Foreword

I introduce this booklet on Labour Laws with immense

pleasure as it is a compilation or salient features of important
Labour Laws having a bearing on role and responsibilities of
Location In-charges in day to day working of the locations.
The essence of provisions under various statutes, which
encompass our locations, have been succinctly captured in
this concise compilation by HR group, Head Office, Indeed,
it gives us a peep into and opens the window of the ‘Legal
aspects of our work-life’.

I am confident that this collection will enlighten and show

the path forward to both the Operations as well as the HR
fraternity - towards a law compliant entity. The jargon of
the ‘Labour Laws’ world has been skillfully converted into
an easy flowing user-friendly text. Surely, this will help
in understanding of importance of Labour Laws in a
better way.

With good wishes,

(Gautam Datta)
08-03-2010 ED (HR), HO
 Booklet on Labour Laws
Employee Relations Department, Head Office

Contract Labour (Regulation & Abolition) Act, 1970

1. Applicability
(a) To every location in which 20 or more contract workmen (all
contracts put together) are employed or were employed on any day
of the preceding 12 months.
(b) To contractors engaging 20 or more contract workmen (all contracts
put together at one location by the same contractor ).
2. Appropriate Government
“Central Government ”.
Hence, the Registration Certificate by Locations and Licence by
Contractors) has to be obtained from ALC (Central) only.
3. Principal Employer
The “ Principal Employer” is the Location-In-charge.
4. Registration of the Establishment
The Location Incharge as “Principal Employer” is required to obtain a
Certificate of Registration under Section-7 of the Act from ALC (Central).
The Validity is forever.
5. Changes/Amendment In The Certificate Of Registration
(a) In case of change in the particulars of the Registration, the change has
to be intimated to the Registering officer within 30 days of such
change.
(b) When there are no changes in the particulars, there is no need to
renew the certificate of registration.
6. Licence for Contractors
(a) The Contractor who engages 20 or more workmen is required to obtain
Licence from ALC (Central) to work as Contractor for the jobs, which
has been given in the application (check with work order).
(b) Location Incharge is required to issue a certificate in Form number V to
the Contractor to submit the same to ALC (C) along with other
documents/fee/Security deposit immediately on commencement of
contract..
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 (c) The validity of Licence is one year from date of issue and has to be
renewed by the contractor every year within 30 days before the date of
expiry.
7. Registers to be maintained by Location-In-Charge
- Register of Contractors - Form XII
8. Returns
ANNUAL RETURNS in Form No.XXV (in duplicate) to the registering
officer before 15 February of every year.
th

9. Display of Notice etc.

a) By Location-In-charge
1. Abstract of the Act
2. Name & address of the inspecting officer under the Act.
3. Name and Designation of authorised officer/representative(s)
who will be witnessing the payment.
4. If the Certificate of Registration is in the name of an officer, who is
not sitting at work site then Notices are required to be displayed at
both the places (Worksite and his Office).
5. Copy of Registration Certificate.
b) By Contractor
1. Notice showing the rate of wages, wage period, place and time of
disbursement hours of work, date of payment of wages and
unclaimed wages.
(The Abstract and all Notices should be displayed in English and in
Hindi and/or in the local language understood by the majority of
workers.
10. Do (Please ensure)
th
• Timely payment of wages (by 7 day of following month).
• Witness of payment by your authorised/nominated officer and
endorsement/certificate on wage sheet.
• Payment of Minimum Wages or the rates fixed by agreement /
settlement / award.
• Obtain copy of Attendance & Wage sheet of each month duly signed by
the Contractor or his Authorised Manager with seal.
• That Photo identity card issued to the contract labour must contain the
name, address and signature of the contractor.
• Take authority letter from Contractor notifying name of his Manager/
Representative who will be supervising/making payment etc on his
behalf.

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 • Obtain a copy of Income Tax details and Trade Licence.
• Obtain copy of Police Verification report of all Contract Labours.
• Always mention Regn number of location in all correspondence.
• All above mentioned Record to be kept in Original for last 3 years.
• Contractors are also required to display many Notices, so insist on
display.
• Obtain copies of Challans of PF/ESI every month from contractor.
11. Please Do not-
’’ issue any Character/Experience certificate to any Contract Labour.
’’ allow to use your address in his correspondence. At the most he may
write/show as client address.
’’ increase number of labours / induct new Labours without
justification and approval of State/Regional Head.
’’ issue any authorisation letter for any type of job / entry into any other
organization as rep of IOCL / your location.
’’ make any direct payment to Contract labours and especially on
Imprest Voucher.
12. Precautions-
• In case of non-payment by the Contractor, please inform LEO/ALC
(C ).
• If Contractor is not coming forward to pay wages/dues on time, inform
in writing to LEO/ALC and request for issuing notice to Contractor and
giving orders by fixing date of payment.
• If possible, obtain endorsement from Labour department for making
payment by Location in case Contract fails to abide the cut off date.
• Pay the wages but do not forget to mention the following on wage
sheet.
• Payment made to Contract labours of M/s……….. towards wages/
Register for the month of…….. by Indian Oil Corpn Ltd (Location) as
“Principal Employer” under Section 21 (4) of CL (R&A) Act read with
Letter number …. Dated……. of LEO/ALC/RLC (Central)”

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 The Factories Act, 1948

1. Applicability
This applies to all our Locations (Depots, Terminals, Installations and
AFSs) where 10 or more workmen are employed. Contract Labours and
Casual labour should also to be taken into account for this purpose.
2. Occupier
In case of all operating Locations which are covered under this act, the
“Occupier” as defined under Section 2 (n) proviso (iii) of the Factories Act is
the “Location In-charge”
Govt Of India, Ministry of Petroleum and Natural Gas is issuing Notification
in favour of all such Location In-Charges under this section and these
Notifications are addressed to the Concerned Chief Inspector Of factories.
3. Appropriate Government
Under this act the “Appropriate Govt.” is “State Government.”
Therefore, Director of Factories/Chief Inspector of Factories and Inspector
of Factories/ Assistant Director of Factories are the authorities.
District Magistrate(s) and Chief Medical Officer(s) of your District also enjoy
power of Inspector of Factories for implementation of certain sections and
they are empowered to inspect your location.
4. Licence
In case of new Location, please apply in the prescribed format along with
three copies of Drawing, Site map, Flow-Chart, Stability Certificate and
other statutory Certificates and requisite Fee.
The Licence is generally granted /renewed for one year only except in few
States where validity is more than one year. Generally it is given /issued for
Calendar year. Accordingly, application for renewal is to be submitted 30
days in advance before the expiry of the Licence.
5. Major Responsibilities of The “Occupier”
1. Obtain permission to construct, extend or take in to use any building as
factory
2. Once the construction is over, within 30 days before commencement
of the work, apply for registration of the Factory.
3. Send 15 days clear notice to the Chief Inspector of Factories before
the premises is occupied.
4. Submit copy of Notification of “Occupier” to your Inspector of
Factories.
5. Whenever, there is a change of Location-In-Charge, send a notice to
the Chief Inspector of Factories and concerned Inspector of Factories

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 within 7 days from the date on which the new Occupier/Manager has
taken over.
6. Whenever, there is a change in particulars of Licence including change
in number of persons to be employed, application for amendment of
licence is to be submitted to Chief Inspector of Factories/Factory
Inspector.
7. The “Occupier” is responsible for implementation of the various
provisions under the Act.
8. Follow various provisions related to Hazardous Process industry such
as-
- Inform workers regarding the dangers involved in the work /
process and the measures available to overcome such dangers.
- Intimate the Chief Inspector of Factories regarding the Health and
Safety policy and any changes thereof.
- Draw Emergency plan and detailed disaster control measures
with the approval of Chief Inspector of Factories.
- Setting up safety committee consisting of equal number of
workmen and officers, and taking action on any imminent danger
reported by the safety committee.
- Availability of first aid facilities and trained Workers.
- Availability of a Factory Medical officer (where 50 or more workers
are engaged)
6. Provide all applicable welfare facilities mentioned under Section 42 to
45 and Section 47 read with State Rules.
7. Notice of Accidents:- Where an accident is likely to cause disablement of
48 hours or more or if any occupational disease occurs, the same should be
reported to the Factories Inspector and Chief Inspector Of Factories.
8. FATAL ACCIDENT- In case of Fatal accident, please inform Chief
Inspector of Factories, Inspector of Factories, District Magistrate, Local
Police Station and other Statutory Authorities under various Central /State
Rules such as Environment Protection, Electricity, Customs & Excise etc
immediately over phone and with in 12 hours by all available
means/Telegram and in writing also with due acknowledgement.
9. Must maintain following Registers and Records:
1. Register of accident and dangerous occurrences
2. Register of adult workers/Attendance
(in respect of Contract Labours by respective Contractors)
3. Inspection Book
4. Record of white/ Lime washing and painting. (Form 7)

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 5. Approved Plan of the Factory.
6. Stability Certificate/Register of Pressure Vessels
7. Records of Testing of Drinking Water (Potability Test)
8. Copy of Emergency and Disaster Control Management Plan.
9. Safety Committee meeting Register/File/Records.
10. To Be Displayed/ Returns to be sent
1. Abstract of the Act in both English and local languages.
2. Notice of periods of work, lunch hours, Weekly- off/closed day, shift
hours etc.
3. List of Holidays.
4. Name & Addresses of the Inspector of Factories in both English and
local language.
5. Half yearly and Annual report within stipulated time.

*****

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 Employees’ Provident Fund And Miscellaneous Provisions
Act, 1952

1. Background
This is Central Act and applicable to our Industry/Establishment/Locations.
2. Applicability Of The Act
This Act applies to:
(a) Every establishment which is a factory engaged in any industry
specified in the Schedule and in which twenty or more persons are
employed, and
(b) Any other establishment employing twenty or more persons or
class of such establishments which the Central Government may, by
notification in the Official Gazette specify
3. Appropriate Government-
The Employees Provident Fund Organisation (EPFO), which comes under
Ministry of Labour, Government of India is the Enforcing agency.
4. PF Implementation for regular employees:-
Our Corporation has obtained Exemption under para-27A form Central
Government and known as “Exempted Establishment” Exemption has
been granted vide Notification No.S-35025/4/93-SSII dated 17/03/1994.
Therefore, we have our own PF Trust, which is managing the Funds etc.
It is centrally administered at Mumbai under the jurisdiction of the Regional
Provident Fund Commissioner, Maharashtra & Goa. Provident Fund
Section of HO is looking after activities of PF in respect of regular
employees.
5. PF implementation for Contract workmen is required to be carried out
by their “Employer” i.e. Contractor(s) and to be ensured by
Location/Unit In charge. .
6. Object of the Act
To provide for:
• Provident Fund to enable employees to meet certain contingencies.
• Employees’ Pension Scheme for social security
• Employees’ Deposit Linked Insurance Scheme to provide for
insurance in case of death while in service.
7. Establishment to include all Departments and Branches -
Where an establishment consists of different department or has branches,
whether situated in the same place or in different places all such
departments or branches shall be treated as part of the same
establishment. Therefore, our all locations, irrespective of number of
employees, are very much covered under the Act/Scheme. In other words,
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 even if number of employees both permanent and contract labour put
together employed in any particular unit is less than 20, that locations
would be covered.
“Employees” word includes Contract Labours engaged in the
activities/jobs of Handling, haulage, Loading & Unloading, Canteen,
Security, M&R, Fire & Safety, Gardening, COCOs etc except TT Crew
(LPG Cylinder/Bulk & POL)
8. Therefore, all the permanent employees of IOC and all the contract
labourers engaged by the contractors in all the units are covered under the
EPF Act, even if the number of contract labourers engaged by any single
contractor is less than 20 and even if he is engaged for a day or two as The
coverage under the Act has to be ensured from the First day of
engagement / employment. .
9. Further, contract laborers engaged by the contractors at Retail outlets run
on COCO basis are also to be covered.
10. If the Transporters at LPG Plants jointly engage the loading and unloading
contract workmen through their representatives, then it becomes very
difficult to hold any single transporter liable for the failure. Hence, locations
need to be more vigilant in ensuring full compliance under the Act.
11. Since, IOC is liable to extend the PF to all the contract workmen
irrespective of number of workmen engaged by each contractor including
those contractors who do not have separate code number. Hence, the
location should ensure the following:
a) Contractors engaging 20 or more workmen obtain a valid PF code
number and ensure compliance of the provisions of the Act.
b) Location may also approach the PF authorities and obtain PF Code
number in the name of our establishment for Contract Labours (with
sub code number for each contract ), where there are multiple
contracts and or the contractors do not possess Code number should
make remittances of PF contributions under IOC code and file
necessary returns.
12. Forms & Maintenance of Records, Registers etc by Contractor-
There are various records/registers to be maintained and kept at Location.
Therefore, please advise the Contractor(s) to maintain the same for
compliance and inspection. If they are non conversant with such
requirement, they may engage consultant to complete these compliance
and maintenance of Records/Registers/ etc.
Note: Copies of the attendance register for the month and the wages register
should be obtained by the Location-In-Charge from the contractor and the
amounts paid must be tallied with the amounts due. Contractor must also be
advised to submit the proof of submission of various returns including copy of
Challans so that it will amount to total compliance.

8
13. Important Things to be remembered-
A. When Contractor/Code Number Changes
(a) The workmen may be asked to fill Form No. 13 (R) and submit it to
the Commissioner through the present contractor.
(b) Please note that if contractor remits the contribution under the
code number allotted in the name of IOC for PF implementation in
respect of contract labour, there would be no requirement for
Form.13 (R).
B. Annual Statement of Member’s Account
PF Department will issue annual PF statements to members through
the employer by the month of September every year. The issuance of
the same should be ensured.
C. When Contract Expires or it is Terminated
(a) Contractor’s dues/Security Deposit should be paid only after
ensuring total compliance as mentioned above by the contractor.
In case of doubts locations can write to RPFC’s office to check
authentication of Contractor’s contribution claims in writing.
(b) Records such as attendance register, wage register, Challans for
payment of contribution etc., in respect of contract workmen
engaged by him during the contract period may also be obtained
and kept at location.
(c) The address of the contractor may be obtained and maintained at
the location.

9
 Implementation of ESI Act/ Scheme

1. Applicability of the Act

This Act applies to all Factories and Establishments. Where an
establishment consists of different department or has branches, whether
situated in the same place or in different places, all such departments or
branches shall be treated as part of the same establishment. Therefore, our
all locations, irrespective of number of employees, are very much covered
under the Act/Scheme. In other words, even if number of employees
both permanent and contract labour put together employed in any
particular unit is less than 20, that location would be covered.
This is Central Act and applicable to our Industry/Establishment/Units.
However, for the purpose of coverage Locations must find out from Office of
the Regional Director / Assistant Director / Local Office of the ESI
Corporation whether the area in which location is situated falls under
implemented area or not. If not, falling under implemented area, the
provisions of the Workmen’s Compensation Act will be applicable.
2. Object of the Act
The Act is a piece of Social legislation and the aim is to give relief and
provide grant of cash benefit to the employees, their families and
dependent in certain contingencies such as sickness, maternity and
employment injury and provide medical benefit also. The following benefits
are admissible under the Act / Scheme.
• Sickness benefit
• Medical benefit
• Maternity benefit
• Disablement benefit / Compensation
• Funeral benefit
3. Appropriate Government-
Employees’ State Insurance Corporation (ESIC), which comes under
Ministry of Labour, Government of India is Enforcing agency.
4. ESI implementation for Regular employees :-
Our regular employees are drawing wages more than the prescribed limits
for the purpose of coverage, hence not covered under the Act. IOCL has
formulated independent medical rules and in the past Corporation had
obtained Exemption also form Central Government. Application for
continuing the exemption beyond 30.11.2008 is presently pending with
Ministry of Labour.
Locations are covered under the territorial jurisdiction of ESIC and
compliance is to be made accordingly.
The exemption is not available to the contract labours. Therefore, ESI

10
 implementation for Contract workmen has to be ensured by the
Locations.
5. Employee to Include Contract Labour engaged in the activities/jobs of
Handling, haulage, Loading & Unloading, Canteen, Security, M&R, Fire &
Safety, Gardening, COCOs etc except TT Crew (LPG Cylinder/Bulk &
POL).
6. Therefore, all the contract labourers engaged by the contractors in all the
units are covered under the ESI Act, even if the number of contract
labourers engaged by any single contractor is less than 20 and even if he is
engaged for a day or two as coverage under the Act has to be ensured from
the First day of engagement / employment.
7. Further, contract laborers engaged by the contractors at Retail outlets run
on COCO basis are also to be covered, subject to the condition that it falls
under implemented area.
8. If the Transporters at LPG Plant jointly engage the loading and unloading
contract workmen through their representatives, then it becomes very
difficult to hold any single transporter liable for the failure. Hence, locations
need to be more vigilant in ensuring full compliance under the Act.
9. ESI Code Number for Contract Labours
Since, IOCL is liable to extend the ESI benefits to all the contract workmen
irrespective of number of workmen engaged by each contractor including
those contractors who do not have separate code number. Hence, the
location should ensure the following:
• Contractors engaging 20 or more workmen obtain a valid ESI code
number and ensure compliance of the provisions of the Act.
• Location may also approach the ESI authorities and obtain ESI Code
number in the name of our establishment ( i.e IOCL) for Contract
Labours ( sub code number for each contract), where there are
multiple contracts and or the contractors do not possess Code
number, the contractor should make remittances of ESI contributions
under this IOC code and file necessary returns.
10. Forms & Maintenance of Records, Registers etc by Contractor-
There are various records/registers to be maintained and kept at Location.
Therefore, please advise the Contractor(s) to maintain the same for
compliance and inspection. If they are non conversant with such
requirement, they may engage consultant to complete these compliance
and maintenance of Records/Registers/ etc.
Note: Copies of the attendance register for the month and the wages register
should be obtained by the location from the contractor and the amounts paid
must be tallied with the amounts due. Contractor must also be advised to submit
the proof of submission of various returns so that it will amount to total
compliance.
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 Important points to be kept in mind while implementing
provisions of PF and ESI Act/Scheme for contract Labours.

• In case of noticing defaulting attitude, the payment to contractor (s) limited

to the contribution amount (Employer and Employee) may be withheld until
the contractor submits a copy of wage sheet/payment register in respect of
his workmen for the last month duly signed and stamped by the contractor
or his authorized supervisor/agent.
• If the contractor is habitual defaulter and does not implement the scheme,
Location-In-charge may deduct Employer’s and Employee’s contribution
payable to PF/ESI Department from the bills of contractor(s) repeat from
the bills of contractor(s) based on the wage sheet of workmen.
• Such deducted amount (based on the wage sheet) should be deposited
preferably in the PF/ESI code number of concerned contractor (if he is
having code number).
• If contractor fails to obtain code number, deducted amount may be
deposited in the PF/ESI code number of your location. However, do not
forget to write/mention that Contribution is in respect of Contract labours of
M/s……and take his signature on all Challans.
• If the contractor deducts the contribution from the salary of the workmen,
the same should be deposited in scheduled Bank directly by the contractor
himself. Such amount deducted through salary, should not be
acknowledge/accepted by location in charge in any case as it is the
responsibility of contractor to deposit the amount directly to PF/ESI
Department.
• Please advise the Contractor(s) to comply all provisions as “Employer” and
in case of any difficulty, he/they should engage any consultant on
retainership basis at his cost..

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 The Payment of Wages Act, 1936
1. Applicability-
This act is not applicable to our regular employees as they are drawing
more wages as prescribed under the Act for the purpose of coverage.
However, the Contract labours are covered under the Act. There are certain
provisions, which are to be monitored by the Location to ensure and fulfil the
obligation as “Principle Employer”.
2. Object of the Act-
Regulating payment of wages, imposition of fines and deductions from wages
and eliminating all malpractices by laying down wages period, time and
mode of payment of wages.
The Act, therefore, ensures payment of wages in a particular form at regular
intervals without unauthorized deductions.
3. Scope & Coverage
The Act is applicable to the employees receiving wages below Rs.6500/-p.m.
Wages include all remunerations payable in cash, overtime or sums payable
for termination of service, but do not include house rent reimbursement, light
vehicle charges, medical expenses, TA, PF contributions etc
- Authorities- State Labour Department
Limit of Deductions from Wages
The total amount of permissible deductions in any wage period should not
exceed:
a) In case where deductions are wholly or partly made for payment to
cooperative societies, 75% of wages and
b) In any other cases, 50% of wages
4 Important provisions are given below:-
• Fixing the wage period by Employer
• Payment to the Contract labours should be made at the place of work
(Location)
• Payment should be made in current currency and coin.
• Payment should be made within 7th day of following month.
• No amount should be deducted from the wages of contract Labours
which are not falling under “Authorised Deduction” under the act.
• Displaying ‘Abstract “of the Act.

The Industrial Disputes Act, 1947

1. Applicability
The Act is applicable to our establishments/Locations. This is Central act and
uniformly applicable to our Units.
2. Appropriate Government
For our Industry/Units/Locations, the “Appropriate Government” is “Central
Government” as our Industry has been declared as “Controlled Industry”
under I.D Act .
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3. Object of the Act & Implementation:
The aim of the act is to ensure speedier resolution of Industrial Disputes and
provides the machinery and procedure for settlement of Industrial Disputes. It
is a self contained code to compel parties to resort to Industrial adjudication/
arbitration for resolution of existing or apprehended Industrial disputes
between employers and employers, or between employers and workmen, or
between workmen and workmen, which is connected with the employment or
non-employment or the terms of employment or with the conditions of labour,
of any person.
4. Authorities:
The following officials of Central Industrial Relations Machinery, who comes
under the Control of Chief Labour Commissioner (Central), Ministry of
labour, Govt of India, are the authorities under the act: -
• C.L.C (HQ level)
• Dy. Chief Labour Commissioner (Hq & Others)
• Regional Labour Commissioner
• Assistant Labour Commissioner
• Labour Enforcement Officer.
Officers mentioned against Sr. number 1 to 4 are “Conciliation Officers” also
under the act.
5. Important Actions:-
• Always give notice of minimum 7 days in advance in the prescribed
format under ID Act (FORM-E) before changing the timings of the Shift as
it is construed “Change in terms and condition” of employment under the
act. This provision also exists in our Certified Standing Orders.
• On receipt of any Notice from Labour department, either Location
Incharge should attend the first meeting or may depute/authorise any
other officer who is conversant to the matter to attend the meeting. Such
nominated/authorised officer must carry an Authority Letter on
Letterhead duly signed by the Location Incharge (Form- F).
6. Declaration of our Industry as “Public Utility Service”
Government of India, Ministry of Labour has been declaring our Industry as
“Public Utility Service” from time to time by issuing a Notification to this effect.
Please always keep a copy of such Notifications in your record.
7. Important points to be noted:-
• Never accept in any Correspondence that IOCL is “Employer” in respect
of Contract Labours.
• Do not ignore any Communication received from Labour Department.
• Always send reply/response/data/information within stipulated time. If
not possible to meet the cut-off date, please send interim reply and seek
extension of time.
• For all matters please do consult Regional HR and seek their advice and
send all papers to them along with case details/history and your
viewpoints/action taken by the Location in the past.

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 The Workmen’s Compensation Act, 1923

1. Applicability of the Act

This is Central act and also a piece of Social Security legislation. This act is
applicable to our industry/establishments/locations. However, if the
locations fall under ‘Implemented Area” as mentioned under ESI Act, then
provision of the W.C Act, 1923 shall not be applicable to such locations.
The applicability of this act is limited to a section of workmen as defined in
Schedule II, under Section 2 (1)(n) of the act as amended from time to time.
As per the act, workmen employed, otherwise than in clerical capacity are
covered.
2. Appropriate Government and Implementation
This is a Central Act and administrations of the act/provisions are under the
control of State Governments. Under this act, the Competent Authority is
known as “Commissioner for Workmen’s Compensation” .
3. Compliance /Forms & Maintenance of Records etc
In case of any accident of our regular workmen, where we are liable for
making payment of Compensation, please take following actions in
consultation with Regional HR-
• Inform “Commissioner for Workmen’s Compensation” in Form –EE.
• Send Notice/deposit Compensation with the Commissioner for
Workmen’s Compensation” (FORM-A- Death Case and FORM-AA-
Other cases)
• Obtain receipt of deposit in Form number –B
In case of any accident of Contract Labour, where Contractor is liable for
making payment of Compensation, please advise the Contractor to take
necessary actions.
4. Amount of Compensation-
It is to be calculated by Regional HR. Amount will be derived under Section
4 and 5 of the Act as amended from time to time.
5. Important points to be kept in mind-
• Under Section-12 of the Act, the Location Incharge as “Principal
employer’ is liable to pay the compensation to the worker of the said
contractor, if Contractor fails to do so.
• However, the Principal employer shall be indemnified by the contractor
and can recover the amount so paid from the contractor.
• In case of our regular workmen, please inform the procedure to the
family members and render all possible help to claim the amount form
office of “Commissioner for Workmen’s Compensation”.

15
• Follow the procedure for depositing the amount as laid down under
Rule 6 read with Section 8(1) in consultation with HR.
• This is the only Act where there is no nomination. In other words the
amount can be claimed/distributed by the Commissioner to any /all
relatives of a deceased workmen who were “dependants” on the
earnings of the deceased workmen. The amount of compensation to
be distributed as well as dependency aspect is decided by the
Commissioner.
• There may be a designated official as “Commissioner for Workmen’s
Compensation”. Any Presiding Officer of the Labour Court/Tribunal
may also be designated as “Commissioner for Workmen’s
Compensation”. In some of the States, District Authorities
(SDMs/ADMs) have also been designated as “Commissioner for
Workmen’s Compensation”.

16
 Payment of Gratuity Act, 1972

1. Applicability of the Act

This is Central act and also a piece of Social Security legislation. This act is
applicable to our industry/establishments/locations
2. Object of the Act-
The act provides for payment of Gratuity to persons employed in various
types of Industries/Factories/Establishments etc after serving a minimum
period in that particular establishment/factory etc.
This is applicable to the Contract Labours also and responsibility rests with
the respective Contractors.
3. Appropriate Government-
The “Appropriate Government” is Central Government.
4. Authorities and Implementation.:
The following officials of Central Industrial Relations Machinery, who
comes under the Control of Chief Labour Commissioner (Central), Ministry
of labour, Govt of India, are the authorities under the act: -
1. Labour Enforcement Officer -(Inspecting authority)
2. Assistant Labour Commissioner –(Controlling authority)
3. Regional labour Commissioner (Appellate authority)
5. Payment of Gratuity-
It is payable to an employee on the termination of his employment after he
has rendered continuous service not less than five years-
(a) on his Superannuation, or
(b) On his retirement or resignation, or
(c) On his death or disablement due to accident or disease.
However, the condition of five years of continuous service is not applicable
for cases of cessation of service due to death or disablement.
6. Amount of Gratuity-
In normal case 15 days of wages for every completed year of service or part
thereof in excess of six months.
7. Maintenance of Records/Registers etc -
Please ensure that
a) Notice of opening of Location has been sent to ALC (Central) in
Form-A. [Sub Rule (1) of Rule 3 ]-in case of opening a new location.
b) Abstract of the said Act (English & in the language understood by
the majority of the employees) has been displayed on Notice Board
(Rule –20)
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c) Notice displaying Name and Designation of officer has been
notified/displayed to receive any Notice/application on behalf of the
Employer (Rule –4)
d) Notice informing to the Controlling Authority regarding notice of
change has been sent Sub Rule (2) of Rule (3)
e) Copies of Notices mentioned at serial. No. 1 & 3 has been forwarded to
RLC/ ALC/ LEO (C)
f) Arrange to retain/obtain copies of nomination Forms in respect of all
employees posted at your location from Regional HR.
g) All Notices should be in English and in the Language, which is
understood by the majority of employees.

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 The Shops and Establishment Act

• This is applicable to units such as Small Depots, AFSs and all

Administrative offices, which are not covered under Factories Act.
• The objective of the Act is to regulate the working and employment
conditions of workers in the shops and establishments including the
commercial establishments, which are not covered by the Factories Act or
Mines Act or any other Act regulating the employment conditions.
• The Act provides for the working hours, rest intervals, overtime, holidays,
leave, termination of service, maintenance of shops and establishments
and other rights and obligations of the employers and employees.
However, this is not applicable to persons employed in managerial position.
• On the Principle laid down by the Hon’ble Supreme Court of India in C. V.
Raman’s Case, our all-administrative offices (Regional Offices, Divisional
Offices, Area Offices etc) are out of preview of this Act/Rules, provided that
provisions of the Local Shops & Establishment Act are similar to the
provisions of Tamilnadu Shops and Estab. Act.
• However, to protect the interest of our Corporation and Heads of
Administrative offices, it is advisable to have atleast Registration Certificate
of our administrative Unit(s) from the concerned Local Authorities. This is
required to have on record and we may use this to show/prove that the
administrative heads are the “Employer” under various Act/Rules of their
Establishment.
***************************

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 Employment Exchanges (Compulsory Notification of
Vacancies) Act, 1959

1) Applicability-
This act is applicable to our establishments.
2) Scope/ Objective
Under this act, Employers are required to Compulsory notify to the
Employment Exchanges regarding all vacancies.
3) Returns
Employers are required to submit Quarterly Return in FORM -ER-I and
Once in a two years in FORM - ER-II.
4) Comments.
The HR Group of Regional Office is looking after recruitment; therefore,
aspect of sending RETURNS would be looked after by Regional HR.
5) Important
In case you receive any Notice/ Letter from your nearest/District
Employment Exchange, please bring this to the notice of Regional HR and
ensure that suitable reply is sent/given within stipulated time.

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 Industrial Employment (Standing Orders) Act, 1946

1. Applicability
This is applicable to our Corporation/Establishment/Units.
2. Authority to Certify
R.L.C /Dy. Chief Labour Commissioner (Central), Govt of India
Comments-
We have Certified Standing Orders, which is applicable to all units of
Marketing Division.
3. Important points for compliance-
• This is a very important and essential part of Terms and Conditions of
employment of Workmen category and deals with various aspect such
as category of workmen, Do’s and Don’ts, Act of Misconduct, Inquiry
procedure, Competent authority to take actions, punishments and
Grievance procedure etc.
• Please display a copy of Certified Standing Orders (CSO) at Location.
• Follow provisons of Para/Section 12.3 of the CSO whenever an
additional shift is started, or altered or discontinued. Always give notice
of Minimum 7 days in advance in the prescribed format (FORM-E)
before changing the timings of the Shift. This provision also exists in
ID Act as it is construed as “Change in terms and condition” of
employment.
• For examining any act of Omission & Commission (misconduct),
please refer Para/Section 19 of CSO.
• Please do consult your Regional HR for any disciplinary action related
matter including Inquiry and its’ procedure.
• In case of violation of any provisions/rules and regulations of the
Corporation by our regular workmen, which can be brought under the
definition of “Act of Misconduct” under Para/Section 19 of CSO, please
do consult Regional HR.

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 Equal Remuneration Act, 1976

1. Objective
To ensure payment of equal remuneration to male and female workers and
to prevent any discrimination against women, on the grounds of gender.
2. Scope and Coverage-
This act is applicable to our Units provided that on any specific post Male
and Female (both category) workers are being engaged at that location.
3. Appropriate Government-
The Central Government
4. Authorities-
1. Labour Enforcement Officer -(Inspecting authority)
2. Assistant Labour Commissioner –(authority)
3. Regional Labour Commissioner -(authority)
5. Register
Location is required to maintain a Register in FORM-D.
6. Precautions-
• Please inform Regional HR about any inspection carried out by labour
department
• Always send reply within prescribed time/date or send interim reply
and seek extension of time in writing.
• Advisable to check whether the details of notification mentioned in the
inspection note is correct and your location is covered under the said
notification.

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 The Minimum Wages Act, 1948

• The provisions of this Act are applicable to the contract labours provided
that the employment in which they are engaged, falls under the “Schedule
Employment” as given in the Act.
• As of now, the Minimum Wages Act is not applicable to Petroleum Industry.
However, based on Central act, State Governments have framed their
Rules. Therefore, Location must Check/examine the State Rules also.
• Locations must ensure that Contract labours are paid wages not less than
the minimum wages prescribed by the Government. If for the same nature
of activities/jobs, State and Central Govt both have issued Notification, the
higher of the Minimum wages prescribed by the Central Government OR
respective State Government should be adopted.
• Do not forget to subscribe or collect Notification of Minimum Wages
of your State.

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 The Official Secrets Act, 1923

• Applicability
It is applicable to all operating units only. Under this act, our units are
declared as “Prohibited Place”.
• Appropriate Government
State Government (Home Department)
• Action required at Location.
In case your location has not been declared as ‘Prohibited Place”, please
apply to the State Home Department stating that your’s is a Govt of India
Undertaking engaged in manufacturing, production, storage and
marketing of various Petroleum products and catering the need of Defence
Installation (Army, navy and Air Force), Railways, Airports, Airways,
Electric Generation Units/ Power Plants, Industrial manufacturing units
and other various Civic authorities etc. Our establishments/industry has
also been declared as “Public Utility Services” and “Controlled Industry”.
Our Storage units are very vital and important to nations requirement and
vulnerable from Security point of view. In view of above, please request for
declaring your unit as “prohibited Place” under the said act.
Please attach 3 copies of Site plan, simple flow chart of process and a
drawing showing objects/places/land marks in the four corners
(Chauhaddi) of your unit.
Once Notification is issued, please display reference of Notification and
“PROHIBITED PLACE” at the main gate.
• Procedure
The State Government will carry out inspection of your unit and
State/Central Intelligence Unit may also carry out surprise inspection and
submit their report through District authorities (Police and administration)
to Home department. Once satisfied with the security arrangements and
procedure being followed by your Unit, a NOTIFICATION will be issued by
State Home Department or District Magistrate.
On receipt of Notification, please forward copies to State Office, Divisional
Office and Regional office for information and records.
• Authority
The Unit In charge enjoys certain powers under this act. Without his
permission, no person can enter the premises and carry classified records,
map and documents. The violator may face criminal action and can be
awarded imprisonment by the Court.

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 Please refer following recent Circulars/Guidelines
issued by HO.

Subject Circular / IOM / Notification Dated

number
The Factories Act, 1948 Circular No.2009/HR/24 of HO 29.05.2009
MOP&NG letterNo.I-1104/1/90-Gen 02.07.1992
IOM No : OP/27(FA) of HO 28.04.1987
E.P. F & Misc Act, 1952 IOM No. IR/1292 of HO 07.08.2009
Ministry of Labour Notification –
Grant of exemption under
Para 27-A 17.03.1994
IOM No.IR/1441(P) of HO 27.02.1995
Circular No.95/99 of HO 31.12.1999
ESI Act, 1947 IOM No. IR/1292 of HO 07.08.2009
C.L (R&A) Act, 1970 IOM No. IR/1292 of HO 27.07.2009
IOM No.IR/1232(6)/Cont.Lab of HO 27.04.2000
Formats and Check IOM No. IR/1232 of HO 26.05.2009
List–under Corporate (Sent to all Regions/
Governance Regions/ SOs) and
(All Labour Laws) again sent thru
Lotus mail
dated 1/06/2009.
Industrial Disputes Notification of Ministry of Labour- Dated
Act, 1947 Govt of India- On “Controlled 16/01/2001
Industry”
Notification on “Public Utility As and when issued.
Services”
• For further clarification please contact Regional HR.
• Please also refer Circulars issued by your Region.

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 Following Bare Acts may please be kept at Locations
for ready reference-

01 The Factories Act, 1948 together with State Rules

02 Payment of Wages Act, 1936
03 Payment of Gratuity Act, 1972
04 Industrial Disputes Act, 1947
05 Minimum Wages Act, 1948 together with State Rules
06 Equal Remuneration Act, 1976
07 Employees Provident Fund & Misc Prov. Act, 1952
08 E.S. I. Act, 1948 and Scheme
09 The Workmen’s Compensation Act, 1923
10 Industrial Employment (Standing Orders ) Act, 1946
11 Contract Labour (Regulation & Abolition) Act, 1970
12 The Official Secrets Act, 1923
13 Shops and Establishment Act with Rules (State)
14 Employment Exchange( Compulsory Notification of Vacancies)
Act, 1959

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