Employee’s Compensation Act 1923

The main objective behind implementation of the Employee’s Compensation Act, 1923 was
to provide payment by employers to employees in the form of compensation for any loss or
injuries suffered by employees in an accident. At the time of enactment this act was referred
to as Workmen Compensation Act but later on it was renamed as Employee’s
Compensation Act, 1923 on 18th January, 2010
The reason behind this is that now employees in clerical capacity are also entitled for
compensation.

For any organization or company employees are considered to be the most asset and a
valuable resource. They play an integral role in success of a company. Their major or key
function is to achieve the desired goals in a company. In return they do expect certain kind
of security from the employers in the form of security of their jobs and compensation for
any sort of expenses incurred by them for the success of the organization. An employee
ensures the success for an organization by meeting deadlines for work on time and ensuring
customer satisfaction.

The Act is applicable to all such people who are employed as cook in hotel, liquified
petroleum gas, restaurants using power etc.

Partial disablement: According to section 2(1)(g) of Employee�s Compensation

Act, 1923 it can be classified into categories i.e.:

1. Temporary partial disablement:

It is a situation in which earning capacity of an employee decreases due to

temporary disablement to perform his duty in the course of employment.

2. Permanent partial disablement:

In such a situation the earning capacity of employee deemed to be reduce

permanently in every course of employment that he was capable of taking at that
point of time.
 Employee State Insurance Act 1948

The Employees State Insurance Act 1948 by the Parliament was the first major social
security legislation for workers in India. The ESI Act 1948 covers certain health-related
incidents the workers are exposed to, such as maternity, sickness, permanent or temporary
disablement, or death due to employment injury, which can result in the loss of earning
capacity. The Employees State Insurance Act 1948 functions under the Ministry of Labour
& Employment.

Objectives of the Act

∙ Social security provisions made in the ESI Act 1948 protect the employees against
financial distress arising out of events of disablement, sickness, or death due to
employment injury.
∙ Employees State Insurance provides cash compensation for the above cases.
∙ Employees’ State Insurance Corporation (ESIC) administers Employees State
Insurance Act 1948. ∙ Employees’ State Insurance Corporation (ESIC) is a statutory
corporate body that is established under the employee’s state insurance act in India.

Benefits of Employees State Insurance Act 1948

The benefits of the Employees State Insurance Act 1948 are as follows:

∙ Medical Benefit- medical care will be given to the person and his family members.
There will be no ceiling on the expenditure.
∙ Maternity Benefit- for pregnancy is payable for 26 weeks as well under the ESI Act 1948,
which can be extended up to one month on medical advice.
∙ Sickness Benefit- it will be given in the form of cash compensation at the rate of
70 percent of wages. ∙ Dependants Benefit- this is paid in the form of
monthly payments to the dependants in cases where the death occurred due to
occupational hazards or employment injury.
∙ Disablement Benefit
o Temporary disablement benefit (TDB) at the rate of 90% of wage is payable so
long as the disability continues.
o Permanent disablement benefit (PDB) is paid at the rate of 90% of wage in the
form of monthly payments. It depends on the extent of the loss.
∙ Other Benefits of Employees State Insurance Act 1948 o Funeral Expenses
o Physical Rehabilitation
o Old Age Medical Care
 o Confinement Expenses
o Vocational Rehabilitation

Eligibility of the Act

∙ Under section 1(5) of the Employees State Insurance Act 1948, the ESI scheme has been
extended to hotels, shops, cinemas, and restaurants, including road-motor transport,
preview theatres and newspaper establishments where employees are 10 or more.
∙ Again under section 1(5) of the Employees State Insurance Act 1948, the ESI scheme has
been extended to educational institutions and private medical employing more than 10
or more persons.
∙ The ESI scheme is not notified in 526 districts in 35 UT and states, which includes 346
complete districts, 95 district headquarters, and 85 districts.

Employee’s Provident Fund act

The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 provides for the
institution of provident funds, pension fund and deposit-linked insurance fund for
employees in factories and other establishments.

Eligibility

It extends to the whole of India except the State of Jammu and Kashmir.

Employees' Provident Fund and Miscellaneous Provisions Act 1952 is applicable to: ∙
Every establishment which is engaged in any one or more of the industries specified in
Schedule I of the Act or any activity notified by Central Government in the Official Gazette.
(List of Industries/Establishments) ∙ Employing 20 or more persons. ∙ Cinema Theatres
employing 5 or more persons

Objective

The Constitution of India under "Directive Principles of State Policy" provides that the
State shall within the limits of its economic capacity make effective provision for securing
the right to work, to education and to public assistance in cases of unemployment, old-age,
sickness & disablement and undeserved want.

Application

The Employees' Provident Fund Organization (EPFO) is a statutory body of the

Government of India under the Ministry of Labour and Employment. It administers a
compulsory contributory Provident Fund Scheme, Pension Scheme and an Insurance
Scheme. It is one of the largest provident fund institutions in the world in terms of
members and volume of financial transactions that it has been carrying on.
 Calculation of PF

▪ Employees' Basic Pay + DA: Rs 15000.

▪ Employee contribution towards EPF: 12% x 15000 = Rs.1,800/-
12% Employer contribution will be divided into 2 parts i.e. 8.33% towards Employees
pension scheme and rest 3.67% towards Employee Provident fund. 1.
▪ But employer contribution towards provident fund is Rs.15,000 x 3.67% =
Rs.550.5/-
▪ Remaining 8.33% towards Employee pension scheme (EPS) that is 15,000/-x 8.33%
= Rs.1249.5/-.

CHANGE OF WAGE LIMIT {Sec 2(f) OF EPF SCHEME 1952} Period Wage limit per
month 01.11.1952 to 31.05.1957 Rs. 300/- 01.06.1957 to 30.12.1962 Rs. 500/- 31.12.1962 to
10.12.1976 Rs. 1,000/- 11.12.1976 to 31.08.1985 Rs. 1,600/- 01.09.1985 to 31.10.1990 Rs.
2,500/- 01.11.1990 to 30.09.1994 Rs. 3,500/-
01.10.1994 to 31.05.2001 Rs. 5,000/- 01.06.2001 to 31.08.2014 Rs. 6,500/- 01.09.2014
onwards Rs. 15,000/

Payment of Gratuity Act 1972

Payment of Gratuity Act,1972 is the act which is developed for the welfare of retired
employees. It provides life security to retired employees by providing a certain amount after
retirement to live their lives peacefully after retirement. The objective of the Payment of
Gratuity Act, 1972 is to provide a
gratuity to retired employees. This act understands that it is essential to give a gratuity to
employees as an asset for future security. It provides gratuity to the employees who work in
the oil fields, plantations, mines, ports, railways, etc.

Applicability of the act

In this gratuity, the wages of 15 days every month or a wage of 6 months at one time is
provided to the employee after retirement. Although, employees will get this facility,
irrespective of the reason behind retirement. Whether he gets retired because of the physical
disability or superannuation rules, he will get the gratuity, either monthly or yearly. In the
beginning, the employees who worked in industries could take advantage of the Payment of
Gratuity Act,1972. Still, employees related to any field can benefit from the laws of this
act.

The Objective of the Payment of Gratuity Act,1972

Payment of Gratuity Act,1972 was launched by the Parliament of India on 21 August 1972,
but it came into practice on 16 September 1972. The Payment of Gratuity Act 1972 provides
 government assistance to retired employees to live their lives satisfactorily and peacefully.
It ensures that the employees do not face financial problems after retirement or that they will
get reasonable medical assistance in times of any severe injury.

Calculation of Gratuity

The Gratuity calculation formula is: Gratuity = (15 × last drawn salary × working tenure)/30.
if you have worked for a company for seven years, the organisation is not covered under the
Gratuity Act. And your basic salary was Rs. 35,000.

Gratuity Amount = (15 × 35,000 × 7) / 30 = 1,22,500.

Maternity Benefits Act 1961 Act

The Maternity Benefit Act, 1961 was implemented in India to protect women's rights. The
Maternity Benefit Act, 1961 is legislation that benefits the employment of women during
the time of their maternity. It ensures the women employee of “maternity benefits,” which is
getting their salary paid during their absence from work to take care of the new born child.
This applies to any establishment employing more than 10 employees. This Act was further
amended under the Maternity Amendment Bill, 2017.

Objective

The Act is an important piece of legislation that protects the dignity of motherhood. It also
helps ensure that working women are able to provide proper care for their children. In
addition to protecting the rights of women, maternity benefits also help women with their
finances.

Applicability

The Maternity Benefit Act, 1961 is applicable to establishments such as factories, mines, and
plantations. It is also applicable to government establishments that are employed for
acrobatic equestrian performances. The above Act is also applicable to any organisation that
employs more than 10 employees a day during the preceding 12 months, which is applicable
to any shop or establishment in the particular state of India. This Act is
also applicable to various plants and organisations. It must be followed for the goodwill of
the employees.

Provisions of Maternity Benefit Act, 1961

1. The provisions of the Maternity Benefit Act, 1961 cover the whole of
India. In addition to public hospitals, nursing homes, schools, and other
establishments, the Act also covers women who miscarry. If a woman
miscarries during the pregnancy or gets an abortion, she will be entitled
to a maximum of six weeks of paid leaves. If she gives birth before this
 time, the wages will be paid within 48 hours of production of the birth
certificate.

2. As per the Maternity Benefit Act, 1961, women were entitled to 12 weeks
of maternity leaves. However, under the Maternity Benefit (Amendment)
Act, 2017, the leave period has been increased from 12 to 26 weeks. The
time of maternity benefit of 26 weeks can be broken down to avail up to 8
weeks of leaves before the due date of delivery and the remaining leaves
after childbirth.

3. The maximum period of maternity leaves of 26 weeks can be availed for

up to two children. For women with more than two children, the leave
duration is 12 weeks. The Act also specifies that a woman isn’t required
to work for six weeks following a miscarriage unless the miscarriage is a
result of medical termination of the pregnancy. Additionally, 12 weeks of
leaves can be availed by surrogate mothers and mothers who have
adopted a child below
Equal Remuneration Act 1976

The Equal Remuneration Act, 1976 is an act to provide equal remuneration to men and
women and to prevent gender discrimination against women in matters related to
employment.

∙ The act extends to the whole of India.

∙ It came into force on 8th March 1976.

Equal Remuneration Act 1976: Important points

1) Section 2(g) of the act defines remuneration. It includes basic wage or salary and
additional emoluments.

2) Same work or work of a similar nature (Section 2(h)) refers to the work that requires
some skill, effort, and responsibility under similar working conditions by a man or a woman.

3) Section 4 states that it is the duty of the employer to pay equal remuneration to men
and women workers for the same work or work of a similar nature. As per this section:

∙ No employer shall pay less remuneration or reduce the rate of remuneration of the
workers of opposite gender performing the same work or work of similar nature.
∙ Before the commencement of this act, if the rates of remuneration for men and women
workers for the same work or work of similar nature are different only on the grounds of
gender, then the highest of such rates shall be the rate of remuneration.

4) Section 5 states that there shall be no discrimination while recruiting men and women
workers.

5) The appropriate government shall constitute one or more Advisory Committees (Section
6) to increase employment opportunities for women.

∙ The total membership shall not be less than ten persons, to be nominated by the
appropriate government of which one-half shall be women.
∙ The advisory committee shall take the nature of work, working hours, the suitability of
women for employment, provision for part-
time employment and other relevant factors into consideration while tendering its
advice.

6) Officers not below the rank of a Labour Officer shall be appointed by the appropriate
government to:

∙ Hear and decide the complaints regarding the contravention of any provision of this act.
∙ Decide the claims arising out of non-payment of wages at equal rates to men and women
workers for the same work or work of a similar nature.