Professional Documents
Culture Documents
&
Labour Compliances
In
1
ACKNOWLEDGEMENT
And at last I am thankful to all divine light and my parents, who kept my
Motivation and zest for knowledge always high through the tides of time.
2
CERTIFICATE OF ORIGINALITY
This is to certify that the project entitled Statutory & Labour compliances
in Reliance Communications, being submitted for the partial fulfillment
of degree of M.B.A 2009-2011, is a record of work carried out by Atul
Sharma under my guidance and supervision.
This is to further certify that the student has attended the Reliance
Communications, Lucknow for the 06 weeks after the second semester
theory exams. His work has been satisfactory and commendable.
Ajit Srivastava
IR Head & Project Head Date:
I.R. Department
Reliance Communication. Place:
CERTIFICATE OF COMPLETION
3
This is to certify that Javed Ahmad, a bonafide student of MBA- HR&IR
3rd semester of Lucknow University, Lucknow, has undergone training from
15th May 2010 to 15st July 2010 at Reliance Communications, Lucknow
under my specialized guidance and was working on project entitled
“Statutory & Labour Compliances in Reliance Communications.”
DECLARATION
4
I, Atul Sharma, hereby declare that the report of the project entitled
Statutory & Labour Compliances in Reliance Communications has not
been presented as a part of any other academic work, to get my degree or
certificate, except Lucknow University, Lucknow for the fulfillment of the
degree of Master of Business Administration.
Atul Sharma
PREFACE
5
These days institutes have started giving more stress on the management
training , as it is the interface of a management student with the culture of
the corporate world and it also gives the first hand experience to use the
knowledge acquired by them in the corporate world.
My institute has also been looking in the same direction and is determined
to produce quality students who have a balanced knowledge of both
theoretical aspects and the practical knowledge as well. In the same context I
had to undergo a summer training of 08 weeks in a company.
6
COMPANY’S
PROFILE
HISTORY
7
Reliance communication is the outcome of the late visionary Dhirubhai
Ambani’s (1932-2002) dream to herald a digital revolution in India by
bringing affordable means of information and communication to the
doorsteps of India’s vast population.
VISION
8
Reliance Communications envisions a digital revolution that will bring
about a New Way of Life, A Digital Way of Life, For a New India.
PEOPLE MANAGEMENT
9
"We bet on people" said Dhirubhai Ambani, our legendary founder. This is
at the core of Reliance Communications’ Business philosophy. Reliance
Communications believes in hiring world-class talent and supporting them
with an enabling organizational framework.
CHAIRMAN'S PROFILE
10
Anil Dhirubhai Ambani
EDUCATION
• Bachelor of Science, University of Bombay.
• MBA from the Wharton School, University of Pennsylvania, USA.
CAREER
• Joined Reliance in 1983,as co-chief executive officer. Has to his credit
an innovation in the Indian capital markets.
• Pioneered India’s a first Forays into overseas capital markets with
international public offerings of global depository receipts,
convertibles and bonds.
• Directed Reliance in it’s efforts to raise, since 1991,around US $ 2
billion overseas financial markets, with the 100 year. Yankee bond
issue in January 1997 high point of his endeavors.
• With an investment of over Rs.36,000 crore (US $ 9 billion) in
petroleum, petrochemicals, power generation, telecommunication
11
services and a power of three-year time frame, he has esteemed the
Reliance Group to it’s current leading textiles-petroleum-
petrochemicals-power-infocom-telecom player.
MEMBERSHIP
• Wharton Board of Overseers, The Wharton School, USA
• Central Advisory Committee, Central Electricity Regulatory
Commission
• Board of Governors, Indian Institute of Management, Ahmedabad
• Board of Governors Indian Institute of Technology, Kanpur
• In June 2004, he was elected for a six-year term as an independent
member of the Rajya Sabha, Upper House of India's Parliament a position
he chose to resign voluntarily on March 25, 2006.
12
• Selected by Asia week magazine for its list of 'Leaders of the
Millennium in Business and Finance' and was introduced as the
only 'new hero' in Business and Finance from India, June 1999
HIS INSPIRATION
The strongest influence in Anil's life is his father, Shri Dhirubhai Ambani.
Here are a few quotes from the legend himself.
"Give the youth a proper environment. Motivate them. Extend them the
support they need. Each of them have infinite source of energy. They will
deliver."
"Growth has no limit at Reliance. I keep revising my vision. Only when you
dream it you can do it."
13
Reliance- Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group
founded by Shri Dhirubhai Ambani (1932-2002), runs among India’s top
three private sector business houses in terms of net worth. The group has
business interests that range from telecommunications (Reliance
communications Ventures Ltd.) to financial services (Reliance Capital Ltd.)
to the generation and distribution of power (Reliance Energy Ltd.)
RELIANCE INCLUDE:
RELIANCE HEALTH
14
Our focus is to provide a platform for ‘financial’ and ‘geographical’ access
to health. We hope to support existing initiatives while entering in areas that
have seen limited growth in India and we believe this will transform the
existing landscape.
With a net worth of Rs. 4123 crore and over 1, 65,000 shareholders, RCL
has established its presence as a leading player in the financial services
sector in the country. On conversion of outstanding equity instruments the
net worth of the company will increase to over Rs. 4,568 crores. RCL ranks
among the top 3 companies in the private financial services and banking
sector in the country in terms of net worth. RCL sees immense potential in
the rapidly growing financial services sector in India and aims to become a
dominant player in this industry and offer fully integrated financial services.
RELIANCE ENERGY
15
Reliance Energy Ltd. is India’s leading integrated power utility company in
the private sector. It has a significant presence in generation, transmission
and distribution of power in Maharashtra, Goa and Andhra Pradesh.
With the ushering in of the power sector reforms and in the new
environment of opportunity for the power sector, REL is a key player in this
transformation process. Reliance’s gas finds in KGD6 block in Krishna
Godavari basin which constitutes 60% of India’s present total gas
production, will provide an enormous opportunity to scale up power
generation capacities in India. With the new gas find, REL has the unique
advantage of integration from ‘well head to wall socket’.
REL and its affiliate power companies rank among the top 25 listed private
sector companies on major financial parameters. REL is part of the Reliance
industries India’s private sector company ranked among the world’s 175
largest companies in terms of net profit and the 500 largest companies in
terms of sales.
NETWORK
16
Telecommunication networks are the infrastructure for provisioning
Communications services. All businesses today are dependent on telecom to
continue their day-to-day operations. The range and quality of services that
can be provisioned is determined by the quality of the network deployed.
An interesting aspect of the network is the manner in which these fibers are
interconnected and deployed. Reliance's architecture is so fault-tolerant that
the chances of failure are virtually nil. Reliance's ring and mesh architecture
17
topology is the most expensive component to implement, but assures the
highest quality of uninterrupted service, even in the event of failure or
breakage in any segment of the network. Reliance has 77 such rings across
the country with at least three alternative paths available in metros.
Connected on this topology, the service has virtually no chance of disruption
in quality performance.
SWOT ANALYSIS
S – Strength
W – Weakness
O – Opportunity
T - Threats
18
Strengths Of The Company
19
• It has an opportunity to fulfill he needs of high speed data
transmission by using its broadband services.
• It has an opportunity to bind up the new upcoming generation
customers who are more interested in latest handsets and value added
services like – latest ringtones, GPRS, R-Connect, etc.
• New and attractive advertisements can create high demand for
Reliance.
20
LABOUR LAWS
21
Labour law (also known as employment or labor law) is the body
of laws, administrative rulings, and precedents which address the
legal rights of, and restrictions on, working people and their
organizations. As such, it mediates many aspects of the
relationship between trade unions, employers and employees. In
Canada, employment laws related to unionised workplaces are
differentiated from those relating to particular individuals. In most
countries however, no such distinction is made. However, there are
two broad categories of labour law. First, collective labour law
relates to the tripartite relationship between employee, employer
and union. Second, individual labour law concerns employees'
rights at work and through the contract for work. The labour
movement has been instrumental in the enacting of laws protecting
labour rights in the 19th and 20th centuries. Labour rights have
been integral to the social and economic development since the
industrial revolution
22
Labour law arose due to the demands of workers for better
conditions, the right to organise, and the simultaneous demands of
employers to restrict the powers of workers' many organizations
and to keep labour costs low. Employers costs can increase due to
workers organizing to win higher wages, or by laws imposing
costly requirements, such as health and safety or equal
opportunities conditions. Workers' organisations, such as trade
unions, can also transcend purely industrial disputes, and gain
political power - which some employers may oppose. The state of
labour law at any one time is therefore both the product of, and a
component of, struggles between different interests in society.
Labour law arose due to the demands of workers for better
conditions, the right to organise, and the simultaneous demands of
employers to restrict the powers of workers' many organizations
and to keep labour costs low. Employers costs can increase due to
workers organizing to win higher wages, or by laws imposing
costly requirements, such as health and safety or equal
opportunities conditions. Workers' organisations, such as trade
unions, can also transcend purely industrial disputes, and gain
political power - which some employers may oppose. The state of
labour law at any one time is therefore both the product of, and a
component of, struggles between different interests in society.
23
VARIOUS ACTS
APPLICABLE IN
RELIANCE
COMMUNICATIONS
24
• THE U.P. DOOKAN AUR VANIJYA ADHISHTHAN
ADHINIYAM,1962 (READ WITH U.P.
NIYAMAVALI,1963)
25
• THE APPRENTICES ACT, 1961
26
Contract Labour / Regulation & Abolition Act 1970:
27
no._____ ______ has been paid to the workman concerned in my
presence on_______at_________.”
Amenities such as canteens , Rest rooms , wholesome drinking
water , sufficient , no. of latrines & urinals and first aid facilities
required to be provided by contractor, to contract labour , if not
provided shall be provided by P.E. at the cost of contractor.
28
contract work is likely to continue for three months of more, the
contractor shall maintain rest room for the use of workers.
Copy of notice showing the wage period & place and time of
disbursement of wages displayed at site shall be sent to Principal
Employer under acknowledgement.
29
Every contractor shall issue employment card in prescribed
proforma to each worker within three days of employment and
on termination of employment issue a service certificate in the
prescribed format.
30
the rate of double the ordinary rate of wages in respect of
overtime working.
Every employer shall issue wage slip (in Form XI) to every
worker at least a day prior to the disbursement of wages.
31
The above registers/records are required to be preserved for 3
years from the date of last entry therein.
32
10.With the prior approval of District Magistrate of the area an
alternate close day maybe observed .A notice of all close days
and weekly holidays shall be displayed in a conspicuous place
in the establishment.
11.Every employee other than watchman or caretaker shall be
allowed holiday on every closed day which is a public holiday
and one weekly off day.
12.Every employee, in addition to public holidays, & weekly off
days, shall be entitled to 15 days earned leave for each
completed twelve months of service. Total period of leave
admissible at one time shall not exceed 45 days.
13.Watchman or caretaker in continuous employment for12
months shall be entitled for sixty days earned leave.
14.Employee in continuous employment for six months or more
shall be entitled for 15 days Earned leave in a year.
15.Every employee shall also be entitled for 10 days casual leave
in a year.
16.Wage period may be monthly, fort nightly, weekly and daily.
th
17. Where wage period is a month, wage shall be paid by 7 of the
33
24.The employer shall maintain following registers in the
prescribed proforma:
a) Attendance register
b) Register of wages
c) Register of deductions from wages
d) Register of leave
e) Register of fines.
ESI.Act 1948
34
Equal Remuneration Act 1976
35
salary or wages earned during that
accounting year.
4. Every employer is required to maintain following registers:
• Register showing
computation of allocable surplus (Form ‘A’
under the rules )
• Register showing set
on and set off of the allocable surplus ( Form
‘B’ )
• Register showing
details of the amount of bonus due to each
employee ( Form ‘C’ )
• Annual Return in
prescribed form (Form ‘D’) is required to be
submitted within 30 days after statutory time
limit of six months from close of accounting
year.
36
DETAIL STUDY
OF VARIOUS
LABOUR
LAWS
APPLICABLE
37
U.P. DOOKAN AUR VANIJYA
ADHISHTHANADHINIYAM, 1962
(READ WITH U.P. NIYAMAVALI,1963)
Salient Features
38
o Any clerical or other staff of a factory or industrial
establishment, which is not covered by the provisions
of the Factories Act,1948
o Any apprentice or a contract or piece-rate worker.
39
List of 8 Public Holidays
Republi
B’day
Of Dr. c
Ambedkar Day Holi
Parewa
List of
Idul
Indepen Public
dence Holidays
Day
Kartik Fitr.
Gandhi Purnim
Jayanti Diwali aaa
Parewa
40
Maintenance of register, records, etc.
As per provision of sec 32, rule 18, every employer shall maintain:
• Who is employing up to 10 employees, shall maintain a
register of attendance, payment of wages and leave facilities
in Form ‘CC’.
• Who is employing 10 to 25 employees, shall maintain a
register of attendance and wage in Form ‘G’, a register of
leave in Form ‘H’, a register of deduction in Form ‘D’.
Display of notices
41
MINIMUM WAGES ACT,1948
WITH CENTRAL MW RULES, 1950
AND UP MW RULES,1952
Salient features
42
• In relation to any other scheduled employment, the [State],
Government.
43
Payment of minimum rates of wages
1 2 3 4 5
UN 3451.72 132.75 3795.40 145.97
SKILLED
WORKER
SEMI 3934.97 151.34 4326.75 166.41
SKILLED
WORKER
SKILLED 4367.76 168 4802.64 184.71
WORKER
44
• As per provision of sec 13, no employer shall take more than 8
hours of duty from his/her employee.
• Employer shall provide a day of rest in every period of
seven days, with remuneration.
• As per provision of sec 14, where an employee, whose
minimum rate of wages is fixed under this act works for longer
period than fixed normal wage period shall be paid overtime.
The duration of work shall not exceed 8 hours in a day.
45
o Muster-roll- [FORM V]
o Register of wage and deductions – [FORM II]
o Over time register-[ FORM IV]
• It is to be noted that in a web world above registers will not be
maintained separately, as register prescribed in UP Shop act
suffices the purpose of the act.
• Every Employer shall issue a wage slip to his/her employee before 24
hours from the payment of salary/wage.
46
PROVISION OF CONTRACT LABOUR
(REGULATION & ABOLITION) ACT,
1970)
The object of the Act was to do away with the long practiced inhuman
exploitation of contract Labour prevailing in industries other Labour
oriented industrial & allied social setup. The preamble of the Act
suggests for :-
• To prohibit the employment of contract Labour and ,
• To regulate the working conditions of the contract Labour where
ever such employment is not prohibited.
Thus, the purpose of the Act is to abolish the contract system in the
industrial establishments & where ever it is not possible at one point of
time to go for regulation of the system in certain circumstances.
47
• ‘Contractor’ in relation to an establishment means a person who
undertakes to produce a given result for the establishment other than
a mere supply of goods or articles of manufacture to such
establishment.
48
from- III is required to maintain by the principal employer at his
establishment
49
Responsibility of Contractor
• Application for license in form-IV, in triplicate with form-TR-6
along with form –V & crossed Demand draft of the appropriate
amount towards security deposit @ of Rs.90/- per workmen &
license fee of the prescribed amount is to be submitted to the
licensing officer of the area on whose jurisdiction his contract work
executed.
• The license is issued for a period of 12 months from the date of
issue. It is renewable under Rule 29 by applying one month before of
its expiry. The fee for renewal is the same as that of grant of license.
• The Act also provides for grant of temporary license &
registration for the work of short duration.
• There is also a provision for grant of duplicate
license/registration incase of original license/registration is lost,
defaced or accidentally destroyed on payment of Fee of Rs.5/-
• On obtaining license the intimation for
commencement/Completion of the work will be given to the
Inspector in FORM-VI-A.
50
• Date of Payment
• Date of payment of unpaid wages
• Details of minimum wages payable & wages actually paid
• Name & Address of the Inspector.
• Notice should be displayed in English, Hindi & in the Local
Language understood by the majority of the workers.
• The Notice shall be correctly maintained in a clean & legible
condition.
The copy of the notice shall be sent to the Inspector and whenever any
changes occur the same shall be communicated to him forthwith
Payments of Wages
51
• Wages are to be paid to the worker direct & without any
deduction and shall be paid in presence of the principal Employer
Representative.
52
structure also. The urinal will be at the scale of one for male
worker up to 50 and one for female up to 50 employed.
• Washing Facilities: Separate & adequate screening facilities shall
be provided for male & Female Employees.
• First Aid Facilities: One first Aid box for 150 contact labour or
part thereof. The first aid box will be kept in charge of a first aid
trained person.
• Canteen Facilities : Wherein contract labour numbering 100 or
more and contract work likely to continue beyond six months
adequate canteen facilities are to be provided for the use of
contract labour
Periodical Returns
Half yearly return for the period ending 30th June & 31st December are
required to be submitted to the licensing officer of the area concerned
within 30 days after expiry of the half year.
Inspecting Inspectorate
• The Central & the State governments have appointed their officers
as INSPECTORS under the Act to carry out inspections for the
purpose of effective enforcement of the law. They have all powers
in this regards.
53
• PENALITIES: To secure effective enforcement the law provides
for punishments to the defaulters under section 22 to 25. The
violations of provision under this act are criminal offenses and tribal
by the criminal courts.
SALIENT FEATURES
• Applicability: The Act applies to 173 industries and classes of
establishment employing 20 or more persons as specified in schedule
1.But Central Govt. may, after giving 2 months notice apply the
provisions of this Act to any establishments employing the persons
less than 20.
• Important Definitions:
“Employer” means-
54
(i) In relation to a factory the occupier or
manager as per provision of Section 7, sub-section (1) (f) Factories
Act, 1948.
(ii) In relation to any other establishment, the person who or the
authorities which has the ultimate control over the affairs of the
establishment.
The employer shall pay the 12% of Basic Wages for the time being
payable to each of the employees and the employee’s contribution shall
be equal to the contribution payable by the employer in respect of
him /her. The Total Contribution shall be deposited in fund established
by the Act.
55
Penalties
Whoever for the purpose of avoiding any payments to be made by
himself under this Act/Scheme or of enabling any other person to avoid
such payments knowingly makes or causes to be made any false
statement shall be punishable with imprisonment for a term which may
extend to one year or with fine of 5000 Rs. or both.
56
EQUAL REMUNERATION ACT,1976
Article 39 of the Constitution envisages that the State shall direct its
policy, among other things, towards securing that there is equal pay for
equal work for both men & women. It means there should not be any
discrimination for Wages or Working Conditions the basis of sex.
Salient Features
Penalties
57
After the Commencement of this Act whosoever will Contravene the
provision of this Act shall be punishable with simple imprisonment for
a term which may extend to one month or fine which may extend up to
10,000 Rs. or both.
Important Definitions
58
Section 2A
59
• “Retrenchment” means the termination by the employer of the service
of workmen for any reason whatsoever.
Penalties
60
• Section 38- This Section provides provision to make rules to implement
the different provision of the Act through notification from appropriate
Govt.
61
Every other establishment in which 20 or more
persons are employed on any day during an accounting
year.
Establishment
62
It consists of
• Income Tax and Direct Taxes as payable.
• Depreciation as per Section 32 of Income Tax Act.
• Development rebate, investment or Development allowance.
Calculation of Bonus
Minimum Bonus
63
Maximum Bonus
Penalty
64
THE PAYMENT OF GRATUITY
ACT, 1972
Objective
65
• To every factory, mine, oilfield, plantation, port and railway
company.
• Every shop or establishment governed by the Shops and
Establishments Act of that state in which 10 or more persons
are employed or were employed on any day of the preceding
12 months and
• Any other establishment wherein 10 or more persons are
employed or were employed on any day of the preceding 12
months.
• This Act also extends to all the educational institutions in the
country having 10 or more employees and to all trust and
societies registered under the Societies Registration Act,
1860 employing 10 or more persons.
Exemption
66
• Superannuation or
• On retirement or resignation or
• On death or disablement due to accident or disease.
Continuous Service
What is Gratuity?
Payment of Gratuity
67
• Gratuity shall be payable to an employee on the termination
of his employment after he has rendered continuous service
not less than 5 years-
Superannuation or
On retirement or resignation or
On death or disablement due to accident or disease.
• For every completed year of services, the employer shall pay
gratuity to an employee at the rate of 15 days wages based on
the rate of wages last drawn by the employee concerned.
• The amount of gratuity payable to an employee shall not
exceed 3,50,000 Rs.
• For the purpose of computing the gratuity payable to an
employee who is employed, after his disablement, on reduced
wages, his wages for the period preceding his disablement
shall be taken to be the wages received by him during that
period.
• Any employee has a right to receive better terms of gratuity
under any award or agreement or contract with the employer.
Recovery of gratuity
Protection of gratuity
68
No gratuity payable under this Act to an employee employed in
any establishment, factory, mine, oilfield, plantation, port and
Railway Company, shall be liable to attachment in execution of
any decree or order of any civil revenue or criminal court.
Penalties
69
EMPLOYEE’S STATE INSURANCE ACT
& THE SCHEME ,1948
Objective
The main objective of this Act is to provide to the workers medical relief,
sickness cash benefits, maternity benefits to women workers, pension to
the dependents of decreased workers and compensation for fatal and other
employment injuries including occupational diseases, in an integral form
through a contributory fund.
70
Coverage of Employees
Drawing wages upto Rs. 15,000/- per month engaged either directly or
through contractor.
Employers’ 4.75%
Employees’ 1.75%
Contribution period
71
1st April to 30th September
Benefit period
If the person joined insurable employment for the first time, say on 5th
January, his first contribution period will be from 5th January to 31st
March and his corresponding first benefit will be from 5th October to
31st December.
PENALTIES
72
pay the same to the corporation which amounts to criminal breach of
trust.
The Supreme Court has held that a partner engaged for the work of the
factory or establishment and being paid monthly will not come within the
purview of an ‘employee’ as defined in section 2(9) of the ESI Act.
73
Employees’ State Insurance Corporation vs. Apex Engineering (P) Ltd.,
1997 LLR1097 (SC).
Managing Directors
Professional Consultants
The professionals engaged are of regular nature and being paid monthly,
hence they will be covered under the Scheme. However, the payment
made to labour consultants, lawyers, engineers, counsels, chartered
accountants would not constitute wages and no contribution is payable on
such amount.
74
Loaders & Unloaders
Merely because the loaders & unloaders have not been able to get the
benefit, it will not be a ground for non coverage under ESI Act.
For getting the Sickness Benefit, it is necessary that the insured person
should have paid the contribution for half the number of days in one
contribution period, only then the corresponding benefit period only and
not earlier. Some other benefit period only and not earlier. Some other
benefits like Disablement Benefit, Dependent Benefit, Medical Benefit
75
and Funeral Benefit are available to the insured person from day one of
his/her employment and the criteria of contribution period vis-à-vis
benefit period is not applicable in these benefits. Similarly, an insured
person is also eligible for vocational rehabilitation and physical
rehabilitation. From day one. For availing the Maternity Benefit, an
insured woman must have paid contribution for a minim of 80 days in
one or two consecutive contribution periods.
• Spouse.
• Minor legitimate or adopted child dependent upon the insured
person.
• Child who is wholly dependent on the earnings of insured person
and who is i) receiving education, till he or she attains the age of
21 years.ii) an unmarried daughter.
• An infirm child -Physical, Mental or Accidental-so long as the
infirmity lasts.
• Dependent parents “Medical Benefit to Families of Insured
Persons has been substituted an attested family photograph”.
76
Availability of Benefits- Even when contribution are
not paid
77
Contribution Period Corresponding Benefit Period
TO BE DEEMED AS WAGES
78
• Basic Pay.
• Dearness allowance.
• House rent allowance.
• City compensatory allowance
• Sickness Benefit.
• Extended Sickness Benefit for long term diseases like TB,
Leprosy etc.
• Enhanced Sickness Benefit for undergoing sterilization
operation for Family Planning.
79
MATERNITY BENEFIT ACT,1961
80
Non-Applicability of the Law
The act does not apply to any such factories/ other establishment to
which the provision of the ESI Act are applicable for the time
being. But where the factory/ establishment is governed under the
ESI act, and the woman employee is not qualified to claim
maternity benefit under sec-50 of the act because her wages exceed
Rs 3000 p.m.
Entitlement of Employees
81
Amount of Benefits
Notice of Claim
82
The notice may be given during the pregnancy or as soon as
possible, after the delivery. However, the failure to give the notice,
does not disentitle the woman to the benefits of the Act.
Obligation of Employers
83
• To prepare and maintain the prescribed registers, records and
muster rolls and submit the prescribed returns. Annual
Return should be submitted in the revised form.
Rights of employers
Rights of employees
Penalties
84
WORKMEN’S COMPENSATION ACT,
1923
Objective
Applicability
85
the employment. Thus the employer is liable to pay
compensation to the employee.
• Nothing herein contained shall be deemed to confer any
right to compensation on a workman in respect of any injury
if he has instituted in a civil court a suit for damages in
respect of the injury against the employer or any other
person and no suit for damages shall be maintainable by a
workman in any court of law in respect of any injury
86
Distribution of Compensation
87
Penalties
• Whoever-
Fails to maintain a notice book which he is required to
maintain under sub-sec 3 of Sec-10, or
Fails to send to the commissioner a statement which he
is required to send under sub-sec 1 of Sec-10-A, or
Fails to send a report which he is required to send under
Sec-10-B, or
Fails to make a return which he is required to make
under Sec-16, shall be punishable with fine which may
extend to 5000 Rs.
• No prosecution under this section shall be instituted except
by or with the previous sanction of a commissioner.
88
CHILD LABOUR(PROHIBITION AND
REGULATION) ACT, 1986
Objective
The Act extends to the whole of India. It repealed the previous Act
on child labour known as Employment of C Act, 1938.The Child
Labour Act of 1986 applies to all establishments and workshops
wherein any industrial process is carried on.
Under the Act, ’Child’ means a person who has not completed his
fourteenth year of age. Any such person engaged for wages,
whether in cash or kind, is a child worker.
89
Occupations and Processes where Child Labour is
Prohibited
90
The Occupations listed in Part B of the schedule are:
• Bidi making
• Carpet weaving
• Cement manufacturing
• Cloth printing
• Manufacture of fireworks
• Mica cutting and splitting
• Shellac manufacture
• Soap manufacture
• Tanning
• Building and construction industry
• Wool- cleaning
• Manufacture of slate pencils
• Manufacture of products from agate
• Cashew and cashew-nut decaling and processing
• Printing
• Soldering processes in electronic industries
Administrative Authority
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Regulation of conditions of Child Labour
Penalties
92
THE APPRENTICES ACT, 1961
Objective
The Act extends to the whole of India and appeals to areas and
industries specified by the Central Govt. The Act, does not apply
to the notified apprenticeship schemes.
Administrative Authority
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Who is an Apprentice?
Obligations of Employer
94
• The employer should make suitable arrangements in his
factory or establishment, for imparting practical training to
the apprentice engaged under him.
• The employer should pay a stipend to every apprentice,
during the period of training, at such rates and intervals as
may be prescribed.
• There is no obligation to provide a job to the apprentice
Obligations of Apprentices
Penalties
• An employer who
Engages any unqualified person as apprentice,
Fails to fulfill his obligations under the contract,
Does not engages the required number of apprentices,
Requires an apprentice to work overtime or to do any
work not connected with his training,
shall be punishable with imprisonment upto 6 months or with
fine or with both.
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• If any employer or other person contravenes any other
provision of the Act, he shall be punishable with fine upto
Rs. 500.
CHECKPOINTS
FOR VARIOUS
LABOUR
COMPLIANCES
96
CHECKPOINTS FOR LABOUR
COMPLIANCES
INDEMNITY BOND- This is not the legal binding. Just for the
benefit of the company, it is taken from each contractor against
each contract.
97
PF Returns,FORM 5- It is the detail of all the employees who
become members of Employee Provident Fund and Employee
Pension Scheme.
98
PF ANNUAL RETURN, FORM 3A 6A & 12A- In this
document, the amount of PF submitted with the details of wages
paid and PF deducted in the whole year is recorded.
99
Checkpoints for Labour Compliance
100
Signature of Contractor
(To be executed and notorised on Non Judicial Stamp Paper of Rs. 80)
INDEMNITY BOND
As per the terms and conditions relating to the compliance of various Labour Laws
for the contracting period, in the above referred Work Order / Letter of Intent /Letter
pf Commitment, the contractor has agreed to comply the provisions of all labour laws
applicable from time to time to him and / or his sub-contractor including PRWS /
gang workers engaged by the consent of the company.
The contracting party i.e. the contractor moved by the sentiments of justice and
humanity as well as by desire to secure the permanent peace and tranquility in and
amongst the labour community, agree and undertake the following.
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3. I further undertake to furnish the details as and when required in the prescribed
format in case of any accidents, which may result into man days / man-hours loss
including fatal accidents.
4. I have read and understood the guidelines relating to Labour Laws Compliance
applicable to contract Labour issued by the company and I here by expressly
undertake to comply with the requirements under a foresaid guidelines from the
commencement to the completion of contract work.
Place:
Seal & Signature of the Contractor
Date:
WITNESS: -
1 ………………………………………
2 ………………………………………
Accepted by:
Date:
WITNESS: -
1 ………………………………………
2 ………………………………………
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(To be executed and notorised on Non Judicial Stamp Paper of Rs. 10)
Before M/s_______________________________________________________,
Lucknow
Affidavit
For execution of this job we have engaged only__________ workers which is less
than 20, hence labour license is not required under the Contract Labour(R&A) Act. We
have recruited the workers locally, hence provisions of Inter-State Migrant Workmen
(Regulation of Employment and Conditions of Service) Act 1979 are also not applicable.
That the contents of this affidavit are true to best of my knowledge, nothing is
false and nor concealed therein.
Deponent
Deponent
Date:
Name of the Contractor and
Seal
Name of Contractor______________________________________________
103
Work Order no._______________________ Bill
period_____________to_____________
104
105
106
SUMMARY OF THE WAGES PAID AND P.F. CONTRIBUTION MADE
TOTAL
Admin Charges of P.F. @ 1.1 %
107
SUMMARY OF THE WAGES PAID AND P.F. CONTRIBUTION MADE
Name of the Contractor__________________________ Month______________
OTAL
108
Inspection Charges @ 0.01%
109
(Para 35 & 42 of the Employees’ Provident Funds Scheme 1952 and Para 19 of
The Employee Pension Scheme 1995)
Contribution Card for the currency period from 1st April 20…………..to 31st
March, 20
1. Account No.
………………………………………………………………………………………
……
2. Name/Surname………………………………………………………………………
………………….(in block capital)
3. Father’s/Husband’s
Name………………………………………………………………………………
4. Name & Address of the
Factory/Establishment………………………………………………………..
5. Statutory rate of the
Contribution………………………………………………………………………
6. Voluntary higher rate of employee’s contrbution, if
any……………………………………………….
Contributions
Months Worker’s share Employer’s Share Refund Remarks/
of No. of
Advance days/period
of Service
Amount E.P.F. E.P.F. P.F. non-
of difference Contribution contribution
wages between 8.33%+ (if any)
12%&
8.33% (if
any)+
1 2 3 4(a) 4(b) 5 6 7
March (a) Date of
paid in leaving
April service, if
any
April
May
June (b)
Reasons
July for leaving
Aug. service, if
any
110
Sept.
Oct.
Nov.
Dec.
Jan
Feb.
Feb.
paid in
March
TOTAL
Certified that the total amount of contribution (both shares )indicated in this card
i.e. Rs……….. has been already been remitted in full in EPF A/c No 1 and Pension Fund
A/c No. 10…………..(vide note below)
Certified that the difference between the total of the contribution shown under
Cols. 3 & 4(a) & 4(b) of the above table and that arrived at on the total wages shown in
Column 2 at the prescribed rate is solely due to rounding off of contributions to the
nearest rupee under the rules.
Dated …………………20 Signature of
the Employer
with Office Seal
+. Rates now enhanced by EPF (Amendment) Act, 1998
Note. - (1) In respect of Form (3-A) sent to the Regional Office during the course of the
currency period for the purpose of final settlement of the accounts of the member who
has left service, details of date and reasons for leaving service should be furnished under
col. 7(a) &(b)
(2) In respect of those who are not members of the Pension Fund the employers share of
contribution to the EPF will be 8.33 of 10% as the case may be and is to be shown under
Column 4(a)
FORM 6-A
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[Paragraph 43 of the Employees’ Provident Funds Scheme
1952 and
Paragraph 20(4) of the Pension Scheme, 1995]
Annual statement of contribution for the currency period from
1st……..20……..to………20
Statutory rate of
contribution……………….
No. of Members voluntarily
Name and address of the Factory/Establishment…….. contributing at a
higher rate……………….
Code no. of the Establishment………………………...
112
Amount Remitted
TOTAL Rs Rs Rs
Signature of
Employer (with Office Seal)
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Notes. – (1) The names of all the members, including those who had left service
during the currency period, should be included in this statement. Where
the Form 3-A in respect of such members who had left service was already
sent to the Regional Office for the purpose of final settlement of their
accounts, the fact should be stated against the members in the ‘Remarks’
column above thus:
“ Form 3-a already sent in the month of
……………………………………..20.”
(2). In case of substantial variation in the wages/contributions of any
members as compared to those shown in the previous month’s
statement the reason should be explained adequately in the ‘Remarks’
column.
(3). In respect of those members who have not opted for Pension Fund
their entire employer’s contribution @ 8.33% or 12% as the case may
be shown under Column No. 6.
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RA BILL
REMARKS/RECOMMENDATION: -
115
LABOUR PAYMENT CLEARENCE CERTIFICATE
NOTE: - The copies of the documents mentioned at serial no. 13,14 & 15 are to be
submitted once in a year after completion of financial year
116
REMARKS/RECOMMENDATION
_______________________________________________________
_______________________________________________________________________
_______________
_______________________________________________________________________
_______________
117
FORM 12-A (Revised)
118
1. Total amount remitted in Account no. 1
Rs…………………………………………………………
Date of
remittance…………………………………………………………
Date of
remittance……………………………………………………….
Amount of Amount of Date of Name and Whether the Remarks
Adm. Adm. remittance location of triplicate
Charges due Charges the bank in challan
0.37 of the remitted in which receipt is
amount of A/c No. 2 remitted or enclosed, if
wages No. and date not, state
shown in of the reason
Column 2 cheque/draft
sent to
Regional
Officer
9 10 11 12 13 14
119
* Net Total
This should tally with the figure with the figure given at the top
right hand corner of this Form
Total No. of
Employees…………...
Contract Rest
Total
Total No of
Subscribers…………………..
Signature of the
Employer
(with official seal)
Date…….
Notes. –(1) If there is any substantial variation between the wages and amount of
contribution shown above and those shown in the last month’s return
suitable explanation should be given in the ‘ Remarks’ column.
(2) If any arrears of contributions or damages are included in the figures
under Column 6 to 8, suitable details indicating the circumstances,
amount, No. of subscribers and the period involved should be furnished in
the ‘Remarks’ column or on the reverse.
(3) Remittance shall invariably be made by deposits in the State Bank of
India or its subsidiaries.
120
CONCLUSION
To complete, I must say that this summer training was very helpful
to me both in broadening my knowledge & skills to handle the
management issues related with statutory compliances.
121
BIBLIOGRAPHY
• WEBSITES
www.relianceinfo.com
www.gm.ril.com
www.google.com
www.gmrelianceada.com
• BOOKS
122