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In the partial fulfillment of
MASTERS OF BUSINESS ADMINISTRATION
Presented to: Mr.Awadhesh Singh
Presented by: ATUL SHARMA
(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.
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 schedule.
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.
CERTIFICATE OF ORIGINALITY
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 I.R. Department Reliance Communication.
CERTIFICATE OF COMPLETION
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.
Ajit Kumar Srivastava IR Head & Project Head 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.
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 Communications”. 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 shopping. 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 initiatives. 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 : Date of Birth : Father’s Name : Mother’s Name : Mumbai, India June 4, 1959 Dhirubhai Hirachand Ambani 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-petroleumpetrochemicals-power-infocom-telecom player.
• Wharton Board of Overseers, The Wharton School, USA • Central Advisory Committee, Central Electricity Regulatory Commission • 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.
AWARDS AND ACHIEVEMENTS :
Conferred the 'CEO of the Year 2004' in the Platts Global Energy Awards Rated as one of 'India's Most Admired CEOs' for the sixth consecutive year in the Business Barons - TNS Mode opinion poll, 2004
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 deliver." "Growth has no limit at Reliance. I keep revising my vision. Only when you dream it you can do it."
THE RELIANCE GROUP
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 leader.
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
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(RCL)
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 (India). 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 MUTUAL FUND
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 enhancements.
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 Reliance.
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.
WHAT IS LABOUR LAW
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
HISTORY OF LABOUR LAW
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.
VARIOUS ACTS APPLICABLE IN RELIANCE COMMUNICATIONS
ACTS APPLICABLE IN RELIANCE COMMUNICATIONS LTD.
• THE U.P. DOOKAN AUR VANIJYA ADHISHTHAN ADHINIYAM,1962 (READ WITH U.P. NIYAMAVALI,1963) • MINIMUM WAGES ACT,1948 WITH CENTRAL MW RULES, 1950, AND UP MW RULES,1952 • PROVISION OF CONTRACT LABOUR (REGULATION & ABOLITION) ACT, 1970) • EMPLOYEE PROVIDENT PROVISIONS ACT, 1952 FUNDS AND MISC.
• EQUAL REMUNERATION ACT,1976 • INDUSTRIAL DISPUTE ACT, 1947 • PAYMENT OF BONUS ACT, 1965 • PAYMENT OF GRATUITY ACT, 1972 • EMPLOYEE’S STATE INSURANCE ACT & THE SCHEME, 1948 • MATERNITY BENEFIT ACT, 1961 • WORKMEN’S COMPENSATION ACT,1923 • CHILD LABOUR(PROHIBITION AND REGULATION) ACT, 1986
• THE APPRENTICES ACT, 1961
REQUIREMENTS UNDER DIFFERENT LABOUR LAWS
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. 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. 2. 3. 4. Register of persons employed. Muster Roll. Register of wages. Register of deductions for damages or loss. 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 workers. 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 1950.
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 (formIXA 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 1962
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. th 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 wages. 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.
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 1952
1. The Act applies to establishments employing 20 or more persons. 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 contractor.
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 year. 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 year.
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 disease.
DETAIL STUDY OF VARIOUS LABOUR LAWS APPLICABLE
U.P. DOOKAN AUR VANIJYA ADHISHTHANADHINIYAM, 1962 (READ WITH U.P. NIYAMAVALI,1963)
Object of the Act
To provide Holidays and to regulate the hours of employment of employees, working in Shops and Commercial Establishments.
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)
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 includeso Caretaker, mali or a member of the watch and ward staff.
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 year.
List of 8 Public Holidays
B’day Of Dr. Ambedkar Indepen dence Day
Republi c Day
List of Public Holidays
Holi Parewa Idul
Kartik Fitr. Purnim 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.
MINIMUM WAGES ACT,1948 WITH CENTRAL MW RULES, 1950 AND UP MW RULES,1952
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 downtrodden 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 overtime.
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.
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], Government. 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 worker; ‘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 allowance.
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
MIN. WAGES MIN. WAGES (AS PER DAY) (RS.) (PER 01/10/09 TO MONTH) 31/03/10 01/10/09 TO 31/03/10 MIN. WAGES (RS.) (PER MONTH) 01/04/10 TO 30/09/10 MIN. WAGES (AS PER DAY) 01/04/10 TO 30/09/10
1 UN SKILLED WORKER SEMI SKILLED WORKER SKILLED WORKER
2 3451.72 3934.97 4367.76
3 132.75 151.34 168
4 3795.40 4326.75 4802.64
5 145.97 166.41 184.71
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 wages
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 Inspector/authority.
o o o
Muster-roll- [FORM V] Register of wage and deductions – [FORM II] 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.
PROVISION OF CONTRACT LABOUR (REGULATION & ABOLITION) ACT, 1970)
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 establishment.
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 months. 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 concerned.
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 establishment
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 condition. • The copy of the notice shall be sent to the Inspector and whenever any changes occur the same shall be communicated to him forthwith.
Returns & Records to be Maintained by the Principal Employer
• Registers of contractors in Form-XII is to maintain & kept at establishment • 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 executed. • 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 condition. 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 Hours. • 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 Representative.
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.
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.
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.
EMPLOYEE PROVIDENT FUNDS AND MISC. PROVISIONS ACT, 1952
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 retirement.
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.
(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 establishment. “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 Scheme.
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 Act,1912 • Any other establishment under the control of State Govt. and whose Employees are entitled to benefit of contributory provident fund or old age pension.
EQUAL REMUNERATION ACT,1976
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.
• 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 Form-D
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.
INDUSTRIAL DISPUTE ACT, 1947
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.
“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.
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 fit 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 Govt.
PAYMENT OF BONUS ACT, 1965
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 power. 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 year.
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 case.
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 surplusAllocable 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.
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.
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 payable• Any customary/ festival bonus paid. • Any financial loss caused by the misconduct of the employee.
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.
THE PAYMENT OF GRATUITY 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 company. • 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 months. • 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.
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 operation.
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 period. • 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 both. • 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.
EMPLOYEE’S STATE INSURANCE ACT & 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 Contribution
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.
1st April to 30th September 1st October to 31st March
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 trust.
EMPLOYEES’ STATE INSURANCE ACT AND THE SCHEME IMPORTANT CLARIFICATIONS
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.
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 April to September October to March Benefit Period January to June 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 person. • 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 nonpayment 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
April to September October to March
Corresponding Benefit Period
January to June 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
CLARIFICTIONS REGARDING WAGES FOR CONTRIBUTION AS GIVEN BY ESI CORPORATION
TO BE DEEMED AS WAGES
• • •
Basic Pay. Dearness allowance. House rent allowance. City compensatory allowance
NOT TO BE DEEMED AS WAGES 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
BENEFITS • Sickness Benefit. • Extended Sickness Benefit for long term diseases like TB, Leprosy etc. • Enhanced Sickness Benefit for undergoing sterilization operation for Family Planning.
MATERNITY BENEFIT ACT,1961
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 delivery.
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 final.
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 5000(Minimum 3 months and Rs. 2000 respectively) Rs.
WORKMEN’S COMPENSATION ACT, 1923
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 Act. • 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 Default
• Compensation under Sec-4 shall be paid as soon as it falls due. • 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 disability • 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 commissioner.
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(PROHIBITION AND REGULATION) ACT, 1986
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 employments.
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 Prohibited
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
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 establishment. 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 employer. 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 both.
THE APPRENTICES ACT, 1961
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.
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 apprenticeship. • 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.
CHECKPOINTS FOR VARIOUS LABOUR COMPLIANCES
CHECKPOINTS FOR LABOUR COMPLIANCES
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.
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
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.
SUMMARY OF THE WAGES PAID & PF – Any
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.
PF ANNUAL RETURN, FORM 3A 6A & 12A- In this
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 LL_____________ 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
10 Whether copy of Wages payment sheet (contract vise)
duly certified by Site Engineer is enclosed 11. Whether payments have been made as per Minimum Wages fixed by Government
12 13 Whether a copy of Insurance Policy under W.C. Act enclosed Yes/No Yes/No
with the first Wage bill
Whether Indemnity Bond duly notorised is enclosed with
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 b. Whether Form 6A under P.F. Act enclosed c. Whether Form 12 A enclosed d. Whether covering letter for issue of P.F. slips by P.F. authorities enclosed. e. Whether latest inspection report by P.F. organization enclosed. Yes/No Yes/No Yes/No Yes/No Yes/No
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 body. 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. Place: Seal & Signature of the Contractor Date: WITNESS: 1 2 ……………………………………… ………………………………………
Accepted by: Signature of the Site Engineer-in–Charge……………………………………. Date: WITNESS: 1 ……………………………………… 2 ………………………………………
(To be executed and notorised on Non Judicial Stamp Paper of Rs. 10) Before Lucknow M/s_______________________________________________________,
I,_______________________________ S/o Shri______________________________, proprietor/partner of M/s____________________________________________________________________ __________ address__________________________________________________________________ _____________ take oath and solemnly affirm as under: That the deponent has of__________________________at__________ no._________________dated______________ M/s________________________________. been awarded the vide work work order 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.
Deponent Name of the Contractor and Seal The above-maintained contents are verified. Deponent Date: Name of the Contractor and Seal Name of Contractor______________________________________________
Work Order no._______________________ period_____________to_____________
SUMMARY OF THE WAGES PAID AND P.F. CONTRIBUTION MADE Name of the Contractor________________________________Month_______________ S.N o. Name of site No. of including employees Reliance site on each site P.F. Wages Member contribution @ 12% Co.’s Cont. toward s P.F. @ 3.67% Co.’s Cont. towards E.P.S. @ 8.33% Total
TOTAL 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
SUMMARY OF THE WAGES PAID AND P.F. CONTRIBUTION MADE Name of the Contractor__________________________ Month______________
S.No. Name of Employee
Earned wages on which P.F. recoveries have been made
Employe e Cont. towards P.F.@ 12%
Employers contributio n @3.67% towards P.F.
Employer Contribution towards family pension scheme @ 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 Employee Pension Scheme 1995)
Contribution Card for the currency period from 1st April 20…………..to 31st March, 20 1. Account No. ……………………………………………………………………………………… …… 2. Name/Surname……………………………………………………………………… ………………….(in block capital) 3. Father’s/Husband’s Name……………………………………………………………………………… 4. Name & Address of the Factory/Establishment……………………………………………………….. 5. Statutory rate of the Contribution……………………………………………………………………… 6. Voluntary higher rate of employee’s contrbution, if any………………………………………………. Contributions Months Worker’s share Employer’s Share Refund Remarks/ of No. of Advance days/period of Service nonAmount E.P.F. E.P.F. P.F. contribution of difference Contribution (if any) wages between 8.33%+ 12%& 8.33% (if any)+ 1 2 3 4(a) 4(b) 5 6 7 March (a) Date of paid in leaving April service, if any April May June July Aug.
(b) Reasons for leaving service, if any
Sept. Oct. Nov. Dec. Jan Feb. Feb. paid in March TOTAL 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 1st……..20……..to………20 Statutory rate of contribution………………. 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 no. the Member(in block letter) Wages, Retaining allowance (if any) and D.A. including cash value of food concession paid during the currency period 4 Amount of worker’s Contribution deducted from the wages Employer’s Refund contribution of EPF Pension Advances difference Fund s 8.33% between 12% % & 8.33% Rate of Remarks higher voluntary contribution (if any)
Reconciliation of Remittances Rs Rs Rs Rs
Amount Remitted Sl.No. Month Amount Remitted EPF Contribution including refund of advances A/c No. 1 Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Pension Fund Contribution A/c No. 10 EDLI (Admn. Charges Rs at . Contribution 65 % of wages) A/c No. 21 Rs. Aggregate Contribution Cols. 5+6+7 Rs ()
1. 2. 3 4 5 6 7 8 9 10 11 12 TOTAL
Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs
Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs
Admin Charges A/c No. 2 Rs.
EDLI Admn. Charges 0.001% 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 ……………………………………..20.” (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’ column. (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.
RA BILL LABOUR PAYMENT CLEARENCE CERTIFICATE Name of the Contractor.:Work Order No:Contractor Doc. Ref. No.:Bill Period:-. Serial No. 1 2 3 Particulars of Document PF CODE Insurance Policy ESI Applicable /Not Applicable ( √ /X ) Documents Submitted ( √ /X )
(I.R. Consultant) CMM/REP.OF
(REP. OF COMM. DEPTT) COMMUNICATION.
LABOUR PAYMENT CLEARENCE CERTIFICATE Name of the Contractor. __________________________________________ Work Order No.___________________________Contractor Doc. Ref. No.__________________________ Bill Period. ____________________________________________________ Serial No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Particulars of Document Indemnity Bond Insurance Policy Labour License Affidavit PF Code no. PF Challan PF Return, Form-V PF Return, Form-X PF Return, Form-XIIA Summary of the wages paid and PF deposited Attendance Sheet Wages Sheet Latest Inspection Report PF Annual Return Form 3-A,6-A&12-A PF Slip Covering Letter Applicable /Not Applicable ( √ /X ) Documents Submitted ( √ /X )
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
REMARKS/RECOMMENDATION _______________________________________________________ _______________________________________________________________________ _______________ _______________________________________________________________________ _______________
(I.R. Consultant) Communication
(Rep. of Commercial Dept)
FORM 12-A (Revised) (Paragraph 38(2) Provision of the Employees’ Provident Funds Scheme 1952) Statement of Contribution for the month of ……………………..20……….. Name and address of the establishment………………………………………………… Code No. of the Establishment…………………………………………………………. 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 are EPF FPF Total EPF FPF Total recovered 11/6% 11/6% (a) 1 2 (b) 3 (c ) (a) (b) 4 (c )
Amount of Contribution remitted in Account Nos. 1 and 10 Worker’s Share Employer’s Share EPF (a) 5 FPF 11/6% (b) 6 Total (c) EPF (a) FPF 11/6% (b) 7 Total (c ) 8 Total
1. Total amount remitted in Account no. 1 Rs………………………………………………………… Date of remittance………………………………………………………… 2. Total amount remitted in Account No. 10 Rs………………………………………………………… Date of remittance………………………………………………………. Amount of Amount of Date of Name and Whether the 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 Regional Officer 9 10 11 12 13
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 Employees…………... Contract Total Total No of Subscribers………………….. Currency period from 1st April 20.. to 31st March 20.. Statutory Rate of Contribution ……………………. No. of members voluntarily contributing at higher than the statutory rate…………………………. Signature of the Employer (with official seal) Date……. 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. Rest
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 company. 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. I am thankful to RELIANCE COMMUNICATIONS and its employees for their full support in helping me to complete my Project.
www.relianceinfo.com www.gm.ril.com www.google.com www.gmrelianceada.com
• BOOKS Industrial Laws by P.L.Malik. Industrial and Labour Laws by V.G.Goswami. Payment of Bonus Act, 1965 by Eastern Book Company. Industrial Dispute Act, 1947 by Eastern Book Company. The Minimum Wages Act, 1948 by Law Publishers(India) Pvt. Ltd. Labour Laws One Should Know by Ajay Garg.
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