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A BRIEF CHECK LIST OF
LABOUR LAWS
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APPRENTICES ACT, 1961CHECKLIST
Object of the ActPromotion of new manpower at
skills. Improvement/refinement of old skills through theoretical and
practical training in number of trades and occupation
IndustryIndustry means any industry, orbusiness or in which any trade,
occupation or subject/field inengineering or technology or any
vocational course may be specifiedas a designated trade
Contract of Apprenticeship To contain such terms andconditions as may be agreedto by the apprentice, or his
guardian (in case he is aminor and em lo ers.
Termination of Apprenticeship
On the expiry of the period of Apprenticeship training.
On the application by either of the parties to the contract tothe Apprenticeship Advisor
Sec. 6
Payment to Apprentices The employer to pay such stipend ata rate of not less than the prescribedminimum rate as may be specified.
Sec. 6
Obligations of Apprentice To learn his trade conscientiously, diligently. To attend practical and instructional classes regularly. To carry out all lawful orders. To carry out his contractual obligations.Health safety & Welfare measures for Apprentices
As per Factories Act or Mines Act as the case may bewhen undergoing training.
Hours of work 42 to 48 in a week while on theoretical training.42 in a week while on basic training.42 to 45 in a week in second year of training.As per other workers (in the third year).Not allowed to work between 10 PM to 4 AM unlessapproved by Apprenticeship Advisor.
Leave and HolidaysCasual leave for the maximum period of 12 days in a year.
Medical leave for the maximum period of 15 days and theaccumulated leave upto 40 days in a year.Extraordinary leave upto a maximum period of 10 days ina year.
Applicability of theAct
Areas and industries asnotified by the Central
GovernmentSec. 1
ApprenticeshipAdvisor
Central ApprenticeshipAdvisor when
appointed by Central
Qualification for being trained as an ApprenticeA person cannot be an apprentice in any designatedtrade unless
He is not more than 14 years of age;He satisfies such standard of educationAnd physical fitness asMay be prescribed. Sec. 3
Conditions for Novation of Contract of Apprenticeship
There exists an apprenticeshipcontract.
The employer is unable to fulfilhis obligation.
The approval of theApprenticeship Advisor isobtained.
Agreement must beregistered with theA renticeshi
Period of Apprentic
eship Training to beDetermined by
Obligations of employers
To Provide theapprentice withthe training inhis trade.
To ensure that
a person dulyqualified isplaced incharge of thetraining of theapprentice.
To carry outcontractualobli ations.
Number of Apprentices inDesignated Trade
To be determined by TheCentral Government after
consulting the CentralApprenticeship Council
Employers liability topay compensation
for injuryAs per provisions of
Workmens
Offences & PunishmentImprisonment of a term
upto 6 months or withfine when employer (I)
engages as anapprentice a person
who is not qualified forbeing so engaged or(ii) fails to carry out
the terms andconditions of a
contract of apprenticeship, or (iii)contravenes the
provisions of the Act
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Licensing of ContractorEngaging 20 or more than
20 workers and ondeposit of required feein Form IV.
Valid for specifiedperiod. Sec.12, Rule 21
CONTRACT LABOUR (REGULARATION & ABOLITION) ACT,1970& THE RULESCHECKLIST
ApplicabilityEvery establishment in which 20 or
more workmen are employed or
were employed on any day of thepreceding 12 months as contractlabour.
Every contractor who employs or whoemployed on any day of thepreceding twelve months 20 ormore workmen.
Sec. 1
Object of the Act
To regulate theemployment of contract labour in
certain establishmentsand to provide for its
abolition in certaincircumstances and for
matters connectedtherewith.
Prohibition of Employment of Contract Labour
Only by the appropriate Governmentthrough issue of notification afterconsultation with the Board (and not
Courts) can order the prohibition of employment of contract labour.
Sec. 10
Registers of ContractorsPrincipal employer
To maintain a register of contractor inrespect of every establishment inForm XII.Contractor
Rule 74 To maintain register of workers foreach registered establishment in FormXIII.
To issue an employment card to eachworker in Form XIV.
To issue service certificate to everyworkman on his termination in FormXV. Rules 75, 76 and 77
Muster Roll, Wages Register, Deduction Register and Overtime Registerby Contractor
Every contractor shallMaintain Muster Roll and a Register of Wages in Form XVI and Form XVII
respectively when combined.Register or wage-cum-Muster Roll in Form XVII where the wage period is a
fortnight or less.Maintain a Register of Deductions for damage or loss, Register of Fines and
Register of Advances in Form XX, from XXI and Form X XII respectively.Maintain a Register of Overtime in Form XXIII.
To issue wage slips in Form XIX, to the workmen at least a day prior to thedisbursement of wages.
Obtain the signature or thumb impression of the worker concerned against the
entries relating to him on the Register of wages or Muster Roll-Cum-WagesRegister.When covered by Payment of Wages Act, register and records to be maintained
under the rulesMuster Roll, Register of wages, Register of Deductions, Register of Overtime,
Register of Fines, Register of Advances, Wage slip.Rule 79
To display an abstract of the act and Rules in English and Hindi and in thelanguage spoken by the Majority of workers in such forms as may be approvedby appropriate authority
Rule 80 To display notices showing rates of wages, hours of work, wage period, dates of
payment, names and addresses of the inspector and to send copy to theinspector and any change forwithwith
Rule 81
Registration of Establishment
Principal employer
employing 20 or moreworkers through thecontractor or thecontractor(s) on deposit of required fee in Form 1
Sec. 7
Revocation of Registration
When obtained byMisrepresentation orsuppressionOf material facts etc. afteropportunity to theprincipalemployer
Sec. 9
Revocation or Suspension &Amendment of Licences
When obtained by misrepresentation orsuppression of material facts.
Failure of the contractor to comply withthe conditions or contravention of Actor the Rules. Sec.14
Welfare measures to be taken by the ContractorContract labour either one hundred or more employed by a
contractor for one or more canteens shall be provided andmaintained.
First Aid facilities.Number of rest-rooms as required under the Act.Drinking water, latrines and washing facilities. Sec. 16 & 17
Laws, Agreement or standingorders inconsistent with the
Act-Not PermissibleUnless the privileges in the contractbetween the parties are morefavourable than the prescribed in theAct, such contract will be invalid andthe workers will continue to get morefavourable benefits.
Sec. 20
Liability of Principal Employer To ensure provision for canteen, restrooms, sufficient supply of
drinking water, latrines and urinals, was hing facilities.Principal employer entitled to recover from the contractor forproviding such amenities or to make deductions from amountpayable. Sec. 20
PENALTIES
Sec. Offence PunishmentSec. 22 Obstructions For obstructing the inspector or failing to produce registers etc.
- 3 months imprisonment or fine upto Rs.500, or both.Sec.23 Violation For violation of the provisions of Act or the Rules,imprisonment of 3
Months or fine upto Rs.1000. On continuing contravention,
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EMPLOYEES PROVIDENT FUNDS & MISC.PROVISIONS ACT, 1952
& THE SCHEMESCHECKLIST
Applicability Every establishment which is factory engaged in any industry
specified in Schedule 1 and in which 20 or more persons areemployed.
Any other establishment employing 20 or more persons whichCentral Government may, by notification, specify in this behalf.
Any establishment employing even less than 20 persons can be
EligibilityAny person who is employedfor work of an establishment
or employed throughcontractor in or in connection
with the work of an
Clarification aboutContribution
After revision in wage ceiling fromRs.5000 to Rs.6500 w.e.f. 1.6.2001per month, the government wil lcontinue to contribute 1.16% uptoth e ac tu al w age o f m axim umRs.6500 pe r m onth to wardsEmployees Pension Scheme. Theemployers share in the PensionSc he me w ill be R s.5 41 w.e.f.1.6.2001.Under Employees Deposit-LinkedInsurance Scheme the contribution
@ 0.50% is required to be paidupto a maximum limit of Rs.6500. The employer also will payadministrative charges @ 0.01%on m axim um lim it of R s.65 00whereas an exemptedestablishment will pay inspectioncharges @ 0.005% on the totalwages paid.Notes:
The above clarification is given bytaking wages upto a maximum of Rs.6500 towards wage (basic+DA).Since an excluded employee i .e .
drawing wages more than Rs.650can also become member of tFun d and t he Sch emes o n jo irequest and if, for instance, sucan employee is getting Rs.10,00per m on th , his s ha re t ow arprovident fund contribution will b
BenefitsEmployees covered enjoy a benefit of Social Security in the form of an unattachable and unwithdrawable (except in severely restrictedcircumstances like buying house, marriage/education, etc.) financial
nest egg to which employees and employers contribute equallythroughout the covered persons employment. This sum is payable normally on retirement or death. Other Benefitsinclude Employees Pension Scheme and Employees Deposit Linked
Payment of Contribution The employer shal l pay the
contribution payable to theEPF, DLI and Em ployeesPension Fund in respect of themember of the Employees
Pension Fund employed by himdirectly by o r through acontractor.
It shall be the responsibility of the principal employer to paythe contributions payable tothe EPF, DLI and EmployeesPension Fund by h imsel f inre spe ct of th e e mplo ye esdirectly employed by him andalso in respect of theemployees employed by orthrough a contractor.
SCHEME EMPLOYEES EMPLOYERS CENTRALGOVTS
Provident FundScheme
12%
Amount > 8.33%(in casewherecontribution is 12% of 10%)
10% (in case of certainEstablishmentsas per detailsgiven earlier)
NIL
InsuranceScheme
NIL 0.5 NIL
Damages
Less than 2 months .@ 17% per
annum
Two months and above but less than upto four months
.@22% per annum
Penal ProvisionLiable to be arrested without warrant being a cognisable offence.
Defaults by employer in paying contributions or
inspection/administrative charges attract imprisonment upto 3 years
and fines upto Rs.10,000 (S.14). For any retrospective application, all
dues have to be paid by employer with damages upto 100% of
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EMPLOYEES STATE INSURANCEACT, 1948 & the SCHEME
CHECK LISTApplicability of the Act &Scheme
Is extended inarea-wise tofactories usingpower andemploying 10 ormore persons andto non-powerusingmanufacturingunits andestablish-mentsemploying 20 ormore person uptoRs.7500/- permonth w.e.f.1.4.2004. It hasalso been extend-ed upon shops,hotels,restaurants, roadsmotor transportundertakings,equip-mentmaintenance staff in the hospitals.
Coverage of employees
Drawing wagesupto
Rs.10000/- permonth
engaged eitherdirectly or thru
contractor
Rate of Contribution of
the wages
Employers4.75%
Employees1.75%
THE ESI SCHEME TODAY No. of implemented Centres 677No. of Employers covered2.38lacsNo. o f Insured Pe rson s 8 5 lacsNo. of Beneficiaries 330lacsNo. of Regional Offices/SROs26No. of ESI Hospitals/Annexes183No. of ESI Dispensarie s 1 45 3No. of Panel Clinics 2950Manner and Time Limit
for making Payment of contribution
The total amount of contribution(employees share and employers share)is to be deposited with the authorisedbank through a challan in the prescribedform in quadruplicate on or before 21 st of month following the calendar month inwhich the wages fall due.
Benefits To the employees under the Act
Medical, sickness, extendedsickness for certain diseases,enhanced sickness, dependentsmaternity, besides funeralexpenses, rehabilitationallowance, medical benefit toinsured person and his or herspouse.
WAGES FOR ESI CONTRIBUTIONSRegisters/files to be maintained by the employers
To be deemed aswages
Basic pay Dearness allowance House rent allowance City compensatory
allowance Overtime wages (but
not to be taken intoaccount fordetermining the
coverage of anemployee) Payment for day of
rest Production incentive Bonus other than
statutory bonus Night shift allowance Heat, Gas & Dust
allowance Payment for
unsubstituted holidays Meal/food allowance Suspension allowance Lay off compensation
NOT to be deemed aswages
Contribution paid bythe employer to anypension/provident fundor under ESI Act.
Sum paid to defrayspecial expensesentailed by the natureof employment Dailyallowance paid for theperiod spent on tour.
Gratuity payable ondischarge.
Pay in lieu of notice of retrenchmentcompensation
Benefits paid under theESI Scheme.
Encashment of leave Payment of Inam which
does not form part of the terms of employment.
Washing allowance forlivery Conveyance Amount
towards
Contribution period
1 st April to 30 th September.
1 st October to31 st March
Contributionperiod
If the person joinedinsurance employmentfor the first time, say on5 th January, his firstcontribution period willbe from 5 th January to31 st March and hiscorresponding firstbenefit will be from 5 th October to 31 st December.
Penalties
Different punishment have been prescribed fordifferent types of offences in terms of Section
85: (I) (six months imprisonment and fine
Rs.5000), (ii) (one year imprisonment and fine),
and 85-A: (five years imprisonment and not less
to 2 years) and 85-C(2) of the ESI Act, which are
self explanatory. Besides these provisions,
action also can be taken under section 406 of
the IPC in cases where an employer deducts
contributions from the wages of his employeesbut does not pay the same to the corporation
which amounts to criminal breach of trust.
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FACTORIES ACT, 1948CHECK LIST
OFFENCE PENALTIESSec.92 to
For contravention of the Provisions of the Act orRules
Imprisonment upto 2 years or fine upto Rs.1,00,000 orboth
On Continuation of contravention Rs.1000 per day On contravention of Chapter IV pertaining to safety
or dangerous operations. Not less than Rs.25000 in case of death. Not less than Rs.5000 in case of serious injuries.
Subsequent contravention of some provisions Imprisonment upto 3 years or fine not less thanRs.10,000 which may extend to Rs.2,00,000.
Obstructing Inspectors Imprisonment upto 6 months or fine upto Rs.10,000or both.
Wrongful disclosing result pertaining to results of analysis.
Imprisonment upto 6 months or fine upto Rs.10,000or both.
For contravention of the provisions of Sec.41B, 41Cand 41H pertaining to compulsory disclosure of information by occupier, specific responsibility of occupier or right of workers to work imminentdanger.
Imprisonment upto 7 years with fine uptoRs.2,00,000 and on continuation fine @ Rs.5,000per day.
Imprisonment of 10 years when contraventioncontinues for one year.
EMPLOYMENT EXCHANGES
Applicability of the ActAny premises whereon 10 ormore persons with the aid of
power or 20 or m ore workersare/were without aid of power working on any daypreceding 12 months,wherein Manufactur-ingprocess is being carried on.
Sec.2(ii)
Employer to ensure health of workers pertaining to
Cleanliness. Disposal of wastesand effluents
Ventilation and temperaturedust and fume
Overcrowding Artificialhumidification Lighting
Drinking water Spittons.Secs. 11 to 20
Safety Measures
Facing of machinery Work on near machinery in motion. Employment prohibition of young
persons on dangerous machines. Striking gear and devices for cutting off
power.
Welfare Measures
Washing facilities Facilities for storing and
drying clothing Facilities for sitting First-aid appliances one first
aid box not less than one forevery 150 workers.
Canteens when there are 250or more workers.
Shelters, rest rooms and lunchrooms when there are 150 ormore workers.
Creches when there are 30 ormore women workers.
Welfare office when there are500 or more workers.
Registration &Renewal of
Factories
To be granted by Chief Inspector of Factories
on submission of prescribed form, fee
and plan.Secs. 6
Self-acting machines. Casing of new machinery.
Prohibition of employment of women and children near
cotton-openers. Hoists and lifts.
Working Hours, Spread Over & Overtime of AdultsWeekly hours not more than 48.Daily hours, not more than 9 hours.Intervals for rest at least hour on working for 5 hours.Spreadover not more than 10 hours.Overlapping shifts prohibited.Extra wages for overtime double than normal rate of wages.Restrictions on employment of women before 6AM and beyond 7PM.
Employment of Young Persons
Prohibition of employment of young children e.g. 14 years. Non-adult workers to carry tokens e.g. certificate of fitness. Working hours for children not more than 4 hrs. and not
permitted to work during night shift.Secs. 51, 54 to 56, 59 & 60
Annual Leave with Wages
A worker having worked for 240days @ one day for every 20 daysand for a child one day for workingof 15 days.Accumulation of leave for 30 days.
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(COMPULSORY NOTIFICATION OF VACANCIES)ACT, 1959 & THE RULES
CHECK LIST
INDUSTRIAL DISPUTES ACT, 1947Object of the Act
Provisions for investigation and settlement of industrial disputes and for certain other purposes.
Object of the Act
To provide for thecompulsory
notification of vacancies toemploymentexchanges.
Applicability of the
Act
By notification in theOfficial Gazette, appointin this behalf for suchState and different datesmay be appointed fordifferent states or fordifferent areas of a State.
When Act is not applicableAny employment in agriculture,
horticulture etc.Any employment in domesticservice.
Any employment, the total durationof which is less than threemonths.
Any employment to do unskilledoffice work.
Any employment connected withthe staff of Parliament.
Sec. 3
Notification of vacancies to Employment Exchanges
Before filling up any vacancy as prescribed.Employer not obliged to recruit the person throughemployment exchange.
To notify the vacancies to such employment exchanges asmay be prescribed.
Secs. 4
Time limit for notification of vacancies & selection
Atleast 15 days before the applicants will be interviewed ortested.
Employer to furnish the result of selection within 15 days.Rules
5
Submission of ReturnsQuarterly in Form ER-IBIENNIAL Return Form ER-IIWithin 30 days by 30 th June, 31 st
March, 30 th September & 31 st December.
Rule 6
Furnishing information and
returns
The employer in everyestablishment in public sector in
that State or area shall furnishsuch information or return as may
be prescribed in relation tovacancies that have occurred or
are about to occur in thatestablishment, to such
employment exchanges as maybe prescribed.
Secs. 5
An employer contravening the provisions of Sec.4(1) or (2).Fine upto Rs.500 for first offence and for every subsequent offence fine Rs.1000.If any person Required to furnish any information or return
Refuses or neglects to furnish such information or return, orFurnishes or causes to be furnished any information or return which he knows to be false, orRefuses to answer, or gives a false answer to any question necessary for obtaining any information
required to be furnished under section 5; or
Impedes the right of access to relevant records or documents or the right of entry conferred by section 6;he shall be punishable for the first offence with fine upto Rs.250 and for every subsequent offence withfine upto Rs.250 and for every subsequent offence with fine upto Rs.500.
Rules 7
PENALTIES
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INDUSTRIAL EMPLOYMENT(STANDING ORDERS) ACT, 1946 & THE RULES
CHECK-LIST
Prohibition of Strikes & Lock Outs During the pendency of proceedings before a Labour
Court, Tribunal or National Tribunal and two months, after the conclusion of such
proceedings. During the pendency of arbitration proceedings before an
arbitrator and two months after the conclusion of suchproceedings, where a notification has been issued underSub-Section(3A) of section 10A
During any period in which a settlement or award is inoperation, in respect of any of the matters covered by thesettlement or award. Secs.22&23
Important Clarification sIndustry has attained wider meaning than defined
except for domestic employment, coversfrom barber shops to big steel companies.Sec.2(I )
Works Committee Join t Committee with equalnumber of em ployers and em ployeesrepresentatives for discussion of certain commonproblems. Sec.3
Conciliation is an a ttemp t b y a third p ar ty inhelping to settle the disputes Sec.4Adjudication Labour Court, Industrial Tribunal orNational Tribunal to hear and decide the disput
Power of Labour Court to giveAppropriate Relief
Labour Court/Industrial Tribunal canModify the punishment of dismissal ordischarge of workmen and giveappropriate relief including
Right of a Workman duringPendency of Proceedings
in High CourtEmployer to pay last drawn wagesto rein sta te d w ork ma n w he np ro ceed in gs cha lleng in g th eaward of h is reins tatement are
Persons Bound by
Settlement When in the course of conciliationproceedings etc., all personsworking or joining subsequently.
Otherwise than in course of settlement upon the parties to the
Period of Operation of Settlements and
Awards A settlement for a period as
agreed by the parties, or Period of six months on
signing of settlement. An award for one year after
Lay off & Payment of Compensation Conditions for Laying off
Failure, refusal or inability of an employer toprovide work due to Shortage of coal, power or raw material. Accumulation of stocks. Breakdown of machinery. Natural calamity. Sec.25-C
Notice of Change21 days by an employer to workmen
about changing the conditions of service as provided in Ivth Schedule.
Sec.9A
Without giving to the employer notice of strike, ashereinafter provided, within six weeks before striking.
Within fourteen days of giving such notice. Before the expiry of the date of strike specified in any
such notice as aforesaid. During the pendency of any conciliation proceedings
before a conciliation officer and seven days after theconclusion of such proceedings.
During the pendency of conciliation proceedingsbefore a Board and seven days after the conclusionof such proceedings.
Lay off CompensationPayment of wages except forintervening weekly holidaycompensation 50% of total orbasic wages and DA for aperiod of lay off uptomaximum 45 days in a year.
Prior Permission for Lay off When there are more than 100workmen during proceeding 12months. Sec. 25-M
Retrenchment of Workmen Compensation & ConditionsWorkman must have worked for 240 days. Retrenchment compensation @ 15 days wages for every completed year to be calculated at last
drawn wages One months notice or wages in lieu thereof. Reasons for retrenchment Complying with principle of last come first go.
Prior Permission by theGovernment forRetrenchment
When there are more than 100(in UP 300 or more) workmenduring preceding 12 months.
Three months notice or wagesthereto.
Form QA Com ensation 15 da s
Conditions of service etc. to remain unchanged under certain circumstances during pendency of proceedings
Not to alter to the prejudice of workmen concerned the condition of service. To seek Express permission of the concerned authority by paying one m onths wages o
dismissal, discharge or punish a protected workman conn ected with the dispute. To seek approval of the authority by paying one m onths w ages before altering condition o
Conditions of service etc. to remain unchanged under certain circumstances during pendency of proceedings
Not to alter to the prejudice of workmen concerned the condition of service. To seek Express permission of the concerned authority by paying one m onths wages on dismissal
discharge or punish a protected workman connected with the dispute. To seek approval of the authority by paying one months wages before altering condition of service, dis
Prohibition of unfair labourpractice either by
employer or workmanor a trade union asstipulated in fifth
scheduleBoth the em lo er and the Union
Closure of an Undertaking60 days notice to the labourauthorities for intended closure in FormQA . Sec.25FFAPrior permission atleast 90 days beforein Form O by the Government when
there are 100 or more workmen duringpreceding 12 months (in UP 300 ormore workmen) Sec.25-O
PENALTIESOffence
Comm itting unfair labour practicesIllegal strike and lock-ourts
Instigation etc. for illegal strike or lock-outs.Giving financial aid to illegal strikes and lock-outs.
Breach of settlement or awardDisclosing confidential information pertaining to Sec.21
Closure without 60 days notice under S ec.25 FFAContravention of Sec.33 pertaining to change of conditions of
Service during pendency of dispute etc.When n o penally is provided for contravention
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MATERNITY BENEFIT ACT, 1961
CHECK LISTObject of the Act
To protect the dignity
of motherhood andthe dignity of a newpersons birth by
providing for the fulland healthy
maintenance of thewoman and her childat this important time
when she is notworking.
Coverage of the ActUpon all women em ployees either employeddirectly or through contractor exceptdomestic women employees employed inmines, factories, plantations and also inother establishments if the StateGovernm ent so decides. Therefore, if theState Government decides to apply this Actto women employees in shops andcommercial establishments, they also willget the benefit of this Act. Bihar, PunjabHaryana, West Bengal, U.P., Orissa and
Conditions for eligibilityof benefits
Women indulging temporaryof unmarried are eligible formaternity benefit when sheis expecting a child and hasworked for her employer forat least 80 days in the 12months immediatelyproceeding the date of herexpected delivery Sec. 5.
Conditions forCertification of
Standing OrdersEvery matter to be
set out as perSchedule and Rule2A.
The standing ordersto be inconformity withthe provisions of the Act.
Submissions of Draft Standing
Orders
Within six monthsfrom the date whenthe Act becomesapplicable to anindustrialestablishment. Fivecopies of the draftStanding Orders areto be submitted tothe CertifyingOfficer under theAct.
Sec.3
Failure of employer to submit draft Standing Orders fine of Rs.5000 and Rs.200 for every day oncontinuation of offence.
Fine of Rs.100 on contravention and on continuation of offence Rs.25 for every day.
Procedure forCertification of
Standing OrdersCertifying Officer toforward a copy of draftstanding orders to thetrade union or in theabsence of union, to theworkmen of the industry. The trade union or the
other representatives, asthe case may be, are tobe heard.
Sec.5
Date of Operation of
StandingOrders
On the date of expiry of 30 daysfrom certificationor on the expiryof 7 days from
authentication of Standing Orders.
Sec. 7
Posting of StandingOrders
The text of thestanding orders asfinally certified shallprominently be postedin English or in thelanguage understoodby majority of workmen
on special board at ornear the entrance formajority of workers.
Sec. 9
Temporaryapplication of Model
Standing Orders Temporary applicationof mod standing ordersshall be deemed to be
adopted till thestanding orders as
submitted are certified.
Sec.12-A
Payment of Subsistence Allowance to theSuspended Workers
At the rate of fifty per cent, of the wages which theworkman was entitled to immediately proceeding thedate of such suspension, for the first ninety days of suspension.At the rate of seventy-five percent of such wages forthe remaining period of suspension if the delay in thecompletion of disciplinary proceedings against suchworkman is not directly attributable to the conductsuch workman. Sec.1 0 -A
PENALTIES
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MINIMUM WAGES ACT, 1948CHECK LIST
Cash Benefits
Leave with average pay for six weeks before the delivery.Leave with average pay for six weeks after the delivery.A medical bonus of Rs.25 if the employer does not provide free medical care to the
woman.An additional leave with pay up to one month if the woman shows proof of illness due to
the pregnancy, delivery, miscarriage, or premature birth.In case of miscarriage, six weeks leave with average pay from the date of miscarriage.
Non C ash Benefits/PrivilegeLight work for ten weeks (six weeks plus one month) before the date of her expected
delivery, if she asks for it. Two nursing breaks in the co urse of her daily work until the ch ild is 15 months old.No discharge or dismissal while she is on maternity leave.No change to her disadvantage in any of the conditions of her employment while on
maternity leave.
Pregnant women discharged or dismissed may still claim maternity benefit from theemployer.Exception : Women dismissed for gross misconduct lose their right under the Act forMaternity Benefit
Conditions for eligibility of
benefits
Ten weeks before the date of her expected delivery, shemay ask the employer togive her light work for amonth. At that time sheshould produce a certificatethat she is pregnant.
She should give written noticeto the employer about sevenweeks before the date of herdelivery that she will beabsent for six weeks beforeand after her delivery. Sheshould also name the person
to whom payment will bemade in case she can nottake it herself.
She should take the paymentfor the first six weeks beforeshe goes on leave.
She will get payment for the sixweeks after child-birth within48 hours of giving proof thatshe has had a child.
She will be entitled to twonursing breaks of fifteenminutes each in the courseof her daily work till her childis fifteen months old.
Her employer cannot dischargeher or change her conditionsof service while she is onmaternity leave.
Sec. 5.
Leave for Miscarriage& Tubectomy Operation
Leave with wages at the rate of maternity benefit, for a period of six weeks immediately followingthe day of her miscarriage or hermedical termination of pregnancy.
Entitled to leave with wages at therate of maternity benefit for aperiod of two weeks immediatelyfollowing the day of her tubectomyoperation.
Leave for illness arising out of pregnancy etc. etc.
A woman suffering from illnessarising our of pregnancy, delivery,premature birth of child(Miscarriage, medical terminationof pregnancy or tubectomyoperation) be entitled, in additionto the period of absence allowedto her leave with wages at the
rate of maternity benefit for amaximum period of one month.
Sec. 10
Prohibition of dismissal during absence of pregnancyDischarge or dismissal of a woman employed during or on account of such absence or to give notice or discharge or dismissal on such
that the notice will expire during such absence or to very her disadvantage.Discharge or dismissal during or on account of such absence or to give notice of discharge or dismissal on such a day that the notic
expire during such absence, or to vary to her disadvantage any of the conditions of her service.At the time during her pregnancy, if the woman but for such discharge or dismissal would have been entitled to maternity benefit or m
bonus, etc.Not barred in case of dismissal for cross misconduct. Sec.
Failure to DisplayExtract of ActImprisonment mayextend to one yearor fine.
Forfeiture of maternity benefitIf permitted by her employer to absent herself under the provisions of section 6 forany period during such authorized absence, she shall forfeit her claim to thematernity benefit for such period.For discharging or dismissing such a woman during or on account of her absencefrom work, the employer shall be punishable with imprisonment which shall not beless than 3 months, but it will extend to one year and will find, but not exceedingRs.5,000. Sec. 18
Object of the Act To provide for fixing
minimum rates of wages in certain
Fixation of Minimum Rates of Wages The appropriate government to fix minimum rates of wages. The
employees employed in para 1 or B of Schedule either at 2 or either part of notification u/s 27.
To make review at such intervals not exceeding five years the minimumrates or so fixed and revised the minimum rates.
Government can also fix Minimum Wages for Time work Piece work at piece rate Piece work for the purpose of
securing to such employees on a time work basis Overtime work done by
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PENALITIES Offence Punishment
Sec. 20
For paying less than minimumrates of wages
Imprisonment upto 6 monthsor with fine upto Rs.500/-
For contravention of anyprovisions pertaining to fixinghours for normal working day etc.
Imprisonment upto 6 monthsor with fine upto Rs.500/-
SALES PROMOTION EMPLOYEES(CONDITIONS
OF SERVICE) ACT, 1976 & THE RULESCHECKLIST
Minimum Rates of Wages
Such as Basic rates of wages etc. Variable DAand Value of otherconcessions etc. Sec. 4 Procedure for fixing
and revising MinimumRates of Wages
Appointing Committeeissue of Notification etc.
Fixing Hours forNormal Working
Shall constitute anormal working dayinclusive of one ormore specifiedintervals.
To provide for a dayof rest in everyperiod of seven dayswith remuneration.
To provide forpayment for work ona day of rest at a ratenot less than theovertime rate.. Sec.
Overtime To be fixed by the hour, bythe day or by such a longerwage-period works on anyday in excess of the numberof hours constituting normalworking day.Payment for every hour or fopart of an hour so worked iexcess at the overtime rat
double of the ordinary rate o(1 times or for agriculturlabour) Sec.
Composition of Committee
R epre se nta tio n of employer andemployee in schedulee mployer in equanumber andindependent personsnot exceeding 1/3 rd ori ts total number onesuch person to beappointed by the
Payment of MinimumRates of Wages
Employer to pay toevery employeeengated in scheduleemployment at a ratenot less than minimumrates of wages as fixedby Notification by notmaking deductionother than prescribed.
Wages of wo rkers who wo rks for less thannormal working days
Save as o therwise hereinafter p rovided, beentitled to receive wages in respect of work doneby him on that day as if he had worked for a fullnormal working day.
Sec.15
Wages for two class of work Where an employee does two or moclasses of work to each of whichdifferent minimum rate of wagesapplicable, wages at not less than tminimum rate in respect of each suclass. Sec. 16
Maintenance of registers and records Register of Fines Form I Rule 21(4) Annual Returns Form III Rule 21 (4-A) Register for Overtime Form IV Rule 25 Register of Wages Form X,Wages slip Form XI,Muster Roll Form V
Rule 26
Minimum time rate wages for piecework
Not less than minimum rates wages
Claims by employees To be filed by before authority constituted under the Act within 6
months.
Object of the Act To regulate certain conditions of service of sales promotion employees in certain establishments.
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TRADE UNIONS ACT, 1926CHECKLIST
Applicability of the Act
Whole of India with effectfrom 6.3.1976
Applicability of otherActs Workmens
Compensation Act, 1923 Industrial Disputes Act,
1947 Minimum Wages Act,
1948 Maternity Benefit Act,
Maintenance of register
A register of salespromotion employees inForm B.
Service Books for everyemployee in Form C
A register of servicebooks in Form D
Leave account of eachemployee in Form E.
Wages for weekly day of rest
Entitled to wages on weeklydays of rest as if he
was on duty.Rule 7
Affixing of holidays toleave
Premixing or suffixing of any leave not
Quarantine leaveUpto 30 days on the
recommendations of authorised medicalattendant or Public
Health Officer.
Leave Earned leave and cash
compensation on earned leave notavailed of.
On full wages for not less than 1/11 th
of the period spent on duty. Leave on medical Certificate
On one-half of the waves for notless than 1/18 th of the period of service. Cashable on voluntary
relin uishment or termination other
Maximum limit uptowhich earned leave
Can be accumulated 180days of which theemployee can availhimself 90 days at a time.
Encashment of leave 120days.
Sec.14
Issue of AppointmentLetter in Form A
Within three monthsfrom the commencementof the Act and in othercase on appointment.
Sec.5 Rule 22
Number of holidays in a year10 in calendar year
Rule 4
Compensatory holidaysWithin 30 days of the day when hewas required to work.
Application for leaveWhen other than casual leave, not lessthan one month beforecommencement of leave except forurgent or unforeseen circumstances.
Rule 9
Holidays intervening during theperiod of leave
Except casual leave grantged or day of weekly rest, other holidays shallbe part of leave.
Rule 12
Extraordinary leave
At the discretion of the employerRule 17
PENALTY On contravention of provisions relating to Leave Issue of Appointment Letter
or Maintenance of Registers fine upto Rs.1000
Wages for holidays To be entitled for wages onall holidays as if he was onduty.
Recording of reason forrefusal or
postponement of leave.
Medical leave
On production of medicalcertificate.
Rule 15
Casual leave
15 days in a calendar year.Rule 15
Object of the Act To provide for the registration of Trade Union and in certain respects
to define the law relating to registered Trade Unions
Registration of trade Union
Any 7 or more members of a trade union may, bysubscribing their names to the rules of the trade unionand its compliance.
There should be at least 10%, or 100 of the work-men,whichever is less, engaged or employed in theestablishment or industry with which it is connected.
It has on the date of making application not less than 7 persons as its members, who are workmen engaged oremployed in the establishment or industry with which itis connected.
Registration of trade Union
Prescribed form with following details.
Names, occupations and address of themembers place of work.
Address of its head office; and
Names, ages, addresses and occupations of its office bearers.
Sec. 5
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PAYMENT OF BONUS ACT, 1965 & THERULES
CHECKLIST
Minimum requirements formembership of trade
union
Not less than 10% , or 100 of the workmen, whichever isless,subject to a minimum of 7 ,engaged or employed in anestablishments etc.
Sec. 9A
Cancellation of registration
If the certificate has beenobtained by fraud ormistake or it has ceased toexist or has wilfullycontravened any provisionof this Act.
If it ceases to have therequisite number of
members.Sec. 10
Criminal conspiracy in tradedisputes
No office bearer or member of aregistered trade union shall be liable topunishment under sub section (2) of conspiracy u/s 120B of IPC in respect of any agreement made between themembers for the purpose of furtheringany such object of the Trade Union.
Sec. 17
Disqualification of office bearersof Trade Union
If one has not attained the age of 18 years.Conviction for an offence involving moralturpitude.Not applicable when 5 years have elapsed.Sec. 21-A
Returns
Annually to the Registrar, on or before such date as maybe prescribed, a general statement, audited in theprescribed manner, of all receipts and expenditure of every registered Trade Union during the year ending onthe 31 st December.Sec. 28
Penalties Offence Punishment
U/s 31
For making false entry in orany omission in generalstatement required forsending returns.
For making false entry in theform.
Fine upto Rs.500. Oncontinuing default, additionalfault, Rs.5 for each week (notexceeding Rs.50).
Fine upto Rs.500.
U/s 32 Supplying false information
regarding Trade Union Fine upto Rs.200.
Applicability of ActEvery factory where in 10 or more persons areemployed with the aid of power orAn establishment in which 20 or more persons areemployed without the aid of power on any day duringan accounting year
Establishment
Establishment includesDepartments,
undertakings and
Separate establishment
If profit and loss accountsare prepared andmaintained in respect of any such department orundertaking or branch,then such department orundertaking or branch istreated as a separateestablishment.
Computation of available surplus
Income tax and direct taxes aspayable.Depreciation as per section 32 of Income Tax Act.Development rebate, investment ordevelopment allowance.Sec.5
Components of Bonus
Salary or wagesincludes dearnessallowance but no otherallowances e.g. over-time, house rent,incentive or
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PENALTY For contravention of any provision of the Act orthe Rule Upto 6 months or with fine upto Rs.1000.Sec.28
PAYMENT OFGRATUITY
ACT, 1972 & THE RULES
CHECKLIST
Computation of grossprofit
For banking company, asper First Schedule.
Others, as perSecond Schedule
Sec.4
Eligible Employees
Employees drawing wagesupto Rs.3500 per month or
less.For calculation
purposes Rs.2500per monthmaximum will betaken even if anemployee isdrawing uptoRs.3500 per month.
Sec.12Note: The proposal toenhance the existingceiling of Rs.3500 is under
Disqualification & Deduction of Bonus
On dismissal of an employee for Fraud; or riotous or violent behaviour while on the premises of the
establishment; or theft, misappropriation or sabotage of any property of the
establishment or Misconduct of causing financial loss to the Employer to the
extent that bonus can be deducted for that year.Secs. 9 & 18.
Eligibility of Bonus
An employee will be entitledonly when he has workedfor 30 working days in thatyear.
Payment of Minimum Bonus8.33% of the salary orRs.100 (on completion of 5years after 1 st Accounting yeareven if there is no profit)
Sec.10
Time Limit forPayment of Bonus
Within 8 months from theclose of accounting y ear.
Set-off andSet-on
As per Schedule IV.Sec. 15
Maintenance of Registers and Records etc.
A register showing the computation of the allocable surplus referred to in clause (4) of section 2, inform A.
A register showing the set-on and set-off of the allocable surplus, under section 15, in form B
A register showing the details of the amount of bonus due to each of the employees, thedeductions under section 17 and 18 and the amount actually disbursed, in form C.
Act not applicable to certain employees of LIC, General Insurance, Dock Yards, Red Cross, Universities& Educational Institutions, Chambers of Commerce, Social Welfare Institutions, Building Contractors,
Sec.1
Applicability
Every factory,mine, oil field,
plantation, port,railways,
company, shop,establishment oreducationalinstitutions
employing 10 ormore employees
Sec.2(s)
Wages forCalculation
@ 15 dayswages for every
completed yearas if the monthcomprises of 26days at the lastdrawn wages.Sec.
2(e)
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PAYMENT OF WAGES ACT, 1936CHECKLIST
CalculationSeasonalemployee
@ 7 dayswages for
everycompleted
year of service.
Sec.1
Calculation
Piece-rated
employee
@ 15 dayswages for
everycompletedyear on an
average of 3monthswages
Qualifyingperiod
On rendering of
5 years service,eithertermination,
resignation orretirement.
Employee
All employeesirrespective of
status orsalary
EntitlementOn completionof five years
service exceptin case of death or
disablement
Rule4
Display of Notice
On conspicuousplace at the main
entrance inEnglish languageor the languageunderstood by
majority of employees of the
factory, etc.
Sec.6Rule 6
Nomination
To be obtainedby employer
after expiry of one yearsservice, in
Form F
Sec.4(3)
MaximumCeiling
Rs.3,50,000
Rule9
Mode of payment
Cash or, if sodesired, by
Bank Draft orCheque
Rule9
Penalties
Imprisonment for6 months or fineupto Rs.10,000for avoiding tomake payment
by making falsestate-ment orrepresenta -tion.
Imprisonment notless than 3months and uptoone year withfine on default incomply-ing withthe provisions of Act or Rules.
Sec.8Rule 8
Recovery of Gratuity
To apply within30 days in
Form I whennot paid within
30 days
Sec.
4(6)Forfeiture of Gratuity
On termination of anemployee for moralturpitude or riotous ordisorderly behaviour.
Wholly or partially forwilfully causing loss,destruction of propertyetc.
Sec.13
Protection of Gratuity
Cant beattached in
execution of any decree
Applicability of Act Factory industrial
Establishment Tramway service or motor
transport service engaged incarrying passengers or goodor both by road for hire orreward. Air transportservice Dock, Wharf or Jetty
Inland vessel, mechanicallypropelled Mine, quarry or oil-field
Plantation
Object of the Act To regulate the payment of wages of certain classes of employed persons
Wages to be paid incurrent coinsor currency
notes All wages shall be paidin current coins orcurrency notes or inboth. After obtaining theauthorization, either bycheque or by creditingthe wages in employees
Time of payment of wages The wages of every person employedbe paid.When less than 1000 persons areemployed shall be paid before theexpiry of the 7 th day of the following
month.When more than 1000 workers, beforethe expiry of the 10 th day of thefollowing month.
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WORKMENS COMPENSATIONACT, 1923
CHECKLIST
Coverage of EmployeesDrawing average wage uptoRs.6500 pm as amended w.e.f.6.9.05.
Fines as prescribed by Not to imposed unless theemployer is given anopportunity to show cause
To record in the register Sec.8
Deductions for servicerendered
When accommodation amenityor service has been acceptedby the employee.
Sec.11
On contravention of S.5 (except sub-sec.4), S.7, S.8(except Ss.8), S.9, S.10 (except Ss.2) and Secs.11 to13.
Fine not less than Rs.1000 which may extend toRs.5000. On subsequent conviction fine not lessthan Rs.5000, may extend to Rs.10,000. Oncontravention S.4, S.5(4), S6, S.8(8), S.10(2) or S.25fine not less than Rs.1000. may extend toRs.5000. On subsequent On conviction fine notless.
For failing to maintain registers or records; or Wilfully refusing or without lawful excuse
neglecting to furnish information or return; or Wilfully furnishing or causing to be furnished any
information or return which he knows to be falseor
Refusing to answer or wilfully giving a falseanswer to any question necessary for obtainingany information required to be furnished underthis Act.
Fine which shall not be less than Rs.1000 but mayextend to Rs.5000 On record conviction fine notless than Rs.5000, may extend to Rs.10,000.
For second or subsequent conviction, fine not lessthan Rs.5000 but may extend to Rs.10,000
Wilfully obstructing an Inspector in the dischargeof his duties under this Act; or
Refusing or wilfully neglecting to afford anInspector any reasonable facility for making anyentry, inspection etc.
Wilfully refusing to produce on the demand of aninspector any register or other document kept inpursuance of this Act; or preventing any person forappearance etc.
Fine not less than Rs.1000 extendableUpto Rs.5000 On subsequent conviction finenot less than Rs.5000 may extent to Rs.10,000
On conviction for any offence and again guilty of Imprisonment not less than one month
Deduction made from wagesDeductions such as, fine, deduction foramenities and services supplied by theemployer, advances paid, overpayment of wages, loan, granted forhouse-building or other purposes,income tax payable, in pursuance of the order of the Court, PFcontributions, cooperative societies,premium for Life Insurance,contribution to any fund constituted byemployer or a trade union, recovery of
Deduction for damage or loss
For default or negligence of anemployee resulting into loss. Showcause notice has to be given to the
Deduction forabsence from
duties forunauthorised
absence
Absence for whole or
any part of the day If ten or more personsabsent withoutreasonable cause,deduction of wages upto8 days.
Sec. 9
Applicability
All over IndiaSec.1
Coverage of WorkmenAll workers irrespective of their
status or salaries either directly orthrough contractor or a person
recruited to work abroad. Sec.1(3)
Employers liability to paycompensation to a workman
On death or personal injury resultinginto total or partial disablement oroccupational disease caused to a
workman arising out of and duringthe course of employment.
Amount of compensation Where death of a workman results from the injury
An amount equal to fifty per cent of the monthly wagesof the deceased workman multiplied by the relevant factoron an amount of eighty thousand rupees, whichever is more. Where permanent total disablement results from the
injury. An amount equal to sixty per cent of the monthly wages
of the injured workman multiplied by the relevant factor oran amount of ninety thousand rupees, whichever is more
Procedure for calculationHigher the age Lower the compensation
Relevant factor specified in second column of Schedule IVgiving slabs depending upon the age of the concernedworkman.
Example : In case of death. Wages Rs.3000 PM Age 23 years Factor as schedule IV Rs.19.95
When an employee is not liablefor compensation
In respect of any injury which doesresult in the total or partialdisablement of the workman for aperiod exceeding three days.
In respect of any injury, notresulting in death or permanenttotal disablement caused by anaccident which is directlyattributable to-
The workman having been at thetime thereof under the influence of drink or drugs, or
Willful disobedience of theworkman to an order expresslygiven, or to a rule expresslyframed, for the purpose of securing the safety of workmen, or
Willful removal or disregard by theworkman of any safety guard orother device which he knew tohave been provided for the
ur ose of securin the safet of
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Wages
When the monthly wagesare more than Rs.4000 permonth it will be deemedRs.4000.
NoticeAccident
As soon asPracticable
Sec. 10
Report of accidentRule 11 Form EE
Report of fatal Accident and Serious Injury within 7 days tothe Commissioner (not application when ESI Act applies).
Sec.10B
Bar upon contracting out
Any workman relinquishing his rightfor personal injury not permissible.
Sec.14
PENALTY
In case of default by employer Deposit of Compensation
50% of the compensation amount + interest to be paid to theworkman or his dependents as the case may be.
Within one month with the Compensation CommissionerSec.4A