UNIT IV

Industrial Dispute Act 1947 The trade dispute act by the govt. of India in the year 1929.The act made provision for only ad hoc conciliation Board and Courts of inquiry. This act was amended in the year 1938, authorising the Central and Provincial Govt. to appoint the conciliation officers for mediating in or promoting the settlement of industry disputes. During the Second world war-the govt. promulgated Defence of India Rules to meet exigencies. Rule 81.A gave power to the govt. to intervene in industrial disputes. Defence of India Rules 124, 118, 119 were used to probity strikes and lock-outs. The Industrial Dispute bill was introduced in Central Legislative Assembly in October, 1946. The bill was passed in March, 1947 and implemented w.e.f. 1st April, 1947. Since then, it has as many as 34 to 35 major amendments. It ha 9 chapters and 40 sections. Besides Central Act, many state govt. have their own industrial dispute resolution laws, e.g. the Bombay Industrial Relations Act, 1946, the Maharastra Recognition of Trade Unions and Prevention of Unfair Lbour Practices Act, 1971, like wise, MP, AP, Orissa, Gujarat, Raj. etc also have their own legislation on the ID Industrial disputes are symptoms of industrial unrest. Industrial unrest may take either unorganized or organized from. When it is unorganized it is manifested inform of low morale, low productivity, frustration etc. organized from of industrial unrest includes strikes, demonstration, gheraos, boycotts etc. After the closed of first world war, there was a great of industrial unrest. According to Sec 2 of Industrial Disputes Act 1947, Industrial dispute means any dispute or difference between employers & employers or between employers and workmen or between workmen and workmen, which is connected with the employment or non-employment or terms of employment or with the conditions of labour of any person. Preamble & Objectives of the Act The preamble of the Act to make provision for the investigation and settlement of industrial dispute and for certain other purposes. There are following objectives 1. To prevent illigal strikes and lockouts 2. To provide compensation to workmen is case of lay-off, retrenchment and closure 3. To promote collective bargaining 4. To promote measures for securing and preserving amity and good relations b/w the workers & employers 5. To protect workmen against victimisation by the employer and to ensure termination of industrial disputes in a peaceful manner 6. To ensure social justice to both employer s and employees. Forms of Industrial Dispute:(A) StrikesIt is a very powerful weapons to get its demand accepted by a trade union. It means quitting work by a group of workers for the purpose of bringing pressure on their employers to accept their demands. There are may types of strikes. (a) Economic Strike:Under this type of strike, members of trade Union stop work to enforce their economic demands such as increase in wages, bonus

& other benefits. (b) Sympathetic Strike:When members of a Union collectively stop work to support or express their sympathy with the members of other union who are on strike. This is an illegal strike done by workmen, who are fully satisfied by their employment, but support the cause of their fellow unsatisfied workmen. (1) General Strike:Means a strike by numbers of all or most of unions in a region or an industry. If may be strike of all workers in a particular region to force demands common to all workers. (2) Sit Down Strike:When workers do not leave their place of work but cases work, they are said to be on sit down or stay in strike. (3) Slow Down Strike:Employers remain on their jobs under this type of strike. They do not stop work but restrict rate of output in an organized manners. (4) Hunger strike: Workers gather near the factory owner's residence and refuse to eat. (5)Pen down: Workers come to work on regular hours but refuse to do any work. (6)Rule strike: This type of strike is done by strictly abiding by company rules to the extreme, and there is no space for flexibility. (7)Support strike: Supporting workers from another factory also go on strike to support their fellow workers from a related factory. (8)Gate strike: Workers gather near the company gates and launch a strike. (9)Production strike: Workers produce more industrial items but now in harmony. (10)Go-slow: Workers work their usual hours but their productivity is greatly reduced. They deliberately work slower than usual, causing heavy losses and production delays. (11)Picketing and boycott: This is the act of surrounding and picketing the owner's residence, and not allowing anyone to enter the premises. Violent picketing is illegal. Boycott is disturbing the normal functioning of the business. (B)Lock-Out:Is declared by employers to put pressure on their workers. It is an act on the part of the employers to close down the place of work until workers agree to resume work on terms & conditions specified by employers. This is the process of closing down a place of business due to refusal to work by the employees. Lockouts are different from strikes because lockouts are initiated by the management/employer. Lockouts are: 1. Closure of industrial undertaking due to violence, disputes, etc. 2. Suspension of employment relationship. 3. Lockouts are initiated by the employer, and strikes are initiated by the employees. 4. Lockouts have definite motive. (C) Gherao:This is the process of blocking a target by encircling it. This may prevent people from approaching the target. The target may be an office, a building entrance, factory, residence, etc. Gherao may involve assault and torture, and gheraos are illegal. Denotes a collective action initiated by a group of workers under which members of management of an industrial establishment are prohibited from leaving their business or residential promises by workers who block their through human barricade.

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Notice of strikes and lock-outs Section 22, Industrial Disputes Act, 1947 provides that no person employed in a public utility service shall go on strike in breach of contract: without giving to the employer notice of strike, within six weeks before striking; or within fourteen days of giving such notice; or before the expiry of the date of strike specified in any such notice aforesaid; or during the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings.

workman in that establishment, in the absence of any agreement between the employer and the workman in this behalf, the employer shall ordinarily retrench the workman who was the last person to be employed in that category, unless for reasons to be recorded the employer retrenches any other workman. Dismissal, etc of an individual workman to be an industrial dispute Section 2A, Industrial Disputes Act provides that where any employer discharges, dismisses, retrenches or otherwise terminates the services of an individual workman, any dispute or difference between the workman and his employer connected with, or arising out of such discharge, dismissal, retrenchment or termination shall be deemed to be an industrial dispute notwithstanding that no other workman nor any union of workman is a party to the dispute. Where any employer discharges, dismisses, retrenches or otherwise terminates the services of an individual workman, any dispute or difference between the workman and his employer connected with, or arising out of such discharge, dismissal, retrenchment or termination, the workmen can raise the dispute directly without reference or intervention of the Government under Section 11A of the Industrial Dispute Act within 6 months from the date of such discharge, dismissal, retrenchment or termination. Prevention of Industrial Disputes: The consequences of an Industrial dispute will be harmful to the owners of industries, workers, economy and the nation as a whole, which results in loss of productivity, profits, market share and even closure of the plant. Hence, Industrial disputes need to be averted by all means. Prevention of Industrial disputes is a pro-active approach in which an organisation undertakes various actions through which the occurrence of Industrial disputes is prevented. Like the old saying goes, prevention is better then cure. 1. Model Standing Orders: Standing orders define and regulate terms and conditions of employment and bring about uniformity in them. They also specify the duties and responsibilities of both employers and employees thereby regulating standards of their behaviour. Therefore, standing orders can be a good basis for maintaining harmonious relations between employees and employers. Under Industrial Dispute Act, 1947, every factory employing 100 workers or more is required to frame standing orders in consultation with the workers. These orders must be certified and displayed properly by the employer for the information of the workers. 2. Code of Industrial discipline: The code of Industrial discipline defines duties and responsibilities of employers and workers. The objectives of the code are: To secure settlement of disputes by negotiation, conciliation and voluntary arbitration. To eliminate all forms of coercion, intimidation and violence. To maintain discipline in the industry. To avoid work stoppage. To promote constructive co-operation between the parties concerned at all levels. 3. Works Committee: The Industrial Dispute Act, 1947 has provided for the establishment of works committees. In case of any

No employer carrying on any public utility service shall lock-out any of his workmen without giving them notice of lock-out as hereinafter provided, within six weeks before locking out; or within fourteen days of giving such notice; or before the expiry of the date of lock-out specified such notice as aforesaid; or during the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings.

The notice of strike shall be given by such number of persons to such person or persons and in such manner as may be prescribed. The notice of lock-out shall be given by an employer in prescribed form. The notice shall be displayed conspicuously by the employer on a notice board at the main entrance to the establishment and in the manager's office. Report of strike or lock-out by employer If on any day an employer receives from any person employed by him any notice of strike or gives to any persons employed by him any notice of lock-out, he shall within five days thereof, and report to the appropriate government or to such authority as that government may prescribe the number of such notices received or given on that day. The report of notice of a strike or lock-out should be sent by registered post or given personally to the Assistant Labour Commissioner (Central) appointed for the local area concerned, with copy by registered post to concerned departments. Retrenchment of workman Section 25F, Industrial Disputes Act, 1947 provides that no workman employed in any industry who has been in continuous service for not less than one year under an employer shall not be retrenched by the employer unless, the workman has been given one month's notice in writing indicating the reasons for retrenchment and period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice. Procedure for retrenchment Section 25F, Industrial Disputes Act, provides that where any workman in an industrial establishment, who is a citizen of India, is to be retrenched and he belongs to a particular category of

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industrial establishment in which 100 or more workers are employed, a works committee consisting of employees and workers is to be constituted; it shall be the duty of the Works Committee to promote measures for securing and preserving amity and good relations among the employees and workers. 4. Joint Management Councils: JMCs represent a higher form of workers participation in management. The aim is to change the social structure of enterprises from inside. They lead the private sector to fit into the framework of socialist order the idea that socialist order should be achieved by gradual and peaceful changes. An Undertaking Must Meet The Following Requirements For Setting Up JMCs: It must have 500 or more employees. It should have a fair record of industrial relations. It should have a strong and well organized trade union. Willingness of employers, workers and trade unions. The union should be affiliated to one of the central federations. FEATURES Each organization shall decide about the councils. The tenure of the councils should be 2 years. Chief executive shall be the chairman . A Secretary should be appointed. Meeting at least once in a quarter . Decisions based on consensus not by voting. Functions of JMC Management consults the Joint Management Council for: 1. Administration and amendment of standing orders if needed. 2. Retrenchment. 3. Rationalization. 4. Closure, reduction or cessation of operations. Act as an exchanges information on: 1. General economic situation of the undertaking. 2. State of the market, productions and sales. 3. Organization and general position of the undertaking. 4. Circumstances affecting the economic position of the undertaking. 5. Manufacturing methods and techniques. 6. Annual balance sheet, profit and loss statement, and related documents. 7. Long-term development and expansion plans. 8. Other related matters. Acts as an administration: 1. Administers welfare measures. 2. Supervision of safety measures. 3. Operation of vocational and apprenticeship schemes. 4. Prepare work schedules and vacation timings. 5. Reward employees for their valuable input. 6. Other related matters. 5. Suggestion Schemes: An Employee suggestion scheme can be described as a formalised mechanism, which encourages employees to contribute constructive ideas for improving the organisation in which they work. The overall aim of these schemes is to gather, analyse, and implement ideas in order to create results that have a positive impact on the business and or deliver new value to customers. New ideas can enable organisations to find new sources of competitive advantage. New ideas might relate to: New products and services Improvement of current products and services Improvement of processes (e.g. continuous improvement initiatives).

6.

Joint Councils:

7. Collective Bargaining: Collective Bargaining is a process in which the representatives of the employer and of the employees meet and attempt to negotiate a contract governing the employeremployee-union relationships. Collective Bargaining involves discussion and negotiation between two groups as to the terms and conditions of employment. 8. Labour welfare officer: The factories Act, 1948 provides for the appointment of a labour welfare officer in every factory employing 500 or more workers. The officer looks after all facilities in the factory provided for the health, safety and welfare of workers. He maintains liaison with both the employer and the workers, thereby serving as a communication link and contributing towards healthy industrial relations through proper administration of standing orders, grievance procedure etc. 9. Tripartite bodies: Several tripartite bodies have been constituted at central, national and state levels. The India labour conference, standing labour committees, Wage Boards and Industries Committees operate at the central level. At the state level, State Labour Advisory Boards have been set up. All these bodies play an important role in reaching agreements on various labour-related issues. The recommendations given by these bodies are however advisory in nature and not statutory. Machinery for settlement of Industrial Disputes: 1. Conciliation: Conciliation refers to the process by which representatives of employees and employers are brought together before a third party with a view to discuss, reconcile their differences and arrive at an agreement through mutual consent. The third party acts as a facilitator in this process. Conciliation is a type of state intervention in settling the Industrial Disputes. The Industrial Disputes Act empowers the Central & State governments to appoint conciliation officers and a Board of Conciliation as and when the situation demands. Conciliation Officer: The appropriate government may, by notification in the official gazette, appoint such number of persons as it thinks fit to be the conciliation officer. The duties of a conciliation officer are: a) To hold conciliation proceedings with a view to arrive at amicable settlement between the parties concerned. b) To investigate the dispute in order to bring about the settlement between the parties concerned. c) To send a report and memorandum of settlement to the appropriate government. d) To send a report to the government stating forth the steps taken by him in case no settlement has been reached at. Conciliation is generally the process of encouraging the aggravated parties to come together for mediation. In industrial relations however, the distinctions between the terms 'mediation' and 'conciliation' are negligible, and this trend also applies to other countries. Therefore, conciliation may be defined as the services of a third party that are used in a dispute as a means of helping the disputing parties to reduce the extent of their differences and to arrive at a settlement or mutually agreed solution. Conciliation tends to bring a speedy solution to industrial disagreements, hence, avoiding unnecessary strikes and lock-outs. Role of a conciliator: A conciliator's function is to define a series of steps toward settlement of differences between the parties seeking reconciliation. A conciliator may open a series of options, attitudes, and offer alternative possibilities of settlement. The roles of a conciliator are summarized below:

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a. Discussion Leader A conciliator encourages a clear and friendly communication, creates a safe environment, and discourages any bias or antagonism between the parties. b. Safety Valve A conciliator may be placed between the aggravated parties and may take on collateral damage without damaging the atmosphere of conciliatory meetings. c. Communication link A conciliator may serve as an important communication link between the aggravated parties. d. An innovator A conciliator may offer new suggestions and priorities, and provide the parties different views to the solution. e. A sounding board A conciliator may step in between any heated arguments taking place during the conciliatory process. f. Protector A conciliator may be a protector of the parties while preparing the parties for a collective bargaining position during separate meetings. h. A stimulator A conciliator may motivate the parties to a peaceful solution by supporting good arguments from opposing sides. i. An advisor A conciliator ensures that misunderstandings don't occur between the parties, and that room is open only to responsible discussions. j. A face saver A conciliator may get the defeated party a form of accommodating settlement, which, in reality, holds on real value. This is done in order to mask the loss of face or prestige of the losing party. k. Promoter of collective bargaining A conciliator promotes collective bargaining and development of a mutual understanding between the parties. 2. Arbitration: A process in which a neutral third party listens to the disputing parties, gathers information about the dispute, and then takes a decision which is binding on both the parties. The conciliator simply assists the parties to come to a settlement, whereas the arbitrator listens to both the parties and then gives his judgement. Advantages of Arbitration: It is established by the parties themselves and therefore both parties have good faith in the arbitration process. The process in informal and flexible in nature. It is based on mutual consent of the parties and therefore helps in building healthy Industrial Relations. Disadvantages: Delay often occurs in settlement of disputes. Arbitration is an expensive procedure and the expenses are to be shared by the labour and the management. Judgment can become arbitrary when the arbitrator is incompetent or biased. There are two types of arbitration: a) Voluntary Arbitration: In voluntary arbitration the arbitrator is appointed by both the parties through mutual consent and the arbitrator acts only when the dispute is referred to him. b) Compulsory Arbitration: Implies that the parties are required to refer the dispute to the arbitrator whether they like him or not. Usually, when the parties fail to arrive at a settlement voluntarily, or when there is some other strong reason, the appropriate government can force the parties to refer the dispute to an arbitrator.

3. Adjudication: Adjudication is the ultimate legal remedy for settlement of Industrial Dispute. Adjudication means intervention of a legal authority appointed by the government to make a settlement which is binding on both the parties. In other words adjudication means a mandatory settlement of an Industrial dispute by a labour court or a tribunal. For the purpose of adjudication, the Industrial Disputes Act provides a 3-tier machinery: a) Labour court b) Industrial Tribunal c) National Tribunal a) Labour Court: The appropriate government may, by notification in the official gazette constitute one or more labour courts for adjudication of Industrial disputes relating to any matters specified in the second schedule of Industrial Disputes Act. They are: Dismissal or discharge or grant of relief to workmen wrongfully dismissed. Illegality or otherwise of a strike or lockout. Withdrawal of any customary concession or privileges. Where an Industrial dispute has been referred to a labour court for adjudication, it shall hold its proceedings expeditiously and shall, within the period specified in the order referring such a dispute, submit its report to the appropriate government. b) Industrial Tribunal: The appropriate government may, by notification in the official gazette, constitute one or more Industrial Tribunals for the adjudication of Industrial disputes relating to the following matters: Wages Compensatory and other allowances Hours of work and rest intervals Leave with wages and holidays Bonus, profit-sharing, PF etc. Rules of discipline Retrenchment of workmen Working shifts other than in accordance with standing orders It is the duty of the Industrial Tribunal to hold its proceedings expeditiously and to submit its report to the appropriate government within the specified time. c) National Tribunal: The central government may, by notification in the official gazette, constitute one or more National Tribunals for the adjudication of Industrial Disputes in Matters of National importance Matters which are of a nature such that industries in more than one state are likely to be interested in, or are affected by the outcome of the dispute. It is the duty of the National Tribunal to hold its proceedings expeditiously and to submit its report to the central government within the stipulated time. Collective Bargaining Good relations between the employer and employees are essential for the success of industry. In order to maintain good relations, it is necessary that industrial disputes are settled quickly and amicably. One of the efficient methods of resolving industrial disputes and deciding the employment conditions is Collective Bargaining. Industrial disputes essentially refer to differences or conflicts between employers and employees. Collective Bargaining is a process in which the management and employee representatives meet and negotiate the terms and conditions of employment for mutual benefit. Collective bargaining involves discussion and negotiation between two groups as to the terms and conditions of employment. It is termed Collective because both the employers negotiators and the

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5. 6.

employees act as a group rather than individuals. It is known as Bargaining because the method of reaching an agreement involves proposals and counter-proposals, offers and counter offers. There should be no outsiders involved in the process of collective bargaining. According to Walton and McKersie the process of Collective Bargaining consists of four types of activities: 1) Distributive Bargaining: It involves haggling over the distribution of surplus. Various activities involved in this activity are wages, salaries, bonus and other financial issues. In this activity, both the parties face a win/lose situation. 2) Integrative Bargaining: Also known as Interest-Based Bargaining, issues which are not damaging to either party are discussed. It is a negotiation strategy in which both the parties collaborate to find a win-win solution to their problems. This strategy focuses on developing mutually beneficial agreements based on the interests of the disputants. Issues brought up may be better job evaluation procedures, better performance appraisal methods or training programmes etc. 1. 3) Attitudinal structuring: Attitudinal structuring refers to efforts by negotiators to shape their opponents' perceptions about the nature of the issues to be negotiated. By cultivating an atmosphere of friendliness, mutual respect, trust, and cooperation, negotiators can encourage their opponents to view issues largely in integrative terms and participate in joint problem solving. This activity involves shaping and reshaping some perceptions like trust/distrust, friendliness/hostility, co-operative/non-cooperative between the labour and management. When there is a backlog of bitterness between both the parties, attitudinal structuring is required to maintain smooth and harmonious industrial relations. 4) Intra-Organisational Bargaining: It is a type of manoeuvring to achieve consensus among the workers and management. Even within the union there may be differences between different groups as may be the case with the management. Intra-organisational consensus is required for the smooth acceptance of the outcome of Collective Bargaining. Objectives of Collective Bargaining: 1. To maintain cordial relations between the employer and employees. 2. To protect the interests of the workers through collective action and by preventing unilateral actions from being taken by the employer. 3. To ensure the participation of trade unions in industry. 2. 4. To avoid the need for government intervention as collective bargaining is a voluntary collective process. 5. To promote Industrial democracy. Characteristics of Collective Bargaining: 1. It is a group or collective action as opposed to individual action. It is initiated through the representatives of the employees. 2. It is a flexible and dynamic process where-in no party adopts a rigid attitude. 3. It is a continuous process, which provides a mechanism for continuous negotiations and discussions between management and the trade unions. 4. It is a voluntary process without any third-party intervention. Both workers and management voluntarily participate in the negotiations, discuss and arrive at a solution. That is why it is known as a bipartite process where workers representatives and management get an opportunity for clear, face-to-face communication. It ensures industrial democracy at the workplace; it is a self-run government in action. It is a two-way process. It is a mutual give and take rather than a take home all method of arriving at a solution to a dispute. Process of Collective Bargaining

Preparation for Negotiation

Identifying issues for Bargaining

Negotiation

Negotiated Agreement

Ratification of Agreement

Implementation of Agreement Preparation for Negotiation: Preparation for negotiation in Collective Bargaining is as important as the negotiation process itself. Upto 83% of the outcomes are influenced by pre-negotiation process. Such preparation is required for both management as well as the union representatives. From the managements point of view, pre-negotiation preparation is required as: Management should decide when and how to open the negotiations/dialogue. Management must choose the representatives to negotiate at the negotiation table. Draft for likely decisions should be prepared in advance so that the final agreement draft can be prepared as soon as the negotiation process is over. From the employees side also, preparation is required for the following reasons: The union should collect the information related to the financial position of the company and their ability to pay the employees. The union must also be aware of the various practices followed by other companies in the same region or industry. The union must assess the attitudes and expectations of the employees over concerned issues so that the outcome of negotiations does not face any resistance from them. Identifying issues for Bargaining: The second step in bargaining process is the determination of issues which will be taken up for negotiations. The different types of issues are: Wage-related issues: Include wage or salary revision, allowance for meeting increased cost of living like Dearness Allowance (D.A), financial perks, incentives etc. Supplementary economic benefits: These include pension plans, gratuity plans, accident compensation, health insurance plans, paid holidays etc. Administrative issues: Include seniority, grievance procedures, employee health and safety measures, job security and job changes. The wage and benefits issues are the ones which receive the greatest amount of attention on the bargaining table. 3. Negotiation: When the first two steps are completed, both parties engage in actual negotiation process at a time and place fixed for the purpose. There a re two types of negotiations: Boulwarism: In this method, the management themselves takes the initiative to find out through comprehensive research and surveys the needs of the employees. Based on the analysis of the findings, the company designs its own package based on the issues

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to be bargained. Thereafter, a change is incorporated only when new facts are presented by the employees or their unions. Continuous Bargaining: Involves parties to explore particular bargaining problems in joint meetings over a long period of time, some throughout the life of each agreement. The basic logic behind this method is that all persistent issues can be addressed through continuous negotiation over a period of time. The success of negotiations depends on the skills and abilities of the negotiators. 4. Initial negotiated agreement: When two parties arrive at a mutually acceptable agreement either in the initial stage or through overcoming negotiation breakdown, the agreement is recorded with a provision that the agreement will be formalized after the ratification by the respective organizations. 5. Ratification of agreement: Ratification of negotiated agreement is required because the representatives of both the parties may not have ultimate authority to decide various issues referred to for collective bargaining. The ratification of agreement may be done by the appropriate manager authorized for the purpose in the case of management, or trade executives in the case of the employees. Ratification is also required by the Industrial Disputes Act. It is important that the agreement must be clear and precise. Any ambiguity leads to future complications or other such problems. 6. Implementation of agreement: Signing the agreement is not the end of collective bargaining, rather it is the beginning of the process when the agreement is finalized, it becomes operational from the date indicated in the agreement. The agreement must be implemented according to the letter and spirit of the provisions made by the agreement agreed to by both parties. The HR manager plays a crucial role in the day-to-day administration implementation of the agreement. Causes of Industrial Dispute: Disputes may result from various causes: psychological, potential, and economic. The most common cause of strikes has been economic reasons; other reasons have been influenced by nationalist, communist, and commercial ends. The Labor Bureau of Simla has observed causes such as: wages and allowances, bonus, personnel, vacation and work timings, violence (added in 1971), etc. An analysis has revealed the following facts: During 1921-1931: 15.2% of demands were related to wages. 4.6% of demands were related to bonus. 4.4% of demands were related to vacation days and worktimings. 18.5% of demands were related to others. During 1939-1947: 44.1% of demands were related to wages. 7.9% of demands were related to bonus. 15.6% of demands were related to personal matters. 5% of demands were related to vacation and work-timings. During 1948-1957: 28.1% of demands were related to wages. 9.1% of demands were related to bonus. 30.9% of demands were related to personal matters. 7.2% of demands were related to vacation days and work-timing. Industrial Accident An industrial accident, or occupational accident, is an accident that occurs when an employee is at work. It includes any type of accident or injury caused from a person's workplace.

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THE FACTORIES ACT, 1948 Objectives 1. To ensure adequate safety measures and to promote the health and welfare of the workers employed in factories. 2. To prevent haphazard growth of factories through the provisions related to the approval of plans before the creation of a factory. Applicability of the Act 1. Applicable to the whole of India including Jammu & Kashmir. 2. Covers all manufacturing processes and establishments falling within the definition of factory. 3. Applicable to all factories using power and employing 10 or more workers, and if not using power, employing 20 or more workers on any day of the preceding 12 months. Scheme of the Act 1. The Act consists of 120 Sections and 3 Schedules. 2. Schedule 1 contains list of industries involving hazardous processes 3. Schedule 2 is about permissible level of certain chemical substances in work environment. 4. Schedule 3 consists of list of notifiable diseases. SALIENT FEATURES OF THE ACT ARE :Approval of Factory Building Plans before construction/extension, under the Delhi Factories Rules, 1950 . Grant of Licences under the Delhi Factories Rules, 1950, and to take action against factories running without obtaining Licence. Renewal of Licences granted under the Delhi Factories Rules, 1950, by the Dy. Chief Inspectors of Factories . Inspections of factories by District Inspectors of Factories, for investigation of complaints, serious/fatal accidents as well as suo moto inspections to check compliance of provisions of this Act relating to :Health Safety Welfare facilities Working hours Employment of young persons Annual Leave with wages etc. IMPORTANT PROVISIONS THE ACT Facilities and Conveniences - The factory should be kept clean. [Section 11]. There should be arrangement to dispose of wastes and effluents. [Section 12]. Ventilation should be adequate. Reasonable temperature for comfort of employees should be maintained. [Section 13]. Dust and fumes should be controlled below permissible limits. [Section 14]. Artificial humidification should be at prescribed standard level. [Section 15]. Overcrowding should be avoided. [Section 16]. Adequate lighting, drinking water, latrines, urinals and spittoons should be provided. [Sections 17 to 19]. Adequate spittoons should be provided. [Section 20].

Welfare - Adequate facilities for washing, sitting, storing cloths when not worn during working hours. [Section 42]. If a worker has to work in standing position, sitting arrangement to take short rests should be provided. [Section 44]. Adequate First aid boxes shall be provided and maintained [Section 45]. Facilities in case of large factories - Following facilities are required to be provided by large factories - * Ambulance room if 500 or more workers are employed * Canteen if 250 or more workers are employed. It should be sufficiently lighted and ventilated and suitably located. [Section 46]. * Rest rooms / shelters with drinking water when 150 or more workmen are employed [Section 47] * Crches if 30 or more women workers are employed. [Section 48] * Full time Welfare Officer if factory employs 500 or more workers [Section 49] * Safety Officer if 1,000 or more workmen are employed. Safety - All machinery should be properly fenced to protect workers when machinery is in motion. [Section 21 to 27]. Hoists and lifts should be in good condition and tested periodically. [Section 28 and 29]. Pressure plants should be checked as per rules. [Section 31]. Floor, stairs and means of access should be of sound construction and free form obstructions. [Section 32]. Safety appliances for eyes, dangerous dusts, gas, fumes should be provided. [Sections 35 and 36]. Worker is also under obligation to use the safety appliances. He should not misuse any appliance, convenience or other things provided. [Section 111]. In case of hazardous substances, additional safety measures have been prescribed. [Sections 41A to 41H]. - - Adequate fire fighting equipment should be available. [Section 38]. - - Safety Officer should be appointed if number of workers in factory are 1,000 or more. [Section 40B]. Working Hours - A worker cannot be employed for more than 48 hours in a week. [Section 51]. Weekly holiday is compulsory. If he is asked to work on weekly holiday, he should have full holiday on one of three days immediately or after the normal day of holiday. [Section 52(1)]. He cannot be employed for more than 9 hours in a day. [Section 54]. At least half an hour rest should be provided after 5 hours. [Section 55]. Total period of work inclusive of rest interval cannot be more than 10.5 hours. [Section 56]. A worker should be given a weekly holiday. Overlapping of shifts is not permitted. [Section 58]. Notice of period of work should be displayed. [Section 61]. Overtime Wages - If a worker works beyond 9 hours a day or 48 hours a week, overtime wages are double the rate of wages are payable. [Section 59(1)]. A workman cannot work in two factories. There is restriction on double employment. [Section 60]. However, overtime wages are not payable when the worker is on tour. Total working hours including overtime should not exceed 60 in a week and total overtime hours in a quarter should not exceed 50. Register of overtime should be maintained. - - An employee working outside the factory premises like field workers etc. on tour outside headquarters are not entitled to overtime. R Ananthan v. Avery India 1972(42) FJR 304 (Mad HC) * Director of Stores v. P S Dube 1978 Lab IC 390 = 52 FJR 299 = 1978 I LLN 464 = 36 FLR 420. Employment of Women - A woman worker cannot be employed beyond the hours 6 a.m. to 7.00 pm. State Government can grant exemption to any factory or group or class of factories, but no woman can be permitted to work during 10 PM to 5 AM. Shift change can be only after weekly or other holiday and not in between. [Section 66].

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Night Shift for women: Factories Act is proposed to be amended to allow night shift for women workers. The Government has decided to amend Section 66 of the Factories Act, 1948 to allow employment of women workers between 7.00 pm and 6.00 am. The demand of womens organisations and in tune with the present economic globalization, the Government has decided to bring in then required changes in the Act. This flexibility would be available to all manufacturing units including the apparel sector. This decision has been taken after meetings with the representatives of the employers and the trade unions. The proposed Bill will empower the State Governments for allowing the necessary flexibility in employment of women during night shift in factories. The proposed amendment would inter-alia provide that the employer has to ensure occupational safety and adequate protection to the women workers. However, the State Government or any person authorised by it would be allowing employment of women during night only after consulting the workers or their representative organisations and concerned employers or their representatives. The State Governments are also empowered to frame their own rules for allowing such permissions. Record of Workmen - A register (muster roll) of all workers should be maintained. No worker should be permitted to work unless his name is in the register. Record of overtime is also required to be maintained. [Section 62]. Leave - A worker is entitled in every calendar year annual leave with wages at the rate of one day for every 20 days of work performed in the previous calendar year, provided that he had worked for 240 days or more in the previous calendar year. Child worker is entitled to one day per every 15 days. While calculating 240 days, earned leave, maternity leave upto 12 weeks and lay off days will be considered, but leave shall not be earned on those days. [Section 79]. Leave can be accumulated upto 30 days in case of adult and 40 days in case of child. Leave admissible is exclusive of holidays occurring during or at either end of the leave period. Wage for period must be paid before leave begins, if leave is for 4 or more days. [Section 81]. Leave cannot be taken for more than three times in a year. Application for leave should not normally be refused. [These are minimum benefits. Employer can, of course, give additional or higher benefits]. Wages for OT and Leave Salary - 'Wages' for leave encashment and overtime will include dearness allowance and cash equivalent of any benefit. However, it will not include bonus or overtime. Child Employment - Child below age of 14 cannot be employed. [Section 67]. Child above 14 but below 15 years of age can be employed only for 4.5 hours per day or during the night. [Section 71]. He should be certified fit by a certifying surgeon. [Section 68]. He cannot be employed during night between 10 pm to 6 am. [Section 71]. A person over 15 but below 18 years of age is termed as adolescent. He can be employed as an adult if he has a certificate of fitness for a full day's work from certifying surgeon. An adolescent is not permitted to work between 7 pm and 6 am. [Section 70]. There are more restrictions on employment of female adolescent. - - Register of child workers should be maintained. [Section 73]. Display on Notice Board - A notice containing abstract of the Factories Act and the rules made thereunder, in English and local language should be displayed. Name and address of Factories Inspector and the certifying surgeon should also be displayed on notice board. [Section 108(1)].

Notice of Accidents, Diseases Etc. - Notice of any accident causing disablement of more than 48 hours, dangerous occurrences and any worker contacting occupational disease should be informed to Factories Inspector. [Section 88]. Notice of dangerous occurrences and specified diseases should be given. [Sections 88A and 89]. Obligation regarding Hazardous Processes / Substances Information about hazardous substances / processes should be given. Workers and general public in vicinity should be informed about dangers and health hazards. Safety measures and emergency plan should be ready. Safety Committee should be appointed. List of Industries Involving Hazardous Processes THE FIRST SCHEDULE [See Section 2(cb)] 1. Ferrous metallurgical Industries - Integrated Iron and Steel - Ferro-alloys - Special Steels 2. Non-ferrous metallurgical Industries - Primary Metallurgical Industries, namely, zinc, lead, copper manganese and aluminium 3. Foundries (ferrous and non-ferrous) - Castings and forgings including cleaning or smoothing/roughening by sand and shot blasting. 4. Coal (including coke) industries. - Coal, Lignite, Coke, etc. - Fuel Gases (including Coal gas, Producer gas, Water gas) 5. Power Generating Industries 6. Pulp and paper (including paper products) industries 7. Fertiliser Industries - Nitrogenous - Phosphatic - Mixed 8. Cement Industries - Portland Cement (including slag cement, puzzolona cement and their products) 9. Petroleum Industries - Oil Refining - Lubricating Oils and Greases 10. Petro-chemical Industries 11. Drugs and Pharmaceutical Industries - Narcotics, Drugs and Pharmaceuticals 12. Fermentation Industries (Distilleries and Breweries) 13. Rubber (Synthetic) Industries 14. Paints and Pigment Industries 15. Leather Tanning Industries 16. Electro-plating Industries 17. Chemical Industries - Coke Oven by-products and Coaltar Distillation Products - Industrial Gases (nitrogen, oxygen, acetylene, argon, carbondioxide, hydrogen, sulphur-dioxide, nitrous oxide, halogenated hydro-carbon, ozone etc.) - Industrial Carbon - Alkalies and Acids - Chromates and dichromates - Leads and its compounds - Electrochemicals (metallic sodium, potassium and magnesium, chlorates, perchlorates and peroxides) - Electrothermal produces (artificial abrasive, calcium carbide) - Nitrogenous compounds (cyanides, cyanamides and other nitrogenous compounds) - Phosphorous and its compounds

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- Halogens and Halogenated compounds (Chlorine, Fluorine, Bromine and Iodine) - Explosives (including industrial explosives and detonators and fuses) 18. Insecticides, Fungicides, herbicides and other Pesticides Industries 19. Synthetic Resin and Plastics 20. Man-made Fibre (Cellulosic and non-cellulosic) Industry 21. Manufacture and repair of electrical accumulators 22. Glass and Ceramics 23. Grinding or glazing of metals 24. Manufacture, handling and processing of asbestos and its products 25. Extraction of oils and fats from vegetable and animal sources 26. Manufacture, handling and use of benzene and substances containing benzene 27. Manufacturing processes and operations involving carbon disulphide 28. Dyes and Dyestuff including their intermediates 29. Highly flammable liquids and gases. LIST OF NOTIFIABLE DISEASES 1. Lead poisoning, including poisoning by any preparation or compound of lead or their sequelae. 2. Lead tetra-ethyl poisoning 3. Phosphorus poisoning or its sequelae. 4. Mercury poisoning or its sequelae. 5. Manganese poisoning or its sequelae. 6. Arsenic poisoning or its sequelae. 7. Poisoning by nitrous fumes. 8. Carbon disulphide poisoning. 9. Benzene poisoning, including poisoning by any of its homologues, their nitro or amido derivatives or its sequelae. 10. Chrome ulceration or its sequelae. 11. Anthrax. 12. Silicosis. 13. Poisoning by halogens or halogen derivatives of the hydrocarbons of the aliphatic series. 14. Pathological manifestations due to (a) radium or other radio-active substances. (b) X-rays. 15. Primary epitheliomatous cancer of skin. 16. Toxic anaemia. 17. Toxic jaundice due to poisonous substances. 18. Oil acne or dermatitis due to mineral oils and compounds containing mineral oil base. 19. Byssionosis. 20. Asbestosis. 21. Occupational or contract dermatitis caused by direct contract with chemicals and paints. These are of two types, that is primary irritants and allergic sensitizers. 22. Noise induced hearing loss (exposure to high noise levels). 23. Beriyllium poisoning. 24. Carbon monoxide 25. Coal miners' pnoumoconiosis. 26. Phosgene poisoning. 27. Occupational cancer. 28. Isocyanates poisoning. 29. Toxic nephirits.

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PAYMENT OF WAGES ACT, 1936

Objectives To ensure regular and prompt payment of wages and to prevent the exploitation of a wage earner by prohibiting arbitrary fines and deductions from his wages. Applicability of the Act Application for payment of wages to persons employed in any factory. Not applicable to wages which average Rs 6,500 per month or more. Wages include all remuneration, bonus, or sums payable for termination of service, but do not include house rent reimbursement, light vehicle charges, medical expenses, TA, etc. Salient Features:This Act has been enacted with the intention of ensuring timely payment of wages to the workers and for payment of wages without unauthorized deductions. The salary in factories/establishments employing less than 1000 workers is required to be paid by 7th of every month and in other cases by 10th day of every month. A worker, who either has not been paid wages in time or an unauthorized deductions have been made from his/her wages, can file a Claim either directly or through a Trade Union or through an Inspector under this Act, before with the Authority appointed under the Payment of Wages Act. The power for hearing and deciding Claims under this Act has been vested at present with the Presiding Officer of a Labour Court. Important provisions of the Act Responsibility of the employer for payment of wages and fixing the wage period. Procedures and time period in wage payment. Payment of wages to discharged workers. Permissible deductions from wages. Nominations to be made by employees. Penalties for contravention of the Act. Equal remuneration for men and women. Obligations and rights of employers. Obligations and rights of employees. The Act is to regulate payment of wages to certain class of employed persons. The main purpose of this Act is to ensure regular and timely payment of wages to the employed persons, to prevent unauthorized deductions being made from wages and arbitrary fines being imposed on the employed persons. The Act extends to the whole of India. Application of the Act: The Act applies to payment of wages to persons employed in factory or railways. It also applies to any industrial or other establishment specified in Section 2(ii). [Section 1(4)]. Factory means factory as defined in Section 2(m) of Factories Act. - Industrial or other establishment specified in Section 2(ii) are - * Tramway or motor transport services * Air transport services * Dock wharf or jetty * Inland vessels * Mines, quarry or oil-field * Plantation * Workshop in which articles are produces, adopted or manufactured. - - The Act can be extended to other establishment by State/Central Government. Presently, the Act applies to employees drawing wages upto Rs 6,500. [Section 1(6)]. Every employer is responsible for payment to persons employed by him on wages. [Section 3].

MEANING OF WAGES - Wages means all remuneration expressed in terms of money and include remuneration payable under any award or settlement, overtime wages, wages for holiday and any sum payable on termination of employment. However, it does not include bonus which does not form part of remuneration payable, value of house accommodation, contribution to PF, traveling allowance or gratuity. [Section 2(vi)] HOW WAGES SHOULD BE PAID - Wages can be paid on daily, weekly, fortnightly or monthly basis, but wage period cannot be more than a month. [Section 4]. Wages should paid on a working day. Wages are payable on or before 7th day after the wage period. In case of factories employing more than 1,000 workers, wages can be paid on or before 10th day after wage period is over. [Section 5(1)]. [Normally, wage period is a month. Thus, normally, wages should be paid by 7th of following month and by 10th if the number of employees are 1,000 or more]. - - Wages should be paid in coins and currency notes. However, with authorisation from employee, it can be paid by cheque or by crediting in his bank account. [Section 6]. DEDUCTIONS PERMISSIBLE - Deduction on account of absence of duty, fines, house accommodation if provided, recovery of advance, loans given, income tax, provident fund, ESI contribution, LIC premium, amenities provided, deduction by order of Court etc. is permitted. Maximum deduction can be 50%. However, maximum deduction upto 75% is permissible if deduction is partly made for payment to cooperative society. [Section 7]. FINES Specific notice specifying acts and omissions for which fine can be imposed should be exhibited on notice board etc. Such notice can be issued only after obtaining specific approval from State Government. Fine can be imposed only after giving employee a personal hearing. Fine can be maximum 3% of wages in a month. Fine cannot be recovered in instalments. [Section 8]. Deductions are authorised under the payment of wages act 1948 Pay deductions Employees, workers and some other groups are protected from employers making unauthorised deductions from their pay and wages. Employers can only make a deduction in specific situations and they must follow your employment contract terms. Find out when employers can make deductions and what protection you have. Who is protected from unauthorised pay deductions? As well as employees and workers, protection is given to: apprentices people working under a contract for services Crown servants anyone who works onboard a ship registered in the United Kingdom - unless you work mainly outside Great Britain (GB), are not ordinarily a resident in GB or are employed under merchant shipping legislation

Pay and wages Your wages are slightly different to your pay. Wages are the amount you are paid by your employer in connection to your job. Pay is the basic amount you should be paid (for example your monthly or hourly pay rate). Your wages could include:

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any fees, bonuses, commission, holiday pay or other payments connected with your job statutory payments (such as Statutory Sick Pay or Statutory Maternity Pay) luncheon vouchers, gift tokens or other vouchers of fixed value that can be exchanged for money, goods or services

Agreeing to a deduction If you have agreed in writing to a deduction then you must do this before your employer wishes to make the deduction. For example, if you work in a restaurant and a customer leaves without paying, you must have a written, pre-standing agreement with your employer that any deductions can be made from your pay. Your employer could ask you to sign a deductions agreement after that event, but they could not deduct any money unless it happened again. If your contract allows your employer to make wage deductions, you must have been given either: a written copy of that part of the contract a written explanation of it before your employer can make any deductions

Your wages will not include: loans or advances of wages payments of expenses incurred in employment pension and redundancy payments lump sums on retirement or in compensation for loss of office payments in kind (other than vouchers or tokens that can be exchanged or have a fixed value) tips and other gratuities

You are protected against your employer making deductions from either your pay or wages. If your employer makes a deduction from something that does not count as your pay or wage (for example from your redundancy payment) you are not protected. However you may be able to make a claim for breach of contract if you are entitled to the payment under your employment contract. Before making any deductions, your employer must tell you in writing the full amount you owe and make a demand for the payment. This must also be in writing. Rules for making deductions from your pay Your employer is not allowed to make a deduction from your pay or wages unless: it is required or allowed by law, for example National Insurance, income tax or student loan repayments you agree in writing to a deduction your contract of employment says they can it is a result of any statutory disciplinary proceedings there is a statutory payment due to a public authority you have not worked due to taking part in a strike or industrial action it is to recover an earlier overpayment of wages or expenses it is a result of a court order or Employment Tribunal decision

Kind of Deduction [Section 7(2)] 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Fine Deduction for absence from duty Deduction for damage or Loss Deduction for house accommodation Deduction of Amenities & Services Deduction for Recovery of Advances Deduction for Recovery of loans made for specified purpose Deduction for Income tax Deduction for PF Deduction for payment to cooperative Societies Deduction for Welfare Fund Deduction with the consent of employed person Deduction for trade Union membership fees

Retail work: extra protection from deductions If you work in retail (such as a shop or restaurant) you have extra protection against deductions from your wages. If there is a shortfall in the till or stock shortage, your employer is not allowed to take more than 10 per cent of your gross wages for a pay period. If the 10 per cent isn't enough then your employer can continue to take money from your wages on subsequent paydays. However never more than 10 per cent at a time. An example There is a shortfall of 50 in the till. Your employer wants to deduct this from your earnings. You are paid 250 per week before any deductions for tax or National Insurance etc (250 gross pay). Your employer can take ten per cent of your gross earnings. They must only take 25 one week and then make another deduction from your next pay cheque for 25. If you leave your job, your employer can take the full amount owed from your final pay.

A deduction must not reduce your pay below the National Minimum Wage rate (except a limited amount for accommodation). This applies even if you have given your permission for it. If you were overpaid in error, instead of making a deduction, your employer may try to recover the overpayment by making an application for a court order. For more information about how and when you might be able to prevent your employer from taking back an overpayment, you should speak to one of the following: a solicitor an Acas (Advisory, Conciliation and Arbitration Service) adviser a Citizens Advice Bureau adviser

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PAYMENT OF MINIMUM WAGES ACT 1948 Minimum Wages India 2012 Current Minimum Wage Rate India Legislative protection for workers to receive a minimum wage, can be considered as the hall mark of any progressive nation. It is one of the fundamental premises of decent work. In India, the Minimum Wages Act, 1948 provides for fixation and enforcement of minimum wages in respect of scheduled employments. The Act aims to prevent sweating or exploitation of labour1( According to the NSSO (2004-05) 61st round, around 395 million workers (86%) out of the total workforce of around 457 million workers constitute the unorganized/informal sector. In fact 7% of those employed in organized sector has been identified as informal workers raising the toll of informal sector to 422 million (92%). )through payment of low wages by ensuring a minimum subsistence wage for workers. The Act also requires the appropriate government (both at Centre and States) to fix minimum rates of wages in respect of employments specified in the schedule and also review and revise the same at intervals not exceeding five years. Currently, the number of scheduled employments in the Central sphere is 45 whereas in the States sphere the number is 1650 (when all states are counted). With effect from November 2009, the National Floor Level of Minimum Wage has been increased to Rs 100 per day from Rs 80 per day (which was in effect since 2007). Recently with effect from April 1, 2011 the National Floor Level of Minimum Wage has been raised to Rs 115 per day. Since the respective state governments have been empowered to independently fix minimum wages, disparities between wages in neighboring states are common. In order to reduce this problem and bring comparability the Central government has set up 5 regional committees (table below)2 for harmonization of minimum wages. Current Minimum Wages In India the following States have fixed minimum wages (the list is not exhaustive):

2009) Assam (w.e.f. April 1, 2012 to September 12, 2012)

2009) Jharkhand (w.e.f. April 1, 2012 to September 30, 2012)

March 1, 2011) Punjab (w.e.f. September 1, 2012)

Bihar Karnataka ( w.e.f. April 1, 2012 (w.e.f. April 1, 2012 to September 30, to March 31, 2013) 2012) Chandigarh (w.e.f. April 1, 2012 Kerala * to September 30, 2012) Chhattisgarh Lakshadweep ( w.e.f April 1, 2012 (w.e.f. December 1, to September 30, 2011) 2012) Madhya Pradesh Dadra & Nagar (w.e.f. October 1, Haveli 2012 to March 31, (w.e.f. April 1, 2012) 2013)

Rajasthan (w.e.f. May 1, 2012)

Sikkim (w.e.f. July 1, 2010)

Tamil Nadu (w.e.f April 1, 2012)

Tripura *

Uttarakhand Maharashtra (w.e.f. April 1, 2012 (w.e.f. July 1, 2012 to Daman & Diu to September 30, December 31, 2012) (w.e.f April 1, 2012) 2012) Delhi (w.e.f October 1, 2012 to March 31, 2013) Manipur (w.e.f. February 1, 2011) Uttar Pradesh (w.e.f April 1, 2012 to September 30, 2012) West Bengal (w.e.f August 2010)

Meghalaya Goa (Notification Date (w.e.f. May 13, 2010) August 24, 2009) Gujarat (w.e.f April 1, 2012 to September 30, 2012)

Central Sphere (w.e.f April 1, 2012) Andaman & Nicobar (w.e.f. July 1, 2012) Haryana (w.e.f July 1, 2012) Nagaland (w.e.f. October 1, 2008)

Mizoram (w.e.f. April 1, 2009)

*Revised Minimum Wages. w.e.f. date not available Defining of Unskilled, Semi-skilled and Highly Skilled Workers (i) Unskilled: An unskilled employee is one who does operations that involve the performance of simple duties, which require the experience of little of no independent judgment or previous experience although familiarity with the occupational environment is necessary. His work may thus require in addition to physical exertion familiarity with variety of articles or goods.

Andhra Pradesh (w.e.f. April 1, 2012 Himachal Pradesh Orissa (w.e.f April 1, 2012) (w.e.f. July 13, 2009) to September 30, 2012) Jammu and Arunachal Pradesh Kashmir (w.e.f. February 19, (w.e.f. October 1, Puducherry (Notification date

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(ii) Semi-skilled: A semiskilled worker is one who does work generally of defined routine nature wherein the major requirement is not so much of the judgment, skill and but for proper discharge of duties assigned to him or relatively narrow job and where important decisions made by others. His work is thus limited to the performance of routine operations of limited scope. (iii) Skilled: A skilled employee is one who is capable of working efficiently of exercising considerable independent judgement and of discharging his duties with responsibility. He must posses a thorough and comprehensive knowledge of the trade, craft or industry in which he is employed. (iv) Highly Skilled: A highly skilled worker is one who is capable of working efficiently and supervises efficiently the work of skilled employees. 5 Regional Committees in India Current Minimum Wages Region States/UTs covered

Eastern Region West Bengal, Orissa, Bihar, Jharkhand, (6) Chhattisgarh and Andaman and Nicobar Islands. North Eastern Arunachal Pradesh, Assam, Manipur, Meghalaya, Region (8) Mizoram, Nagaland, Tripura and Sikkim. Southern Region (6) Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Puducherry and Lakshadweep. Punjab, Rajasthan, Himachal Pradesh, Jammu and Kashmir, Haryana, Uttar Pradesh, Uttrakhand, Delhi and Chandigarh. Maharashtra, Gujarat, Goa, Madhya Pradesh, Dadra and Nagar Haveli and Daman and Diu.

Northern Region (9)

Western Region (6)

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WORKMEN COMPENSATION ACT, 1923 This Act may be called the Workmen$s Compensation Act 1923. (2) It extends to the whole of India. (3) It shall come into force on the first day of July 1924. 2. Definitions In this Act unless there is anything repugnant in the subject or context [Clause (a) omitted w.e.f. 1-6-1959.] (b) Commissioner means a Commissioner for Workmen$s Compensation appointed under section 20; (c) compensation means compensation as provided for by this Act; (d) dependent means any of the following relatives of a deceased workman namely :(i) a widow a minor legitimate or adopted son an unmarried legitimate or adopted daughter or a widowed mother; and (ii) if wholly dependant on the earnings of the workman at the time of his death a son or a daughter who has attained the age of 18 years and who is infirm; (iii) if wholly or in part dependant on the earnings of the workman at the time of his death(a) a widower (b) a parent other than a widowed mother (c) a minor illegitimate son an unmarried illegitimate daughter or a daughter legitimate or illegitimate or adopted if married and a minor or if widowed and minor (d) a minor brother or an unmarried sister or a widowed sister if a minor (e) a widowed daughter-in-law (f) a minor child of a pre-deceased son (g) a minor child of a pre-deceased daughter where no parent of the child is alive or (h) a paternal grandparent if no parent of the workman is alive; Explanation : For the purpose of sub-clause (ii) and items (f) and (g) of sub-clause (iii) references to a son daughter or child include an adopted son daughter or child respectively. (e) employer includes any body of persons whether incorporated or not and any managing agent of an employer and the legal representative of a deceased employer and when the services of a workman are temporarily lent or let on hire to another person by the person with whom the workman has entered into a contract of service or apprenticeship means such other person while the workman is working for him; (f) managing agent means any person appointed or acting as the representative of another person for the purpose of carrying on such other person$s trade or business but does not include an individual manager subordinate to an employer;

(ff) minor means a person who has not attained the age of 18 years; (g) partial disablement means where the disablement is of a temporary nature such disablement as reduces the earning capacity of a workman in any employment in which he was engaged at the time of the accident resulting in the disablement and where the disablement is of a permanent nature such disablement as reduces his earning capacity in every employment which he was capable of undertaking at that time : Provided that every injury specified in Part II of Schedule shall be deemed to result in permanent partial disablement; (h) prescribed means prescribed by rules made under this Act; (i) qualified medical practitioner means any person registered under any Central Act or an Act of the Legislature of a State providing for the maintenance of a register of medical practitioners or in any area where no such last-mentioned Act is in force any person declared by the State Government by notification in the Official Gazette to be a qualified medical practitioner for the purpose of this Act; [Clause (j) omitted by Act 15 of 1933] (k) seaman means any person forming part of the crew of any ship but does not include the master of the ship; (l) total disablement means such disablement whether of a temporary or permanent nature as incapacitates a workman for all work which he was capable of performing at the time of the accident resulting in such disablement : Provided that permanent total disablement shall be deemed to result from every injury specified in Part I of Schedule I or from any combination of injuries specified in Part II thereof where the aggregate percentage of the loss of earning capacity as specified in the said Part II against those injuries amount to one hundred per cent or more; (m) wages includes any privilege or benefit which is capable of being estimated in money other than a travelling allowance or the value of any travelling concession or a contribution paid by the employer of a workman towards any pension or provident fund or a sum paid to a workman to cover any special expenses entailed on him by the nature of his employment; (n) workman means any person (other than a person whose employment is of a casual nature and who is employed otherwise than for the purposes of the employer$s trade or business) who is (i) a railway servant as defined in Section 3 of the Indian Railways Act 1890 (9 of 1890) not permanently employed in any administrative district or sub-divisional office of a railway and not employed in any such capacity as is specified in Schedule II or (ia)(a) a master seaman or other member of the crew of a ship. (b) a captain or other member of the crew of an aircraft (c) a person recruited as driver helper mechanic cleaner or in any other capacity in connection with a motor vehicle (d) a person recruited for work abroad by a company and who is employed outside India in any such capacity as is specified in Schedule II and the ship aircraft or motor vehicle or company as

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the case may be is registered in India or; (ii) employed in any such capacity as is specified in Schedule II whether the contract of employment was made before or after the passing of this Act and whether the contract is expressed or implied oral or in writing; but does not include any person working in the capacity of a member of the Armed Forces of the Union; and any reference to a workman who has been injured shall where the workman is dead includes a reference to his dependants or any of them. List Of Injuries Deemed To Result In Permanent Total Disablement S.No. Description of injury Percentage of loss of earning capacity 1. Loss of both hands or amputation at higher sites 100 2. Loss of a hand and a foot 100 3. Double amputation through leg or thigh, or amputation through leg or thigh on one side and loss of other foot 100 4. Loss of sight to such an extent as to render the claimant unable to perform any work for which eye-sight is essential 100 5. Very severe facial disfigurement 100 6. Absolute deafness 100 List Of Injuries Deemed To Result In Permanent Partial Disablement Amputation cases-upper limbs (either arm) 1 Amputation through shoulder joint 90 2 Amputation below shoulder with stump less than 20.32 cms from tip of acromion 80 3. Amputation from 20.32 cms from tip of acromion to less than 11.43 cms below tip of olecranon 70 4. Loss of a hand or of the thumb and four fingers of one hand or amputation from 11.43 cms below tip of olecranon 60 5 Loss of thumb 30 6 Loss of thumb and its metacarpal bone 40 7 Loss of four fingers of one hand 50 8 Loss of three fingers of one hand 30 9 Loss of two fingers of one hand 20 10 Loss of terminal phalanx of thumb 20 Amputation cases-lower limbs 11 Amputation of both feet resulting in end bearing stumps 90 12 Amputation through both feet proximal to the metatarsophalangeal joint 80 13 Loss of all toes of both feet through the metatarso-phalngeal joint 40 14 Loss of all toes of both feet proximal inter-phalangeal joint 30 15 Loss of all toes of both feet distal to the proximal interphalangeal joint 20 16 Amputation at hip 90 17 Amputation below hip with stump not exceeding 12.70 cms in length measured from tip of great trochanter 80 18 Amputation below hip with stump exceeding 12.70 cms in length measured from tip of great trochanter but not beyond middle thigh 70 19 Amputation below middle thigh to 8.89 cms below knee 60 20 Amputation below knee with stump exceeding 8.89 cms but not exceeding 12.70 cms 50 21 Amputation below knee with stump exceeding 12.70 cms 50 22 Amputation of one foot resulting in end bearing stump 50 23 Amputation through one foot proximal to the metatarsophalangeal joint 50 24 Loss of all toes one foot through the metatarso-phalangeal joint 20 OTHER INJURIES 25 Loss of one eye, without complication, the other being normal 40

26 Loss of vision of one eye, without complications or disfigurement of eye-ball, the other being normal 30 26A Loss of partial vision of one eye 10 Loss of A. Fingers of right or left hand INDEX FINGER 27 Whole 14 28 Two phalanges 11 29 One phalanx 9 30 Guillotine amputation of tip without loss of bone 5 MIDDLE FINGER 31 Whole 12 32 Two phalanges 9 33 One phalanx 7 34 Guillotine amputation of tip without loss of bone 4 RING OR LITTLE FINGER 35 Whole 7 36 Two phalanges 6 37 One phalanx 5 38 Gulliotine amputation of tip without loss of bone 2 B. Toes of right or left foot GREAT TOE 39 Through metatarso-phalanges joint 14 40 Part ,with some loss of bone 3 ANY OTHER TOE 41 Through metatarso-phalangeal joint 3 42 Part ,with some loss of bone 1 TWO TOES OF ONE FOOT, EXCLUDING GREAT TOE 43 Through metatarso-phalangeal joint 5 44 Part ,with some loss of bone 1 THREE TOES OF ONE FOOT, EXCLUDING GREAT TOE 45 Through metatarso-phalangeal joint 6 46 Part, with some loss of bone 3WX

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THE WORKMEN'S COMPENSATION ACT, 1923 (Amended in 1984, 2000) The Workmen's Compensation Act 1923 was enacted to help workmen face the hardships resulting from accidents. These legal provisions apply equally to women workers also. An employer liable to provide monetary compensation to a disabled workman, or to his dependents, in case of his death, if the disablement or death occurs "out of and in the course of employment."

Scheduled I % of Description of injury Earning capacity loss of Part I Injuries Deemed to Result in Permanent Total Disablement 1. Loss of both hands 100 2. Loss of hand and a foot 100 Amputation of one leg/thigh and loss of other 3. 100 foot 4. Loss of sight and unable to work 100 5. Very severe disfigurement 100 6. Absolute deafness 100 Part II Injuries Deemed to Result in Permanent Partial Disablement 1. Amputation through shoulder joint 90 Amputation below shoulder with stump <8 2. 80 from tip of acromion Amputation from 8 from tip of acromion to <43. 70 1/2 Below top of olecranon Loss of hand or of thumb and four fingers of one 4. 60 hand 5. Loss of thumb 30 6. Loss of thumb and its metacarpal bone 40 7. Loss of four fingers of one hand 50 8. Loss of three fingers of one hand 30 9. Loss of two fingers of one hand 20 10. Loss of terminal phalanx of thumb 20 Amputation cases-lower limbs Amputation of both feet resulting in end-bearing 11. 90 stumps Amputation though both feet proximal to 12. 80 metatarsophalangeal joint Loss of all toes of both feet through the 13. 40 metararsophalangeal joint Loss of all toes of both feet proxmial to the 14. 30 interphalangeal joint Loss of all toes of both feet distal to the 15. 20 proximal interphalangeal joint 16. Amputation at hip 90 Amputation below hip with stump not exceeding 17. 80 5 from tip of greater trochanter Amputation below hip with stump exceeding 5 18. 70 but not beyond high Amputation below middle high to 3-1/2 below 19. 60 knee Amputation below knee with stump exceeding 20. 50 3-1/2 but not 5 Amputation below knee with stump exceeding 21. 40 5 22. Amputation of one foot resulting in end-bearing 30 Amputation through one foot proximal to 23. 30 metatarsophalangeal joint Loss of all toes of one foot through the 24. 20 metatarsophalangeal joint Other injuries 25. Loss of one eye, without complication to other 40 26. Loss of vision of one eye and other is normal 30 SNO.

Any worker employed in any of a wide variety of hazardous occupations who has suffered an injury is eligible for compensation. If he dies, his dependents can claim the benefits provided by the Act. The injury must disable him for more than 3 days, totally or partially. The disablement means the loss in the earning capacity of a workman in every employment which he was capable of doing at the time of the accidents. Its effect may be temporary or permanent (Schedule 1). To get compensation for an occupational disease, a workman must have been employed in the specified occupation for a continuous period of at least 6 months. If the compensation is not paid within one month after the date due, a simple interest at 6% per annum on the arrears can be recovered from the employer.

The compensation is paid to the worker according to the damage: 1. In case of death: 40% of the monthly wage of the deceased workman, multiplied by the relevant factor or Rs. 20,000; whichever is more. 2. In case of total permanent disablement: 50% of the monthly wage, multiplied by the relevant factor: or Rs. 24,000; whichever is more. 3. In case of partial permanent disablement: The compensation is a percentage of that payable in the case of total permanent disablement. The earning capacity is determined by a qualified medical practitioners. 4. In case of (total or partial) temporary disablement" A sum equal to 25% of the monthly wages of the workman shall be paid halfmonthly. The minimum rate of compensation is proposed to be raised from 50,000 to Rs. 80,000 for death and from Rs. 60,000 to Rs. 90,000 in case of permanent/total disablement. State Government appoint Commissioners to investigate and solve every case for workmen's compensation. The appointed Commissioner's tribunal has some of the powers of a civil court. An appeal against any order of the Commissioner can be filed in the High Court. This must be done within 60 dasy of the order or decision of the Commissioner.

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27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48.

Index Finger of right or left hand Whole Two phalanges One phalanx Guillotine amputation of tip without loss of bone Middle finger Whole Two One phalanx Guillotine amputation of tip without loss of bone Ring or little Whole Two One phalanx Guillotine amputation of tip without loss of bone Toes of right or left foot Great Toe Through metatarsophalangeal joint Part, without loss of bone Any other toe Part, any other toe without some loss of bone Two toes of one foot through metatarsophalangeal joint Part, two toes without loss of bone Three toes Three toes part only without loss of bone Four toes of one foot, exceeding great toe Part of four toes, without loss of bone

14 11 9 5 12 9 7 4 7 6 5 2 14 3 3 1 5 2 6 3 9 3

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PAYMENT OF GRATUITY ACT, 1972

Gratuity is a lump sum payment to employee when he retires or leaves service. It is basically a retirement benefit to an employee so that he can live life comfortably after retirement. However, under Gratuity Act, gratuity is payable even to an employee who resigns after completing at least 5 years of service. In DTC Retired Employees v. Delhi Transport Corporation 2001(4) SCALE 30 = 2001 AIR SCW 2005, it was observed that gratuity is essentially a retiring benefit which as per Statute has been made applicable on voluntary resignation as well. Gratuity is reward for good, efficient and faithful service rendered for a considerable period. ACT PROVIDES FOR MINIMUM GRATUITY ONLY The Gratuity Act provides only for minimum gratuity payable. If employee has right to receive higher gratuity under a contract or under an award, the employee is entitled to get higher gratuity. [Section 4(5)]. Employers liable under the scheme - The Act applies to every factory, mine, plantation, port, and railway company. It also applies to every shop and establishment where 10 or more persons are employed or were employed on any day in preceding 12 months. [Section1(3)]. Since the Act is also applicable to all shops and establishments, it will apply to motor transport undertakings, clubs, chambers of commerce and associations, local bodies, solicitors offices etc. , if they are employing 10 or more persons. Employees eligible for gratuity Employee means any person (other than apprentice) employed on wages in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled or unskilled, manual, supervisory, technical or clerical work, whether terms of such employment are express or implied, and whether such person is employed in a managerial or administrative capacity. However, it does not include any Central/State Government employee. [Section 2(e)]. Thus, the Act is applicable to all employees - workers as well as persons employed in administrative and managerial capacity. Gratuity is payable to a person on (a) resignation (b) termination on account of death or disablement due to accident or disease (c) retirement (d) death. Normally, gratuity is payable only after an employee completes five years of continuous service. In case of death and disablement, the condition of minimum 5 years service is not applicable. [Section 4(1)]. The Act is applicable to all employees, irrespective of the salary. Amount of gratuity payable - Gratuity is payable @ 15 days wages for every year of completed service. In the last year of service, if the employee has completed more than 6 months, it will be treated as full year for purpose of gratuity. - - In case of seasonal establishment, gratuity is payable @ 7 days wages for each season. [Section 4(2)]. Wages shall consist of basic plus D.A, as per last drawn salary. However, allowances like bonus, commission, HRA, overtime etc. are not to be considered for calculations. [Section 2(s)]. In case of employees paid on monthly wages basis, per day wages should be calculated by dividing monthly salary by 26 days to arrive at daily wages e.g. if last drawn salary of a person (basic plus DA) is Rs. 2,600 per month, his salary per day will be Rs. 100 (2,600 divided by 100). Thus, the employee is entitled to get Rs. 1,500 [15 days multiplied by Rs. 100 daily salary] for every year of completed service. If he has completed 30 years of service, he is entitled to get gratuity of Rs. 45,000 (Rs. 1,500 multiplied by 30). Maximum gratuity payable under the Act is Rs. 3.50 lakhs (the ceiling was Rs. 1,00,000 which was increased to 2.50 lakhs on 24.9.97 by an ordinance which was later increased to Rs 3.50 lakhs while converting the ordinance into Act].

MAXIMUM GRATUITY PAYABLE Maximum gratuity payable is Rs 4 lakhs. [Section 4(3)]. [Of course, employer can pay more. Employee has also right to get more if obtainable under an award or contract with employer, as made clear in Section 4(5)]. INCOME-TAX EXEMPTION - Gratuity received upto Rs. 3.50 lakhs is exempt from Income Tax. Gratuity paid above that limit is taxable. [Section 10(10) of Income Tax Act]. - - However, employee can claim relief u/s 89 in respect of the excess amount. No Compulsory insurance of gratuity liability Section 4A provides that every employer must obtain insurance of his gratuity liability with LIC or any other insurer. However, Government companies need not obtain such insurance. If an employee is already member of gratuity fund established by an employer, he has option to continue that arrangement. If an employer employing more than 500 persons establishes an approved gratuity fund, he need not obtain insurance for gratuity liability. - - However, this Section has not yet been brought into force. Hence, presently, such compulsory insurance is not necessary. Gratuity cannot be attached - Gratuity payable cannot be attached in execution of any decree or order of any civil, revenue or criminal court, as per Section 13 of the Act.

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THE EMPLOYEES PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952

The Employees' Provident Fund Organisation is a statutory body of the Government of India under the Ministry of Labour and Employment. It administers a compulsory contributory Provident Fund Scheme, Pension Scheme and an Insurance Scheme. It is one of the largest social security organisations in the world in terms of the number of covered beneficiaries and the volume of financial transactions undertaken. An Act to provide for the institution of provident funds, pension fund and deposit-linked insurance fund for employees in factories and other establishments. Be it enacted by Parliament as follows:1. Short title, extent and application.- (1) This Act may be called the Employees Provident Funds and Miscellaneous Provisions Act, 1952. (2) It extends to the whole of India except the State of Jammu and Kashmir. (3) Subject to the provisions contained in section 16, it applies (a) to every establishment which is a factory engaged in any industry specified in Schedule I and in which twenty or more persons are employed and (b) to any other establishment employing twenty or more persons or class of such establishments which the Central Government may, by notification in the Official Gazette, specify, in this behalf: Provided that the Central Government may, after giving not less than two months notice of its intention so to do, by notification in the Official Gazette, apply the provisions of this Act to any establishment employing such number of persons less than twenty as may be specified in the notification. (4) Notwithstanding anything contained in sub-section 3 of this section or-sub-section 1 of section16, where it appears to the Central Provident Fund Commissioner, whether on an application made to him in this behalf or otherwise, that the employer and the majority of employees in relation to any establishment have agreed that the provisions of this Act should be made applicable to the establishment, he may, by notification in the Official Gazette, apply the provisions of this Act to that establishment on and from the date of such agreement or from any subsequent date specified in such agreement. (5) An establishment to which this Act applies shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time falls below twenty. 2. Definitions. - In this Act, unless the context otherwise requires, (a) Appropriate Government means -

(i) in relation to an establishment belonging to, or under the control of, the Central Government or in relation to, an establishment connected with a railway company, a major port, a mine or an oilfiled or a controlled industry or in relation to an establishment having departments or branches in more than one State, the Central Government: and (ii) in relation to any other establishment, the State Government: (aa) authorised officer means the Central Provident Fund Commissioner, Additional Central Provident Fund Commissioner, Deputy Provident Fund Commissioner, Regional Provident Fund Commissioner or such other officer as may be authorised by the Central Government, by notification in the Official Gazette; (b) basic wages means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include(i) the cash value of any food concession; (ii) any dearness allowance that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living, house-rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment; (iii) any presents made by the employer; (c) Contribution means a contribution payable in respect of a member under a scheme or the contribution payable in respect of an employee to whom the Insurance Scheme applies; (d) controlled industry means any industry the control of which by the Union has been declared by a Central Act to be expedient in the public interest; (e) employer means(i) in relation to an establishment which is a factory, the owner or occupier of the factory, including the agent of such owner or occupier, the legal representative of a deceased owner or occupier and, where a person has been named as a manager of the factory under clause f of sub-section 1 of section 7 of the Factories Act, 1948 (63 of 1948), the person so named; and (ii) in relation to any other establishment, the person who, or the authority which, has the ultimate control over the affairs of the establishment, and where the said affairs are entrusted to a manager, managing director or managing agent, such manager, managing director or managing agent; (f) employee means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an establishment and who gets his wages directly or indirectly from the employer, and includes any person,(i) employed by or through a contractor in or in connection with the work of the establishment;

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(ii) engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of 1961) or under the standing orders of the establishment; (ff) exempted employee means an employee to whom a Scheme or the Insurance Scheme, as the case may be, would, but for the exemption granted under section 17, have applied; (fff) exempted establishment means an establishment in respect of which an exemption has been granted under section 17 from the operation of all or any of the provisions of any Scheme or the Insurance Scheme, as the case may be, whether such exemption has been granted to the establishment as such or to any person or class of persons employed therein; (g) factory means any premises, including the precincts thereof, in any part of which a manufacturing process is being carried on or is ordinarily so carried on, whether with the aid of power or without the aid of power; (gg) *** (ggg) *** (h) Fund means the Provident Fund established under a Scheme; (i) industry means any industry specified in Schedule I, and includes any other industry added to the Schedule by notification under section 4; (ia) Insurance Fund means the Deposit-linked Insurance Scheme framed under sub-section 2 of section 6C; (ib) Insurance Scheme means the Employees Deposit-linked Insurance Scheme framed under sub-section 1 of section 6C; (ic) manufacture or manufacturing process means any process for making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal; (j) member means a member of the Fund; (k)occupier of a factory means the person, who has ultimate control over the affairs of the factory, and, where the said affairs are entrusted to a managing agent, such agent shall be deemed to be the occupier of the factory; (kA) Pension Fund means the Employees Pension Fund established under sub-section 2 of section 6A; (kB) Pension Scheme means the Employees Pension Scheme framed under sub-section 1 of section 6A; (ka) prescribed means prescribed by rules made under this Act; (kb) Recovery Officer means any officer of the Central Government, State Government or the Board of Trustees constituted under section 5A, who may be authorised by the Central Government, by notification in the Official Gazette, to exercise the powers of a Recovery Officer under this Act; (l) Scheme means the Employees Provident Funds scheme framed under section 5;

(l1) superannuation, in relation to an employee, who is the member of the Pension Scheme, means the attainment, by the said employee, of the age of fifty-eight years. (m) Tribunal means the Employees Provident Funds Appellate Tribunal constituted under section 7D. 2A. Establishments to include all departments and branches. For the removal of doubts, it is hereby declared that where an establishment consists of different departments or has branches, whether situate in the same place or in different places, all such departments or branches shall be treated as parts of the same establishment. 3. Power to apply Act to an establishment which has a common provident fund with another establishment. - Where immediately before this Act becomes applicable to an establishment there is in existence a provident fund which is common to the employees employed in that establishment and employees in any other establishment, the Central Government may, by notification in the Official Gazette direct that the provisions of this Act shall also apply to such other establishment. 4. Power to add to Schedule I. (1) The Central Government may, by notification in the Official Gazette, add to Schedule I any other industry in respect of the employees whereof it is of opinion that a Provident Fund Scheme should be framed under this Act, and thereupon the industry so added shall be deemed to be an industry specified in Schedule I for the purpose of this Act. (2) All notifications under sub-section 1 shall be laid before Parliament, as soon as may be, after they are issued. 5. Employees Provident Funds Scheme. (1) The Central Government may, by notification in the Official Gazette, frame a scheme to be called the Employees Provident Fund Scheme for the establishment of provident funds under this Act for employees or for any class of employees and specify the establishments or class of establishments to which the said Scheme shall apply and there shall be established, as soon as may be after the framing of the Scheme, a Fund in accordance with the provisions of this Act and the Scheme. (1A) The Fund shall vest in, and be administered by, the Central Board constituted under section 5A. (1B) Subject to the provisions of this Act, a Scheme framed under sub-section 1 may provide for all or any of the matters specified in Schedule II. (2) A Scheme framed under sub-section 1 may provide that any of its provisions shall take effect either prospectively or retrospectively on such date as may be specified in this behalf in the Scheme. 5A. Central Board. - (1) The Central Government may, by notification in the Official Gazette, constitute, with effect from such date as may be specified therein, a Board of Trustees for the territories to which this Act extends hereinafter in this Act referred to as the Central

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Board consisting of the following persons as members, namely:(a) a Chairman and a Vice-Chairman to be appointed by the Central Government; (aa) the Central Provident Fund Commissioner, Ex officio; (b) not more than five persons appointed by the Central Government from amongst its officials; (c) not more than fifteen persons representing Governments of such States as the Central Government may specify in this behalf, appointed by the Central Government; (d) ten persons representing employers of the establishments to which the Scheme applies, appointed by the Central Government after consultation with such organisations of employers as may be recognised by the Central Government in this behalf; and (e) ten persons representing employees in the establishments to which the Scheme applies, appointed by the Central Government after consultation with such organisations of employees as may be recognised by the Central Government in this behalf. (2) The terms and conditions subject to which a member of the Central Board may be appointed and the time, place and procedure of the meetings of the Central Board shall be such as may be provided for in the Scheme. (3) The Central Board shall subject to the provisions of section 6 and section 6C administer the Fund vested in it in such manner as may be specified in the Scheme. (4) The Central Board shall perform such other functions as it may be required to perform by or under any provisions of the Scheme, the Pension Scheme and the Insurance scheme. (5) The Central Board shall maintain proper accounts of its income and expenditure in such form and in such manner as the Central Government may, after consultation with the Comptroller and Auditor-General of India, specify in the Scheme. (6) The accounts of the Central Board shall be audited annually by the comptroller and Auditor-General of India and any expenditure incurred by him in connection with such audit shall be payable by the Central Board to the Comptroller and Auditor-General of India. (7) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Central Board shall have the same rights and privileges and authority in connection with such audit as the Comptroller and AuditorGeneral has, in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers, documents and papers and inspect any of the offices of the Central Board. (8) The accounts of the Central Board as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded to the Central Board which shall forward the same to the Central Government along with its comments on the report of the Comptroller and Auditor-General.

(9) It shall be the duty of the Central Board to submit also to the Central Government an annual report of its work and activities and the Central Government shall cause a copy of the annual report, the audited accounts together with the report of the Comptroller and Auditor-General of India and the comments of the Central Board thereon to be laid before each House of Parliament. 5AA. Executive Committee. (1) The Central Government may, by notification in the Official Gazette, constitute, with effect from such date as may be specified therein, an Executive Committee to assist the Central Board in the performance of its functions. (2) The Executive Committee shall consist of the following persons as members, namely:(a) a Chairman appointed by the Central Government from amongst the members of the Central Board: (b) two persons appointed by the Central Government from amongst the persons referred to in clause b of sub-section 1 of section 5A; (c) three persons appointed by the Central Government from amongst the persons referred to in clause c of sub-section 1 of section 5A; (d) three persons representing the employers elected by the Central Board from amongst the persons referred to in clause d of subsection 1 of section 5A; (e) three persons representing the employees elected by the Central Board from amongst the persons referred to in clause e of subsection 1 of section 5A; (f) the Central Provident Fund Commissioner, ex-officio. (3) The terms and conditions subject to which a member of the Central Board may be appointed or elected to the Executive Committee and the time, place and procedure of the meetings of the Executive Committee shall be such as may be provided for in the Scheme. 5B. State Board.- (1) The Central Government may, after consultation with the Government of any State, by notification in the Official Gazette, constitute for that State a Board of Trustees hereinafter in this Act referred to as the State Board in such manner as may be provided for in the Scheme. (2) A State Board shall exercise such powers and perform such duties as the Central Government may assign to it from time to time. (3) The terms and conditions subject to which a member of a State Board may be appointed and the time, place and procedure of the meetings of a State Board shall be such as may be provided for in the Scheme. 5C. Board of Trustees to be body corporate.- Every Board of Trustees constituted under section 5A or section 5B shall be a body corporate under the name specified in the notification constituting it, having perpetual succession and a common seal and shall by the said name sue and be sued. 5D. Appointment of officers. (1) The Central Government shall appoint a Central Provident Fund Commissioner who shall be the

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chief executive officer of the Central Board and shall be subject to the general control and superintendence of that Board. (2) The Central Government may also appoint a Financial Adviser and Chief Accounts Officer to assist the Central Provident Fund Commissioner in the discharge of his duties. (3) The Central Board may appoint, subject to the maximum scale of pay, as may be specified in the Scheme, as many Additional Central Provident Fund Commissioners, Deputy Provident Fund Commissioners, Regional Provident Fund Commissioners, Assistant Provident Fund Commissioners and such other officers and employees as it may consider necessary for the efficient administration of the Scheme, the Pension Scheme and the Insurance Scheme. (4) No appointment to the post of the Central Provident Fund Commissioner or an Additional Central Provident Fund Commissioner or a Financial Adviser and Chief Accounts Officer or any other post under the Central Board carrying a scale of pay equivalent to the scale of pay of any Group A or Group B post under the Central Government shall be made except after consultation with the Union Public Service Commission: Provided that no such consultation shall be necessary in regard to any such appointment (a) for a period not exceeding one year; or (b) if the person to be appointed is at the time of his appointment(i) a member of the Indian Administrative Service, of (ii) in the service of the Central Government or a State Government or the Central Board in a Group A or Group B post. (5) A state Board may, with the approval of the State Government concerned, appoint such staff as it may consider necessary. (6) The method of recruitment, salary and allowances, discipline and other conditions of service of the Central Provident Fund Commissioner, and the Financial Adviser and Chief Accounts Officer shall be such as may be specified by the Central Government and such salary and allowances shall be paid out of the fund. (7) (a) The method of recruitment, salary and allowances, discipline and other conditions of service of the Additional Central Provident Fund Commissioner, Deputy Provident Fund Commissioner, Regional Provident Fund Commissioner, Assistant Provident Fund Commissioner and other officers and employees of the Central Board shall be such as may be specified by the Central Board in accordance with the rules and orders applicable to the officers and employees of the Central Government drawing corresponding scales of pay: Provided that where the Central Board is of the opinion that it is necessary to make a departure from the said rules or orders in respect of any of the matters aforesaid, it shall obtain the prior approval of the Central Government.

(b) In determining the corresponding scales of pay of officers and employees under clause a, the Central Board shall have regard to the educational qualifications, method of recruitment, duties and responsibilities of such officers and employees under the Central Government and in case of any doubt, the Central Board shall refer the matter to the Central Government whose decision thereon shall be final. (8) The method of recruitment, salary and allowances, discipline and other conditions of service of officers and employees of a State Board shall be such as may be specified by that Board, with the approval of the State Government concerned. 5DD. Acts and proceedings of the Central Board or its Executive Committee or the State Board not to be invalidated on certain grounds. No act done or proceeding taken by the Central Board or the Executive Committee constituted under section 5AA or the State Board shall be questioned on the ground merely of the existence of any vacancy in, or any defect in the constitution of, the Central Board or the Executive Committee or the State Board, as the case may be. 5E. Delegation. - The Central Board may delegate to the Executive Committee or to the Chairman of the Board or to any of its officers and a State Board may delegate to its Chairman or to any of its officers, subject to such conditions and limitations, if any, as it may specify, such of its powers and functions under this Act as it may deem necessary for the efficient administration of the Scheme, the Pension Scheme and the Insurance Scheme.

Objective The Employee's provident funds and miscellaneous provisions act, 1952 is enacted to provide a kind of social security to the industrial workers. The Act mainly provides retirement or old age benefits, such as Provident Fund, Superannuation Pension, Invalidation Pension, Family Pension and Deposit Linked Insurance. Applicability of the Act To every factory employing 20 or more persons. An employee whose pay at the time he is otherwise entitled to become a member of the fund exceeds Rs.6500/- per month An Employee who having been a member of the fund, has withdrawn the fullamount of his contribution in the fund (a) on retirement from service after attaining the age of 55 years or (b) before migration from India for permanent settlement abroad; or for taking employement abroad.

Rates of Contribution (Provident Fund is Calculated from Basic Salary + DA) Employee's Employer's Scheme Contribution Contribution Employee Provident Fund (EPF) 12% 3.67%

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Employee Pension Scheme (EPS) Administration Charges Employee Deposit-Linked Insurance Scheme (EDLI) EDLI Administrative Charges Total

8.33% 1.10% 0.50% 12% 0.01% 13.61%

Compliance Charts for Provident Fund Type of Compliance Form No Compliance Submitted Date to At the time of RPFC Office Joining Before 15th of Every Month State Bank of India RPFC Office RPFC Office RPFC Office RPFC Office RPFC Office RPFC Office

Declation Form from New 2 Joinees Montly Contribution of Employer & Employee in Challan Challan for previous month Return of Employees 5 Qualifying Return of Employees 10 Leaving

Before 15th of Every Month Before 15th of Every Month Before 25th of Montly Return 12A Every Month Before 30th of Annual Return 3A & 6A April When New Transfer of PF A/c 13 Recruit At the time of 19,10C Final Settlement Leaving the & 10D service Advances for various After 5 Years of 31 purpose membership Issue of Individual PF A/C In the Month of 9 No. Joining

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EMPLOYEE'S STATE INSURANCE CORPORATION (ESIC) 1948 Form 01 Introduction The object of the Act is to secure sickness, maternity, disablement and medical benefits to employees of factories and establishmens and dependents benefits to the dependents of such employees. Applicability of the Act To all Factories & establishments employing 20 or more employees. Every employee drawing wages (Gross Salary) upto Rs.10,000/- Per month. Wages for ESI Contributions Registers/files to be maintained by the employer Not to be deemed as Wages To be deemed as Wages Contribution paid by Basic Pay the employerto any pension/ Dearness allowance provident fund or under ESI House rent allowance Act. City compensatory Sum paid to defray allowance special expenses entailed by Overtime wages (but not to the nature of employementDaily Allowance paid for the be taken into account for determining the coverage of an period spent on tour. employee) Gratuity payable on discharge Payment for day of rest Pay in lieu of notice of Production incentive Bonus other than statutory retrenchment compensation Benefits paid under the bonus ESI Scheme Night Shift allowance Encashment of Leave Heat, Gas & Dust allowance Payment of Inam which Payment for unsubstitued does not form part of the holidays terms of Employment Meal /Food allowance Washing allowance for Suspension allowance livery Lay off Compensation Conveyance Amount Children education towards reimbursement for allowance (not being reimbursement for actual tuition duty related journey fee) Form- 01A Form 3 Form 5 Form 5a Form 6 Form 10 Form 11 Forms for Employees Form 1 Form 2 Form 9 Form 14 Form 15 Form 16 Form 19 Form 20 Form 22 Form 23 Form 24

Forms for Employer Employer's Registration Form Annual information of factory/establishment submission form Return of Declaration forms Return of contributions Statement of advance payment of contributions Register of employees Abstention verification Accident Register

Declaration Form

Addition / Deletion in Family declaration form Claim form for sickness /TDB/ Maternity Claim form for Permanent disablement benefit (PDB) Claim form for Dependant Benefit (DB) Claim form for periodical payments of DB Claim for Maternity benefit Claim form for Maternity benefit after death of child Claim form for Funeral Expenses Life certificate Dependant benefits declaration

ESI Scheme Today The ESI has implemented 677 centres, and covered 2.38 Lacs employers, 85 Lacs Insured Persons,330 Lacs Beneficiaries, 183 ESI Hospitals,1453 Dispensaries & 2950 Panel Clinics. Contribution Period If the person joined insurance employment fo the first time, say on 5 thJanuary, his first contribution period will be from 5th January to 31 st March and his corresponding first benefit will be from 5th October to 31 st December. Benefits

Rates of Contribution Scheme Employee State Insurance (ESI) Employee's Contribution 1.75% Employer Contribution 4.75%

Medical Benefit Sickness Benefit Maternity Benefit Dependent Benefit Disablement Benefit Funeral Expenses Payment of Contribution

Contribution Period 1st April to 30th September. 1st October to 31st March.

The total amount of contribution (employees share and employer's share) is to be deposited with the authorised bank through a challan in the prescribed form in quadruplicate on or before 21 st of month following the calendar month in which the wage fall due.

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