24949618 Employee Welfare

8/4/2019 24949618 Employee Welfare

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Employee welfare means the efforts to make life worthliving for workmen. According to Todd employee welfare

means anything done for the comfort and improvement,intellectual or social, of the employees over and above the

wages paid which is not a necessity of the industry.


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Objectives of Employee Welfarey Employee welfare is in the interest of the employee, the

employer and the society as a whole. The objectives ofemployee welfare are: -

y * It helps to improve.y * It improves the loyalty and morale of the employees.

y * It reduces labor turnover and absenteeism.

y * Welfare measures help to improve the goodwill and

public image of the enterprise.y * It helps to improve industrial relations and industrial

peace.

y * It helps to improve employee productivity


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Agencies Of Employee Welfarey 1. Central government: - The central government has made elaborate provisions

for the health, safety and welfare under Factories Act 1948, and Mines Act 1952.These acts provide for canteens, crches, rest rooms, shelters etc.

y 2. State government: - Government in different states and Union Territories

provide welfare facilities to workers. State government prescribes rules for thewelfare of the workers and ensures compliance with the provisions undervarious labor laws.

y 3. Employers: - Employers in India in general looked upon welfare work asfruitless and barren though some of them indeed had done pioneering work.

y 4. Trade unions: - In India, trade unions have done little for the welfare ofworkers. But few sound and strong unions have been the pioneering in this

respect. E.g. the Ahmedabad textiles labor association and the Mazdoorsabha,Kanpur.y 5. Other agencies: - Some philanthropic, charitable d social service

organizations like: - Seva Sadan society, Y.M.C.A., etc.


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Types Of Welfare Servicesy * Intramural: - These are provided within the organization like:y 1. Canteen,

2. Rest rooms,

3. Crches,4. Uniform etc.y * Extramural: - These are provided outside the organization, like:

-y 1. Housing,

2. Education,

3. Child welfare,4. Leave travel facilities,5. Interest free loans,6. Workers cooperative stores,7. Vocational guidance etc.


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y LABOUR WELFARE IS ALSO DIVIDED AS:

y>Statutory welfarework comprising the legal provisions in various pieces

of labor legislation.

y >Voluntary welfarework includes those activities which are undertaken byemployers for their voluntary work.

y Different ways of Social Security Provision in India

y 1. Social Insurance- common fund is established with periodical contributionfrom workers out of which all benefits in terms of cash or kind are paid.Theemployers & state prove major portion of finances.Benifits shuch as PF, GroupInsurance etc are offered.

y 2. Social Assistance- Benefits are offered to persons of small means by govt outof its general revenues. Eg- Old age pension


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y SOCIAL SECURITY IN INDIA

y - Medical care

y - Sickness benefit in cash

y - Old age pension or retirement benefit

y - Invalidity pension

y - Maternity benefit

y - Accident benefit

y - Survivors benefit

y Art 41 0f Indian constitution says that the state shall within the limits of itseconomic capacity & develeopment, make effective provision for security , theright to work, to education & to public assistance in cases of unemployment,

oldage, sickness & disablement & in other cases of undeserved want


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THEORIES OF LABOUR WELFAREy The Police Theory: This is based on the contention

that a minimum standard of welfare is necessary for

labourers. Here the assumption is that withoutpolicing, that is, without compulsion, employers donot provide even the minimum facilities for workers

y The Religious Theory: This is based on the concept

that man is essentially "a religious animal."y The Philanthropic Theory: This theory is based on

man's love for mankind. Philanthropy means "Lovingmankind."


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y The Public Relation Theory: This theory provides thebasis for an atmosphere of goodwill between labour andmanagement, and also between management and the

public, labour welfare programmes under this theory, workas a sort of an advertisement and help an organization toproject its good image and build up and promote good andhealthy public relations.The Functional TheoryThis is also called the Efficiency

Theory. Here, welfare work is used as a means to secure,preserve and develop the efficiency and productivity oflabour, It is obvious that if an employer takes good care ofhis workers, they will tend to become more efficient andwill thereby step up production.


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IMPLEMENTATION OF WELFARE

ACTIVITIESyAdequacy of Wages: Labour welfare measures cannot

be a substitute for wages.A combination of socialwelfare, emotional welfare and economic welfaretogether would achieve good results.Social Liability of Industry: Industry, according tothis principle, has an obligation or duty towards itsemployees to look after their welfare

y

Impact on Efficiency: This plays an important role inwelfare services, and is based on the relationshipbetween welfare and efficiency, though it is difficult tomeasure this relationship.


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y Increase in Personality: The development of thehuman personality is given here as the goal of

industrial welfare which, according to this principle,should counteract the baneful effects of the industrialsystem

y Totality of Welfare: This emphasizes that the concept

of labour welfare must spread throughout thehierarchy of an organization. Employees at all levelsmust accept this total concept of labour welfareprogramme will never really get off the ground.


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y Co-ordination or Integration: This plays animportant role in the success of welfare services. Fromthis angle, a co-ordinated approach will promote ahealthy development of the worker in his work, homeand community. This is essential for the sake ofharmony and continuity in labour welfare services.Democratic Values: The co-operation of the worker is

the basis of this principle. Consultation with, and theagreement of workers in, the formulation andimplementation of labour welfare services are verynecessary for their success.


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y ROLE OF MANAGEMENT IN EMPLOYEE WELFARE

y Organizations provide welfare facilities to their employees to keep their

motivation levels high. The employee welfare schemes can be classified into twocategories viz. statutory and non-statutory welfare schemes.

y The statutory schemes are those schemes that are compulsory to provide by anorganization as compliance to the laws governing employee health and safety.These include provisions provided in industrial acts like Factories Act 1948,Dock Workers Act (safety, health and welfare) 1986, Mines Act 1962.

y The non statutory schemes differ from organization to organization and fromindustry to industry


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y STATUTORY WELFARE SCHEMES

The statutory welfare schemes include the following provisions:Drinking Water

y Facilities for sitting

y First aid appliances

y Latrines and Urinals

yCanteen facilities

y Spittoons

y Lighting

y NON STATUTORY SCHEMESPersonal Health Care (Regular medical check-ups): Some of thecompanies provide the facility for extensive health check-up

y Flexi-time: The main objective of the flextime policy is to provide opportunityto employees to work with flexible working schedules

y Employee Assistance Programs:Various assistant programs are arranged likeexternal counseling service so that employees or members of their immediatefamily can get counseling on various matters.


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y Harassment Policy: To protect an employee from harassments of any kind,guidelines are provided for proper action and also for protecting the aggrieved

employee.

y Maternity & Adoption Leave Employees can avail maternity or adoptionleaves. Paternity leave policies have also been introduced by various companies.

y

Medi-claim Insurance Scheme: This insurance scheme provides adequateinsurance coverage of employees for expenses related to hospitalization due toillness, disease or injury or pregnancy.

y

Employee Referral Scheme: In several companies employee referral scheme isimplemented to encourage employees to refer friends and relatives foremployment in the organization.

y


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y ROLE OF TRADE UNIONS IN EMPLOYEE WELFARE

y 1.Service role

-Trade unions attempt to develop serviceswhich are valuable to theirmembers as individuals, outside of the scope of collective bargaining.-In many instances, trade unions negotiate pensions for workers.-Trade unions have been able to offer professional, advisory and

management services to assist in establishing businesses for the workers, and

in some cases, trade unions have actually become shareholders in the business.-Trade unions also supply legal and medicalservicesfor their members.

y 2. Enhancement roleTrade unions provide the opportunity for workers to develop pride inthemselves, to reach positions of leadership and to excel, where without thisvehicle of mobility.

y 3.Welfare roleSome trade unions have actively engaged in providing welfare services formembers and even for the wider community. Eg- the employment of those whohave disabilities, the provision of family services including baby creches, as wellas play and recreational centres in depressed areas.


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y IMPACT OF WELFARE ON LABOUR PRODUCTIVITY

y The welfare measures aim at integrating the socio-psychological needs ofemployees, the unique requirements of a particular technology, the structureand processes of the organization and the existing socio-cultural environment.

y It creates a culture of work commitment in organizations and society whichensure higher productivity and greater job satisfaction to the employees.

y Due to the welfare measures, the employees feel that the management isinterested in taking care of the employees that result in the sincerity,commitment and loyalty of the employees towards the organization.

y

The employees work with full enthusiasm and energetic behavior which resultsin the increase in production and ultimately the increased profit.


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y SOCIAL SECURITY

y Social securityprimarily refers to a social insurance program providing socialprotection, or protection against socially recognized conditions, includingpoverty, old age, disability, unemployment and others. Social security mayrefer to:

y social insurance, where people receive benefits or services in recognitionof contributions to an insurance scheme. These services typically includeprovision for retirement pensions, disability insurance, survivor benefits andunemployment insurance.

y income maintenancemainly the distribution of cash in the event ofinterruption of employment, including retirement, disability andunemployment


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y ILO

y ILO was setup in 1919 as a part of League of Nations for the promotion ofuniversal peace through social justice.

y Important areas of ILO activities& field operations

y - Manpower orgn & vocational training

y - Migrant workers- need to promote equality of migrant workers in all social &

labour matters.y -Women workers- protection

- Child workers- against exploitation

y - Social Security

y -Conditions of work

y

-Health , safety & welfare


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y ILOS WELFARE WORK

y ILO has suggested welfare funds on a collective basis to finance activities insmall undertakings.

y

It has adopted a number of convections & recommendations regardingindustrial accidents & occupational health.

y New dimension to welfare activities has been provided by ILOs contribution tofamily welfare & population education prog among industrial workers inorganised sector in India

y It has rendered exemplary service to all 3 elements composing it govt,

employees & workers.y It has greatly influenced labour legislation, labour welfare , trade unionism &

Industrial Relations in India.


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y WORKMENS COMPENSATION ACT

y Object of the Act

y To impose an obligation upon employers to pay compensation to workers foraccidents arising out of & in course of employment. The scheme of the Act isnot to compensate the workman in lieu of wages, but to pay compensation forthe injury caused.

y Applicability

y

The act extends to whole of India and applies to any person who is employed,otherwise than in clerical capacity, in railways, factories, mines, plantataions,mechanically propelled vehicles, loading and unloading work on a ship,construction, maintenance and repairs of roads and bridges, electricitygeneratin, cinemas, etc


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y A workman is not entitled for compensation, if he does not present himself formedical examination when required or if he fails to take proper medical

treatment which aggravates injury or device.y Incase it is not fatal, an employment injury may cause any injury resulting in (1)

permanent total disablement.(2) permanent partial disablement 93) temporarydisablement.

y The rate of compensation in case of death is an amount equal to 50% ofmonthly wages of the deceased workman multiplied by the relevant factor orRs 80,000 whichever is more.

y While permanent total disablement results from the injury, the compensationwill be an amount equal to 60 % of monthly wages of the injured workmanmultiplied by the relevant factor or Rs 90,000 whichever is more.

y Where the monthly wages of a workman exceed Rs 4000, his monthly wages

will be deemed to be Rs 4000 only.y The ceiling of maximum amount of compensation is Rs 4.56 lakh in the case of

death & Rs 5.48 lakh for permanent total disablement.


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y Where partial disablement results from the injury, as specified by partII of

y

Sch I , such percentage of compensation which would have been payable inthe case of permanent total disablement as is specified therein as being thepercentage loss of earning capacity caused by that injury.

y The percentage loss of earning cpacity depends on the loss of limbs and variesfrom 1 % to 90%. In case of an injury not specified in Sch I, such percentage ofcompensation payable in the case of permanent total disablement as

proportionate to the loss of earning capacity permanently caused by the injury.y When more injuries than one are caused by the same accident, the amount of

compensation payable under this head shall be aggregated but not so in anycase as to exceed the mount which would have been payable if permanent totaldisablement had resulted from injuries.

y In case of temporary disablement , a half-monthly payment of the sum

equivalent to 25% of monthly wages of the workman has to be paidy In cases, where the disablement is 28 days or more, compensation is payable

from the date of disablement.

y In other cases , the same is payable after the expiry of a waiting period of 3 days.


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y There after, the compensation will be payable half-monthly during thedisablement or during a period of5 yrs which ever period is shorter.

y There is also a provision for commutation of half-monthly payments to a lumpsum amount by agreement between the parties or by an application by eitherparty to the commissioner if the payment continue for not less than 6 months.

y Deduction can be made from any lump sum or half-monthly payments towhich the workman is entitled the amount of any payment or allowance whichthe workman has received from the employer by way of compensation during

the period of disablement prior to the receipt of such lump sum or of the firsthalf monthly payment, as the case may be.

y It is provided that all cases of fatal accidents should be brought to the notice ofthe commissioner for workmens compensation and incase the employeradmits the liability , the amount of compensation payable will be depositedwith him.

y Where the employer disclaims the liability for compensation to the extentclaimed, he has to make provisional payment based on the extent of liabilitywhich he accepts & such payments must be deposited with the commissioneror to be paid to the workman as the case may be.


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y In such cases, the commissioner may, after such enquiry as he thinks fit, informthe dependants that it is open to them to prefer a claim & may give such otherinformation as he thinks fit.

y Advances by the employers against compensation are permitted to the extent ofan amount equal to 3 months wages.

y Commissioner is also empowered to deduct an amount not exceeding Rs 100from the amount of compensation in order to identify the person who incurredfuneral expenses.

y

Employer is also required to file annual return giving details of thecompensation paid, number of injuries & other particulars.

y Amount deposited with the commissioner for workmens compensation ispayable to the dependents of the workmen.

y For purposes of the act dependants are grouped as 1) those who are consideredas dependants without any proof2) those who must prove that they are

dependants.y The first group includes a widow, minor legitimate son, an unmarried legitimate

daughter or a widowed mother.

y Following are included in the second group if they were wholly or partiallydependant on the earnings of the worker at the time of his/her death.


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y A widower, a parent other than a widowed mother, a minor illegitimate on, an

unmarried illegitimate daughter etc..y If the employer is in default in paying the compensation within one month

from the date it fell due, the commissioner may direct for recovery of not onlythe amount of arrears but also a simple interest @ 6% per annum of theamount due.

y If the workman gets any occupational disease peculiar to that employment ,

that would be deemed to be an injury by accident arising out of & in the causeof his employment for purposes of this act.

y In the case of occupational diseases, the compensation will be payable only ifthe workman has been in the service of the employer for more than 6 months


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y ESI ACT -1948

y Object of the act:

y To provide for certain benefits to employees in case of sickness, maternityand injury during employment and to make provision for certain othermatters in relation thereto

y Applicability of the Act:

y All factories

y Shops employing 20 or more persons.y Such other Govt. specified establishments.

y Act does not apply to:

y Mines

y Railway running sheds

y

Govt. factories or establishments and Indian naval, military, or air forcey Other Govt. notified exempted establishments


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y ACTAUTHORISATION

y 1. To Promote and measure for health and welfare of INSURED

EMPLOYEES (IE)y 2. Intervene for the rehabilitation and re-employment for disabled / injured

y 3. To appoint inspectors for purposed of the act

y 4. To determine the amount of contribution and relevant verification

y Standing committee empowered to-

y 1. Shall administer the affair of the corporationy 2. Shall submit the consideration and decision of the corporations

y 3. Have discretion on other issues of corporation

y Medical BenefitCouncil

y

1. Advise to administration on Medical Benefit, purpose of grants andrelated matter

y 2. Have power and duties of INVESTIGATION on Empanelled Medicalpractitioner, its treatment and attendance

y 3. Perform other duties


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y Inspectors- Duties- Powers

y Duties -

y 1. Inquiring into the correctness in any return of contributiony 2. Ascertaining Provision of the Act has been complied

y 3. Other authorized / specified duties by the corporation.

y Powers -

y 1. To collect require and relevant information of employer / contractor or

bothy 2. To enter org / contractor premises at reasonable time and examined

relevant account books and relevant documents, payment of wages etc.

y 3. To examine employer, contractor, his agent / servant or IE in factory /office

y 4. To make copies of extracts from any registrar, account books and otherbooks of maintenance of org.


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y Employer/ Employees Contribution

y It is the principle employers responsibility to deposit his own as well as

employees contribution in respect of all employees including the contractlabour, into the E.S.I. Account. Non-availability of funds cannot be aground for non-payment of contributions under the act. There is noprovision to waive the contribution, damages and interest

y The employer is required to contribute at the rate of4.75% of the wagespaid/ payable in respect of every wage period. The employees are alsorequired to contribute at the rate of1.75% of their wages except when theaverage daily wages in a wage period are equal to or less than Rs.40.Benefits available to insured employee

y The purpose of the Employee State Insurance Act is to provide benefits asdetailed in the Act particularly in section 46, to the insured persons or theirdependants.

y Sickness benefit

y Maternity benefit

y Disablement benefit

y Dependents benefit

y Medical benefit & Funeral expenses


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y Sickness benefit -Every insured employee is entitled to the cash benefit forthe period of sickness certified by a duly appointed medical practitioner if the

contributions in respect of him were payable for not less than 78 days in thecorresponding contribution period.

y Cash benefit takes the form of periodical payment made to an insuredperson which is payable for maximum numbers of91 days in any twoconsecutive benefit periods. The benefit is not paid for the first two days ofsickness which is treated as the waiting period.

y Insured persons suffering from long term diseases like T.B., leprosy, mental,heart etc. and who have been continuous employment for two years areentitled to get sickness benefit period up to 309 days.

y Maternity benefit -A periodical cash benefit is payable to an insuredwoman employee, in cash of confinement, miscarriage, medicaltermination of pregnancy, premature birth of a child or sickness arisingfrom pregnancy etc. If the contributions in respect of her were payable forat least 70days in the two immediately preceding contribution periods

y The benefit is payable of twice the standard benefit rate or Rs.20, whicheveris higher for all days on which she does not work during the prescribedperiod


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y Dependents benefit

y If any employee dies during any period for which he is entitled to a cash

benefit, the amount of such benefit shall be payable up to & including the dayof his death. The amount of benefit shall be paid to the nominee or, wherethere is no nomination, to the heir or legal representative of the deceasedemployee.

y Funeral Expenses

y If an insured employee dies, the eldest serving member of his family is entitled

to reimbursement of such expenditure subject to maximum of Rs.2500 (W.E.F.December,2000)

y The claim for the funeral expenses should be submitted with prescribeddocument and form within three months of the death of the insuredemployee.

y Adjudication of dispute &claims

y Employees Insurance Court

y Institutions of proceedings, etc.

y Powers of employees Insurance Court

y Reference to High Court

y Appeal >Stay of payment during pending of appeal


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y Offences and penalties

y Punishment for false statement :- In this case any false statement or falserepresentation, shall be punishable with imprisonment up to Rs.2000 or

with bothy Punishment for failure to pay contributions:- if any person fails to pay

any contribution which under to this act he is liable to pay, he shall bepunishable with imprisonment up to three years.

y Punishment for othercontravention :- in contraventions like dismisses,discharges, reduces or otherwise punishes an employee, shall be punishable

with imprisonment up to one year or with fine up to Rs.4000 or with bothy Power to recover damages:- If employer fails to pay the amount of

contribution then corporation may recover from the employer by way ofpenalty.

y Power ofcourt to make orders:- If court makes order for employer- ifemployer is not able to make this order within period then employer shall bepunishable with imprisonment in respect thereof U/S.85 and shall also beliable to pay fine up to Rs.1000 for everyday.


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y EMPLOYEES PROVIDENT FUND AND MISCALLANEOUS PROVISIONSACT -1952

y Applicabilityi) Every establishment which is a factory engaged in any industryspecified in Schedule 1 and in which 20 or more persons areemployed and

y ii) Any other establishment employing 20 or more persons whichCentral Government may, by notification, specify in this behalf.(Infancy period of 3 years has been withdrawn by ordinance w.e.f.22-9-97)

y iii) any establishment employing even less than 20 persons can becovered voluntarily u/s 1(4) of the Act.

y EligibilityAny person who is employed for work of an establishment or employed throughcontractor in or in connection with the work of an establishment

y BenefitsEmployees covered enjoy a benefit of Social Security in the form of anunattachable, unwithdrawable (except employees and employers contributeequally throughout the covered persons employment. This sum is payablenormally on retirement or death. Other Benefits include Employes PensionScheme and Employees Deposit Linked insurance Fund.


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y Penal ProvisionsLiable to be arrested without warrant being a cognisable offense. Defaults byemployer in paying contributions or inspection/ administration charges attractimprisonment up to 3 years and fines up to Rs. 10,000 (S.14.) For anyretrospective application, all dues have to be paid by employer with damages upto 100% of arrears.

y Benefits at a glance

y 1. Advance for Purchase of Dwelling Site.

2. Advance for Purchase of Dwelling House/flat.3. Advance for Construction of a House.4. Advance for Repayment of housing loan to State Govt. housing board or anyother govt. recognised housing finance body.5. Advance for IIIness viz. Hospitalisation for more than month, major surgicaloperations or suffering from TB, leprosy, paralysis, cancer, heart ailment etc.

6. Advance for Marriage of Self/Son/Daughter/Sister/Brother.7. Advance for Post MatriculationEducation of Son/Daughter.8. Advance for Damage to the property Due to Natural calamity(Flood Riot/Earthquake).9. Advance for Member affected by cut in the supply of electricity.10. Advance for Member who is physically handicapped.


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y [A member employee can also withdraw full amount standing to hiscredit. in fund (para 69).....]

a) on Resignation.b) On Retirement from the service on attaining the age of58 yrs.c) on Retirement on account for permanent or total incapacity to work.d) immediately before Migration from India for permanent settlement abroador for taking up employment abroad.

e) on Termination due to voluntary retirement Scheme, retrenchment, closureof the factory/establishment.


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y MATERNITY BENEFIT ACT-1961

y This Act applies to women who work in factories, mines, plantations,

performance establishments and shops with more than 10 employees, andprovides 12 weeks paid maternity leave, and 6 weeks paid leave in relation tomiscarriage or termination of pregnancy. It does not apply to employeescovered by the ESI (see ss. 2, 3, 5(2) and 9.).

y Maternity benefit is paid to employees who have been employed for not lessthan 80 days. It is paid at the average daily wage, calculated for the three

months preceding absence on maternity leave, and is paid for a period of sixweeks before delivery and six weeks after.

y However, the employee also has the option of taking the full 12 weeks afterdelivery.

y It is prohibited to employ female employees during the six weeks after delivery,miscarriage or termination of pregnancy.

y Pregnant employees can request that they not perform arduous work or workwhich involves long hours of standing or which is likely to interfere with thepregnancy, the normal development of the foetus, adversely affect health orcause a miscarriage up to 10 weeks before the expected delivery


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y In addition, if the employer does not provide free facilities for pre- and post-natal care, the employee is entitled to a medical allowance. Maternity benefit can

be paid in advance for the period preceding the expected delivery, upon proof ofpregnancy (see ss. 4, 5, 8 and 9.).

y Notice must be given before the employer is required to permit maternity leave,but failure to give notice does not disentitle the employee from receivingmaternity benefits (see s. 6.).

y One month of leave and benefits is available for women who are ill due to

pregnancy, delivery, premature birth, miscarriage, termination of pregnancy andtubectomy if medical evidence is provided. This is in addition to the normal 12weeks maternity leave and allowance (see s.10.).

y Under s.11, in addition to other scheduled breaks, nursing breaks are to beprovided twice daily until the child is 15 months old.


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y It is prohibited to dismiss, or issue a notice of dismissal for, an employee whilethey are absent on maternity leave, or to vary her conditions of service.Dismissal of a female employee during pregnancy does not deprive her of herright to maternity allowance or medical bonus allowance except in cases ofgross misconduct. No deductions from wages can be made on account ofmaternity leave, the fact that lighter duties were performed before takingmaternity leave or the taking of nursing breaks (see ss. 12 and 13.).

y The Act is enforced by penalty provisions and there is provision for theappointment of an inspector with powers to inquire into complaints, enterpremises, examine persons, require the production of information, take copiesof documents and direct payment of monies. The later power is subject toappeal provisions (see ss. 14-23.).


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y PAYMENT OF GRATUITY ACT 1972

y The Act provides for the payment of gratuity to workers employed in everyfactory, shop & establishments or educational institution employing 10 or morepersons on any day of the proceeding 12 months. A shop or establishment towhich the Act has become applicable shall continue to be governed by the Acteven if the number of persons employed falls bellow 10 at any subsequentstage.

y All the employees irrespective of status or salary are entitled to the payment ofgratuity on completion of5 years of service. In case of death or disablement

there is no minimum eligibility period. The amount of gratuity payable shall beat the rate of17 days wages based on the rate of wages last drawn, for everycompleted year of service. The maximum amount of gratuity payable is Rs.3,50,000/-.

y Formula is - Last Wages *15*No. of services/26

yNomination

y Each employee is required to nominate one or more member of his family, asdefined in the Act, who will receive the gratuity in the event of the death of theemployee.


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y ADMINISTRATIVE MACHINERYAll the Assistant Labour Commissioners andLabour Officers in the Labour Department have been appointed Controlling

Authority and all the Deputy Labour Commissioners have been appointedAppellate Authority under the Act.

y RESPONSIBILITY OF THE EMPLOYEERS

y It is the duty of the employer to determine the amount of gratuity as soon as itbecomes payable and to give notice of the same to the person to whom gratuity ispayable and also to the Controlling Authority.

y The employer shall also provide to pay the amount of gratuity to the person towhom it is payable. Failure to do so shall render him liable to pay the interest at theprevailing rate from time taken.

y In case the employee is not paid the due amount of gratuity he should apply,ordinarily within thirty days, in Form-I to the employer.

y If an employer fails to pay due gratuity even after the receipt of notice in Form-1,the claimant employee or his nominee or legal heir, may within ninety days of theoccurrence of the case for the application, should apply in Form-IV, to theControlling Authority for issuing direction to the employer.

y After conducting the enquiry as prescribed, the Controlling Authority willdetermine the amount payable and direct the employer to make the payment.


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y PENALTY

y The Act provides that whoever makes false statement for the purpose ofavoiding any payment shall be punishable with imprisonment for a term which

may extend to six months or with fine which may extend to ten thousand rupeesor with both.

y An employer who contravenes any provisions of the Act shall be liable forimprisonment for a term of not less than three months but which may extend toone year or with fine which shall not be less than ten thousand rupees butwhich may extend to twenty thousand rupees or with both.

y Where the offence relates to non-payment of gratuity the employer can bepunished with imprisonment for a term which is not less than six months.


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y Plantation: any plantation to which this Act applies and includes offices,hospitals, dispensaries, schools and any other premises used for any purposesconnected with such plantation.

y Qualified medical practitioner: means a person holding a qualificationgranted by an authority specified under section 3 of the Indian MedicalDegrees Act 1916 of under any provincial or State Medical Council Act.

y Wages: as defined under clause (h) of section 2 of the Minimum Wages Act1948 (11 of1948).

y Worker: means a person employed in a plantation for hire or reward, whether

directly or through any agency, to do any work, skilled, unskilled, manual orclerical, having wages less than Rs. 750/- p.m., but does not include medical officer, managerial staff and temporary workers employed in any workrelating to construction, repair, maintena

y nce of roads, bridge, etc.


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y Registration of Plantations:

y Section 3-B of the PLA, 1951 makes it compulsory for every employer of aplantation to register it within sixty days of its coming into existence.

y Inspecting staff: Under Section'4, the state government has the power toappoint for the state a duly qualified person to be -the chief inspector ofplantations and other persons to, be inspectors subordinate to the chiefinspector.

y Power and functions of Inspectors [Sections 5&6]:

y to examine and make inquiries to ascertain whether the provisions of this Act

are being observed in any plantation.y can enter, inspect and examine with assistants any part of plantation at any

reasonable time and take statements on any person, provided that no personshall be compelled to answer any question or make any statement tending toincriminate himself.

y Certifying surgeons. [Section 7]: The state government is responsible for

appointing qualified medical practitioners to be certifying surgeons for withinlocal limits of a plantation or class of plantations.

y Duty of the certifying surgeon:

y the examination and certification of workers,

y the exercise of such medical supervision where adolescents and children are orare to be employed in any work in any plantation which is likely to cause injuryto their health.


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y HEALTH - Responsibilities of the Employers(Facilities to be provided in the Plantations)

y Drinking Water: In every plantation effective arrangements shall be made bythe employer to provide and maintain at convenient place a sufficient -supply

of wholesome drinking water for all workers [Section 8].y Conservancy: There shall be a sufficient number of conveniently situated &

accessible separate latrines and urinals for males and females in everyplantation. All of these are to be maintained in a clean and sanitary condition[section g].

y Medical facilities: Medical facilities for workers and their families (as

prescribed by the state government) have to be maintained and made availableby the Employer [Section 10].

y In the absence of such prescribed medical facilities, the Chief Inspectorcan arrange for provision- and maintenance of medical facilities andrecover the costs of these from the defaulting employer. [Actual Recoveryof such costs will be done by the Collector as arrear of Land Revenue on Chief

Inspectors' certification].


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y WELFARE

y Canteens: Under Section 11, the State Government has been empowered to askEmployers to open Canteen(s) in Plantations employing one hundred and fiftyworkers or more and to make rules for the working and maintenance ofcanteens.

y There is also a provision for the constitution of a managing committee inwhich the workers are represented.

y Creches: The employer must provide and maintain suitable rooms for childrenwhere the number of workers is more than fifty or the number of children of

women workers is twenty or more [Section 12].y Creches are to be maintained in a clean, safe and sanitary conditions and are to

be run by a woman trained n the care of children and infants as per the law.

y Recreational facilities: every employer to make provision in the Plantationfor recreational facilities for the workers and their children [Section 13].

y Educational facilities: In every Plantation where the children- of the workers

between the ages of six and twelve exceed the number twenty five, theemployer is under obligation to provide educational facilities as may bespecified by the State Government [Section 14].


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y Housing facilities: It is the duty of the employer to provide and maintainnecessary housing accommodation for every worker and his family[Section 15].

y Every worker (including his family) is entitled to a housing accommodationafter six months of continuous service whether staying inside or outside a

plantation and who has expressed a desire in writing to live in the plantation.The requirement of continuous service of six months will not apply to a workerwho is the member of the family of a diseased worker who was residing in theplantation. Under Section 16, the-State Government has been empowered tomake rules relating to standards of housing and constitution of an advisoryboard with representatives of workers and employers.

y Liability of employer in case of accidents resulting from collapse ofhouses provided by him: If the house collapse is not solely or directlyattributable to a fault on the part of the occupant or to a natural calamity, theemployer shall be liable to pay compensation to the worker or his kin sufferinginjury or death. In order to claim this compensation, the worker or his nextof kin or his authorised agent must write to Labour Commissioner within

6 months of the accident. The compensation would be paid under theWorkmen's Compensation Act, 1923.


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y Other facilities: The State Government has the power to make rulesrequiring the plantation employer to provide the workers and umbrellas,blankets, rain coats or other like amenities for the protection of workers fromrain or cold [Section 17].

y Welfare Officers: In plantations that empl0y three hundred workers or more,the employer has to employ welfare officers as prescribed [Section 18].


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y The notice of period of work has to be displayed and correctlymaintained in every plantation. An employer can refuse to employ aworker for any day on which he is more than half hour late from the timedisplayed on notice of period of work [Section 23].

y No Night for women and children:Women and children can be employedonly between the hours of 6am and 7pm unless permitted by the StateGovernment [Section 25].

y Non-adult workers to carry tokens: No child or adolescent will be allowed to

work in the plantation unless the employer has a certificate of fitness from theCertifying Surgeon. The token that non adult worker is required to carry bearsa reference to this fitness certificate valid for twelve months. The fee for thefitness certificate, if any, is to be paid by the employer and cannot be recoveredfrom the young worker or his/ her guardian [Section 26 & 27).

y Sickness and maternity benefits: Every worker is entitled to sickness

allowance, provided this is certified by a qualified medical practitioner.Women workers are entitled to maternity allowance and benefits under theMaternity Benefit Act, 1961[Section 32].


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y CONTRACT LABOUR (REGULATION AND ABOLOTION ACT) -1970

y The Object of the Contract Labour Regulation and Abolition) Act, 1970 is toprevent exploitation of contract labour and also to introduce better conditions ofwork.

y A workman is deemed to be employed as Contract Labour when he is hired inconnection with the work of an establishment by or through a Contractor.Contract workmen are indirect employees. Contract Labour differs from DirectLabour in terms of employment relationship with the establishment and methodof wage payment.

y

ContractLabour, by and large is not borne on pay roll nor is paid directly.y The Contract Workmen are hired, supervised and remunerated by the

Contractor, who in turn, is remunerated by the Establishment hiring the servicesof the Contractor


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y Registration And LicensingThe Act applies to the Principal Employer of an Establishment and theContractor where in 20 or more workmen are employed or were employed

even for one day during preceding 12 months as Contract Labour.y This Act does not apply to the Establishments where work performed is of

intermittent or seasonal nature.

y If a Principal Employer or the Contractor falls within the vicinity of this Actthen, such Principal Employer and the Contractor have to apply forRegistration of the Establishment and License respectively.

y The Act also provides for Temporary Registration in case the Contract Labouris hired for a period not more than 15 days.

y Any change occurring in the particulars specified in the Registration orLicensing Certificate needs to be informed to the concerned RegisteringOfficer within 30 days of such change.

y From combined reading of Section 7 and Rules 17 & 18 of the Contract Labour(Regulation and Abolition) Central Rules, 1971, it appears that the PrincipalEmployer has to apply for registration in respect of each establishment. Otherimportant point to note is that a License issued for One Contract cannot beused for entirely different Contract work even though there is no change in theEstablishment.


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y Responsibilities


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ResponsibilitiesThe Act enjoins Joint and Several responsibity on the Principal Employer andthe Contractor. The Principal Employer should ensure that the Contractor doesthe following:a) Pays the wages as determined by the Government, if any, or;

y b) Pays the wages as may be fixed by the Commissioner of Labour.

y c) In their absence pays fair wages to contract labourer.

y d) Provides the following facilities:i. Canteen (if employing 100 or more workmen in one place) and if the work islikely to last for 6 months or more.

ii. Rest rooms where the workmen are required to halt at night and the work islikely to last for 3 months or more.iii. Requisite number of latrines and urinals - separate for men and women.iv. Drinking water.v. Washing.vi. First Aid.vii. Crche

y e) Maintains various registers and records, displays notices, abstracts of theActs, Rules etc.

y f) Issues employment card to his workmen, etc.

Ch kli F P i i l E l


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y Checklist For Principal Employer1. Registration of the Establishment.2. Display of the following notices rate of wages, hours of work, wageperiod, date of payment of wages, date of payment of unpaid wages and name

and address of the inspector having jurisdiction.3. Maintenance and Preservation of Register of Contractor.4. Filing of Return of Commencement and Completion of the Contract.5. Filing of Annual Return.6. Supervising the responsibilities of Contractor to avoid enjoining of theliabilities.7. Ensure provision that facilities of Canteen, Drinking Water, Washing, RestRoom, Latrines and Urinals, First Aid, Crche are provided by the Contractor.

y Checklist For Contractor1. Licensing.2. Renewal of the License.3. Maintenance and Preservation of Register of Persons employed, Muster

Roll, Register of wages, Register of Fines, Register of Deductions for damagesor loss, Register of advances, Register of overtime.


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y 4. Display of Notice rate of wages, hours of work, wage period, date of paymentof wages, date of payment of unpaid wages and name and address of theinspector having jurisdiction.5. Provide facilities of Canteen, Drinking Water, Washing, Rest Room, Latrines

and Urinals, First Aid, Crche.6. Employment card.7. Service Certificates.8. Half yearly return.


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y THE KERALA SHOPS AND COMMERCIAL ESTABLISHMENTS ACT, 1960

y I.

y OBJECT : To provide for the welfare of the employees employed in the shops

and commercialy establishments and to regulate the conditions of their work and employment

y II.

y APPLICABILITY : It extends to the whole state of kerala and applies to allshopes and

y

commercial establishments defined under the Act

y III. REGISTRATION OF THE EASTABLISHMENT : The employer of everyshopes and

y commercial establishments shall apply for registration in Form B-I withprescribed fee to the

y competent authority (Assistant labour officer-Grade III) within sixty days fromthedate on which

y the eatablishment commences its work


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y RENEWAL OF REGISTRATION: Every employer shall renew the registrationevery year at

y least 30 days before the expiry of the registration for the previous year. The

application fory renewal with the registration certificate and prescribed fee shall be submitted to

the competent

y authority within the period. The fee for registration and renewel shall beremmitted in the office of

y the Asst. labour officer concerned or treasury remittence

y VI

y AMENDMENT OF REGISTRATION:Any employer who desires to have hisregistration

y certificate amended shall give a notice in Form-B--III to the competentauthoritynwith copy to the

y inspector having jurisdiction over the area in which the establishment issituated along with pre

y scribed fee for amendment of registration certificate


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y CLOSING OF SHOPS : Every shops shall remain entirely closed on one day ofthe week and

y a notice shall be permanently exhibited in the shop specifying the day ofclosure. This is not

y applicable to shops excempted in the Act or excempted by the Govt.

y HOURS OF WORK : No employee in any establishment shall be required to

work for morey than eight hours in any day and 48 hours in any week. The number of hours of

which including

y overtime shall not exceed ten hours in any day except on stock taking etc. andthe total number

y of hours of over time shall not exceed fifty for any quarter.

O O O h l k


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y EXTRAWAGES FOR OVERTIME WORK: Where an employee works in anyestablishment

y for eight hours in any day or for more than forty eight hours in any week shallinrespect of such

y overtime work be entitled to twice the ordinary rate of wages.

y XI

y WEEKLY HOLIDAYS : Every Person employed in shops or a commercialestablishments

y shall be allowed in each week a holiday of one whole day.

y XI A INTERVALS FOR REST:- No period of work of an employee in anestablishment shall be given

y rest for atleast one hour before work of four hours


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y XIII DISMISSAL : No employee shall be dismissed except on a reasonable cause


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y XIII DISMISSAL : No employee shall be dismissed except on a reasonable causeand subject to

y Section-18 of the Act. The aggrieved employee may file appeal within sixty daysto the date of

y delivery of the order terminating his services with the employer, to theappelllate authority

y (Deputy labour Commissioner concerned)

y 84

y Page 3

y

XIVREGISTERS AND RECORDS TO BE MAINTAINED BY THEEMPLOYER :

y 1. Register of employment in Form A or B

y 2. Service record in Form-BB

y 3. A register of holidays and leave in Form-F

y 4. A visit book

y 5. Display a notice of hours of work in Form-D

y 6. A notice of weekly closure

y 7. A notice containg the extract of the Act and Rules

y WORKERS EDUCATION SCHEME


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y WORKER S EDUCATION SCHEME

y A tripartite semi- autonomous body known as the Central Board for workersEducation, registered as a society, was set up under Ministry Of Lavour , GOI toformulate policies & programmes and to administer Workers Education

Scheme.y The board has its representatives from Central, & State Govts , orgns of

employers & workers & educational institutions.

y Headquarters in Nagpur.

y Indian Institute of Workers Education was established by the board in 1970 toconduct training programmes at national levels for its official and trade union

leaders.

y It conducts training programmes and refresher courses for education officers,courses for trade union functionaries and provides library and allied services.


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y OBJECTIVES

y 1.To equip all sections of workers , including rural workers for intelligentparticipation in social and economic development of nation.

y 2.To develop among workers a greater understanding of problems of theirsocial and economic environment

y 3.To develop leadership

y 4.To develop strong, united and more responsible trade unions through moreenlightened members and better trained officials.

y 5. To strengthen democratic processes and traditions in trade union movement

y 6.To enable trade unions themselves to takeover ultimately the functions ofworkers education.


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y CENTRAL GOVERNMENT MACHINERY FOR LABOURADMINISTRATION

y The Organisation of the Chief Labour Commissioner (C))known as CentralIndustrial Relations Machinery was set up in April, 1945 in pursuance of therecommendation of the Royal Commission on Labour in India and was thencharged mainly with duties of prevention and settlement of industrialdisputes, enforcement of labour laws and to promote welfare of workers inthe undertakings falling within the sphere of the Central Government.

y BROAD STRUCTURE OF THE ORGANISATION:

y

CIRM is headed by the Chief Labour Commissioner (Central)[

CLC (C) ].y It is entrusted with the task of maintaining good industrial relations in the

Central sphere.

y At the headquarters, CIRM has a complement of25 officers who perform lineand staff functions.

y In the field, the machinery has a complement of253 officers and their

establishments are spread over different parts of the country with zonal,regional and unit level formations as presented in the organogram


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y Objectives of the CLC(C) Organisation.

y 1. Promotion of peaceful and harmonious Industrial Relations in the CentralSphere through prevention & settlement of I.ds. in the Industries for which

Central Govt. is the appropriate Govt.y 2. Verification of the Trade Union's Membership.

y 3. Enforcement of labour laws in central sphere.

y SPECIFIC FUNCTIONS OF CIRM

y The CIRM administers the Labour Laws in the industries for which The CentralGovt. is the `appropriate Government' under that Act, Its functions therefore

are:

y * Prevention and settlement of industrial disputes;

y * Enforcement of Labour Laws;

y * Enforcement of Awards and Settlements;

y * Conduct of inquiries into the breaches of Code of Discipline;

y * Promotion of Works Committees and Workers' Participation inManagement;

y * Collection of statistical information;

y * Defense of court cases and writ petitions arising out of

y Implementation of labour laws.


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y LABOUR ADMINISTRATION

y Labour administration is defined by ILO Convention No. 150 as "public

administration activities in the field of national labour policy." It is anessential tool at the disposal of governments in fulfilling their responsibilitiestowards social issues.

y FUNCTIONS OF LABOUR ADMINISTRATION

y Labour protection

y

Employment policyy Study, research and statistics

y Labour relations


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y MINISTRY OF LABOUR AND EMPLOYMENT

y The main responsibility of the Ministry of Labour & Employment is to protectand safeguard the interests of workers in general and those who constitute the

poor, deprived and disadvantaged sections of the society, in particular, withdue regard to creating a healthy work environment for higher production andproductivity and to develop and coordinate vocational skill training andemployment services

y Objectives

y Labour Policy and legislation

y Safety, health and welfare of labour

y Social security of labourPolicy relating to special target groups such as women and child labour

y Industrial relations and enforcement of labour laws in the Central sphere

y Adjudication of industrial disputes through Central Government Industrial

Tribunals cum Labour Courts and National Industrial Tribunals.


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y DIRECTORATE OF FACTORIES AND BOILERS

y The department of Factories and Boilers is the functionary of the LabourSecretariat of Government of Karnataka.

y The main functions of the department is to enforce various Labour andEnvironmental related legislations viz., Factories Act, Payment of Wages Act,Maternity Benefit Act, Indian Boiler Act and the Environment (Protection)Act.

y The main aim and objective is to protect the interest of the workmen toensure minimum basic amenities, prevent accidents, occupational diseaseslikely to occur in the course of employment, ensure conducive safe workplace.

y The department also conducts periodical inspection and certification ofregistered boilers.

y More stress is being given in respect of high-pressure boilers and in particular

the one installed at power generating units.y Scrutiny of design, erection of boilers and suggestions for repairs are also the

prime works carried out to ensure boiler safety.

y Regular examinations and certifications of personnel required to operate andmaintain the boilers are being conducted in addition to imparting training.

Documents

24949618 Employee Welfare