HR List labour compliance

8/7/2019 HR List labour compliance

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A BRIEF CHECK LIST OF

LABOUR LAWS

APPRENTICES ACT, 1961


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CHECKLIST

CONTRACT LABOUR(REGULARATION & ABOLITION) ACT,1970& THE RULES

Object of the ActPromotion of new manpower at

skills. Improvement/refinement ofold skills through theoretical andpractical training in number of

trades and occupation

IndustryIndustry means any industry, orbusiness or in which any trade,occupation or subject/field in

engineering or technology or anyvocational course may be specified

as a designated trade

Contract of ApprenticeshipTo contain such terms and

conditions as may be agreedto by the apprentice, or his

guardian (in case he is a

Termination ofApprenticeship

On the expiry of the period ofApprenticeship training.

On the application by either ofthe parties to the contract tothe Apprenticeship Advisor

Sec. 6

Payment to Apprentices

The employer to pay such stipend ata rate of not less than the prescribedminimum rate as may be specified.

Sec. 6

Obligations of Apprentice

To learn his trade conscientiously, diligently.

To attend practical and instructional classes regularly.

To carry out all lawful orders.

To carry out his contractual obligations.Health safety & Welfare measures for Apprentices

As per Factories Act or Mines Act as the case may be

when undergoing training.Hours of work

42 to 48 in a week while on theoretical training.

42 in a week while on basic training.

42 to 45 in a week in second year of training.

As per other workers (in the third year).

Not allowed to work between 10 PM to 4 AM unlessapproved by Apprenticeship Advisor.

Leave and Holidays

Casual leave for the maximum period of 12 days in a year.

Medical leave for the maximum period of 15 days and theaccumulated leave upto 40 days in a year.

Extraordinary leave upto a maximum period of 10 days ina year.

Applicability of theAct

Areas and industries asnotified by the Central

GovernmentSec. 1

ApprenticeshipAdvisor

Central ApprenticeshipAdvisor when

appointed by Central

Qualification for being trained as an ApprenticeA person cannot be an apprentice in any designatedtrade unless

He is not more than 14 years of age;

He satisfies such standard of educationAnd physical fitness asMay be prescribed. Sec. 3

Conditions for Novation ofContract of Apprenticeship

There exists an apprenticeshipcontract.

The employer is unable to fulfilhis obligation.

The approval of theApprenticeship Advisor isobtained.

Agreement must beregistered with theA renticeshi

Period ofApprentic

eshipTraining to beDetermined by

Obligations ofemployers

To Provide theapprentice withthe training inhis trade.

To ensure thata person dulyqualified isplaced incharge of the

training of theapprentice.

To carry outcontractualobli ations.

Number of Apprentices inDesignated Trade

To be determined by TheCentral Government after

consulting the CentralApprenticeship Council

Employers liability topay compensation

for injuryAs per provisions of

Workmens

Offences & PunishmentImprisonment of a term

upto 6 months or withfine when employer (I)

engages as anapprentice a person

who is not qualified forbeing so engaged or(ii) fails to carry out

the terms andconditions of a

contract ofapprenticeship, or (iii)

contravenes theprovisions of the Act


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Licensing of ContractorEngaging 20 or more than

20 workers and ondeposit of required feein Form IV.

Valid for specifiedperiod.Sec.12, Rule 21

CHECKLIST

EMPLOYEES PROVIDENT FUNDS & MISC.PROVISIONS ACT,

ApplicabilityEvery establishment in which 20 or

more workmen are employed orwere employed on any day of thepreceding 12 months as contractlabour.

Every contractor who employs or whoemployed on any day of the

preceding twelve months 20 ormore workmen.

Sec. 1

Object of the ActTo regulate theemployment of

contract labour incertain establishmentsand to provide for its

abolition in certaincircumstances and formatters connected

therewith.

Prohibition of Employment ofContract Labour

Only by the appropriate Governmentthrough issue of notification afterconsultation with the Board (and notCourts) can order the prohibition ofemployment of contract labour.

Sec. 10

Registers of ContractorsPrincipal employerTo maintain a register of contractor inrespect of every establishment inForm XII.Contractor

Rule 74To maintain register of workers foreach registered establishment in FormXIII.To issue an employment card to eachworker in Form XIV.To issue service certificate to everyworkman on his termination in FormXV. Rules 75, 76 and 77

Muster Roll, Wages Register, Deduction Register and Overtime Registerby Contractor

Every contractor shall

Maintain Muster Roll and a Register of Wages in Form XVI and Form XVIIrespectively when combined.

Register or wage-cum-Muster Roll in Form XVII where the wage period is afortnight or less.

Maintain a Register of Deductions for damage or loss, Register or Fines andRegister of Avances in Form XX , from XXI and Form XX II respectively.

Maintain a Register of Overtime in Form XXIII.To issue wage slips in Form XIX, to the workmen at least a day prior to the

disbursement of wages.Obtain the signature or thumb impression of the worker concerned against the

entries relating to him on the Register of wages or Muster Roll-Cum-WagesRegister.

When covered by Payment of Wages Act, register and records to be maintainedunder the rules

Muster Roll, Register of wages, Register of Deductions, Register of Overtime,Register of Fines, Register of Advances, Wage slip.

Rule 79To display an abstract of the act and Rules in English and Hindi and in the

language spoken by the Majority of workers in such forms as may be approvedby appropriate authority

Rule 80To display notices showing rates of wages, hours of work, wage period, dates of

payment, names and addresses of the inspector and to send copy to theinspector and any change forwithwith

Rule 81

Registration ofEstablishment

Principal employeremploying 20 or moreworkers through thecontractor or thecontractor(s) on deposit ofrequired fee in Form 1

Sec. 7

Revocation ofRegistration

When obtained byMisrepresentation orsuppressionOf material facts etc. afteropportunity to theprincipalemployer

Sec. 9

Revocation or Suspension &

Amendment of LicencesWhen obtained by misrepresentation or

suppression of material facts.Failure of the contractor to comply with

the conditions or contravention of Actor the Rules. Sec.14

Welfare measures to be taken by the Contractor

Contract labour either one hundred or more employed by acontractor for one or more canteens shall be provided andmaintained.

First Aid facilities.Number of rest-rooms as required under the Act.Drinking water, latrines and washing facilities.Sec. 16 & 17

Laws, Agreement or standingorders inconsistent with the

Act-Not PermissibleUnless the privileges in the contractbetween the parties or morefavourable than the prescribed in the

Act, such contract will be invalid andthe workers will continue to get morefavourable benefits.

Sec. 20

Liability of Principal EmployerTo ensure provision for canteen, restrooms, sufficient supply of

drinking water, latrines and urinals, washing facilities.Principal employer entitled to recover from the contractor for

providing such amenities or to make deductions from amountpayable. Sec. 20

PENALTIES

Sec. Offence PunishmentSec. 22 Obstructions For obstructing the inspector or failing to produce registers etc.

- 3 months imprisonment or fine upto Rs.500, or both.Sec.23 Violation For violation of the provisions of Act or the Rules,imprisonment of 3

Months or fine upto Rs.1000. On continuing contravention,


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1952 & THE SCHEMESCHECKLIST

EMPLOYEES STATE INSURANCEACT, 1948 & the SCHEME

Applicability Every establishment which is factory engaged in any industry

specified in Schedule 1 and in which 20 or more persons areemployed.

Any other establishment employing 20 or more persons which

Central Government may, by notification, specify in this behalf. Any establishment employing even less than 20 persons can be

EligibilityAny person who is employedfor work of an establishment

or employed throughcontractor in or in connection

with the work of an

Clarification aboutContribution

After revision in wage ceiling fromRs.5000 toRs.6500w.e.f. 1.6.2001per month, the government will

continue to contribute1.16% uptothe actual wage of maximumRs.6500 per month towardsEmployees Pension Scheme. Theemployers share in the PensionScheme will be Rs.541 w.e.f.1.6.2001.Under Employees Deposit-LinkedInsurance Scheme the contribution@ 0.50% is required to be paidupto a maximum limit of Rs.6500.The employer also will payadministrative charges @0.01%on maximum limit of Rs.6500

whereas an exem ptedestablishment will pay inspectioncharges @ 0.005% on the totalwages paid.Notes:The above clarification is given bytaking wages upto a maximum ofRs.6500 towards wage (basic+DA).Since an excluded employee i.e.drawing wages more than Rs.650can also become member of tFund and the Schemes on joirequest and if, for instance, sucan employee is getting Rs.10,00

per month, his share towarprovident fund contribution will b

BenefitsEmployees covered enjoy a benefit of Social Security in the form ofan unattachable and unwithdrawable (except in severely restrictedcircumstances like buying house, marriage/education, etc.) financialnest egg to which employees and employers contribute equallythroughout the covered persons employment.This sum is payable normally on retirement or death. Other Benefitsinclude Employees Pension Scheme and Employees Deposit Linked

Payment of Contribution

The employer shall pay thecontribution payable to theEPF, DLI and EmployeesPension Fund in respect of themember of the EmployeesPension Fund employed by himdirectly by or through acontractor.

It shall be the responsibilitythe principal employer to pa

the contributions payable tthe EPF, DLI and Em ployeePension Fund by himself irespect of the employeedirectly employed by him analso in respect of themployees directly employeby him and also in respect

SCHEM E EM PLOYEES E MPLOYERS CEN TRALGOVTS

Provident FundScheme

12%

Amount > 8.33%(in casewherecontribution is 12% of10%)

10% (in case ofcertainEstablishments

as per detailsgiven earlier)

NIL

InsuranceScheme

NIL 0.5 NIL

Damages

Less than 2 months .@ 17% per

annum

Two months and above but less than upto four months

.@22% per annum

Penal ProvisionLiable to be arrested without warrant being a cognisable offence.

Defaults by employer in paying contributions or

inspection/administrative charges attract imprisonment upto 3 years

and fines upto Rs.10,000 (S.14). For any retrospective application, all

dues have to be paid by employer with damages upto 100% of


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OFFENCE PENALTIESSec.92 to

For contravention of the Provisions of the Act orRules

Imprisonment upto 2 years or fine upto Rs.1,00,000 orboth

On Continuation of contravention Rs.1000 per day

On contravention of Chapter IV pertaining to safetyor dangerous operations.

Not less than Rs.25000 in case of death.

Not less than Rs.5000 in case of serious injuries.

Subsequent contravention of some provisions Imprisonment upto 3 years or fine not less thanRs.10,000 which may extend to Rs.2,00,000.

Obstructing Inspectors Imprisonment upto 6 months or fine upto Rs.10,000or both.

Wrongful disclosing result pertaining to results ofanalysis.

Imprisonment upto 6 months or fine upto Rs.10,000or both.

For contravention of the provisions of Sec.41B, 41Cand 41H pertaining to compulsory disclosure ofinformation by occupier, specific responsibility ofoccupier or right of workers to work imminentdanger.

Imprisonment upto 7 years with fine uptoRs.2,00,000 and on continuation fine @ Rs.5,000per day.

Imprisonment of 10 years when contraventioncontinues for one year.

EMPLOYMENT EXCHANGES(COMPULSORY NOTIFICATION OF VACANCIES)

ACT, 1959 & THE RULESCHECK LIST

Safety Measures

Facing of machinery

Work on near machinery in motion.

Employment prohibition of youngpersons on dangerous machines.

Striking gear and devices for cutting offpower.

Welfare Measures

Washing facilities

Facilities for storing anddrying clothing

Facilities for sitting

First-aid appliances one firstaid box not less than one forevery 150 workers.

Canteens when there are 250or more workers.

Shelters, rest rooms and lunchrooms when there are 150 or

more workers. Creches when there are 30 or

more women workers.

Welfare office when there are500 or more workers.

Self-acting machines. Casing of new machinery.

Prohibition of employment ofwomen and children near

cotton-openers.

Hoists and lifts.

Working Hours, Spread Over & Overtime of AdultsWeekly hours not more than 48.Daily hours, not more than 9 hours.Intervals for rest at least hour on working for 5 hours.

Spreadover not more than 10 hours.Overlapping shifts prohibited.Extra wages for overtime double than normal rate of wages.Restrictions on employment of women before 6AM and beyond 7PM.

Employment of Young Persons

Prohibition of employment of young children e.g. 14 years.

Non-adult workers to carry tokens e.g. certificate of fitnekss.

Working hours for children not more than 4 hrs. and notpermitted to work during night shift.

Secs. 51, 54 to 56, 59 & 60

Annual Leave with Wages

A worker having worked for 240days @ one day for every 20 daysand for a child one day for workingof 15 days.Accumulation of leave for 30 days.


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INDUSTRIAL DISPUTES ACT, 1947

Object of the ActProvisions for investigation and settlement of industrial disputes and for certain other purposes.

Object of the Act

To provide for thecompulsory

notification ofvacancies toemploymentexchanges.

Applicability of theAct

By notification in theOfficial Gazette, appointin this behalf for suchState and different dates

may be appointed fordifferent states or fordifferent areas of a State.

When Act is not applicableAny employment in agriculture,

horticulture etc.Any employment in domestic

service.Any employment, the total duration

of which is less than threemonths.

Any employment to do unskilledoffice work.

Any employment connected withthe staff of Parliament.

Sec. 3

Notification of vacancies to Employment Exchanges

Before filling up any vacancy as prescribed.Employer not obliged to recruit the person through

employment exchange.To notify the vacancies to such employment exchanges asmay be prescribed.

Secs. 4

Time limit for notification of vacancies & selection

Atleast 15 days before the applicants will be interviewed ortested.

Employer to furnish the result of selection within 15 days.Rules

5

Submission of ReturnsQuarterly in Form ER-IBIENNIAL Return Form ER-IIWithin 30 days by 30th June, 31st

March, 30th

September & 31st

December.

Rule 6

Furnishing information andreturns

The employer in everyestablishment in public sector inthat State or area shall furnish

such information or return as may

be prescribed in relation tovacancies that have occurred orare about to occur in that

establishment, to suchemployment exchanges as may

be prescribed.Secs. 5

An employer contravening the provisions of Sec.4(1) or (2).Fine upto Rs.500 for first offence and for every subsequent offence fine Rs.1000.If any person Required to furnish any information or return

Refuses or neglects to furnish such information or return, or

Furnishes or causes to be furnished any information or return which he knows to be false, orRefuses to answer, or gives a false answer to any question necessary for obtaining any informationrequired to be furnished under section 5; or

Impedes the right of access to relevant records or documents or the right of entry conferred by section 6;he shall be punishable for the first offence with fine upto Rs.250 and for every subsequent offence withfine upto Rs.250 and for every subsequent offence with fine upto Rs.500.

Rules 7

PENALTIES

Important ClarificationsIndustry has attained wider meaning than defined

except for domestic employment, covers

from barber shops to big steel companies.Sec.2(I)Works CommitteeJoint Committee with equalnumber of employers and employeesrepresentatives for discussion of certain comm onproblems. Sec.3Conciliationis an attempt by a third party inhelping to settle the disputes Sec.4Adjudication Labour Court, Industrial Tribunal orNational Tribunal to hear and decide the disput

Power of Labour Court to give

Appropriate ReliefLabour Court/Industrial Tribunal canModify the punishment of dismissal ordischarge of workmen and giveappropriate relief including

Right of a Workman duringPendency of Proceedings

in High CourtEmployer to pay last drawn wagesto reinstated workman whenproceedings challenging theaward of his reinstatement are


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INDUSTRIAL EMPLOYMENT(STANDING ORDERS) ACT, 1946 & THE RULES

CHECK-LIST

Prohibition of Strikes & Lock Outs

During the pendency of proceedings before a LabourCourt, Tribunal or National

Tribunal and two months, after the conclusion of suchproceedings.

During the pendency of arbitration proceedings before anarbitrator and two months after the conclusion of suchproceedings, where a notification has been issued under

Sub-Section(3A) of section 10ADuring any period in which a settlem ent or award is in

operation, in respect of any of the matters covered by thesettlement or award. Secs.22&23

Persons Bound bySettlement

When in the course of conciliationproceedings etc., all personsworking or joining subsequently.

Otherwise than in course ofsettlement upon the parties to the

Period of Operation ofSettlements and

Awards

A settlement for a period asagreed by the parties, or

Period of six months onsigning of settlement.

An award for one year after

Lay off & Payment of Compensation Conditions for Laying off

Failure, refusal or inability of an employer toprovide work due to

Shortage of coal, power or raw material.

Accumulation of stocks.

Breakdown of machinery.

Natural calamity. Sec.25-C

Notice of Change21 days by an employer to workmen

about changing the conditions ofservice as provided in Ivth Schedule.

Sec.9A

Without giving to the employer notice of strike, ashereinafter provided, within six weeks before striking.

Within fourteen days of giving such notice.

Before the expiry of the date of strike specified in anysuch notice as aforesaid.

During the pendency of any conciliation proceedingsbefore a conciliation officer and seven days after the

conclusion of such proceedings. During the pendency of conciliation proceedings

before a Board and seven days after the conclusionof such proceedings.

Lay off CompensationPayment of wages except forintervening weekly holidaycompensation 50% of total orbasic wages and DA for aperiod of lay off uptomaximum 45 days in a year.

Prior Permission for Lay offWhen there are more than 100workmen during proceeding 12months. Sec.25-M

Retrenchment of Workmen Compensation & ConditionsWorkman must have worked for 240 days.

Retrenchment compensation @ 15 days wages for every completed year to be calculated at lastdrawn wages

One months notice or wages in lieu thereof.

Reasons for retrenchment

Complying with principle of last come first go.

Prior Permission by theGovernment forRetrenchment

When there are more than 100(in UP 300 or more) workmenduring preceding 12 months.

Three months notice or wagesthereto.

Form QA

Com ensation 15 da s

Conditions of service etc. to remain unchanged under certain circumstances during pendency ofproceedings

Not to alter to the prejudice of workmen concerned the condition of service.

To seek Express permission of the concerned authority by paying one months wag es odismissal, discharge or punish a protected workman conn ected with the dispute.

To seek approval of the authority by paying one m onths w ages before altering condition o

Conditions of service etc. to remain unchanged under certain circumstances during pendency ofproceedings

Not to alter to the prejudice of workmen concerned the condition of service.

To seek Express permission of the concerned authority by paying one months wages on dismissaldischarge or punish a protected workman connected with the dispute.

To seek approval of the authority by paying one months wages before altering condition of service, dis

Prohibition of unfair labourpractice either by

employer or workmanor a trade union asstipulated in fifth

scheduleBoth the em lo er and the Union

Closure of an Undertaking60 days notice to the labourauthorities for intended closure in FormQA . Sec.25FFAPrior permission atleast 90 days beforein Form O by the Government whenthere are 100 ore more workmenduring preceding 12 months (in UP 300or more workmen)Sec.25-O

PENALTIES

Offence Comm itting unfair labour practicesIllegal strike and lock-ourts

Instigation etc. for illegal strike or lock-outs.Giving financial aid to illegal strikes and lock-outs.

Breach of settlement or awardDisclosing confidential information pertaining to Sec.21

Closure without 60 days notice under S ec.25 FFAContravention of Sec.33 pertaining to change of conditions of

Service during pendency of dispute etc.When n o penally is provided for contravention


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MATERNITYBENEFIT ACT, 1961

CHECK LIST

Object of the ActTo protect the dignityof motherhood andthe dignity of a new

persons birth byproviding for the full

and healthymaintenance of the

woman and her childat this important time

when she is notworking.

Coverage of the ActUpon all women em ployees either employeddirectly or through contractor exceptdomestic women employees employed inmines, factories, plantations and also in

other establishments if the StateGovernm ent so decides. Therefore, if theState Government decides to apply this Actto women employees in shops andcommercial establishments, they also willget the benefit of this Act. Bihar, PunjabHaryana, West Bengal, U.P., Orissa andAndhra have done so.

Conditions for eligibilityof benefits

Women indulging temporaryof unmarried are eligible for

maternity benefit when sheis expecting a child and hasworked for her employer forat least 80 days in the 12months immediatelyproceeding the date of herexpected deliverySec. 5.

Conditions forCertification of

Standing OrdersEvery matter to be

set out as perSchedule and Rule2A.

The standing ordersto be inconformity withthe provisions ofthe Act.

Submissions ofDraft Standing

Orders

Within six monthsfrom the date whenthe Act becomesapplicable to anindustrialestablishment. Fivecopies of the draftStanding Orders areto be submitted tothe CertifyingOfficer under theAct.

Sec.3

Failure of employer to submit draft Standing Orders fine of Rs.5000 and Rs.200 for every day oncontinuation of offence.

Fine of Rs.100 on contravention and on continuation of offence Rs.25 for every day.

Procedure forCertification of

Standing OrdersCertifying Officer toforward a copy of draftstanding orders to thetrade union or in theabsence of union, to theworkmen of the industry.The trade union or the

other representatives, asthe case may be, are tobe heard.

Sec.5

Date ofOperation of

StandingOrders

On the date ofexpiry of 30 daysfrom certificationor on the expiryof 7 days from

authentication ofStanding Orders.

Sec. 7

Posting of StandingOrders

The text of thestanding orders asfinally certified shallprominently be postedin English or in thelanguage understoodby majority of workmenon special board at ornear the entrance formajority of workers.

Sec. 9

Temporaryapplication of Model

Standing OrdersTemporary applicationof mod standing ordersshall be deemed to be

adopted till thestanding orders as

submitted are certified.Sec.12-A

Payment of Subsistence Allowance to theSuspended Workers

At the rate of fifty per cent, of the wages which theworkman was entitled to immediately proceeding thedate of such suspension, for the first ninety days ofsuspension.At the rate of seventy-five percent of such wages forthe remaining period of suspension if the delay in thecompletion of disciplinary proceedings against suchworkman is not directly attributable to the conductsuch workman.Sec.10-A

PENALTIES


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MINIMUM WAGES ACT, 1948

CHECK LIST

Cash BenefitsLeave with average pay for six weeks before the delivery.Leave with average pay for six weeks after the delivery.A medical bonus of Rs.25 if the employer does not provide free medical care to the

woman.An additional leave with pay up to one month if the woman shows proof of illness due to

the pregnancy, delivery, miscarriage, or premature birth.In case of miscarriage, six weeks leave with average pay from the date of miscarriage.

Non Cash Benefits/PrivilegeLight work for ten weeks (six weeks plus one month) before the date of her expected

delivery, if she asks for it.Two nursing breaks in the course of her daily work until the child is 15 months old.No discharge or dismissal while she is on maternity leave.No change to her disadvantage in any of the conditions of her employment while on

maternity leave.Pregnant women discharged or dismissed may still claim maternity benefit from the

employer.Exception: Women dismissed for gross misconduct lose their right under the Act forMaternity Benefit

Conditions for eligibility ofbenefits

Ten weeks before the date ofher expected delivery, shemay ask the employer to

give her light work for amonth. At that time sheshould produce a certificatethat she is pregnant.

She should give written noticeto the employer about sevenweeks before the date of herdelivery that she will beabsent for six weeks beforeand after her delivery. Sheshould also name the personto whom payment will bemade in case she can nottake it herself.

She should take the paymentfor the first six weeks before

she goes on leave.She will get payment for the sixweeks after child-birth within48 hours of giving proof thatshe has had a child.

She will be entitled to twonursing breaks of fifteenminutes each in the courseof her daily work till her childis fifteen months old.

Her employer cannot dischargeher or change her conditionsof service while she is onmaternity leave.

Sec. 5.

Leave for Miscarriage& Tubectomy Operation

Leave with wages at the rate ofmaternity benefit, for a period ofsix weeks immediately followingthe day of her miscarriage or hermedical termination of pregnancy.

Entitled to leave with wages at therate of maternity benefit for aperiod of two weeks immediatelyfollowing the day of her tubectomyoperation.

Leave for illness arising out ofpregnancy etc. etc.

A woman suffering from illnessarising our of pregnancy, delivery,premature birth of child(Miscarriage, medical terminationof pregnancy or tubectomyoperation) be entitled, in additionto the period of absence allowedto her leave with wages at therate of maternity benefit for amaximum period of one month.

Sec. 10

Prohibition of dismissal during absence of pregnancyDischarge or dismissal of a woman employed during or on account of such absence or to give notice or discharge or dismissal on such

that the notice will expire during such absence or to very her disadvantage.Discharge or dismissal during or on account of such absence or to give notice of discharge or dismissal on such a day that the notic

expire during such absence, or to vary to her disadvantage any of the conditions of her service.At the time during her pregnancy, if the woman but for such discharge or dismissal would have been entitled to maternity benefit or m

bonus, etc.Not barred in case of dismissal for cross misconduct. Sec.

Failure to DisplayExtract of Act

Imprisonment mayextend to one yearor fine.

Forfeiture of maternity benefitIf permitted by her employer to absent herself under the provisions of section 6 forany period during such authorized absence, she shall forfeit her claim to thematernity benefit for such period.For discharging or dismissing such a woman during or on account of her absencefrom work, the employer shall be punishable with imprisonment which shall not be

less than 3 months, but it will extend to one year and will find, but not exceedingRs.5,000. Sec. 18

Object of the ActTo provide for fixingminimum rates ofwages in certain

Fixation of Minimum Rates of Wages

The appropriate government to fix minimum rates of wages. Theemployees employed in para 1 or B of Schedule either at 2 or either part ofnotification u/s 27.

To make review at such intervals not exceeding five years the minimumrates or so fixed and revised the minimum rates.

Government can also fix Minimum Wages for

Time work Piece work at piece rate Piece work for the purpose of

securing to such employees on a time work basis Overtime work done by

Minimum Rates of

WagesSuch as Basic rates ofwages etc. Variable DAand Value of otherconcessions etc. Sec. 4 Procedure for fixing

and revising MinimumRates of Wages

Appointing Committeeissue of Notification etc.

Composition ofCommittee

Representation of

employer andemployee in scheduleemployer in equanumber andindependent personsnot exceeding 1/3rd orits total number onesuch person to beappointed by the

Payment ofMinimumRates of

WagesEmployer to pay toevery employeeengated in scheduleemployment at a ratenot less than minimumrates of wages as fixedby Notification by notmaking deductionother than prescribed.


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PENALITIES Offence Punishment

Sec. 20

For paying less than minimumrates of wages

Imprisonment upto 6 monthsor with fine upto Rs.500/-

For contravention of anyprovisions pertaining to fixinghours for normal working day etc.

Imprisonment upto 6 monthsor with fine upto Rs.500/-

SALES PROMOTION EMPLOYEES

(CONDITIONSOF SERVICE) ACT, 1976 & THE RULES

CHECKLIST

Fixing Hours forNormal Working

Shall constitute anormal working dayinclusive of one ormore specifiedintervals.

To provide for a dayof rest in everyperiod of seven dayswith remuneration.

To provide forpayment for work ona day of rest at a ratenot less than theovertime rate.. Sec.

OvertimeTo be fixed by the hour, bythe day or by such a longerwage-period works on any

day in excess of the numberof hours constituting normalworking day.Payment for every hour or fopart of an hour so worked iexcess at the overtime ratdouble of the ordinary rate o(1 times or for agriculturlabour) Sec.5

Wages of workers who works for less thannormal working days

Save as otherwise hereinafter provided, beentitled to receive wages in respect of work doneby him on that day as if he had worked for a fullnormal working day.

Sec.15

Wages for two class of workWhere an employee does two or moclasses of work to each of which

different minimum rate of wagesapplicable, wages at not less than tminimum rate in respect of each suclass. Sec. 16

Maintenance of registers and records

Register ofFines Form I Rule 21(4)

AnnualReturns Form III Rule 21 (4-A)

Register forOvertime Form IV Rule 25 Register ofWagesForm X,Wages slipForm XI,Muster RollForm V

Rule 26

Minimum time rate wages for piece

workNot less than minimum rates wages

Claims by employees

To be filed by before authority constituted under the Act within 6months.

Object of the ActTo regulate certain conditions of service of sales promotion employees in certain establishments.

Applicability of the Act

Whole of India with effectfrom 6.3.1976Applicability of otherActs

WorkmensCompensation Act, 1923

Industrial Disputes Act,1947

Minimum Wages Act,1948

Maternity Benefit Act,

Leave

Earned leave and cashcompensation on earned leave not

availed of.

On full wages for not less than 1/11th

of the period spent on duty.

Leave on medical Certificate

On one-half of the waves for notless than 1/18th of the period ofservice.

Cashable on voluntary

Maximum limit uptowhich earned leave

Can be accumulated 180days of which theemployee can availhimself 90 days at a time.

Encashment of leave 120days.

Sec.14


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TRADE UNIONS ACT, 1926CHECKLIST

Maintenance of register

A register of salespromotion employees inForm B.

Service Books for everyemployee in Form C

A register of servicebooks in Form D

Leave account of eachemployee in Form E.

Wages for weekly day ofrestEntitled to wages on weekly

days of rest as if hewas on duty.

Rule 7

Affixing of holidays toleave

Premixing or suffixing ofany leave not

Quarantine leaveUpto 30 days on the

recommendations ofauthorised medicalattendant or Public

Health Officer.

Issue of AppointmentLetter in Form A

Within three monthsfrom the commencementof the Act and in other

case on appointment.Sec.5 Rule 22

Number of holidays in a year

10 in calendar year

Rule 4

Compensatory holidaysWithin 30 days of the day when hewas required to work.

Application for leaveWhen other than casual leave, not lessthan one month beforecommencement of leave except forurgent or unforeseen circumstances.

Rule 9

Holidays intervening during theperiod of leave

Except casual leave grantged or day ofweekly rest, other holidays shallbe part of leave.

Rule 12

Extraordinary leave

At the discretion of the employerRule 17

PENALTYOn contravention of provisions relating to Leave Issue of Appointment Letteror Maintenance of Registers fine upto Rs.1000

Wages for holidaysTo be entitled for wages onall holidays as if he was onduty.

Recording of reason forrefusal or

postponement ofleave.

Medical leave

On production of medicalcertificate.

Rule 15

Casual leave

15 days in a calendar year.Rule 15

Object of the ActTo provide for the registration of Trade Union and in certain respects

to define the law relating to registered Trade Unions

Registration of trade Union

Any 7 or more members of a trade union may, bysubscribing their names to the rules of the trade unionand its compliance.

There should be at least 10%, or 100 of the work-men,whichever is less, engaged or employed in the

establishment or industry with which it is connected.

It has on the date of making application not less than 7persons as its members, who are workmen engaged oremployed in the establishment or industry with which itis connected.

Registration of trade Union

Prescribed form with following details.

Names, occupations and address of themembers place of work.

Address of its head office; and

Names, ages, addresses and occupations ofits office bearers.

Sec. 5


13/17

PAYMENT OF BONUS ACT, 1965 & THERULES

CHECKLIST

Minimum requirements formembership of trade

union

Not less than 10%, or 100of the workmen, whichever isless,

subject to a minimum of7,engaged or employed in anestablishments etc.Sec. 9A

Cancellation ofregistration

If the certificate has beenobtained by fraud ormistake or it has ceased toexist or has wilfullycontravened any provisionof this Act.

If it ceases to have therequisite number ofmembers.

Sec. 10

Criminal conspiracy in tradedisputes

No office bearer or member of aregistered trade union shall be liable to

punishment under sub section (2) ofconspiracy u/s 120B of IPC in respect ofany agreement made between themembers for the purpose of furtheringany such object of the Trade Union.

Sec. 17

Disqualification of office bearersof Trade Union

If one has not attained the age of18 years.Conviction for an offence involving moralturpitude.

Not applicable when 5 years have elapsed.Sec. 21-A

Returns

Annually to the Registrar, on or before such date as maybe prescribed, a general statement, audited in theprescribed manner, of all receipts and expenditure ofevery registered Trade Union during the year ending on

the 31st December.Sec. 28

Penalties Offence Punishment

U/s 31

For making false entry in orany omission in generalstatement required forsending returns.

For making false entry in theform.

Fine upto Rs.500. Oncontinuing default, additionalfault, Rs.5 for each week (notexceeding Rs.50).

Fine upto Rs.500.

U/s 32 Supplying false information

regarding Trade Union Fine upto Rs.200.

Applicability of Act

Every factory where in 10 or more persons areemployed with the aid of power or

An establishment in which 20 or more persons areemployed without the aid of power on any day duringan accounting year

Establishment

Establishment includesDepartments,

undertakings and

Separate establishment

If profit and loss accountsare prepared andmaintained in respect ofany such department orundertaking or branch,

then such department orundertaking or branch istreated as a separateestablishment.

Computation of available surplus

Income tax and direct taxes aspayable.Depreciation as per section 32 of

Income Tax Act.Development rebate, investment ordevelopment allowance.Sec.5

Components ofBonus

Salary or wagesincludes dearness

allowance but no otherallowances e.g. over-time, house rent,incentive or


14/17

PENALTYFor contravention of any provision of the Act or

the RuleUpto 6 months or with fine upto Rs.1000.

Sec.28

PAYMENT OF

GRATUITYACT, 1972 & THE RULES

CHECKLIST

CalculationSeasonalemployee

@ 7 dayswages for

everycompleted

year ofservice.

Computation of grossprofit

For banking company, asper First Schedule.

Others, as perSecond Schedule

Sec.4

Eligible Employees

Employees drawing wagesupto Rs.3500 per month or

less.For calculation

purposes Rs.2500per monthmaximum will betaken even if anemployee isdrawing uptoRs.3500 per month.

Sec.12Note: The proposal toenhance the existingceiling of Rs.3500 is under

Disqualification & Deduction of Bonus

On dismissal of an employee for

Fraud; or

riotous or violent behaviour while on the premises of the

establishment; or

theft, misappropriation or sabotage of any property of the

establishment or

Misconduct of causing financial loss to the Employer to theextent that bonus can be deducted for that year.

Secs. 9 & 18.

Eligibility of Bonus

An employee will be entitledonly when he has worked

for 30 working days in thatyear.

Payment of Minimum Bonus

8.33% of the salary orRs.100 (on completion of 5years after 1st Accounting yeareven if there is no profit)

Sec.10

Time Limit forPayment of BonusWithin 8 months from theclose of accounting y ear.

Set-off andSet-onAs per Schedule IV.

Sec. 15

Maintenance of Registers and Records etc.

A register showing the computation of the allocable surplus referred to in clause (4) of section 2, inform A.

A register showing the set-on and set-offof the allocable surplus, under section 15, in form B

A register showing the details ofthe amount of bonus due to each of the employees, thedeductions under section 17 and 18 and the amount actually disbursed, in form C.

Act not applicable to certain employees of LIC, General Insurance, Dock Yards, Red Cross, Universities& Educational Institutions, Chambers of Commerce, Social Welfare Institutions, Building Contractors,

Sec.1

Applicability

Every factory,mine, oil field,

plantation, port,railways,

company, shop,establishment or

educationalinstitutions

employing 10 ormore employees

Sec.2(s)

Wages forCalculation

@ 15 dayswages for everycompleted yearas if the monthcomprises of 26days at the lastdrawn wages.

Sec.1

CalculationPiece-rated

employee

@ 15 dayswages for

everycompletedyear on an

average of 3monthswages

Qualifyingperiod

On rendering of5 years service,

eithertermination,

resignation orretirement.

Sec.2(e)Employee

All employeesirrespective of

status or

salary

EntitlementOn completionof five years

service exceptin case ofdeath or

disablement

Rule4


15/17

PAYMENT OF WAGES ACT, 1936CHECKLIST

Display ofNotice

On conspicuousplace at the main

entrance inEnglish languageor the language

understood bymajority of

employees of thefactory, etc.

Sec.6Rule 6

Nomination

To be obtainedby employer

after expiry of

one yearsservice, inForm F

Sec.4(3)

MaximumCeiling

Rs.3,50,000

Rule9

Mode ofpayment

Cash or, if sodesired, by

Bank Draft orCheque

Rule9

Penalties

Imprisonment for6 months or fineupto Rs.10,000for avoiding tomake paymentby making falsestate-ment orrepresenta -tion.

Imprisonment notless than 3months and uptoone year withfine on default incomply-ing withthe provisions ofAct or Rules.

Sec.8Rule 8

Recovery ofGratuity

To apply within30 days in

Form I whennot paid within

30 days

Sec.4(6)

Forfeiture of Gratuity

On termination of anemployee for moralturpitude or riotous ordisorderly behaviour.

Wholly or partially forwilfully causing loss,

destruction of propertyetc.

Sec.13

Protection ofGratuity

Cant beattached in

execution ofany decree

Applicability of Act

Factory industrialEstablishment

Tramway service or motortransport service engaged in

carrying passengers or goodor both by road for hire or

reward. Air transportservice Dock, Wharf or Jetty

Inland vessel, mechanicallypropelled

Mine, quarry or oil-fieldPlantation

Coverage of EmployeesDrawing average wage uptoRs.6500 pm as amended w.e.f.6.9.05.

Fines as prescribed by

Not to imposed unless theemployer is given anopportunity to show causeTo record in the register

Sec.8

Deductions for servicerendered

When accommodation amenityor service has been acceptedby the employee.

Sec.11

Object of the ActTo regulate the payment of wages ofcertain classes of employed persons

Wages to be paid incurrent coinsor currency

notes

All wages shall be paid

in current coins orcurrency notes or inboth.

After obtaining theauthorization, either bycheque or by creditingthe wages in employees

Time of payment of wages

The wages of every person employedbe paid.When less than 1000 persons areemployed shall be paid before theexpiry of the 7th day of the followingmonth.When more than 1000 workers, beforethe expiry of the 10th day of thefollowing month.

Deduction made from wagesDeductions such as, fine, deduction foramenities and services supplied by theemployer, advances paid, over

payment of wages, loan, granted forhouse-building or other purposes,income tax payable, in pursuance ofthe order of the Court, PFcontributions, cooperative societies,premium for Life Insurance,contribution to any fund constituted byemployer or a trade union, recovery of

Deduction forabsence from

duties forunauthorised

absence

Absence for whole orany part of the day If ten or more persons

absent withoutreasonable cause,deduction of wages upto8 days.

Sec. 9


16/17

WORKMENS COMPENSATIONACT, 1923

CHECKLIST

On contravention of S.5 (except sub-sec.4), S.7, S.8(except Ss.8), S.9, S.10 (except Ss.2) and Secs.11 to13.

Fine not less than Rs.1000 which may extend toRs.5000. On subsequent conviction fine not lessthan Rs.5000, may extend to Rs.10,000. Oncontravention S.4, S.5(4), S6, S.8(8), S.10(2) or S.25fine not less than Rs.1000. may extend toRs.5000. On subsequent On conviction fine notless.

For failing to maintain registers or records; or

Wilfully refusing or without lawful excuseneglecting to furnish information or return; or

Wilfully furnishing or causing to be furnished any

information or return which he knows to be falseor

Refusing to answer or wilfully giving a falseanswer to any question necessary for obtainingany information required to be furnished underthis Act.

Fine which shall not be less than Rs.1000 but mayextend to Rs.5000 On record conviction fine notless than Rs.5000, may extend to Rs.10,000.

For second or subsequent conviction, fine not lessthan Rs.5000 but may extend to Rs.10,000

Wilfully obstructing an Inspector in the dischargeof his duties under this Act; or

Refusing or wilfully neglecting to afford anInspector any reasonable facility for making anyentry, inspection etc.

Wilfully refusing to produce on the demand of aninspector any register or other document kept inpursuance of this Act; or preventing any person for

appearance etc.

Fine not less than Rs.1000 extendableUpto Rs.5000 On subsequent conviction finenot less than Rs.5000 may extent to Rs.10,000

On conviction for any offence and again guilty of Imprisonment not less than one month

Deduction for damage or loss

For default or negligence of anemployee resulting into loss. Showcause notice has to be given to the

Applicability

All over IndiaSec.1

Coverage of WorkmenAll workers irrespective of their

status or salaries either directly orthrough contractor or a person

recruited to work abroad. Sec.1(3)

Employers liability to paycompensation to a workmanOn death or personal injury resultinginto total or partial disablement oroccupational disease caused to a

workman arising out of and duringthe course of employment.

Amount of compensation

Where death of a workman results from the injury

An amount equal to fifty per cent of the monthly wagesof the deceased workman multiplied by the relevant factoron an amount of eighty thousand rupees, whichever is more.

Where permanent total disablement results from theinjury.

An amount equal to sixty per cent of the monthly wagesof the injured workman multiplied by the relevant factor oran amount of ninety thousand rupees, whichever is more

Procedure for calculationHigher the age Lower the compensation

Relevant factor specified in second column of Schedule IVgiving slabs depending upon the age of the concernedworkman.

Example : In case of death.

Wages Rs.3000 PM Age 23 years

Factor as schedule IV Rs.19.95

When an employee is not liablefor compensation

In respect of any injury which doesresult in the total or partialdisablement of the workman for aperiod exceeding three days.

In respect of any injury, notresulting in death or permanenttotal disablement caused by anaccident which is directlyattributable to-

The workman having been at thetime thereof under the influence ofdrink or drugs, or

Willful disobedience of theworkman to an order expresslygiven, or to a rule expresslyframed, for the purpose ofsecuring the safety of workmen, or

Willful removal or disregard by theworkman of any safety guard orother device which he knew tohave been provided for theur ose of securin the safet of


17/17

Wages

When the monthly wagesare more than Rs.4000 permonth it will be deemedRs.4000.

Notice

Accident

As soon asPracticable

Sec. 10

Report of accidentRule 11 Form EE

Report of fatal Accident and Serious Injury within 7 days tothe Commissioner (not application when ESI Act applies).

Sec.10B

Bar upon contracting out

Any workman relinquishing his rightfor personal injury not permissible.

Sec.14

PENALTY

In case of default by employer

Deposit of Compensation

50% of the compensation amount + interest to be paid to theworkman or his dependents as the case may be.

Within one month with the Compensation CommissionerSec.4A

Documents

HR List labour compliance