Training ModuleOn Labour Laws
Various ActsThe Factories ActThe Contract Labour (R&A) ActThe Payment of Wages ActThe Minimum Wages ActThe Payment of Bonus ActThe Employment Exchanges ActThe Workmens Compensation ActThe Maternity Benefit ActThe Industrial Employment (Standing Orders) ActThe Punjab Labour Welfare Fund ActThe Payment of Gratuity ActThe Industrial Disputes Act
18.The Employees State Insurance Act
Applicability of ActsThe Factories Act
Applicability :Any premises including precincts thereof where ten or more workers are working or were working on any day of preceding twelve months and in any part of which a manufacturing process is being carried on with the aid of power,
where twenty or more workers are working or were working on any day of preceding twelve months and in any part of which a manufacturing process is being carried on without the aid of power.
Scope : An Act to consolidate and amend the law regulating labour in factories
Comments :This Act covers basic rules and regulations for starting of a new factory and maintaining it consistently under the conditions prescribed in the Act for safety and health and welfare of the employees.
Applicability of Acts The Payment of Wages ActApplicability :Every FactoryScope :An Act to regulate the payment of wages to certain classes of employed persons.Comments : This Act covers various rules regarding payment of wages like date of payment, place of payment, mode of payment, verification by principle employer and records thereof. It also describes eligible deduction from wages and related procedures.
The Minimum Wages ActApplicability :Every Factory
Scope :An Act to provide for fixing minimum rates of wages in certain employments.
Comments : This Act covers rules & regulations regarding minimum wages applicable to nature of industry which is decided based on process carried out. It also covers the index for Dearness Allowance and HRA rules.Applicability of Acts
Applicability of ActsThe Contract Labour (Regulation & Abolition) ActApplicability :Every establishment in which twenty or more workmen are employed or were employed on any day of the preceding twelve months as contract labour through contractor for the work to be carried out which is not directly connected to manufacturing activities,to every contractor who employs or who employed on any day of the preceding twelve months twenty or more workmen.Scope :An Act to regulate the employment of contract labour in certain establishments and to provide for its abolition in certain circumstances and for matters connected therewith.Comments :The principle employer and the contractor should obtain a permission by applying for registration to The Competent Authority.
The Payment of Bonus ActApplicability :
Every factory & every other establishment in which twenty or more persons are employed on any day during an accounting year.
An Act to provide for the payment of bonus to persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matters connected therewith.
Every factory or establishment completed 5 years or the year in which it earns profits whichever is earlier, this Act is applicable then onwards. Registers to be maintained and Returns to be submitted on applicability of this Act.Applicability of Acts
Applicability of Acts The Employment Exchanges (Compulsory Notification of Vacancies) ActApplicability :Every establishment employing twenty five or more persons.
Scope :An Act to provide for compulsory notification of vacancies to Employment Exchanges.
Comments :Needs to comply by notifying vacancies every quarter and to submit the returns quarterly as well as biannually.
The Provident Fund ActApplicability :Every establishment which is a factory specified in Schedule I and where twenty or more persons are employed.
Scope :An Act to provide for the institution of Provident Funds for employees in factories and other establishments
Comments :Registration under the Act is mandatory for all. Principle employer is responsible for deductions and remittance of PF contributions under this Act even for contract employees also. Monthly, yearly returns are required to be submitted in the prescribed format.Applicability of Acts
The Workmens Compensation Act
Applicability :Every Factory
Scope :An Act to provide for the payment by certain classes of employers to their workmen of compensation for injury by accident.
Comments :The Act speaks about the compensation payable in case of disablement due to occupational hazards. ESI can be substituted by having insurance policy under the Act to take care of compensation payable, if any.Applicability of Acts
Applicability of ActsThe Maternity Benefit ActApplicability :Every shop & establishment in which ten or more persons are employed on any day of the preceding twelve months or where Employees State Insurance Act is applicable for the time being. Scope :An Act to regulate employment of women in certain establishments for certain period before and after child-birth and to provide for maternity benefits and certain other benefits.Comments :This act describes maternity benefits to the working women in certain establishments.
The Industrial Employment (Standing Orders) Act
Every industrial establishment wherein fifty or more workmen are employed on any day of preceding twelve months.
Scope :An Act to provide for defining with sufficient precision certain conditions of employment in industrial establishments.
This Act regulates basic terms and conditions of employment. The employer can get its rules and regulations certified from the competent authority or The Model Standing Orders described in the Act gets applied to the establishment.Applicability of Acts
The Payment of Gratuity ActApplicability :Every factory,every shop & establishment in which ten or more persons are employed, or were employed on any day of the preceding twelve months.Scope :An Act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops and other establishments and for matters connected therewith or incidental thereto.Comments :Every employee who has completed his 4 years and 240 days uninterrupted continuous service is eligible to get benefits under this Act. While calculating the refund to the employee the basic pay is to be divided by 26 days and the employee gets 15 days of basic pay for every completed year.Applicability of Acts
Applicability of ActsThe Industrial Disputes Act
Scope :An Act to make provisions for the investigation and settlement of industrial disputes and for certain other purpose
The act describes the meaning, legality and rules regarding Strike, Lock-out, Lay-off and Retrenchment. It also describes the procedure of making complaints to the competent authority and the settlement thereof.
Applicability of ActsThe Employees State Insurance Act
Applicability :Every factory & establishment(for employees drawing wages less than Rs. 15000/-)
Scope :An Act to provide for certain benefits to employees in case of sickness, maternity and employment injury and to make provision for certain other matters in relation thereto.
Comments :This act covers all rules and regulations related to employee safety & health issues.
The Factories Act
Returns / RegistersForm No.When to complyApproval of PlansIBefore situationg a factory or construction or extension of itCertificate of Stability1-AOnce every 5 yearsApplication for Registration2After commencement of FactoryGrant and renewal of License3Starting and renewal on or before 31st Oct., every yearNotice of Change of Manager5As and when Factory Manager changesRecord of white washing, varnishing, painting, etc. & repainting, re-varnishing8To be maintained alwaysRegister of workers attending to machinery10To be maintained alwaysReport of examination of lifting machinery / ropes / tackles by competent person12Certificate to be obtained annuallyExamination of pressure plant by competent person Externally Internally Hydraulic Test13Every Six MonthsOnce in Twelve monthsOnce in four yearsRegister of Compensatory Holidays14To be maintained always
The Factories Act ( contd.. )
Returns / RegistersForm No.When to complyNotice of period of work for adults16To display and maintainRegister of adult workers17To be maintained alwaysLeave with wages register20To be maintained alwaysLeave Book21To be maintained alwaysReport of accident by the Manager24To be submitted to Factory Inspection office as and when accident takes placeNotice of Dangerous Occurrence24AWithin 12 hours of taking place of such accidentAbstract under the Act26To be displayed alwaysAnnual Return27To be submitted to Factory Inspection office on or before 1st Feb. every yearMuster Roll29To be maintained if Form 17 & 19 are not maintainedRegister of accidents & dangerous occurrences30To be maintained alwaysInspection Book31To be maintained alwaysNotification of Paid HolidaysTo display and to submit to Factory Inspection Office every year in January
The Contract Labour (Regulation & Abolition) Act
Returns / RegistersForm No.When to complyApplication for registration of establishmentsIEvery year