TOPICS TO STUDY ?

The Employees Provident Fund & Misc. Provisions Act 1952. Payment Of Gratuity Act 1972.

The Workmen Compensation Act 1923.

Employees Provident Fund Act 1952

Section 5 of the act empowers central government to frame a scheme to be called The Employees Provident Fund Scheme. The Central government shall specify the establishments or class of establishment to which the scheme would apply.

Object
The act was passed with a view to making some provisions for the future of the industrial worker after his: 1. Retirement

2.

Early death
monitary assistance to industrial employees and their families.

The object of the act is to provide substancial security and timely

Further the object of the act is to protect the workers in

1. 2. 3. Old age Disablement Early death of bread winner

Applicability
It is applicable to any establishment employing 20 or more persons.

Does not apply to co-operative socities

employing less than 50 persons.

The central govt. is empower to apply the same

provison to any establishment by giving notice of

atleast two months.

Method Of Payments
An employer is bound to pay both his share and employee
share of contribution. The employer is required to pay following administrative charges: 1. @1.10% of employees wages subject to min. of RS.5

2. @0.01% of employees wages subject to min. of RS.2 every

month for admin. of deposit link insaurance fund. The employer should with in 15 days of close of every month should deposit amount.

Withdrawls
A member can withdraw full amount in: 1. Retirement of service at the age of 55. 2. Retirement on account of permanent and total incapacity. 3. Migration from INDIA to permanent settlement abroad.

4. Termination of service.

Partial withdrawl
Financing LIC

House making
Illnes of family member Damage to movable and immovable property due to calamity of nature. Cut in supply of electricity to the establishment.

Employees Pension Scheme

Under the new scheme 8.33% of the employer contribution will be diverted to the pension fund. The remaining 1.63% will be added to EPF. The govt. will contribute 1.16% of the monthly salary of the employer to pension fund.

Payment Of Gratuity Act 1972

Section 4 of the act tells that gratuity shall be payble to an employee on the termination of his employment after he has rendered continuos service for not less than 5 years.

Payment fo gratuity is also payble on: 1. Superannuation 2. On retirement / resignation

3. On death / disablement due to accident /

disease.

Explanation
Completion of continuos service of 5 years in sot necessary where the
termination of employment of any employer is due to death / disablement. At the time of death of any employee the gratuity is payble to his legal hier or nominee. In case of disablment the employee is liable to get compensation of 15

days of wages of each month

In case if employee was employed at piece wage rate he is liable to get the avg salary of 3 months .

Continue.
The amount payble to employee shall not exceed RS

3.5 lakhs.
The gautuity payble to an employee may be wholely or partially forfited:

1.

If the services of such an employee have been

terminated for his disorderly condiuct or any other act of violence on his part.

2.

If the services of such employee has been terminated

for any act which constitutes any offence invoving moral turpitude, provided that offence is committed

by him in course of his employmenty.

The Workmen Compensation Act 1923.

The workmen compensation act is the oldest
and most important piece of social security

legislation.

Object
The object of the law is to make provision for the payment of compensation to a workmen in case of his surviving the injury and to hois dependece in case of his death.

Liablity to pay
The intention of law maker is to benefit all the
dependent of the deceased workmen for their

daily necessties from the employer.

Employer is liable to pay compensation in:

When PERSONAL INJJURY caused to a

workmen by ACCIDENT in the COURSE OF

EMPLOYMENT.

CASE STUDY
1. Indian news chronical VS Mrs. Lazarns
Facts: A workmen employed as an electrician had to go frequently to a

heating room from a cooling plant. He was attacked by nemonia and

died after the short illness of 5 days.

Held: the injury was caused by accident due to his working condition
going from heating room to cooling plant in the course of his duty.

 Facts: A cashier travelling in a train with a large amount of money intended of payment to his employers workmen was robbed and murdered. Held: that murder was accident in from point of view of cashier and therefore it was an accident and employer is liable to pay oin such a situation.

Employer is not liable to pay compensation

1. If the injury do not result in total or partial disablement for a period exceeding 3 days. 2. In respect of any injury not resulting in death caused by the accident. 3. The workmen at the time of accident under the influence of drink and drugs.