Human Resources for the modern HR Manager

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Labour Laws
Liabilities Of Directors And Officers Of Companies

Act

Person Responsible

Penal Provisions

1. Payment of Bonus Act,

1965.

Every Person who was in charge and was

responsible to the Company

Imprisonment for six months or with fine of

Rs.1,000 or with both.

2. Payment of Gratuity
Act,1972

The person who has the ultimate control

over the affairs of the establishment or
where such affairs are entrusted to any
other person, whether called a Manager,
Managing Director & by any other name
such person.

Imprisonment for minimum 6 months and

maximum one year or with fine up to Rs.
20,000 or with both.

3. Payment of
Wages Act, 1936

Whoever is responsible for the payment of

wages to an employed person.

Varied punishments with fine ranging from

two hundred rupees to one thousand Rupees,
depending on the violation of concerned
provisions.

4. The Bombay
Shops and
Establishments
Act, 1948

Person owning or having charge of

For first, second or subsequent offenses, fine
business of an Establishment, and includes of Rs. 100/- which may extend to Rs. 1500/-.
a Manager, agent or other persons acting in
the General Management or control of an
establishment.

5. The Workmen's
Compensation
Act, 1923

Every employer.
(Employer means body of persons)

Fine up to five hundred rupees

6.The Industrial
Employment
Standing Order Act. 1946

The Owner of an Industrial Establishment.

Five thousand rupees and in the case of a

continuing offenses with a further fine which
may extend to two hundred rupees for every
day.

7. The Maternity
Benefit Act, 1961

The person who has the ultimate control of

the affairs of the establishment or where
the any other person, whether called
Manager, Managing Director or
Managing agent, such person.

Imprisonment which shall not be less than

three months but which may extend to one
year and with fine which shall not be less
than two thousand rupees.

8. The Minimum
Wages Act, 1948

The Manager of the Factory in Factories or Imprisonment for six months or with fine
in any other case any person responsible to which may extend to five hundred rupees or
the owner for the supervision and control
with both.
of employees.

9. The Motor
Transport Workers
Act, 1961

If the Commissioner is attributable to any

neglect on the part of any Director,
Manager, or any Officer of the Company,
such director, manager or officer shall be
liable.

10. The Industrial

Disputes
Act, 1947

Every Director, Manager Secretary or other Punishment varies depending on the violation
Officers or person concerned with the
of concerned provisions.
Management thereof, unless he proves that Imprisonment for six months or one year and

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Punishment varies with imprisonment which

may be for one month or three months or
with fine, depending on the violation of
concerned provision.

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Human Resources for the modern HR Manager

21/08/15 4:43 pm

the offenses was committed without his

knowledge and consent.

fine of Rs. 1000 and Rs. 5,000 as the case

may be.

11. The Apprentices

Act, 1961

Any person who employs person to do any Imprisonment for six months or with fine or
work and includes any person entrusted
with both.
with the supervision and control of
employees in such establishment.

12. The Contract

Labour Act, 1970

Director of the Company unless he proves

that the offenses was committed without
his knowledge.

Imprisonment for three months or with fine

of Rs. 500 or with both.

13. The Employees

Provident Funds and
Miscellaneous
Provisions Act, 1952.

Director of the Company

Imprisonment up to five years.

14. The Employees,

State Insurance
Act, 1948

In a Factory, the owner or Occupier, In any Imprisonment for one year or six months
other case, the person responsible for the according to the violation of concerned
supervision and Control of the
provision and with fine.
Establishment.

15. The Factories

Act, 1948

The occupier and manager of the Factory

years or with fine (Occupier means the
Director of the Company).

Imprisonment for two years or with fine

which may extend to one lakh rupees or with
both and if the contravention is continued
with a further fine which may extend to one
thousand for each day.

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