indian labour_law

7/28/2019 Indian labour_law

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Act To Whom it applies (Employers) Beneficiaries under the

Act (Employees)

Payment of Bonus Act, 1965 a) Every factory (as defined in

Factories Act).

Employees other than

apprentice

Salary or wage : b) Every other establishment in

which 20 or more persons (less than

20 but 10 or more if app. Govt.

notifies) are employed on any day

during the accounting year.

a) Who have worked for

more than 30 days in a

financial year.

includes c) Special provisions with respect to

certain establishments are provided

b) Having salary / wages

less than Rs. 10000/-

All remuneration other than

overtime and includes DA, and

retention allowances

d) Employees employed through

contractors on building

operation.

c) For persons drawing

salary between Rs. 3500/-

and

Does not include : Rs. 10,000/- per month,

bonus will be based on

salar ofi) any other allowance which the

employee is for the time being

entitled to

Rs. 3500/- per month

only.

ii) the value of house

accommodation or of supply of

light, water medical attendance or

other ammenity or of any service

or of any concessional supply of

foodgrains or other articles.

iii) any travelling concession

iv) any Bonus (including incentive,

production and attendance Bonus

v) any contribution paid or payable

by empoyer to any pension fund or

PF

LABOUR LAWS


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vi) any retenchment compensation

Gratuity or Ex gratia payment

vii) any commission payable to the

employee.

Payment of Gratuity Act, 1972 a) Every factory (as defined in

factories Act) mine, oil field,plantation port and railway

company.

a) Any person employed on

wages (other thanapprentice)

Wages b) Every shop or establishment towhich shop and establishment Act of

a state applies in which 10 or more

persons are employed on any day of

the preceding 12 months.

b) At the time ofretirement/ resignation on

superannuation, an

employee should have

rendered continuous

service of not less than 5

years.

Includes : c) Any establishment employing 10

or more persons as may be notified

by the central Government.

c) In case of death or

disablement, the gratuity is

payable even if he has not

completed 5 years of

service.

i) All emoluments earned by the

employee while on duty or on

leave including DA,

Does not include :

Bonus, Commission, HRA, over

time and any other allowance.


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Industrial Disputes Act, 1947

Wages :

Includes:All remuneration

capable of being expressed in

terms of money like

i) Basic wages, D.A. value of free

food or food allowances in lieu of

whole or part of the wages,

overtime and other allowancesii) Value of House accommodation,

supply of light and water, medical

attendance or other amenities or

any service or of any concessional

supply of food grains or other

articles,

iii) Value of travelling concession,

iv) Any commission payable on

promotion of sales or business or

both.

Any person (including

apprentice) employed in

any industry to do any

manual, unskilled, skilled,

teaching, operational,

clerical, Supervisory work

for hire,reward and

includes any such persons

who has been

dismissed,discharge,retrenc

hed but does not include

aperson who is employed

mainly in managerial or

administrative capacity and

draws more than Rs.6500/-

p.m.and persons employed

in defence /police force.

(Amended w.e.f.

26.6.2006).

Any industry carried by or under

authority of any dept.of Central /

State Govt. or local authority or any

other industry ( excluding any

agricultural operations,

hospitals/dispe-saries, educational,

scientific research or training

institutions

charitable/social/philanthropic

services,khadi or village

industries,activities related to

defence research automic energy

and space any domeshtic

services,professional concern and

co.op.society/club employing less

than 10 persons. Not applicable to

dispute arising after closure of the

industry.


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Does not include:

i) Any Bonus

ii) PF, Pension or Gratuity


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Employees Provident Funds

and Miscellaneous Provisions

Act, 1952

a) Every establishment which is a

factory engaged in any industry

specified in Schedule I and in which

20 or more persons are employed

and

Any person who is

employed for wages in any

kind of work of an

establishment or employed

through contractor in or in

connection with the work of

an establishment and

whose wages do not

exceed Rs. 6,500/- p.m.

However, an employee

covered under the Act will

continue to be covered

under the Act even if his

wages exceed Rs. 6,500/-

p.m. but will continue to

get benefits as if his wages

were Rs. 6,500/- p.m.

Bacis wages :- b) Any other establishment

employing 20 or more persons,

whom Central Govt. may, notify.

In case of International

workers PF is

applicabale on entire

salary. As per

notification dated 1st

Oct, 2008.

Includes :- c) Any establishment employing

even less than 20 can be covered by

a specific Central Govt. notification.

All emoluments earned while on

duty on leave and holidays)

Does not include :-

Value of food consession, DA,HRA, overtime allowance, any

Bonus, Commission or similar

allowance. contribution is payable

on D. A. also as per sect. 6 of the


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The Workmens Compensation

Act, 1923.

Wages :-

Wages Include:

Any Privilege or benefit which is

being capable of estimated in

money, other than travelling

allowance or the value of travelling

concession or a contribution paid

by the employer of a workman

towards any pension or PF or a

sum paid to a workman to cover

any special expenses entailed on

him by the nature of his

The Employees State

Insurance

a) All factories excluding seasonal

factories

a ) Any person employed

for wages (up to Rs.10000/-

w.e.f. 1.10.2006) in or in

connection with the work of

a factory or establishment

and

a) Employer includes any person

whether incorporated or not and

any agent of employer and when

services are temporarily lent or let

on hire to anotherperson, then

means such other person.

Any workman who is

injured by accident arising

out of and in the course of

his employment, or any

workman, employed in

specified list of

employment, contracts any

disease specified therein as

an occupational disease

peculiar to that occupation.


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Act, 1948. i) employing 10 or more persons if

working with power.

b) Any person who is

directly employed by the

employer in a factory or

through is agent on work

which is ordinarily part of

the work of the factory or

incidental to pupose of the

factory.

Wages : ii) employing 20 or more persons if

working without power.

c) Rate of contribution of

the wages:

include : b) Shops employing 20 or more

persons.

For Employer - 4.75%

i) All remuneration paid or

payable in cash to the employee

including payment in respect of

period of authorised leave, lock-

out, strike which is not illegal or

lay-off

c) Any establishment specially

notified by the Government.

For Employee - 1.75%

ii) Other additional remuneration

paid at interval not exceeding 2

months

d) Contribution period :-

1st April to 30th September

1st October to 31st March

Does not include : e) Benefit period 1st

January to 30th June/ 1st

july to 31st December


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i) Contribution to PF, Pension or

Gratuity payable on discharge,

f) Date of submission of

return :- within 42 days

from the end of

contribution period.

ii) Any travelling allowances or

value of any travelling concession,

iii) Sums to be defray special

expenses by nature of

em lo ment.Employees who : a) Members

i) have been members of the

Employees Pention Scheme, 1971.

b) Heirs will be paid the

pension as per the Scheme

provided in the Rules.

ii) On or after 16.11.95 become

members of employees P.F.

Scheme 1952.iii) who have been members of the

employees P. F. Scheme, 1952 opt

to join within 6 months from

16.11.1995.Minimum Wages Act, 1948. Any person who employs directly

or through another person,

wheather for himself or for any

other person employes one or more

employees in any scheduld

employment in respect of which

Any person who is

employed for hire/reward

to do any work in a

scheduled employment and

includes an outdoor worker

to whom any articles or

The employees Pension

Scheme, 1995.


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Wages :

Includes :-All Remuneration

being expressed in terms of

mone includin

HRA - Does Not Include :-i) Value of House Accommdation

supply of light, water, medical

attendance.ii) any other amenity or any

service, excluded by an order of

the A ro riate Government.iii) any travelling allowance or any

value of travelling concession.

iv) any sum paid to defray special

expenses entitled due to nature of

em lo mentv) any Gratuity payable on

discharge

Payment of Wages Act, 1936. a) Every person employed in any

factory, upon any railway or through

sub-contractor in a railway and a

person employed in an Industrial or

other establishment

Wages b)The State Government may by

notification extend the provision to

any class persons employed in any

establishment or class of

establishments.

a ) Includes :-

i) All remuneration by way of

salary or allowance capable ofbeing expressed in terms of

money.

fixed under this Act. doing some work either at

home / any other premises.

Every person who is

employed in any of the

above mentioned

etablishments and who is

drawing less than Rs.

6,500/- per month.

(Amended w.e.f.

11.08.2005)


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ii) Payable under any Award or

Settlement.

iii) On account of overtime,

holidays, leave, production,

attendance, bonus etc.

iv) Payable by reason of

termination which dose not

provide for the time within which

the a ment is to be made.v) To which the person employed

is entitled under any scheme

framed hereunder any law for the

time bein in force.b ) Dose Not Include

i) Bonus (wheather under a

scheme of profit sharing or

otherwise) which dosent form part

of remuneration payable under the

terms of employment or which is

not payable under the Award

ii) Value of house accomadation or

of light, water, medical attendance

or other amount or of any services

excluded from the competition of

wages by the Government.

iii) P. F. and Gratuity

iv) Travelling allowance

v) Any sum paid to defray special

expense due to nature of his

em lo menta ) State of Maharashtra, Local

Areas given in Schedule I, Areaswhere C.P. and Berar and

Hyderabad Shops and Establisments

Act were applicable before the

amending Act of 1960.

All EmployeesThe Bombay Shops &

Establishment Act,1948


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b ) Local areas having population

more than / less than 25,000 by

Notification ( Section 1 )

MINIMUM WAGES TO

BE PAID TO EMPLOYEES

c ) Any class of establishment or

persons by Notification (Section 5 )

W.E.F. 20.07.2004

Non-Applicability : ( Basic wages ) Skilled :

a ) Certain provisions of the Act in

column III of Sch. II to

Establishments in Column II

Rs. 3330/- ( Zone I )

( Section 4 ) Rs. 3230/- ( Zone II )

b ) Factories to which the Factories

Act is applicable. ( Section 17 )

Rs. 2930/- ( Zone III )

Semi-skilled


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Rs. 3230/- ( Zone I )

Rs. 3130/- ( Zone II )

Rs. 2830/- ( Zone III )

Unskilled

Rs. 3130/- ( Zone I )

Rs. 3030/- ( Zone II )

Rs. 2730/- ( Zone III )

Plus the Special allowance

as may be declared by the

Government of

Maharashtra Special

Allowance from 1.7.2009 to

31.12.2009.

Rs. 955.30 for all

cate ories and all Zones.

Name of the Act Date

P.F. Act

Pay P.F. Deductions Before 15th of the following month

Submit monthly returns Before 25th of the following month

ESI Act

to remember for making Statutory Deductions and for filing Retu


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Make payment Before 21th of the following month

Professions Tax Act

Employers to submit Form III& Pa Before month end

Maternity Benefit Act

Submit Return in Form XI Before 15th January of each year

Contract Labour Act

Submit Annual Return in Form XXI Before 31st Jan. (State)Form No. XXV in case of central Central

Factories Act

Submit Annual Return inForm 27 Before 1st Feb.

Workmens Compensation Act

Submit Annual Return Before 1st Feb.

The Payment of Wages Act

Submit Return in Form V Before 15th Jan.


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Benefits Other Important Issues Penlaties

a) Subject to

provisions:-

Minimum bonus

shall be 8.33% of

salary /wages

earned or Rs. 100

whichever is higher

a) Computation of bonus is

to be worked out as per

schedules I to IV of the Act.

b ) If allocable

suplus as

computed under

the Act exceeds the

amount of

minimum bonus,

then bonus shall bepayable at higher

rate subject to a

maximum 20% of

salary / wages.

b) Records in form Nos. A,

B & C are to be

maintained.

c) Customary

bonus paid is

deductible.

c) Annual Return in Form

D to be filed.

d) Bonus must be paid

within a period of 8 months

from the close of

accountin ear.

Imprisonment upto 6

months and / or fine

upto Rs.1000/- or

both


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a) The quantam of

gratuity is to becomputed at the

rate of 15 days

wages based on

the rate of wages

last drawn by the

employee

concerned for

every completed

year of service of a

part thereof 6

a) Employers other than

Central Govt. or state Govt.obliged to obtain an

insurance from LIC in

prescribed manner for

liability for payment of

gratuity.

Non payment of

Gratuity payableunder the Act

b) The totalamount of gratuity

payable shall not

exceeds Rs. 3.5

lakhs.

b) Establishments to whichact applies must get

registered with the

controling Authority.

is punishable withimprisonment up to

2 years (minimum 6

months) and / or

fine upto Rs. 20,000/-

Other contraventions

/ offences attract

imprisonment up to

1year and / or fine

up to 10,000/-. Or

both.

c) In case where

higher benefit of

gratuity is available

under any gratuity

scheme award or

agreement, the

employee will be

entitled to higher

benefits.

c) Once Act applies,it

continues to apply even if

employment strength falls

below 10.

d) Calculation of

Gratuity Monthly salary

/ 26 x 15 days x No. of

ears


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The Act deals with

industrial Disputes between

employers and employers

or between employers and

workmen or between

workmen and workmen

which is connected with the

employment or non

employment or terms of

employment or with the

conditions of labour of any

person.

a) Under Sec. 25Q if

an employer:-

Such disputes are dealt by

the authorities prescribed

under the act.

Contravens the

provision of Sec.

25M (lay off without

prior permission of

the Government) or

Sec. 25-N(Retrenchment

without permission

etc.) Imprisonment

up to one month or

Certain mandates : b) Under section 26

(2) if any employer

commence continues

or otherwise acts in

furtherance of an

illegal lockout.

1) Mandatory

requirement in case of

closure of an

undertakin :-

Imprisonment up to

one month or fine

upto Rs.1000/-

a) 60 days notice to the

government for intended

closure in Form no. XXIV-B

under Sec. 25FFA if

employing more than 50

workmen but less than 100

c) If any person

commits

b) Application for prior

permission of at least 90days in form XXIV-C to the

Govt. when there are 100

or more workmen during

preceding 12 months under

an unfair labour

practice u/s. 25T,the Fifth schedule

Imprisonment up to

six month or fine up

to Rs.1000/-

S25-O

The Act Restricts

unfair labour

practices,

prescribed for

regulating and

governing cases of

strikes, lock-out,

lay-off,

retrenchment and

closure in certain

establishments.

Consequenses of

the aforesaid

eventualities are

provided towards

employees as well

as employer.


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2) Mandatory provision

concerning

retrenchment of

workmen,

compensation to be paid

and other conditions:

a) worman must have

worked for 240 daysb) Retrenchment

compensation @15 days

wages per every completed

year to be calculated on

last drawn wages inclusive

of allowances.

c) One month notice or

wages in lieu thereof

d) Reasons forretrenchmente) Complying with principle

of last come first go

f) maintenance of seniority

list at least 7 days in

advance.g) Sending of notice in

Form XXIV to the secretary,

Government of

Maharashtra.3) Notice of change

under S.9A:-21 days notice is required

to be given by an employer

to the workmen about

changing the conditions of

service as provided in IV

schedule in Form XXVII.

4) Prior Permisssion for

Lay off :When there are more than

100 workmen during

preceding 12 months underS. 25M5) Prior Permission for

retrenchment :-

When there are more than

100 workmen during

preceding 12 months under

S. 25N


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Employees covered

enjoy a modicum of

Social Security in

the form of an

unattachable,

unwithdrawable

(except in severely

restricted

circumstances like

buying homes,

marriage / death in

family etc.)

financial nest egg

to which employees

and employers

contribute equally

throughout the

covered persons

employment

a) Once the Act applies it



below 20.

Liable to be arrested

without warrant.

being a congnisable

offence Defaults by

employer in paying

contributions or

inspection /

administration

charge attract

imprisonment upto 3

years and fines upto

This sum is payable

normally on

retirement or death

b) Periodical returns have

to be filed under the Act.

Rs. 10,000/-. If

offence is repeated,

imprisonment extend

to 5 years but not

less than 2 years in

addition to fine of

Rs. 25,000/- For any

retrospective

application, all dues

have to be paid byemployer with

damages upto 100%

of arrears.

c) Inspection Note book

has to be maintained

d) The Employees pension

scheme 1995 also applies

w.e.f. 16.11.1995


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Amount of

compensation

payable by the

em lo er will be

a) Any contract by a

worker waiving his right to

be compensated under this

Act is null and void.a) Where death

results from injury,

50% of monthlyWages x relevant

factor or Rs.

80,000/- whichever

is more.

b) Where

permanent total

disablement results

from injury 60% of

monthly Wages x

relevant factor or

Rs. 90,000/-whichever is more

b) The intention of the

Legislature and the

circumstances under which

law was enacted is to be

seen. It is interpreted in

favour of the weak.

c) Relevant

factor, which is

dependent upon

age of employee,

ranges from 228.54

c) Notice book is to be

maintained. A statement,

report and a return is to be

filed when applicable

If the monthly

wages are more

than Rs. 4000/- for

the purpose of the

above calculation it

is restricted to Rs.

4000/-

d) In case of fatal accident,

payment of compensation

to the dependent of a

workman is to be made

through Commissioner of

Workmens Compensation

a) The following

benefits are

provided Sickness

benefit, maternity,

disablement,

dependent,

medical, and

funeral expenses

Rehabilitation

allowance Cannot

receive 2 benefits

for same period.

a) Once the Act applies it



below 20 / 10

Under S.39 (5) (a) if

the principal

employer does not

pay any contribution

on the due date :-

Compensation

should be paid early

delay beyond 1

month attract

interest @ 12% p.a.

and penalty of up to

50% of the

compensation.

Certain other

offences attract fine

up to Rs. 5,000/-.


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b) Free medical

treatment is

offered. to

employees and his

family at hospital

& dispensaries run

by ESI Corporation

b) Register of employees is

to be maintained Form 6

(Regulation 32)

Payment of simple

interest @12% p.a.

or higher rate till

date of actual

payment Interest

recoverable as

arrears of land

revenue under

- -c) During sickness,

an employee will

receive wages as

per standard

benefit rate

shown in the

c) Reports and Returns

have to be filled as

applicable.

For varoius offences

: An employer may

be punished with

fine from Rs. 2000/-

to

d) Maternity

benefits for 12

weeks of which notmore than 6 weeks

should be

preceding

confinement

As per notification dated

11.03.2008 employer

employing 40 and moreemployees have to append

a certificied by C. A in

revised format of return. In

case of below 40

employees certificate by

Rs. 25000/- and / or

imprisonment from 6

months to 5 years

e) Injury during /

in course of

employment

resulting in temp. /

permanent

disablemententitles covered

employee to

On failure by an

employer to pay his

contribution the

ESIC can recover the

same as an arrear of

land revenue.

f) Death during the

course of

employment

entitles dependents

to regular payment

g) One time

payment of Rs.

2,500/- to help

meet funeralex enses


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h)

Unemployment

allowance to a

member who has

contributed

minimum period

of 5 years prior

to loss of

i) Payable till re-

employed

elsewhere

(maximum 12

months eriod

a ) To members -

Superannuationpension, retiring

pension or

permanent total

disablement

b ) To heirs -

widow or widowers

pension, children

pension or orphan

pension. Guardian

pension,

Nominee pensionAs per the scheme

provided in the

rules.

a ) Register of wages to be

maintained at workspot in

prescribed forms. Such

records to be preserved for

3 years from the time of

last entry made therein.

The Act prescribes

the minimum rates

of wages payable

to employees for

different scheduled

employment, for

Imprisonment up to

5 years and / or

fine up to Rs.

10000/- is

imposable for

contravention or

Benificial Legislation Imprisonment up to

one year. Fine uptoRs. 5000/- or both

for the defaulter.


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b ) Normal working day

prescribed under the Act is

9 hours.

The Act provides

for

a) Wages to be paid in

current coin of currency.

Written authorisation of

employee necessary for

payment by cheque /credit

a ) Regular and

timely payment of

wages. Specified

day after last day

of the wages

period in respect of

which wages are

b) Deductions cannot

exceed 75% of wages for

payment to co-op.

Societies, and 50% in other

cases.

i) 7 days for

Railways, Factory,

Industrial or other

establishment

employing less

than 1,000 workers

c) Registers/records in

Form No. I, II, III & IV to

be kept for 3 years from

last entry (If muster role

cum wage register in

form

ii) 10 days for other

than personsstated in (I) above

No. II as per

maharashtra Minimumwages rule is

maintained the above

registers are not

required to be

work and for

adults, adolescents,

children and

apprentices

depending upon

different localities,for one or more

wage periods; viz.

by hour, by the

day, month or

other large period.

Penalties are from

Rs.1000/- to

22,500/- Repeat

offences attract 1 to

6 months

imprisonment


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iii) In case of

termination of

employment, the

wages must be

paid before the

expiry of the

second working

day from the day of

AMENDMENTS

b ) Prevents

unauthorised

deductions being

made from wages

and charges of

Section 1, sub-section ( 6 ):

"One thousand six hundred

rupees" is amended to "Six

thousand five hundred

rupees"

a) Right to leave if

more than 3months @ 5 days

for 60 days work

and 21 days for

240 days work.

26th Jan, 1st May,

15th Aug. and 2nd

Oct. are paid

Obligation and liability

of employer

a) Contravention of

certain provisions ofthe act - for each

offence - fine from

Rs.1000 /- to 5000 /-


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(Section 35 : Rule

II - A ).

a) Change in particular of

establishments to be

communicated to inspector

within 15 days for No. of

employees and 30 days for

other changes. ( Section 8 :

Rule 8 : Sch II : Form E )

b) Continued

contravention of

Section 7( 1 ) after

10 days of conviction

- fine of Rs. 100/-

every day.

b) Leave pay @

equal to average

daily wage for days

actually worked in

3 months (Section

36).

b) Closing to be notified

within 10 days to inspector

( Section 9 )

c) Contravention of

Section 12 - fine of

Rs. 1000/- to Rs.

5000/-

c) Overtime wages

@ twice the

ordinery rate for

additional work. (Section 63 ).

c) Register and other

records

d) Employee

Contravening Section

18( 2 ) 24, 31 and

65 - fine of Rs. 500/-to Rs. 5000/- for

each offence.

to be produced on demand e) False entries by

employer / manager

in Registers etc.

fine of Rs.1000/- to

Rs. 5000/- if both

are liable then

aggregate fine not to

exceed Rs. 5000/-.

(Section 51). f) Commission of

offence for which

once convicted - fine

of Rs.1000/- to

Rs.5000/-and for

third conviction Rs.

1000/- to Rs.

-d) Maintainance of registers

and records and display of

notice.

g) Penalty for wilful

obstruction of

Inspector Rs. 100/-

to Rs. 5000 -.(Section 62 : Rule 20 :

Form H-N


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e) For termination 30

days notice or wages in

lieu of such notice who

has completed 1 year or

more and 14 days

noticeor wage in lieu of

such notice who has

completed 3 months or

f) Not to permit employee

to work when he is on

leave / or on holidays (

Section 65 .g) Identity cards to

employees in residential

hotels etc. (Section 25).

Commercial establishment

can be opened not earlier

8-30 a.m. and closed not

later than 9-30 .m.Limit of overtime work :

The maximum limit for

working overtime shall

not exceed three hours

and the employer may,

for the purpose of the

work beyond the said

overtime hours, engage

additional number of

employees.

indian labour_law

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