A BRIEF CHECK LIST OF LABOUR LAWS

APPRENTICES ACT, 1961

CHECKLIST Applicability of the Act Areas and industries as notified by the Central Government Sec. 1 Apprenticeship Advisor Central Apprenticeship Advisor when appointed by Central Government. Sec. 2(b)

Object of the Act Promotion of new manpower at skills. Improvement/refinement of old skills through theoretical and practical training in number of trades and occupation Industry Industry means any industry, or business or in which any trade, occupation or subject/field in engineering or technology or any vocational course may be specified as a designated trade Sec. 2(k) Contract of Apprenticeship To contain such terms and conditions as may be agreed to by the apprentice, or his guardian (in case he is a minor) and employers. Sec. 4 Termination of Apprenticeship On the expiry of the period of Apprenticeship training. On the application by either of the parties to the contract to the Apprenticeship Advisor Sec. 6 Payment to Apprentices The employer to pay such stipend at a rate of not less than the prescribed minimum rate as may be specified. Sec. 6

Qualification for being trained as an Apprentice A person cannot be an apprentice in any designated trade unless He is not more than 14 years of age; He satisfies such standard of education Period of And physical fitness as Apprentice May be prescribed. Sec. 3 ship Training to be Determined by the Conditions for Novation of Contract of Apprenticeship There exists an apprenticeship contract. The employer is unable to fulfil his obligation. The approval of the Apprenticeship Advisor is obtained. Agreement must be registered with the Apprenticeship Advisor. Sec. 5

Number of Apprentices in Designated Trade To be determined by The Central Government after consulting the Central Apprenticeship Council Sec.8

Obligations of employers To Provide the apprentice with the training in his trade. To ensure that a person duly qualified is placed in charge of the training of the apprentice. To carry out contractual obligations. Sec. 11

Obligations of Apprentice Employers liability to pay To learn his trade conscientiously, diligently. compensation for To attend practical and instructional classes regularly. injury To carry out all lawful orders. As per provisions of Workmens To carry out his contractual obligations. Compensation Act. Health safety & Welfare measures for Apprentices As per Factories Act or Mines Act as the case may be when CONTRACT LABOUR(REGULARATION & ABOLITION) ACT,1970 & THE RULES Offences & Punishment undergoing training. Imprisonment of a term upto 6 CHECKLIST Hours of work months or with fine when 42 to 48 in a week while on theoretical training. Applicability Registration of employer (I) engages as 42 in a week while on basic training. Every establishment in which 20 or more Establishment Object of weekActsecond year of training. the in an apprentice a person 42 to 45 in a workmen are employed or were Principal not qualified for To regulate the who is employer employing 20 employed on any day of the preceding 12 As per other workers (in the third year). or more engaged or (ii) employment of contract being so workers through the months as unless labour. Not allowed to work between 10 PM to 4 AM contractapproved by contractor carrythe contractor(s) labour in certain fails to or out the Every contractor who employs or who Apprenticeship Advisor. on deposit conditions of a fee in establishments and to terms and of required employed on any day of the preceding Leave and Holidays Form 1 contract of provide for its abolition in Casual leave for the maximum period twelvedays in a 20 or more workmen. of 12 months year. certain circumstances and apprenticeship, or (iii) Sec. 7 Medical leave for the maximum period of Revocation of Registration 15 days and the for matters connected contravenes Contractor Prohibition of leave upto 40 days Contract When obtained by Sec. 1 Licensing of the accumulated Employment of in& year. Revocation or Suspension a therewith. provisions ofor more than 20 Labour Misrepresentation or Engaging 20 the Act Extraordinary leave upto a maximum period of 10 days in a year. Amendment of Licences relating to the number of Only by obtained by misrepresentation or the appropriate Government through suppression Sec. 15 workers and on deposit of When apprenticesfee in Form IV. issue of notification after consultation with Of material facts etc. after required which he is suppression of material facts. the Board the contractor to complyorder the opportunity to the principal Valid for specified Failure of (and not Courts) can with the prohibition of or contravention of Act labour. employer [Link].12, Rule 21 conditions employment of contract or the Sec. 10 Sec. 14 Sec. 9 Rules.

Laws, Agreement or standing orders inconsistent with the ActNot Permissible Unless the privileges in the contract between the parties or more favourable than the C ontrac tor prescribed in the Act, such contract will be Every contractor shall invalid and the workers will continue to get Maintain Muster Roll and a Register of Wages in Form XVI and Form XVII respectively when more favourable benefits. combined. Registers of Contractors P rin cipa l em ployer To maintain a register of contractor in respect of every establishment in Form XII. C ontractor Rule 74 To maintain register of workers for each registered establishment in Form XIII. To issue an employment card to each worker in Form XIV. To issue service certificate to every workman on his termination in Form XV. R ule s 7 5, 7 6 a n d 7 7 PENALTIES
Sec. 20 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 or Fines and Register of Avances in Form XX, from XXI and Form XXII respectively. Maintain a Register of Overtime in Form XXIII. To issue wage slips in Form XIX, to the workmen at least a day prior to the disbursement of wages. Obtain the signature or thumb impression of the worker concerned against the entries relating to him on the Register of wages or Muster Roll-Cum-Wages Register. When covered by Payment of Wages Act, register and records to be maintained under the rules Muster 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 the language spoken by the Majority of workers in such forms as may be approved by appropriate authority R ule 80 Punishment To display notices showing rates of wages, hours of work, wage period, dates of payment, For obstructing the inspector or failing to produce registers etc. names and addresses of the inspector and to send copy to the inspector and any change - 3 months imprisonment or fine upto Rs.500, or both. R u l e 8 1 forwithwith

Welfare measures to be taken by the Contractor Contract labour either one hundred or more employed by a contractor for one or more canteens shall be provided and maintained. First Aid facilities. Number of rest-rooms as required under the Act. Drinking water, latrines and washing facilities.c . 1 6 & 1 7 Se Liability of Principal Employer To ensure provision for canteen, restrooms, sufficient supply of drinking water, latrines and urinals, washing facilities. Principal employer entitled to recover from the contractor for providing such amenities W a e s R e deductions u c t i n R e g i s e r a n S e c . r i M u s t e r R o l l ,or togmake g i s t e r , D e dfromo amount tpayable.O v e2t0 m e R e g is t e r b y d

Sec. Offence EMPLOYEES PROVIDENT FUNDS & MISC. PROVISIONS ACT, Sec. 22 Obstructions 1952 Sec.23 Violation For violation of the provisions of Act or the Rules, imprisonment of 3

& THE SCHEMES Months or fine upto Rs.1000. On continuing contravention, additional fine upto Rs.100 per day CHECKLIST Clarification about Contribution After revision in wage ceiling from Eligibility Applicability Rs.5000 toR s who0is w.e.f. 1.6.2001 per Every establishment which is factory engaged in any industry specified in Any person . 6 5 0 employed for month, the an establishment or work of government will continue to Schedule 1 and in which 20 or more persons are employed. contribute1through contractor in orwage employed . 1 6 % upto the actual Any other establishment employing 20 or more persons which Central of maximum Rs.6500 per month towards in connection with the work of an Government may, by notification, specify in this behalf. Employees Pension Scheme. The establishment. Any establishment employing even less than 20 persons can be covered Payment of in the Pension employers share Contribution Scheme voluntarily u/s 1(4) of the Act. The employer shall pay the will be Rs.541 w.e.f. 1.6.2001. contribution payable to the EPF, DLI Benefits Under Employees Deposit-Linked and Employees the contribution Insurance Scheme Pension Fund in @ Employees covered enjoy a benefit of Social Security in the form of an 0 . respectis of the member of upto a unattachable and unwithdrawable (except in severely restricted circumstances 50% required to be paid the Employees of Rs.6500. maximum limitPension Fund employed like buying house, marriage/education, etc.) financial nest egg to which by him directly by or through a The employer also will pay administrative employees and employers contribute equally throughout the covered persons contractor. charges @0 . 0 1 % on maximum limit of employment. It shall whereas of the Rs.6500 be the responsibility exempted This sum is payable normally on retirement or death. Other Benefits include an principal employer to pay the establishment will pay inspection charges Employees Pension Scheme and Employees Deposit Linked Insurance Scheme. Rates of Contribution @ contributions payable to the EPF, 0 . 0 0 5 % on the total wages paid. DLI SCH EM E EM PL O YEE S EM PLO YE RS CENTRA L GOVTS N o t e s :and Employees Pension Fund by himself in respect Amount > 8.33% The above clarification is givenof the by taking employees a maximum of Rs.6500 (in case wages upto directly employed by him and also in respect of the where towards wage (basic+DA). employees directly employed by him contribution Since an excluded employee i.e. drawing and also in is 12% of wages more than respect ofcanthe Rs.6500 also Provident Fund employees employed by or through 12% 10%) NIL become member of the Fund and the Scheme a contractor. 10% (in case of Schemes on joint request and if, for Damages certain instance, such an employee is getting Establishments as .@ 17% per Rs.10,000 per month, his share towards Less than 2 months per details given provident fund contribution will be earlier) Rs.1200 e.g. 12% and employers share annum towards provident fund contributioin will Insurance Scheme NIL 0.5 NIL be Rs.659 and Rs.541 towards Two months and above but less than upto four months .@22% per annum 8.33% (Diverted Employees Pension Fund. out of NIL 1.16% Pension Scheme above but less than upto six months Four months and .@ 27% per Provident

Penal Provision
Liable 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 arrears. EMPLOYEES STATE INSURANCE ACT, 1948 & the SCHEME CHECK LIST Applicability of Coverage the Act & THE ESI SCHEME TODAY of employees Rate of Scheme No. of implemented Centres 677 Contribution of Is extended in areaNo. of Employers covered 2.38 Drawing wages the wages wise to factories lacs upto Rs.10000/using power and No. of Insured Persons 85 lacs per month Employers 4.75% employing 10 or more No. of Beneficiaries 330 lacs engaged either persons and to nonNo. of Regional Offices/SROs 26 Employees 1.75% directly or thru power using No. of ESI Hospitals/Annexes 183 contractor manufacturing units No. of ESI Dispensaries 1453 Manner and Time Limit and establish-ments No. of Panel Benefits Clinics 2950 for making Payment of contribution employing 20 or more To the employees under the Act person upto The total amount of contribution (employees Rs.7500/- per month share and employers share) is to be deposited Medical, sickness, extended sickness for w.e.f. 1.4.2004. It with the authorised bank through a challan in certain diseases, enhanced sickness, has also been extendthe prescribed form in quadruplicate on ore dependents maternity, besides funeral To be deemed as wages before NOT to be deemed as ed upon shops, 21st of month following the calendar expenses, rehabilitation allowance, wages hotels, restaurants, month in which the wages fall due. medical benefit to insured person and roads pay transport Basic motor his or her spouse. Contribution paid by WAGES FOR undertakings, equip- ESI CONTRIBUTIONS kthe Dearness allowance Contribution employer to any ment Registers/files to be maintained by the employers maintenance House rent allowance Contribution period pension/provident fund or staff in the hospitals. City compensatory period under ESI Act. allowance If the person joined Sum paid to defray special insurance employment for Overtime wages (but not expenses entailed by the 1st April to 30th the first time, say on 5th to be taken into account nature of employment September. January, his first contribution for determining the Daily allowance paid for period will be from 5th coverage of an employee) the period spent on tour. January Penalties to 31st March and his Payment for day of rest Gratuity payable on 1st October to 31st corresponding first benefit discharge. th Production incentive March Different punishment have will be from 5 for different been prescribed October to st Pay in lieu of notice of 31 December. Bonus other than statutory types of offences in terms of Section 85: (I) (six months retrenchment bonus compensation imprisonment and fine Rs.5000), (ii) (one year Night shift allowance Benefits paid under the Heat, Gas & Dust imprisonment and fine), and 85-A: (five years ESI Scheme. allowance imprisonment and not less to 2 years) and 85-C(2) of the Encashment of leave Payment for unsubstituted ESI Act, which are self explanatory. Besides these Payment of Inam which holidays does not form part of the provisions, action also can be taken under section 406 of Meal/food allowance terms of employment. Suspension allowance the IPC in cases where an employer deducts Washing allowance for Lay off compensation livery contributions from the wages of his employees but does Children education allowance (not being reimbursement for actual tuition fee) Conveyance Amount towards reimbursement for duty related journey not pay the same to the corporation which amounts to criminal breach of trust.

FACTORIES ACT, 1948

CHECK L IST Employer to ensure health of Registration & workers pertaining to Renewal of Factories Cleanliness Disposal of wastes and To be granted by Chief effluents Inspector of Factories on Ventilation and temperature dust and submission of prescribed fume form, fee and plan. Overcrowding Artificial humidification Secs. 6 Lighting Drinking water Spittons. Secs. 11 to Self-acting machines. 20 Welfare Measures Casing of new machinery. Prohibition of employment of Facing of machinery Washing facilities women and children near Work on near machinery in motion. Facilities for storing and drying cotton-openers. Employment prohibition of young persons on clothing Hoists and lifts. dangerous machines. Facilities for sitting Striking gear and devices for cutting off First-aid appliances one first aid power. Working Hours, Spread Over & Overtime of Adults box not less than one for every 150 Weekly hours not more than 48. workers. Daily hours, not more than 9 hours. Canteens when there are 250 or Intervals for rest at least hour on working for 5 hours. more workers. Spreadover not more than 10 hours. Shelters, rest rooms and lunch Overlapping shifts prohibited. rooms when there are 150 or more Extra wages for overtime double than normal rate of wages. workers. Restrictions on employment of women before 6AM and beyond 7 PM. Creches when there are 30 or more Secs. 51, 54 to 56, 59 & 60 women Leave Employment of Young Persons Annual [Link] Wages Welfare office when there are 500 or more workers. A worker having worked for 240 days @ Prohibition of employment of young children e.g. 14 years. Applicability of the Act Any premises whereon 10 or more persons with the aid of power or 20 or more workers are/were without aid of power working on any dayd preceding 12 months, wherein Manufacturing process is being carried on. Sec.2(ii) Safety Measures Non-adult workers to carry tokens e.g. certificate of fitnekss. Working hours for children not more than 4 hrs. and not permitted to work during night shift. Secs. 51, 54 to 56, 59 & 60
OFFENCE For contravention of the Provisions of the Act or Rules PENALTIES

one day for every 20 days and for a child one day for working of 15 days. Accumulation of leave for 30 days. Secs. 79
Sec.92 to

On Continuation of contravention On contravention of Chapter IV pertaining to safety or dangerous operations. Subsequent contravention of some provisions Obstructing Inspectors Wrongful disclosing result pertaining to results of analysis. For contravention of the provisions of Sec.41B, 41C and 41H pertaining to compulsory disclosure of information by occupier, specific responsibility of occupier or right of workers to work imminent danger.

Imprisonment upto 2 years or fine upto Rs.1, 00,000 or both Rs.1000 per day Not less than Rs.25000 in case of death. Not less than Rs.5000 in case of serious injuries. Imprisonment upto 3 years or fine not less than Rs.10,000 which may extend to Rs.2,00,000. Imprisonment upto 6 months or fine upto Rs.10,000 or both. Imprisonment upto 6 months or fine upto Rs.10,000 or both. Imprisonment upto 7 years with fine upto Rs.2,00,000 and on continuation fine @ Rs.5,000 per day. Imprisonment of 10 years when contravention continues for one year.

EMPLOYMENT EXCHANGES (COMPULSORY NOTIFICATION OF VACANCIES) ACT, 1959 & THE RULES
CHECK L IST When Act is not applicable Any employment in agriculture, horticulture etc. Furnishing domestic service. Any employment in information and Any employment,returns the total duration of which is less than three months. Any employmentin to do establishment in The employer every unskilled office work. sector in that State or area shall public Any furnish such information with the staff employment connected or return as of Parliament. may be prescribed in relation to Sec. vacancies that have occurred or are 3 about to occur in that establishment, to such employment exchanges as may be prescribed. Secs. 5

Object of the Act

Applicability of the Act

By notification in the Official To provide for the Gazette, appoint in this compulsory behalf for such State and Notification of vacancies to Employment Exchanges notification of different dates may be vacancies to appointed for different states Before filling up any vacancy as prescribed. employment or for different areas of a Employer not obliged to recruit the person through employment exchanges. State. exchange. To notify the vacancies to such employment exchanges as may be prescribed. Secs. 4

Time limit for notification of vacancies & selection Atleast 15 days before the applicants will be interviewed or tested. Employer to furnish the result of selection within 15 days. 5 Rules

Submission of Returns Quarterly in Form ER-I BIENNIAL Return Form ER-II Within 30 days by 30th June, 31st March, 30th September & 31st December. Rule 6

PENALTIES
An employer contravening the provisions of Sec.4(1) or (2). Fine upto Rs.500 for first offence and for every subsequent offence fine Rs.1000. If any person Required to furnish any information or return Refuses or neglects to furnish such information or return, or Furnishes or causes to be furnished any information or return which he knows to be false, or Refuses to answer, or gives a false answer to any question necessary for obtaining any information required to be furnished under section 5; or

INDUSTRIAL DISPUTES ACT, conferred by section 6; he shall be Impedes the right of access to relevant records or documents or the right of entry1947 punishable for the first offence with fine upto Rs.250 and for every subsequent offence with fine upto Rs.250 and for Object of the Act every subsequent offence with fine upto Rs.500. Rules Provisions for investigation and settlement of industrial disputes and for certain other purposes. 7
R igh t of a W ork m a n d urin g P en de nc y Important Clarifications Power of Labour Court to give of Pro c eed in gs in H ig h I n d u s t r y has attained wider meaning than defined except Appropriate Relief Cou rt for domestic employment, covers from barber Labour Court/Industrial Tribunal can Employer to pay last drawn wages to shops to big steel companies. Modify the punishment of dismissal or reinstated workman when proceedings Sec.2(I ) discharge of workmen and give appropriate challenging the award of his W o r k s C o m m it t eJoint Committee with equal number of relief including reinstatement. e Sec.11A Persons Bound by Settlement reinstatement are pending in the higher employers and employees representatives for discussion of Period of Operation of When in the course of conciliation Courts. Sec.17B certain common problems. Sec.3 Settlements and proceedings etc., all persons working or C o n c i l i a t i o n is an attempt by a third party in helping to Awards joining subsequently. settle the disputes Sec.4 A settlement for a period as A d j u Laya offn& Payment Court, Industrial Tribunal or Otherwise than in course of settlement d ic tio Labour of Compensation agreed by the parties, or upon the parties to the settlement. National Tribunal to hear for Laying off the dispute. Conditions and decide Period of six months on signing Sec.18 S e c s . 7 ,refusal 7 B inability of an employer to provide Failure, 7 A & or of settlement. work due to An award for one year after its Notice of Change Shortage of coal, power or raw material. Prio r Pe rm iss io n fo r L ay o ff 21 days by an employer to workmen Accumulation of stocks. When there are more than 100 about changing the conditions of service Breakdown of machinery. workmen during proceeding 12 months. as provided in Ivth Schedule. Sec.9A S e c .25-M Natural off Compensation calamity. Sec.25-C Lay Without giving to the employer notice of strike, as & Lock Outs Prohibition of Strikes Payment of wages except for hereinafter provided, within six weeks before striking. During the pendency of proceedings before a Labour Court, intervening weekly holiday Within fourteen days of giving such notice. Tribunal or National compensation 50% of total or basic Before the expiry of the date of strike specified in anyTribunal and two months, after the conclusion of such such wages and DA for a period of lay off notice as aforesaid. proceedings. upto maximum 45 days in a year. During the pendency of any conciliation proceedings During the pendency of arbitration proceedings before an before a Sec.25-C conciliation officer and seven days after the conclusion of arbitrator and two months after the conclusion of such Prior Permission by the Govern ment for Retrenchment When there are more than 100 (in UP 300 or more) workmen during preceding 12 months. Three months notice or wages thereto. Form QA Proh ibition of unfair labour Compensation @ 15 either wages. practice days by employer or workman or a trade union as stipulated in fifth sch edule Both the employer and the Union can be

such proceedings. proceedings, where a notification has been issued under SubSection(3A) of section 10A During the pendency of conciliation proceedings before a Board and seven days after the conclusion of such During any period in which a settlement or award is in operation, in respect of any of the matters covered by the settlement or award. proceedings. Co nd it io ns of servic e etc . to rem a in u ncha ng ed un der ce rta in c irc um sta n ce s du rin g pe nd en c y of pro c ee d in g s Sec s.2 2& 23

Not to alter to the prejudice of workmen concerned the condition of service. To seek Express permission of the concerned authority by paying one months wages on 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, dismissing o discharging or punishing a workman. c . 3 3 Se

C lo su re o f a n Un de rta kin g 60 days notice to the labour authorities for intended closure in Form QA.e c . 2 5 F F A S Prior permission atleast 90 days before in Form O by the Government when there are 100 ore more workmen during preceding 12 months (in UP 300 or more workmen) Sec.25-O

Retrenchment of Workmen Compensation & Conditions Workman 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. Sending Form P to Labour Authorities.

Co nd it io ns of servic e etc . to rem a in u ncha ng ed un der ce rta in c irc um sta n ce s du rin g pe nd en c y of pro c ee d in g s Not to alter to the prejudice of workmen concerned the condition of service. To seek Express permission of the concerned authority by paying one months wages on dismissal, discharge or punish a protected workman connected with the dispute.

PENALTIES Offence
Sec.25-U 26 27 28 29 30 31A 31

Imprisonment of upto 6 months or with fine upto Rs.3,000. Committing unfair labour practices Imprisonment upto one month or with fine upto Rs.50(Rs.1000 for lock-out) or wit Illegal strike and lock-ourts both. Instigation etc. for illegal strike or lock-outs. Imprisonment upto 6 months or with fine upto Rs.1,000 IN and lock-outs. EMPL OYMENT Giving financial aid to illegal strikes DUSTRIALImprisonment for 6 months or with fine upto Rs.1,000 Breach of settlement or award Imprisonment upto 6 months or with [Link] continuity of offence fine uptoRs.200 (STANDING ORDERS) ACT, 1946 & THE RULES per Disclosing confidential information pertaining to Sec.21 day Closure without 60 days notice under Sec.25 FFAImprisonment upto 6 months or with fine upto Rs.1,000 Imprisonment upto 6 months or with fine upto Rs.5,000 Contravention of Sec.33 pertaining to change of conditions of CHECK-LIST Fine upto Rs.100 Service during pendency of dispute etc. Imprisonment upto 6 months or fine upto Rs.1,000. When no penally is provided for contravention

To seek approval of the authority by paying one months wages before altering condition of service, dismissing or discharging <Punishment or punishing a workman.e c . 3 3 S

Applicability of the Act Every industrial establishment wherein 100 or more (in many States it is 50 or more). Any industry covered by Bombay Industrial Relations Act, 1946. Industrial establishment covered by M.P. Industrial Conditions Employment for Certification of (Standing Orders) Standing Act, 1961. Orders Every matter toSec. set be 1 out as per Schedule and Rule 2A. The standing orders to be in conformity with the provisions of the Act. Submissions of Draft Standing Orders

Matters to be provided in Standing orders

Classification of workmen, e.g., whether permanent, temporary, apprentices, probationers, or badlis. Manner of intimating to workmen periods and hours of work, holidays, pay-days and wage rates. Shift working. Attendance and late coming. Conditions of, procedure in applying for, and the authority which may grant, leave and holidays. Requirement to enter premises by certain gates, and liability to search. Closing and re-opening of sections of the industrial establishments, and temporary stoppages of work and the right and liabilities of the employer and workmen arising therefrom. Termination of employment, and the notice thereof to be given by employer and workmen. Suspension or dismissal for misconduct, and acts or omissions which constitute misconduct. Means of redressal for workmen against unfair treatment or wrongful exactions by the employer or his agents or servants. Date of Posting of Standing ServiceProcedure for relating to service card, token tickets, certification of service, Record Matters Operation of Orders Certification of Standing change of residential address of workers and record of age Confirmation Age of Standing Orders retirementOrders Medical aid in case of Accident Medical Examination Secrecy Exclusive Transfer The text of the standing Certifying service. Officer to forward On the date of orders as finally certified a copy of draft standing expiry of 30 days Secs.2(g), 3(2) and be posted shall prominently Rule 2A orders to the trade union or from certification or in English or in the in the absence of union, to on the expiry of 7 language understood by the workmen of the industry. days from majority of workmen on The trade union or the other authentication of special board at or near the representatives, as the case Standing Orders. entrance for majority of may be, are to be heard. Temporary application Payment of Subsistence Allowance to the workers. Sec.5 of Model Standing Sec. 7 Suspended Workers Sec. 9 Orders At the rate of fifty per cent, of the wages which the workman Temporary application of was entitled to immediately proceeding the date of such mod standing orders shall suspension, for the first ninety days of suspension. be deemed to be adopted At the rate of seventy-five percent of such wages for the till the standing orders as remaining period of suspension if the delay in the completion submitted are certified. of disciplinary proceedings against such workman is not directly Sec.12-A attributable to the conduct such workman. Sec.10-A

Additional Matters

Within six months from the date when the Act becomes applicable to an industrial establishment. Five copies of the draft Standing Orders are to be submitted to the Certifying Officer under the Act. PENALTIES FailureSec.3 of employer to submit draft Standing Orders fine of Rs.5000 and Rs.200 for every day on continuation of offence. Fine of Rs.100 on contravention and on continuation of offence Rs.25 for every day. Coverage of the Act MATERNITY Object of the Act C o n d i t i o n s f o r e l i g i b i li t y o f Upon all women employees either employed directly To protect the dignity of benefits BENEFIT except 1961 or through contractor ACT, domestic women motherhood and the Women indulging temporary of CHECK LIST employees employed in mines, factories, dignity of a new persons unmarried are eligible for plantations and also in other establishments if the birth by providing for the maternity benefit when she is State Government so decides. Therefore, if the full and healthy expecting a child and has worked State Government decides to apply this Act to maintenance of the for her employer for at least 80 women employees in shops and commercial woman and her child at days in the 12 months establishments, they also will get the benefit of this this important time when immediately proceeding the date Act. Bihar, Punjab Haryana, West Bengal, U.P., she is not working. of her expected deliverye c . 5 . S Orissa and Andhra have done so.

Discharge or dismissal of a woman employed during or on account of such absence or to give notice or dischargeemployer cannotsuch a day her the notic Her or dismissal on discharge that expire during such absence or to very her disadvantage. or change her conditions of Discharge or dismissal during or on account of such absence or to give notice of discharge or dismissal on such a day thatshe isnotice will expire during service while the on maternity absence, or to vary to her disadvantage any of the conditions of her service. leave. At the time during her pregnancy, if the woman but for such discharge or dismissal would have been entitled to maternity benefit or medical Sec. [Link]. bonus, Not barred in case of dismissal for cross misconduct. Sec.

Conditions for eligibility of Cash Benefits benefits Leave with average pay for six weeks before the delivery. Leave with average pay for six weeks after the delivery. Ten weeks before the date of her A medical bonus of Rs.25 if the employer does not provide free medical care to the woman. expected delivery, she may ask An additional leave with pay up to one month if the woman shows proof of illness due to the employer to give her light the pregnancy, delivery, miscarriage, or premature birth. work for a month. At that time she should produce a certificate In case of miscarriage, six weeks leave with average pay from the date of miscarriage. that she is pregnant. N on Cash B en efits/Privilege Light work for ten weeks (six weeks plus one month) before the date of her expected delivery, if She should give written notice to the she employer about seven weeks asks for it. before the date of her delivery Two nursing breaks in the course of her daily work until the child is 15 months old. that she will be absent for six No discharge or dismissal while she is on maternity leave. weeks before and after her No change to her disadvantage in any of the conditions of her employment while on maternity leave. delivery. She should also name Pregnant women discharged or dismissed may still claim maternity benefit from the employer. the person to whom payment will Leave for right under the Act for E x c e p t io n : Women dismissed for gross misconduct lose their illness arising out of Maternitybe made in case she can not take Leave for Miscarriage it herself. pregnancy etc. etc. Benefit & Tubectomy Operation She should take the payment for the A woman suffering from illness arising Leave with wages at the rate of maternity first six weeks before she goes on our of pregnancy, delivery, premature benefit, for a period of six weeks leave. birth of child (Miscarriage, medical She will get payment for the six immediately following the day of her termination of pregnancy or tubectomy weeks after child-birth within 48 miscarriage or her medical termination of operation) be entitled, in addition to the hours of giving proof that she has pregnancy. period of absence allowed to her leave had a child. Entitled to leave with wages at the rate of with wages at the rate of maternity She will be entitled to two nursing maternity benefit for a period of two breaks of fifteen minutes each in benefit for a maximum period of one weeks immediately following the day of the course of her daily work till month. Sec. her tubectomy operation. Prohibition of dismissal during absence of pregnancy her child is fifteen months old. 10

Failure to Display Extract of Act Imprisonment may extend to one year or fine.

Forfeiture of maternity benefit If permitted by her employer to absent herself under the provisions of section 6 for any period during such authorized absence, she shall forfeit her claim to the maternity benefit for such period. For discharging or dismissing such a woman during or on account of her absence from work, the employer shall be punishable with imprisonment which shall not be less than 3 months, but it will extend to one year and will find, but not exceeding Rs.5,000. Sec. 18

MINIMUM WAGES ACT, 1948

CHECK LIST

Object of the Act To provide for fixing minimum rates of wages in certain employments Minimum Rates of Fixing Hours for Wages Normal Working Such as Basic rates of wages etc. Variable DA and Shall constitute a normal Value of other concessions working day inclusive of etc. Sec. 4 more specified one or intervals. To provide for a day of rest in every period of seven days with remuneration. To provide for payment for work on a day of rest at a rate not less than the overtime rate.. Sec. 13

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 minimum rates 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 employees for piece work or Procedure for fixing and Composition of Payment of time rate Sec. 3 O v e r t i m e workers. revising Minimum Rates of Committee Minimum Rates To be fixed by the hour, by the Wages Representation of of Wages day or by such a longer wageAppointing Committee issue of employer and employee in Employer to pay to every period works on any day in excess Notification etc. Sec. 5 schedule employer in employee engated in of the number of hours equal number and schedule employment at a constituting normal working day. rate not less than independent persons not minimum rates of wages Payment for every hour or for part rd exceeding 1/3 or its total as fixed by Notification by of an hour so worked in excess at number one such person not making deduction the overtime rate double of the to be appointed by the other than prescribed. ordinary rate of (1 times or for Chairman. Sec.12 agriculture labour) Sec. 9 Sec. 5

W ages of w orkers w ho w orks for less than no rm a l w o rkin g day s Save as otherwise hereinafter provided, be entitled to receive wages in respect of work done by him on that day as if he had worked for a full normal working day. Sec.15 W ages for tw o cla ss of w ork M ainten an ce of reg isters a n d reco rd s Where an employee does two or more Register ofF i n e s Form I Rule 21(4) classes of work to each of which a different AnnualR e t u r n s Form III Rule 21 (4-A) minimum rate of wages is applicable, wages Register forO v e r t i m e Form IV Rule 25 at not less than the minimum rate in respect Register ofW a g e sForm X,W a g e s s l i p Form XI,M u s t e r R o lForm V Rule 26 l of each such class. Sec. 16 kRepresentation of register for m s b yyear Rule e e s three e m p l o y 26-A Sec. 18 M i n i m u m t i m e r a t e w a g e s f o r p ie c e w o r Clai Not less than minimum rates wages as fixed . Sec. 17
PENALITIES

To be filed by before authority constituted under the Act within 6 months. Compensation upto 10 times on under or non-payment of wages Sec. 16
Punishment
Imprisonment upto 6 months or with fine upto Rs.500/-

Offence
For paying less than minimum rates of wages

Sec. 20

For contravention of any provisions pertaining to fixing hours for normal working day etc.

Imprisonment upto 6 months or with fine upto Rs.500/-

SALES PROMOTION EMPLOYEES (CONDITIONS OF SERVICE) ACT, 1976 & THE RULES
CHECKLIST

Object of the Act

To regulate certain conditions of service of sales promotion employees in certain establishments. Applicability of the Act Whole of India with effect from 6.3.1976 Applicability of other Acts Workmens Compensation Act, 1923 Industrial Disputes Act, 1947 Minimum Wages Act, 1948 Maternity Benefit Act, 1961 Payment of Bonus Act, 1965 Payment of Gratuity Act, 1972 Maintenance of register A register of sales promotion employees in Form B. Service Books for every employee in Form C A register of service books in Form D Leave account of each employee in Form E. Sec. 7 Rule 23 Wages for weekly day of rest Entitled to wages on weekly days of rest as if he was on duty. Rule 7 Leave Earned leave and cash compensation on earned leave not availed of. On full wages for not less than 1/11th of the period spent on duty. Leave on medical Certificate On one-half of the waves for not less than 1/18th of the period of service. Cashable on voluntary relinquishment or termination other than by way of Number punishment. of holidays in a year 10 in calendar year Sec.4 Rule 4 Compensatory holidays Within 30 days of the day when he was required to work. Rule 5 Application for leave When other than casual leave, not less than one month before commencement of leave except for urgent or unforeseen circumstances. Rule 9 Holidays intervening during the period of leave Except casual leave grantged or day of weekly rest, other holidays shall be part of leave. Rule 12 Maximum limit upto which earned leave Can be accumulated 180 days of which the employee can avail himself 90 days at a time. Encashment of leave 120 days. Sec.14 Issue of Appointment Letter in Form A Within three months from the commencement of the Act and in other case on appointment. Sec.5 Rule 22 Wages for holidays To be entitled for wages on all holidays as if he was on duty. Rule 6 Recording of reason for refusal or postponement of leave. Medical leave Rule 10 On production of medical Casual leave certificate. Rule 15 15 days in a calendar year. Rule 15

Affixing of holidays to leave Premixing or suffixing of any leave not permissible Quarantine leave Upto 30 days on the recommendations of authorised medical attendant or Public Health Officer. CHECKLIST

Extraordinary leave At the discretion of the employer Rule 17 PENALTY On contravention of provisions relating to Leave Issue of Appointment Letter or Maintenance of Registers fine upto Rs.1000 Sec. 9

TRADE UNIONS ACT, 1926

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, by subscribing their names to the rules of the trade union and its compliance. There should be at least 10%, or 100 of the work-men, whichever is less, engaged or employed in the establishment or industry with which it is connected. It has on the date of making application not less than 7 persons as its members, who are workmen engaged or employed in the establishment or industry with which it is [Link] of Minimum requirements for Registration membership of trade union Not less than 10% , or 100 of the workmen, whichever is less, subject to a minimum of 7 , engaged or employed in an establishments etc. Sec. 9A If the certificate has been obtained by fraud or mistake or it has ceased to exist or has wilfully contravened any provision of this Act. If it ceases to have the requisite number of members. Sec. 10 of bearers Registration of trade Union Prescribed form with following details. Names, occupations and address of the members place of work. Address of its head office; and Names, ages, addresses and occupations of its office bearers.

Criminal conspiracy in trade disputes

Sec. 5

Disqualification of office Trade Union

No office bearer or member of a registered trade union shall be liable to punishment under sub section (2) of conspiracy u/s 120B of IPC in respect of any agreement made between the members for the purpose of furthering any such object of the Trade Union. Sec. 17

Returns

If one has not attained the age of 18 years. Conviction for an offence involving moral turpitude. Not applicable when Sec. 21-A

years have elapsed.

Annually to the Registrar, on or before such date as may be prescribed, a general statement, audited in the prescribed manner, of all receipts and expenditure of every registered Trade st Union during the year ending on the 31 December. Sec. 28 Offence Punishment Fine upto Rs.500. On continuing default, additional fault, Rs.5 for each week (not exceeding Rs.50). Fine upto Rs.500. Fine upto Rs.200.

Penalties

U/s 31

For making false entry in or any omission in general statement required for sending returns. For making false entry in the form. Supplying false information regarding Trade Union

U/s 32
CHECKLIST

PAYMENT OF BONUS ACT, 1965 & THE RULES

Applicability of Act Every factory where in the aid of power or Establishment Establishment includes Departments, undertakings and branches, etc.

10

or more persons are employed with

An establishment in which 20 or more persons are employed without the aid of power on any day during an accounting year

Separate establishment Computation of available surplus Components of Bonus If profit and loss accounts are prepared and maintained in respect of any such department or undertaking or branch, then such department or undertaking or branch is treated as a separate establishment. Computation of gross Sec.3 profit For banking company, as per First Schedule. Others, as per Second Schedule Eligible Employees Sec.4

Income tax and direct taxes as payable. Salary or wages includes Depreciation as per section 32 of Income dearness allowance but no Tax Act. other allowances e.g. overDevelopment rebate, investment or time, house rent, incentive development allowance. or commission. Sec.5 Sec.2(21) 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. Eligibility of Bonus Payment of Minimum Bonus Secs. 9 & 18.

Employees drawing wages upto Rs.3500 per month or less. 8.33% of the salary or Rs.100 An employee will be entitled only For calculation purposes (on completion of 5 years after 1st Rs.2500 per month when he has worked for 30 Accounting year even if there is no maximum will be profit) working days in that year. taken even if an Sec.10 Sec. 8 employee is drawing Sec. 8 Time Limit for Set-off and upto Rs.3500 per Payment of Bonus Set-on month. Within 8 months from the close of As per Schedule IV. Sec.12 accounting y ear. Sec. 19 Sec. 15 Note: The proposal to enhance Maintenance of Registers and Records etc. the existing ceiling of Rs.3500 is under active consideration A register showing the computation of the allocable surplus referred to in clause (4) of section 2, in form A. by the Govt.

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, the deductions 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 4 Sec.26, Rule Institutions, Chambers of Commerce, Social Welfare Institutions, Building Contractors, etc. etc. Sec.32.
PENALTY
For contravention of any provision of the Act or the Rule Upto 6 months or with fine upto Rs.1000. Sec.28

Sec. 1 Applicability Every factory, mine, oil field, plantation, port, railways, company, shop, establishment or educational institutions employing 10 or Calculation more employees Piece-rated Sec. employee 1 Calculation @ 15 days wages for every completed year on an average of 3 months wages Seasonal employee

PAYMENT OF GRATUITY ACT, 1972 & THE RULES CHECKLIST

Sec. 2(s)

Wages for Calculation @ 15 days wages for every completed year as if the month comprises of 26 days at the last drawn wages. Display of Notice

Sec. 2(e) Employee All employees irrespective of status or salary Entitlement On completion of five years service except in case of death or disablement Qualifying period On rendering of 5 years service, either termination, resignation or retirement.

@ 7 days wages for every completed year of service.

Rule On conspicuous 4 place at the main entrance in English language or the language understood by majority of employees of the factory, etc.

Sec. 4(3) Sec.6 Rule 6 Nomination To be obtained by employer after expiry of one years service, in Form F Sec.8 Rule 8 Recovery of Gratuity To apply within 30 days in Form I when not paid within 30 days CHECKLIST Applicability of Act Factory industrial Establishment Tramway service or motor transport service engaged in carrying passengers or good or both by road for hire or reward. Air transport service Dock, Wharf or Jetty Inland vessel, mechanically propelled Mine, quarry Employees Coverage of or oil-field Plantation Workshop or other establishment Drawing average wage upto etc. Rs.6500 pm as amended w.e.f. Maximum Ceiling

Rule 9 Mode of payment Cash or, if so desired, by Bank Draft or Cheque Sec. 13 Protection of Gratuity Cant be attached in execution of any decree Rule 9 Penalties Imprisonment for 6 months or fine upto Rs.10,000 for avoiding to make payment by making false state-ment or representa -tion. Imprisonment not less than 3 months and upto one year with fine on default in comply-ing with the provisions of Act or Rules.

Rs.3, 50,000

Sec. 4(6) Forfeiture of Gratuity On termination of an employee for moral turpitude or riotous or disorderly behaviour. Wholly or partially for wilfully causing loss, destruction of property etc.

PAYMENT OF WAGES ACT, 1936

Wages to be paid in Object of the Act current coins or To regulate the payment of wages of certain currency notes classes of employed persons Time of payment of wages All wages shall be paid in The wages of every person employed be current coins or currency paid. notes or in both. When less than 1000 persons are employed After obtaining the shall be paid before the expiry of the 7th day authorization, either by of the following month. cheque or by crediting the When more than 1000 workers, before the wages in employees bank expiry of the 10th day of the following month. Account Sec. 6 Sec. 5 Deduction made from wages Deduction for absence Deductions such as, fine, deduction for 6.9.05. from duties for amenities and services supplied by the unauthorised Fines as prescribed by employer, advances paid, over payment of absence Not to imposed unless the wages, loan, granted for house-building or employer is given an opportunity to On contravention of S.5 (except sub-sec.4),other S.8 (except income tax payable, in which may extend to Rs.5000. S.7, purposes, Fine not less than Rs.1000 Absence for whole or any show cause Ss.8),record in the register and Secs.11 to 13. On subsequent conviction pursuance of the order of the Court, PF fine not lessthe day part of than Rs.5000, may To S.9, S.10 (except Ss.2) extend to Rs.10,000. On contributions, cooperative societies, premium contravention moreS.5(4), S6, If ten or S.4, persons Sec.8 S.8(8), S.10(2) any fund less than Rs.1000. may for Life Insurance, contribution to or S.25 fine notabsent without reasonable extend to Rs.5000. On subsequent On conviction fine not constituted by employer or a trade union, cause, deduction of wages Deduction for damage or loss less. recovery of losses, ESI contributions [Link]. upto 8 days. Sec. Deductions for service For failing to maintain registers or records; or 7 rendered Fine of an employee Wilfully refusing or without lawful excuse For defaulttoor negligence which shall not be less than Rs.1000 but may extend neglecting Sec. 9 When accommodation amenity or or resulting into loss. Show cause notice has to conviction fine not less than to Rs.5000 On record furnish information or return; be any Rs.5000, maySec.10 to Rs.10,000. extend service has been accepted by thebe furnishedgiven to the employee. Wilfully furnishing or causing to employee. or return which he knows to be false or For second or subsequent conviction, fine not less than information Sec.11 Rs.5000 but may extend to Rs.10,000 Refusing to answer or wilfully giving a false answer to any question necessary for obtaining any information required to be furnished under this Act. Wilfully obstructing an Inspector in the discharge of his duties under this Act; or Fine not less than Rs.1000 extendable Refusing or wilfully neglecting to afford an Inspector any Upto Rs.5000 On subsequent conviction fine reasonable facility for making any entry, inspection etc. Wilfully refusing to produce on the demand of an inspector not less than Rs.5000 may extent to Rs.10,000 any register or other document kept in pursuance of this Act; or preventing any person for appearance etc. On conviction for any offence and again guilty of Imprisonment not less than one month extendable upto Contravention of same provision. six months and fine not less than Rs.2000 extendable upto Rs.15000. Failing or neglecting to pay wages to any employee Additional fine upto Rs.100 for each day.

WORKMENS COMPENSATION ACT, 1923

CHECKLIST Applicability All over India Sec.1 Coverage of Workmen All workers irrespective of their status or salaries either directly or through contractor or a person recruited to work abroad. Sec.1(3) Employers liability to pay compensation to a workman On death or personal injury resulting into total or partial disablement or occupational disease caused to a workman arising out of and during the course of employment. Sec.3 When an employee is not liable for compensation

Amount of compensation Where death of a workman results from the injury An amount equal to fifty per cent of the monthly wages of the deceased workman multiplied by the relevant factor on 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 or an amount of ninety thousand rupees, whichever is more Procedure for calculation Higher the age Lower the compensation Relevant factor specified in second column of Schedule IV giving slabs depending upon the age of the concerned workman. Example : In case of death. Wages Rs.3000 PM Age 23 years Factor as schedule IV Rs.19.95 Notice Wages Accident Amount of compensation Rs.329935 In case of total wages are When the monthly disablement Rs.395910. Sec. 4 more than Rs.4000 per month it As soon as will be deemed Rs.4000. Practicable Sec.4 Exh.b Sec. 10 Report of accident Rule 11 Form EE Report of fatal Accident and Serious Injury within 7 days to the Commissioner (not application when ESI Act applies). Sec.10B PENALTY

In respect of any injury which does

result in the total or partial disablement of the workman for a period exceeding three days. In respect of any injury, not resulting in death or permanent total disablement caused by an accident which is directly attributable to The workman having been at the time thereof under the influence of drink or drugs, or Willful disobedience of the workman to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of workmen, or Willful removal or disregard by the workman of any safety guard or other Bar upon contracting out device which he knew to have been provided for the purpose of securing the Any workman relinquishing his right for safety of workman. personal injury not permissible. Sec.3(a) & (b) Sec.14

In case of default by employer Deposit of Compensation

50% of the compensation amount + interest to be paid to the workman or his dependents as the case may be. Within one month with the Compensation Commissioner Sec.4A