HAND BOOK ON

CONTRACT LABOUR
MANAGEMENT

D S RAO
 Foreword
There has been a paradigm shift in the economic scenario. Organizations
are under unprecedented pressure to develop core competence to have
competitive edge over their competitors.

Economy and Efficiency is essence of business. Globalization, statutory

compliances of labour laws, need of flexible and efficient
employment/work-practices, increasing cut-throat competition and
question of survival etc. has necessitated discovering alternative
employment system, i.e., Contract Labour System, or outsourcing as
some call it. But contract labour system has brought in with it new
challenges, legal as well as practical; hence this system needs its thorough
understanding before its correct application in order to derive optimum
benefits out of it.

The Hand Book on Contract Labour Management is a compilation of

legislations whose compliances is essential with "Dos and Don'ts" for
Principal employer, Returns and Registers under different acts, Samples
of forms, Tips to read Challans for our young HR Executives. The
handbook will bring awareness among HR executives and will serve as a
ready reckoner to cross check with the different provisions under various
acts.

The Hand Book will give the readers an opportunity to get a thorough
knowledge about the provisions and best use of the contract labour
system, about its statutory compliances to avoid fines and prosecutions;
and about bringing in a great difference in the working and profitability
of the organization.

Happy Reading
 INDEX

Chapter I : Introduction and Checklist 1 - 18

Chapter II : Gist of Acts 19 - 68

(a) The Contract Labour (Regulation &

Abolition) Act, 1970
(b) The Payment of Wages Act, 1936;
(c) The Minimum Wage Act, 1948;
(d) The Employees' Provident Funds and
Miscellaneous Provisions Act, 1952;
The Employees' Pension Scheme, 1995.
(e) The Employee's Compensation Act, 1923;
(f) The Equal Remuneration Act, 1976;
(g) The Child Labour (Prohibition & Regulation)
Act, 1986;
(h) Inter State Migrant Workmen (Regulation
of Employment and Conditions of Service)
Act, 1979;
(e) The Employees' State Insurance Act, 1948;
(f) Building and other Construction Workers
(Regulation of (g) Employment and Conditions
of Service) Act, 1996.
(g) Building and other Construction Workers
Welfare Cess Act., 1996;
(h) The Payment of Bonus Act, 1965;
(i) The Maternity Benefit Act; 1961;
(j) The Industrial Disputes Act, 1947;
(k) The Payment of Gratuity Act, 1972;
(l) The Employees' Liability Act, 1938;
(m) Factories Act, 1948;
(n) The Trade Unions Act, 1926
(o) The Motor Transport Workers Act; 1961.
Chapter III : Returns and Registers under
different Acts 69 - 73

Chapter IV : Do's and Don'ts for Principal Employer 74 - 76

Chapter V : Internal Audit Forms 77 - 84

(a) PF
(b) Contract Labour

Chapter VI : Tips to read Provident Fund Challan,

ESI Challan 85 - 98

Chapter VII : Samples of : 99 - 124

A) Appointment Letter
B) Compliance Certificate
C) Indemnity Bond
D) Information about the Contractor
for issue of Form V
E) List of Clauses to be incorporated
in O&M Contracts
F) Contracting Closing Forms – CCP X & XI
 CHAPTER – I

Outsourced workers are deployed by many firms in

different establishments. Outsourced workers are deployed in
large numbers by leading Contracting Establishments during
Construction & Erection works and few during O&M stage. An
organisation as a Principal Employer and the Contracting
Establishments need to comply with various statutory provisions
under different Acts. An effort has been made to develop a
check-list on various issues like Statutory Compliance, Safety,
Gate pass, Dealing with Accidents, Periodical Audits etc. as
part of Knowledge Management for use at NTPC.

The objective of the compilation is to bring awareness

among HR executives, evolve standard practices across the
organization, act a ready reckoner to cross-check with the
different provisions under various Acts, for system building and
for pro-active audit etc.

The check-list is illustrative. In case there are provisions

which are not in tune with extant Organization policy,
necessary approvals are to be obtained from Competent
Authority.

   
1 
   
A. STATUTORY COMPLIANCE

1. Compliance of Provisions under the illustrative list of

Acts which are relevant during Construction & Erection
and O&M stage.

(i) The Contract Labour (Regulation & Abolition)

Act, 1970

(ii) The Payment of Wages Act, 1936;

(iii) The Minimum Wage Act, 1948;

(iv) The Employees' Provident Funds and

Miscellaneous Provisions Act, 1952; The
Employees' Pension Scheme, 1995.

(iv) The Employee's Compensation Act, 1923;

(v) The Equal Remuneration Act, 1976;

(vii) The Child Labour (Prohibition & Regulation) Act,

1986;

(viii) Inter State Migrant Workmen (Regulation of

Employment and Conditions of Service) Act,
1979;

(ix) The Employees' State Insurance Act, 1948;

(x) Building and other Construction Workers

(Regulation of Employment and Conditions of
Service) Act, 1996.

(xi) Building and other Construction Workers Welfare

Cess Act., 1996;

   
2 
   
 (xii) The Payment of Bonus Act, 1965;

(xiii) The Maternity Benefit Act; 1961;

(xiv) The Industrial Disputes Act, 1947;

(xv) The Payment of Gratuity Act, 1972;

(xvi) The Employees' Liability Act, 1938;
(xvii) Factories Act, 1948;
(xviii) Indian Electricity Act 2003; its rules
(xix) The Trade Unions Act, 1926
(xx) The Motor Transport Workers Act; 1961.

2. Registration as Principal Employer under the following

Acts:

(a) Contract Labour (R&A) Act, 1970

(b) Inter-State Migrant Workmen ( RE & CS) Act,
1979 (To take care of labour working from other
states)

(c) ESI Act 1948 (wherever applicable - ESI is

applicable wherever the area is notified)

3. Due diligence with respect to the Appropriate Govt. (As

of now it is Central Govt.)

4. Ensuring that security deposit by NTPC remitted has

taken into consideration the maximum no. of labour
likely on a particular date (which is arrived at by
envisaging the maximum demand for labour at the peak
period), while Registering under the above Acts.

5. a) Ensure that contracts are only awarded to

Establishments which have independent PF/ESI
codes.

   
3 
   
 b) Ensure that the contracting establishment is
registered under BOCW Act (During
Construction Stage).

6. a) Maintaining Form XII under CL Act by Principal

Employer and relevant registers by Contracting
Establishments like Form XIII (Register of
Workmen), Form XVIII (Form of Register of
wages-cum-Muster roll), Form XIX (Wage Slip);
Form XX (Register of Deductions for Damage or
Lost); Form XXI (Register of Fines); Form XXII
(Register of Advances), Form XXIII (Register of
Overtime).

b) Contractor to send Half Yearly return to the

Licensing Authority in Form XXIV for the period
Jan-June & July-Dec. as applicable.

c) To submit Annual returns as Principal Employer

to the Registering Officer for the year ending
31st Dec. by 15th Feb., following the end of the
year to which it relates.

7. Similarly, relevant data under PF Act, ESI Act and other

Acts as at Page 69-73..

8. To declare 'Project In charge' as Principal Employer, if it

is a Brownfield Project.

9. Initiate process for Factory license by submitting the

drawings for approval. to Directorate of Factories of the
Respective State. (Check the procedure in each State,
since Rules are different. For example Bihar has an
Assessment Committee to recommend whereas majority
of the other States do not have).

   
4 
   
10. Do a proactive audit periodically on Contracting
Establishment from HR vis-a-vis the formats enclosed
(Chapter-V). It would help Contractors to be fully
prepared for inspection by Labour/PF/ESI Authorities
and are complying with the relevant provisions under
these Acts.

11. Ensure display of rates of minimum wage, category-wise

at the entrance and strategic locations in English/local
language along with the Statutory Authority's name and
contact number as per relevant rules of the Contract
Labour Act.

12. Ensure display of the notices as per Gratuity Act,

Payment of Wages Act, Bonus Act etc.

13. Finalise list of Closed holidays for contracting

establishments and align with NTPC holidays list to the
extent possible.

14. Update data regarding all Statutory Authorities to be

made available to CISF for allowing them for Inspection
and to contractors while issuing Form-V.

15. Check up the applicable Schedule of Minimum Wages

as per the local rules and implement (e.g. Roads &
Building Workers Minimum Wage Schedule or other
schedules).

16. Collect the details of Revised rates of Minimum Wages

every six months and notify through the circular to all
EICs/HODs. Ensure copy for F&A. Ensure that suitable
changes are made in the Display Boards.

   
5 
   
 17. Ensure payment of wages is witnessed by EIC or his
representative and ensure certification as per rules of
CL Act in the wage register. Witnessing of wage
payment is w.r.t. the actual amount paid as per extant
minimum wages as mentioned in a particular column. It
does not cast any obligations on Principal Employer.

18. Obtain certificate from Contractor through EIC that

PF/ESI amount is remitted as per enclosed performa,
along with names of workers with each R.A. bill. (Page
104 - 105).

19. The following components (Statutory & Non-statutory)

may be loaded during preparation of the estimate:

S. % T&P 2 % T&P
Description
No. USW SSW SW USW SSW SW
Min. wages per
1. 205.92 234.07 273.00 205.92 234.07 273.00
day
Contractors
2. 20.59 23.41 27.30 20.59 23.41 27.30
Profit @ 10%
PF @ 13.61%
including
3. 28.03 31.86 37.16 28.03 31.86 37.16
administrative
charges
4. ESI @ 4.75% 9.78 11.12 12.97 9.78 11.12 12.97
Holiday
5. Payment @ 6.07 6.91 8.05 6.07 6.91 8.05
2.95%
Retrenchment
6. Benefit @ 10.13 11.52 13.43 10.13 11.52 13.43
4.92%
Annual Leave
7. 10.30 11.70 13.65 10.30 11.70 13.65
Payment @ 5%
Bonus @
8.33@ limited
8. to a maximum 11.48 11.48 11.48 11.48 11.48 11.48
of Rs.3500/-
per annum

   
6 
   
9. T&P 0.00 0.00 0.00 4.12 4.68 5.46
Safety @ Rs.3/-
10. 3.00 3.00 3.00 3.00 3.00 3.00
per Manday
Alllowances
11. 18.46 18.46 18.46 18.46 18.46 18.46
Rs.480/26*
Total Amount
12. for One 323.76 363.52 418.50 327.88 368.20 423.96
Manday

* Cost of Jaggery/Soap etc. based on agreement between

the Contractors and their Workers.

* Uniform/Attire may be loaded as per Project

For the purpose of clarity the definition of various

categories of workers is as below:

(a) "Unskilled Work" means work which involves

simple operations requiring little or no skill or
experience on the job.

(b) "Semi-skilled Work" means work which involves

some degree of skill or competence acquired
through experience on the job and which is
capable of being performed under the
supervision or guidance of a skilled employee
and include unskilled supervisory work.

(c) "Skilled Work" means work which involves skill

or competence acquired through experience on
the job or through training as an apprentice in a
technical or vocational institute.

(d) "Highly Skilled Work" means work which calls

for a degree of perfection and full competence in
the performance of certain tasks including
clerical work acquired through intensive technical

   
7 
   
 or professional training or practical work
experience for certain reasonable period and
also requires of an worker to assume full
responsibility for the judgment or decision
involved in the execution of these tasks.

20. Ensure that height allowance etc. is paid as per Central

rules for the workmen doing jobs at height. Must ensure
loading in the estimate, as below:

(a) Where the Central Government has sanctioned

payment of winter allowance or hill allowance or
any other special allowance shall be paid in
addition to the minimum rates of wages fixed by
the notification, an amount equal to 10 percent of
the minimum rates of wages so fixed.

(b) Provided that in places, which are at a height of

over 6,000 feet, above sea level, 10% extra
wages will be paid.

(c) Workers employed on high rise structures that is

on or above 30 feet height, even for an hour in a
day shall be paid 20 percent extra wages of the
minimum wages for the appropriate category.

(d) Workers employed on tunnel working shal be

paid 20 percent extra of the minimum wages
under this notification for the appropriate
category.

21. (a) Where in any area the minimum rates of wages

fixed by Central notification are lower than the
minimum rates of wages fixed by the State
Government for employees in employment, to
which the State Government is the appropriate

   
8 
   
 Government, the rates of wages fixed by the
State Government shall in respect of these area,
be deemed to be the minimum rates of wages
payable under contract notification.

(b) The minimum rates of wages include also the

wages for weekly day of rest.

(c) The minimum rates of wages payable to disabled

employees shall be the same as payable to
workers of the appropriate category.

(d) Men and women employees shall get the same

rates of wages for the same work or work of
similar nature.

(e) Minimum rates of wages and special allowance

both constitute the minimum rates of wages to be
enforceable under the Minimum Wages Act,
1948.

22. Incorporate penalty clause for non-payment of wages in

time and for non compliance of Statutory Rules in all
Contracts based on the value of the Contract in
standard terms and conditions.

23. Incorporate clause that payment is remitted to labour

through bank or ensure pre-paid cards upto Rs. 1 lakhs.
Cash transactions should as far as possible limited to 15
days or below.

24. Ensure remittance of cess under BOCW act by

Contracting Establishments and ensure their insurance
coverage etc. as applicable in few States like Andhra
Pradesh.

   
9 
   
25. Ensure that Appointment Order on Fixed Tenure basis is
given by the Contracting Establishments to their
Workers. Performa enclosed (Page 92 - 103).

26. Illustrative list of Do's and Don’t's as a Principal

Employer to be followed – Chapter-IV.

27. On completion of contract, send intimation of completion

of work by the Contracting Establishment to the Labour
Authorities.

II. GATE PASS

1. Maintain CLMS package from day one – already

implemented in Projects like Kahalgaon, Korba etc.

2. (a) While issuing gate passes, get Safety Clearance

and ensure it is routed through EIC. Keep a copy
for updation and send original to CISF for
issuance of Gate Pass. Insist that names and
particulars of the workers for whom Gate pass is
being issued is also entered in Employee
Register, (Form XIII of CL Act, 1970) before it is
forwarded to CISF.

(b) Ensure that Contractor has got certification of

Medical fitness for all his workers and that they
have attended Safety Induction programme
before details are sent to CISF for issuance of
gate pass.

3. Periodicity of Gate passes renewal for contract workers

may be restricted to once in 3 months.

4. For PSUs employees like BHEL, make provision for gate

pass validity for 6 months-1 year.

   
10 
   
5. Do not permit and allow gate passes for vehicles without
proper Registration Book. Third Party Insurance and
Valid Driving License.

6. Do not allow any Construction Equipment to go out of

the Project premises without proper Material Gate Pass
and the approval of Head of the Project.

7. Keep data base of Gate Pass like Locals; Non-locals;

PAPs-Village-wise, Skill-Wise, Category-wise. (Use
CLMS)

8. In case Project area is not covered under ESI, ensure

that Employees' Compensation Insurance Cover is
obtained within 7/15 working days after obtaining
undertaking from Contractor duly routed through EIC.
Issue temporary gate pass till then and subsequently
process for Permanent Gate Pass.

9. Ensure that Insurance covers all the workmen as per

gate passes, since Insurance is not valid if coverage is
limited to few workers e.g. if 50 workers are employed
all should be covered; coverage for 10 workers is not
valid, for reimbursement

10. Specimen signature of EIC to be forwarded to CISF,

who are authorized for material gate pass and photo
gate passes with the approval BUH. Data to be updated
periodically.

11. Gate passes may be serially numbered for easy

identification and retrieval.

12. Ensure that age of all Contract Labour is 18 years or

more. Ensure filling up of age and date of birth column

   
11 
   
 by the Contractors. Depute HR representative at Labour
entry gate periodically for physical audit.

13. Develop colour scheme for gate passes, for easy

identification. For example separate colour for
Managers/Supervisors; UPL vis-à-vis Non-UPL, Skilled,
Semi-skilled, Unskilled etc. based upon site
requirement.

14. In the event photo-gate pass is lost, ensure that

Contractor sends the information to the nearest Police
Station by Registered Post.

15. Finalise the charges to be levied for issuance of

duplicate Gate-pass, and the charges levied should act
as a deterrent for the loss.

16. The number of gate passes should not exceed the

number of labour mentioned in the contractor's license
given under the CL (R&A) Act.

17. Ensure cancellation of Gate Passes of workers who

have left the premises periodically.

18. Ensure return of all original gate passes to CISF at the

end of contract, before issuing no dues by HR at the
time of contract closing.

III. PROCEDURE FOR ISSUANCE OF FORM-V

1. Get relevant details from Contractors in the enclosed

format, before issuance of From-V (Page 112 - 116). As
per rules separate license should be taken by the
Contractor for each work.

   
12 
   
2. In Corporate Awarded packages Principal Employer can
issue Form-V to Sub-Contractor of the Main Contractor
provided it is approved by NTPC-CC.. Get a copy of
Sub-contractor approval granted by CC for records.

3. Take indemnity bond w.r.t. Sub-contractor from the

main contractor. Main contractor shall indemnity against
any deviations of various legal obligations of the Sub-
Contractor. For e.g. : BHEL is the main contractor and
EDAC/Sunil Hi-Tech are its Sub-Contractor/s, BHEL
has to give Indemnity Bond (Page 106 - 108).

IV BILL PAYMENT

1. Ensure that contractor submits PF/ESI challan of

previous month along with RA bill and the certificate as
per performa and ensure a copy is obtained for records
(Page 104 - 105). They are useful for PF inspection,
clearance of final bill etc. Form 5, 10, 12A under PF &
MP act to be obtained.

2. Tally PF challan, ESI challan along with wage register

once in a while. Instructions to read PF/ESI Challan
along with sample enclosed (Chapter - VI). EIC should
tally the challans on monthly basis.

V. CONTRACT CLOSING

1. Ensure that at the end of period of contract, EICs issues

a circular / communication seeking 'No dues' from all
Departments and that the Contract is going to be closed.

2. Ensure and recheck that Contractor has upto date

entries in Form XIII (Register of Workmen) and retain a
photocopy of all entries, duly certified by the Contractor.

   
13 
   
3. Obtain PF/ESI challans and cross tally with Employee
Register (Form XIII) / Undertaking obtained.

4. Ensure that the Contracting Establishment has a valid

labour license.

5. Ensure that relevant Contract Closing Certificates are

obtained i.e. – (i) CCP – 10 – Certificate regarding
Labour Payments and Statutory Requirements (Page
121 - 122). (ii) CCP – 11 – No Demand Certificate by the
Contractor (Page 123 - 124). Retain photocopies and
send the original to F&A.

6. In case the Contracting Establishment is not awarded

the same work, ensure statutory benefit like
Retrenchment Compensation, Bonus, Cash
Compensation against unutilized Leave, OT etc. are
paid. Worker-wise details may be obtained for records.

7. Ensure that Contractor or his authorized representative

(whose signature is valid in PF/ESI office) sign From XIII
– Transfer of PF Form of each worker for transfer to the
New Establishment or the withdrawal form. In case of
withdrawal, there is a lock-in period of 60 days as per
Act.

VI. SECURITY

1. In view of Security, install Door frame Metal Detectors

and have X-ray unit at the main entrance.

2. Please ensure that the details of all Contract Labour

along with their permanent addresses are sent to the
nearest Police Station, under whose jurisdiction the
Project/Station falls for Character and Antecedents

   
14 
   
 verification, either in person or through Registered Post
A/D.

3. Introduce bio-metric/ bar code attendance linked to

CLMS for the purpose of security.

VII DEALING WITH ACCIDENTS

1. On getting information about an accident gather all

relevant data.

(a) Ascertain on nature of injury: minor, major or

fatal

(b) Collect details like:

(i) Name of the injured;

(ii) Nature of injury;
(iii) Contractor with whom he is employed with;
(iv) Local or non-local;
(v) Whether the injured moved for first aid to
Health Centre/Hospital;
(vi) Whether any representative of contractor
accompanied him or not? Contractor
representative's Mobile number;
(vii) Report from (a) Contractor (b) Safety

2. Inform Project Safety/Project-in-Charge/ EIC/

BUH.RHOHR/ RED/ ED (HR)/ Relevant Statutory
Authorities like Factory Inspector/Police/Collector based
on the nature of injury.

3. IR report to be given to CC/Reginal Hqr. in case of

major injuries/fatal accident.

   
15 
   
4. Information to be gathered about IR situation at the work
spot/premises.

5. Deploy CISF/Police (wherever necessary) to defuse any

untoward incident.

6. Photocopy of the gate pass of the injured to be

collected by CISF from the Contractor in case of fatal
accident for details. In case of non-availability
gather/retrieve from data given by the Contractor while
securing gate pass for labour.

7. Refer to the skill category while settling any

compensation.

8. Liaison for postmortem/transportation/funeral expenses/

expenses for the accompanied personnel in case of fatal
accident with the Contractor/EIC.

9. Calculation of Employee's compensation :

An illustration:

a) Fatal : 1. Age of the Deceased : 34 years

2. Wage of the deceased : Rs. 210/-
per day (limited to Rs. 4000/-)*

* Notional wage is revised periodically.

To check up the latest notional wage on periodical

basis.

Calculation is 50% of monthly wages X Age Factor

Rs. 4000 x 50 x 199.40 = Rs.3,98,800/-

100

   
16 
   
 b) Non-Fatal : 1. Age : 40 yrs. Notional wage :
Rs.4000/- Disability 10%

Calculation is: 60% of monthly wages X % of

disability X age factor =4000/- x 60/100 x 10/100 x
184.17 = Rs. 44201/-

VIII. GENERAL

1. Establish a Contract Labour Cell at every Project/

Station.

2. Do not issue any performance certificate to any contract

worker.

3. Performance certificate to the Contractor is issued by

Tech. Services/Contracts & Materials Deptt. on the
recommendation of EIC.

4. FIR, in case of theft of contractor material within plant

premises is to be lodged by Contractor. Details to be
given by the Contractor or his representative.
Help/liaison can be rendered by CISF.

5. FIR in case of NTPC material inside/outside factory is to

be lodged by concerned officer, HR to liaison with Police
to ensure lodging of FIR by concerned Officer.

6. Liaison on regular basis with Hon'ble MLA/MP;

Collector; Chief of Police; Land Acquisition Officer;
Tehsildar; all Statutory Authorities; etc.

7. Keep all important contact numbers upto date.

   
17 
   
8. Facilitate formation of body of Contractors or Nodal
Agency, for the purpose of implementation of schemes
like Jana Shree Bima Yojna for Workers.

9. Explore the possibility to engage a NGO in Greenfield

Projects to spread awareness on safety, Health and
Environment in Labour Agglomeration and develop
engagement models like sports etc.

10. Work space or space for Labour Colony within NTPC

owned land is to be earmarked by Technical Services,
with a clause that the land to be restored to its original
condition after the work of the contractor is over or on
expiry of the tenure, whichever is earlier.

11. Develop daily/monthly MIS to record events during

Construction/Erection as well as O&M stage, for future
reference and to identify regular defaulters on Statutory
Compliance aspects etc.

12. In case of strike/bandh call by TUs/locals etc. ensure

that it is communicated well in advance to all EICs/Head
of Project/Head of O&M/BUH/CISF and explore
possibility to call the labour earlier than their stipulated
time; explore alternate gates for entry; liaison with
CISF/Policy for effective patrolling; law and order.

13. Ensure that Compulsory Annual medical check up for

workers in Hazardous Area is done as per directives of
Hon'ble Supreme Court judgment.

14. Sample special conditions of contract (illustrative) for

O&M contractors is enclosed as Page 117 - 120.

   
18 
   
 CHAPTER – II
GIST OF ACTS

CONTRACT LABOUR (REGULATION & ABOLITION)

ACT 1970

Objective of the Act

• To regulate the employment of contract labour in certain

establishments and to provide for its abolition in certain
circumstances and for matters connection therewith.

Applicability

Sec.1

• Every establishment in which 20 or more work men are

employed or were employed on any of the preceding 12
months as contract labour.

• Every contractor who employs or who employed on any

day of the preceding twelve months 20 or more
workmen.

Registration of Establishment

Sec. 7

• Principal employer employing 20 or more workers

through the contractor or the contractor(s) on deposit of
required fee in Form 1.

   
19 
   
Revocation of Registration

Sec.9

• When obtained by misrepresentation or suppression of

material facts etc. after giving opportunity to the principal
employer to state their position.

Prohibition of employment of Contract Labour

Sec. 10

• Only by the appropriate Government through issue of

notification after consultation with the Board can order
the prohibition of employment of contract labour.

Licensing of Contractor

Sec.12 – Rule 21

• Engaging 20 or more than 20 workers and on deposit of

requisite fee and application in Form IV.

• Valid for specified period. To be renewed year after

year.

Revocation or Suspension & Amendment of Licencses

Sec. 14

• When obtained by misrepresentation or suppression of

material facts.

• Failure of the contractor to comply with the conditions or

contravention of Act or the Rules.

   
20 
   
Welfare measures to be taken by the Contractor

Secs. 16 & 17

• Contract labour either one hundred or more employed

by a contractor for one or more canteens shall be
provided and maintained.

• First aid facilities.

• Number of rest rooms as required under the Act.

• Drinking water, latrines, urinals and washing facilities.

Liability of Principal Employer

Sec. 20

• To ensure provision for canteen, rest rooms, sufficient

supply of drinking water, latrines and urinals, washing
facilities.

• Principal employer entitled to recover from the

contractor for providing such amenities or to make
deductions from amount payable.

Responsibility of Contractor for Payment of Wages

Sec. 21, Rule 25

• To pay timely and to ensure the disbursement of wages

in the presence of the authorized representative of the
principal employer, before the stipulated date.

• Rate of wages not less than the minimum wage rates as

fixed.

   
21 
   
 PAYMENT OF WAGES ACT, 1936

Objective of the Act

• To regulate the payment of wages of certain classes of

employed persons.

Applicability of the Act:

• Factory, Industrial Establishment, Tramway service or

Motor Transport Service engaged in carrying
passengers or goods or both by road for hire or reward,
Air transport service, Dock, Wharf or Jetty, Inland
vessel, mechanically propelled, Mine, quarry or oil-field,
plantation, workshop or other establishment etc.

Coverage of Employees

• Drawing average wage upto Rs. 10,000 per month.

Time of payment of wages

Sec. 5

• The wages of every person employed be paid:

- When less than 1000 persons are employed,

shall be paid before the expiry of the 7th day of
the following month.

- When more than 1000 workers, before the expiry

of the 10th day of the following month.

   
22 
   
Wages to be paid in current coins or currency notes

Sec. 6

• All wages shall be paid in current coins or currency

notes orin both.

• After obtaining the authorization, either by cheque or by

crediting the wages in employee's bank account.

Deduction made from wages

Sec.7

• Deductions such as fine, deduction for amenities and

services supplied by the employer, advances paid, over
payment of wages, loan granted for house building or
other purposes, income tax payable, in pursuance of the
order of the court, PF contributions, cooperative
societies, premium for Life Insurance, contribution to any
fund constituted by employer or a trade union, recovery
of losses, ESI contributions etc.

Fines as prescribed by

Sec. 8

• Not to be imposed unless the employer is given an

opportunity to show cause.

• To record in the register.

   
23 
   
Deduction for absence from duties for unauthorized
absence

Sec. 9

• Absence for whole or any part of the day

- If ten or more persons absent without reasonable

cause, deduction of wages upto 8 days.

Deductions for services rendered

Sec. 11

• When accommodation amenity or service has been

accepted by the employee.

   
24 
   
 MINIMUM WAGES ACT, 1948

Objective of the Act

• To provide for fixing minimum rate of wages in certain

employments.

Fixation of Minimum Rates of Wages

Sec. 3

• The appropriate Government to fix minimum rates of

wages. The employees employed under part – I or part-
II of Schedule.

• To make review at such intervals not exceeding five

years the minimum rates or so fixed and revised the
minimum rates.

Government can also fix Minimum Wages for

• Time work, piece work at piece rate, Piece work for the
purpose of securing to such employees on a time work
basis, Overtime work done by employees for piece work
or time rate workers.

Minimum Rates of Wages

Sec. 4

• Such as : Basic of wages etc., Variable DA and Value of

other concessions etc.

   
25 
   
Procedure for fixing and revising Minimum Rates of Wages

Sec. 5

• Appointing Committee

• Issue of Notification etc.

Composition of Committee

Sec. 9

• Representation of employer and employee in scheduled

employment in equal number and independent persons
not exceeding 1/3rd or its total number one such person
to be appointed by the Chairman.

Payment of Minimum Rates of Wages

Sec. 12

• Employer to pay to every employee engaged in

scheduled employment a a rate not less than minimum
rates of wages as fixed by Notification by not making
deduction other than prescribed.

Fixing Hours for Normal Working

Sec. 13

• Shall constitute a normal working day, inclusive of one

of more specified intervals.

• To provide for a day of rest in every period of seven

days with remuneration.

   
26 
   
• To provide for payment for work on a day of rest at a
rate not less than the overtime rate.

Overtime

Sec. 14

• To be fixed by the hour, by the day or by such a longer

wage-period works on any day in excess of the number
of hours constituting a normal working day.

• Payment for every hour or for part of an hour so worked

in excess at the overtime rate double of the ordinary rate
(1½ times for agriculture labour).

Wages of workers who work for less than normal working

days

Sec. 15

• Save as otherwise hereinafter provided, be entitled to

receive wages in respect of work done by him on that
day as if he had worked for a full normal working day.

Maintenance of registers and records

Sec. 18

• Register of Fines _ Form 1 Rule 21(4)

• Annual Returns – Form III Rule 21 (4-A)
• Register of Overtime – Form IV Rule 25
• Register of Wages – Form X, Wage slip – Form XI,
Muster Roll – Form V Rule 26
• Representation of register – for three years Rule 26-A.

   
27 
   
EMPLOYEES' PROVIDENT FUND & MISC PROVISIONS ACT
AND THE SCHEMES

Applicability

• Every establishment which is a factory engaged in any

industry specified in Schedule 1 and in which 20 or more
persons are employed.

• Any other establishment employing 20 or more persons

which Central Government may, by notification, specify
in this behalf.

• Any establishment employing even less than 20 persons

can be covered voluntarily u/s 1(4) of the Act.

Eligibility

• Any person who is employed for work of an

establishment or employed through contractor in or in
connection with the work of an establishment.

Rates of Contribution

SCHEME EMPLOYEES EMPLOYER'S

Provident Fund 12% Amount > 8.33%
Scheme (in case where
contribution is 12% or
10%)

10% (in case of certain

establishments as per
details given earlier.
Insurance Scheme Nil 0.5%
Pension Scheme Nil 8.33%
(diverted out of Provident
Fund Contributions)

   
28 
   
Payment of Contribution

• The employer shall pay the contribution payable to the

EPF, DLI and Employees' Pension Fund in respect of
the member of the Employees' Pension Fund employed
by him directly by or through a contractor.

• It shall be the responsibility of the principal employer to

pay the contributions payable to the EPF, DLI and
Employees Pension Fund by himself in respect of the
employees directly employed by him and also in respect
of the employees employed by or through a contractor.

Clarification about Contribution

• After revision in wage ceiling from Rs.5000 to Rs.6500

w.e.f. 1.6.2001 per month, the government will continue
to contribute 1.16% upto the actual wage of maximum,
Rs.6500 per month towards Employees' Pension
Scheme. The employer's share in the Pension Scheme
will be Rs.541 w.e.f. 1.6.2001.

• Under Employees' Deposit Linked Insurance Scheme

the contribution @ 0.50% is required to be paid upto a
maximum limit of Rs.6500. The employer will pay
administrative charge @ 0.01% on a maximum limit of
Rs.6500.

• The employer will also pay administrative charges @

0.01% on maximum limit of Rs.6500 whereas an
exempted establishment will pay inspection charges @
0.005% on the total wages paid.

   
29 
   
Notes:

(1) The above clarification is given by taking wages upto a

maximum of Rs.6500 towards wage (Basic + DA).

(2) Since an excluded employee i.e. drawing wages more

than Rs.6500 can also become member of the Fund and
the Schemes on joint request and if, for instance, such
an employee is getting Rs.10,000 per month, his share
towards provident fund contribution will be Rs. 1200 e.g.
12% and employer's share towards provident fund
contribution will be Rs.659 and Rs.541 towards
Employees' Pension Fund.

   
30 
   
 EMPLOYEES' COMPENSATION ACT, 1923

Applicability
• All over India

Coverage of Employees
• All employees in any capacity irrespective of their status
or salaries either directly or through contractor or a
person recruited to work abroad.

• Employer's liability to pay compensation to an employee

• On death or personal injury resulting into total or partial

disablement or occupational disease caused to a
employee arising out of and during the course of
employment.

When an employer is not liable for compensation

Sec.3 (a) & (b)
• In respect of any injury which does result in total or
partial disablement of the employee for a period
exceeding three days.
• In respect of any injury, not resulting in death or
permanent total disablement caused by an accident,
which is directly attributable to:
- The employee having been at the time thereof
under the influence of drink or drug; or

- Wilful disobedience of the workman to an order

expressly given or to a rule expressly framed, for
the purpose of securing the safety of employee,
or

   
31 
   
 - Wilful removal of disregard by the employee of
any safety guard or other device which he knew
to have been provided for the purpose of
securing the safety of employee.

Amount of compensation

Sec. 4

• Where death of an employee results from the injury: an

amount equal to fifty per cent of the monthly wages of
the deceased employee multiplied by the relevant factor
or an amount of one lakh twenty thousand rupees
whichever is more.

• Where permanent total disablement results from the

injury: an amount equal to sixty per cent of the monthly
wages of the injured workman multiplied by the relevant
factor or an amount of one lakh forty thousand rupees,
whichever is more.

Notice of Accident

Sec. 10

• As soon as practicable.

Report of Accident

Rule 11 Form EE – Sec. 10 B

• Report of fatal accident and serious injury within 7 days

to the Commissioner (not applicable when ESI Act
applies.)

   
32 
   
 EQUAL REMUNERATION ACT, 1976

Objective of the Act

• To provide for the payment of equal remuneration to

men and women workers and for the prevention of
discrimination, on the ground of sex, against women, in
the matter of employment and for connected or
incidental matters.

Act to have overriding effect

Sec.3

• The provisions of this Act shall have effect

notwithstanding anything inconsistent therewith
contained in any other law or in the terms of any award,
agreement of contract of service, whether made before
or after this Act.

Duty of employer to pay equal remuneration to men and

women workers for same work

Sec.4

• No employer shall pay to any worker, employed by him

in an establishment or employment, remuneration, cash
or in kind, at rates less favourable than those at which
remuneration is paid by him to the workers of the
opposite sex for performing the same work or work of a
similar nature.

No employer shall reduce the rate of remuneration.

• Where the rates or remuneration payable before the

commencement of this Act for men and women workers

   
33 
   
 for the same work or work of a similar nature are
different only on ground of sex, then the higher or the
highest rate at which remuneration to be paid. Upto date
register for all workers (Male/femle) employed in Form
'D' to be maintained.

   
34 
   
 THE CHILD LABOUR (PROHIBITION & REGULATION)
ACT, 1986

Objective of the Act

• To regulate the conditions of the work of the children in

certain employment.

Definitions

Sec. 2

• 'Child' means a person who has not completed his 14

years of age.

• Establishment includes a shop, commercial

establishment, workshop, farm, residential hotel,
restaurant, eating house, theatre or other place of public
amusement or entertainment.

Prohibition of employment of children in certain

occupations and processes

Sec.3

• No child to be employed in occupation set forth in Part A

of the Schedule or any workshop wherein any of the
processes set-forth in part B of the Schedule is carried
on.

Dispute as to age

Sec. 10

• In the absence of certificate of age, can be referred for

decision of prescribed medical authority.

   
35 
   
Display of notice

Sec. 12

• To contain abstract of section 3 pertaining to prohibition

of employment of children and the provisions for
penalties.

   
36 
   
INTER-STATE MIGRANT WORKMEN (REGULATION OF
EMPLOYMENT AND CONDITIONS OF SERVICE ACT, 1979

Objective

An Act to regulate the employment of Inter-State Migrant

workmen and to provide for their conditions of service and for
matter connected therewith.

Applicability:

Every establishment in which five or more inter-state

migrant workmen are employed or were employed on any day
of the preceding twelve months.

Sec. 2(e) : Inter-State Migrant Workman

Person who is recruited by or through a contractor in

one State under an agreement or other arrangement for
employment in an establishment in another State, with or
without knowledge of the Principal Employer.

Sec. 6

Prohibition against employment of Inter-State Migrant

workmen without registration. No Principal employer should
engage without a certificate of registration in respect of such
establishment issued under this Act.

Sec. 13 : Wage Rates :

In no case be paid less than wages fixed under the

Minimum Wages Act, 1948.

   
37 
   
Sec. 14 : Displacement Allowance :

To be paid by the Contractor at the time of recruitment,

equivalent to 50% of monthly wages payable to him or seventy
five rupees whichever is higher.

Sec. 15 : Journey Allowance

Sum not less than the fare from the place of residence
in his state to the place of work in the other State (for outward &
return journey) and payment of wages during the period of
journey as if he were on duty.

   
38 
   
 BUILDING AND OTHER CONSTRUCTION WORKERS
(REGULATION OF EMPLOYMENT & CONDITIONS OF
SERVICE) ACT, 1996

Applicability

Applied to every establishment which employs' or had

employed on any day of the preceding twelve month, ten or
more building workers in any building or other Construction
Work.

Definition :

2 (d): 'Building and other Construction Work' means the

Construction, alteration, repairs, maintenance or demolition of
or, in relation to, buildings etc. as may be specified in this behalf
by appropriate Government by notification but does not include
any building or other construction work to which the provision of
the Factories Act, 1948 or the Mines Act, 1952 apply.

2 (i) : 'Employer' means the owner thereof, and includes, -

(i) Building or other construction work carried on by the

department of the Govt. without any Contractor, the
authority specified or the Head of the department.

(ii) If carried out by local authority or other establishment

without any contractor, the Chief Executive Officer of
that authority or establishment.

(iii) In relation to a building or other construction work

carried on by or through a contractor, or by
employment of building workers supplied by a
contractor, the Contractor.

   
39 
   
Sec. 7 : Registration of Establishment :

Establishment to which this Act applies on its commencement,

within a period of sixty days from such commencement.

Sec. 12 : Registration of Building workers as beneficiaries :

Every building worker who has completed 18 years of age, but

has not completed sixty years of age, and who has been
engaged in any building or other construction work for not less
than ninty days during the preceding 12 months shall be eligible
for registration as a beneficiary.

Sec. 14 – Cessation as a beneficiary :

On attaining the age of 60 years or when he is not engaged in

building or construction work for not less than 90 days in a year.

Sec. 15 – Register of Beneficiaries :

Employer shall maintain a register in the form prescribed.

Sec. 19:

Prohibition of employment of certain persons in certain

buildings or other construction work : Deaf, Defective vision,
tendency to giddiness shall not be allowed in building or other
construction work which is likely to involve a risk of any
accident.

Sec. 32-27

Drinking water, latrines, urinals, accommodation, crèches, first

aid, canteen etc.

   
40 
   
Sec. 38 : Safety Committee and Safety Workers:

To constitute a Safety Committee wherein five hundred or

more building workers are ordinarily employed and the
employer shall appoint a Safety Officer.

Sec. 39 : Notice of certain accidents :

Any such accident (death or bodily injury) which prevents from

working for a period of 48 hours or more, employee shall give
notice to the appropriate authority.

   
41 
   
 BUILDING AND OTHER CONSTRUCTION WORKERS
WELFARE CESS ACT, 1996

Objective :

An Act to provide the levy and collection of a cess on the cost of

construction incurred by the employees with a view to
augmenting the resources of the Building and other
Construction Workers Welfare Boards constituted under the
Building and other Construction Workers (Regulation of
Employment and Condition of Service) Act, 1996.

Sec. 3 :

Levy and collection of cess at such rate not exceeding two

percent of the cost of construction incurred by an employee.

Sec. 4

Furnishing of returns : As prescribed in manner and time.

Sec. 5

Assessment of Cess : Authority or officer to whom or to which

the return is to be furnished, after enquiry, assess the amount
of cess payable by the employee.

Sec. 10

Recovery of amount due under the Act : Any amount due under
this Act (including any interest or penalty) from the employer
may be recovered in the same manner as an arrear of land
revenue.

   
42 
   
 EMPLOYEES' STATE INSURANCE ACT & THE
SCHEME, 1948

Applicability of the Act & Scheme

• Is extended in area-wise through notification to factories

using power and employing 10 or more persons and to
non-power using manufacturing units and
establishments employing 20 or more persons upto
Rs.10,000/- per month w.e.f. 1.10.2006. It has also been
extended upon shops, hotels, restaurants, roads motor
transport undertakings, equipment maintenance staff in
the hospitals.
Coverage of employees

• Drawing wages (w.e.f. 1.5.2010) upto Rs. 16,000/- per

month engaged either directly or through contractor.

Rate of Contribution of the wages

Employers' – 4.75%
Employees' – 1.75%

Remittance of contribution
• The total amount of contribution (employee's 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
calender month in which the wages fall due.
Benefit to the employees under the Act
• Medical, sickness, extended sickness for certain
disease, enhanced sickness, old age care dependents
maternity, besides funeral expenses, rehabilitation
allowance, medical benefit to insured person and his or
her spouse, medical bonus & physical aids.

   
43 
   
 PAYMENT OF BONUS ACT, 1965

Applicability of Act

Sec. 1

• Every factory wherein 10 or more persons are employed

ith the aid of power or

• An establishment in which 20 or more persons are

employed without the aid of power on any day during an
accounting year.

Components of Bonus

Sec.2 (21)

• Salary or wages includes dearness allowance but no

other allowances e.g. over-time, house rent, incentive of
commission.

Separate establishment

Sec.3

• If profit and loss accounts are prepared and maintained

in respect of any such department or undertaking or
branch, then such department or undertaking or branch
is treated as a separate establishment.

Computation of gross profits

Sec. 4

• For banking company, as per First Schedule.

   
44 
   
• Others, as per Second Schedule.

Computation of available surplus

Sec. 5

• Income tax and direct taxes as payable.

• Depreciation as per section 32 of Income Tax Act

• Development rebate, investment or development

allowance.

Eligibility of Bonus

Sec. 8

• An employee will be entitled only when he has worked

for 30 working days in that year.

Disqualification and Deduction of Bonus

Sec. 9 & 18

• On dismissal of an employee for fraud; or

• Riotous or violent behaviour while on the premises of
the establishment; or
• Theft, misappropriation or sabotage of any property of
the establishment; or
• Misconduct of causing financial loss to the employer to
the extent that bonus can be deducted for that year.

   
45 
   
Payment of Minimum Bonus

Sec. 10

• 8.33% of the salary or Rs.100 (on completion of 5 years

after 1st Accounting year even if there is no profit).

Eligible Employees

Sec. 12

• Employees drawing wages upto Rs. 10,000 per month

or less.

• For calculation purposes Rs. ,500 per month maximum

will be taken even if an employee is drawing up to Rs.
10,000 per month.

Time Limit for Payment of Bonus

Sec, 19

• Within 8 months from the close of accounting year.

Submission of Return

Rule 5

• In Form D to the Inspector within 30 days of the expiry

of time limit under Section 19.

   
46 
   
 MATERNITY BENEFIT ACT, 1961

Objective of the Act

• To protect the dignity of motherhood and the dignity of a

new person's birth by providing for the full and healthy
maintenance of the women and her child at this
important time when she is not working.

Coverage of the Act

Sec.3

• Upon all women employees either employed directly or

through contractor except domestic women employees
employed in mines, factories, plantations and also in
other establishments if the State Government so
decides. Therefore, if the State Government decides to
apply this Act to women employees in shops and
commercial establishments, they also will get the benefit
of this Act. Bihar, Punjab, Haryana, West Bengal, UP,
Orissa and Andhra have done so.

Conditions for eligibility of benefits

Sec. 5

• Women including temporary or unmarried are eligible for

maternity benefits when she is expecting a child and has
worked for her employer for at least 80 days in the 12
months immediately preceding the date of her expected
delivery.

   
47 
   
Conditions for claiming Benefits

Sec.5

• Ten weeks before the date of her expected delivery, she

may ask the employer to give her light work for a month.
At that time she should produce a certificate that she is
pregnant.

• She should give written notice to the employer about

seven week before the date of her delivery that she will
be absent for six weeks before and after her delivery.
She should also name the person to whom payment will
be made in case she can not take it herself.

• She should take the payment for the first six weeks
before she goes on leave.

• She will get payment for the six weeks after child birth
within 48 hours of giving proof that she has had a child.

• She will be entitled to two nursing breaks of fifteen

minutes each in the course of her daily work till her child
is fifteen months old.

• Her employer can not discharge her or change her

conditions of service while she is on maternity leave.

Cash Benefits

Sec. 7 & 8

• Leave with average pay for six weeks before the

delivery.

   
48 
   
• Leave with average pay for six weeks after the delivery.

• A medical bonus of Rs.25, if the employer does not

provide free medical care to the woman.

• An additional leave with pay up to one month if the

woman shows proof of illness due to the pregnancy,
delivery, miscarriage or premature birth.

• In case of miscarriage, six weeks leave with average

pay from the date of miscarriage.

Non Cash Benefits/Privileges

• Light work for ten weeks ( six weeks plus one month)
before the date of her expected delivery, if she asks for
it.

• Two nursing breaks in the course of her daily work, until

the child is 15 months old.

• No discharge of dismissal while she is on maternity

leave.

• No change to her disadvantage in any of the condition of

her employment while on maternity leave.

• Pregnant woman discharged or dismissed may still

claim maternity benefits from the employer.

• Exception : Women dismissed for gross misconduct lose

their right under the Act for Maternity Benefit.

   
49 
   
Leave for Miscarriage and Tubectomy Operation

Sec. 9 & 13

• Leave with wages at the rate of maternity benefit, for a

period of six weeks immediately following the day of her
miscarriage of her medical termination of pregnancy.

• Entitled to leave with wages at the rate of maternity

benefit for a period of two weeks immediately following
the day of her tubectomy operation.

Leave for illness arising out of pregnancy etc.

Sec. 10

• A woman suffering from illness arising out of pregnancy,

delivery, premature birth of child (miscarriage, medical
termination of pregnancy of tubectomy operation) be
entitled, in addition to the period of absence allowed to
hr leave with wages at the rate of maternity benefit for a
maximum period of one month.

Prohibition of dismissal during absence of pregnancy

Sec. 12

• Discharge of dismissal during or on account of such

absence or to give notice of discharge or of dismissal on
such a day that the notice will expire during such
absence, or to vary to her disadvantage any of the
conditions of her service.

• At the time during here pregnancy, if the woman but for

such discharge or dismissal would have been entitled to
maternity benefit or medical bonus etc.

   
50 
   
• Not barred in case of dismissal or gross misconduct.

Forfeiture of maternity benefit

Sec. 18

• If permitted by her employer to absent herself under the

provisions of section 6 of any period during such
authorized absence, she shall forfeit her claim to the
maternity benefit for such period.

• For discharging or dismissing such a woman during or

on account of her absence from work, the employer
shall be punishable with imprisonment which shall not
be less than 3 months, but it will extend to one year and
with fine, not exceeding Rs. 5,000.

Failure of Display Extract of Act.

Sec. 19

• Imprisonment may extent to one year or fine.

   
51 
   
 INDUSTRIAL DISPUTES ACT, 1947

Objective of the Act

• Provisions for investigation and settlement of industrial

disputes and for certain other purposes.

Definitions

Sec.2(j)

• Industry – has attained wide meaning than defined

except for domestic employment.

Sec.3

• Works Committee – Joint Committee with equal number

of employers' and employees representatives for
discussion of certain common problems.

Sec. 4

• Conciliation – is an attempt by a third party in helping to

settle the disputes.

Sec.7, 7A & 7B

• Adjudication – Labour Court, Industrial Tribunal or

National Tribunal to hear and decide the dispute.

   
52 
   
Lay off and Payment of Compensation

Sec.2 (kkk)

Conditions for laying of

• Failure, refusal or inability of an employer to provide

work due to:

- Shortage of coal, power or raw material.

- Accumulation of stocks.
- Breakdown of machinery.
- Natural calamity.

Notice of Change

Sec. 9 A

• 21 days by an employer to workmen about changing the

conditions of service as provided in IV Schedule.

Prohibition of Strikes and Lock Outs

Secs. 22 & 23

• Without giving to the employer notice of strike as

hereinafter provided, within six weeks before striking.

• Within fourteen days of giving such notice.

• Before the expiry of the date of strike specified in any

such notice as aforesaid.

• During the pendency of any conciliation of proceedings

before a conciliation officer and seven days after the
conclusion of such proceedings.

   
53 
   
• During the pendency of proceedings before a Labour
Court, Tribunal or National Tribunal and two months,
after the conclusion of such proceedings.

• During the pendency of arbitration proceedings before

and arbitrator and two months after the conclusion of
such proceedings, where a notification has been issued
under the sub-section (3A) of Section 10A.

• During any period in which a settlement or award is in

operation, in respect of any of the maters covered by the
settlement or award.

Lay Off Compesation

Sec. 25-C

• Payment of wages except for intervening weekly holiday

compensation 50% of total or basic wages and DA for a
period of lay off upto maximum 45 days in a year.

Retrenchment of Workmen Compensation and Conditions

Secs. 25F & 25G

• Workmen must have worked for 240 days.

• Retrenchment compensation @ 15 days' wages for
every completed year to be calculated at last drawn
wages.
• One month's notice or wages in lieu thereof.
• Reasons for retrenchment.
• Complying with principle of 'last come first go'.
• Sending From P to Labour Authorities.

   
54 
   
Prior Permission for Lay Off

Sec. 25-M

When there are more than 100 workmen during preceding 12

months.

Prior Permission by the Government for Retrenchment

Sec. 25-N

• When there are more than 100 (in UP 300 or more)

workmen during preceding 12 months.
• Three months' notice or wages thereto.
• Form QA
• Compensation @ 15 days' wages.

Prohibition of unfair labour practice either by employer or

workman or a trade union as stipulated in Fifth Schedule

Sec. 25-T

• Both the employer and the Union can be punished.

Conditions of service etc. to remain unchanged under

certain circumstances during pendency of proceedings

Sec.33

• Not to alter to the prejudice of workmen concerned the

condition of service.
• To seek express permission of the concerned authority
by paying one month's wages on dismissal, discharge
or punish a protected workmen concerned with the
dispute.

   
55 
   
• To seek approval of the authority by paying one month's
wages before altering condition of service dismissing or
discharging of punishing a workman.

Recognition of Protected Workman

Sec. 33(4)

• One percent of the total number of workman employed

therein subject to a minimum number of five and
maximum of 100 workmen.

   
56 
   
 PAYMENT OF GRATUITY ACT, 1972

Applicability

Sec. 1

• Every factory, mine, oil field, plantation, port, railways,

company, shop, establishment or educational
institutions employing 10 or more employees.

Sect. 2(e)

Employees

• All employees including a teacher irrespective of status

of salary.

Qualifying period

• On rendering of 5 years' service, either termination,

resignation or retirement.

Entitlement

• On completion of five years' service except in case of

death or disablement.

Wages for calculation

Sec. 2(e)

• @ 15 days' wages for every completed year as if the

month comprises of 26 days at the last drawn wages.

   
57 
   
Sec. 4(3)

• Total ceiling – Rs. 10,00,000/-.

Sec. 4(6) Forfeiture of Gratuity

• On termination of an employee for moral turpitude or

riotous or disorderly behaviours.

• Wholly or partially for willfully causing loss, destruction

of property etc.

Rule 4 – Display of Notice

• On conspicuous place at the main entrance in English

language or the language understood by majority of
employees of the factory etc.

Sec. 6 : Rule 6 : Nomination

• To be obtained by employer after expiry of one year's

service, in Form 'F'.

Rule 9 : Mode of Payment

• Cash or, if so desired, by Bank Draft or Cheque.

   
58 
   
 EMPLOYERS' LIABILITY ACT, 1938

Objective of the Act

• The Employers' Liability Act was passed with the

primary object of prohibiting certain defences as
pleaded in suits for damages in respect of injuries
sustained by workmen under common law.

Extension of the Act

Sec. 1(2)

• The Employers' Liability Act extends to the whole of

India.

Definitions

Sec. 2(b)

• Workman : A workman is a person who has

apprenticeship with an employer. This contract of
service or apprenticeship is for manual labour or clerical
work or for any other purpose. This contract may be
made expressly or by implication or orally or in writing.

• Employer : Employer is generally a person who give

employment and directs the manner in which the work is
to be done and exercises control and supervision over
the work done or to be done. The definition of employer
includes (i) any body of persons, whether incorporated
or note (ii) the legal representatives of a deceased
employer. Where the services of a workman are
temporarily lent or let on hire to another person by the
person with whom the workman has entered into a

   
59 
   
 contract of service or apprenticeship, the employer
means such person to whom the services of the
workman are lent or let on hire.

   
60 
   
 FACTORIES ACT, 1948

Applicability of the Act

Sec.2 (ii)

• Any premises whereon 10 or more persons with the aid

of power or 20 or more workers are/were without aid of
power working on any day preceding 12 months,
wherein manufacturing process is being carried on.

Registration & Renewal of Factories

Sec. 6

• To be granted by Chief Inspector of Factories on

submission of prescribed form, fee and plan.

Provisions on Health

Secs. 11 to 20

• Employer to ensure health of workers pertaining to

cleanliness, disposal of wastes and effluents, ventilation
and temperature, dust and fume, overcrowding, artificial
humidification, lighting, drinking water, spittoons.

Safety Measures

Sec. 21 to 28

• Fencing of machinery.
• Work on or near machinery in motion.
• Employment prohibition of young persons on dangerous
machines

   
61 
   
• Striking gear and devices for cutting off power.

Welfare Measures

Secs. 42 to 49

• Washing facilities
• Facilities of storing and drying clothing
• Facilities for sitting
• First-aid appliance – one first aid box (not less than one)
for every 150 workers.
• Shelters, rest rooms and lunch rooms when there are
150 or more workers.
• Creches when there are 30 or more women workers.
• Welfare office when there are 500 or more workers.

Working Hours, Spread Over and Overtime of Adults

Secs. 51, 54 to 56, 59 & 60

• Weekly hours not more than 48.

• Daily hours not more than 9 hours
• Intervals for rest at least ½ an hour on working for 5
hours
• Spread over not more than 10½.
• Overlapping shifts prohibited.
• Extra wages for overtime double than normal rate of
wages
• Restrictions on employment of women before 6 AM and
beyond 7 PM.

   
62 
   
Employment of Young Persons

Secs. 67,68 & 71

• Prohibition ofo employment of young children e.f. 14

years
• Non-adult workers to carry tokens e.g. certificate of
fitness.
• Working hours for children not more than 4½ hrs. and
not permitted to work during night shift.

   
63 
   
 TRADE UNIONS ACT, 1926

Objective of the Act

• To provide for the registration of Trade Union and in

certain respects to define the law relating to registered
Trade Unions.

Registration of trade union

Sec. 4

• Any 7 or more members of a trade union may, by

subscribing their names to the rules of the trade union
and its compliance.

• There should be at least 10% or 100 of the workmen,

whichever is less, engaged or employed in the
establishment or industry with which it is connected.

• It has on the date of making application not less than 7

persons as its members, who are workmen engaged or
employed in the establishment or industry with which it
is connected.

Application for registration

Sec, 5

• Prescribed form with following details:

- Names, occupations and addresses the members' place

of work
- Address of its head office; and
- Names, ages, addresses and occupations of its office
bearers.

   
64 
   
Minimum requirements for membership of Trade Union

Sec.9-A

• Not less than 10% or 100 of the workmen, whichever is

less, subject to a minimum of 7, engaged or employed in
an establishment etc.

Cancelling of registration

Sec. 10

• If the certificate has been obtained by fraud or mistake

or it has ceased to exist or has willfully contravened any
provision of this Act.

• It it ceases to have the requisite number of members.

Criminal conspiracy in trade disputes

Sec. 17

• No office-bearer or member of a registered trade union

shall be liable to punishment under sub-section (2) of
conspiracy u/s120B of IPC in respect of any agreement
made between the members for the purpose of
furthering any such object of the Trade Union.

Disqualification of office-bearers of Trade Union

Sec. 21A

• Has not attained the age of 18 years

• Conviction for an offence involving moral turpitude.
• Not applicable when 5 years have elapsed.

   
65 
   
 MOTOR TRANSPORT WORKERS ACT 1961

Objective of the Act

• To provide for the welfare of motor transport workers

and to regulate the conditions of their work.

Applicability of the Act

Sec. 1

• To every motor transport undertaking employing five or

more motor transport workers or by a notification issued
by the State Government.

Running Time

Sec. 2(1)

• In relation to a working day means the time from the

moment a transport vehicle starts functioning

Registration of motor transport undertaking

Sec.3

• On an application for the registration of a Motor

Transport Undertaking to the prescribed authority.

Canteens

Sec. 8

• Where there are 100 or more workers

   
66 
   
Rest room(s)

Sec.9

• Wherein such workers are to halt at night.

Medical facilities

Sec. 11

• To be readily available at operating centres and halting

points.

First aid facilities

Sec. 12

• To be readily accessible during working hours a first aid

box equipped with prescribed contents.

Hours of work for adolescents

Sec. 14

• Not more than 6 hours a day including rest for ½ hour.

• Not to work between 10 p.m and 6 a.m.

Daily Intervals for rest

Sec. 15

• After 5 hours working for at least ½ hour for an adult

working and to be allowed rest of at least 9 consecutive
hours between the termination of duty on any day and
the commencement of day on the following day.

   
67 
   
Notice of hours of work

Sec. 18

• To be displayed and correctly maintained by the

employers.

Weekly rest

Sec. 19

• A day of rest in every period of 7th day.

Compensatory day of rest

Sec. 20

• Within that particular month.

Payment of wages

Sec. 26

• As per the provisions of the Payment of Wages Act,

1948, extra wages for overtime twice his ordinary rates
of wages

   
68 
   
 CHAPTER III
RETURNS AND REGISTERS UNDER DIFFERENT ACTS

PF ACT EPS' 95

1. Declaration by persons 1. Form – 3 : Consolidated

already employed at the return of Employees
time of notification of the who are entitled and
Fund and including required to become
nomination – Form 2. members of the Pension
fund on the date
2. Employee Contribution Pension Scheme comes
Card – Form 3 A into force.

3. Form 5 : Details of 2. Form – 4 : Return of

employees qualifying to Employees entitled for
become members of the membership of the
Fund for the first time Employees Pension
during the preceding Fund during the month
month along with ________.
declaration in Form – 2.
3. Form 5 – Return of
4. Form 10 – Employees members leaving
leaving service of the service during the month
employer during the of _______.
preceding month,
4. Form 6 – Statement of
5. Form A – Annual contribution for the
Contribution Statement. month of __________.

6. Form 12 A – Statement 5. Form 7 – Contribution

of contribution for the card for the members for
month of ______. the year ______.

   
69 
   
7. PF Inspection Book 6. Form 8 Annual
statement of contribution
for the currency period
from_________.

ESI Maternity Benefit Act,

1. Form 01A : Form of
Annual Information of
Factory (covered under
ESI Act)
2. Form 2 - Addition/
deletion in Family
Declaration form.
3. Form 4 – Identity Card
1961
1. Display of Act under Sec.
19 in Form K
2. Annual return in Form B
and submission on or
before 21st January in
respect of the preceding
year.

4. Form 4 A : Family
Identity Card

5. Form 6 : Register of
employees

Payment of Bonus Act, Equal Remuneration Act,

1965 1976

1. Maintenance of Register Maintain register in relation

to workers in Form- 'D'
(a) Form A - Computation of
allocable surplus
(b) Form B - Set on & set off
of the allocable surplus
(c) Form C – Amount of
bonus due to each
employee

   
70 
   
2. Annual return – Form D -
within 30 days after the
expiry of time limit
(Within eight months of
the accounting year)
Minimum Wages Act,
1948
1. Notices in Form IX-A
containing the minimum
rates of wages fixed
together with extract of
Act + name and address
of the Inspector in
English / language
understood by majority of
workers at the main
entrance.
2. Form – I : Register of
fines
3. Form – III - Annual
Return by Employer on
or before 1st February
4. Form IV - OT register of
workers
5. Form XI – Wage slip
71 
Inter State Migrant
Workmen Act
1. Form X – Particulars in
respect of recruitment
and employment of
migrant workmen
2. Form XI – Return to be
sent by the Contractor –
within 15 days from the
date the migrant
workmen ceases to be
employed
3. Form XII – Register of
contractors (Principal
Employer)
4. From XIII : Register of
workmen employed by
contractor.
5. Form XV: Displacement
& outward journey
allowance sheet.
6. Form XVI : Return
journey allowance
register

BOCW (ROE & COS) Act,
1966
1. Form 1 : Registration No.
under BOCW (ROE &
COS) Act, 1966
72 
7. Form XVII : Muster-roll
8. Form XVIII :Register of
wages
9. Form XIX : Register of
deductions for damage
or loss
10. Form XX : Register of
Fines
11. Form XXI : Register of
advance
12. Form XXII :Register of
overtime
13. Form XXIII : Half yearly
return (in duplicate)
within 30 days of close
of half year
14. Form XXV : Annual
Return of Principal
Employer by 15th Feb.
Building & Other
Costruction Workers
Welfare Cess Act
Rule 4 :
Cess levied to be paid within
thirty days of completion of
2. Notice of stoppage or the Construction of the
reduction of work. Project or within 30 days of
the date on which
Rule 240 : assessment of cess payable
is finalized.
Register of persons
employed as Building Rule 6 :
Workers (Form XV)
Information to be furnished
Rule 241 : by the employee within 30
days of commencement of
Muster roll (XVI); Wage work in Form-I.
register (XVII) for
damage or loss; Register Rule 9 (1) :
of advances (XXI); Notice of stoppage or
Register of Overtime reduction of work.
(XXII)

Rule 242 :

Returns – Annual (XXV) by

15th Feb.

   
73 
   
 CHAPTER IV
DOs and DON'Ts
"For Principal Employer"

1. The establishment in the first instance, must ensure that

they have got a registration certificate from the
competent authority as provided under section 7 of
Contract Labour (Regulation & Abolition) Act, 1970
before proceedings to engage the contract labour.

2. The establishment must ensure that they issue

certificate in Form V to the contractor for obtaining
license as provided under section 12 of the Act.

3. It must be ensured that the Contractor who is employing

more than 20 persons has a valid license issued in his
name by the competent authority as provided under the
Act.

4. The payment of wages to the employees, employed by

the contractor is disbursed to his employees by the
contractor himself or his nominee on or before 7th of
every month and principal employer has to depute his
representative to be present and sign the payment
register in token of having disbursed the salary in his
presence by the contractor.

5. There should not be any supervision and control by the

principal employer in respect of employees employed by
the contractor to fulfill the obligation of the contract.

6. The work for which contract labour is engaged is not of

perennial nature.

   
74 
   
 7. Discipline of the employees of the contractor in the
discharge of duties must be regulated by the contractor
and not by the principal employer.

8. Leave to the employees of contractor must be

sanctioned by the contractor and not by the principal
employer.

9. No advance should be paid by the principal employer to

the Contractor's employees directly. Only contractor
must regulate the same.

10. Maintenance of all types of record in respect of the

employees employed by the contractor should be his
own responsibility and principal employer should not
intervene in such matters.

11. Dictum of the Supreme Court judgment in Hussainbhai's

case (supra) must be adhered to in drafting the
agreement for the contract.

12. If the establishment is covered by the Employees'

Provident Fund and Miscellaenous Provision Act and
the Employee's State Insurance Act, then preference
should be given to those contractors who have their own
code number under these Acts.

13. The establishment must ensure compliance of the

obligation pertaining to the various provisions regarding
amenities and benefits as prescribed under the Act.

14. The establishment must ensure the submission of

annual return to the prescribed authority in the
prescribed form under the Act.

   
75 
   
 15. The preference should be given to a contractor, who
has got the contract in similar concern of the same type.

16. If the contractor has similar type of contract in different

concerned, the he should try to transfer the employee
from one establishment to another establishment.
Hence the contract employees can be transferable.
This is with a view that the contractor should not employ
the contract workmen in the same establishment for not
more than a certain stipulated period.

17. The contractor shall determine the mode, method and

manner of working. The Company shall not interfere in
regard to the same.

18. The contractor shall employ the workforce according to

his requirement but he shall not in any case exceed the
number of workmen shown in the license or do any
other work what is not given in the license.

19. The company shall ensure while making payment to the

contractor that the contractor has paid the employees'
provident fund and ESI contributions deductions both of
employees and of contractor on the time (along with
copy of challan paid).

20. The Company shall check up that the contractor renews

his license from time to time..

   
76 
   
 CHAPTER V

A. INTERNAL AUDIT FORM FOR PF ACT

INTERNAL INSPECTION REPORT

Name of the Establishment :

Name of the Sub-Contractor:
Date of Inspection: Inspected by :

CHECKLIST FOR
EMPLOYEES' PROVIDENT FUND SCHEME

1. Whether contribution payable by Yes / No

the employer / employee at the
rate deposited from day one of
employment
2. No. of employees (a) Actual :
(b) Covered:

3. Do the details tally in wage/muster Yes/No

register
4. Date of payment of PF contribution
of the latest month
5. Whether declaration by the Yes/No
employee and his nominee
obtained in From – 2, duly signed
in Form-2 for sending it to
Commissioner (Cl.33)
6. Whether the employer prepared a Yes/No
Contribution Card in Form-3 /
Form 3A in respect of every
employee in his employment at the
commencement of the scheme

   
77 
   
 7. Whether return sent to Yes/No
Commissioner within 15 days of
the close of each month – Return
in Form 5 – employees qualifying
to become members of the Fund
during the preceding month –
declaration in Form 2 forwarded by
such qualifying employees
{36(2)(a)}
8. Whether list of employees leaving Yes/No
the service of the employer during
the preceding month sent
{36(2)(b)}
9. Whether Inspection Notebook Yes/No
maintained {36(4)}
10. Whether contractor has submitted Yes/No
a statement of recoveries of
contribution in respect of
employees employed by or
through him to the Principal
Employer within 7 days of close of
every month {36(b)}
11. (a) Whether Account Numbers Yes/No
allotted to each qualifying
employees (b) whether employer
communicated the number to each
employee (Cl.37)
12. Whether Payment of contribution Yes/No
make including administrative
charges within 15 days of close of
every month by separate bank
drafts / cheques
13. Whether employer forwarded Yes/No
Monthly Abstract to RPFC within
25 days of close of month,
showing the aggregate amount of

   
78 
   
 recoveries made from the wages
of all members + aggregate
amount contributed by the
employer {38(20}
14. Annual Contribution Statement in Yes/No
Form 6A is sent or not within one
month {38(3)} and retained
duplicate copy
15. Whether Contribution Card Yes/No
maintained and details entered in
respect of employee (40)
16. Whether each member declared Yes/No
nomination in Form-3
17. Whether Annual Statement of Yes/No
members account received from
Commissioner and distributed

Corrective action commitment given by Representative of

Contracting Establishment:

I have understood the non-conformities and I promise to take

corrective action within 10 (ten) days and to submit a
compliance report to Engineer-in-Charge/ HOHR, NTPC

Signature of the Representative Signature of NTPC Representative

of Contracting Establishment

Name : ________________ Name ______________________

Designation:______________ Designation: _________________

   
79 
   
B. INTERNAL AUDIT FOR CONTRACT LABOUR ACT

INTERNAL INSPECTION REPORT

Name of the Establishment :

Name of the Sub-Contractor:
Date of Inspection: Inspected by :

CHECKLIST

1. Whether Labour License Yes/No

obtained

2. If yes, validity of Labour From;_____________

License To : _______________
3. No. of maximum labour to As per license:_______
be deployed Actual : ____________
4. Whether employing more Yes/No
than 20 women
5. If yes, whether crèche is Yes/No
extended as per norms
6. Whether commencement of Yes/No
each notified to the Labour
Authorities within 15 days
7. Date of commencement of
work
8. Whether wholesome Yes/No
drinking water, sufficient
number of latrines / urinals,
washing facilities and first
aid facilities provided within
7 days of commencement of
employment of contract
labour.

   
80 
   
 9. Whether rest room is Yes/No
extended
10. a) Whether rest room has Yes/No
adequate drinking water
facility Yes/No
b) Whether there is
separate rest room for
women
11. Whether canteen provided Yes/No
by contractor (No. of
workmen should be more
than 100) within sixty days
12. Whether changes of food Yes/No
stuffs / beverages etc., are
served on the basis of 'No
Profit – No Loss'
12(a) Whether rates are Yes/No
conspicuously displayed
13. Whether one latrine is Yes/No
provided for every 25 males
13(a) Whether one latrine is Yes/No
provided for every 25
females
14. Whether adequate & Yes/No
separate washing facilities
exist for men / women
15. Whether first aid box is Yes/No
provided (one for every 150
contract labour)
Wages
16. Whether wage period is Yes/No
fixed by the contractor and
intimated
17(a) Whether wages are paid Yes/No
before 7th (if less than 1000
contract labour)

   
81 
   
 17(b) Date of payment of last Yes/No
wages
18(a) Whether wages are paid Yes/No
before 10th (if more than
1000 contract labour)
18(b) Date of payment of last
wages
19 Whether notice showing the Yes/No
wage period and place and
time of disbursement
displayed at the place of
work
19(a) Whether a copy sent to Yes/No
Principal Employer under
acknowledgement
20 Whether Principal Yes/No
Employer's authorized
representative witness the
wages payment
21 Whether the contract Yes/No
labourer required to work for
more than 9 hours in any
day excluding the period of
rest interval, is being paid @
twice his ordinary rate of
wages
22 Whether the Establishment Yes/No
has declared 8 holidays in
the calendar year (including
26th Jan., 15th Aug., 2nd Oct.
1st May before end
November in consultation
with Labourers and copy
sent to Labour Authorities by
5th December.

   
82 
   
 23. When a workman is entitled Yes/No
to Holiday, is required or
allowed to work on any
Holiday, at his option:

(a) paid twice the wages (or)

(b) wages for such day and
avail himself of a
substituted Holiday with
wages on one of the
seven days immediately
before or after the day
on which he so works.
24. Is the worker given one day Yes/No
leave with wages for every
20 days of actual work
performed by him

Registers and Records

25. Whether Employment Card Yes/No
in Form XIV extended to
each worker within 3 days of
employment of the worker
26. Whether the following are
maintained:
(a) Muster Roll – Form XVI Yes/No
(b) Register of Wages – Yes/No
Form XVII or XVIII
(c) Register of deductions Yes/No
for damage or loss –
Form XX
(d) Register of Fines – Form Yes/No
XXI
(e) Register of Advances – Yes/No
Form XXII

   
83 
   
 (f) Register of Overtime – Yes/No
Form XXIII
27. Whether wage slips Yes/No
extended in Form XIX to
workmen at least a day prior
to disbursement of wages
28. Whether thumb impression / Yes/No
signature obtained in the
Register of Wages or Muster
Roll cum Wage Register
29. Whether abstract of rules Yes No
displayed in
English/Hindi/Regional
Language
30. Whether all registers/records Yes/No
required under the Act are
kept in work place (or) within
a radius of 3 km.
31. Whether Half Yearly return Yes/No
in Form – XXIV in duplicate
submitted within 30 days
from close of the half year.

Corrective action commitment given by Representative of

Contracting Establishment:

I have understood the non-conformities and I promise to take

corrective action with 10 (ten) days and to submit a compliance
report to Engineer-in-Charge/ HOHR, NTPC

Signature of Representative Signature of NTPC Representative

Of Contracting Establishment

Name ________________ Name __________________

Designation : ____________ Designation :_____________

   
84 
   
 CHAPTER VI

TIPS TO READ PROVIDENT FUND CHALLAN

While executing contract, one of the thrust areas identified by

NTPC is to ensure regular payment of Provident Fund by the
contractor with respect to his employees. NTPC insists that
each contracting establishment should have the independent
PF Code Number.

In terms of the General / Special Conditions of Contract, the

contractor has to submit PF Challan for previous month along
with RA bills forwarded to Engineer-in-Charge. It is observed
that most of the times, the concerned Executive does not know
the details or the relevance of figures in the PF Challan.

Hence we are detailing as what is to be checked by the EIC to

ensure that the obligations under PF Act are met by the
contracting establishments and there is no problem in future for
the concerned department as well as NTPC.

(i) The Establishment Code should match with PF Code

submitted at the time of award of contract. The
Establishment Code is usually written as AP/xxxx. It
denotes the code has been allotted in the Andhra
Pradesh. In case of Uttar Pradesh it shall be UP/xxxxx
and so one (Refer –(1) on the corner of PF Challan for
easy identification.

(ii) Please ensure that it is paid for the relevant month and
year (Refer- (2).

(iii) Total number of subscribers (Refer – (3) : Total number

of subscribers should be same against all accounts in

   
85 
   
 the challan. In order to ensure that the subscribers
include the personnel working at NTPC site, it is advised
that along with wage register against whom the PF
amount deduction has been made and remitted to the
concerned RPFC, detailing the amount remitted against
each employee and indicating the individual account
number. The individual account number of each
employee shall read as AP/xxxxx (PF Code of the
(oganisation) / zzzzz (Account No. of Individual). In
case, if an organization with multiple units like KBL/
Jyothi have remitted the amount say at Pune / Baroda,
the details of wages paid, PF amount deducted /
remitted, PF A/c Number may be obtained along with
certification that the employees working at NTPC
______ are covered and necessary remittance have
been made. (Refer Compliance Certificate).

For example, in case of NTPC, it shall be read as

E/Dl/4070/zzzzzz

E - Exempted Establishment
DL - Delhi
4070 - Code allotted to NTPC
zzzzz - Individual Account Number

(iv) Total Wage Payment (Refer – (4) : The contracting

establishment / employer has to deduct 12% (present
rate) of the wages and remit to the concerned PF
Authority. The % should be the same in all accounts, in
order to ensure that the exact amount is remitted. It is to
be insisted upon by the concerned executive that the
wage sheet duly signed by the employees of the
contracting establishment is given to NTPC.

The amount so remitted by the contracting

establishment for all employees should tally with the

   
86 
   
 sum of amount deducted against each employee.
Please refer encircled (7)in wage sheet. The amount is
remitted on line.

(v) The PF amount is remitted under different accounts viz.

Account No.1, Account No. 2, Account No. 10, Account
No. 21, Account No. 22. The details of accounts are
enumerated subsequently (Refer-(5).

(vi) In Part-01, there are different heads like Employer's

share of contribution, employee share of contribution,
administrative charges, penal damages, misc payments
etc. (Refer – (6).

(vii) Under Account No. 1, 3.67% of wages is remitted as

employer share of contribution towards Provident Fund.
Whereas 12% of wages is remitted under employee
share of contribution. The amount of employer's share
contribution should tally with the same so deducted
against PF from each individual employee. Please refer
wage sheet and encircled portion (7).

(viii) 8.33% of the total wage is remitted in Account No. 10

towards EPS 95 ( in local parlance Government Pension
Scheme). This amount is only remitted from the
employer's share and no employee share is noticed
against this account ( Refer – (8).

(ix) Account No. 2 is Administrative Charges @ 1.1% of

wages, which is collected by RPFC for running their
establishment from all establishments covered under PF
Act (Refer-(9).

(x) Account no. 21 is against Employee Deposit Linked

Insurance (EDLI) at 0.5% of the wages. (Refer-(10). It
provides for the 'Assurance Benefit' , payable on death

   
87 
   
 of the employee while in service. It is linked to average
balance in the PF Account of the employee.

(xi) Account No. 22 is Administrative Charges @ 0.001% of

wages in respect of EDLI. (Refer – 11).

(xii) Penal damages are paid in cash the establishment does

not remit the PF amounts (employees & employers) /
inspection charges etc., and as indicated by PF
authorities (refer – 12).

(xiii) The depositor should be the Authorised Person of the

company to remit the money.

(xiv) The amount should be deposited on or before 15th of

every month. A grade period of 5 days exist in the
scheme.

(xv) Kindly ensure that the above is followed by all

contracting establishments since we are loading PF in
our estimate and are reimbursing the entire amount to
the contractor as per terms and conditions.

Apart from the above, EIC may keep the photocopies of the
following:

1. Code Allotment Letter from concerned RPFC for

reference.

2. Form-2 (Revised) – for giving nomination for PF and

Pension and details of the members of the family of
each employee.

   
88 
   
 FACTS WHICH EICs SHALL KNOW

1. Members are informed of the balance of their PF

accumulations every year through the Annual Provident
Fund Statement of Accounts (Form-23). Upon receipt of
statement it is possible to cross check the total amount
mentioned therein with that of the monthly challan
produced earlier. Now a days it is available on line.
2. Member can avail advances / withdrawals for marriage,
house construction etc., through From-31.
3. On retirement or leaving the services, PF accumulations
can be withdrawn by Form-19.
4. For premature settlement of PF Accumulations, Two
Months waiting period from date of leaving service is
compulsory.
5. In case of premature death, the Provident Fund is
payable to Nominee's or family members, through Form-
20 immediately.
6. A member of the Provident Fund is also a member of
Insurance Sheme.
7. In case of death of an employee while in service, upto
Rs. 60,000/- (Rupees Sixty thousand only) is payable to
Nominee / Family members, through From-5 IF.
8. No contribution is required to be paid by the employee
for the insurance benefit. On behalf of the employee, the
employer is required to pay the contribution.
9. A member of Provident Fund also acquires membership
under Pension Scheme.
10. No separate amount of contribution is payable by the
employee towards Pension Fund.

   
89 
   
11. The pensionery benefits is not related to quantum of
contribution paid and no individual account is kept for
Pension contribution. Hence no annual statement is
supplied for Pension Account.

12. Pension is based on the service, age and wage of an

employee at the time of his leaving the service.

13. The payment of Pension is guaranteed and assured

even in cases where the employer fails to deposit the
Pension contribution.

14. An employee is eligible for pension with minimum 10

years of pensionable service.

15. The Pension is payable on attaining the age of 58 yeas,

whether he is in service or superannuated.

DETAILS OF FORMS FOR THE USE OF MEMBERS

Form 2 (Revised) - For giving Nomination for

Provident Fund and Pension and
details of the members of the
family.

Form 13 (Revised) - To transfer the Provident Fund

Account on joining another
establishment.

Form 31 - To avail advance / withdrawal for

various purpose.

Form 19 - To withdraw Provident Fund

amount by a Member

   
90 
   
Form 20 - To withdraw Provident Fund
account of a deceased member
by a nominee / family members

Form 23 - Provident Fund Annual Statement

of Account to be supplied by the
Commissioner every year through
employer to the subscribers

Form 10-C (EPS) - To receive Scheme Certificate /

Withdrawal Benefit

Form 10-D (EPS) - To claim Pension under

Employees' Pension Scheme'95

Form 5 (IF) - To claim Assurance Benefit under

Employees' Deposit Linked
Insurance Scheme, 1976

   
91 
   
 TIPS TO READ ESI CHALLAN

Employees' State Insurance Scheme of India (ESI Scheme) is

applicable to NTPC, wherever the area is notified. Having read
tips of reading PF Challan, it is more easier to read ESI
Challan. ESI Scheme is mainly financed by contributions raised
by employees covered under the scheme and their employers,
as a fixed percentage of wages.

1. The establishment code should match the ESI code

submitted at the time of award of the contract [Refer –
ESI(1).

2. Please ensure that it is paid for the relevant month and

year [Refer –ESI(2)].

3. The employer will deposit both employees' and

employers' contribution as per specific rates within 21
days of the following month. Remittance is on line now.

4. Total wages paid shall be referred in the wage sheet just

life in PF [Refer – ESI(3)].

5. Employees' contribution shall be 1.75% of the wages.

The EIC should collect the details of Account Code
under ESI under which remittance is made against the
employee. [Refer – ESI(4)].

6. Employer's contribution is 4.75% of the wages for which

no deduction from employee shall be made by the
employer since it is loaded in NTPC estimate and is
being reimbursed. Refer – ESI(5)].

7. The depositor should be the authorized person of the

company to remit he money.

   
92 
   
EIC may keep a photo copy of Code Allotment Letter issued to
the contractor by concerned ESI Office for reference.

SOCIAL SECURITY BENEFITS TO THE EMPLOYEES

1. Medical Benefit for self & dependents

2. Sickness Benefit (Cash)
3. Enhanced Sickness benefit (Cash)
4. Maternity Benefit
5. Disablement Benefit (Cash)
6. Dependants' Benefit (Cash)
7. Other benefits such as Funeral expenses; Vocational
Rehabilitation; Free supply of physical aids & appliances;
Preventive Health Care Services; Confinement Allowance

   
93 
   
RIGHTS AND DUTIES OF EMPLOYERS

- The employer will collect temporary identity card from

the Local Office concerned followed by permanent photo
identity cards and pass them on to the employees
concerned.

- The employer will maintain an Accident Book and submit

accident reports to the Local Office, involving insured
worker(s) on the job, within 24 hours of an accident.

SAFEGUARDS FOR INSURED EMPLOYEES

a) Right to receive payment of any benefit under the Act

that shall not be transferable or assignable.

b) Cash benefits payable under the act are not liable for
attachment or sale in execution of any decree or order
of any court.

c) Employer shall no dismiss, discharge or reduce the

wages or otherwise punish a covered employee during
the period he / she is in receipt of Sickness Benefit or
Maternity Benefit etc.

d) By reason of his liability to pay his share of contribution

under the ESI Act, no employer shall directly or indirectly
reduce the wages of a covered employee.

e) Right to register their grievances / complaints at any

level for immediate redressal.

f) Right to approach ESI Court against any action /

decision of the Medical Board etc.

   
94 
   
g) Right to approach ESI Court against any action /
decision of the Medical Board etc.

Actions to be taken by the Employer / Employee

1. Registration of family members by the every individual

person in Form-1A. Subsequent to furnishing all
particulars, the employer should submit the same to the
appropriate office within 10 days.

2. Change in family members shall be intimated by

individual person in Form-2 within 15 days to the
employer / authority.

3. Appropriate Office shall arrange identity card in Form-4

for each person who is insured and it shall include the
particulars of the family members entitled to various
benefits under Regulation No. 95A. (EIC should collect
such cards and keep a copy in records for ready
reference).

   
95 
   
   
96 
   
   
97 
   
   
98 
   
 CHAPTER VII

SAMPLE FORMATS

Date

Employee Name

Dear

Appointment Letter

We are pleased to appoint you in our organization as

____________ subject to the following terms and conditions:

1. Your contract will commence from__________ during

which you will render services to our Client at their
premises subject to the terms and conditions of this
appointment letter executed by you on
_______________ and in accordance to the instructions
received by you from us or any other authorized person
and will be bound by our and the client's rules and
regulations.

2. Your salary will be as per the Annexure attached. The

salary and the reimbursements, if any will be paid by
__________________________________________ by
(Contractor's name)
way of cheque or transfer to your bank account.

3. You hereby agree to be liable for the following terms

and conditions:

(i) Fully perform the services, in a professional

manner, at the Client's location during the term
of the work assignment.

   
99 
   
 (ii) During the terms of the work assignment, render
services exclusively to the client and such
performance shall not be inconsistent with any
obligation you may have to other third parties.

(iii) Not engage in any conduct which is detrimental

to the interest of the Client or ___________-
______________________________________.
(Contractor's name)

(iv) Extend all cooperation to the Client's employees,

consultants, representatives, etc. and do all such
things as may be necessary and comply with all
terms of the Appointment letter so as to
effectively undertake the work.

(v) Report and be present at the designation

location during the working hours assigned to
you and abide by the rules and regulations as
required by the Client.

(vi) Comply with safety, health and other rules and

regulations of ___________________________
(Contractor's Name)
and our Client that you have been made aware
of.

(viii) During the course of your contract, you can be

transferred to a location within the territory of
India as and when required by ______________
(Contractor's Name)
for executing the services provided herein.

   
100 
   
4. During the term of the appointment, either party may
terminate the Work Assignment Letter by issuing 30
days notice in writing or payment thereof.

5. Termination of this letter of appointment shall not effect

the obligations of the parties that have been incurred
prior to such termination and _____________________
(Contractor's name)
shall promptly settle all your dues after making the
applicable deductions.

6. You agree to defend, indemnify and hold

__________________________________ or the Client
(Contractor's name)
harmless from any and all claims, damages, liability,
attorneys fees and expenses on account of your failure
to satisfy any of your obligations under this work
assignment letter or for misconduct or for violation of
any law or creation of any legal liability by you.

7. This appointment letter shall be governed by the laws of

India.

8. You will be entitled to an employer's contribution of

Provident Fund to the extent of 12% of your basic salary
and applicable ESI contribution. You will also be
covered under Medical and Accident Insurance and will
be entitled to all other statutory benefits whichever is
applicable during the contract period. It is hereby
clarified that if you fail to submit the ESIC, PF, Gratuity
nomination forms together with any other document as
required under the applicable labour legislations.
______________________________ shall not incur
(Contractor's Name)
any liability with regards to any Claims under the said
applicable labour legislations.

   
101 
   
9. In addition to the terms contained herein, your
relationship with _______________________________
(Contractor's Name)
may be subject to such other additional terms and
conditions as may be communicated to you from time to
time in writing by ________________________ and you
(Contractor's Name)
hereby agree to have read and clearly understood the
terms of employment provided in the Service Rules,
which is attached herein.

We at _____________ would like to create an environment and

(Contractor's Name)
culture committed to co-operation, quality and responsiveness
that permeates every activity.

Please return the copy of the Offer Letter enclosed after affixing
your signature at the appropriate place on the Office Copy in
token of your having read, agreed, fully understood and
accepted the terms and conditions of appointment. In case we
do not receive your acknowledgement copy within a period of
15 days from the date of joining, your assignment at
_______________ with the acceptance of your first salary from
(Contractor's Name)
______________ will be conclusive proof of your acceptance in
(Contractor's Name)
accordance of terms and conditions.

ENDORSEMENT

I hereby confirm acceptance of the above assignment, on the

terms and conditions stipulated therein.

   
102 
   
For _____________________
Contractor's Name

____________________
Authorized Signatory

___________________
Signature

_____________________

Date :

Name

Salary Annexure

   
103 
   
 COMPLIANCE CERTIFICATE

We hereby undertaking that the following statutory

payment has been remitted to respective Authorities in respect
of ________________________

Contractor's Name/UPL
which includes our associates deputed to client named below
for the month of ______________

Name of the Client : NTPC ___________________

(Project/Station)

Client ID : (Optional) _________________

   
104 
   
 ILLUSTRATIVE EXAMPLE

Provident Fund
Inspec
No. of Employee Employ Employer' EDLI
PF EPS Cap tion
Associ 's PF VPF er's PF s PS EDLI Admi Total
Wages Wages Charg
ates (12%) (3.67%) (8.33%) n
es
29 209601 187114 25153 0 9578 15575 2306 948 19 53578

ESIC Professional Tax

No. of ESI Employee Employer Total No. of Amount
Associates Wages Contribution Contribution Associates
[1.75%] [4.75%)
21 215411 3779 10240 14019

The above details are true and correct to the best of our knowledge, belief and information.

For ___________________________
(Contractor's Name / UPL)

Authorised Signatory

   
105 
   
 SAMPLE INDEMNITY BOND

This indemnity bond is made on 21st Decmber, 2009 by M/s S.

Chenna Reddly Plot No. 303, Fridaus Kaveri Court, Mettuguda,
Hyderabad (hereinafter called the Contractor) which expression
shall include its successor and its assigns) in favour of M/s
NTPC Ltd. incorporated under the Companies Act, 1956 having
its Registered Office at SCOPE Complex, Core No. 7,
Institutional Area, Lodhi Road, New Delhi – 110 003
(hereinafter called the NTPC, which expression shall include its
successors and assigns.)

Whereas NTPC has awarded a contract for the Construction of

Railway formation in filling/cutting, roads, drains and its ancillary
works for proposed augmentation of Railway infrastructure for
Stage II to S. Chenna Raddy (hereinafter call the S. Chenna
Reddy, which expression shall include its successors and
assigns) a who in turn awarded the Construction of Railway
formation in filling/cutting, roads, drains and its anciliary works
for proposed augmentation of Railway Infrastrcucture for Stage
II vide its LOA & WO No. RITES/BBSR/NTPC-
Simhadri/EW/2009/1811, dated 10th December, 2009
(hereinafter called the CONTRACT).

Whereas the responsibility of the aforesaid contractor for

execution of the aforesaid work is absolute, any action/omission
of their sub contractor as aforesaid contractor at the helms of
the affairs for execution of the work and therefore the said
contractor shall remain liable for discharge of his obligation for
compliance arising out of executing the job in so far as it relates
to all the labour laws and other laws and statutory provisions in
force from time to time and as applicable to them, so that NTPC
is not put any liability for their Contractors' and sub-contractors'
act and omission.

   
106 
   
NOW THEREFORE, this indemnity bond witnessed as follows:

That for the purpose of performance of the contract, the

CONTRACTOR here undertakes to indemnify an shall keep
NTPC indemnified against all liabilities towards the payment /
statutory deductions, compensation (if any), other allowances
as required to be paid under any law in fore/agreement, not
only top the labourers engaged by him but also to the labour
engaged by the sub-contractor more specifically under the
provision of payment of Wages Act, Minimum Wages Act,
Employees Compensation Act, EPF and MP Act, ESI Act,
Contract Labour (R&A), Act etc. in the performance of the said
contract.

Further the contractor agrees to undertake the liabilities towards

the sub-contractor on a late date, even after completion of the
aforesaid contract.

That the contractor is obliged and shall remain absolutely

responsible to discharge his liabilities towards compliance with
all the labour laws for the performance of the contract being
executed by him and by his sub-contractors.

That understood and specifically agreed to by the contractor

that non-observance of the obligations under this indemnity
bond by the contractor shall inter-alia constitute a criminal
breach of trust on the part of the contractor for all intents and
purposes including legal/penal consequences thereof.

That this Indemnity bond is irrevocable and if at any time

financial loss occurs to NTPC, on account of any action/inaction
regarding the labour laws and other laws statutory provisions in
force from time to time and as applicable to the contractor/sub-
contractor, then the contractor agrees to compensate NTPC for
such financial loss. The contractor binds himself and
undertakes to compensate such loss and shall pay the amount

   
107 
   
for financial loss to NTPC, without any demur, reservations or
protest. This is without prejudice to any other right or remedy
that may be available to NTPC, against the contractor under
this contract or Indemnity bond.

Now the condition of this bond is that, if the contractor duly and
punctually complies with all the terms and conditions of this
bond to the satisfaction of NTPC, then the above bond shall be
void, but otherwise it shall remain in full force and virtue.

In witness whereof the contractor has hereunto set its hand

through its authorized representative under the common seal of
the contractor the day, month and year above mentioned.

Witness & address particulars (Signature of the Contractor)

1. Signature : ______________ Name

Name : ______________ Address: _____________:

Adress : _______________ ____________________

_______________________ _____________________

2. Signature : _____________ Tel No./Mob.No. ______

_______________________ _____________________

   
108 
   
 INFORMATION ABOUT THE CONTRACTOR FOR
ISSUE OF FORM-V

S. Description Details
No.
1. Name of the Contractor
/ Firm
1 Permanent & Complete
(a). Postal Address
1 (b) Local Address
2. Name of the work
3. LOA No. & Date
4. Value of the Contract
5. Duration of the contract From_________to_______
(or)_______ months
6. Name of the
Representative of the
Contractor/ Firm/ Site
In-Charge
6(a) Telephone Numbers (O) ____________
(R) _____________
(Mob.)___________

7. Max. no. of contract On regular { } + On

labour proposed to be contract { }=
deployed on any day Total { }
during the execution of
the contract including USK________, SSL:_______.
contractor's regular SK______
employees Highly SK/Sup:_______

8. Details of PF PF Code No. __________

Issued by the RPF
Commissioner ________-

   
109 
   
9. Details of ESI ESI Code No. __________

Obtained from :_________

10. Group Insurance Insurance Policy

No.___________
Name of Insurance
Co._________
Validity: From ______ to
_______
No. of Labourers covered :
________

11. Service Tax No.

12. PAN No.
13 Whether the contractor Yes/No
intend to employ
Migrant Labour as
defined in Inter-state
Migrant Workers Act?

If yes, furnish the

details such as (a)
Name of the contractor
employee
Father's Name (c)
skilled/ Unskilled
(d) Male/Female in a
separate annexure
apart from
submitting
application for
license under
Inter-state Migrant
Workers Act &
Rules.

   
110 
   
 This report is to issue Form-V under the Contract Labour
(R&A) Act to enable us for obtaining license. I also
undertake the responsibility on behalf of the contractor/
agency to obtain the license and also maintain all other
required provisions and formalities contemplated not only
under this Act but also as provided in all other relevant
statures including Inter-State Migrant Workers Act etc.

Company Seal : Signature of the Contractor

Date :

Recommendations by the HOD:

The details given by the contractor are certified. The

establishment engaged for the job indicated as above is
inside the plant / outside the plant premises.

Date : Signature of HOD

   
111 
   
 UNDERTAKING BY THE CONTRCTOR

We, ___________________________, a contractor of

NTPC, undertake to maintain all records etc., to be
maintained under the following Acts.

A. Under Contract Labour (R&A) Act, 1970 and the Central

Labour (R&A) Rules (Central) 1971 and Amendment
thereof from time to time viz.

1. Notice of Commencement / Completion of Contract work

(Foorm VI-A)
2. Register of Workmen Employed – Form XII
3. Employment Card – Form XIV (Rule 76)
4. Register of advances – Form XXII – Rule 789i) 9(a)(II)
5. Half yearly return (to be submitted latest by July for the
half year Jan. _____to June____________and latest by
Jan.________ for the half year July________ to
Dec.______________).
6. Display of Notice Board in English / Hindi / ( as given
below) with Abstract of CL(R&A) Act & Central Rules
(English / Hindi).
a) Name of the Contractor :
b) Name of the Principal Employer : NTPC
Limited _________
c) Minimum Rate of wages fixed
USK:__________ , SSK : _______
d) Normal Hours of Work :
e) Wage period :
f) Date of payment :
g) Place & Time of disbursement of wages:
h) Weekly rest :
i) Date, time & place of payments of unpaid
wages:

   
112 
   
 j) Name & address of Inspector : S/Shri

1.
2.
3.

(Signature
of the
Contractor)

B. The Minimum Wages Act 1948 and the Minimum

Wages notified by the Competent Authority under
this Act and Records viz.,

1. Muster Roll (Form-V)

2. Register of Wages (Form-X)
3. Register of Fines (Form-D)
4. Register of Deduction of Damages or Loss
(Form-II)
5. Register of D.T. (Form IV)
6. Wage slips (Form XI) Rule 21(4)

C. EPF & MP Act 1952 and MPF Scheme 1952 and the
Employees' Pension Scheme, 1995

D. Employees' Compensation Act, 1923

E. Payment of Wages Act, 1936

F. Maternity Benefit Act, 1961

G. Payment of Bonus Act, 1965

H. Industrial Disputes Act, 1947

I. ESI Act, 1948

   
113 
   
 J. Equal Remuneration Act, 1976

K. Interstate Migrant Workmen Act, 1979

L. The Child Labour (P&R) Act, 1986

M. Payment of Gratuity Act, 1972

And all other statutory Acts/Provisions applicable to

Contract Labour

(Signature of the Contractor

Name : _________________

Designation: ______________

Company's Seal

   
114 
   
 CHECK LIST WHILE FORWARDING CONTRACTOR'S
APPLICATION FOR PERMANENT GATE PASSES O&M
CONTRACTS

Name of the Package :

LOA No. & Date :

Name of EIC / Dept. :

No. of workers deployed :

1. Whether Contractor has obtained Labour License : Yes; No

Dated:

2. Whether proof of the following enclosed (copies)

a) Group Insurance : Yes/No

b) PF Code Allotment Letter : Yes/No
c) ESI Code Allotment Letter : Yes/No
d) Service Tax Code Allotment Letter : Yes No
e) Pan Code Photocopy : Yes/No

3. Whether clearance from Safety obtained after : Yes/No

Induction training

4. Whether Medical Certificate of all Contract : Yes for __

Workers enclosed workers

5. Whether birth certificate of all contract : Yes for

Enclosed __ workers

   
115 
   
6. Whether valid T&P certificate submitted to : Yes/No
EIC

7. Whether Bank A/c Nos. of worker submitted : Yes/No

8. Whether contractor has brought Muster Card : Yes/No

With in-time / out-time & entered details in
Employee Register (Form XIII)

9. Whether temporary and permanent address : Yes/No

Incorporated in the application

10. Remarks
__________________________________________________

Sign. Employee who verified Sign of EIC

Verified at HR Sign:

Name Name

Emp. No. Emp. No.

   
116 
   
 LIST OF CLAUSES TO BE INCORPORATED IN O&M
CONTRACTS
S. No. Proposed & Finalised Clauses
1.0 • The contractor shall submit an application form
with requisite details for issue of Form-v through
EIC before commencement of work as per the
sample.
• On receipt of the required information at HR,
Employee Relations Section/ Contract Labour
Management Cell shall issue Form V which shall
be submitted by the contracting establishment to
appropriate Government as notified from time to
time by HR Department for issue of license.
• Subsequent to issue of Labour License by the
appropriate Government Authority, photocopy of
the same shall be provided to OHR Deptt. / EIC
for their record and reference.
• At no time, contracting establishment shall apply
for more number of gate passes than the number
of labour for which the License is obtained.

2. • The Contractor shall submit proof of Group

Insurance/ PF Code/ ESI Code/ Service Tax
Code and PAN allotted to him under the relevant
Acts to HR/ EIC before commencement of work.

3.0 • Initially the contractor shall be permitted to

deploy their staff and contract workers on
temporary gate pass for a period of 7 days for
which the application shall be routed through EIC
in triplicate. The contractor shall take action for
permanent gate pass within these 7 days
including clearance from Safety Department after
initial induction training.

   
117 
   
 • Medical certificate for each worker has to be
submitted by the agency at the time of Safety
Induction Training (SIT).
• Valid T&P test certificate to be submitted to
EIC at the time of SIT for allowing them inside
the Plant. Electrical T&Ps shall be tested and
certified by Elect. Maintenance Department with
sticker.
• The duration of temporary pass is only for the
SIT which can be maximum seven (7) days.
Immediately after SIT, the agency should obtain
permanent gate passes and then start the job.

4.0 • The contractor shall remit the monthly wages to

the Bank Account of the employee and submit
the proof of transfer of amount to EIC / HR.
Further, the contractor has to issue pay slips for
each month to the contract workers.

5.0 • Each contractor while employing a worker shall

record IN-TIME & OUT_TIME in the Muster Card
/ Register to establish the actual time of working
of the employee.

6.0 • In order to ensure statutory compliance of PF &

ESI, payment of Minimum Wages, each
contractor shall submit copy of PF / ESI Challan
along with Muster and Wage Register and
details of PF & ESI account of the individual
worker for the preceding month to be EIC before
release of RA bill. The copies of same shall also
be submitted to F&A / HR Department as per the
sample Compliance Certificate while seeking
release of bill/renewal of the gate passes every
month to F&A / once in three months to HR for
records to answer queries from Statutory

   
118 
   
 Authorities. At the end of financial year,
contractor should also distribute Annual PF
Statement – Form 23 too the workers after
obtaining it from the concerned RPFC. Copies of
Annual Statements so disbursed shall also be
submitted to EIC/HR closure of the contract and
release of SD / Final Bill.

7.0 • Each contractor at the time of preparation of

permanent gate pass incorporate temporary and
permanent address and also give an undertaking
about the character and antecedents of the
worker along with Bio-data Form (this is to
ensure that no child labour is engaged as per SA
8000 requirement). In case it is not available, the
contractor shall submit an Affidavit by the
concerned worker regarding proof of his age.
The application shall be forwarded through EIC
to HR Department for onward transmission to
CISF for issue of the gate pass.

8.0 • Workers deployed in NTPC canteen as well as in

the canteens of contracting establishments shall
undergo compulsory medical check up at lease
once in a year, copy of which shall be submitted
to EIC.

9.0 • In all the contracts, Principal Employer shall

have the right to deposit the Workmen's
Compensation in case of a contractor does not
settle the same within seven days of its
becoming due and deduct from the RA bills of
the Contractor without any further
correspondence.

   
119 
   
10.0 • It shall be the responsibility of the contractor to
absorb the burden of extra payment to contract
workers an account of rise in minimum wages /
ceiling of bonus, allowances etc., notified by
any Statutory Authority and Contractor shall
have no extra claim on this account with NTPC
except in cases where specific provision for
reimbursement of Statutory Wages is available
in Tender Document and subsequent Purchase
Order.

11.0 • Preference shall be given by the contractors to

PAPs/ Land Losers/ Locals from neighbouring
villages while employing labourers. 50% of the
labourers to be deployed in unskilled category
shall be reserved for the above category.

12.0 • ESI card for the contract workers shall be

provided by the contractor within 30 days of
employment. Copies of the card shall be
submitted to HR / EIC for reference etc. In case
the same is extended, EIC shall have the
discretion to withhold certain amount till such
time compliance is reported.

   
120 
   
 PERFORMA OF CERTIFICATE REGARDING LABOUR
PAYMENTS AND STATUTORY REQUIREMENTS TO BE
FURNISHED BY CONTRACTOR.

(TO BE ISSUED BY THE CONTRACTOR)

CERTIFICATE NO. CCP-10

NAME OF PACKAGE

LETTER OF AWARD/
CONTRACT No.

NAME OF CONTRACTOR

PROJECT

This is to certify that we have made all labour payments

including PF Liabilities in respect of the above mentioned
LOA/Contract and no other payments in this regard is pending
from us.
Further we confirm that all statutory requirements have been
complied with by us and in case any default is reported against
us, we shall be solely responsible for the same.

Date:

   
121 
   
Place: New Delhi

(SIGNATURE)

(NAME)

(DESIGNATION)

(COMPANY SEAL)

   
122 
   
 PERFORMA OF “NO DEMAND CERTIFICATE”
BY CONTRACTOR

(TO BE ISSUED BY THE CONTRACTOR)

CERTIFICATE NO. CCP -11

NAME OF PACKAGE

LETTER OF AWARD/
CONTRACT No.

NAME OF CONTRACTOR

PROJECT

We, M/s (Contractor) do hereby acknowledge

and confirm that we have received the full and final payment
due and payable to us from NTPC Ltd. In respect of our
aforesaid LOA/Contract PO No.
____ including amendments, if any,
issued by NTPC Ltd., to our entire satisfaction and we further
confirm that we have no claim whatsoever pending with NTPC
Ltd., under the said Contract.

Notwithstanding any protest recorded by us in any

correspondence, documents, measurement books, and/or final
bills etc., we waive all our right to lodge any claims or protest in
future under this contract.

   
123 
   
We are issuing this “NO DEMAND CERTIFICATE” in favour of
NTPC Ltd. with full acknowledge and with our free consent
without any undue influence, misrepresentation, coercion etc.

Date:

Place: New Delhi

(SIGNATURE)

(NAME)

______
(DESIGNATION)

(COMPANY SEAL)

For Any suggestions/improvements please mail to dsrao03@ntpc.co.in

References :
1. Industrial Law - Sh. P.L. Malik
2. Labour Laws - Sh. H.L. Kumar

   
124