Executive Post Graduate Diploma in Management

Term : 1

Subject:OBHRM

FACULTY: DR. RAMESH M SWAMY

Alliance University: Executive PGDM
Chapter 14 A –Knowledge
Base

Industrial Relation and

Labour Law in India
Dr.Ramesh M Swamy
IMPORTANT LABOUR AND
FACTORY LEGISLATIONS IN
INDIA

RAMESH SWAMY
Acts and Rules

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 Blend of Acts and Rules

 Centered on the responsibility of a Factory Manager,

Personnel/ HR Manager or self employed Entrepreneur.
 Attention has not been made wherever the employer has
nothing to do with the provisions but has only to follow the
directions of the appropriate govt.
THE FACTORIES ACT, 1948

 Act which makes it obligatory on the part of the employer to

provide for the health, safety and welfare of the workers
employed.
Act extends to the whole of India.

 Applies to every factory wherein 10 or more workers are or

were employed, if run with power and 20 or more workers are
or were employed, if run without power.
 Application to factories with fewer workers u/s 85
PROVIDES for
 Hours of work (adult) not to exceed 48 hours in a week or
9 hours in a day.
 Relaxation: Where an adult worker is engaged in
urgent repairs.
 Payment of Overtime wages for overstay at workplace @
twice the ordinary rate of wages.
 ** Provision relating to hours of work not applicable to
supervisory staff.
 Weekly Holiday: No work for more than 10 days without a
day of rest.
 Intervals of rest: half an hour for 5 hours of work
 No child (who has not attained the age of 15 years) be
permitted to work.
 Prohibition of employment of Women: No woman shall be
employed in any factory for more than 9 hours in any day
or between 7 pm and 6 am.
Factories Act now allows women to work night shifts
PROVIDED

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

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

240 days of work during preceding year.
 Days of lay off, paid holidays or leave days considered
 Encashment of unavailed leave: Encashable at the present rate of
wages.
The occupier (Employer) to
maintain a register – LEAVE WITH
WAGES REGISTER- in FORM 15

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 Provide each employee a Leave Book- thick
bound sheet- in FORM 16 (with similar
entries as in Form 15)
 Provide each worker an Attendance Card in
form 28 showing the particulars of
employment
* shall be substituted by Electronic cards
 EMPLOYER TO KEEP THE FACTORY
PREMISES CLEAN
 white washing at least once in every 14 months
 repainting or revarnishing every 5 years
 ensure proper disposal of wastes and effluents
 Record the dates on which white washing, painting or varnishing done
in a register in FORM 7.
 Ensure provision of sufficient number of Latrines and urinals –
separate for gents and ladies
 Ensure spittoons are provided at adequate places.
 Ensure workplace has adequate ventilation
 Avoid overcrowding – ensure 500 cubic feet of space for every worker
without reference to any space which is more than 14 feet above the
level of the floor of the room.
 Ensure proper lighting- artificial or natural or both.
 Ensure supply of uninterrupted supply of Drinking Water.
 Where the no. of workers is more than 250, provision for cold
water in every lunch room, rest room and canteen shall be ensured.
 EMPLOYER TO ENSURE SAFETY OF
WORKERS
 Fencing of Machines and Moving parts of machines
– spindles, gears, pulleys, belts etc
 Protection of eyes using screens or goggles from
excessive light or infra-red or ultra violet radiations
 Precaution in case of Fire.
 No woman or young person shall, unaided by
another person, lift, carry or move by hand or head
any material or tool exceeding the maximum limit
prescribed.
 * Adult male 75 Kgs
 * Adult female 30 Kgs
 * Adolescent male 30 Kgs
 * Adolescent female 20 Kgs
 Safety Officer: Appoint a Safety Officer wherein
1000 or more workers are employed.
EMPLOYER TO LOOK AFTER THE
WELFARE OF EMPLOYEES
► Washing facility separately for women and men

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► Separate rooms for men and women for drying of clothes
► Separate rest rooms for men and women
► First Aid boxes equipped with prescribed medicines
► Ambulance room where 500 or more are employed
► Canteen for use of workers where 250 or more are
employed (150 under Plantation Labour Act)
► Lunch room where 150 or more are employed
► Crèches where 30 or more women are employed
► Appoint WELFARE OFFICER (S) where 500 or more are
employed (300 under PLA)
► The duties, qualification and conditions of service of such
welfare officers shall be in accordance with the rules of the
respective State Govt.
► NOTICE OF DANGEROUS OPERATIONS
REGISTERS TO BE MAINTAINED
 Attendance Register/ Muster roll in form 25
 Register of Adult Workers in form 12
 Record of Lime washing, painting etc in form 7
 Register of Compensatory Holidays in form 9
 Overtime Muster roll for Exempted workers in form 10
 Register of Leave with Wages in form 15
 Health Register in form 17 (in respect of persons
employed in occupations declared to be dangerous
operations u/s 87)
 Register of Accidents and Dangerous Occurrences in form
26
 Particulars of Rooms in the factory in form 35.
 RETURNS TO BE SENT TO
APPROPRIATE AUTHORITIES

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 Notice of accidents and dangerous occurrences resulting
in death or bodily injury in form 18 (similar to the one to
be sent ESI Local Office under the ESI Act)
 Half yearly returns in form 22
 Annual returns in form 21
 Notice of change of Manager in form 23
 Details of closure in form 32
 Report of examination of Pressure Vessel or Plant in
form 8
 Report of examination of Water sealed Gas holder in
form 38
 Report of Examination of Hoist or Lift in form 41
 Certificate of Fitness for Dangerous Operations in form
39
THE INDUSTRIAL EMPLOYMENT
(STANDING ORDER) ACT, 1946
 Defines the terms and conditions of service between the employer
and his employees.
 Applies to every industrial establishment wherein 100 (in some States
50)or more workers are employed
 The Act extends to the whole of India
SIGNIFICANCE

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

 Date on which the standing orders shall come in to force and shall
remain in force
 Definitions
 Classification of workmen as Permanent, Probationer, Badlis,
Casual and Trainees
contd
 Obligations –
 not to carryon any other business for gain or to

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take admission in educational institution
without permission
 to observe strict secrecy of company matters
 not to take photographs, drawing or
documents of the process of manufacture of
the company
 not to carry any lethal weapon, explosive or
article dangerous to life or property
 to follow safety rules in force
 to inform any change in the address
 etc
 contd
 Medical examination and aid in case of
accident
 Identification of workmen and issue of Identity
cards
 Working time for different categories of
workmen
 Record of age, qualification and experience
 Entry, exit and liability for security checking
 Shift working and weekly off
 Attendance and late coming
 Methods of applying for different kinds of
leave and extension of leave
 Action for unauthorised absence
 National and festival holidays
contd
 Transfer
 Apprehension of danger to the safety and
security of factory and its personnels
 Date of payment of wages/ salary
 Overtime wages
 Increment and promotion
 Stoppage, closing or lay off of establishment
and strike
 Resignation – notice or payment in lieu of
notice to be given
 Termination of employment and notice or
payment in lieu of notice required to be
served or made
 contd
 Deduction from wages for fine imposed or
absence from duty or loss caused to the
property and recovery of employees
contribution to schemes like EPF, ESI and
Labour Welfare fund
 Age of superannuation
 Grievance procedure
 Disciplinary action for misconduct
 Punishment for misconduct and procedure for
imposition of punishment
 contd

 Service of notice
 Issue of service certificate
 Amendment of Standing order
 Exhibition of Notices – as whether if put in the Notice Board or not
THE MATERNITY BENEFIT ACT, 1961

 The Act extends to the whole of India except Jammu & Kashmir
 Applies to every factory, shop or establishment
 Woman entitled to maternity benefit not withstanding the
application of the Employees State Insurance Act, 1948
Employer to ensure……
 No woman works during the six
weeks immediately following the
day of her delivery or her
miscarriage
 No woman does any arduous
work during the period of ten
weeks from the expected date of
delivery
 Not to discharge or dismiss a
woman during her pregnancy
Eligibility

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 Work of 160 days in the 12 months
immediately preceding the date of
delivery.
 Leavedays & lay offs taken as
worked.
 Benefit

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 12 weeks leave of which not more than 6
weeks shall precede the date of her expected
delivery
 The benefit to be paid @ average rate of
wages for the three months preceding her
maternity leave
 In case of miscarriage, 6 weeks leave with
pay at the same rate as applicable to
maternity benefit.
THE MINIMUM WAGES ACT, 1948

 AN ACT TO PREVENT “SWEATED LABOUR AND

EXPLOITATION OF LABOUR”

 The Act extends to the whole of India

 Requires the Central and State Govt. to fix minimum rates of

wages in certain scheduled employment.

 Minimum wages fixed REVISED from time to time

Responsibility of the Employer

 to follow the directions and fix wages of the workers at the

rate not less than the one fixed
 to maintain Register of Wages in form XI showing
rate of wages payable,
actual amount paid,
attendance & overtime,
deductions for EPF, ESI and other,
net amount paid,
date of payment and
signature of respective employee.
 Wages slip in form XIII showing the above details to be
given to every employee.
THE WORKING JOURNALISTS (FIXATION OF RATES
OF WAGES) ACT, 1958

Provides for the fixation of wages in respect of Working

Journalists and for matters connected therewith
PAYMENT OF WAGES ACT, 1936

An Act to regulate the payment

of wages to certain classes of
persons
 Extends to the whole of India
 Responsibility of payment wages rests with the employer
 Employer to fix Wage Period
 No wage period shall exceed one month.
 Time of Payment of wages

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 7thday of wage month where less than
1000 are working
 10th
day where more than 1000 are
working
 No payment in KIND
Permissible deduction from
Wages
 fines

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 for absence from duty
 for damage caused to the property of the
employer
 for the amenities provided, like house
accommodation
 for recovery of advance or adjusting over
payment of wages
 towards EPF, ESI, Labour Welfare Fund and
similar deductions permitted under any Act or
the Standing Orders of the establishment
 for Life Insurance/ general insurance policies
and Housing loan.
The Kerala Payment of Subsistence
Allowance Act, 1972
 Act to provide for the payment of
subsistence allowance to the
employees during the period of
suspension
 Extends to the whole of Kerala
Suspension

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 Any interim decision of an employer debarring an
employee temporarily from attending his office
Payment of Subsistence Allowance

 50% of wages for the first ninety days of suspension

 75% of wages for the period beyond ninety days
 Full wages for the period beyond one hundred and eighty days
Not eligible for Subsistence Allowance

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 An employee placed under suspension not entitled for
subsistence allowance if he accepts employment during
the period of suspension
THE PAYMENT OF BONUS ACT, 1965
 An Act to provide for the payment of Bonus to
persons in certain establishments on the basis of
profits, production or productivity.
 Extends to the whole of India.
 Applies to every establishment wherein 20 or
more are employed
 The Appropriate Govt. shall apply the Act to
any other establishment, including a factory to
which the Factories Act, 1948 applies, wherein
less than 20 workers are employed provided the
number of persons employed is not less than 10.
Eligibility to Bonus

 employee whose salary/ wages does not exceed Rs

10000 per month
 who has worked in the establishment for not less
than 30 days
 Not disqualified to claim bonus due to fraud, theft or
any other misconduct
 Bonus of very person drawing salary between Rs
3500/- and Rs 10000/- per month shall be calculated
as if his salary were Rs 3500 pm
For calculating the number of
working days
the days for which the worker has been laid off


 the days he has been on leave with pay

 the days he has been absent due to temporary disablement
caused by an employment injury
 the days a woman employee has been on maternity leave
shall be taken in to account.
 Rate of Bonus

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 Minimum :8.33% of salary/wages
 Maximum 20% of salary/wages
 Computation of bonus as per Schedule I to IV of the Act.
 Adjust any interim bonus paid while making payment of the
final bonus.
Disputes on Bonus

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 The Bonus Act does not provide for any machinery to resolve
disputes relating to bonus. For this, the Industrial Dispute Act shall be
referred to.
THE PAYMENT OF GRATUITY ACT,
1972
The Kerala Industrial Employees Payment of
Gratuity Act, 1970, followed by the West Bengal
Employees Payment of Compulsory Gratuity
Act, 1971 and the intention of the other States to
have similar Acts in their respective states
necessitated the Central Act so as to avoid
different treatment to employees of
establishments having branches in more than
one states who are subject to transfer from one
state to another.
The Payment of Gratuity Act, 1972
extends to the whole of India.
 Applies to every factory, mine, plantation and other establishment
wherein 10 or more workers are employed.
Gratuity is in the nature of a
retirement benefit payable to an
It is not paid to an employee gratuitously or merely as a matter
employee
of boon.for a for
long and meritorious

It is paid the service rendered by him to the
employer (Delhi Cloth and General Mills Co; Ltd Vs The
service.Workmen)
 Then why it should necessarily be denied to him when an
employee is dismissed for misconduct at a latter stage of
service ???
 Jha
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Gratuity is payable to an employee on
termination of his employment after he has
rendered continuous service for not less
than five years
 on his superannuation
 on his resignation
 on his death or disablement due to employment injury or
disease
 News paper employees

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 The Working Journalists and Other Newspaper Employees
(Conditions of service) and Miscellaneous Provisions Act, 1955,
provides for payment of gratuity.
 As such, three years of continuous service is required for eligibility for
Gratuity.
The payment of gratuity shall be
forfeited

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 to the extent of the damage or loss
caused by the employee to the
property of the employer
 where the service of the employee is
terminated due to misconduct
Rate of gratuity

 15 days wages for every completed year of service

 Rates applicable to Working Journalists depends upon the
service of the employee as provided in the Working
Journalists and Other Newspaper Employees (Conditions of
service) and Miscellaneous Provisions Act, 1955
The average pay of the monthly
rated employee shall be taken by
dividing the monthly salary/ wages
by 26 and not by 30
Piece rate workers and Seasonal
establishments
 For piece rated workers, average of the three months wages
immediately preceding the day of leaving shall be taken as
average rate of wage
 An employee in a seasonal establishment shall be paid @
seven days wages for each season
 Salary ceiling

The Amendment Act of 1994

removed the salary ceiling of an
employee, but the maximum
gratuity payable shall be Rs 3.5
lakh.
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In order to be eligible for gratuity,
employee should have at least five
continuous years of service with the
An employee is in service in a calendar year provided he has

employer
worked for
 190 days in case employee is employed below the ground and
 240 days in any other case.
 Continuous service (contd.)

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The days he/she has been
 laid off under an agreement or under the ID Act or
as permitted by the Standing Orders
 on leave with pay
 absent due to temporary disablement due to
employment injury
 on maternity leave

shall be taken as worked for the

calculation of 190/240 days.
For seasonal employment 75%
attendance during a season shall

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constitute service in a year
► An employee who has worked for 4 years 11 months and 10
days not eligible for gratuity as decided in P. Raghavalu and
Sons Vs Additional Labour Court, Andhra Pradesh, as the
qualifying phrases ‘part thereof in excess of six months’ shall
be taken only for calculation of gratuity and not for
determining the eligibility of gratuity.
THE INTERSTATE MIGRANT WORKMEN
 Act to regulate the employment of interstate
(REGULATION
of service. OF EMPLOYMENT AND
migrant workers and to provide for their conditions

CONDITIONS OF SERVICE) ACT 1979

Extends to the whole of India.

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

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

 Registration of establishments employing interstate migrant

workmen, licensing of contractors, appointment of licensing
officers, prohibition of employment of migrant workmen
without registration and duties and obligations of contractors
provided under the Act.
 ub
ar
Employer to ensure Jha
 Regular payment, equal pay for equal work irrespective of sex,
suitable conditions of work, medical facilities, protective
clothing etc shall be ensured to such workmen.
 The contractor to maintain register of migrant employees,
send report of accidents, half yearly returns (From 23) and
annual returns (Form 24)
 Employer contravening the provisions liable for punishment of
imprisonment or fine or both
THE EQUAL REMUNERATION ACT, 1976

 Act provides for the payment of equal

remuneration to men and women
 Extends to the whole of India
 Act makes it obligatory on the part of employer
to pay equal remuneration to men and women
workers for same work or work of a similar
nature.
 In order to make the wages equal, prevailing
wages shall not be reduced but the higher rate
shall be maintained.
 No discrimination
 No discrimination while making recruitment for the
same work or work of a similar nature, except where the
employment of women in such work is prohibited or
restricted by or under any law for the time being in
force.

 No discrimination in any condition of service

subsequent to recruitment such as promotions, training
or transfer.
THE APPRENTICES ACT, 1961

 The Act extends to the whole of India.

 Applies to those apprentices who are undergoing apprenticeship
training in designated trades.
 From time to time, the Central Govt. has specified the designated
trades.
Contract of apprenticeship

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

 The contract of apprenticeship training is to be sent to the

Apprenticeship Adviser of the respective area.
Termination of training
 on the expiry of the period of apprenticeship

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training specified in the contract.
 Premature termination by employer -
the employer shall pay to the apprentice such
compensation as may be prescribed
 Premature termination by the apprentice
apprentice or his guardian shall refund to the
employer as cost of training such amount as
may be determined by the Apprenticeship
Adviser
NUMBER OF APPRENTICES

 Depends on the ratio of trade apprentices to workers other than

unskilled workers and the facilities available and that may be made
available by the employer for training the apprentices.
 Duties of the employer
 Make suitable arrangements for imparting practical
training
 Provide for basic training.
 Where an employer employs 500 or more workers,
the basic training shall be imparted in separate part
of the workshop building or in a separate building
set up by the employer.
 * the employer may get easy loan from the Govt.
for construction of building for conducting training
classes
 ITIs
 if the number of apprentices to be trained is less
than twelve, then the employer may depute
such apprentices to any Basic Training Center
or Industrial Training Institute run by the
Government for basic training in any
designated trade.
 Where an employer deputes any apprentice as
above, such employer shall pay to the
Government the expenses incurred by the
Government on such training, at such rate as
may be specified by the Central Government.
 RI Centre

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 Apprentice to be given Related
Instruction course.
 Time spent by a trade apprentice in attending classes on
RIC shall be treated as part of his paid period of work.
 EMPLOYERS to ensure

 Placement of Training Officer with suitable qualification

 Payment of stipend at a rate not less than the prescribed minimum
rate
 Not to pay on the basis of piece work
 Not to require to take part in any output bonus or other incentive
scheme
Employer to ensure (contd.)

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 HEALTH, SAFETY AND WELFARE OF APPRENTICES
 Not to require or allow overtime except with the approval of the
Apprenticeship Adviser.
 In case of employment injury pay compensation in accordance
with the provisions of the Workmen's Compensation Act, 1923
 disputes

 Any disagreement or dispute between an employer and an

apprentice arising out of the contract of apprenticeship shall be
referred to the Apprenticeship Adviser for decision.
Obligation for employment

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It shall not be obligatory on the part of the employer to offer any
employment to any apprentice who has completed the period of his
apprenticeship training in his establishment,
 nor shall it be obligatory on the part of the apprentice to accept an
employment under the employer.
 THE WORKMEN’S
COMPENSATION ACT, 1923

 The Act provides for payment of compensation to the worker injured

during the course of employment or contracted by any
occupational disease peculiar to that employment
 Act extends to the whole of India.
The amount of compensation
 for accidents resulting in death, an amount equal to fifty per
cent of the monthly wages of the deceased workman

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multiplied by the relevant factor; or an amount of eighty
thousand rupees, whichever is more
 * for permanent total disablement, an amount equal to sixty
per cent of the monthly wages of the injured workman
multiplied by the relevant factor, or an amount of ninety
thousand rupees, whichever is more.
 The maximum compensation as per W.C.
Amendment Act 2000

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 Fatal Injury - Rs.4,57,080
 Permanent Total Disablement - Rs.5,48,496
 Permanent Partial Disablement - According to incapacity caused
 Temporary Disablement - Rs. 2000 per month upto a period of 5
years
ESI Corporation and Workmen compensation

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 Theliability of payment of
compensation shifted from the
employer to the Employees State
Insurance Corporation
EMPLOYEES STATE INSURANCE ACT,
1948
Act extends to the whole of India, However
The ESI Scheme is being implemented area-wise
by stages.
The Scheme has already been implemented in
different areas in all States/Union Territories
except Nagaland, Manipur, Tripura, Sikkim,
Arunachal Pradesh and Mizoram and UTs of
Delhi, Chandigarh and Pondicherry
 ESI Act
* Applies to factories and establishments functioning in the
notified area and consisting of 10 or more employees.

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* Provides for health care and cash benefits in cases of sickness,
maternity and employment injury.
* The Act absolved the employers of their obligations under the
Maternity Benefit Act, 1961 and Workmen’s Compensation Act
1923.
 Employees covered

All employees drawing salary of Rs

10,000 or less are covered
(w.e.f 1-10-2006)
Contribution
 Employees’ contribution . 1.75% of wages
 Employers’ contribution. 4.75 % of wages
 Employees receiving a daily average wage
upto Rs.70/-(w.e.f 1-8-07) are exempted from
payment of contribution. Employers will
however contribute their own share in respect of
these employees.
 pay contribution within 21 days.
Contribution Period and Benefit
Period
 There are two contribution periods each of six months duration
and two corresponding benefit periods also of six months
duration as under
 Contribution period Corresponding
Benefit period
1st April to 30th Sept. 1st January of the following year
to 30th June

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

the year following
ESI Benefits

 Medical Benefits
 Available both to IP and family.
 Also available to disabled/retired IP
 Super specialist treatment
 Sickness Benefit
Maternity Benefit
Disablement Benefit
Dependant benefit
Funeral Expenses
Old age medi care
Rehabilitation
 Employer to maintain and file
the following books and returns.
1. Form 7 (Register of Employees showing the details

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
of Gross wages, ESI contribution deducted,
Contribution by the Employer and total for the
contribution period (six months)
 2. Accident book in form 15
 3. ESI Declaration in form 1,
 4. Return of declaration in form 3
 5. Return of Contribution in form 6 for the
contribution period (with similar entries as in register
of employees Form 7)
 6. Accident report in form 16. (similar to Form 18 to
be furnished to the Inspector of Factories and
Boilers)
EMPLOYEES PROVIDENT FUND AND
MISC. PROVISIONS ACT, 1952
 An Act to provide for the institution of provident funds, pension
funds and deposit linked insurance fund for the employees in
the factories and other establishments
 Extends to the whole of India except the State of Jammu and
Kashmir
Applicability
 Applies to all factories and establishments in which 20 or
more are employed
 Continuity of application
 Exemption –
 Where employees get benefits in the nature of
provident fund or old age pension fund from the
establishment which are not less favourable than the
benefits under the Act.
Schemes under the Act

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Three beneficial schemes-

1.Employees Provident Fund Scheme 1952

2.Employees Pension Scheme 1995

3.Employees Deposit Linked Insurance 1976

membership

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 An employee at the time of joining the employment and getting
wages up to Rs.6500/- is required to become a member.
 an employee is eligible for membership of fund from the very first
date of joining a covered establishment.
Contribution to EPF
 Employees’ share : 12% of the Basic + DA
 Employer’s contribution : 12% to be deposited as :

 8.33% to be deposited in Pension Fund A/C No 10 and

 the balance, ie, 3.67% to be deposited in Provident Fund A/C
No 01 along with Employees’ share of 12%
Contribution (contd.)

 Administration charges -
 @ 1.1% of the total wages/salary disbursed by deposit to A/C No 02,
 Employees Deposit Linked Insurance @ 0.5% of the total
wages/salary by deposit to A/C No. 21 and
 Administration of EDLI @ 0.01% of the wages/ salary by deposit to
A/C. No. 22.
 Duties of employer
 Employer to furnish information about:
(a) Ownership and names of responsible

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persons of the establishment.
(b) Declaration and nomination.
(c) Joining and leaving of service by the
members in form 5 and form 10 respectively
(d) Form 12A with monthly challans of deposit.
(e) Form 9 for details of employees.
(f) Form 3A/6A at the end of the financial year.
(g) Any other information as may be required
under Para 76 of the scheme
 Benefits to employees

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 Provident Fund Benefits
 Pension Benefits
 Death Benefits
Provident Fund Benefits
 Employer also contributes to Members’ PF @
3.67% (1.67% in case of sick industry - eg: beedi)

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 EPFO guarantees the Employer contribution and
Govt. gives a decent interest to PF
accumulations
 Member can withdraw from this accumulations
to cater financial exigencies in life - No need to
refund unless misused
 On resignation, the member can settle the
account. i.e., the member gets his PF contribution,
Employer Contribution and Interest
Pension
Pension toBenefits
 Member
 Pension to Family (on death of member)
 Scheme Certificate
 This Certificate shows the service & family details of
a member
 This is issued if the member has not attained the age
of 58 while leaving an establishment and he applies
for this certificate
 Member can surrender this certificate while joining
another establishment and the service stated in the
certificate is added with the service he is gaining from
the new establishment.
 After attaining the age of 50 or above, the member can
apply for Pension by surrendering this scheme
certificate (if total service is at least 10 years)
 This is a better choice than Withdrawal Benefit, that if
a member dies holding a valid scheme certificate, his
family will get pension (Death when NOT in service)
Pension benefit (contd.)
 Withdrawal Benefit
 if not eligible for pension, member may withdraw the amount accumulated in
his pension account
 the calculation of this amount is based only on (i) Last average salary and (ii)
Service (Not based on actual amount available in Pension Fund Account)

 No amount is taken from Member to give Pension to the Member.

Employer and Govt. contribute to Pension fund @8.33% and
@1.16% respectively
 EPFO guarantees pension to members, even if the Employer has
not contributed to Pension Fund.
 Pension calculation is similar to that of Govt. Employee
Death Benefits
 Provident Fund Amount to Family (or to Nominee)
 Pension to Family (or to Parent / Nominee)
 Capital Return of Pension
 Insurance (EDLI) amount to Family (or to Nominee)
 No amount is taken from Member for this facility. Employer contributes
for this.
 Nominee is basically determined as per the information submitted
by the member at this office through FORM-2
THE PLANTATION LABOUR ACT 1951

 AN ACT TO PROVIDE FOR THE WELFARE OF THE LABOUR, AND TO

REGULATE THE CONDITIONS OF WORK, IN PLANTATIONS
 It extends to the whole of India except the State of Jammu and
Kashmir
Applicability
 Applies to any land used or intended to be
used for growing tea, coffee, rubber,
cinchona or cardamom or any other plant
which measures 5 hectares or more and in
which 15 or more workers are employed on
any day of the preceding 12 months.
 The State Government by notification can
apply this law to any other land even if it
measures less than 5 hectares and employs
less than 15 workers.
Duties of the Employer
 Provision of:
 Drinking Water

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 Separate Toilets for Men and Women
 Medical facilities to the workmen and their family
 Canteen where 150 or more workers are employed
 Crèches where 50 or more women workers are
employed or where the number of children of
women workers is 20 or more
 Recreational facilities
 Educational Facilities where children between the
ages of six and twelve of workers employed in any
plantation exceed twenty five.
 Housing facility
 Welfare Officer where three hundred or more workers
are employed.
Hours of work and Limitations of
employment
 Hours of work – 48 hours per week which can be
extended to 54 hours with double the rate as
overtime wages
 Weekly holiday
 Daily intervals of rest
 Prohibition of employing women workers
between 7 pm and 6 am
 Annual Leave (with wages) @ 1 per 20 days
work
 Sickness and maternity benefits
 Employer to furnish Notice of Accident
 Employer to maintain a register of Accidents
THE INDUSTRIAL DISPUTES ACT, 1947

 An Act to make provision for the investigation and settlement of

industrial disputes, and for certain other purposes.

 It extends to the whole of India

Industrial dispute

 Any dispute or difference 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.
AUTHORITIES UNDER THIS ACT

 Works Committee
 Conciliation officers
 Boards of Conciliation
 Courts of Inquiry
 Labour Courts
 Tribunals
 National Tribunals
Works Committee

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 Where?: Establishments with 100 or more
workers
 Members: Equal number of
representatives of the Employer and
Employees
 Objective: promotion of good
relationship between employer and
employee(s)
Conciliation officers
 Appointed
by the appropriate
Government
 Duty: Settlement of industrial disputes.
 Nature : Appointed for a specified
area or for specified industries in a
specified area or for one or more
specified industries and either
permanently or for a limited period.
Boards of Conciliation

 Appointed by the appropriate Government as occasion arises for

settlement of disputes.
 Board shall consist of an independent Chairman and two or four
other members in equal numbers to represent the parties to the
dispute
Courts of Inquiry

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

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

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

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 National Tribunals are constituted by the Central Government for
the adjudication of industrial disputes which, in the opinion of the
Central Government, involve questions of national importance or
are of such a nature that industrial establishments situated in more
than one State are likely to be interested in, or affected by such
disputes.
Matters within the Jurisdiction of Labour Courts
(the II Schedule)

 1.The propriety or legality of an order passed by an

employer under the standing orders;
 2.The application and interpretation of standing order;
 3.Discharge or dismissal of workmen including re-
instatement of, or grant of relief to, workmen wrongfully
dismissed;
 4.Withdrawal of any customary concession or privilege;
 5.Illegality or otherwise of a strike or lock-out; and
 6.All matters other than those specified in the Third
Schedule.
Matters within the Jurisdiction of Industrial
Tribunals (the III schedule)

 1.Wages, including the period and mode of payment;

 2.Compensatory and other allowances;
 3.Hours of work and rest intervals;
 4.Leave with wages and holidays;
 5.Bonus, profit sharing, provident fund and gratuity;
 6.Shift working otherwise than in accordance with standing orders;
 III schedule (contd.)

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 7.Classification by grades;
 8.Rules of discipline;
 9.Rationalisation;
 10.Retrenchment of workmen and closure of establishment; and
 11.Any other matter that may be prescribed.
Prohibition of strikes and
lock outs

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 Not to strike without giving six weeks notice of strike and during the
pendency of any conciliation proceedings
 Not to declare lock-out without giving to the employees six weeks
notice of lock out and during the pendency of any conciliation
proceedings
 A strike or lock-out shall be illegal if it is commenced or declared in
contravention of the above.
 Not to support of any illegal strike or lock-out
LAY-OFF AND RETRENCHMENT

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

 a workman (other than a badli workman or a casual workman) who

has completed one year of continuous service under an employer
shall be paid Lay off compensation
 Lay off compensation shall be equal to fifty per cent of the wages
(Basic + DA)
 Lay off compensation need not be paid for the weekly holidays
which may intervene
Continuous Service
 An employee is in continuous service in a calendar
year provided he has worked for

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 190 days in case employee is employed below the ground and
 240 days in any other case.

The days he/she has been

laid off under an agreement or under the ID Act
or as permitted by the Standing Orders
on leave with pay
absent due to temporary disablement due to
employment injury
on maternity leave
shall be taken as worked for the calculation of
190/240 days.
 ub
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Workmen not entitled to Jha
compensation in certain cases
 When a worker refuses to accept alternative
employment in the same establishment or
another establishment owned by the
employer and situated in the same village or
town or within 5 a radius of miles of the
establishment.
 When a worker does not present himself for
work at the establishment at the appointed
time during normal working hours at least
once a day
 When such laying-off is due to a strike or
slowing-down of production on the part of
workmen in another part of the establishment
Retrenchment of workmen

Jha
Raghubar
 No workman who has been in continuous service for not
less than one year shall be retrenched without giving
one month’s notice (three months notice wherein not less
than 50 workers are employed) in writing indicating the
reasons for retrenchment or
 if no notice is given, wages in lieu of such notice.
 Retrenchment of workmen employed in an
establishment wherein not less than 50 workers are
employed requires permission from the appropriate
Govt.
Retrenchment Compensation

 Fifteen days average pay for every

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

 THIS IS APART FROM THE GRATUITY PAYABLE UNDER THE PAYMENT OF

GRATUITY ACT
Compensation to workmen in case of transfer
of undertakings

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 every workman shall be entitled to notice and
compensation as if the workman had been retrenched.
No compensation on transfer provided

 1 . the service of the workman has not been

interrupted by such transfer;
 2 . the terms and conditions of service applicable
to the workman after such transfer are not in any
way less favourable to the workman
 3 . the new employer takes in to account the
continuous service of the workman.
Notice to be given of intention to
closedown anywho
An employer undertaking
intends to close down an
undertaking shall give at least sixty days notice
(Ninety days wherein not less than 50 workers
are employed) to the appropriate government
stating clearly the reasons for the intended
closure of the undertaking:
 This section shall not apply to-
 (a) an undertaking in which less than fifty
workmen are or were employed, or
 (b) an undertaking set up for the
construction of buildings, bridges, roads, canals,
dams or for other construction work or
project.
Compensation to workmen in
case of closing down of
undertakings

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 Compensation be paid as if workmen are retrenched
 However no compensation is payable if the
establishment is closed down on account of unavoidable
circumstances beyond the control of the employer
 These shall not constitute
circumstances beyond the
control…
 financial difficulties (including financial losses); or
 accumulation of undisputed off stocks; or
 the expiry of the period of the lease or license granted to it; or
 in case where the undertaking is engaged in mining operations,
exhaustion of the minerals in the area in which operations are
carried on
Procedure for retrenchment and
re employment

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

 For re-employment, retrenched worker shall have preference over

other persons
RECOVERY OF MONEY DUE FROM
AN EMPLOYER (section 33 C of ID

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Act)
►Any sum due from the employer under a settlement or an award
is recoverable in the same manner as an arrear of land revenue
► Application by the employee to be received within ONE year.
► Any sum capable of being computed in terms of money shall be
recovered from the employer with the intervention of Labour
Court.
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UNFAIR LABOUR PRACTICES Jha
On the part of employers
 threatening workmen with discharge or dismissal, if
they join a trade union
 threatening a lock-out or closure, if a trade union is
organised
 granting wage increase to workmen at crucial
periods of trade union organisation, with a view to
undermining the efforts of the trade union at
organisation
 an employer taking an active interest in organising
a trade, union of his workmen
 Unfair-employer (contd.)
► To establish employer-sponsored trade unions of

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workmen
► discharging or punishing a workman, because he
urged other workmen to join or organise a trade
union
► discharging or dismissing a workman for taking
part in any strike (not being a strike which it
deemed to be an illegal strike under this Act)
► changing seniority rating of workmen because of
trade union activities
 Unfair-employer (contd.)
 refusing to promote workmen to higher
posts on account of their trade union
activities
 giving unmerited promotions to certain
workmen with a view to creating friction
amongst other workmen, or to undermine
the strength of their trade union
 discharging office bearers or active
members of the trade union on account of
their trade union activities
 Unfair-employer ub
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(contd.) Jha
 To discharge or dismiss workmen –
 by way of victimisation;
 by falsely implicating a workman in a criminal
case on false or fabricated evidence;
 on untrue allegations of absence without leave;
 in utter disregard of the principles of natural
justice in the conduct of domestic enquiry or
with undue haste;
 for misconduct of a minor or technical
character, without having any regard to the
nature of the particular misconduct or the past
record of service of the workman.
 Unfair-employer (contd.)
 To abolish the work of a regular nature being
done by workmen, and to give such work to
contractors as a measure of breaking a strike.
 To transfer a workman mala fide from one place
to another, under the excuse of following
management policy.
 To insist upon individual workmen, who are on a
legal strike to sign a good conduct bond, as a
precondition to allowing them to resume work.
 Unfair-employer (contd.)
► To show favoritism or partiality to one set of
workers regardless of merit.

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► To employ workmen as "badlis" casuals or
temporaries and to continue them as such for
years, with the object of depriving them of the
status and privileges of permanent workmen.
► To discharge or discriminate against any
workman for filing charges or testifying against an
employer in any enquiry or proceeding relating to
any industrial dispute.
 Unfair-employer (contd.)

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 To recruit workmen during a strike which is not an
illegal strike.
 Failure to implement award, settlement or
agreement.
 To indulge in acts of force or violence.
 To refuse to bargain collectively, in good faith with
the recognised trade unions.
 Proposing or continuing a lock-out deemed to be
illegal under this Act
UNFAIR LABOUR PRACTICES On the
part of workmen
 advise, support or instigate any strike deemed
to be illegal under this Act.
 coerce workmen to join a trade union or refrain
from joining any trade union,
 picket in such a manner that non-striking
workmen are physically debarred from entering
the work places
 indulge in acts of force or violence or
intimidation in connection with a strike against
non-striking workmen or against managerial
staff
 Unfair- employee (contd.)
 For a recognised union to refuse to bargain
collectively in good faith with the employer.
 To indulge in coercive activities against
certification of bargaining representative.
 To stage, encourage or instigate such forms of
coercive actions as willful "go slow", squat on
the work premises or "gherao" of any of the
members of the managerial or other staff.
 To stage demonstrations at the residences of
the employers or the managerial staff
members.
 Unfair- employee (contd.)

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 To motivate or indulge in willful damage to employer's property.
 To indulge in acts of force or violence or to hold out threats of
intimidation against any workman with a view to preventing him
from attending work.
The Trade Unions Act, 1926

 An act to provide for the registration of Trade Unions and in certain

respects to define the law relating to registered Trade Unions.
 It extends to the Whole of India
Registration

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 The minimum number of workers to form a registered Trade Union is
10% or 100 whichever is less, subject to a minimum of 7 workers.
 Ensure that the number of members does not fall down the above
requirement.
Sale Promotion Employees
(Conditions of Service) Act, 1976
 An Act to regulate certain conditions of service of sales promotion
employees in certain establishments, in the first instance, engaged
in pharmaceutical industry
 It extends to the whole of India
APPLICATION OF CERTAIN ACTS

 Provides for APPLICATION OF CERTAIN ACTS, such as Workmen's

Compensation Act, 1923, Industrial Disputes Act, 1947, Minimum
Wages Act, 1948, Maternity Benefit Act, 1961, Payment of Bonus
Act, 1965 and Payment of Gratuity Act, 1972 TO SALES PROMOTION
EMPLOYEES
THANK YOU