business laws related to hr.ppt

7/25/2019 Business Laws related to HR.ppt

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Prepared by,

T. Siva Kumar

Compiled from:Elements of Mercantile Law by N.D.Kapoor (2007),

http!!labo"r.nic.in!act!welcome.html

#ario"s postin$s in www.citehr.com


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LawWhat is law?Law includes all the rules & principles which regulate our

relations with other individuals & with the state.

b!ect o" law?To establish socio#economic !ustice and remove the

e$isting imbalance in the socio#economic structure.

%eed "or the nowledge o" law? 'gnorance o" law is no e$cuse.


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(ercantile)*usiness)+ommerci

al LawWhat is it mean? 't deals with contractual situations and the right &

obligations arising out o" mercantile transactionsbetween mercantile persons.

Sources o" *usiness Law?

nglish (ercantile lawStatute Law

-udicial decisions or the system o" precedents

+ustoms & usages


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The 'ndian +ontract ct,

/012Object?Branch of law which determines the circumstances

in which promises made by the parties to a

contract shall be legally binding on them.

+ontract 3 greement 4 n"orceablility by law5Legal obligation not a Social obligation6

greement 3 7er 4 cceptance 5'n genuineconsent6


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ssentials o" valid contract/. 7er and acceptance # 2 parties 8 one party maing the

o7er, other party accepting the o7er, terms o" o7er mustbe de9nite and the acceptance must also be according to

the mode prescribed and must be communicated to theo7eror.

2. 'ntention to create legal relationship

:. Law"ul consideration # something in return

;. +apacity o" parties #competent, ma!or, sound mind, notdis


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ssentials o" valid contract=. >ree and genuine consent 8 same mind on all the material

terms o" the contract

. Law"ul ob!ect 8 legal, moral, not opposed to public policy

1. greement not declared is void

0. +ertainty and possibility o" per"ormance8 not vague orinde9nite

@. Legal "ormalities 8 contract should be in writing


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WormenAs +ompensation

ct, /@2:>irst step towards social security o" wormen

The theory behind this act is that Bthe cost o" productshould bear the blood o" the wormenC

Object?To provide for the payment of compensation by certain

classes of employers to their workmen for injury byaccident.

%oteD Wormen who are covered under S' ct, /@;0 are notentitled to compensation under this ct as disablement anddependantsA bene9t is available to wormen under the "ormer act.


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Eisablement?

Eisablement means loss o" capacity to wor or tomove

't may result in loss or reduction o" his)her earningcapacity.

Eisablement may bePartial

Total

>urther it may bePermanent

Temporary


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mployerAs liability "or

compensation/. Personal in!ury2. ccupational Eisease

Compensationfor

Calculation inimumamount

Eeath =FG o" monthly wages H relevant age "actorgD ge / "actor 3 220.=;, ge = "actor 3@@.:1

Is. 0F,FFF

Permanent totaldisablement

FG o" monthly wages H relevant age "actor Is. @F,FFF

Permanent partialdisablement

G loss o" earning capacity H relevant age"actor

Temporarydisablement 5total &partial6

2=G o" monthly wages shall be payable everyhal" month till the disablement lasts

%oteD Where the monthly wages o" worman e$ceed Is. ;FFF, his monthlywages shall be deemed to be Is.;FFF only.


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Trade Jnions ct, /@2Trade Jnion 8 Bn association o" worers in a

particular cra"t or industryC and now it symbolie

WorersA right to organieTheir right to press their demands collectively and to go

on strie i" their demands are not accepted

Object?To regulate the conditions governing the

registration of trade unions

Obligations imposed upon a registered trade unionand

!ights " liabilities of registered trade unions


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'ndian Partnership ct, /@:2 contract o" uberrimae 9dei# Butmost good "aithC i.e partnershipcontract must run with mutual trust and con9dence

(inD 2 competent persons

(a$D on baning business should not e$ceed /F, any other

business not e$ceeding 2FPro9t must be distributed in Bagreed ratioC

Eocuments which contains the agreement is called BPartnershipEeedC and it contains nature o" business,

principal place o" business, name and address o" the partners,

management,

accounts

Eeed must be duly stamped as re


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Payment o" Wages ct, /@:Object?To avoid with holding wages# delays in paying wages " making

unreasonable deductions out of wages.

This ct is applicable to persons whose wages does not e$ceed Is. =FF permonth 52FF=6 or such other higher sum which, on the basis o" 9gures o" the+onsumer $penditure Survey published by the %ational Sample Surveyrganisation, the +entral overnment may, a"ter every 9ve years, by noti9cationin the Mcial aette.

Wage period 8 shall not e$ceed / month

Time o" payment o" wagesN/FFF persons 8 be"ore the e$piry o" the 1 thday o" the "ollowing wage period

O/FFF persons # be"ore the e$piry o" the /F thday o" the "ollowing wage period

Termination o" employment 8 be"ore 2ndworing day "rom the terminated day

Wages to be paid on a woring day


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Eeductions "rom wages(edium o" payment o" wages 8 current coin or currency

notes or both, a"ter obtaining written authoriation o" theemployed person, payment can be made either by che


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(aintenance o" registers &

recordsvery employer shall maintain registers & records

giving the "ollowing particulars o" the persons

employed by himDthe wor per"ormed by them

the wages paid to them

the deductions made "rom their wages

the receipts given by them


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The 'ndustrial mployment5Standing rders6 ct, /@;

Object?To re$uire employers in industrial establishments

to de%ne with su&cient precision the conditions ofemployment under them " to make the saidconditions known to workmen employed by them.


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(atters to be provided in Standing

rders+lassi9cation o" wormen

(anner o" intimating to wormen about periods & hours o" wor,holidays, pay days & wage rates

Shi"t woring

ttendance & late coming+onditions o" procedure in applying "or, and the authority which

may grant leave & holidays

Ie


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Procedure "or +erti9cation o" Standing

orders


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The 'ndustrial Eisputes ct,

/@;1Object?

To secure industrial peace *y preventing & settling industrial disputes between the

employers & wormen *y securing & preserving amity & good relations between the

employers & wormen through an internal Wors +ommittee

*y promoting good relations through an e$ternal machineryo" conciliation, +ourts o" 'n


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What is 'ndustrial dispute?

't means any dispute or di7erence betweenemployers & employers

employers & wormen

wormen & wormen, which is connected with

a6 The employment or non#employment

b6 The terms o" employment

c6 The conditions o" labor o" any person

't includes both individual & collective disputes


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'mportant TermsLay o7 8 >ailure)Ie"usal)'nability o" an employer to give

employment to a worman due to

Shortage o" coal, power or raw material.

ccumulation o" stocs.

*readown o" machinery.%atural calamity.

Loc out 8 Temporary closing o" a place o" employment or

suspension o" wor or re"usal by employer 5mployerAs weapon6

+losure 8 +losing the business due to actual loss or

apprehended lossIetrenchment 8 mployees terminated on account o" surplus

labor

Strie 8 +essation o" wor by wormen

Jn"air labor practices


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+onciliation (achineryWor committees

+onciliation Mcer

*oard o" +onciliation+ourts o" 'n


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>actories ct, /@;0>actory means any premises where in a

manu"acturing process

/F or more persons are engaged i" power is usedor

2F or more persons are engaged i" power is notused

Object?

To protect children " to provide for somehealth " safety measures.


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State overnment ) +hie"

'nspector/. Site pproval "or a "actory be"ore it is constructed

2. Submission o" plans o" >actories

:. Iegistration & Licensing o" >actories

;. ppeal to State)+entral ovt within :F days i" permissionis re"used by +hie" 'nspector)State ovt respectively

=. %otice by the occupier %ame & address o" the "actory, owner & occupier

ddress "or communication

%ature o" manu"acturing process

Total rated horsepower

%ame o" the manager

%o. o" worers liely to be employed etc


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ealth o" worers+leanliness

Eisposal o" wastes & eQuents

Rentilation & Temperature

Eust & "ume

rti9cial humidi9cation

vercrowding

Lighting

Erining water

Latrines & Jrinals

Spittoons


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Sa"ety o" worers>encing o" machinery

Wor on near machinery in motion

mployment o" young persons on dangerous machine

Striing gear & devices "or cutting o7 powerSel" acting machines

+asting o" new machinery

Prohibition o" employment o" women & children near cottonopener

oists & Li"ts

Li"ting machine, chains, ropes & li"ting tacles

Ievolving machinery


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Sa"ety o" worersPressure plant

>loors, stairs and means o" access

Pits, sumps, openings in oors etc

$cessive weightsProtection o" eyes

Precautions against dangerous "umes

Precautions regarding the use o" portable electric light

Precautions against e$plosive or inammable dust, gas, 9re etc.

Power to re


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Wel"are o" worersWashing "acilities

>acilities "or storing & drying clothes

>acilities "or sitting

>irst aid appliances

+anteens

Shelter, rest rooms & lunch rooms

+reches 5O:F women worers6

Wel"are oMcers 5O=FF worers6


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Woring hours%ot more than ;0hours per wee or @ hours per day

'ntervals o" rest 8 9$ed by "actory

Women employees 8 ( to 1P(

rdinary rate o" wages 3 *asic wage 4 llowances

$tra wages "or overtime 8 wages at twice the ordinary rate

nnual leave with wages / day "or every 2F)/= days o" wor per"ormed in case o" adult)child

pplication "or leave 8 atleast /= days be"ore "or private, :F days

"or public utility service

(aternity leave not e$ceeding /2 wees


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mployeesA State 'nsurance

ct, /@;0Object?The 'ct is a piece of social security legislation conceived

as a means of e(tinction of the evils of the society#namely# want# disease# dirt# ignorance and indigence

pplicability o" the ct "or employees is Is. /FFFF)# per month5ross Salary6.

*ene9ts?Sicness bene9t(aternity bene9tEisablement bene9tEependantsA bene9t(edical bene9t>uneral e$penses


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mployee?ny person employed "or wages in or in connection with

the wor o" a "actory or establishment

Eirectly employed by the principal employer

mployed through an intermediate employer

+ontract employees pprentice, not being an apprentice engaged under the

pprentices ct, /@/ or under Standing rders

Wages?ll remuneration paid in cash to an employee e$cept

employer contribution to pension & provident "unds,travelling allowance, special e$penses paid and gratuitypayable on discharge


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+ontribution?+ontribution 8 Sum o" money payable to S' +orporation by the

principal employer & employee

+ontribution period 8 (ust not e$ceed consecutive months

mployee +ontribution is e$emption "or employees whose wagesare N Is.=F per day

Ee"ault in payment o" contribution 8 to pay simple interest at/2G or more per annum, till the date o" its actual payment

ll disputes arising out o" this are resolved by mployeesA'nsurance +ourt

Contribution

by

!ate of Contribution

mployer sum e


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(inimum Wages ct, /@;0

Object?To secure the welfare of the workers in a

competitive market by %(ing the minimum rates of

wages in certain employments

Scheduled employment 8 Worers in mines,plantation, transport, mills etc

ppropriate State overnment shall 9$minimum rate o" wages "or time worminimum rate o" wages "or piece worguaranteed time rate

overtime rate


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>i$ation & Ievision o" wages>i$ation & revision o" minimum wages are

done by appropriate overnment through

either o" the 2 methods/. ppointment o" committees & sub#committees

as it considers necessary to hold in


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mployeesA Provident >und &(iscellaneous Provisions ct,/@=2Object?

)t is a social security measure meant to induce employees tosave a portion from their present earnings for a rainy day

uthoried Mcer? +entral P> +ommissioner

dditional +entral P> +ommissioner

Eeputy P> +ommissioner

Iegional P> +ommissioner +ontribution is made to

mployeesA Provident >und Scheme

mployeesA Pension Scheme & >und

mployeesA Eeposit Lined 'nsurance Scheme 5EL'6 & >und


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+ontributionS' is covered to employees whose wages are upto

Is./F,FFF per month

*asic Salary 3 *asic Wages 4 Eearness llowance includingcash value o" any "ood concession 4 Ietaining llowance

*mployee Contribution *mployer+s Contribution

/2G o" *asic Salary /2G o" *asic Salary 4 /./G

Pension >undD 0.::G o" *asic Salaryor Is.=;/ whichever is lesser

Provident >undD :.1G o" *asicSalary

dministrativecharges

/./FGo" *asicSalary

EL' >und

F.=FG o" *asic

Salarydministrative


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+ompany ct, /@=

+ompany # B an association o" many persons whocontribute money or moneyAs worth to a commonstoc and employ it in some common trade orbusiness5"or common purpose6 and who share thepro9t or loss arising there "romC


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+haracteristics o" the

company/. Separate legal entity

2. Limited liability

:. 8limited by shares

;. 8limited by guarantee=. Perpetual succession

. +ommon seal

1. Trans"erability o" shares

0. Separate property

@. +apacity to sue


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Company ,s -artnership

Company-artnership

Iegulated under+ompanies ct /@= Partnership ct /@:2

$its a"ter registrationunder +o.ct /@=

Iegistration not mandatory

(anaged by Eirectors,

*oard o" Eirectors

very partner should tae

part in the management

Property and rights isnontrans"erable toshareholders

Trans"erable to any or allpartners


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Shares are trans"erable whenthe trans"eree becomes themember

Shares cannot be trans"erredwithout the concern o" allpartners

Shareholders is not theagenthas no power

ach partner is an agenthaspower

(in#2

(a$# baning /F

others 2F

*ound by law and auditedannually

%o statutory provisions

nly it can be dissolved5Wound by provisions o"companies ct /@=6

Eissolved by death)insolvency o" partner orwound i" it is "or 9$ed period.

Members Public Pvt

Min 7 2

Max No limit 50

Company ,s -artnership


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-ublic Co. ,s -rivate Co.

-ublic Co. -rivate Co.

(in members# 1 (in# 2

(a$ members # no limit (a$ # =F

>ile with registrar to act asEirector

%o restriction

'nvites public to subscribe "orshares ) issues

%o public invitation

Uuorum members 8= 2(anagerial remunerationcannot e$ceed //G o" %P

%o restrictions

%o privileges Special priviliges


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Eocuments to be 9led with Iegistrar "or

getting +erti9cate o" 'ncorporation (emorandum o" ssociation signed by the subscribers

>undamental document

Lays down the area o" operation

Iegulates the e$ternal a7airs o" the co in relation to outsiders

rticles o" ssociation i" any5public limited co limited byshares need not have its own Iules and regulations and bye#laws "or the internal management o" the

a7airs o" a company.

greement between the +o and the individual "or the

appointment o" whole time Eirector or (anager List o" directors agreed to act as director with their written

consent

Eeclaration relating to companies act and "ormalities relatedto registration


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mployment $changes 5+ompulsory

%oti9cation o" Racancies6 ct, /@=@Object?To provide for the compulsory noti%cation of

vacancies to employment e(changes.

'ct is applicable to vacancies in posts o" a technical and scienti9cnature carrying a basic pay V Is.2/F per month occurring in establishmentsor to be circulated to the mployment $changes outside the State or Jnion

Territory

'ct is not applicable to any employment in agriculture, horticulture etc

domestic service,

the total duration o" which is less than three months,

to do unsilled oMce wor,

connected with the sta7 o" Parliament.


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orm and manner of noti%cation of vacancies

5/6 %ame and address o" the employer

526 Telephone number o" the employer, i" any 5:6 %ature o" vacancy D#

5a6 Type o" worers re


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Time limit for noti%cation of vacancies " selection tleast /= days be"ore the applicants will be interviewed or

tested.

mployer to "urnish the result o" selection within /= days.

/ubmission of !eturnsUuarterly in >orm I#' # Within :F days by :Fth-une, :/st(arch, :Fth

September & :/stEecember

*'%%'L Ieturn >orm I#'' 8 Within :F days o" the due date as

noti9ed in the Mcial aette


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pprentices ct, /@/

Bn apprentice is bound to obey his master in allhis law"ul commands, tae care o" his property and

promote his interest, endeavor to learn his trade orbusiness, & per"orm all the conditions o" hiscontract not contrary to law. e must not leave hismasterAs service during the term o" hisapprenticeshipC

Object?To provide for the regulation " control of training of

apprentices


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Types

Technician 5Rocational6 pprentice Jndergo training "or 2 years inorder to hold a certi9cate in

vocational course a"ter completing secondary stage o" schooleducation, recognied by ll 'ndia +ouncil o" Technical ducation

Trade pprentice Jndergo apprenticeship training in any trade or business

Uuali9cations "or being an

apprentice /; years o" age or above satis9es the standard o" education & physical 9tness as prescribed

"or apprenticeship training


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Total number o" hours)wee 3 ;2 to ;0 5( to /FP(6

mployer shall loo a"ter

7er & cceptance o" employmentPractical & basic training o" apprentices & related

instructions

ealth, Sa"ety & Wel"are o" apprentices

Leave ) vertime hours

Payment o" stipend

+ompensating "or in!ury during training

olding test & granting certi9cate

Iecords, settlement o" disputes

mployerAs responsibilities


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(aternity *ene9ts ct, /@/

Object? To regulate the employment of women in certain

establishments for certain periods before " after child birth "to provide for maternity bene%t " other certain bene%ts

Wage? Iemuneration in cash 4 +ash llowances including E & I 4

'ncentives 4 (oney value o" "ood grains

(aternity bene9t is a payment to a women 5should have woredatleast 0F days in the /2 months immediately proceeding the date

o" her e$pected delivery 6 at a rate o" the average daily wage "orthe period o" her actual absence

(aternity bene9t is given "or a ma$imum period o" /2 wees, o"which not more than wees shall precede the date o" here$pected delivery


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Liabilities o" mployerPregnant women are prohibited to wor in establishments

during a period o" wees immediately "ollowing the day o"her delivery or her miscarriage

mployer is liable to pay maternity bene9t to her nominee orthat woman even in case o" death o" that woman)childrespectively

2 nursing breas per day shall be allowed until the childattains the age o" /= months

wees leave shall be allowed "or miscarriage on production

o" the prescribed proo"


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Payment o" *onus ct, /@=*onus 8 Bgratuity to wormen beyond their wagesC

Object? To maintain peace " harmony between labor " capital by

allowing the employees# in recognition of their right# to sharein the prosperity of the establishment re0ected by thecontributions made by capital# management " labor

minimum bonus o" 0.::G o" the 5Salary 4 E6 or Is. /FFwhichever is higher # paid to all employees whose salary is up to

Is.:=FF per month & wored "or not less than :F days "or thatyear

*onus is no longer lined with production & pro9tability and so itis a statutory liability "or an employer on completion o" = years

a"ter /stccounting year even i" there is no pro9t

F or 1G o" available surplus is allocated "or bonus


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+ontract Labour 5Iegulation &

bolition6 ct, /@1FObject?

To regulate the employment of contract labour in certainestablishments and to provide for its abolition in certaincircumstances and for matters connected therewith.

Liability o" Principal mployerTo ensure provision "or canteen, restrooms, suMcient supply o" drining

water, latrines and urinals, washing "acilities.

Principal employer entitled to recover "rom the contractor "or providing

such amenities or to mae deductions "rom amount payable

very contractor shall maintain (uster Ioll, Iegister o" wages, Iegister o"Eeductions, Iegister o" vertime, Iegister o" >ines, Iegister o" dvances,Wage slip & display the abstract F" rules & ct in nglish & regionallanguage.


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Iegistration o" stablishment

Principal employer employing 2F or more worers throughthe contractor or the contractor5s6 on deposit o" re


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Licensing o" +ontractorngaging 2F or more than 2F worers and on deposit o"

re


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Payment o" ratuity ct,

/@12 Principle? *y "aith"ul service over a long period, the employee is entitled to claim a

certain amount as a retirement bene9t

ratuity is paid out at the time o" superannuation 5i" you retire at the

age o" =06, when you retire 5at any other age6 or resignation, and in theevent o" your death or being rendered disable because o" an accident orillness. Xou need to have at least = "ull years o" service with anemployer to


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pplication "or gratuityn employee or his)her nominee shall write to the employer

within :F days "rom the date the gratuity become payableor shall be applied be"ore :F days i" date o" superannuation

is nown

'" it is not paid by the employer within :F days, then he shallpay simple interest as prescribed by +entral overnment

The grievances are redressed by controlling authority andthe collector shall recover the gratuity amount 4 compoundinterest "rom the employer


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Penalties'" an employer 8

mits or "ails to produce any register, muster#roll, any in"ormation or otherdocument relating to the employment o" worers # he shall be punishablewith simple imprisonment "or a term which may e$tend to / month or with

9ne which may e$tend to Is./F,FFF or with both

(aes any recruitment or discrimination in wages in contravention o" theprovisions o" this ct # he shall be punishable with 9ne o" Is./F,FFF toIs.2F,FFF or with imprisonment "or a term o" : months to / year or withboth "or the 9rst o7ence, and with imprisonment which may e$tend to 2

years "or the second and subse


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Pro"essional Ta$ ct, /@1Object?To provide for the levy " collection of ta( on

professionals # trade callings " employment in thestate.

The set o" pro"essional ta$ slabs in 'ndia are di7erent "or all the 20 states in'ndia and some o" the states have "ormulated di7erent pro"essional ta$ slabs"or men, women, and the senior citiens o" the respective states.

*g: Tamil 2adu3s Ta( /labs: al" yearly basis

Eate o" payment /=th o" succeeding month 4 additional = days grace

4alf yearly )ncome onthly -rofessional Ta(

Less than Is.2/FFF %il

*etween Is.2/FF/#Is.:FFFF Is.1=*etween Is.:FFF/#Is.;=FFF Is./00

*etween Is.;=FF/# Is.FFFF Is.:@F

*etween Is.FFF/# Is.1=FFF Is.=0=

*eyond Is.1=FF/ Is.0/F


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'nter#state (igrant Wormen

5Iegulation o" mployment &+onditions o" Service 6 ct, /@1@Object?

To regulate the employment of inter5/tate migrantworkmen and to provide for their conditions ofservice and for matters connected therewith.

'nter#State migrant worman

ny person who is recruited by or through a contractor in one Stateunder an agreement or other arrangement "or employment in anestablishment in another State, whether with or without thenowledge o" the principal employer in relation to suchestablishment


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Euties o" +ontractors

To "urnish prescribed particulars to the speci9ed authority in State "romwhich an inter#State migrant worman is recruited and in the State in whichsuch worman is employed, within /= days "rom the date o" recruitmentand also to intimate i" there are any changes in employment

To issue to every inter#State migrant worman, a pass8boo aM$ed with apassport sie photograph o" the worman and indicating in indi)Iegionaland nglish languages # 5i6 the name and place o" the establishment wherein the worman is employed

5ii6 the period o" employment

5iii6 the proposed rates and modes o" payment o" wages

5iv6 the displacement allowance payable

5v6 the return "are payable to the worman on the e$piry o" the period o" hisemployment and in such contingencies as may be prescribed and in such other

contingencies as may be speci9ed in the contract o" employment

5vi6 deductions made and others.


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Wages, Wel"are & other

"acilitiesThe wage rates, holidays, hours o" wor and other conditions o" service o" aninter#State migrant worman shall remain the same as any other worman inthat establishment and (inimum Wages ct, /@;0 is also applicable to them

%on#re"undable displacement allowance 3 =FG o" the monthly wages payable

to him or Is.1= whichever is higher

-ourney allowance V the "are "rom the place o" residence o" the inter#Statemigrant worman in his State to the place o" wor in the other State

ther "acilities such as suitable conditions o" wor, residential accommodation,prescribed medical "acilities 5"ree o" charge6, protective clothing are alsoapplicable

To ensure regular payment o" wages, e


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+hild Labour 5Prohibition and

Iegulation6 ct, /@0Object?To prohibit the engagement of children in certain

employments and to regulate the conditions of work or

children in certain other employments.

+hild means a person who has not completed his "ourteen yearso" age.

Penalties Riolations under Section#: shall be

punishable with imprisonment # : months to / year or

with 9ne o" Is./F,FFF to Is.2F,FFF or with both.

+ontinuing o7ence shall be punishable with imprisonment "or a term o" monthsto 2 years.


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Jnorganied Worers Social

Security ct, 2FF0Object?To provide for the social security and welfare of

unorganised workers and for other mattersconnected therewith or incidental thereto.

Jnorganied worers means a home based worer, sel" employedFr a wage worer in the unorganied sector & includes a worer inthe organied sector who is not covered under


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The +entral overnment "ormulated schemes "or di7erent

sections o" unorganied worers on matters relating to li"e and disability cover

health and maternity bene9ts

old age protection

any other bene9t as may be determined by the +entralovernment

The State overnment "ormulated schemes "or unorganiedworers relating to

provident "und,

employment in!ury bene9ts, housing,

educational schemes "or children,

sill upgradation,

"uneral assistance and

old#age homes


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