What is Industrial Relations?

Objectives and Maintenance of industrial peace and avoidance of Provide an opportunity to the workers to
approaches? industrial strife. participate in management and decision making
Industrial relations may be defined as the Development and growth of industrial democracy. process
relations and interactions in the industry Objectives of IR: Raise productivity in the organisation to curb the
particularly between the labour and management The primary objective of industrial relations is to employee turnover and absenteeism.
as a result of their composite attitudes and maintain and develop good and healthy relations Avoid unnecessary interference of the
approaches in regard to the management of the between employees and employers or operatives government, as far as possible and practicable, in
affairs of the industry, for the betterment of not and management. the matters of relationship between workers and
only the management and the workers but also of Establish and foster sound relationship between management.
the industry and the economy as a whole. workers and management by safeguarding their Socialise industrial activity by involving the
The term industrial relations explains the interests. government participation as an employer.
relationship between employees and Avoid industrial conflicts and strikes by developing Improvement of economic conditions of workers.
management which stem directly or indirectly mutuality among the interests of concerned State control over industrial undertakings with a
from union-employer relationship. parties. view to regulating production and promoting
The main aspects of industrial relations can be Keep, as far as possible, strikes, lockouts and harmonious industrial relations.
identified as follows: gheraos at bay by enhancing the economic status Socialisation and rationalisation of industries by
Promotion and development of healthy labour — of workers. making the state itself a major employer.Vesting
management relations. of a proprietary interest of the workers in the
industries in which they are employe
Approachs to Industrial Relations : Pluralist Approach Collective Bargaining refers to the discussion and
Industrial conflicts are the results of several socio- Marxist Approach negotiation between the employer and the
economic, psychological and political factors. Sociological Approach employees on the terms of employment, including
Various lines of thoughts have been expressed Gandhian Approach the working environment, conditions of
and approaches used to explain his complex Psychological Approach employment, shift length, work holidays, vacation
phenomenon. Human Relations Approach time, sick leave, and health care benefits, as well
Systems Approach as compensation based items like basic pay,
Unitary Approach Collective Bargaining? Types and objectives? overtime pay and retirement benefits. Collective
bargaining normally takes place between ensures the long-term relationship between it helps in avoiding interruptions, strikes, go slow
members of corporate management and labor employer and employee that is mutually and other crises in industry.
union leaders, who are elected by workers to beneficial. Avoid Third Party Intervention
represent them and their interests. Collective Concessionary Bargaining: In this type of It eliminates the entry of third parties between
bargaining is initiated when employee contracts bargaining, the union sacrifices some benefits to workers, and management by setting a system of
are up for renewal or when employers make bail out the employer during the stressed industrial democracy. A prompt and fair system of
changes to the workplace or contracts. economic situation, which benefits the employees handling grievances will boost morale in the
Types of Collective Bargaining: in the long run. industry.
It can be classified into five major types – Objectives of Collective Bargaining:
Distributive Bargaining: In this type of negotiation Promote industrial democracy What is workers participation in management?
process, one party benefits at the expense of Collective bargaining is a pragmatic and Workers participation in management refers to
others. It discusses redistribution of profit sharing democratic method of regulating the terms and the participation of the workers in the decision-
to increase wages, bonuses, or financial benefits. conditions of employment. It provides a method making process of the organization. This has an
Integrative Bargaining: In this type of bargaining, for the regulation of conditions of employment by incredibly positive impact on the mental and
the agreement is reached so that both the those directly concerned. psychological health of the workers, and they are
participating sides tend to benefit – a win-win Improve employer-employee relationship associated with the organization.
situation. In other words, both parties consider Collective bargaining leads to mutual Workers’ participation in management is an
each other’s needs and concerns. understanding. The employers gain a greater essential ingredient of Industrial democracy. The
Productivity Bargaining: In this type of bargaining, insight into the problems and aspirations of the concept of workers’ participation in management
the negotiations revolve around productivity and workers while employees become more aware of is based on Human Relations approach to
pay. The two parties agree to certain changes that the economic and technical factors involved in Management which brought about a new set of
promise to boost productivity in exchange for industrial management which helps to improve values to labour and management. Traditionally
higher wages. the employer-employee relationships. the concept of Workers’ Participation in
Composite Bargaining: This type of negotiation Settle disputes Management (WPM) refers to participation of
emphasizes various factors not directly related to It provides for the efficient and smooth operation non-managerial employees in the decision-making
pay but rather focused on employee welfare and of the plant It promotes stability and prosperity as process of the organization.
job security. It
Workers’ participation in management implies
mental and emotional involvement of workers in
the management of Enterprise. It is considered as
a mechanism where
workers have a say in the decision-The philosophy
underlying workers’ participation
stresses:democratic participation in decision-
making;maximum employer-employee
collaboration;minimum state
intervention;realisation of a greater measure of
social justice;greater industrial efficiency;
andhigher level of organisational health and
effectiveness.
It has been varyingly understood and practised as
a system of joint consultation in industry; as a
form of labour management cooperation; as a
recognition of the principle of co-partnership, and
as an instrument of industrial democracy.
Consequently, participation has assumed different
forms, varying from mere voluntary sharing of
information by management with the workers to
formal participation by the latter in actual
decision-making process of management.
Characteristics:
1. Participation implies practices which
increase the scope for employees’ share of
influence in decision-making process with
the assumption of responsibility.
2. Participation presupposes willing
acceptance of responsibility by workers.
3. Workers participate in management not as
individuals but as a group through their
representatives.
4. Worker’s participation in management
differs from collective bargaining in the
sense that while the former is based on
mutual trust, information sharing and
mutual problem solving; the latter is
essentially based on power play, pressure
tactics, and negotiations.
5. The basic rationale tor worker’s
participation in management is that
workers invest their Iabour and their fates
to their place of work. Thus, they contribute
to the outcomes of organization. Hence,
they have a legitimate right to share in
decision-making activities of organisation.
Objectives of Workers Participation in
Management
The objectives of workers’ participation in
management are as follows:
To raise level of motivation of workers by
closer involvement.
To provide opportunity for expression and
to provide a sense of importance to
workers.
To develop ties of understanding leading to
better effort and harmony.
To act on a device to counter-balance
powers of managers.
To act on a panacea for solving industrial
relation problems.
Specific of Purpose of Workers'
Participation
1. It helps in managing resistance to change
which is inevitable. For the growth and
development of industry, changes have to
be welcomed, otherwise the organization
will stagnate and be left behind. If the need
for change is jointly felt by all partners of
2. production its acceptance can be high.
Workers' participation in change strategy
can facilitate acceptable solutions with a
view to secure effective and smooth
implementations of decisions.
3. . Workers' participation can encourage
communication at all levels. Since both
partners of production are involved in the
decision-making there will be fewer
 changes of distortion and/ or failure in
communicating the decision.
4. Joint decision- making ensures the there
will be minimum industrial conflict an
economic growth can be free form
distracting strife.
5. Workers' participation at the plant level
can be seen as the first step to establishing
democratic values in society at large.
What is meant by labour legislation? Types
and objectives?
The term "labour legislation" or "labour laws"
is used to denote that body of laws which deal
with employment and non-employment
wages, working conditions, industrial relations,
social security and labour welfare of
industrially employed persons.The origin and
growth of labour legislation may be ascribed
mostly to the development of organised
industry where a large number of workers
including women and children are employed
under conditions which tend to be detrimental
to their health, safety and welfare and against
which they arc often unable to protect
themselves.
Types and objectives:
Objectives: and the association of labour in management
To improve the service conditions of industrial of industry
labour so as to provide for them the ordinary Types:
amenities of life, and by that process Protective and employment legislation
To bring about industrial peace which could in Social security legislation
its turn accelerate productive activity of the Regulatory legislation
country resulting in its prosperity.
The prosperity of the country, in its turn, helps What are six fundamental rights?
to improve the conditions of labour. The social Fundamental Rights at Work:
and economic uplilftment of the labour is The ILO Declaration on Fundamental Principles
important for securing industrial peace which and Rights at Work and its Follow-up, adopted in
is essential to increase the national 1998, aims to ensure that social progress goes
productivity hand in hand with economic progress and
Labour has a vital role in increasing development. It covers four principles and rights:
productivity, and management has to help Freedom of association and the right to collective
create conditions in which workers can make bargaining;
their maximum contribution towards this The elimination of forced and compulsory labour;
objective. In free India, the labour movement The elimination of discrimination in the
and the trade unions should be in a position to workplace; and
assume larger responsibilities. One of the main The abolition of child labour.
tasks in the Five Year Plans is to evolve Freedom of association and the right to collective
practical ways in which they can make an bargaining
increasing contribution to national Forced labour
development and national policy. The growth Discrimination
of the public sector provides opportunities for Child Labour
working out new concepts of labour relations Right to equality
Right to freedom
Right against exploitation, The ILO has played a significant role in promoting International Labour Organization (ILO) –
Right to freedom of religion, labour and human rights. It had held a significant Structure
Cultural and educational rights, position during the Great Depression (1930s) for The basis of the ILO is the tripartite principle. The
Right to constitutional remedies. ensuring labour rights. ILO comprises the International Labour
It played a key role in the decolonization process Conference, the Governing Body, and the
What is ILO. Objectives and structures? and in the victory over apartheid in South Africa. International Labour Office.
The ILO was born as a result of the peace The organization got the Nobel Peace Prize in International Labour Conference:
conference at the end of World War I at Versailles 1969, for its efforts to improve peace amongst the The progressive policies of the ILO are set by the
on April 19, 1919. Being an original signatory of classes, and for promoting justice and fair work International Labour Conference.
the treaty of peace, India became member of ILO for the workers. The Conference is an annual event, which
in 1919 Itself In fact, ILO is the only international International Labour Organization (ILO) Objective happens in Geneva, Switzerland. The conference
organisation that survived theSecond World War The ILO is the only tripartite U.N. agency. The ILO brings together all the representatives of the ILO.
even after dissolution of its parent body ‘the is a meeting point for governments, workers and Function: It is a panel for the review of the
League of Nations’. Its mainconcern is to make the employers of ILO’s member States to set labour important issues regarding labour.
world know that world peace is subject to be standards, improve upon policies and create Governing Body:
affected by unjust conditions of its labour. Thus, programs that promote decent work for people. The Governing Body is the executive body of the
ILO deals with international labour problems. The four strategic objectives at the heart of the International Labour Organization.
The ILO was established as an agency for the Decent Work agenda are: The governing body meets in Geneva. It meets
League of Nations following World War I. To develop and effectuate standards, three times annually.
It was established by the Treaty of Versailles in fundamental principles, and fundamental rights at The Office is the secretariat of the Organization.
1919. work. It is composed of 56 titular members, and 66
Its founders had made great strides in social To ensure that men and women have equal access deputy members.
thought and action before the establishment of to decent work while enhancing opportunities for Functions:
the organization itself. the same. Makes decisions regarding the agenda and the
It became the first specialised agency of the To magnify the coverage and effectiveness of policies of the International Labour Conference.
United Nations (UN) in the year 1946. social protection for everyone. It adopts the draft Programme and Budget of the
To strengthen Tripartism and social dialogue. Organization for submission to the Conference.
Election of the Director-General. The main objectives of the Indian Factories Act, The Factories Act, 1948 is a beneficial legislation.
International Labour Office: 1948are to regulate the working conditions The aim and object of the Act is essentially to
It is the permanent secretariat of the International innfactories, to regulate health, safety welfare, safeguard the interests of workers, stop their
Labour Organization. and annual leave and enact special provision in exploitation and take care of their safety, hygiene
Functions: It decides the activities for ILO and is respect of young persons, women and children and welfare at their places of work. It casts
supervised by the Governing Body and the who work in the factories. various obligations, duties and responsibilities on
Director-General.  Working Hours the occupier of a factory and also on the factory
The ILO member States hold periodically regional  Health manager. Amendments to the Act and court
meetings to discuss the relevant issues of the  Safety decisions have further extended the nature and
concerned regions.  Welfare scope of the concept of occupier, especially vis-a-
Each of the ILO’s 183 Member States has the right  Penalties vis hazardous processes in factories.
to send four delegates to the Applicability of Factories Act, 1948
Conference: two from government and one each The Act is applicable to any factory whereon ten What does the Act say about the health and
representing workers and employers, each of or more workers are working, or were working on safety of workers within a factory?
whom may speak and vote independently. any day of the preceding twelve months, and in Every factory shall be kept clean. Accumulated dirt
any part of which a manufacturing process is shall be cleared daily; floors of every workroom
What is factories act, write down the health, being carried on with the aid of power, or is shall be cleaned every week; factories shall have
safety, welfare? ordinarily so carried on, or whereon twenty or effective means of drainage; all doors, window
The Factories Act, 1948 is a social legislation more workers are working, or were working on frames and other wooden or metallic frames shall
which has been enacted for occupational safety, any day of the preceding twelve months, and in be painted or varnished once in five years; all
health and welfare of workers at work places. The any part of which a manufacturing process is walls shall be painted or varnished every 14
objective of the Act is to regulate the conditions being carried on without the aid of power, or is months; adequate ventilation, temperatures and
of work in manufacturing establishments coming ordinarily so carried on; but this does not include humidity shall be maintained in every workroom;
within the definition of the termb'factory' as used a mine, or a mobile unit belonging to the armed effective measures shall be taken to prevent
in the Act. forces of the union, a railway running shed or a workers from inhaling injurious dust and fumes;
Objective of Factories Act ,1948 hotel, restaurant or eating place. and no room in any factory shall be overcrowded
Importance of Factories Act, 1948 to an extent that is injurious to workers’ health
All factories shall have arrangements and a board of conciliation. This conciliation machinery dispute or conflict. Arbitration comprises of
sufficient supply of drinking water, as well as is at liberty to either take note of the dispute or settling debate through intercession by the
sufficient and conveniently suited latrines and apprehend dispute on its own or when outsider delegated by the legislature. The law
urinals. approached by a party. gives the mediation to be directed by the Labour
The Act contains provisions for fencing parts of Court of Inquiry: Court, Industrial Tribunal of National Tribunal.
machinery which may be dangerous for workers, A court of enquiry is different from a Board of prevention machinery and settlement machinery
and for working near machinery in motion. It Conciliation. While the Board’s basic objective is The preventive machinery has been set up with a
states that no young person shall be allowed to, to promote the settlement of an industrial view to creating harmonious relations between
or required to, work at any dangerous machine dispute, a court of enquiry is primarily fact-finding labour and management so that disputes do not
unless they have received sufficient training to do machinery that aims at inquiring into and arise.
so, and are adequately supervised by a person revealing the causes of an industrial dispute. The eight types of machinery for prevention and
who has knowledge and experience of the Voluntary Arbitration: settlement of industrial disputes are as follows:
machine. This form of voluntary arbitration became a Works committees
popular method a settling differences between Conciliation officers
Industrial Dispute Act? Write about prevention workers and management due to the advocacy of Boards of conciliation
machinery and settlement machinery? Mahatma Gandhi, who had himself applied it Court of enquiry
Industrial Disputes Act, 1947 provides for four extremely effectively and successfully in the Labour courts
major industrial dispute settlement machinery: Textile Industry of Ahmedabad. However, Industrial Tribunals
Conciliation voluntary arbitration received legal identity only National Tribunal
Court of Inquiry in 1956 when the Industrial Disputes Act, 1947 Arbitration.
Voluntary Arbitration was amended in order to include a provision
Adjudication relating to it. Trade union Act:- Registration of trade union?
Conciliation: Adjudication: Trade Unionism has made its headway owing to
The Industrial Disputes Act, 1947 provides for A definitive solution for the settlement of growth of industrialisation and capitalism. Trade
conciliation, and can be utilised either by the industrial disputes is its reference to arbitration by Unionism asserts collectively the rights of the
appointment of conciliation officers; permanently a labour court or tribunals when conciliation fails workers. In industrially advanced countries trade
or for a limited period or via the constitution of a to achieve a settlement with respect to the unionism has made a great impact on the social,
political and economic life. India, being an some of the applicants, but not exceeding half of The underlying purpose of offering a bonus is to
agricultural country, trade unionism is restricted the total number of persons who made the distribute the benefit received by the company to
to industrial areas and it is still in a stage of application, have ceased to be members of the the employees. This added perk helps improve
growth. Trade Union or have given notice in writing to the employee morale and productivity. It also
The Indian Trade Unions Bill, 1925 having been Registrar dissociating themselves from the encourages them to efficiently work towards their
passed by the Legislature received its assent on application. goals, thereby helping the company reach newer
25th March, 1926. It came into force on 1st June, REGISTRATION.- heights.
1927 as the Indian Trade Unions Act, 1926 . By The Registrar, on being satisfied that the Trade Bonus Pay is an additional pay given to an
section 3 of the Indian Trade Unions Union has complied with all the requirements of employee on top of his or her regular earnings. It
(Amendment) Act, 1964 (38 of 1964) the word this Act in regard to registration, shall register the is used by many organizations as recognition or
"Indian" has been omitted and now it is known as Trade Union by entering in a register, to be regard to employees or a team that has achieved
THE TRADE UNIONS ACT, 1926 (16 of 1926). maintained in such form as may be prescribed the significant goals. Bonus Pay is also offered to
REGISTRATION OF TRADE UNIONS particulars relating to the Trade Union contained improve employee morale, motivation, and
APPOINTMENT OF REGISTRARS in the statement accompanying the application for productivity. Your basic salary and bonus
MODE OF REGISTRATION .- registration. opportunities together make
[(1) Any seven or more members of a Trade Union That is why you need to understand how they
may, by subscribing their names to the rules of Payment of Bonus:- Write down the criteria of relate to one another.
the Trade Union and by otherwise complying with payment of bonus? Applicability of Payment of Bonus Act
the provisions of this Act with respect to Payment of Bonus: The Payment of Bonus Act 1965 is applicable to all
registration, apply for registration of the Trade INTRODUCTION factories and companies who have 20 or more
Union under this Act. Bonus payments are additional pay given to employees employed anytime with them during
(2) Where an application has been made under employees apart from their salary. It is given by an accounting year. Also, as per the act, the bonus
sub-section (1) for the registration of a Trade the employers as a remuneration for their should be awarded on the basis of profit earned
Union, such application shall not be deemed to dedication towards the company and work, which by the company or the productivity of an
have become invalid merely by reason of the fact in turn helped the company achieve its business individual.
that, at any time after the date of the application, goals. If the number of employees in the company
but before the registration of the Trade Union, registered under this act drops below 20, they are
still required to pay a bonus. The act states that a When the allocable surplus exceeds the minimum Eligibility for Gratuity Payment
minimum bonus of 8.33% and a maximum bonus bonus, which was set at 8.33% payable to the To get the gratuity payment, an individual needs
of 20% of wages can be awarded as a bonus to employee, Section 11 states that the employer to fulfill the below criteria:
employees. must pay the maximum bonus instead of the An individual should qualify for superannuation
Criteria of payment of bonus: minimum bonus. The following formula is used to An individual must have retired from his/her job.
An employee drawing at least a monthly salary of determine the maximum bonus: An individual has resigned from the services of the
Rs 21,000/- and has served at least 30 days during The highest of the two is used to compute the company after remaining employed with it for at
an accounting year in the company is qualified for maximum bonus: least five years.
the bonus payment. Employee's salary 7000 per month In case of the death of the individual, or if one has
If an employee is not eligible for the statutory become disabled due to some accident or
bonus payment, but if the employer wishes to Payment of Gratuity:- who is eligible? Calculation sickness.
reward him with a bonus, it can be granted as ex- of Gratuity? Calculation of Gratuity:
gratia. Gratuity is a benefit that is payable under the The components and the formula to calculate
Minimum bonus Payment of Gratuity Act 1972. Gratuity is a sum of gratuity is given below. The amount of gratuity
Previously, the maximum bonus paid was 20% of money paid by an employer to an employee for also depends upon the years for which an
the monthly salary, or Rs 3500. The minimum services rendered in the company. But, gratuity is individual has served a company and his/her last
bonus payout was set at 8.33% of Rs 3500 per paid only to employees who complete five or drawn income. If, N = Years (number) x that one
month, or Rs 100, whichever was greater. The more years with the company.It is an amount that serves in a company
monthly calculation ceiling of Rs 3500 has been is paid by an employer to his/her employee in B = Last drawn salary (basic) with DA
increased to Rs 7000 as per the Payment of Bonus return of the services given by him/her to the So the
Bill passed in 2015, “or the minimum salary for company. However, the benefit of gratuity is Gratuity = N*B*15 / 26
the scheduled employment, as determined by the offered to those employees who have been
competent associated with the company for a minimum of Payment of Wages Act:- authorized deduction?
Government” (whichever is higher). As a result, five years. In this way, gratuity can INTRODUCTION
depending on the organisation's success, the cost be perceived as a gesture of gratitude by a With the growth of industries in India, problems
of bonus payouts could be doubled. company towards its employees against the relating to payment of wages to persons
Maximum bonus services employed in industry took an ugly turn. The
Industrial units were not making payment of penalty for malicious and vexatious claims. The Deductions for house-accommodation supplied by
wages to their workers at regular intervals and Act does not apply to persons whose wage is Rs. the employer or by government or any housing
wages were not uniform. The industrial workers 24,000/-or more per month. The Act also provides board,
were forced to raise their heads against their to the effect that a worker cannot contract out of Deductions for such amenities and services
exploitation. any right conferred upon him under the Act. supplied by the employer as the State
The Payment of Wages Act, 1936 regulates Authorized deduction: Government or any officer,
payment of wages to employees (direct and At the time of payment of the wage to employees, Deductions for recovery of advances connected
indirect). The act is intended to be a remedy employer should make deductions according to with the excess payments or advance payments of
against unauthorized deductions made by this act only. Employer should not make wages,
employer and/or unjustified delay in payment of deductions as he like. Every amount paid by the Deductions for recovery of loans made from
wages. employee to his employer is called as deductions. welfare labour fund,
Object of the Payment of Wages Act, 1936 The following are not called as the deduction Deductions for recovery of loans granted for
The Payment of Wages Act regulates the payment Stoppage of the increment of employee. house-building or other purposes,
of wages to certain classes of persons employed in Stoppage of the promotion of the employee. Deductions of income-tax payable by the
industry and its importance cannot be under- Stoppage of the incentive lack of performance by employed person,
estimated. The Act guarantees payment of wages employee. Deductions by order of a court,
on time and without any deductions except those Demotion of the employee Deduction for payment of provident fund,
authorised under the Act. The Act provides for the Suspension of the employee Deductions for payments to co-operative societies
responsibility for payment of wages, fixation of Deductions approved by the State Government,
wage period, time and mode of payment of Deduction made by the employer should be made Deductions for payments to a scheme of
wages, permissible deduction as also casts upon in accordance with this act only. The following are insurance maintained by the Indian Post
the employer a duty to seek the approval of the said to be the deductions and which are Office
Government for the acts and permission for which acceptable according to this act.Fines, Deductions made if any payment of any premium
fines may be imposed by him and also sealing of Deductions for absence from duty, on his life insurance policy to the Life Insurance
the fines, and also for a machinery to hear and Deductions for damage to or loss of goods made Corporation with the acceptance of employee,
decide complaints regarding the deduction from by the employee due to his negligence,
wages or in delay in payment of wages,
What is Maternity benefit?
The Maternity Benefits Act, 1961 aims at
regulating employment of women employees all
over the country. The act provides 12 weeks as
the maximum period for which any working
woman shall be entitled to maternity benefit. She
can avail this benefit as 6 weeks up to and
including the day of her delivery and 6 weeks
immediately following the day of her delivery.
The Maternity Benefit Act was amended in 2017
to increase maternity leave entitlement from 12
weeks to 26 weeks for the first two children for
our 65 crore women. The amendments were a
recognition that reversing the decline in women
labour force participation it dropped to 27% in
2017 from 35% in 1990 was a social, political and
economic imperative.
Applicability of the Act
The Act applies to:
Every factory, mine or plantation (including those
belonging to Government),
An establishment engaged in the exhibition of
equestrian, acrobatic and other performances,
irrespective of the number of employees, and
Every shop or establishment wherein 10 or more
persons are employed or were employed on any
day of the preceding 12 months.
Eligibility & Conditions for Claiming Benefits pregnancy, delivery, miscarriage, or premature
The Act lays down that any women employed, birth. (Section 10)
whether directly or through any agency, for wages In case of miscarriage, 6 weeks leave with average
in any establishment is eligible to claim maternity pay from the date of miscarriage(Section 9)
benefits if she is expecting a child and has worked
for her employer for at least 80 days in the 12 What is ESI benefits?
months immediately preceding the date of her The Employees’ State Insurance Act, 1948 is one
expected delivery. (Section 5)A woman looking of the most important laws that provide social
forward to maternity benefits could ask the security. It contains six kinds of ESI benefits that
employer to give her light work for a month. Such injured employees can avail. All of these benefits
request should be made atleast 10 weeks before must arise in the course of employment in order
the date of her expected delivery. At that time she to enable workers to access them.
needs to produce a certificate confirming her ESI Benefits
pregnancy. Section 46 of the Act describes all benefits that an
Also she needs to give a written notice to the injured employee can avail. It is important to note
employer about 7 weeks before the date of her that a worker can avail these benefits in the
delivery regarding her absence period pre and course of employment only. Section 2(8) says that
post delivery. (Section 5). an employment injury is a personal injury that an
Cash Benefits employee suffers. Such injury must be the result
Leave with average pay for 6 weeks before and 6 of an accident or occupational disease that arises
weeks after the delivery. out of employment.
Medical bonus of at least Rs. 1000 extending to Apart from benefits related to injuries and
Rs. 20000 if the employer is unable to provide free sickness, some ESI benefits can arise after
medical care to the women employee.(Section 8) maternity as well. The ESI Corporation provides
(Amended on 15 -04-2008) some compensation and financial support to
Additional leave with pay for upto 1 month on employees during these periods.
production of proof, revealing illness due to
The following are some ESI benefits that In order to avail this sickness benefit, a worker This compensation is generally 90% of the dead
employees can avail under the ESI Act must pay his contribution for 78 days out of 6 employee’s wages in the form of monthly
Medical benefit months. Hence, he cannot seek this benefit if he payments.
Sickness benefit contributes for less than 78 days. 5. Disablement benefits
Maternity Bnefit 3. Maternity benefit In case an employee suffers some disablement
Dependants benefits All female insurable employees can avail due to an employment injury, he can seek
Disablement benefits maternity benefits under the Act in cases of disablement benefits. Such disablement may be
Other benefits pregnancy or confinement. either temporary or permanent.
1. Medical benefit Confinement, in this case, means labour which In the case of temporary disablement, the
Every insurable employee under the Act gets results in the birth of a living child. It can also compensation is generally 90% of the wage
medical benefits the day he becomes an mean birth after 26 weeks of pregnancy, whether amount until the disablement continues. The
employee. This benefit extends to his family the child is living or not. employee can claim this benefit irrespective of
members as well. This medical benefit has no This maternity benefit is generally payable to whether or not he paid his contribution.
ceiling in terms of expenditure on healthcare. employees for three months. It may, however, be As far as permanent disablement is concerned,
Hence, the ESI Corporation takes care of all extendable for one more month depending on the compensation amount depends on 0n the
treatment expenses as per its rules. medical advice. extent of the injury. The Medical Board first
Apart from general healthcare benefits, retired The compensation amount in such cases is the full determines the extent of the employee’s loss of
and permanently disabled workers also get an wage amount of the employees. This is payable earning capacity and then decides it.
annual premium of Rs. 120. This benefit extends only if the employee makes a contribution for 70 6. Other benefits
to the spouses of the workers as well. days in the preceding year. Apart from these five basic ESI benefits, an
2. Sickness benefit 4. Dependants benefits insurable employee can avail the following
Insurable employees under the Act can draw ESI benefits extend not only to the employees but miscellaneous benefits also:
some cash compensation in case they fall sick. to their dependents as well in case of the Funeral expenses: The dependents of a deceased
This compensation is generally 70% of their wages employee’s death. Such death, however, must employee receive Rs. 10,000 to perform his last
during the period of sickness for a maximum of 91 occur in the course of an employment injury or an rites.
days in a year. occupational hazard. Vocational/physical rehabilitation: This is
generally payable to permanently disabled
employees. They can avail of this benefit for for any injuries they have suffered during an
undergoing vocational and physical rehabilitation. accident. Earlier this Act was known as the When calculating your workers' compensation
Old age medical care: This is payable for Workmen Compensation Act, 1923. When the benefits, keep in mind the following:
employees retiring on superannuation or under employer is not liable to pay compensation. The date of injury determines the compensation
VRS/ERS. Even persons who leave employment The computation of compensation under the Act rate.
after suffering a permanent injury and their is done as per provisions on Section 4 of the Act:In Compensation rates are based on gross earnings.
spouses can avail this benefit. The compensation case of accidents resulting in death: an amount The calculation varies depending on how a person
amount here is generally Rs. 120 per month. equal to fifty per cent. of the monthly wages of is paid, as defined in Alaska Statute 23.30.220(a)
the deceased multiplied by the relevant factor; or and 23.30.395(22)
Workmen compensation benefits and an amount of Rs 1,20,000, whichever is more; The spendable weekly wage is gross weekly
calculations? If the accident results in permanent total earnings minus payroll tax deductions.
Introduction disablement: an amount equal to 60 per cent. of Employment
Every employee needs a secured job and wants to the monthly wages of the injured employee Underemployment, an employee is one who
get compensation for the expenses he has multiplied by the relevant factor; Rs 1,20,000, works under the employer and has to work as per
incurred. This is a requirement that needs to be whichever is more. the terms of the company or the employer.
fulfilled by the company whether it is small scale As per the new rule notified by the government, Personal injury
or large scale. After all, a company’s success Rs 15,000 will be considered as wage for A personal injury can be compensated only in
depends on its employees. Therefore, the calculating compensation under the Act. some circumstances. Injury sustained by the
protection of employees’ and their safety is a top To use the calculator: employee must be a physical injury. Example- If a
priority of a company. This article is all about how Select the Type of Benefit (see description below) person is discriminated on the basis of:
much Enter the date of your work occupational injury or Age
compensation is given, under what conditions, illness (enter as mm/dd/yyyy) Sex
who is entitled to claim compensation and a lot Enter your gross weekly wage (see description of Sexual Orientation
more. gross earnings below) Transsexual person
The “Employees Compensation Act, 1923” is an Enter your marital status at the time of injury If a person is having a disability
Act to provide payment in the form of Enter the number of qualified dependents Religion and belief
compensation by the employers to the employees (include yourself in the calculation) Colour, Nationality
Pregnancy and Maternity leave PF contribution is made by both the employees helps in saving a huge amount of money over a
Marriage or Civil Partnership and the employer. The contributions get long period.
accumulated in the provident fund in the name of It can help an employee financially during an
What is provident fund? the employee. The contribution of the employer is emergency.
A provident fund is an investment fund that is 12% of the basic wage plus DA (Dearness It helps in saving money at the time of retirement
jointly established by the employer and employee Allowance). and helps an individual maintain a good lifestyle.
to serve as a long term savings to support an Objectives of EPFO EPFO Services
employee upon retirement. It also represents job Given below are the main objectives of the EPFO: Some of the services offered by the EPFO are
welfare benefits offered to the employee. To ensure every employee has only one EPF mentioned below:
PF stands for Provident Fund. It is a scheme for account. Helpdesk for Inoperative
salaried employees to invest during work life and Compliance must be facilitated easily. Online withdrawal of EPF
enjoy the benefits after retirement. It is a Make sure organisations follow all the rules and International workers can generate a Certificate of
compulsory, government-managed retirement regulations set up by the EPFO on a regular basis. Coverage.
savings strategy for employees, who can To ensure that online services are reliable and to Monthly returns for exempted
contribute a part of their savings towards their make improvements in their facilities. Online transfer of of EPF
pension fund, every month. The entire process is For all member accounts to be accessed online Establishments can register
monitored by EPFO (Employees Provident Fund easily. Online payments of of PF
organization). Any organization that has more Claim settlements to be reduced from 20 days to Missed call and SMS service
than 20 employees is entitled to PF and must 3 days. Claim status and passbook
register with the EPFO. Promotion and encouragement of voluntary Grievances
In 1952, the PF (Provident Fund) or EPF scheme compliance.
wa s introduced under the Employee’s Provident EPF Benefits
Fund and Miscellaneous Act. All the rules and Given below are the benefits of the EPF scheme:
regulations are defined by the Employee It helps in saving money for the long run.
Provident Fund Organisation. The EPFO’s activities There is no requirement to make a single, lump-
are managed by the Ministry of Labour and sum investment. Deductions are made on a
Employment. monthly basis from the employee’s salary and it