had left service
during the currency period, should be included in this statement. Where
the Form 3-A in respect of such members who had left service was already
sent to the Regional Office for the purpose of final settlement of their
accounts, the fact should be stated against the members in the ‘Remarks’
column above thus:
“ Form 3-a already sent in the month of
(2). In case of substantial variation in the wages/contributions of any
members as compared to those shown in the previous month’s
statement the reason should be explained adequately in the ‘Remarks’
(3). In respect of those members who have not opted for Pension Fund
their entire employer’s contribution @ 8.33% or 12% as the case may
be shown under Column No. 6.



Name of the Contractor.:-

Work Order No:-

Contractor Doc. Ref. No.:-
Bill Period:-.

Serial Particulars of Applicable /Not Applicable Documents

No. Document ( √ /X ) Submitted
( √ /X )
2 Insurance Policy


(I.R. Consultant) HR DEPT (REP. OF COMM. DEPTT)



Name of the Contractor. __________________________________________

Work Order No.___________________________Contractor Doc. Ref.


Bill Period. ____________________________________________________

Serial Particulars of Applicable /Not Applicable Documents

No. Document ( √ /X ) Submitted
( √ /X )
1 Indemnity Bond
2 Insurance Policy
3 Labour License
4 Affidavit
5 PF Code no.
6 PF Challan
7 PF Return, Form-V
8 PF Return, Form-X
9 PF Return, Form-XII-
10 Summary of the
wages paid and PF
11 Attendance Sheet
12 Wages Sheet
13 Latest Inspection
14 PF Annual Return
Form 3-A,6-A&12-A
15 PF Slip Covering

NOTE: - The copies of the documents mentioned at serial no. 13,14 & 15 are to be
submitted once in a year after completion of financial year




(I.R. Consultant) HR Dept. (Rep. of Commercial Dept) CMM/Rep. of


FORM 12-A (Revised)

(Paragraph 38(2) Provision of the Employees’ Provident Funds Scheme

Statement of Contribution for the month of ……………………..20………..

Name and address of the

Code No. of the
Total No. Wages on Amount of contributions due as per recoveries made in
of which the wages/acquittance register
Subscribers contributions
Worker’s Share Employer’s Share
recovered EPF FPF Total EPF FPF Total
11/6% 11/6%
(a) (b) (c ) (a) (b) (c )
1 2 3 4

Amount of Contribution remitted in Account Nos. 1 and 10

Worker’s Share Employer’s Share
EPF FPF Total EPF FPF Total Total
11/6% 11/6%
(a) (b) (c) (a) (b) (c )
5 6 7 8

1. Total amount remitted in Account no. 1

Date of

2. Total amount remitted in Account No. 10


Date of
Amount of Amount of Date of Name and Whether the Remarks
Adm. Adm. remittance location of triplicate
Charges due Charges the bank in challan
0.37 of the remitted in which receipt is
amount of A/c No. 2 remitted or enclosed, if
wages No. and date not, state
shown in of the reason
Column 2 cheque/draft
sent to
9 10 11 12 13 14

Account No. 1………………………………………


Account No. 10…………………………………… ....


Account No. 2…………………………………….


No. as per last month’s return

(+) No. of new Subscribers- Vide Form 5
(-) No. of Subscriber left service- vide Form 10

* Net Total
This should tally with the figure with the figure given at the top
right hand corner of this Form

Total No. of
Contract Rest
Total No of

Currency period from 1st April 20..

to 31st March 20..

Statutory Rate of Contribution …………………….

No. of members voluntarily contributing at higher than the statutory


Signature of the
(with official seal)


Notes. –(1) If there is any substantial variation between the wages and amount of
contribution shown above and those shown in the last month’s return
suitable explanation should be given in the ‘ Remarks’ column.
(2) If any arrears of contributions or damages are included in the figures
under Column 6 to 8, suitable details indicating the circumstances,
amount, No. of subscribers and the period involved should be furnished in
the ‘Remarks’ column or on the reverse.
(3) Remittance shall invariably be made by deposits in the State Bank of
India or its subsidiaries.


I am fortunate enough to get the privilege of completing my

summer training project in Reliance Communications. I am
thankful to them for giving me an opportunity to enhance my
practical knowledge and experiences.

My project is concerned with Industrial Relation Department. It

has 2 parts, firstly I studied about Labour Compliances in Reliance
Communications, and then particularly, I studied Labour
Compliances in respect with contract with principal employer. I
started my project by writing about Reliance Communications and
then I gave Vision of Company alongwith Chairman Shri Anil
Ambani’s Profile & recent Newspaper cuttings about the company.
Then I wrote about my main project. I also annexed relevant forms
& documents, and ended my project by this conclusion.

During my training I came to know that in Reliance

Communications, there is absolute compliance of Labour Laws &
notices were also displayed. Each law is 100% implemented in the

To complete, I must say that this summer training was very helpful
to me both in broadening my knowledge & skills to handle the
management issues related with statutory compliances.


its employees for their full support in helping me to complete
my Project.





 Industrial Laws by P.L.Malik.

 Industrial and Labour Laws by V.G.Goswami.
 Payment of Bonus Act, 1965 by Eastern Book
 Industrial Dispute Act, 1947 by Eastern Book
 The Minimum Wages Act, 1948 by Law
Publishers(India) Pvt. Ltd.
 Labour Laws One Should Know by Ajay Garg.