IMPORTANT LABOUR AND IMPORTANT LABOUR AND FACTORY LEGISLATIONS IN FACTORY LEGISLATIONS IN

INDIAINDIA

Acts and Rules

Blend of Acts and Rules

Centered on the responsibility of a Factory Manager, Personnel/ HR Manager or self employed Entrepreneur.

Attention has not been made wherever the employer has nothing to do with the provisions but has only to follow the directions of the appropriate govt.

THE FACTORIES ACT, 1948THE FACTORIES ACT, 1948

Act which makes it obligatory on the part Act which makes it obligatory on the part of the employer to provide for the health, of the employer to provide for the health, safety and welfare of the workers safety and welfare of the workers employed.employed.

Act extends to the whole of India. Applies to every factory wherein 10 or

more workers are or were employed, if run with power and 20 or more workers are or were employed, if run without power.

Application to factories with fewer workers u/s 85

PROVIDESPROVIDES for for Hours of workHours of work (adult) not to exceed 48 hours in a week or (adult) not to exceed 48 hours in a week or

9 hours in a day.9 hours in a day. Relaxation: Where an adult worker is engaged in Relaxation: Where an adult worker is engaged in

urgent repairs.urgent repairs. Payment of Overtime wages for overstay at workplace @ Payment of Overtime wages for overstay at workplace @

twice the ordinary rate of wages.twice the ordinary rate of wages. ** Provision relating to hours of work not applicable to ** Provision relating to hours of work not applicable to

supervisory staff.supervisory staff. Weekly HolidayWeekly Holiday: No work for more than 10 days without a : No work for more than 10 days without a

day of rest.day of rest. Intervals of rest:Intervals of rest: half an hour for 5 hours of work half an hour for 5 hours of work No childNo child (who has not attained the age of 15 years) (who has not attained the age of 15 years) be be

permitted to work.permitted to work. Prohibition of employment of Women:Prohibition of employment of Women: No woman shall be No woman shall be

employed in any factory for more than 9 hours in any day employed in any factory for more than 9 hours in any day or or between 7 pm and 6 am.between 7 pm and 6 am.

Factories Act now allows women to work night shifts PROVIDED

adequate safeguards in the factory as regards occupational safety and health, equal opportunity for women workers, adequate protection of their dignity, honor and safety and their transportation from the factory premises to the nearest point of their residence" are made.

Leave with WagesLeave with Wages

@ 1day for every 20 days provided -----@ 1day for every 20 days provided -----

240 days of work during preceding 240 days of work during preceding year.year.

Days of lay off, paid holidays or leave days Days of lay off, paid holidays or leave days consideredconsidered

Encashment of unavailed leave: Encashable Encashment of unavailed leave: Encashable at the present rate of wages.at the present rate of wages.

The occupier (Employer) to maintain a register – LEAVE WITH WAGES REGISTER- in FORM 15

Provide each employee a Leave Book- thick bound sheet- in FORM 16 (with similar entries as in Form 15)

Provide each worker an Attendance Card in form 28 showing the particulars of employment

* shall be substituted by Electronic cards

EMPLOYER TO KEEP THE FACTORY EMPLOYER TO KEEP THE FACTORY

PREMISES CLEANPREMISES CLEAN • white washing at least once in every 14 months• repainting or revarnishing every 5 years• ensure proper disposal of wastes and effluents• Record the dates on which white washing, painting or

varnishing done in a register in FORM 7.• Ensure provision of sufficient number of Latrines and urinals –

separate for gents and ladies• Ensure spittoons are provided at adequate places.• Ensure workplace has adequate ventilation • Avoid overcrowding – ensure 500 cubic feet of space for every

worker without reference to any space which is more than 14 feet above the level of the floor of the room.

• Ensure proper lighting- artificial or natural or both.• Ensure supply of uninterrupted supply of Drinking Water.• Where the no. of workers is more than 250, provision for

cold water in every lunch room, rest room and canteen shall be ensured.

EMPLOYER TO ENSURE SAFETY EMPLOYER TO ENSURE SAFETY OF WORKERSOF WORKERS

Fencing of Machines and Moving parts of machines Fencing of Machines and Moving parts of machines – spindles, gears, pulleys, belts etc– spindles, gears, pulleys, belts etc

Protection of eyes using screens or goggles from Protection of eyes using screens or goggles from excessive light or infra-red or ultra violet radiationsexcessive light or infra-red or ultra violet radiations

Precaution in case of Fire.Precaution in case of Fire. No woman or young person shall, unaided by No woman or young person shall, unaided by

another person, lift, carry or move by hand or head another person, lift, carry or move by hand or head any material or tool exceeding the maximum limit any material or tool exceeding the maximum limit prescribed.prescribed.

* Adult male 75 Kgs* Adult male 75 Kgs * Adult female 30 Kgs* Adult female 30 Kgs * Adolescent male 30 Kgs* Adolescent male 30 Kgs * Adolescent female 20 Kgs* Adolescent female 20 Kgs Safety Officer: Safety Officer: Appoint a Safety Officer wherein 1000 Appoint a Safety Officer wherein 1000

or more workers are employed.or more workers are employed.

EMPLOYER TO LOOK AFTER THE EMPLOYER TO LOOK AFTER THE WELFARE OF EMPLOYEESWELFARE OF EMPLOYEES

► Washing facilityWashing facility separately for women and men separately for women and men► Separate Separate rooms forrooms for men and women for men and women for drying of clothesdrying of clothes► Separate Separate rest roomsrest rooms for men and women for men and women► First Aid boxesFirst Aid boxes equipped with prescribed medicines equipped with prescribed medicines► Ambulance room where 500 or more are employedAmbulance room where 500 or more are employed► CanteenCanteen for use of workers for use of workers where 250 or more are where 250 or more are

employedemployed (150 under Plantation Labour Act) (150 under Plantation Labour Act)► Lunch room where 150 or more are employedLunch room where 150 or more are employed► Crèches where 30 or more women are employedCrèches where 30 or more women are employed► Appoint Appoint WELFARE OFFICERWELFARE OFFICER (S) (S) where 500 or more are where 500 or more are

employedemployed (300 under PLA) (300 under PLA)► The duties, qualification and conditions of service of such The duties, qualification and conditions of service of such

welfare officers shall be in accordance with the rules of the welfare officers shall be in accordance with the rules of the respective State Govt.respective State Govt.

► NOTICE OF DANGEROUS OPERATIONS NOTICE OF DANGEROUS OPERATIONS

REGISTERS TO BE MAINTAINEDREGISTERS TO BE MAINTAINED Attendance Register/ Muster roll in form 25Attendance Register/ Muster roll in form 25 Register of Adult Workers in form 12Register of Adult Workers in form 12 Record of Lime washing, painting etc in form 7Record of Lime washing, painting etc in form 7 Register of Compensatory Holidays in form 9Register of Compensatory Holidays in form 9 Overtime Muster roll for Exempted workers in Overtime Muster roll for Exempted workers in

form 10form 10 Register of Leave with Wages in form 15Register of Leave with Wages in form 15 Health Register in form 17 (in respect of persons Health Register in form 17 (in respect of persons

employed in occupations declared to be employed in occupations declared to be dangerous operations u/s 87)dangerous operations u/s 87)

Register of Accidents and Dangerous Register of Accidents and Dangerous Occurrences in form 26Occurrences in form 26

Particulars of Rooms in the factory in form 35.Particulars of Rooms in the factory in form 35.

RETURNS TO BE SENT TO APPROPRIATE AUTHORITIES

Notice of accidents and dangerous occurrences resulting in death or bodily injury in form 18 (similar to the one to be sent ESI Local Office under the ESI Act)

Half yearly returns in form 22 Annual returns in form 21 Notice of change of Manager in form 23 Details of closure in form 32 Report of examination of Pressure Vessel or Plant in

form 8 Report of examination of Water sealed Gas holder in

form 38 Report of Examination of Hoist or Lift in form 41 Certificate of Fitness for Dangerous Operations in form

39

THE INDUSTRIAL EMPLOYMENT THE INDUSTRIAL EMPLOYMENT (STANDING ORDER) ACT, 1946(STANDING ORDER) ACT, 1946

Defines the terms and conditions of Defines the terms and conditions of service between the employer and service between the employer and his employeeshis employees ..

Applies to every industrial establishment Applies to every industrial establishment wherein 100 (in some States 50)or more wherein 100 (in some States 50)or more workers are employedworkers are employed

The Act extends to the whole of India The Act extends to the whole of India

SIGNIFICANCE

Terms of appointment order issued to an employee cannot circumvent the provisions of certified standing order. Therefore, it is always desirable to get standing orders drafted and certified as it regulates the relationship between the employer and the employee.

Standing Order drafted shall provide for

Date on which the standing orders shall come in to force and shall remain in force

Definitions Classification of workmen as

Permanent, Probationer, Badlis, Casual and Trainees

contd Obligations – not to carryon any other business for gain or

to take admission in educational institution without permission

to observe strict secrecy of company matters not to take photographs, drawing or

documents of the process of manufacture of the company

not to carry any lethal weapon, explosive or article dangerous to life or property

to follow safety rules in force to inform any change in the address etc

contdcontdMedical examination and aid in case of Medical examination and aid in case of accidentaccidentIdentification of workmen and issue of Identity Identification of workmen and issue of Identity cardscardsWorking time for different categories of Working time for different categories of workmen workmen Record of age, qualification and experience Record of age, qualification and experience Entry, exit and liability for security checkingEntry, exit and liability for security checkingShift working and weekly offShift working and weekly offAttendance and late comingAttendance and late comingMethods of applying for different kinds of Methods of applying for different kinds of leave and extension of leaveleave and extension of leaveAction for unauthorised absence Action for unauthorised absence

contdcontd National and festival holidaysNational and festival holidays TransferTransfer Apprehension of danger to the safety Apprehension of danger to the safety

and security of factory and its and security of factory and its personnelspersonnels

Date of payment of wages/ salaryDate of payment of wages/ salary Overtime wagesOvertime wages Increment and promotionIncrement and promotion Stoppage, closing or lay off of Stoppage, closing or lay off of

establishment and strikeestablishment and strike Resignation – notice or payment in lieu Resignation – notice or payment in lieu

of notice to be givenof notice to be given Termination of employment and notice Termination of employment and notice

or payment in lieu of notice required to or payment in lieu of notice required to be served or madebe served or made

contdcontd

Deduction from wages for fine imposed or Deduction from wages for fine imposed or absence from duty or loss caused to the absence from duty or loss caused to the property and recovery of employees property and recovery of employees contribution to schemes like EPF, ESI and contribution to schemes like EPF, ESI and Labour Welfare fundLabour Welfare fund

Age of superannuationAge of superannuation Grievance procedureGrievance procedure Disciplinary action for misconductDisciplinary action for misconduct Punishment for misconduct and procedure for Punishment for misconduct and procedure for

imposition of punishmentimposition of punishment

contdcontd

Service of noticeService of notice Issue of service certificateIssue of service certificate Amendment of Standing orderAmendment of Standing order Exhibition of Notices – as whether if put Exhibition of Notices – as whether if put

in the Notice Board or not in the Notice Board or not

THE MATERNITY BENEFIT ACT, THE MATERNITY BENEFIT ACT, 19611961

The Act extends to the whole of The Act extends to the whole of IndiaIndia

Applies to every factory, shop or Applies to every factory, shop or establishmentestablishment

Woman entit led to maternity benefit Woman entit led to maternity benefit not withstanding the application of not withstanding the application of the Employees State Insurance Act, the Employees State Insurance Act, 19481948

Employer to ensure……• No woman works during the six weeks immediately following the day of her delivery or her miscarriage

• No woman does any arduous work during the period of ten weeks from the expected date of delivery

• Not to discharge or dismiss a woman during her pregnancy

Eligibility

Work of 80 days in the 12 months immediately preceding the date of delivery.

Leave days & lay offs taken as worked.

Benefit

12 weeks leave of which not more than 6 weeks shall precede the date of her expected delivery

The benefit to be paid @ average rate of wages for the three months preceding her maternity leave

In case of miscarriage, 6 weeks leave with pay at the same rate as applicable to maternity benefit.

THE MINIMUM WAGES ACT, 1948THE MINIMUM WAGES ACT, 1948

AN ACT TO PREVENT “SWEATED LABOUR AND AN ACT TO PREVENT “SWEATED LABOUR AND EXPLOITATION OF LABOUR”EXPLOITATION OF LABOUR”

The Act extends to the whole of India The Act extends to the whole of India

Requires the Central and State Govt. to fix minimum Requires the Central and State Govt. to fix minimum rates of wages in certain scheduled employment.rates of wages in certain scheduled employment.

Minimum wages fixed REVISED from time to time Minimum wages fixed REVISED from time to time

Responsibility of the Employer

to follow the directions and fix wages of the workers at the rate not less than the one fixed

to maintain Register of Wages in form XI showing rate of wages payable, actual amount paid, attendance & overtime, deductions for EPF, ESI and other, net amount paid, date of payment and signature of respective employee. Wages slip in form XIII showing the above details

to be given to every employee.

THE WORKING JOURNALISTS (FIXATION OF THE WORKING JOURNALISTS (FIXATION OF RATES OF WAGES) ACT, 1958 RATES OF WAGES) ACT, 1958

Provides for the fixation of wages in respect of Working Provides for the fixation of wages in respect of Working Journalists and for matters connected therewithJournalists and for matters connected therewith

PAYMENT OF WAGES ACT, 1936PAYMENT OF WAGES ACT, 1936

An Act to regulate the payment of An Act to regulate the payment of wages to certain classes of wages to certain classes of personspersons

Extends to the whole of IndiaExtends to the whole of India Responsibility of payment wages rests Responsibility of payment wages rests

with the employerwith the employer Employer to fix Wage PeriodEmployer to fix Wage Period No wage period shall exceed one month.No wage period shall exceed one month.

Time of Payment of wages

7th day of wage month where less than 1000 are working

10th day where more than 1000 are working

No payment in KIND

Permissible deduction from Wages • fines• for absence from duty• for damage caused to the property of the

employer• for the amenities provided, like house

accommodation• for recovery of advance or adjusting over

payment of wages• towards EPF, ESI, Labour Welfare Fund and

similar deductions permitted under any Act or the Standing Orders of the establishment

• for Life Insurance/ general insurance policies and Housing loan.

The Kerala Payment of The Kerala Payment of Subsistence Allowance Act, 1972Subsistence Allowance Act, 1972

Act to provide for the payment of Act to provide for the payment of subsistence allowance to the subsistence allowance to the employees during the period of employees during the period of suspensionsuspension

Extends to the whole of KeralaExtends to the whole of Kerala

Suspension

Any interim decision of an employer debarring an employee temporarily from attending his office

Payment of Payment of Subsistence AllowanceSubsistence Allowance

50% of wages for the first ninety days of 50% of wages for the first ninety days of suspensionsuspension

75% of wages for the period beyond 75% of wages for the period beyond ninety days ninety days

Full wages for the period beyond one Full wages for the period beyond one hundred and eighty dayshundred and eighty days

Not eligible for Subsistence Allowance

An employee placed under suspension not entitled for subsistence allowance if he accepts employment during the period of suspension

THE PAYMENT OF BONUS ACT, THE PAYMENT OF BONUS ACT, 19651965

An Act to provide for the payment of Bonus to An Act to provide for the payment of Bonus to persons in certain establishments on the basis of persons in certain establishments on the basis of profits, production or productivity.profits, production or productivity.

Extends to the whole of India.Extends to the whole of India. Applies to every establishment wherein 20 or more Applies to every establishment wherein 20 or more

are employed are employed The Appropriate Govt. shall apply the Act to any The Appropriate Govt. shall apply the Act to any

other establishment, including a factory to which the other establishment, including a factory to which the Factories Act, 1948 applies, wherein less than 20 Factories Act, 1948 applies, wherein less than 20 workers are employed provided the number of workers are employed provided the number of persons employed is not less than 10persons employed is not less than 10..

Eligibility to Bonus employee whose salary/ wages does not

exceed Rs 10000 per month who has worked in the establishment for

not less than 30 days Not disqualified to claim bonus due to

fraud, theft or any other misconduct Bonus of very person drawing salary

between Rs 3500/- and Rs 10000/- per month shall be calculated as if his salary were Rs 3500 pm

For calculating the For calculating the number of working number of working daysdays the days for which the worker has been the days for which the worker has been

laid off laid off the days he has been on leave with paythe days he has been on leave with pay the days he has been absent due to the days he has been absent due to

temporary disablement caused by an temporary disablement caused by an employment injuryemployment injury

the days a woman employee has been on the days a woman employee has been on maternity leavematernity leaveshall be taken in to account.shall be taken in to account.

Rate of Bonus

Minimum :8.33% of salary/wages Maximum 20% of salary/wages Computation of bonus as per Schedule I to IV

of the Act. Adjust any interim bonus paid while making

payment of the final bonus.

Disputes on Bonus

The Bonus Act does not provide for any machinery to resolve disputes relating to bonus. For this, the Industrial Dispute Act shall be referred to.

THE PAYMENT OF GRATUITY THE PAYMENT OF GRATUITY ACT, 1972ACT, 1972

The Kerala Industrial Employees Payment of The Kerala Industrial Employees Payment of Gratuity Act, 1970, followed by the West Gratuity Act, 1970, followed by the West Bengal Employees Payment of Compulsory Bengal Employees Payment of Compulsory Gratuity Act, 1971 and the intention of the Gratuity Act, 1971 and the intention of the other States to have similar Acts in their other States to have similar Acts in their respective states necessitated the respective states necessitated the Central Central Act so as to avoid different treatment to Act so as to avoid different treatment to employees of establishments having employees of establishments having branches in more than one states who are branches in more than one states who are subject to transfer from one state to subject to transfer from one state to another.another.

The Payment of Gratuity Act, 1972 The Payment of Gratuity Act, 1972 extends to the whole of India.extends to the whole of India.

Applies to every factory, mine, plantation Applies to every factory, mine, plantation and other establishment wherein 10 or and other establishment wherein 10 or more workers are employed.more workers are employed.

Gratuity is in the nature of a Gratuity is in the nature of a retirement benefit payable to an retirement benefit payable to an

employee for employee for a long and meritorious a long and meritorious serviceservice..

• It is not paid to an employee gratuitously or It is not paid to an employee gratuitously or merely as a matter of boon. It is paid for the merely as a matter of boon. It is paid for the service rendered by him to the employer service rendered by him to the employer (Delhi (Delhi Cloth and General Mills Co; Ltd Vs The Cloth and General Mills Co; Ltd Vs The Workmen)Workmen)

• Then why it should necessarily be denied to Then why it should necessarily be denied to him when an employee is dismissed for him when an employee is dismissed for misconduct at a latter stage of service ???misconduct at a latter stage of service ???

Gratuity is payable to an employee on termination of his employment after he has rendered continuous service for not less than five years

on his superannuation on his resignation on his death or disablement due to employment

injury or disease

News paper employees

• The Working Journalists and Other Newspaper Employees (Conditions of service) and Miscellaneous Provisions Act, 1955, provides for payment of gratuity.

• As such, three years of continuous service is required for eligibility for Gratuity.

The payment of gratuity shall be forfeited

to the extent of the damage or loss caused by the employee to the property of the employer

where the service of the employee is terminated due to misconduct

Rate of gratuity

15 days wages for every completed year of service

Rates applicable to Working Journalists depends upon the service of the employee as provided in the Working Journalists and Other Newspaper Employees (Conditions of service) and Miscellaneous Provisions Act, 1955

The average pay of the monthly rated The average pay of the monthly rated employee shall be taken by employee shall be taken by

dividing the monthly salary/ wages by dividing the monthly salary/ wages by 26 and 26 and not by 30not by 30

Piece rate workers and Piece rate workers and Seasonal Seasonal establishmentsestablishments For piece rated workers, For piece rated workers, average of the average of the

three months wagesthree months wages immediately immediately preceding the day of leaving shall be preceding the day of leaving shall be taken as average rate of wagetaken as average rate of wage

An employee in a seasonal An employee in a seasonal establishment shall be paid @ establishment shall be paid @ seven seven days wages for each seasondays wages for each season

Salary ceiling

The Amendment Act of 1994 removed the salary ceiling of an employee, but the maximum gratuity payable shall be Rs 3.5 lakh.

• An employee is in service in a calendar year provided he has worked for– 190 days in case employee is employed

below the ground and– 240 days in any other case.

In order to be eligible for gratuity, employee should have at least five continuous years of service with the

employer

Continuous service (contd.)

The days he/she has been laid off under an agreement or under the ID Act or as

permitted by the Standing Orders on leave with pay absent due to temporary disablement due to

employment injury on maternity leave

shall be taken as worked for the calculation of 190/240 days.

For seasonal employment 75% For seasonal employment 75% attendance during a season shall attendance during a season shall

constitute service in a yearconstitute service in a year

►An employee who has worked for 4 years An employee who has worked for 4 years 11 months and 10 days not eligible for 11 months and 10 days not eligible for gratuity as decided in gratuity as decided in P. Raghavalu and P. Raghavalu and Sons Vs Additional Labour Court, Andhra Sons Vs Additional Labour Court, Andhra PradeshPradesh, as the qualifying phrases , as the qualifying phrases ‘part ‘part thereof in excess of six months’thereof in excess of six months’ shall be shall be taken only for calculation of gratuity and taken only for calculation of gratuity and not for determining the eligibility of not for determining the eligibility of gratuity. gratuity.

THE INTERSTATE MIGRANT THE INTERSTATE MIGRANT WORKMEN (REGULATION OF WORKMEN (REGULATION OF

EMPLOYMENT AND EMPLOYMENT AND CONDITIONS OF SERVICE) ACT CONDITIONS OF SERVICE) ACT

19791979

Act to regulate the employment of interstate Act to regulate the employment of interstate migrant workers and to provide for their migrant workers and to provide for their condit ions of service.condit ions of service.

Extends to the whole of India.

Applies to every establishment wherein five or more interstate migrant workmen (whether or not in addition to other workmen) are employed and every contractor who employs (whether or not in addition to other workmen) 5 or more interstate migrant worker.

Interstate migrant worker

• An interstate migrant worker means any person who is recruited by or through a contractor in the state under an agreement or arrangement for employment in an establishment in another state, whether with or without the knowledge of the principal employer.

Provides for Registration of establishments

employing interstate migrant workmen, licensing of contractors, appointment of licensing officers, prohibition of employment of migrant workmen without registration and duties and obligations of contractors provided under the Act.

Employer to ensureEmployer to ensureRegular payment, equal pay for equal Regular payment, equal pay for equal work irrespective of sex, suitable work irrespective of sex, suitable conditions of work, medical facilities, conditions of work, medical facilities, protective clothing etc shall be ensured to protective clothing etc shall be ensured to such workmen.such workmen.The contractor to maintain register of The contractor to maintain register of migrant employees, send report of migrant employees, send report of accidents, half yearly returns (From 23) accidents, half yearly returns (From 23) and annual returns (Form 24)and annual returns (Form 24)Employer contravening the provisions Employer contravening the provisions liable for punishment of imprisonment or liable for punishment of imprisonment or fine or both fine or both

THE EQUAL REMUNERATION THE EQUAL REMUNERATION ACT, 1976ACT, 1976

Act provides for the payment of equal Act provides for the payment of equal remuneration to men and womenremuneration to men and women

Extends to the whole of India Extends to the whole of India Act makes it obligatory on the part of Act makes it obligatory on the part of

employer to pay equal remuneration to men employer to pay equal remuneration to men and women workers for same work or work and women workers for same work or work of a similar nature.of a similar nature.

In order to make the wages equal, In order to make the wages equal, prevailing wages shall not be reduced but prevailing wages shall not be reduced but the higher rate shall be maintainedthe higher rate shall be maintained..

No discriminationNo discrimination

No discrimination while making No discrimination while making recruitment for the same work or recruitment for the same work or work of a similar nature, except work of a similar nature, except where the employment of women where the employment of women in such work is prohibited or in such work is prohibited or restricted by or under any law for restricted by or under any law for the time being in forcethe time being in force..

NoNo discrimination discrimination in any condition in any condition of service subsequent to of service subsequent to recruitment such as recruitment such as promotions, promotions, training or transfer.training or transfer.

THE APPRENTICES ACT, 1961THE APPRENTICES ACT, 1961

The Act extends to the whole of India.The Act extends to the whole of India. Applies to those apprentices who are Applies to those apprentices who are

undergoing apprenticeship training in undergoing apprenticeship training in designated trades.designated trades.

From time to time, the Central Govt. has From time to time, the Central Govt. has specified the designated trades. specified the designated trades.

Contract of apprenticeship

A contract of apprenticeship training is entered in to between the employer and the apprentice or, if he is a minor, guardian of the apprentice.

The contract of apprenticeship training is to be sent to the Apprenticeship Adviser of the respective area.

Termination of training

• on the expiry of the period of apprenticeship training specified in the contract.

• Premature termination by employer - the employer shall pay to the apprentice such

compensation as may be prescribed• Premature termination by the apprentice apprentice or his guardian shall refund to the

employer as cost of training such amount as may be determined by the Apprenticeship Adviser

NUMBER OF APPRENTICESNUMBER OF APPRENTICES

Depends on Depends on the ratio of trade the ratio of trade apprentices to workersapprentices to workers other than other than unskilled workers unskilled workers and the facilities and the facilities availableavailable and that may be made and that may be made available by the employer available by the employer for trainingfor training the apprentices.the apprentices.

Duties of the employer Make suitable arrangements for impart ing

practical training Provide for basic training. Where an employer employs 500 or more

workers, the basic training shall be imparted in separate part of the workshop building or in a separate building set up by the employer.

* the employer may get easy loan from the Govt. for construction of building for conducting training classes

ITIsITIs if the if the number number of apprentices to be trained is of apprentices to be trained is less less

than twelvethan twelve, then the employer may depute such , then the employer may depute such apprentices to any apprentices to any Basic Training Center or Basic Training Center or Industrial Training InstituteIndustrial Training Institute run by the run by the Government for basic training in any designated Government for basic training in any designated trade.trade.

Where an employer deputes any apprentice as Where an employer deputes any apprentice as above, such employer shall pay to the above, such employer shall pay to the Government the expenses incurred by the Government the expenses incurred by the Government on such training, at such rate as Government on such training, at such rate as may be specified by the Central Government.may be specified by the Central Government.

RI Centre

Apprentice to be given Related Instruction course.

Time spent by a trade apprentice in attending classes on RIC shall be treated as part of his paid period of work.

EMPLOYERSEMPLOYERS to to ensure ensure

Placement of Training Officer with Placement of Training Officer with suitable qualif icationsuitable qualif ication

Payment of stipend at a rate not Payment of stipend at a rate not less than the prescribed minimum less than the prescribed minimum rate rate

Not to pay on the basis of piece Not to pay on the basis of piece workwork

Not toNot to require to take part in any require to take part in any output output bonus or other incentivebonus or other incentive scheme scheme

Employer to ensure (contd.)

HEALTH, SAFETY AND WELFARE OF APPRENTICESNot to require or allow overtime except with the approval of the Apprenticeship Adviser.In case of employment injury pay compensation in accordance with the provisions of the Workmen's Compensation Act, 1923

disputes

• Any disagreement or dispute between an employer and an apprentice arising out of the

contract of apprenticeship shall be referred to the Apprenticeship

Adviser for decision.

Obligation for employment It shall not be obligatory on the part of

the employer to offer any employment to any apprentice who has completed

the period of his apprenticeship training in his establishment,

nor shall it be obligatory on the part of the apprentice to accept an

employment under the employer.

THE WORKMEN’S THE WORKMEN’S COMPENSATION ACT, 1923COMPENSATION ACT, 1923

The Act provides for payment of The Act provides for payment of compensation to the worker injured compensation to the worker injured during the course of employment or during the course of employment or contracted by any occupational contracted by any occupational disease peculiar to that employmentdisease peculiar to that employment

Act extends to the whole of India.Act extends to the whole of India.

The amount of compensation • for accidents resulting in death, an amount

equal to fifty per cent of the monthly wages of the deceased workman multiplied by the relevant factor; or an amount of eighty thousand rupees, whichever is more

• * for permanent total disablement, an amount equal to sixty per cent of the monthly wages of the injured workman multiplied by the relevant factor, or an amount of ninety thousand rupees, whichever is more.

The maximum compensation as per W.C. Amendment Act 2000

Fatal Injury - Rs.4,57,080 Permanent Total Disablement -

Rs.5,48,496 Permanent Partial Disablement -

According to incapacity caused Temporary Disablement - Rs. 2000 per

month upto a period of 5 years

ESI Corporation and Workmen compensation

The liability of payment of compensation shifted from the employer to the Employees State Insurance Corporation

EMPLOYEES STATE INSURANCE EMPLOYEES STATE INSURANCE ACT, 1948ACT, 1948

Act extends to the whole of India, However Act extends to the whole of India, However The ESI Scheme is being implemented area-The ESI Scheme is being implemented area-

wise by stages. wise by stages. The Scheme has already been implemented in The Scheme has already been implemented in

different areas in all States/Union different areas in all States/Union Territories except Nagaland, Manipur, Territories except Nagaland, Manipur, Tripura, Sikkim, Arunachal Pradesh and Tripura, Sikkim, Arunachal Pradesh and Mizoram and UTs of Delhi, Chandigarh and Mizoram and UTs of Delhi, Chandigarh and PondicherryPondicherry

ESI Act * Applies to factories and

establishments functioning in the notified area and consisting of 10 or more employees.

* Provides for health care and cash benefits in cases of sickness, maternity and employment injury.

* The Act absolved the employers of their obligations under the Maternity Benefit Act, 1961 and Workmen’s Compensation Act 1923.

Employees coveredEmployees covered

All employees drawing salary of Rs All employees drawing salary of Rs 10,000 or less are covered 10,000 or less are covered

(w.e.f 1-10-2006)(w.e.f 1-10-2006)

ContributionContribution Employees’ contribution . 1.75% of wagesEmployees’ contribution . 1.75% of wages Employers’ contribution. 4.75 % of wagesEmployers’ contribution. 4.75 % of wages Employees receiving a daily average wage upto Employees receiving a daily average wage upto

Rs.70/-(w.e.f 1-8-07) are exempted from payment Rs.70/-(w.e.f 1-8-07) are exempted from payment of contribution. of contribution. Employers will however Employers will however contribute their own share in respect of these contribute their own share in respect of these employees.employees.

pay contribution within 21 days. pay contribution within 21 days.

Contribution Period and Benefit Period

There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under

Contribution period Corresponding Benefit period 1st April to 30th Sept. 1st January of the following year to 30th June

1st Oct. to 31st March 1st July to 31st December of

the year following

ESI Benefits

Medical Benefits Available both to IP and family. Also available to

disabled/retired IP Super specialist treatment Sickness Benefit Maternity Benefit

Disablement Benefit Dependant benefit Funeral Expenses Old age medi care Rehabilitation

Employer to maintain and file the following books and returns.

• 1. Form 7 (Register of Employees showing the details of Gross wages, ESI contribution deducted, Contribution by the Employer and total for the contribution period (six months)

• 2. Accident book in form 15• 3. ESI Declaration in form 1,• 4. Return of declaration in form 3• 5. Return of Contribution in form 6 for the

contribution period (with similar entries as in register of employees Form 7)

• 6. Accident report in form 16. (similar to Form 18 to be furnished to the Inspector of Factories and Boilers)

EMPLOYEES PROVIDENT FUND EMPLOYEES PROVIDENT FUND AND MISC. PROVISIONS ACT, AND MISC. PROVISIONS ACT,

19521952

An Act to provide for the institution of An Act to provide for the institution of provident funds, pension funds and provident funds, pension funds and deposit linked insurance fund for the deposit linked insurance fund for the employees in the factories and other employees in the factories and other establishmentsestablishments

Extends to the whole of India except the Extends to the whole of India except the State of Jammu and Kashmir State of Jammu and Kashmir

Applicabil i ty Applicabil i ty Applies to all factories and Applies to all factories and

establishments in which establishments in which 20 or 20 or more are employed more are employed

Continuity of applicationContinuity of application Exemption –Exemption – Where employees get Where employees get

benefits in the nature of benefits in the nature of provident fund or old age provident fund or old age pension fund from the pension fund from the establishment which are not less establishment which are not less favourable than the benefits favourable than the benefits under the Act.under the Act.

Schemes under the Act

Three beneficial schemes-

1.Employees Provident Fund Scheme 1952

2.Employees Pension Scheme 1995

3.Employees Deposit Linked Insurance 1976

membership

An employee at the time of joining the employment and getting wages up to Rs.6500/- is required to become a member.

an employee is eligible for membership of fund from the very first date of joining a covered establishment.

Contribution to EPFContribution to EPF Employees’ share : 12% of the Basic + DAEmployees’ share : 12% of the Basic + DA Employer’s contribution : 12% to be Employer’s contribution : 12% to be

deposited as :deposited as : 8.33% to be deposited in Pension Fund 8.33% to be deposited in Pension Fund

A/C No 10 and A/C No 10 and the balance, ie, 3.67% to be deposited in the balance, ie, 3.67% to be deposited in

Provident Fund A/C No 01 along with Provident Fund A/C No 01 along with Employees’ share of 12%Employees’ share of 12%

Contribution (contd.)Contribution (contd.)

Administration charges -Administration charges - @ 1.1% of the total wages/salary @ 1.1% of the total wages/salary

disbursed by deposit to A/C No 02,disbursed by deposit to A/C No 02, Employees Deposit Linked InsuranceEmployees Deposit Linked Insurance @ @

0.5% of the total wages/salary by deposit 0.5% of the total wages/salary by deposit to A/C No. 21 andto A/C No. 21 and

Administration of EDLIAdministration of EDLI @ 0.01% of the @ 0.01% of the wages/ salary by deposit to A/C. No. 22.wages/ salary by deposit to A/C. No. 22.

Duties of employer Employer to furnish information about:

(a) Ownership and names of responsible persons of the establishment.(b) Declaration and nomination.(c) Joining and leaving of service by the members in form 5 and form 10 respectively

(d) Form 12A with monthly challans of deposit.(e) Form 9 for details of employees.(f) Form 3A/6A at the end of the financial year.(g) Any other information as may be required under Para 76 of the scheme

Benefits to employees

Provident Fund Benefits Pension Benefits Death Benefits

Provident Fund Benefits– Employer also contributes to Members’ PF @

3.67% (1.67% in case of sick industry - eg: beedi) – EPFO guarantees the Employer contribution and

Govt. gives a decent interest to PF accumulations – Member can withdraw from this accumulations to

cater financial exigencies in life - No need to refund unless misused

• On resignation, the member can settle the account. i.e., the member gets his PF contribution, Employer Contribution and Interest

Pension Benefits Pension Benefits – Pension to Member Pension to Member – Pension to Family (on death of member) Pension to Family (on death of member) – Scheme Certificate Scheme Certificate

• This Certificate shows the service & family details of This Certificate shows the service & family details of a member a member

• This is issued if the member has not attained the age This is issued if the member has not attained the age of 58 while leaving an establishment and he applies of 58 while leaving an establishment and he applies for this certificate for this certificate

• Member can surrender this certificate while joining Member can surrender this certificate while joining another establishment and the service stated in the another establishment and the service stated in the certificate is added with the service he is gaining from certificate is added with the service he is gaining from the new establishment. the new establishment.

• After attaining the age of 50 or above, the member can After attaining the age of 50 or above, the member can apply for Pension by surrendering this scheme apply for Pension by surrendering this scheme certificate (if total service is at least 10 years) certificate (if total service is at least 10 years)

• This is a better choice than Withdrawal Benefit, that if This is a better choice than Withdrawal Benefit, that if a member dies holding a valid scheme certificate, his a member dies holding a valid scheme certificate, his family will get pension (Death when NOT in service) family will get pension (Death when NOT in service)

Pension benefit (contd.)Pension benefit (contd.)– Withdrawal BenefitWithdrawal Benefit

• if not eligible for pension, member may withdraw if not eligible for pension, member may withdraw the amount accumulated in his pension account the amount accumulated in his pension account

• the calculation of this amount is based only on (i) the calculation of this amount is based only on (i) Last average salary and (ii) Service (Not based on Last average salary and (ii) Service (Not based on actual amount available in Pension Fund Account) actual amount available in Pension Fund Account)

– No amount is taken from Member to give Pension to the Member. No amount is taken from Member to give Pension to the Member. Employer and Govt. contribute to Pension fund @8.33% and Employer and Govt. contribute to Pension fund @8.33% and @1.16% respectively @1.16% respectively

– EPFO guarantees pension to members, even if the Employer has EPFO guarantees pension to members, even if the Employer has not contributed to Pension Fund. not contributed to Pension Fund.

• Pension calculation is similar to that of Govt. EmployeePension calculation is similar to that of Govt. Employee

Death Benefits Death Benefits

• Provident Fund Amount to Family Provident Fund Amount to Family (or to Nominee) (or to Nominee)

• Pension to Family (or to Parent / Pension to Family (or to Parent / Nominee) Nominee)

• Capital Return of Pension Capital Return of Pension • Insurance (EDLI) amount to Family Insurance (EDLI) amount to Family

(or to Nominee) (or to Nominee) No amount is taken from Member for No amount is taken from Member for

this facility. Employer contributes for this facility. Employer contributes for this. this.

• Nominee is basically determined as Nominee is basically determined as per the information submitted by per the information submitted by the member at this office through the member at this office through FORM-2 FORM-2

THE PLANTATION LABOUR ACT THE PLANTATION LABOUR ACT 19511951

AN ACT TO PROVIDE FOR THE AN ACT TO PROVIDE FOR THE WELFARE OF THE LABOUR, AND TO WELFARE OF THE LABOUR, AND TO REGULATE THE CONDITIONS OF REGULATE THE CONDITIONS OF WORK, IN PLANTATIONSWORK, IN PLANTATIONS

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

Applicabil i ty Applicabil i ty Applies to any land used or intended to Applies to any land used or intended to

be used for growing tea, coffee, rubber, be used for growing tea, coffee, rubber, cinchona or cardamom or any other cinchona or cardamom or any other plant which plant which measures 5 hectares or measures 5 hectares or more and in which 15 or more workers more and in which 15 or more workers are employedare employed on any day of the on any day of the preceding 12 months.preceding 12 months.

The State Government by notif ication The State Government by notif ication can apply this law to any other land can apply this law to any other land even if i t measures less than 5 hectares even if i t measures less than 5 hectares and employs less than 15 workers.and employs less than 15 workers.

Duties of the Employer• Provision of:• Drinking Water• Separate Toilets for Men and Women• Medical facilities to the workmen and their family• Canteen where 150 or more workers are employed• Crèches where 50 or more women workers are

employed or where the number of children of women workers is 20 or more

• Recreational facilities• Educational Facilities where children between the

ages of six and twelve of workers employed in any plantation exceed twenty five.

• Housing facility• Welfare Officer where three hundred or more workers

are employed.

Hours of work and Limitations of Hours of work and Limitations of employmentemployment

Hours of work – 48 hours per week which can be Hours of work – 48 hours per week which can be extended to 54 hours with double the rate as extended to 54 hours with double the rate as overtime wagesovertime wages

Weekly holiday Weekly holiday Daily intervals of restDaily intervals of rest Prohibition of employing women workers Prohibition of employing women workers

between 7 pm and 6 ambetween 7 pm and 6 am Annual Leave (with wages) @ 1 per 20 days Annual Leave (with wages) @ 1 per 20 days

workwork Sickness and maternity benefitsSickness and maternity benefits Employer to furnish Notice of AccidentEmployer to furnish Notice of Accident Employer to maintain a register of AccidentsEmployer to maintain a register of Accidents

THE INDUSTRIAL DISPUTES THE INDUSTRIAL DISPUTES ACT, 1947ACT, 1947

An Act to make provision for the An Act to make provision for the investigation and settlement of investigation and settlement of industrial disputes, and for certain industrial disputes, and for certain other purposes.other purposes.

It extends to the whole of IndiaIt extends to the whole of India

Industrial disputeIndustrial dispute

Any dispute or Any dispute or differencedifference between between employers and employers, or employers and employers, or between employers and workmen, between employers and workmen, or between workmen and workmenor between workmen and workmen , , which is connected with the employment which is connected with the employment or non-employment or the terms of or non-employment or the terms of employment or with the conditions of employment or with the conditions of labour, of any person.labour, of any person.

AUTHORITIES UNDER THIS AUTHORITIES UNDER THIS ACTACT

Works CommitteeWorks Committee Concil iation officersConcil iation officers Boards of Concil iationBoards of Concil iation Courts of InquiryCourts of Inquiry Labour CourtsLabour Courts TribunalsTribunals National TribunalsNational Tribunals

Works Committee

Where?: Establishments with 100 or more workers

Members: Equal number of representatives of the Employer and Employees

Objective: promotion of good relationship between employer and employee(s)

Conciliation officersConciliation officers• Appointed by the appropriate

Government

• Duty: Settlement of industrial disputes.

• Nature : Appointed for a specified area or for specified industries in a specified area or for one or more specified industries and either permanently or for a limited period.

Boards of Conciliation• Appointed by the appropriate

Government as occasion arises for settlement of disputes.

• Board shall consist of an independent Chairman and two or four other members in equal numbers to represent the parties to the dispute

Courts of Inquiry

Constituted by the appropriate Government as occasion arises for inquiring into any matter appearing to be connected with or relevant to an industrial dispute

Labour Courts

• Labour Courts are constituted by the appropriate Govt. for the adjudication of industrial disputes relating to any matter specified in the Second Schedule and for performing such other functions as may be assigned to them under this Act.

Tribunals

Tribunals are constituted by the appropriate Govt. for the adjudication of industrial disputes relating to any matter specified in the Second Schedule or the Third Schedule and for performing such other functions as may be assigned to them under this Act.

National Tribunals

National Tribunals are constituted by the Central Government for the adjudication of industrial disputes which, in the opinion of the Central Government, involve questions of national importance or are of such a nature that industrial establishments situated in more than one State are likely to be interested in, or affected by such disputes.

Matters within the Jurisdiction of Labour Matters within the Jurisdiction of Labour CourtsCourts (the II Schedule) (the II Schedule)

1.The propriety or legality of an order 1.The propriety or legality of an order passed by an employer under the standing passed by an employer under the standing orders;orders;

2.The application and interpretation of 2.The application and interpretation of standing order;standing order;

3.Discharge or dismissal of workmen 3.Discharge or dismissal of workmen including re-instatement of, or grant of including re-instatement of, or grant of relief to, workmen wrongfully dismissed;relief to, workmen wrongfully dismissed;

4.Withdrawal of any customary concession 4.Withdrawal of any customary concession or privi lege;or privi lege;

5.Il legality or otherwise of a strike or lock-5.I l legality or otherwise of a strike or lock-out; andout; and

6.All matters other than those specif ied in 6.All matters other than those specif ied in the Third Schedule.the Third Schedule.

Matters within the Jurisdiction of Matters within the Jurisdiction of Industrial TribunalsIndustrial Tribunals (the III schedule) (the III schedule)

1.Wages, including the period and 1.Wages, including the period and mode of payment;mode of payment;2.Compensatory and other allowances;2.Compensatory and other allowances;3.Hours of work and rest intervals;3.Hours of work and rest intervals;4.Leave with wages and holidays;4.Leave with wages and holidays;5.Bonus, profit sharing, provident fund 5.Bonus, profit sharing, provident fund and gratuity;and gratuity;6.Shift working otherwise than in 6.Shift working otherwise than in accordance with standing ordersaccordance with standing orders;;

III schedule (contd.)

7.Classification by grades;8.Rules of discipline;9.Rationalisation;10.Retrenchment of workmen and

closure of establishment; and11.Any other matter that may be

prescribed.

Prohibition of strikes and lock outs

• Not to strike without giving six weeks notice of strike and during the pendency of any conciliation proceedings

• Not to declare lock-out without giving to the employees six weeks notice of lock out and during the pendency of any conciliation proceedings

• A strike or lock-out shall be illegal if it is commenced or declared in contravention of the above.

• Not to support of any illegal strike or lock-out

LAY-OFF AND LAY-OFF AND RETRENCHMENTRETRENCHMENT

►No workman (other than a badli workman or No workman (other than a badli workman or a casual workman) whose name is borne on a casual workman) whose name is borne on the muster-rolls of an industrial the muster-rolls of an industrial establishment wherein establishment wherein 50 or more 50 or more workers are employedworkers are employed shall be laid-off shall be laid-off by his employer except with the prior by his employer except with the prior permission of the appropriate Government.permission of the appropriate Government.

Lay off compensation

a workman (other than a badli workman or a casual workman) who has completed one year of continuous service under an employer shall be paid Lay off compensation

Lay off compensation shall be equal to fifty per cent of the wages (Basic + DA)

Lay off compensation need not be paid for the weekly holidays which may intervene

Continuous Service An employee is in continuous service in a calendar

year provided he has worked for190 days in case employee is employed

below the ground and240 days in any other case.

The days he/she has been laid off under an agreement or under the ID Act or

as permitted by the Standing Orders on leave with pay absent due to temporary disablement due to

employment injury on maternity leave shall be taken as worked for the calculation of190/240 days.

Workmen not entitled to Workmen not entitled to compensation in certain casescompensation in certain cases

When a worker refuses to accept alternative When a worker refuses to accept alternative employment in the same establishment or employment in the same establishment or another establishment owned by the employer another establishment owned by the employer and situated in the same village or town or and situated in the same village or town or within 5 a radius of miles of the establishment.within 5 a radius of miles of the establishment.When a worker does not present himself for When a worker does not present himself for work at the establishment at the appointed work at the establishment at the appointed time during normal working hours at least time during normal working hours at least once a dayonce a dayWhen such laying-off is due to a strike or When such laying-off is due to a strike or slowing-down of production on the part of slowing-down of production on the part of workmen in another part of the establishment workmen in another part of the establishment

Retrenchment of workmen

No workman who has been in continuous service for not less than one year shall be retrenched without giving one month’s notice (three months notice wherein not less than 100 workers are employed) in writing indicating the reasons for retrenchment or

if no notice is given, wages in lieu of such notice.

Retrenchment of workmen employed in an establishment wherein not less than 100 workers are employed requires permission from the appropriate Govt.

Retrenchment Retrenchment CompensationCompensation• Fifteen days average pay for Fifteen days average pay for

every year (or part thereof in every year (or part thereof in excess of six months) of his excess of six months) of his service service

• THIS IS APART FROM THE THIS IS APART FROM THE GRATUITY PAYABLE UNDER THE GRATUITY PAYABLE UNDER THE PAYMENT OF GRATUITY ACTPAYMENT OF GRATUITY ACT

Compensation to workmen in case of transfer of undertakings

every workman shall be entitled to notice and compensation as if the workman had been retrenched.

No compensation on transfer provided

1 . the service of the workman has not been interrupted by such transfer;

2 . the terms and conditions of service applicable to the workman after such transfer are not in any way less favourable to the workman

3 . the new employer takes in to account the continuous service of the workman.

Notice to be given of intention to Notice to be given of intention to close down any undertaking close down any undertaking

An employer who intends to close down an An employer who intends to close down an undertaking shall give undertaking shall give at least sixty days notice at least sixty days notice (Ninety days wherein not less than 100 workers (Ninety days wherein not less than 100 workers are employedare employed) to the appropriate government ) to the appropriate government stating clearly the reasons for the intended stating clearly the reasons for the intended closure of the undertaking:closure of the undertaking:

This section shall not apply to-This section shall not apply to- (a) an undertaking in which less than fifty (a) an undertaking in which less than fifty

workmen are or were employed, orworkmen are or were employed, or (b) an undertaking set up for the (b) an undertaking set up for the

construction of buildings, bridges, roads, construction of buildings, bridges, roads, canals, dams or for other construction work canals, dams or for other construction work or project. or project.

Compensation to workmen in case of closing down of undertakings

Compensation be paid as if workmen are retrenched

However no compensation is payable if the establishment is closed down on account of unavoidable circumstances beyond the control of the employer

These These shall notshall not constitute constitute circumstances beyond the control…circumstances beyond the control…

• financial difficulties (including financial financial difficulties (including financial losses); or losses); or

• accumulation of undisputed off stocks; oraccumulation of undisputed off stocks; or• the expiry of the period of the lease or the expiry of the period of the lease or

license granted to it; orlicense granted to it; or• in case where the undertaking is engaged in in case where the undertaking is engaged in

mining operations, exhaustion of the mining operations, exhaustion of the minerals in the area in which operations are minerals in the area in which operations are carried oncarried on

Procedure for retrenchment and re employment

Retrench the last worker to be appointed under a particular category first

For re-employment, retrenched worker shall have preference over other persons

RECOVERY OF MONEY DUE RECOVERY OF MONEY DUE FROM AN EMPLOYER (FROM AN EMPLOYER ( section section

33 C of ID Act33 C of ID Act ))►Any sum due from the employer Any sum due from the employer

under a settlement or an award is under a settlement or an award is recoverable in the same manner as recoverable in the same manner as an an arrear of land revenuearrear of land revenue

►Application by the employee to be Application by the employee to be received within ONE year.received within ONE year.

►Any sum capable of being computed Any sum capable of being computed in terms of money shall be recovered in terms of money shall be recovered from the employer with the from the employer with the intervention of Labour Court.intervention of Labour Court.

UNFAIR LABOUR PRACTICESUNFAIR LABOUR PRACTICESOn the part of employersOn the part of employers

threatening workmen with discharge or threatening workmen with discharge or dismissal, if they join a trade uniondismissal, if they join a trade union

threatening a lock-out or closure, if a trade union threatening a lock-out or closure, if a trade union is organised is organised

granting wage increase to workmen at crucial granting wage increase to workmen at crucial periods of trade union organisation, with a view periods of trade union organisation, with a view to undermining the efforts of the trade union at to undermining the efforts of the trade union at organisation organisation

an employer taking an active interest in an employer taking an active interest in organising a trade, union of his workmen organising a trade, union of his workmen

Unfair-employer (contd.)Unfair-employer (contd.)► To establish employer-sponsored trade To establish employer-sponsored trade

unions of workmen unions of workmen ► discharging or punishing a workman, because discharging or punishing a workman, because

he urged other workmen to join or organise a he urged other workmen to join or organise a trade uniontrade union

► discharging or dismissing a workman for discharging or dismissing a workman for taking part in any strike (not being a strike taking part in any strike (not being a strike which it deemed to be an i l legal strike under which it deemed to be an i l legal strike under this Act)this Act)

► changing seniority rating of workmen changing seniority rating of workmen because of trade union activit ies because of trade union activit ies

Unfair-employer Unfair-employer (contd.)(contd.) refusing to promote workmen to higher refusing to promote workmen to higher

posts on account of their trade union posts on account of their trade union activit iesactivit ies

giving unmerited promotions to certain giving unmerited promotions to certain workmen with a view to creating friction workmen with a view to creating friction amongst other workmen, or to amongst other workmen, or to undermine the strength of their trade undermine the strength of their trade union union

discharging office bearers or active discharging office bearers or active members of the trade union on account members of the trade union on account of their trade union activit ies of their trade union activit ies

Unfair-employer (contd.)Unfair-employer (contd.)To discharge or dismiss workmen – To discharge or dismiss workmen – by way of victimisation;by way of victimisation; by falsely implicating a workman in a criminal by falsely implicating a workman in a criminal case on false or fabricated evidence;case on false or fabricated evidence;on untrue allegations of absence without leave;on untrue allegations of absence without leave;in utter disregard of the principles of natural in utter disregard of the principles of natural justice in the conduct of domestic enquiry or justice in the conduct of domestic enquiry or with undue haste; with undue haste; for misconduct of a minor or technical character, for misconduct of a minor or technical character, without having any regard to the nature of the without having any regard to the nature of the particular misconduct or the past record of particular misconduct or the past record of service of the workman.service of the workman.

Unfair-employer (contd.)Unfair-employer (contd.)• To abolish the work of a regular nature To abolish the work of a regular nature

being done by workmen, and to give such being done by workmen, and to give such work to contractors as a measure of work to contractors as a measure of breaking a strike. breaking a strike.

• To transfer a workman mala f ide from one To transfer a workman mala f ide from one place to another, under the excuse of place to another, under the excuse of following management policy. following management policy.

• To insist upon individual workmen, who are To insist upon individual workmen, who are on a legal strike to sign a good conduct on a legal strike to sign a good conduct bond, as a precondit ion to allowing them to bond, as a precondit ion to allowing them to resume work.resume work.

Unfair-employer (contd.)Unfair-employer (contd.)► To show favorit ism or partiality to one set of To show favorit ism or partiality to one set of

workers regardless of merit. workers regardless of merit. ► To employ workmen as "badlis" casuals or To employ workmen as "badlis" casuals or

temporaries and to continue them as such for temporaries and to continue them as such for years, with the object of depriving them of the years, with the object of depriving them of the status and privi leges of permanent workmen. status and privi leges of permanent workmen.

► To discharge or discriminate against any To discharge or discriminate against any workman for f i l ing charges or testifying workman for f i l ing charges or testifying against an employer in any enquiry or against an employer in any enquiry or proceeding relating to any industrial dispute. proceeding relating to any industrial dispute.

Unfair-employer (contd.) To recruit workmen during a strike which is

not an illegal strike. Failure to implement award, settlement or

agreement. To indulge in acts of force or violence. To refuse to bargain collectively, in good

faith with the recognised trade unions. Proposing or continuing a lock-out deemed

to be illegal under this Act

UNFAIR LABOUR PRACTICESUNFAIR LABOUR PRACTICES On the part of workmenOn the part of workmen

advise, support or instigate any strike deemed advise, support or instigate any strike deemed to be illegal under this Act.to be illegal under this Act.

coerce workmen to join a trade union or refrain coerce workmen to join a trade union or refrain from joining any trade union, from joining any trade union,

picket in such a manner that non-striking picket in such a manner that non-striking workmen are physically debarred from entering workmen are physically debarred from entering the work placesthe work places

indulge in acts of force or violence or indulge in acts of force or violence or intimidation in connection with a strike against intimidation in connection with a strike against non-striking workmen or against managerial non-striking workmen or against managerial staff staff

Unfair- employee Unfair- employee (contd.)(contd.) For a recognised union to refuse to bargain For a recognised union to refuse to bargain

collect ively in good faith with the employer.collect ively in good faith with the employer. To indulge in coercive activit ies against To indulge in coercive activit ies against

cert if ication of bargaining representative.certif ication of bargaining representative. To stage, encourage or inst igate such To stage, encourage or inst igate such

forms of coercive actions as wil lful "go forms of coercive actions as wil lful "go slow", squat on the work premises or slow", squat on the work premises or "gherao" of any of the members of the "gherao" of any of the members of the managerial or other staff.managerial or other staff.

To stage demonstrat ions at the residences To stage demonstrat ions at the residences of the employers or the managerial staff of the employers or the managerial staff members.members.

Unfair- employee (contd.)

To motivate or indulge in willful damage to employer's property.

To indulge in acts of force or violence or to hold out threats of intimidation against any workman with a view to preventing him from attending work.

The Trade Unions Act, 1926The Trade Unions Act, 1926

An act to provide for the An act to provide for the registrationregistration of of Trade Unions and in certain respects to Trade Unions and in certain respects to define the law relating to registered Trade define the law relating to registered Trade Unions.Unions.

It extends to the Whole of IndiaIt extends to the Whole of India

Registration

The minimum number of workers to form a registered Trade Union is 10% or 100 whichever is less, subject to a minimum of 7 workers.

Ensure that the number of members does not fall down the above requirement.

Sale Promotion Employees Sale Promotion Employees (Conditions of Service) Act, 1976(Conditions of Service) Act, 1976 An Act to regulate certain conditions of An Act to regulate certain conditions of

service of sales promotion employees in service of sales promotion employees in certain establishments, in the first certain establishments, in the first instance, instance, engaged in pharmaceutical engaged in pharmaceutical industryindustry

It extends to the whole of IndiaIt extends to the whole of India

APPLICATION OF CERTAIN ACTS

Provides for APPLICATION OF CERTAIN ACTS, such as Workmen's Compensation Act, 1923, Industrial Disputes Act, 1947, Minimum Wages Act, 1948, Maternity Benefit Act, 1961, Payment of Bonus Act, 1965 and Payment of Gratuity Act, 1972 TO SALES PROMOTION EMPLOYEES

THANK YOU