LAW

The body of principles recognized

and applied by the state for the
administration of justice.
How Labour Law Links with
HR Activities?
HRM deals with : -
Procurement:
Employment Exchanges Compulsory
Notification of Vacancies Act, 1959
Development:
Factories Act, 1948 For Developing
the working conditions.
Compensation:
Minimum Wages Act, 1948
Integration:
I.D Act, 1947
Maintenance:
Standing Orders Act, 1946
Separation:
Payment of Gratuity Act, 1972
 Parts of Labour Law

Law Relating to Working Conditions

Law Relating to Working Conditions

Law Relating to Industrial Relations

Law Relating to Social Security

Law Relating to Employment & Training

Law Relating to Working conditions

Factories Act, 1948

Shops and Establishment Act, 1988

Contract Labour R&A Act, 1970

Law Relating to Wage & Salary

Minimum Wages Act, 1948

Payment of Wages Act, 1936

Payment of Bonus Act, 1965

 Law Relating to Industrial Relations

Industrial Employment Standing Orders Act, 1946

Industrial Disputes Act, 1947

Trade Unions Act, 1926

 Law Relating to Social Security
Work Man Compensation Act, 1923

Payment of Gratuity Act, 1972

Employees State Insurance Act, 1948

Employees Provident Fund and Miscellaneous Act, 1952

Maternity Benefit Act, 1961

Law Relating to Employment & Training

Apprentices Act, 1961

Employment Exchanges & Vacancies Act, 1959

 The Employees Provident Funds and Miscellaneous
Provisions Act, 1952
Introduction:

This is the legislation for compulsory institution of contributory provident fund in industrial
undertakings was discussed several times at tripartite meetings in which representatives of the
central and state governments and of employers and workers took part.

A non-official bill was on this subject was introduced in the Lok Sabha in 1948. Then this act
was enacted to provide for the institution of provident funds, pension fund and deposit lined
insurance fund for employees in factories and other establishments.

Objective:

The Employees’ Provident Funds and Miscellaneous Provisions Act is a social security
legislation to provide three schemes i.e.

Provident Fund (Provident Fund Scheme)

Family Pension (Family Pension Fund Scheme) and

Insurance to Employees (Employees Deposit Linked Insurance Scheme).

 Employee has to pay contribution towards the fund. Employer also pays
equal contribution. The employee gets a lump sum amount when he retires,
which will be useful to him after retirement or for his dependants in case of
his early death and inculcating the habit of saving among the workers.

The EPF Act contains basic provisions in respect of applicability, eligibility,

damages, appeals, recovery etc. The three schemes formed by Central
Government under the Act make provisions in respect of those schemes.
 Applicability:

 The Act applies to Every establishment which is a factory engaged in

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

 Any other establishment employing 20 or more persons which Central

Government may, by notification, specify in the behalf.

 Any establishment employing even less than 20 persons can be covered

voluntarily U/s. 1(4) of the Act.

 Once the provisions of Act become applicable, it continues to be

applicable even if number of employees fall below 20.

 If factory is covered, the head office and branches will also be covered
under the Act.

 Apprentices employed under Apprentices Act, Apprentice is a learner

who is paid an allowance during the period of his training. Hence, he is
not covered under the EPF Act.
 Eligibility:

 Any person who is employed for work of an establishment or

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

EPF A/c No: 1 12% 3.67%

Wage ceiling
FP A/c No: 10 8.33%
is Rs. 6500/-

Admn. Charges A/c No: 2 0.50%

EDLI A/c No: 21 0.50%

EDLI Admn. Charges A/c No: 22 0.00%

* In case of EDLI Exemption Admn. Charges are 0.005%

* In case of EDLI Exemption Admn. Charges are 0.005%

 Mode of Payment of Contributions:

 The employer shall, before paying the member his wages in respect
of any period or part of period for which contributions are payable,
deduct the employees contribution from his wages which together
with his own contribution as well as an administrative charges of such
percentage of the pay, Basic Wage, Dearness allowance, retaining
allowance, if any and cash value of food concessions admissible.

 The contributions paid through challan at the State Bank of India at

the concerned station where the factory or other establishment is
situated. The contributions must be remitted through challan on or
before 15th of the every following month.
Benefits:
 The benefits under this act is payable normally on retirement or
death.

 In case of retirement at the age of 58 years member can be

eligible for monthly pension.

 In case of death of the employee his dependents (if un married

– parents, If married – wife and two children for up to the age
of 21 years) are eligible for monthly pension and Equal to the
average balance upto Rs. 35, 000/- plus 25% of the balance
amount, if any subject to Rs. 60,000/- maximum.

 In case of EDLI exemption, irrespective of the contributions the

diseased employee’s dependents received Rs. 65,000/-.
 Loans / Advances:
 For Purchase of House, Flat -

5 Yrs. Continuous service in P.F.

 For Repairs and Extension of House –

5 Yrs. Continuous Service in P.F.

 For Marriage / Education of Children -

7 Yrs. Continuous Service in P.F.

Forms / Registers to be maintained:
 Form 2A - Nomination and Declaration of Employee
 Employees P.F. Eligibility Register.

 P.F. Inspection Book.

Forms for withdrawal of fund:

 Form 10C - Withdrawal of Pension Fund by the member.

 Form 19 - Withdrawal of Provident Fund by the member.

 Form 20 - Withdrawal of Provident Fund by the Nominee.

 Form 10D - Withdrawal of Monthly Pension Fund by the Nominee.

 Form 31 - Advance / Loan from the P.F

 Form 13 - Transfer of the Funds of the employee.

 Offences:
 Fails or refuses to submit any returns or Submit a false returns,
Statements or other documents etc.

 Makes a false declaration.

 Obstructs any Inspector or other official appointed under the

Act or this Scheme in the discharge of his duties.

 Fails to produce any record for inspection by such inspector or

other officials.
 Recovery of Damages:
Where an employer makes default in the payment of any
contributions under this act may recover from the employer
by way of penalty, damages at the rates given below:

Period of Default Rate of Damages

(% of arrears per annuam)
Less than 2 months 17

2 months – 4 months 22

4 months – 6 months 27

6 months and above 37

 The Factories Act, 1948
Introduction:
 
This is one of the earliest welfare legislation.
 
The first Factories Act was passed in 1881. This act gave a limited
measure of protection to children, first by prohibiting their employment in
factories.

In 1890 the government of India appointed a Factory Labour Commission,

and on its recommendations, the Indian Factories Act, 1891 was passed.
The main features of the Act were ..

  Compulsory rest interval of half an hour. 

   A weekly holiday.
   Non-employment of children under nine etc. 

Basing on the recommendations of the Factory Labour Commission in the

year 1911.
The Indian Factories Act, 1911 was further amended in 1923,
1926 and 1931. By these amending acts, some minor changes
were introduced for administrative purposes and for the infliction
of penalties on parents or guardians for permitting their children to
work in two factories on the same day.

 
The Royal Commission on labour (1931), was recommended for
several amendments. Factories Act, 1934, which is amending for
reducing the workmen working hours 11 to 10 for children 12 and
15 were reduced.
 
The following recommendations of the Rege Committee,
the Government of India enacted the Factories Act, 1948. Which
came into effect from 1st April 1949.
 Objective:

To ensure to the workers employed in the factories,

health, safety, welfare measures, and provide for proper
working hours, leave and other benefits
 
 Applicability:
Applies to all factories through out India
 
Factory means…
 
 Any premises there 10 or more than workers are engaged and
manufacturing process is carried away with aid of power.

 Any premises where 20 or more workers are engaged with out aid of power.
 
 This act doesn’t specify the minimum and maximum limits of the power
capacity.
 
The term manufacturing process refers to process for making, altering,
repairing, ornamenting, finishing, packing, oiling, washing cleaning, breaking
up, demolishing, or other wise treating or adapting any article or substance
with a view to its use, sale, transport delivery or disposal.
 
How to register a Factory under the Act:
Get Factory site approved from the State Government.
 
Send an application for permission to construct, extend or take into use any
building as a factory in Form-1.
 
The application is required to submit along with flow chart of manufacturing
process, plans and specifications for construction in duplicate.
 
Approval deemed to be granted if no communication within 3 months from the
authorities concerned.

Obtain Registration/License and Notice:

 
Send an application to get Registered, Grant or Renewal of license and Notice of
Occupation in Form-2 from the chief Inspector of Factories within 30 days of applicability
of the act.
 
Send a notice of occupation before 15 days of the occupation
 Notices to be displayed:
You should display the abstract of the act and the rules in Form-20 in English and in
language understood by the majority of workmen.

 Name and address of the factory, occupier and the owner of the premises.

 Address for the communities relating to the factory. 

 Nature of the manufacturing process to be carried on in the factory during next 12

months.

 Total rate horsepower installed of to be installed.

 Name of the manager of the factory for the purpose of the act.

 Number of workers to be employed in the factory. 

 Registration Certificate Xerox copy.

 Inform notice of change of manager to inspector or chief inspector of factories

within 7 days from date of the change effected in Form-2A
 Accident Reports to be sent:
 Send a notice of certain accidents resulting in a death which
prevent the injured person from working for a period of 48
hours or more in Form-18 and Accidents Annual Returns in
Form-33.

 Send a notice in case of any dangerous occurrence in the

factory whether causing bodily injury/disability or not in
Form-18A.

 Send a notice if a worker contracts any disease specified in

the 3rd schedule under the Workmen’s compensation Act,
1923.
 Periodical Returns to be submitted:
Required to furnish returns such as Annual Return and Half
yearly Return which contains particulars of wages, leave
and holidays etc.

 Annual Return should be submitted in Form-21 by the 15th

January of the succeeding year.

 Half yearly Return to be submitted in Form-2 by 15th July

in every current year.
 Registers/ Records to be maintained:
 Muster Roll (Weekly) & Muster Roll Monthly in Form-25.

 Register of Accidents and dangerous occurrences in Form-26.

 Inspection books in Form-38.

 Humidity Register in Form-6.

 Record of Lime-Washing and painting etc. in Form-7.

 Report of examination of pressure vessel or plant in Form-8.

 Register of Adult Workers in Form-12.

 Register of Child Workers in Form-14.

 Over time register in Form-10.

 Leave Book in Form-16.

 Register of Leave with Wages in Form-15.

 Safety, Health and Welfare Measures to be followed:
Safety Measures:
 Fencing dangerous parts of the machines.

 Prohibit employment of women and children near cotton openers.

 Protect workers from repairing machinery in motion.

 Maintain hoists and lifts of good mechanical constructions, of sound

material and adequate strength.

 Keep al floor, steps, stairs, passages and gangways in good condition.

 Prohibit any person from carrying any load so heavy which may cause him
injury.

 Protect workers from injury to eyes from particles through screens and
goggles.

 Protect workers from dangerous fumes, inflammable dust and gas etc,

 Protect workers from fire and provide precautionary means-Safe escape,

fire extinguishers and fire fighting squads.

 Disclose information regarding health hazards and measures to overcome

such hazards.
 Health Measures:
 Keep clean and free from effluvium

 Disposal of wastes and effluents

 Adequate ventilation and reasonable temperature.

 Prevent inhalation of dust and fumes.

 ensure proper standards of humidification avoid overcrowding.

 Provide suitable and sufficient natural/artificial lighting.

 Sufficient supply of drinking water.

 Provide sufficient latrine and urinal accommodation for male

and female separately.

 provide sufficient number of spittoons and maintain them in

clean and hygienic condition.
 Welfare measures:
 Separate and adequate washing facilities for male
and female workers.

 Facilities for storing of cloths not worn during

working hours and drying of wet clothes.

 Seating arrangements for every worker.

 First aid box for every 150 or more workers and it

shall be provided under the in charge of person
certified.
 Restrictive provisions with regard to working hours of
Adult:
Consider the following restrictive provisions…

 A worker can’t be employed more than 48 hours in a week.

 He must be granted a holiday for every 6 days of working.

 He can’t be employed for more than 9 hours a day.

 He must be given an interval of rest for at least half an hour

after 5 hours of work.

 Total periods of work including interval must not be spread

over more than 10 ½ hours in a day.

 If workers work more than 9 hours in a day and 48 hours in a

week, he shall be paid for overtime at the rate of twice the
ordinary rate of wages.
 Restrictive practices with regard to employment of
women and children:
 A women worker can’t be employed except between the hours
of 6 a.m. and 7 p.m. The employment of child between the age
of 14 years is totally prohibited.

 A child who completed 14 years but not completed 15 years can

be employed for a maximum period of 4 ½ hours in a day.

 A child who cannot be employed during the night time i.e. from
10 pm to 6 am.

 A child worker must have certificate of fitness granted by a

certified surgeon.

 Manager must maintain a register of child worker in the

prescribed form.

 A child who is 15 years old but has not completed 18 years can
be employed as an adult if he had a certificate of fitness to
perform a full day’s work.
 Offences and penalties:

 If any provision of the act is contravened,

imprisonment up to 2 years or fine up to
Rs.100000/- or both. Continuation of the
contravention is liable for a fine of Rs.200000/- or
both.

 Failure to provide safety measure causes death, fine

up to Rs.25000/- and Rs.35000/- for subs sequent
conviction respectively. If it causes serious bodily
injury, fine up to Rs.5000/- and Rs.10000/- for
subsequent conviction.

*-*-*
The Employees’ State Insurance Act,
1948
 Introduction:

 The ESI Act has been passed to provide for certain benefits
to employees in case of sickness, maternity and
employment injury and to make provisions for related
matters. As the name suggests, it is basically an ‘insurance’
scheme i.e. employee gets benefits if he is sick or disabled.

 In the year 1943 Prof. Adkar introduced a detailed scheme.

Based on that the Government of India and State
governments also interested to provide the health insurance
to the workers. With the state intervention only the health
insurance act is calling now Employees’ State Insurance
Act, 1948.
 Objective:
 To provide health insurance to the employees who are
drawing the wage below 21,000/- per month.

 Applicability:

 It is extended in area – wise to factories using power

and employing 10 or more persons and non-power suing
manufacturing units.

 Establishments employing 20 or more person upto Rs.

7500/- per month.

 It has also been extended upon shops, hotels,

restaurants, road motor transport undertakings,
equipment maintenance staff in the hospitals.
Submission of Declaration Form and Return in Form 3:

 The employer to send to the appropriate office by

Regd. Post or messenger, all declaration forms
without detaching the Temporary Identification
Certificate together with a return in Form 3 with
in 10 days of form the date o f joining of the
employee.
Rate of Contributions:
Employee Contribution : 0.75% on monthly wage

Employer Contribution : 3.25% on monthly wage

Total Contribution : 4.00% on monthly wage

Wage means under this act is Basic, D.A, HRA, City

Compensatory Allowance, Overtime Wages, Payment of day of
Rest, Production Incentive, Night Shift Allowance, Meal / Food
allowance, Suspension Allowance, Layoff Compensation and
Children Educational Allowance (not being reimbursement of
actual fee).
 Contribution Period : Benefit Period

1st July to 31st December 1st October to 31st March

1st April to 30th September 1st January to 30th June

 Benefits under this Act
Sl. Name of the
Contributory Conditions Duration Rate
No. Benefit

78 Days to be contributed 91 Days in any two

1 (a) Sickness Benefit in the relevant Consecutive Benefit 50% of Wages
Contribution Period Periods.

Continuous Employment
309 Days Duration
for a period of 2 Years 140% of the
Extended (91 Days S.B + 309
(b) and Payment of Standard Benefit
Sickness Benefit Days E.S.B) Total
Contribution for 156 days Rate
400 Days Duration
in 4 Contribution Periods.

78 Days to be contributed 7 Days for Twice the

Enhanced
(c) in the relevant Vasectomy and 14 Standard Benefit
Sickness Benefit
Contribution Period Days for Tubectomy Rate

2 Disablement Benefit (Employment Injury or Occupational Disease)

Temporary 140% of the
Till the incapacity
(a) Disablement No Condition Standard Benefit
Lasts
Benefit Rate

Permanent Upto 140% of the

(b) Disablement No Condition for Life Standard Sickness
Benefit Benefit Rate
Sl. Name of the Contributory
Duration Rate
No. Benefit Conditions

140% of the
Dependents' To immediate Standard
3 No Condition
Benefit Dependants Sickness Benefit
Rate

12 Weeks of which
Payment of Contribution not more than 6 can
Double the
for 70 in immediately precede the
Standard Benefit
4 Maternity Benefit preceding 2 expected date of
Rate (Not less
Consecutive Confinement; 6
than Full Wages)
Contribution Periods. weeks for
miscarriage.

To start with for a

period of 3 months
No Condition (Insured
or till the spell of
Person & his family is Full medical Care
treatment lasts
5 Medical Benefit eligible form the date of facilities including
whichever is later
insured person into Hospitalization.
and thereafter
insurable employment)
based on payment
of Contribution
Sl. Name of the
Contributory Conditions Duration Rate
No. Benefit
6 Other Benefits
Not exceeding Rs.
(a) Funeral Expenses No Condition ---
2500/-
Insured Person
admitted in Artificial Double the
Rehabilitation Limb Centre for Standard Benefit
(b) No Condition
Allowance fixation / repair / Rate (Not less
replacement of than Full Wages)
Artificial Limbs
Insurable employment
Till such training
Vocational & upto 40% permanent
(c) lasts at a recognized ---
Rehabilitation disablement and below 45
centre / institute.
years age
Medical Benefit
On payment @ of Rs. 10/- Full Medical Care
for Retired and Period for which
(d) per month in lump-sum for self and
Disabled Insured contribution is paid
for one year in advance spouse only.
Persons)
Rs. 1000/- is paid as
At places where
a lump-sum grant
No Condition other than necessary medical
towards confinement
(e) Medical Bonus insurable employment of facilities are not
expenses to an
Self / Spouse. available under
insured worman wife
the ESI Scheme.
of insured person.
 Time Limit for Making Payment of Contributions:
 The total contribution amount is to be deposited with the
authorized bank through challan in quadruplicate on or
before 15th of month falling the calendar month in which
the wages fall due.
 Accident Report to be sent:

Accident Report in Form 16 to be

submitted within 24 hours on ordinary
cases and immediately in death cases or
serious injury cases to the Concerned ESI
Local Office.
 Registers to be maintained:
 Employee Register in Form 7.

 Inspection Book.

 Accident Register in Form 15.

 File for Copies of Return of Declaration Forms.

 File for Copies of Return of Contribution, Challans etc.

 File for Accident Reports and its Correspondence.

 File for General Correspondence with Regional Office

regarding Coverage, Inspection ect.
 ESI Forms:
Form No. Title
01 Employers' Registration Form
1 Declaration Form
3 Return of Declaration Form
1-B Change in the Family particulars of the Employees
6 Return of Contributions
16 Accident Report
32 In Accident Cases (For wage verification)
37 Certificate of Re-Employment / Continuing Employment
Application for Chang of Dispensary, Residential Address, Code No.
53
and Local Office etc.
71 Wage / Contribution Record
72 Application for Duplicate Identity Card
Certificate of Employment issued to an IP by an employer for
86 entitlement of Medical Benefit to Newly Appointed Employees
before their Identity Cards are not received.
 Power to recover damages:

Where an employer fails to pay the amount due in respect of any contribution
or any other amount payable under this act.

Any damages may be recovered as an arrear of land revenue.

Period of Delay in Payment Rate of Damages on

Of Contribution the amount due

Less than 2 Months 5%

2 Months - 4 Months 10%

4 Months - 6 Months 15%

6 Months and Above 25%

The Employee Compensation Act,
1923
 Introduction:

The depended of workmen claim the compensation

in rare cases according to the act Fatal accidents
Act, 1885. After that the government of India
enacted the act Workmen compensation Act, 1923.

Objective:

The objective of the act impose an obligation on

employers to pay compensation for who caused an
accident out of or in the course of employment.
 Coverage of Workmen:
 All workers irrespective of their status or salaries.

 Recruited either directly or through contractor or

 A person recruited to work abroad.

But

A workman covered under ESI Act is not entitled to get

compensation under Workmen’s Compensation Act, as
per section 53 of ESIC.
Employer’s Liability to pay Compensation:

On death or personal injury resulting into total or partial

disablement or occupational disease caused to a workman arising
out of and during the Course of employment.

When an employee is not liable for Compensation:

Any injury, which does not exceeding 3 days.

The workmen under the influence drink or drugs.

Willful disobedience of the workman to an order expressly

given for securing the safety.

Willful removal or disregard by the workman of any safety

guard.
Report of Fatal Accidents:

To give the notice with in 7 days of the death or serious bodily

injury to Commissioner of W.C in Form EE.

Power of Commissioner to require the information from

Employer:

With in 30 days the employer indicating the circumstances how to

arise the death or accident.

If the employer is of opinion that he is not liable to deposit

compensation, he shall in his statement indicate the grounds on
which he disclaims liability.
Kinds of Compensation:

Compensation in case of Death:

50% of Monthly Wage X Relevant Factor.

Permanent Total Disablement:

60% of the Monthly Wage X Relevant Factor (or

90,000/- whichever is more)

Permanent Partial Disablement:

60% of Monthly Wage X Loss of % of Earning

Capacity X Relevant Factor.

Temporary Disablement:

25% of the Monthly Wage.

 Power of Commissioner to require the information
from Employer:

 With in 30 days the employer indicating the

circumstances how to arise the death or accident.

 If the employer is of opinion that he is not liable to

deposit compensation, he shall in his statement indicate
the grounds on which he disclaims liability.
Penalties:

In case of default by employer –

 50% of the Compensation amount + interest to be

paid to the Workman or his dependents as the case
may be.

Deposit of Compensation –

 Within one month with the Compensation

Commissioner.
The Payment of Bonus
Act, 1965
 Introduction:
Bonus it is an additional payment and a boon or gift over
or above remuneration.

 The bonus was introduced by Bombay and Ahmedabad

Textile industry. After First World War the textile mills gained
profits consequently, in July 1917 increased the bonus 10%,
called as (War bonus).

 This was increased to 15% in January 1918. At the end of the

year a strike was commenced in century mill. It spread to all
textile mills the ultimate result was increased the bonus 35%.

 After that the mill owners regretted inability to continue the

payment of bonus. A strike began in January 1924.
Consequently a bonus dispute committed, headed by Sir
Norman McLeod, the Chief Justice of the Bombay H.C.
Objective:

To maintain peace and harmony between Labour and Capital.

Applicability:

It applies to every factory or establishment, where the employees

working not less than 10 with the aid of power, without 20
persons.
Eligible Employees:

 Employees drawing wages upto Rs. 21,000/- per month

or less.
Eligibility of Bonus

 An Employee will be entitled only when he

has worked for 30 working days in the
year.
Components of Bonus:

Salary or wages includes Dearness Allowance but no other allowance e.g.

Over – time, House Rent, Incentive or Commission.

Computing working days:-

While computing number of working days, an employee shall be deemed to

have worked in an establishment even on the days on which

(a) He was laid off

(b) He was on leave with salary/wages

(c) He was absent due to temporary disablement caused by accident

arising out of and in course of employment

and

(d) Employee was on maternity leave with salary/wages.

 Minimum Bonus : Maximum Bonus
 Minimum Bonus :

8.33% of the Salary or Rs. 100.00

whichever is high.

Maximum Bonus :

20% of the Salary.

Time Limit for Payment of Bonus

* With in 8 months from the close of accounting year.

Computation of Available Surplus:

It means Gross Profit for that year after deducting there from
those sums..

 Income Tax and Direct Taxes as payable.

 Depreciation as per section 32 of Income Tax Act.

 Development rebate, Investment or Development

Allowance.
 Disqualification and Deduction of Bonus

 On Dismissal of an employee for Fraud

 Riotous or violent behavior while on the premises of the

establishment.

 Theft, Misappropriation or sabotage of any property of

the establishment.

 Misconduct of causing financial loss to the employer to

the extent that bonus can be deducted for the year.
Maintenance of Registers and Records

 Allocable Surplus Register.

 Set On or Set Off Register.

 A register showing the Bonus Due Amount to each

employee.

Submission of Returns:

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

time limit .
Penalty

For Contravention of any Provision of the Act or

the Rules:

Upto 6 months or with fine upto Rs.

1000/-

*-*-*
Payment of Gratuity Act,
1972
Applicability:

 This act applicable too every factory,

mine, oilfield, plantation, port, railways,
company, shop, establishments or
educational institutions employing 10 or
more persons.
 Objective:
The act provides for a scheme of compulsory payment of gratuity to
employees engaged in factories, mines, plantations, oilfields, ports,
railway companies, motor transport undertakings, shops or other
establishments and for matters connected therewith or incidental
thereto.

Gratuity is payable to a person on

 Resignation

 Termination on account of death or disablement due to accident or

disease

 Retirement

 Death.

Normally, gratuity is payable only after an employee completes five

years of continuous service. In case of death and disablement, the
condition of minimum 5 years’ service is not applicable.
 Calculation of Gratuity:
a) In Case of Monthly Paid workman:

15 Days wage for Every Completed Year of Service.

b) In Case Piece – Rated employee:

15 days wages for every completed year on an average of 3

months wages

c) In Case of Seasonal Employment workman:

7 days wages for every completed service.

 Nomination

Under this Act Nomination to be obtained by

employer after expiry of one year’s service, in
Form F.
Maximum Gratuity:

Maximum Gratuity is not exceeding

Rs. 20 Lakhs
 Penalties

 Imprisonment for 6 months or Fine upto Rs.

10,000/- for avoiding to make payment by
making false statement or representation.

 Imprisonment not less than 3 months and upto

one year with fine on default the provisions of
the Act or Rule.
The Industrial Disputes Act, 1947
 Introduction:
After the First World War, there was a great outbreak for industrial unrest,
which led to the passing of the Trade Disputes Act by the Government of
India in the year 1929. It contained special provisions regarding strikes in
public utility services and general strikes. This act was amended in the year
1938, authorizing the Central and provincial Governments appoint
conciliation officers for mediating and settle the disputes.
 
After the Second World War. Rule 81-A gave powers to the appropriate
government to intervene in industrial disputes, appoint industrial tribunals
and enforce the award of the tribunals on both sides.
 
The Industrial Disputes Bill was introducing in the Central Legislative
Assembly on 8th October 1946.
 
The bill was passed by the Assembly in March 1947 and became law with
effect from 1st April 1947.
Objective:

Objective of the act to investigate settlement,

to promote amity, to Prohibit Industrial Strikes
and Lockouts. To provide compensation
through collective bargaining.
 Important Definitions under this Act:

1. Industrial Dispute:

Any Dispute or difference between employer and employer, or

employer and workmen or workmen and workmen, which is connected
with employment, or with the conditions of the labour, of any person.
 
2. Lay-off:
 
Failure, inability or refusal by an employer on account of shortage of
Cole, Power or raw material, or of accumulation of stock or for break
down of machinery or for natural calamity or for any other connected
reason to give employment to a workman whose name is born on his
industrial establishment and who has been retrenched.
 
(Prior permission for Lay-off to be required when there are more than
100 workmen during preceding 12 months)
 
3. Lock-out:
 
It means the temporary closing of the place of employment or the suspense
of work or refusal by an employer to continue to employ any number of
persons employed by him.
  
4. Retrenchment:
 
It means the termination by the employer the services of a workman for any
reason whatsoever, otherwise than as a punishment inflicted by way of
disciplinary action. (Prior permission by the Government for Retrenchment
when more than 100 workmen during preceding 12 months)
 
5. Settlement:
 
It means settlement arrived at, in the course of a conciliation proceedings
and includes a written agreement between employer and workman arrived at
otherwise than in the course of conciliation proceedings where such
agreement has been signed by the parties thereto in such a manner as may
be prescribed and a copy thereof has been send to the Appropriate
Government and the conciliation officer.
6. Strike:
 
Strike means the cessation of work by a body of persons employed in
any industry or concerted refusal, or refusal under a common
understanding of any number of persons who are, or who have been so
employed to continue to work or accept employment.
 
7. Workman:
 
Workman means any person (including an apprentice) employed in any
industry to do any manual, unskilled, skilled, technical, operational,
clerical or supervisory work for hire or reward, whether the terms of
service expressed of implied.
 
Dismissal etc., of an Industrial workmen to be deemed to an Industrial
Dispute.
 Authorities under this Act (Chapter – II)
1. Works Committee

2. Conciliation Officers

3. Board of Conciliation

4. Court of Inquiry

5. Labour Courts - to adjudicate any matter specified in 2nd

Schedule.

6. Tribunals – To adjudicate any matter specified in 2nd or 3rd

Schedule.

7. National Tribunals – To adjudicate any matter involved question

of national importance or of such nature the Industrial
Establishment situated in more than one state.
 Notice of Change (Chapter – II A)

Notice of Change in Form – E : 4th Schedule

Matters. (21 days by an employer to workmen
about changing the conditions of service as per
schedule 4th )

  Power of Govt. to exempt.

  Chapter – II B:
 
Setting up Grievance Settlement Authority (50 or
more workmen) and reference of certain Industrial
Disputes to such authority.
 Reference of Disputes to Boards, Courts or Tribunals

(Chapter – III)

Where the parties to an Industrial Disputes apply

in the prescribed manner, whether jointly or
separately for a reference of dispute to a Board,
Court (Labour, Tribunal or National Tribunal), if
satisfied that the persons applying representing
to majority of each party, shall make the
reference accordingly.
 
Individual Workman’s dispute shall be
adjudicated within 3 months.
 
 Procedure, Power and Duties of Authorities
(Chapter – IV)
Power of Labour Court, Tribunals and National Tribunals to give
appropriate relief in case of discharge or dismissal of workman.
Power of Labour Court, Tribunal to execute its Award by decree.
 Duties of Conciliation Officer (with in 14 days)

 Duties of Board (with in 2 months)

 Duties of Labour Court, Tribunal & National Tribunal.

 Publication of reports and awards with in 30 days.

 Commencement of award expiry of 30 days of publishing.

 Payment of full wages to workmen pending proceedings in High

Court.
 Persons to whom settlement and awards are binding.

 Parties to the agreement.

 Parties to the agreement who referred the dispute to Arbitration .

 A Settlement arrived, in the course of conciliation or adjudication by

courts or tribunals the parties.
Prohibition of unfair labour practice either by
employer or workmen or a trade union as
stipulated in 5th Schedule – Both the employer
and the Union can be punished.
 
 Compensations
Lay-off Compensation:
 
Payment of wages except for intervening weekly
holiday compensation 50% of total or basic wages and
DA for a period of lay off up to maximum 45 days in a
year.
 
Retrenchment Compensation:
 
15 days wage for every completed year of to be
calculated at last drawn wages.
 
One Month notice or wages in lieu thereof.
 
 Prohibition of Strikes and Lockouts
 Without giving to the employer notice of strike, as hereinafter provided within
six weeks before striking.
 Within 14 days for giving such notice.
 Before the expiry of the date of strike specified in any such notice as
aforesaid.
 During the pendency of any conciliation proceedings before a conciliation
officer and 7 days after the conclusion of such proceedings.
 During the pendency of any conciliation proceedings before a Board and 7
days after the conclusion of such proceedings.
 During the pendency of any conciliation proceedings before a Labour Court,
Tribunal or National Tribunal and two months after the conclusion of such
proceedings.
 During any period in which a settlement or award is in operation, in respect of
any of the matters covered by the settlement or award.
  
 Offences & Punishments
Sl. No. Offence Punishment
Committing unfair Labour
Imprisonment upto 6 months or
1 PracticesImprisonment upto 6
with fine upto Rs. 3000/-
months or with fine upto Rs. 3,000/-
Imprisonment upto one month or
2 Illegal Strike and Lock-out with fine upto Rs. 50/- (Rs. 1000/-
for lock-out.)
Giving financial aid to illegal strikes Imprisonment upto 6 monthsor
3
and lock-outs with fine upto Rs. 1000/-
imprisonment upto 6 months or
4 Breach of Settlement or award continuity of offence fine upto Rs.
200/- per day
 THE CONTRACT LABOUR

(REGULATION & ABOLITION) ACT, 1970

 Introduction
 The Whitley Commission (1929-1931) recommended the
abolition of contract labour by implication. A serious note on
this aspect of labour was taken in the Second Five-Year Plan
document, which observed that the major problem of contract
labour related to regulation of their work.

 The NCL recommendations made certain observations in the

year (1966-69).

 The Contract labour (Regulations and Abolition) Act, 1970, is a

piece of central legislation, which provides for the abolition of
the contract labour wherever possible and for the regulation of
the conditions of contract labour in establishment or
employments.
  
 Objective
 To regulate employment of Contract Labour in certain
establishments and to provide for its abolition in certain
circumstances and for matters concerned herewith.
 
 Applicability:

 Every establishment in which 20 or workmen are employed

or were employed on any day of the preceding 12 months
as Contract Labour.
 
 Every Contractor who employs or who employed on any
day of the preceding 12 months 20 or more workmen.

 But, Contract Labour act will not apply to establishment

where work of an intermittent or casual nature is performed.
  
Registration of the Establishment

 Principal Employer employing 20 or more workers

through the Contractor or the Contractors, he will
registered the establishment in Form I with prescribed
fee.
 
 In case of renewal, renewal application is required to
be made 30 days in advance with the requisite
information to be furnished in Form VII.
Licensing of Contractor

Engaging 20 or more than 20 workers and on deposit

of required fee in Form V. License is valid for specific
period only.
 Prohibition of Contract Labour
The employment of Contract Labour under the Act is permissible
in different processes / operations in the industry, unless it is
prohibited in accordance with the procedure laid down
under the Act.
 Whether process, operation or other work is incidental to or
necessary for the industry, trade, business, manufacture or
occupation that is carried in the establishment.

 Whether it is a perennial Nature. (In this case the decision of the

appropriate Govt. thereon shall be final).

 Whether the work done ordinarily through regular workmen in

the establishment or an establishment similar thereto.

 Whether it is sufficient to employ considerable number of whole

time workmen.
  
Welfare measures to be taken by the
Contractor

 Contract Labour either 100or more employed by a

contractor for one or more Canteens shall be provided
and maintained.

 First Aid Facilities.

 
 Number of Rest Room.

 Drinking Water, Latrines and Washing Facilities.

 Liability of Principal Employer

 To ensure the provisions for Canteen, Rest-

Rooms, Sufficient Supply of Drinking Water,
Latrines and Urinals, Washing Facilities etc.

 Principal employer entitled to recover from the

contractor for providing such amenities or to
make deductions from amount payable.
 Returns & Registers
S. No. Name of the Return / Register
1 Register of persons employed by contractor in Form - XIII

2 Register of Contractors in Form XII

3 Muster Roll in Form XV

4 Register of Wages in Form XVII

5 Muster Roll - cum - Wae Register in Form XVIII

6 Register of Fine in Form XXI

7 Register of overtime in Form XXIII

8 Register of Deductions in Form XIX

9 Register of Advances in Form XXII

10 Wage Slip in Form XIX

11 Employment Cards in Form XIV

12 Sufficient no. of First Aid Box vide Rule 59 (1)

13 Half Yearly Returns in Form XXIV

14 Annual Returns in form XXV

 Penalties

Sl. No. Offence Punishment

For obstructing the inspector or failling to produce

1 Obstructions registers etc. - 3 months imprisonment or fine upto
Rs. 500/- or both.
For violation of the rovisions of Act or the Rules -
imprisonment of 3 months or fine upto Rs. 1000/-.
2 Voilation
On continuing Contravention, additional fine upto
Rs. 100/- per day.
THE MINIMUM WAGES ACT, 1948
Introduction:

International Labour Organization (ILO) which

provides machinery for fixing the minimum wage
where the actually wage levels are low. In India
the Royal Commission on Labour, appointed in
1929, stressed the need for fixing minimum
wages for workers employed in certain
industries. The minimum wages act was
enacted in the year, 1948.
 Objective

To provide for fixing minimum rate of

wages in certain employments and
intended to achieve the object of doing
Social Justice to the workers employed in
the Scheduled Employment and the
wages must be paid in cash only.
 Fixation of Minimum Rates of Wages

 The appropriate Government to fix

minimum rates of wages. The employees
employed under Par-I or Part – II of
Schedule.

 To make review at such intervals not

exceeding 5 years the minimum rates or
so fixed and revised the minimum rates.
 Procedure for fixing and revising Minimum Rates of
Wages
 Representation of employer and employees in scheduled
employment in equal number and Independent persons not
exceeding 1/3rd or its total number one such person to be
appointed by the Chairman.

 Appointing a Committee and issue of Notification.

Payment of Minimum Rates of Wages

 Employer to pay to every employee engaged in scheduled

employment at a rate not less than minimum rates of wages as
fixed by notification by not making deduction other than the
prescribed.
 Wage for two classes of work
 Where an employee does two or more classes of work
to each of which a different minimum rate of wages is
applicable, wages at not less than the minimum rate in
respect to each such class.

Overtime Wages

 The employer can take actual work on any day upto 9

hrs. in a 12hrs shift, but he must pay double the rates
for any hour or part of an hour of actual work in excess
of nine hours or for more than 48 hours in any week.
(1 ½ times for agriculture labour)
Maintenance of registers and records

 Register of Fines
 Register for Over time
 Register of Wages
 Wage Slip
 Muster Roll and
 Annual Returns
 Penalties

Sl. No. Offence Punishment

For paying less than Imprisonment upto 6months or with fine upto
1
minimum rates of wages Rs. 500/- or both.
For Contravention of any
provisions pertaining to
2 Fine upto Rs. 500/-
fixing hours for normal
working day
Statutory Registers &
Returns under various
Labour Laws
 Pertaining to Notice Board Displayed (in
Periodical Records / Returns to be maintained
Sl. English, Hindi and Local Language)
Name of the Act
No. S. Appropriate S.
Name of the Return / Register Due Date Name of the Notices
No. Authority No.
Register of persons employed by contractor in
a - N.A - a The Rates of Wages
Form - XIII

b Register of Contractors in Form XII - N.A - b The Hours of Work

c Muster Roll in Form XV - N.A - c The Wage Period

d Register of Wages in Form XVII - N.A - d Date of Payment

Name and Address of Inspector having

e Muster Roll - cum - Wae Register in Form XVIII - N.A - e
Jurisdiction

f Register of Fine in Form XXI - N.A - f Date of Payment of Unpaid Wages

Abstract of Act and Rule in the form approved by

g Register of overtime in Form XXIII - N.A - g
Contract Labour Office of the Chief Labour Commissioner (Central), New Delhi
1 (Regulation & Abolition) Commissioner
Act, 1970 h Register of Deductions in Form XIX - N.A - of Labour h Copy of the Certificate of registration

i Register of Advances in Form XXII - N.A -

j Wage Slip in Form XIX - N.A -

With in 3
k Employment Cards in Form XIV
days
for every
I Sufficient no. of First Aid Box vide Rule 59 (1)
150 emps.
31st July &
m Half Yearly Returns in Form XXIV
31st Jan.
15th
n Annual Returns in form XXV
February
 Pertaining to Notice Board Displayed (in
Periodical Records / Returns to be maintained
Sl. English, Hindi and Local Language)
Name of the Act
No. S. Appropriate S.
Name of the Return / Register Due Date Name of the Notices
No. Authority No.
Register of Building Workers employed in Form
a - N.A - a The Rates of Wages
XV

b Muster Roll in Form XVI - N.A - b The Hours of Work

c Register of Wages in Form XVII - N.A - c The Wage Period

d Registe of Fine in Form XX - N.A - d Date of Payment

Name and Address of Inspector having

e Register of Advance in Form XXI - N.A - e
Jurisdiction
Building and Other Office of the
2 Construction Workers f Register of Overtime in Form XXII - N.A - Commissioner f Date of Payment of Unpaid Wages
(RE&CS) Act 1996 of Labour
Register of Dductions for Damage or Loss in Abstract of Act and Rule in the form approved by
h - N.A - g
Form XLX Chief Labour Commissioner (Central), New Delhi

i Health Register in Form XII - N.A - h Copy of the Certificate of registration

As and
Service certificate to Building Workers on Notice of commencement / completion of work in
j when i
termination of their service in form XXIV Form IV in time to the Insector
required
Change in particulars of notice of
j commencement / cinoketuib to the inspector
with in 2 days
 Pertaining to Notice Board Displayed (in
Periodical Records / Returns to be maintained
English, Hindi and Local Language)
Sl.
Name of the Act
No.
S. Appropriate S.
Name of the Return / Register Due Date Name of the Notices
No. Authority No.

a Muster Roll in Form V - N.A - a Minimum rates of wages fixed

b Register of Wages in Form X - N.A - b Abstract of the Act and Rules

Name and Address of Inspector having

c Register of Overtime in Form IV - N.A - c
Jurisdiction
Office of the
Minimum Wages Act,
3 d Register of Fines in Form I - N.A - Commissioner
1948
of Labour
e Registe of Deductions for Damages - N.A -

f Wage Slips - N.A -

31st
g Annual Returns in Form: III
January
Office of the
Equal Remuneration Act,
4 a Register in Form D - N.A - Commissioner
1976
of Labour.
 Pertaining to Notice Board Displayed (in
Periodical Records / Returns to be maintained
English, Hindi and Local Language)
Sl.
Name of the Act
No.
S. Appropriate S.
Name of the Return / Register Due Date Name of the Notices
No. Authority No.
10days of
a Quaterly Returns in Form XXVII every Registration Certificate
Quarter end.

b Register of Fines in Form - X - N.A -

Office of the
Shops & Establishment
5 c Register of Advances of Wages in Form - XII - N.A - Commissioner
Act.
of Labour.

d Register of Wages in Form - XXIII - N.A -

e Register of Leave in Form - XXV - N.A -

30dyas after
a Quaterly Returns Form: ER-1 every
Office of the
Quarter end
District
Employment Exchanges As and w hen Employement
6 b Notifications of Vacancies
Act required Exchange,
Once in 2 R.R.Zone
c Bi-annual Returns
years
 Pertaining to Notice Board Displayed (in
Periodical Records / Returns to be maintained
Sl. English, Hindi and Local Language)
Name of the Act
No. S. Appropriate S.
Name of the Return / Register Due Date Name of the Notices
No. Authority No.
Office of the
31st
7 Maternity Benefit Act a Annual Returns in Form: L M N O Commissioner
January
of Labour.
15th of
a Monthly Challan
every month

25th of
b Monthly Retuns in Form 5, 10 & 12A
every month

c Annual Retuns in Form 3A & 6 30th April

Office of the
Employees P.F. & Mis.
8 Regional P.F.
Provisions Act Employee Nomination & Declaration Forms in Along with Commissioner.
d
Form 2A Form 5

e Eligibility Register - N.A -

f Inspection Book - N.A -

 Pertaining to Notice Board Displayed (in
Periodical Records / Returns to be maintained
Sl. English, Hindi and Local Language)
Name of the Act
No. S. Appropriate S.
Name of the Return / Register Due Date Name of the Notices
No. Authority No.
21st of
a Monthly Challan
every month
11th
b Half Yearly Returns (April to Sept)
November
Office of the
c Half Yearly Returns (October to March) 11th May Regional/Asst.
Employee State
9 Director, ESI /
Insurance Act
d Employee Register in Form 7 - N.A - Manager, ESI
Local Office.

e Accident Register - N.A -

f Inspection Book - N.A -

Office of the
10 Payment of Bonus Act a A, B & C Registers - N.A - Commissioner
of Labour.

a Register of Fines, Deductions and Advances - N.A - Office of the

11 Payment of Wages Act Commissioner
31st of Labour.
b Annual Returns
January
 LAW

The body of principles recognized

and applied by the state for the
administration of justice.
How Labour Law Links with
HR Activities?
HRM deals with : -
Procurement:
Employment Exchanges Compulsory
Notification of Vacancies Act, 1959
Development:
Factories Act, 1948 For Developing
the working conditions.
Compensation:
Minimum Wages Act, 1948
Integration:
I.D Act, 1947
Maintenance:
Standing Orders Act, 1946
Separation:
Payment of Gratuity Act, 1972
 Parts of Labour Law

Law Relating to Working Conditions

Law Relating to Working Conditions

Law Relating to Industrial Relations

Law Relating to Social Security

Law Relating to Employment & Training

Law Relating to Working conditions

Factories Act, 1948

Shops and Establishment Act, 1988

Contract Labour R&A Act, 1970

Law Relating to Wage & Salary

Minimum Wages Act, 1948

Payment of Wages Act, 1936

Payment of Bonus Act, 1965

 Law Relating to Industrial Relations

Industrial Employment Standing Orders Act, 1946

Industrial Disputes Act, 1947

Trade Unions Act, 1926

 Law Relating to Social Security
Work Man Compensation Act, 1923

Payment of Gratuity Act, 1972

Employees State Insurance Act, 1948

Employees Provident Fund and Miscellaneous Act, 1952

Maternity Benefit Act, 1961

Law Relating to Employment & Training

Apprentices Act, 1961

Employment Exchanges & Vacancies Act, 1959

Thanking you.