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To set up a factory, the prior approval of the state government has to be obtained for the site on which the factory is to be situated and for the construction or extension of any factory. For this an application in the prescribed form has to be submitted to the Chief Inspector of Factories along with a flowchart of the manufacturing process describing the various stages of the process, plans and specifications for the construction in duplicate and other particulars that may be required. The occupier of a factory is also required to get the factory registered for obtaining a license for operating it and send a notice of occupation to the Chief Inspector of Factories, at least 15 days before he begins to occupy the factory. Renewal of license has to be applied for at least 30 days before expiry along with the prescribed fee (which is the same as for grant of license). By registering the factory, the occupier is required by law to undertake the following measures “for ensuring the good health and physical condition” of the workers: 1. Cleaning and Disposing of Wastes and Effluents: The occupier is required to keep the factory premises clean and free from waste and ensure that sweeping, removal of dirt and cleaning with disinfectant is done daily. 2. Ventilation, Temperature and Humidity: The factory premises should be adequately ventilated by circulation of fresh air and comfortable temperature should be maintained in every workroom. 3. Latrines, Urinals and Spittoons: Every factory should provide adequately lighted and ventilated latrines and urinals for male and female workers separately, and should be washed and cleaned with detergents and disinfectants. 4. Avoid Overcrowding: The workplace should not be overcrowded by workers, to an extent, it may be injurious to their health. Besides these, the Factory Act also requires a number of welfare amenities to be provided to the workers in a factory. Every factory is required to provide adequate and suitable facilities for: 1. Washing and drying of wet clothes and storing of clothes not worn during working hours. 2. Sitting arrangements for employees who are required to work in standing position in order that they may take short rests in the course of their work. 3. Readily available first-aid boxes (one box for every 150 workers) to be provided. 4. Ambulance rooms (when 500 or more persons are working in the factory) of the prescribed size, having equipment and medical and nursing staff as prescribed. 5. A canteen (when 250 or more workers are employed in the factory) that is suitably located and sufficiently lighted equipped with necessary furniture, utensils, etc. and operated on non-profit basis. 6. Crèches (when 30 or more women workers are employed in the factory), which should be sufficiently lighted and maintained in a clean condition under the charge of women, trained in infant care. 7. If in a factory where 500 or more workers are employed, the employer has to appoint Welfare Officers as prescribed by the state government.
Display Notices, Maintain Registers and Submit Returns: 1. Notices: The occupier has to display a notice containing abstract of the provisions of the Act and the rules made there under, in the prescribed form, in English and in a language understood by the majority of the workers in the factory. 2. Registers: The occupier should maintain registers or records as may be prescribed by the state government in the rules. The registers generally prescribed are: Muster rolls (separate for adult workers and children) ; Register of Accidents and Dangerous Occurrences ; Inspection Book ; Overtime muster roll ; Salary register ; Fine deduction register ; Wage slips 3. Returns: The occupier is generally required to furnish certain returns such as “Annual Return,” “Halfyearly Returns,” which contain particulars relating to wages, leaves, holidays, etc.
THE PAYMENT OF WAGES ACT, 1936
Objective: This act guarantees the payment of wages on time and without any deductions except those authorized under the act. It regulates the payment of wages to certain classes of employed persons. Applicability: It extends to all the factories & industrial establishments in whole of India. Rights of the employees: Claims for non-payment of wages shall be filed before the CJM (claim authority) as follows: • By employee himself – in Form A. • On behalf of employee by any other person – in Form B. • By group of employees – in Form C. The claim should be filed in duplicate within 12 months from due date before CJM. Penalties are provided in the Act for violation. Appeal can be made against the orders of CJM to the court of small causes and district courts. Responsibility of Employer for payment of wages: Every employer shall be responsible for the payment to persons employed by him (except that on contract)of all wages required to be paid under this Act. Fixation of wage-periods: Every person responsible for the payment of wages under section 3 in respect of which such wages shall be payable. No wage-period shall exceed one month. Timely Payment of Wages: Wages must be paid (On a working day): 1. Before the expiry of the 7th day after the last day of the wage-period, if less than 1000 workmen are employed and in the other case on the 10th day. 2. In Current currency notes and by cheque or both by crediting the wages in the employee’s bank account after obtaining his written authority. 3. Before the expiry of the second day, to the person or employee whose employment is terminated.
Any legal practitioner. Levy of Fines: They should not exceed 3% of the wages in a month. THE MINIMUM WAGES ACT. or any process or branch of work forming part of such employment. WHO CAN FILE A CLAIM PETITION : The Employee. The appropriate government shall fix the minimum rates of wages payable to employees employed in a scheduled employment.Deductions from the wages of an employed person: Fines. weekly holidays and overtime wages. services supplied by the employer. in other cases it should not exceed 50%. absenteeism. Total amount of deductions should not exceed 75% of wages of the employee in any wage-period if whole or part of the deductions is meant for payments to co-operative societies. Any Inspector or Any person acting with the permission of the authority under Section-20 (I) REGISTERS AND RECORDS . Period and payment of wages. SCHEDULED EMPLOYMENTS: An employment specified in the schedule. APPLICABILITY: It extends to the whole of India and applies to schedule Employments in respect of which minimum rates of wages have been fixed under this act. income-tax payable by the employee. HOURS OF WORK. 2. Revise the minimum rate of wages if necessary at intervals not exceeding five years. deductions made with the authorization of the employed person. premium for LIC policy on written authorization of the employed person. overtime. FIXING OF MINIMUM RATES OF WAGES: 1. be recovered within 90 days of the date of the act or omissions be imposed after a proper show cause procedure and cannot be imposed on an employed person of less than 15 years of age. 1948 OBJECT: For fixing minimum rates of wages in certain employments. damage to or loss of goods directly attributable to his neglect. The presiding officers of the Labor court and Deputy Labor Commissioners are the authorities appointed. OVERTIME : The Act also provides for regulation or working hours. and deductions from wages are also regulated. PAYMENT OF MINIMUM RATES OF WAGES: The employer shall pay to every employee in a scheduled employment under him-wages at the rate not less than the minimum rates of wages fixed under the Act. CLAIMS UNDER THE ACT: This section makes provisions to appoint authorities to hear and decide all claims arising out of payment less than the minimum rates of wages or any other monetary payments due under the Act.
an employee shall be disqualified from receiving bonus. unskilled. XIII shall be issued by every employer to every person employed by him at least a day prior to the disbursement of wages. 3. VI. if he is dismissed from service for fraud or riotous or violent behavior while in the premises of the establishment. I. at the beginning of the accounting year. Any employer who contravenes the provision relating to the payment of minimum rates of wages fixed (Section. 500/. supervisory etc.12) hours of work stipulated for constituting a normal working day as per section 13 shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to Rs. Visit book . Register of wages in Form No. or • Rs. XI or Form XII. A muster-roll in Form No. II. Applicability of the act : It extends to every factory wherein atleast 10 persons are employed with the aid of power or where 20 or more workmen are employed without the aid of power on any day during an accounting year. Form No.33 % of the salary or wages during the accounting year. Minimum Bonus payable: • The minimum bonus which an employer is required to pay even if he suffers losses during the accounting year or there is no allocable surplus is 8. managerial. . PRESERVATION OF REGISTERS: All the registers shall be preserved for a period of three years after the date of last entry made therein PENALITY: Any employer who contravenes any of the provisions of this Act other than those relating to Section 12 and 13 of any rule or any order made there under shall be punishable with fine. is entitled to bonus for every accounting year if he has worked for at least 30 working days in that year. Register of deductions for damage or loss in Form No. V.or with both. A wage slip in Form No. which may extend to Rs. Disqualification for bonus: Notwithstanding anything contained in the act. Register of overtime in Form No. and engaged in any kind of work whether skilled. ANNUAL RETURNS: Annual returns in Form III or Form III a as per rule 21 (4) (iii) shall be submitted to the Inspector before the first day of the February of the succeeding year. Register of fines. THE PAYMENT OF BONUS ACT Objective: The payment of Bonus Act provides for payment of bonus to persons employed in certain establishments of the basis of profits or on the basis of production.m.Every employer shall maintain the following registers and records as required under the Karnataka Minimum Wages Rules 1958 enacted vide section-30 of the Act.500 p. 100 in case of employees above 15 years and Rs 60 in case of employees below 15 years.500. whichever is higher. Eligibility for bonus: Every employee receiving salary or wages upto RS.
Maximum bonus payable: If in an accounting year. within one year of its becoming due.1000.500 the bonus payable is to be calculated as if the salary or wages were Rs. Penalties Offences and penalties: For contravention of the provisions of the Act or rules the penalty is imprisonment upto 6 months or fine up to Rs. 1972 Applicability of the act: The Act provides for the payment of gratuity to workers employed in every factory employing 10 or more persons on any day of the proceeding 12 months. Calculation of bonus: In case of an employee receiving salary or wages above Rs. For failure to comply with the directions or requisitions made the penalty is imprisonment upto 6 months or fine up to Rs. .500 p. in Form D. the employer should pay bonus in proportion to the salary or wages earned by the employee in subject to a maximum of 20% of such salary or wages. to make permissible deductions from the bonus payable to an employee. to produce the registers/records as per mentioned in the law. THE PAYMENT OF GRATUITY ACT. To submit an annual return of bonus paid to employees during the year. Rights of employer To forfeit bonus of an employee. who has been dismissed from service for fraud or riotous behavior. Time limit for payment: The bonus should be paid in cash within 8 months from the close of the accounting year or within one month from the date of enforcement of the award or coming into operation of a settlement following an industrial dispute regarding payment of bonus. festival bonus paid and financial loss caused by misconduct of the employee. for the recovery of bonus due and unpaid. such as. to the Inspector.m. to refer any dispute to the Labor Court. or both. 2. calculated after taking into account the amount ‘set on’ or the amount ‘set of’ exceeds the minimum bonus.1000. To get his account audited as per the directions of a Labor Court/Tribunal or of any such other authority. Duties of employer To pay the annual bonus as required under the Act. or both. to the Labor Court or Labor Tribunal. within 30 days of the expiry of the time limit specified for payment of bonus. 2. the allocable surplus. to refer any disputes relating to application or interpretation of any provision of the Act. only. An establishment to which the Act has become applicable shall continue to be governed by the Act even if the number of persons employed falls below 10 at any subsequent stage. Rights of employees: To claim bonus payable under the Act and to make an application to the Government.
should apply in Form-IV. An application under this rule shall be presented to the employer either by personal service or by registered post acknowledgement due Payment of gratuity: Gratuity shall be payable to an employee on the termination of his employment of his employment after he has rendered continuous service for not than five years . In case of death or disablement there is no minimum eligibility period. ordinarily within thirty days. Formula is . in Form 'K' to the employer. After conducting the enquiry as prescribed. A nominee of an employee who is eligible for payment of gratuity under the second provision to sub-section (1) of section 4 shall apply. An employee who is eligible for payment of gratuity under the Act.on his retirement or resignation. RESPONSIBILITY OF THE EMPLOYEE: In case the employee is not paid the due amount of gratuity he should apply. Failure to do so shall render him liable to pay the interest at the prevailing rate from time taken. Is an employer fails to pay due gratuity even after the receipt of notice in Form-1. ordinarily within thirty days from the date of gratuity became payable to him. shall apply. 50. Where gratuity becomes payable under the Act before the commencement of these rules. the periods of limitation specified in sub-rules (1).000/-. The maximum amount of gratuity payable is Rs. Application for gratuity: 1. to the Controlling Authority for issuing direction to the employer. Legal formalities under the act . An application for payment of gratuity filed after the expiry of the periods specified in this rule shall also be entertained by the employer. the claimant employee. ordinarily within one year from the date of gratuity became payable to him. the Controlling Authority will determine the amount payable and direct the employer to make the payment. and no claim for gratuity under the Act shall be invalid merely because the claimant failed to present his application within the specified period. ordinarily within thirty days from the date the gratuity became payable.Last Wages *15*No. 3. or on his death or disablement due to accident or disease. for every completed year of service. in Form-I to the employer. A legal heir of an employee who is eligible for payment of gratuity under the second provision to sub-section (1) of section 4 shall apply. in Form ‘J’ to the employer: 3. of services/26 RESPONSIBILITY OF THE EMPLOYER: It is the duty of the employer to determine the amount of gratuity as soon as it becomes payable and to give notice of the same to the person to whom gratuity is payable and also to the Controlling Authority. 6. 5. if the applicant adduces sufficient cause for the delay in preferring his claim. The amount of gratuity payable shall be at the rate of 17 days wages based on the rate of wages last drawn. may within ninety days of the occurrence of the case for the application.Features of the act: All the employees are entitled to the payment of gratuity on completion of 5 years of service. in Form 'I' to the employer: 2. 4.(2) and (3) shall be deemed to be operative from the date of such commencement.
within ninety days from such date. shall be submitted in duplicate in Form 'H' to the employer in the manner specified in sub-rule (1). verified with reference to the records of the establishment and return to the employee. within ninety days of acquiring a family submit in the manner specified in sub-rule (1). . In the case of an employee who is already in employment for a year or more on the date of commencement of these rules. Notice of opening. address. A fresh notice shall be displayed immediately after the notice referred to in sub-rule (1) becomes illegible or requires a change. including cases where a nominee predeceases an employee. • An employee who has no family at the time of making a nomination shall. • Nominations: • A nomination shall be in Form 'F' and submitted in duplicate by personal service by the employee. In the case of an employee who completes one year of service after the date of commencement of these rules. and thereafter the provisions of sub-rule (2) shall apply. • A notice of modification of a nomination. a fresh nomination. duplicate in Form 'G' to the employer and thereafter the provisions of sub-rule (2). Provided that in case the eligible employee so desires and the amount of gratuity payable is less than one thousand rupees.Mode of payment: The gratuity payable under the Act shall be paid in cash. a notice in Form A shall be submitted by the employer to the controlling authority of the area. A notice in Form B shall be submitted by the employer to the controlling authority of the area within thirty days of any change in the name. change or closure of the establishment: • • • Within thirty days of the rules becoming applicable to an establishment. Display of notice: • The employer shall display a notice at or near the main entrance of the establishment in bold letters in English and in a language understood by the majority of the employees specifying the name of officer with designation authorised by the employer to receive on his behalf notices under the Act or the rules. the duplicate copy of the nomination in form 'F' duly attested by the employer as a token of recording of the nomination by the employer. after obtaining a receipt thereof. ordinarily within thirty days of the completion of one year of service. ordinarily. after taking proper receipt or by sending through registered post. employer or nature of business. the employer shall get the service particulars of the employee. Where an employer intends to close down the business he shall submit a notice in Form C to the controlling authority of the area at least sixty days before the intended closure. payment may be made by postal money order after deducting the postal money order commission therefore from the amount payable. 1. as required under sub-section (4) of section 6. 2. • Within thirty days of the receipt of nomination in Form 'F' under sub-rule (1).
is entitled to be insured under the E. . PENALTY: The Act provides that whoever makes false statement for the purpose of avoiding any payment shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to ten thousand rupees or with both.m. and if he pays contribution for not less than half the number of days available for working in such contribution period. if illiterate. • A nomination. shall take effect from the date of receipt thereof by the employer.S. Act. In the case of a newly appointed employee. corresponding to his daily average wages: The contributions in respect of him are payable for not less than 78 days in the corresponding contribution period. or any other health risks due to employment injury or occupational hazards. whether employed directly or through a contractor. maternity and employment injury. who shall also sign a declaration to that effect in the nomination.I. EMPLOYEES’ BENEFITS Sickness Benefit: Cash benefit for the period of sickness occurring during any benefit at the standard benefit rate. An employer/establishments covered under the E. Employees entitled: Every employee.• A nomination shall be signed by the employee or. shall bear his thumb impression.S. Where the offence relates to non-payment of gratuity the employer can be punished with imprisonment for a term which is not less than six months. The scheme is devised so as to provide social protection to workers in contingencies such as illness. An employer who contravenes any provisions of the Act shall be liable for imprisonment for a term of not less than three months but which may extend to one year or with fine which shall not be less than ten thousand rupees but which may extend to twenty thousand rupees or with both.500 p.I. Advantages to both the parties The Employees’ State Insurance Act provides for certain benefits to employees in case of sickness. THE EMPLOYEES’ STATE INSURANCE ACT Objective of the act: ESI act is a major legislation on social security for industrial workers in India. Act is exempt from the provisions of Maternity Benefit Act and Workmen’s Compensation Act. 6. in the presence of two witnesses. Applicability of the act: It applies to all factories in India employing 10 or more persons and carrying on a manufacturing process with the aid of power or employing 20 or more persons and carrying on a manufacturing process without the aid of power. who has a shorter contribution period of less than 156 days. who is in receipt of wages up to Rs.
If an insured employee dies. at a place where necessary medical facilities under ESI Scheme are not available. Corporation within 15 days after the Act becomes applicable to it. 40 employees are exempted from payment of their contribution. in case of miscarriage.S. to the legal representative of the deceased employee. The benefit is payable at twice the standard benefit rate or Rs.. BENEFITS NOT TO BE COMBINED An employee shall not be entitled to receive for the same periodBoth sickness benefit and maternity benefit. whichever is higher. for all days on which she does not work for remuneration during the period prescribed as under.75% of their wages. 250 on account of confinement expenses shall be paid to an insured woman and an insured person in respect of his wife. Medical Bonus: Rs. the amount of such benefit shall be payable up to and including the day of his death. But in case the "average daily wages in a wage period" are equal to or less than Rs.Maternity Benefit: A periodical cash benefit is payable to an insured woman employee. where there is no nomination. or Both sickness benefit and disablement benefit for temporary disablement. premature birth of a child. the eldest surviving member of his family or the person who incurs the expenditure of funeral of the deceased employee is entitled to reimbursement of such expenditure subject to a maximum of Rs.I. if the contributions. at his option. 1. . The employer may deduct the employees contribution from his wages in respect of the period for which the contribution is payable. The employee shall be entitled to choose any one of the aforesaid benefits. OBLIGATIONS OF EMPLOYERS: The employer should get his factory registered with the E. etc. It is the employer’s responsibility to deposit his own as well as employee’s contributions in respect of all employees including the contract labor. into the E. or sickness arising from pregnancy. and obtain the employer’s Code Number. permanently or temporarily disabled. or Both maternity benefit and disablement benefit for temporary disablement. The amount of benefit shall be paid to the nominee or. 20. to an employee who is injured in the course of his employment and is.S. medical termination of pregnancy. Responsibilities of both the parties Employer’s contribution: 4. in respect of her were payable for atleast 70 days in the two immediately preceding contribution periods. PAYMENT OF BENEFIT IN CASE OF DEATH: If an employee dies during any period for which he is entitled to a cash benefit.I. Disablement Benefit: Disablement benefit is payable in the form of cash installments. Employer’s contribution: 1.75% of the wages paid/payable in respect of every wage period.500. The claim for the payment of funeral expenses should be submitted in the prescribed form along with prescribed documents within 3 months of the death of the employee. Account.
The employer should not reduce the wages of an employee on account of the contribution payable by him The employer should report to the E. who suffers an injury in any accident arising out of and in the course of his employment. The employer must not put to work any sick employee and allow him leave. authorities of any accident in the place of employment.I. the inspection book and the accident book. whether he has sufficient resources or not. if he has been issued the prescribed certificate. his liability under the Act cannot be disputed. Legal formalities / registers / documents under the act The employer should cause to be maintained the prescribed records/registers namely the register of employees. Account in the prescribed manner.S. The employer should inform the local office and the nearest E. Employees entitled to compensation: Every employee (excluding casual employees).S. OBLIGATIONS OF EMPLOYEES: Notice of injury: The insured employee who sustains an employment injury should give a notice of the same to the employer or manager. is required to compensate an employee: . Features of the act: The employer of any establishment covered under this Act. by means of entry in the Accident Book or otherwise in writing or even orally. in case of death of any employee.I. within 24 hours or immediately in case of serious or fatal accidents.S. Penalties The Employer/Company is empowered to pay penalties if any as follows: Period of delay in Payment of Contribution Rate of Damages/Penalties on amount due Upto less than 2 months 2months and above but less than 4 months 4 months and above but less than 6 months 6 months and above 5% 10% 15% 25% THE WORKMEN’S COMPENSATION ACT Objective / Importance / reason / need of the act Workmen’s Compensation Act aims to provide workmen and/or their dependents some relief in case of accidents arising out of and in the course of employment and causing either death or disablement. He should make arrangements for first aid and transportation of the employee to the hospital. dispensary/hospital. This notice is very important for claiming the disablement benefit.I.The employer should deposit the employees’ and his own contributions to the E. immediately.
Duties of employers: • To pay compensation for an accident suffered by an employee. giving the circumstances attending the death of a workman as result of an accident and indicating whether he is liable to deposit any compensation for the same. It is generally deposited along with the prescribed statement. • To present himself for medical examination. compensation of Rs. Duties of employees: • To send a notice of the accident in the prescribed form. with the Commissioner who will then pay it to the workman. Besides. Legal formalities under the act When compensation to be deposited with commissioner: The amount of compensation is not payable to the workman directly. within such time as soon as it is practicable for him. for the purpose of securing the safety of workmen. The receipt of deposit with the Commissioner shall be a sufficient proof of discharge of the employer’s liability. in accordance with the Act. permanent total disablement. directly. • To submit a statement to the Commissioner (within 30 days of receiving the notice) in the prescribed form. temporary disablement whether total or partial. the amount of such compensation and other prescribed particulars. • To maintain a notice book in the prescribed from at a place where it is readily accessible to the workman. in case of lump sum compensation payable to a woman or a minor or a person of unsound mind or whose entitlement to the compensation is in dispute or a person under a legal disability. in the following cases will not be deemed to be a payment of compensation: • in case of death of the employee. permanent partial disablement. 10 or more may be deposited with the Commissioner on behalf of the person entitled thereto. • To submit an annual return of accidents specifying the number of injuries for which compensation has been paid during the year. caused by an accident which is directly attributable to the willful disobedience of the workman to an order expressly given. Any payment made to the workman or his dependents.Who has suffered an accident arising out of and in the course of his employment. or to a rule expressly framed. which results in death of a workman or a serious bodily injury to a workman. • To submit accident report to the Commissioner in the prescribed form within 7 days of the accident. to the Commissioner and the employer. • . if required by the employer. The notice is precondition for the admission of the claim for compensation. However the employer shall not be liable: • • • In respect of any injury which does not result in the total or partial disablement of the workmen for a period exceeding three days In respect of any injury not resulting in death. resulting into death. who has contracted an occupational disease.
which aim at regularizing labor management relations. A copy of the application should be served simultaneously on the workman concerned. names. The application should clearly state the reasons for the intended retrenchment. ages. Even then. THE TRADE UNIONS ACT. then a statement of its assets and liabilities in the prescribed form should be submitted along with the application. Approval of the Government: The employer is required to obtain prior approval of the concerned governmental authority. no workman who has been in continuous service for at least one year can be retrenched until and unless the following conditions are met: 1. 1947 This Act states the conditions for retrenchment of workers. to every workman who is being retrenched. on being satisfied. a copy of the rules of the union signed by at least 7 members. Permission can be obtained by submitting an application in form within 60 days before the proposed retrenchment. and a statement containing (a)the names. Notice/Notice Pay: The employer is required to serve three months’ notice to retrench the workman with reasons for the same. It is necessary for factory owners to “hire and fire” so as to increase efficiency and productivity. which shall be conclusive evidence of its registration. (b)the name of the trade union and the addresses of its head office. addresses and occupations of the members making the application. . The application for registration should be in the prescribed form and accompanied by the prescribed fee. Presently. where the amount payable as compensation has been settled by agreement a memorandum thereof shall be sent by the employer to the Commissioner. A Trade Union is a combination whether temporary or permanent. Registration: Registration of a trade union is not compulsory but is desirable since a registered trade union enjoys certain rights and privileges under the Act. Retrenchment Compensation: Where the approval of the government has been granted the workman being retrenched shall be entitled to receive retrenchment compensation. 1926 provides for registration of trade unions with a view to render lawful organisation of labor to enable collective bargaining. who shall. 3. formed for regulating the relations not only between workmen and employers but also between workmen and workmen or between employers and employers. On being satisfied with all the requirements. 2. a system of “last come. The Act extends to the whole of India and applies to all kinds of unions of workers and associations of employers. record the memorandum in a registered manner. addresses and occupations of its office bearers. 1926 The Trade Unions Act. unreliable or habitually irregular. If the union has been in existence for more than a year. first go” exists where the employer is required to retrench the person last employed in any category unless he can prove that the employee retrenched is inefficient. Minimum seven workers of an establishment (or seven employers) can form a trade union and apply to the Registrar for it registration. the registrar shall register the trade union and issue a certificate of registration.REGISTRATION OF AGREEMENTS OF COMPENSATION: An agreement for payment of compensation which has been registered shall be enforceable under this act notwithstanding anything contained in the Indian Contract Act. and (c)the titles. in the prescribed form. THE INDUSTRIAL DISPUTES ACT.
Who is entitled to maternity benefit? Every woman employee. Features of the act: Every woman shall be entitled to. the payment of maternity benefit. which is the amount payable to her at the rate of the average daily wage for the period of her actual absence. and her employer liable for. who has actually worked in the establishment for a period of at least 80 days during the 12 months immediately preceding the date of her expected delivery. A notice of amalgamation signed by the secretary and at least 7 members of each amalgamating union should be sent to the registrar. The qualifying period of 80 days shall not apply to a woman who has immigrated into the State of Assam and was pregnant at the time of immigration. • That she will not work in any establishment during the period for which she receives maternity benefit . However she cannot take more than six weeks before her expected delivery. the Act does not apply to any such factory to which the provisions of the Employees’ State Insurance Act are applicable for the time being. MATERNITY BENEFIT ACT Objective of the act: To protect the dignity of motherhood and of a new person’s birth by providing for the full and healthy maintenance of the woman and her child at this important time when she is not working. is entitled to receive maternity benefit. Applicability of the act: It extends to the whole of India and applies to every factory where 10 or more persons are employed on any day of the preceding 12 months.Dissolution of a trade union: A registered trade union can be dissolved in accordance with the rules of the union. and the amalgamation shall be in operation after the Registrar registers the notice. stating as follows: • That her maternity benefit may be paid to her or to her nominee (to be specified in the notice). Period for which maternity benefit is allowed: The maximum period for which any woman shall be entitled to maternity benefit shall be 12 weeks in all whether taken before or after childbirth. A notice of dissolution signed by any seven members and the secretary of the union should be sent to the registrar within 14 days of the dissolution. Legal formalities under the act Notice for maternity benefit: A woman employee entitled to maternity benefit may give a notice in writing (in the prescribed form) to her employer. However. On being satisfied the registrar shall register the notice and the union shall stand dissolved from the date Amalgamation of trade unions: Any registered trade union may amalgamate with any other union(s). provided that at least 50% of the members of each such union record their votes and at least 60% of the votes so recorded are in favor of amalgamation.
may notify. within 60 days of the service of such order. shall be eligible for becoming a member of the funds. The failure to give notice. Any other establishment so notified by the Central Government even if employing less than 20 persons. For dismissal or discharge of a woman as provided for under the Act. who is in receipt of wages upto Rs. however.• • • That she will be absent from work from such date (to be specified by her). in accordance with the provisions of the Act.. the employer shall permit such woman to absent herself from work after the day of her delivery. the penalty is imprisonment upto one year and fine upto Rs. after the delivery. 5000. Every other establishment employing 20 or more persons or class of such establishments which the Central Govt. provides for compulsory contributory fund for the future of an employee after his retirement or for his dependents in case of his early death. does not disentitle the woman to the benefit of the Act.2000 respectively. Employees entitled: Every employee. • THE EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT. 5000.500 p. Penalties Penalties for contravention of act by employer: For failure to pay maternity benefit as provided for under the Act. Rights of employees: • To make a complaint to the Inspector and claim the amount of maternity benefit improperly withheld by the employer. The notice may be given during the pregnancy or as soon as possible. • Not to engage pregnant women and not to dismiss or discharge a pregnant woman employee during the period of maternity leave.m. To appeal against an order of the employer depriving her of the maternity benefit or medical bonus or dismissing her from service. 2000 respectively. The minimum being 3 months and Rs. 6. 1952 The Employees’ Provident Funds and Miscellaneous Provisions Act. the penalty is imprisonment upto one year and fine upto Rs. which shall not be earlier than 6 weeks before the date of her expected delivery. The minimum being 3 months and Rs. It extends to the whole of India and is applicable to: • • • Every factory engaged in any industry specified in Schedule 1 in which 20 or more persons are employed. Duties of employers: • To pay maternity benefit and/or medical bonus and allow maternity leave and nursing breaks to the woman employees. Employer’s contribution: The employer is required to contribute the following amounts towards Employees’ Provident Fund and Pension Fund . On receipt of the notice.
D.a.A. b. technical or clerical work for hire or reward whether the terms of the employment be expressed or implied but does not include: a. Persons employed mainly in a managerial or administrative capacity b.500/ per month. 6500 to be credited to the Pension Fund. the contribution payable to Pension Fund shall be limited to the amount payable on his pay of RS. 1970 OBJECT: To regulate the employment of contract labor in certain establishments and to provide for its abolition in certain circumstances and for matters connected therewith. etc. • To every contractor who employs or who employed on any day of the preceding twelve months twenty or more workmen. Penalty for default in payment: If the employer defaults in making payment of any contribution. . WORKMEN: Any person employed in any factory to do any skilled or semi-skilled or unskilled. In case of all other establishments’ employing 20 or more person-12% of the wages. to the Fund. on any amount due from him under the Act.a. administrative charges. he shall be liable to pay. Where. 6500 only. 6500 p... dearness allowance and retaining allowance. the employees may voluntarily opt for the employer’s share of contributions on wages beyond the limit of RS. from the date on which it becomes due till the date of its actual payment.) 17 22 27 37 INTEREST The employer shall be liable to pay simple interest @ 12% p. however. damages at the following rates: Period of Default (i) Less than 2 months (ii) 2 months and above but less than 4 months (iii) 4 months and above but less than 6 months (iv) 6 months and above Rate of Damages (%p. by way of penalty. supervisory. THE CONTRACT LABOUR (Regulations and Abolition) ACT.a. Persons being employed in a supervisory capacity draws wages exceeding Rs. the pay of an employee exceeds RS. In case of establishments’ employing less than 20 persons or a sick industrial (BIFR) company or ‘sick establishments’ –10% of the basic wages.m. manual. APPLICABILITY: It extends to the whole of India and applies to: • Every establishment in which twenty or more persons are employed or were employed on any day of the preceding twelve months as contract labor.
GRANT OF LICENCES: Every contractor shall make an application for the grant of a license in triplicate in Form No. is empowered to prohibit employment of contract labor in any process of operation or other work in any establishment after consultation with the Advisory Board. RENEWAL OF LICENCE: Every contractor shall make an application for the Renewal of license in Form VII in triplicate along with the required fee not less Than thirty days before the expiry date. A register of deductions. APPEAL: Any persons aggrieved by an order of the registering officer/Licensing officer may within 30 days from the date of communication of the order prefer an appeal to the appellate officer. SECURITY: The contractor shall deposit a security amount at the rate of Rs. A muster-roll in Form-16 .IV along with a treasury receipt showing the prescribed fee to the licensing officer. If the application for registration is complete in all respects. A duplicate certificate shall be issued on payment of Rs. 5/- REGISTRATION FEE: As we have more than 500 workers in the factory so we will pay Rs 10. If the renewal application is not submitted within the time specified the contractor shall be liable to pay a fee of 25% in excess of the fee ordinary Payable. A register of overtime in Form 23 .12 Every contractor shall maintain a register of contract labors in Form No. 13 . fines etc. A register of wages in Form 17 . PROHIBITION OF EMPLOYMENT OF CONTRACT LABOUR: The appropriate govt.REGISTRATION OF ESTABLISHMENT: Every principal employer of an establishment shall make an application for registration in triplicate in Form No. LICENSING FEE/RENEWAL FEE: As we have more than 500 workers in the factory so we will pay Rs 10. LIABILITY OF PRINICPAL EMPLOYER: If any contractor does not provide the amenities prescribed above within 7 days from the commencement of the employment. the principle employer shall make provisions to provide it within 7 days. in Form 20 .000 as licensing fee. the registering officer shall register the establishment subject to rule 17 to 20 and issue a registration certificate in Form-II (Section 7 to 9 read with rule 17 to 20).20 for each of the workman to be employed as a contract labor at the time of making application for license. The application shall also be accompanied by a certificate by the principle employer in Form-V.1 to the registering officer of the area along with a treasury receipt showing payment of the prescribed fee.000 as registration fees. A register of advances in Form 22 . REGISTERS AND RECORDS: Every Principal employer shall maintain a register of contractors in Form No. A register of fines in Form 21 .
Display of ate of wages. b. Register of Fines. if any. Drinking water.000/or with both. c. Registration of the Establishment. date of payment of wages. Filing of Annual Return. Maintenance and Preservation of Register of Contractor. 6. Rest rooms where the workmen are required to halt at night and the work is likely to last for 3 months or more . 2. Checklist for Principal Employer: 1. 2. Rest Room. etc. . Filing of Return of Commencement and Completion of the Contract. displays notices. Drinking Water. Issues employment card to his workmen.for every day. 5. Checklist for Contractor: 1. abstracts of the Acts. Requisite number of latrines and urinals . Responsibilities Principal Employer should ensure that the Contractor does the following: a. Muster Roll.separate for men and women. Ensure provision that facilities of Canteen. Pays the wages as determined by the Government or Commissioner of Labor. Principal employer shall send Annual Return in Form 25 in duplicate to the registering officer not later than the 15th February of the succeeding year. Provides the following facilities: Canteen (if employing 100 or more workmen in one place) and if the work is likely to last for 6 months or more . shall be punishable with imprisonment for a term which may extend to three months or with fine which may extend to Rs. 1. Rules etc. First Aid. Contraventions of the provisions of the Act or Rules in which no other penalties elsewhere provided. Latrines and Urinals. shall be punishable with imprisonment for a term which may extend to three months or with fine which may extend to Rs. In their absence pays fair wages to contract laborer. 100/. 3. Licensing. Washing.. Washing.or with both. Maintains various registers and records. Crèche are provided by the Contractor. 3. Register of wages. 500/. First Aid. wage period. Maintenance of Register of Persons employed. PENALITY: The offences relating to the obstruction to the inspector and refuses to produces the register and records etc. Crèche e. 4. Contraventions of provisions regarding employment of contract labor shall be punishable with imprisonment for a term which may extend to three months or with fine which may extend to Rs.Every contractor shall issue an employment card and is wages slip in Form 19 at least a day prior to the disbursement of wages in Form14 to each worker within 3 days of the employment of the worker and issue a service certificate in Form 15 on termination of his employment. hours of work. f. Renewal of the License. etc. ANNUAL RETURNS: Contractor shall send half yearly return in Form 24 in duplicate to the licensing officer not less than thirty days from the close of the half year.
In case the contractor fails to make payment of wages within the prescribed period. Absenteeism . 7. A copy of this will be issued to the employee together with the improvement required and the time scale. • The employee would be given a complete chance to present his/her case. • No employee will be dismissed for a first breach of discipline except in the case of gross misconduct. when the penalty will be dismissal without notice or payment in lieu of notice. Display of rate of wages. to the contract labor employed by the contractor and recover the amount so paid from the contractor either by education from any amount payable to the contractor under any contract so as a debt payable by the contractor. Stage one: Verbal warning: In the first instance the employee would be given a verbal warning against his act of misconduct. 5. Following would be the procedure adopted buy the company against the employee who is liable to the disciplinary action taken against him: 1. 2. hours of work. Half yearly return. Employment card. Every principal employer shall nominate a representative duly authorized by him to be present by the contractor and it shall be the duty of such representative to certify the amount paid as wages in such manner as may be prescribed. Service Certificates. then the principal employer shall be liable to make payment of wages. • At every stage during the procedure the employee will be given complete information about the action which would be taken against him. It shall be the duty of the contractor to ensure the disbursement of wages in the presence of the authorized representative of the principal employer. 6. a formal written warning will be issued. 3.4. Insubordination 2. Responsibility for payment of wages: 1. Following are some cases which would merit a verbal warning: • Persistent lateness . A contractor will be responsible for payment of wages to each worker employed by him as contract labor and such wages shall be paid before the expiry of such period. A detailed account of the incident and action will be written. date of payment of wages. DISCIPLINARY PROCEDURE Following are the Principles of Disciplinary Procedure which would be followed: • No disciplinary action will be taken against any employee until his/her case has been fully investigated. • At all stages the employee will have the right to be accompanied by a fellow employee of the Organization or staff or trade union representative who may be present during the disciplinary interview. 4. Stage two: Formal written warning: A repetition of the offence or if there is no improvement or if the offence is considered sufficiently serious to warrant it. • The employee will have the right of access to evidence being brought against him and the right to produce evidence of his own. A further copy will . wage period.
No final warning shall be issued without the express authority of the appropriate Director. The Manager will then carry out a full review of the facts. 4. An appeal against dismissal would be made to the Chief Executive who will carry out a full review of the facts and will reply in writing as soon as the review is completed. an employee may be dismissed (without notice in writing). or likely to provoke a breach of normal office discipline and behavior.be held on the individual’s personnel file. The employee will have the right to appeal to either the H. An appeal against a disciplinary action must be made in writing within 7 days of the disciplinary action. of the Organization’s property or of any goods or property.prescribed drugs.R manager to whom the function is responsible or to the Chief Executive. The employee will remain dismissed until the appeal procedure is completed. • Acts of racial harassment. A member of the HR team will be present when the warning is given. external contacts or fellow employees. Following would be some consideration to be made for the Appeal Procedure: • • Appeals will not be heard until the foregoing procedures have been exhausted. • Acts of sexual harassment. stating the reasons for non-acceptance of the action. the Organization may suspend the employee on full pay until such time as the investigation is complete. Following are some cases which would merit a Immediate Dismissal: • Theft on the Organization’s premises. • Rude or offensive behavior to customers. Stage three: Final written warning: A repetition of a previous offence will justify a final written warning. However.R manager. No employee will be immediate dismissed without prior reference to the Chief Executive but in case he’s not there then a employee will be suspended on full pay for up to 5 days pending a decision. • Fighting or attempting to injure another person. • Verbal abuse likely to provoke a breach between the Organization and its external contacts. Following are some cases which would merit a Final written warning: • Being unfit to work due to the influence of alcohol or un. Unauthorized absence from work • Any behavior likely to bring the Organization’s reputation into disrepute 3. The appeal should be made to the H. During the investigation of any alleged disciplinary offence. Smoking in prohibited areas. The decision will be confirmed to the employee in writing together with details of the appeal procedure. Following are some cases which would merit a Formal written warning: • Misuse of organization’s equipment. Stage four: Dismissal gross misconduct: In cases of gross misconduct. At this stage a detail of the incident and the action to which is employee is liable will be written and a copy of which will be issued to the employee together with the improvement required and the time scale. if the employee is re- • • . which may involve a further meeting with the employee and would reply in writing within 7 days of the appeal. • Fraud resulting in the manipulation of the Organization’s assets and materials.
ATTENDANCE MANAGEMENT PROGRAM Our company would follow the following two steps in our Attendance Management Program: 1.e. 2. that they play an important role in our organization and that their attendance is critical. Awareness. Employees must not only be heard.instated then the period of service will also be reinstated and the basic salary paid for the period between dismissal and reinstatement. Make each employee aware that they are a valued member of the "team". marital or financial counseling) 5. commitment and involvement by all levels of staff. Hold regular meetings. keep our staff informed and involved 4. following points are kept in mind: 1. At times it is not really the physical realities of the work place that influence employee’s willingness to work but their perceptions of these realities. supervisors and employees. It is important that employees are encouraged to voice their concerns so their perceptions of the work place are clear and can be dealt with. Taking appropriate group action: To realize the importance of Reduced Absenteeism. they must be answered in such ways as to assure them their input is worthwhile. 3. The best way to find which specific areas are affecting absenteeism is open communication between managers. Any appeal made out of the 7 days time limit will fail. Taking appropriate group action Development of information/communication systems: The first step of an effective attendance management program is to identify specific areas. Develop ways for each and every employee to feel free to contribute ideas and suggestions. Regularly scheduled department meetings are an excellent way to hear employee perceptions and concerns and also to communicate organizational goals. Development of information/communication systems 2. . unless there are exceptional reasons for the delay and the original decision stand. When employees are encouraged to make a difference they are less likely to withdraw their participation through absenteeism. Familiarize our self with community programs which we can recommend to an employee if he/she has a need for assistance (i. which are affecting attendance.
1936 THE MINIMUM WAGES ACT.ACT THE PAYMENT OF WAGES ACT.1000.2000 to Rs. 1000 to Rs. For contravention of the provisions of the Act or rules the penalty is imprisonment upto 6 months or fine up to Rs. 1972 THE EMPLOYEES’ STATE INSURANCE ACT WORKMEN’S COMPENSATION ACT . 500/. For the purpose of avoiding any payment imprisonment for upto six months or with fine upto ten thousand rupees or both. or both. 15000 & additional fine upto Rs.100 per day. For failure to comply with the directions or requisitions made the penalty is imprisonment upto 6 months or fine up to Rs. Imprisonment for a term which may extend to six months or with fine which may extend to Rs.5000 and upto Rs.1000. THE PAYMENT OF GRATUITY ACT.or with both.5000. For late payment of wages: imprisonment for 1 to 6 months & fine of Rs. Period of delay in Payment of Contribution : Rate of Penalty on amount due Upto less than 2 months 5% 2 to 4 months 10% 4 to 6 months 15% 6 months and above25% In case of default by employer: 50% of the compensation amount plus interest to be paid. On subsequent conviction fine not less than Rs. 1948 THE PAYMENT OF BONUS ACT Offences and penalties Fine not less than Rs. An employer who contravenes any provisions of the Act imprisonment for not less than three months which may extend to one year or with fine which shall not be less than ten thousand rupees but which may extend to twenty thousand rupees or with both.10000. or both.
a. the penalty is imprisonment upto one year and fine upto Rs. The minimum being 3 months and Rs.5. 1.5 per week not exceeding Rs. 100/. 5000.) Less than 2 months 17 2 to 4 months 22 4 to 6 months 27 6 months and above 37 Obstruction to the inspector and refusal to produce the register & records etc. 1926 MATERNITY BENEFIT ACT Offences and penalties Unfair labor practices: Imprisonment upto 6 months or fine upto Rs.or both. THE EMPLOYEES’ PF & MISC. For dismissal or discharge of a woman as provided for under the Act. 3000 Closure without 60days notice: Imprisonment upto 6 months or fine upto Rs.000/. 500. If the employer defaults in making payment of any contribution: Period of Default Rate of Damages (%p. shall be punishable with imprisonment for a term which may extend to 3 months or with fine which may extend to Rs. Contraventions of the provisions of the Act or Rules in which no other penalties elsewhere provided: imprisonment for a term which may extend to 3 months or with fine which may extend to Rs. Contraventions of provisions regarding employment of contract labor: imprisonment for upto 3 months or 3 fine upto Rs.ACT INDUSTRIAL DISPUTES ACT. 5000. the penalty is imprisonment upto one year and fine upto Rs. 2000 respectively.per day.or 3 both.2000 respectively. Penalties for contravention of act by employer: For failure to pay maternity benefit as provided for under the Act. 1952 THE CONTRACT LABOUR ACT . 500/.5000 For making false entry in general statement of sending returns: fine upto Rs. The minimum being 3 months and Rs. On continuing fault: Rs.1947 THE TRADE UNIONS ACT. PROVISIONS ACT.
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