Definitions

Salary or wage

includes

All remuneration other than over- time and includes DA

Does not include :

1. Any other allowance which the employee is for the time being entitled.
2. The value of house accommodation or of supply of light, water, medical, attendance or other amenity or of any service or of any concessional supply of food grains or other articles.
3. Any travelling concession
4. Any Bonus (including incentive, production and attendance Bonus)
5. Any contribution paid or payable by employer to any pension fund or PF
6. Any retrenchment compensation Gratuity or Ex gratia payment
7. Any commission payable to the employee.

Benefits

1. Subject to provisions: - Minimum bonus shall be 8.33% of salary / wages earned or ₹ 100 whichever is higher.
2. If allocable surplus as computed under the Act exceeds the amount of minimum bonus, then bonus shall be payable at higher rate subject to a maximum 20% of salary / wages.
3. Customary bonus paid is deductible.
4. For persons drawing salary greater than ₹ 7000/- per month calculation of bonus has to be done on the basis of ₹7,000/- per month or as per State Minimum Wages applicable for scheduled employment; whichever is higher

Other Important Issues

1. Computation of bonus is to be worked out as per the Act.
2. Records in Form Nos. ‘A’, ‘B’ & ‘C’ are to be maintained as prescribed.
3. Annual Return in Form ‘D’ to be filed.
4. Bonus must be paid within a period of 8 months from the close of accounting year.

Applicability

1. Every factory (as defined in Factories Act).
2. Every other establishment in which 20 or more persons (less than 20 but 10 or more if app. Govt. notifies) are employed on any day during the accounting year. (In Maharashtra State it is applicable where 10 or more employees are working in any establishment or factory
3. Special provisions with respect to certain establishments are provided
4. Employees employed through contractors on building operation.

Penalties

If any person contravenes the provisions of the Act or rules made thereunder, He will be punishable with imprisonment up to 6 months or fine up to ₹ 1000/- or both.

Beneficiaries

Employees other than apprentice

1. Who have worked not less than 30 days in an accounting year.
2. Having salary/wages less than ₹ 21000/- per month.

Definitions

Wages

include

i) All emoluments earned by the employee while on duty or on leave including DA,

Does not include

Bonus, Commission, HRA, overtime wages and any other allowance.

Benefits

1. The quantum of gratuity is to be computed at the rate of 15 days wages based on the rate of wages last drawn by the employee concerned for every completed year of service or a part thereof in excess of 6 months.
2. The total amount of gratuity payable shall not exceed ₹ 10 lakhs. It is now provided to empower Central Government to notify the maximum ceiling from time to time instead of specifying the existing limit of ₹ 10 lakhs. The Government has presently notified the maximum amount to be ₹ 20 lakhs. [Payment of Gratuity (Amendment) Act, 2018].

Applicability

1. Every factory (as defined in Factories Act), mine, oilfield, plantation, port and railway company.
2. Every shop or establishment to which Shop and Establishment Act of a State applies in which 10 or more persons are employed on any day of the preceding 12 months.
3. Any establishment employing 10 or more persons as may be notified by the Central Government.

3. In case where higher benefit of gratuity is available under any gratuity scheme award or agreement, the employee will be entitled to higher benefits.

Other Important Issues

1. Employers other than Central Govt. or State Govt. obliged to obtain an insurance from LIC in prescribed manner for liability for payment of gratuity.
2. Establishments to which Act applies must get registered with the controlling Authority.

Beneficiaries

1. Any person employed on wages (other than apprentice)
2. At the time of retirement/ resignation on superannuation, an employee should have rendered continuous service of not less than 5 years.
3. Presently, maternity leave of 12 weeks in case of female employees is included in the computation of period of “continuous service”. An amendment has been carried out to grant power to Central Government to notify the period of maternity leave in place of existing 12 weeks. This period has been presently notified as 26 weeks. [Payment of Gratuity (Amendment) Act, 2018]
4. In case of death or disablement, the gratuity is payable even if he has not completed 5 years of service.

3. Once Act applies, it continues to apply even if employment strength falls below 10.
4. Calculation of Gratuity: Monthly salary / 26 x 15 days x No. of years

Penalties

1. False statement or representation shall be punishable with imprisonment up to 6 months or with fine upto ₹ 10,000 or both.
2. Contravening provisions of the Act or Rules- Imprisonment up to 1 year (minimum 3 months) or fine of ₹ 10,000 to ₹ 20,000 or both.
3. Non-payment of gratuity-Imprisonment from 6 months to 2 years.

Definitions

Other Important Issues

Wages

includes: All remuneration capable of being expressed in terms of money like

1. Basic wages, D.A. value of free food or food allowances in lieu of whole or part of the wages, overtime, and other allowances,
2. Value of House accommodation, supply of light and water, medical attendance or other amenities or any service or of any concessional supply of food grains or other articles,
3. Value of travelling concession,
4. Any commission payable on promotion of sales or business or both.

Does not include

1. Any Bonus
2. PF, Pension or Gratuity

Retrenchment:- means the termination by the employer of the service of a workman for any reason other than as punishment inflicted by way of disciplinary action, but doesn’t include-

1. Voluntary retirement of the workman; or
2. Retirement of the workman on reaching the age of superannuation.

Applicability

Any industry

1. Carried by or under authority of any dept. of Central / State Govt.
2. local authority or any other industry* (*excluding any agricultural operations, hospitals/dispensaries, educational, scientific research or training institutions charitable/ social/philanthropic services, khadi or village industries, activities related to defence, research atomic energy and space any domestic services, professional concern and co-op. society/ club employing less than 10 persons.)

Non applicability:

Not applicable to dispute arising after closure of the industry.

Beneficiaries

Any person (including apprentice) employed in any industry to do any manual, unskilled, skilled, teaching, operational, clerical, supervisory work for hire, reward and includes any such persons who has been dismissed, discharged, retrenched but does not include a person who is employed mainly in managerial or administrative capacity and draws more than ₹ 10,000/- month persons employed in defence /police force.

Benefits

The Act restricts unfair labour practices, prescribed for regulating and governing cases of strikes, lock-out, lay-off, retrenchment and closure in certain establishments. Consequences of the aforesaid eventualities are provided towards employees as well as employer.

The Act deals with industrial Disputes between employers and 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.

Such disputes are dealt by the authorities prescribed under the Act.

Establishment of Grievance Redressal Mechanism in every Industrial Establishment employing 20 or more workmen.

Certain mandates

1) Mandatory requirement in case of closure of an undertaking :

1. 60 days’ notice to the Government for intended closure in Form No. XXIV-B if employing more than 50 workmen but less than 100 workmen.
2. Application for prior permission of at least 90 days in Form XXIV-C to the Govt. when there are 100 or more workmen during preceding 12 months

2) Mandatory provision concerning retrenchment of workmen, compensation to be paid and other conditions:

1. Women must have worked for 240 days
2. Retrenchment compensation @15 days wages per every completed year to be calculated on last drawn wages inclusive of allowances.
3. Days wage worked taking 26 not 30 days
4. One month notice or wages in lieu thereof
5. Reasons for retrenchment
6. Complying with principle of ‘last come first go’
7. Maintenance of seniority list at least 7 days in advance.

3) Notice of change:

21 days’ notice is required to be given by an employer to the workmen about changing the conditions of service as prescribed.

4) Prior Permission for lay off (To temporarily or permanently terminate the staff/employee) : When there are more than 100 workmen during preceding 12 months

5) Prior permission for retrenchment :-

When there are more than 100 workmen during preceding 12 months

Penalties

Penalty for breach of settlement or award

Any person who commits a breach of the term of any settlement or award, shall be punishable with imprisonment for a term up to 6 months or fine or both.

Where the breach is a continuing one, with a further fine which may extend to ₹ 200 for every day during which the breach continues after the conviction for the first.

Definitions

Benefits

Basic wages :

Includes :-

All emoluments (salary, fee, or profit from employment or office) earned while on duty or on leave and holidays

Does not include :-

Value of food concession, DA, HRA, overtime allowance, any Bonus, Commission or similar allowance. Contribution is also payable on D. A.

Employees covered enjoy a modicum (a small quantity of a particular thing) of Social Security in the form of an un-attachable, un-withdrawable (except in severely restricted circumstances like buying homes, marriage / death in family, etc.) financial nest egg (substantial sum of money been saved or invested) to which employees and employers contribute equally throughout the covered person’s employment. This sum is payable normally on retirement or death.

Applicability

Other Important Issues

1. Every establishment which is a factory engaged in any industry specified in Schedule I and in which 20 or more persons are employed and
2. Any other establishment employing 20 or more persons, whom Central Govt. may, notify.
3. Any establishment employing even less than 20 can be covered by a specific Central Govt. notification.

Beneficiaries

Any person who is employed for wages in any kind of work of an establishment or employed through contractor in or in connection with the work of an establishment and whose wages does not exceed ₹ 15,000/- p.m. However, an employee covered under the Act will continue to be covered under the Act even if his wages exceed ₹ 15,000/- p.m. but will continue to get benefits as if his wages were ₹ 15,000/- p.m.

In case of International workers, PF is applicable on entire salary.

1. Once the Act applies it continues to apply even if employment strength falls below 20.
2. Periodical returns have to be filed under the Act monthly returns before 25th of the following month.
3. Inspection Note book has to be maintained.
4. Provident Fund deduction to be paid before 15th of the following month.

Penalties

Avoid making payment of statutory obligation- Punishable with imprisonment up to 1 year or fine of ₹ 5,000 or both.

Definitions

Benefits

“Employee” under the Act includes a person, who is :

1. A railway servant
2. (a) A master, seaman or other members 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 and the ship, aircraft or motor vehicle, Or company, as the case may be, is registered in India.

3. Employed in any such capacity whether the contract of employment was made in expressed or implied, oral or in writing; but does not include any person working in the capacity of a member of the Armed Forces; and any reference to any employee who has been injured shall, where the employee is dead, include a reference to his dependents or any of them.

Amount of compensation payable by the employer will be

1. Where death results from injury:
   50% of monthly wages [if monthly Wages >
   ₹ 8,000/- p.m. cap of ₹ 8,000/-] x Relevant factor* or
   ₹ 1, 20,000/- whichever is higher.
2. Where permanent total disablement results from injury:
   60% of monthly Wages [if monthly Wages >₹ 8,000/- p.m. cap of ₹ 8,000/-]x Relevant factor* or ₹ 1,40,000/- whichever is higher.
3. Relevant factor*, which is dependent upon age of employee, ranges from 228.54 to 99.37.

[*](Relevant Factor is defined under Schedule IV of Workmen Compensation Act @ Monthly wage that will be considered by the act is limited to ₹ 8,000)

Applicability

Other Important Issues

It applies to employees working in factories, mines, docks, construction establishments, plantations, oilfields and other establishments listed in Schedule II of the Employee’s Compensation Act.

Also, the act does not apply to the members of armed forces of the Union & Workmen who are covered under ESI (Employee State Insurance) Act.

1. Any contract by a worker waiving his right to be compensated under this Act is null and void.
2. Notice book is to be maintained. A statement, report and a return is to be filed when applicable
3. In case of fatal accident, payment of compensation to the dependent of a workman is to be made through Commissioner of Workmen’s Compensation
4. Employer is under an obligation to inform the employee, at the time of employment, his right to compensation under this Act. [The Employee’s Compensation (Amendment) Act, 2017]

Beneficiaries

Penalties

Any workman who is injured by accident arising out of and in the course of his employment, or any workman, employed in specified list of employment, contracts any disease specified therein as an occupational disease peculiar to that occupation.

If the amount of compensation is not paid within a month from the date of the accident the Commissioner will ask the employer to pay

1. Simple interest at the rate of 12% per annum or
2. As prevailing in any scheduled bank

Along with the compensation amount.

Moreover, if there is no justification for the delay, the Commissioner will demand an apology from the employer after giving a reasonable opportunity of being heard &direct the employer to pay a further sum not exceeding 50% of the compensation, through penalty.

Definitions

Benefits

Wages

include

1. All remuneration paid or payable in cash to the employee including payment in respect of period of authorized leave, lock- out, strike which is not illegal or lay-off.
2. Other additional remuneration paid at interval not exceeding 2 months

Does not include

1. Contribution to PF, Pension or Gratuity payable on discharge,
2. Any travelling allowances or value of any travelling concession,
3. Sums to be defray special expenses by nature of employment.

Applicability

1. All factories excluding seasonal factories
   1. Employing 10 or more persons if working with power.
   2. Employing 20 or more persons if working without power.
2. Shops employing 20 or more persons.
3. Any establishment specially notified by the Government.

Beneficiaries

1. Any person employed for wages (up to ₹ 21,000/- p.m. in or in connection with the work of a factory or establishment, and
2. Any person who is directly employed by the employer in a factory or through his agent on work which is ordinarily part of the work of the factory or incidental to purpose of the factory.
3. An ‘insured woman’ shall include a commissioning mother who as biological mother wishes to have a child and prefers to get embryo implanted in any other woman as well as a woman who legally adopts a child of up to three months of age.

Penalties

If the principal employer does not pay any contribution on the due date:

Payment of simple interest @12% p.a. or higher rate till date of actual payment similar to interest recoverable as arrears of land revenue as prescribed.

The repetition of same offence will attract imprisonment up to 2 years. He will also have to pay a fine of ₹ 5,000

1. The following benefits are provided:
   Sickness benefit, maternity, disablement benefit, dependent benefit, medical benefit, and funeral expenses, rehabilitation allowances etc. When a person is entitled to any of the benefits provided by this Act, he shall not be entitled to receive any similar benefit admissible under the provisions of any other enactment.
2. Free medical treatment is offered to employees and his family at hospital approved byESI Corporation.
3. During sickness, an employee will receive wages as per standard benefit rate as specified in the Act.
4. Maternity benefits for 26 weeks of which not more than 8 weeks should be preceding confinement.
5. Injury during / in course of employment resulting in temp./ Permanent disablement entitles covered employee to regular pay.
6. Death during the course of employment entitles dependents to regular payment.
7. An amount of ` 15,000 is payable to the dependents or to the persons who performs last rites from day one of entering insurable employment.
8. Unemployment allowance to a member who has contributed minimum period of 5 years prior to loss of employment.
9. Payable till re-employed else- where (maximum 12 months period)

Other Important Issues

1. Once the Act applies it continues to apply even if employment strength falls below 20 /10
2. Register of employees is to be maintained in Form 6 (Regulation 32) Reports and Returns have to be filed.
3. Rate of contribution of the wages:

*Notification awaited

4. Contribution period :- 1st April to 30th September/ 1st October to 31st March
5. Less than 40 employees – Self certified return by employer In Other Cases (40 or more employees)– Return to be certified by CA after verification of records Due date of submission of return: - Within 42 days from the end of contribution period
6. Benefit period 1st January to 30th June/ 1st July to 31st December

Definitions

Benefits

There is no specific definition given in the Act.

However, in general terms Pension Scheme (EPS), is a social security scheme provided by the Employees’ Provident Fund Organization (EPFO).

1. To members – Superannuation pension, retiring pension or permanent total disablement pension.
2. To heirs – widow or widowers pension, children pension or orphan pension. Guardian pension, Nominee pension as per the scheme provided in the rules.

Applicability

Other Important Issues

The Act is applicable to the All the employees who are :

1. A member of EPFO
2. Have completed 10 years of service
3. Has reached the age of 58 years.

1. All contributions made in the Employees’ Pension Scheme (EPS) Account is to be done by the employer.
2. The Employer makes contribution of 8.33% of the employees pay for EPS.
3. The employer has to make the contribution within 15 days of close of every month.

Beneficiaries

Penalties

1. Members or
2. Heirs will be paid the pension as per the Scheme provided in the Rules.

Where an employer makes default in the payment of any contribution to the Employee’s Pension Fund or any charges payable under any other provisions, shall be punishable with a penalty of 5% to 25% p.a. of the arrears payable.

Definitions

Benefits

Wages

Includes:- All remuneration being expressed in terms of money including HRA.

-Does not include :-

1. Value of House Accommodation supply of light, water, medical attendance.
2. Any other amenity or any service, excluded by an order of the appropriate Government.
3. Any sum paid to defray special expenses entitled due to nature of employment
4. Any travelling allowance or any value of travelling concession.
5. Any Gratuity payable on dis-charge

Applicability

Any person who employs directly or through another person, whether for himself or for any other person, employs one or more employees in any scheduled employment in respect of which minimum rates of wages have been fixed under this Act.

Beneficiaries

Any person who is employed for hire/reward to do any work in a scheduled employment and includes an outdoor worker to whom any articles or materials are given for doing some work either at home / any other premises.

The Act prescribes the minimum rates of wages payable to employees for different scheduled employment, for different class or work and for adults, adolescents, children and apprentices depending upon different localities, for one or more wage periods; viz. by hour, by the day, month or other large period.

Other Important Issues

1. Register of wages to be maintained at work spot in prescribed forms. Such records to be preserved for 3 years from the time of last entry made therein.
2. Normal working day prescribed under the Act is 9 hours.

Penalties

Any employer who:

1. Pays to employees less than the minimum rates of wages fixed for that employee’s class of work or less than the amount due to him under the provision of this act, or
2. Contravenes any rule or order made for fixing hours for normal working day.

Shall be punishable with imprisonment up to 6 months or fine up to ₹ 500 or both.

Definitions

Benefits

Wages

includes :

1. All remuneration by way of salary or allowance capable of being expressed in terms of money.
2. Payable under any award or settlement.
3. On account of overtime, holidays, leave, production, attendance, bonus etc.
4. Payable by reason of termination which does not provide for the time within which the payment is to be made.
5. To which the person employed is entitled under any scheme framed under any law for the time being in force.

Does not include

1. Bonus (whether under a scheme of profit sharing or otherwise) which doesn’t form part of remuneration payable under the terms of employment or which is not payable under the Award
2. Value of house accommodation or of light, water, medical attendance or other amount or of any services excluded from the computation of wages by the Government.
3. P. F. and Gratuity
4. Travelling allowance
5. Any sum paid to defray special expense due to nature of his employment

The Act provides for –

1. Regular and timely payment of wages. Specified day after last day of the wages period in respect of which wages are payable are :
   1. 7 days for railways, factory, Industrial or other establishment employing less than 1,000 workers
   2. 10 days for other than persons stated in (i) above
   3. In case of termination of employment, the wages must be paid before the expiry of the second working day from the day of termination.
2. Prevents unauthorized deductions being made from wages and charges of arbitrary fines

Other Important Issues

1. Wages to be paid in current coin of currency or by crediting the wages in the bank account of employee. Central Government has the power to specify industrial or other establishments where payment of wages will be made by banking only.
2. Sum total of permissible deductions from wages cannot exceed 75% of wages for payment to co-op. Societies, and 50% in other cases.
3. Registers/records in Form Nos. I, II, III & IV to be kept for 3 years from last entry (If muster roll cum wage registers in Form No. II as per Maharashtra Minimum Wages Rule is maintained the above registers are not required to be maintained).

Applicability

Penalties

1. Every person employed in any factory, upon a railway or through sub-contractor in a railway and a person employed in an industrial or other establishment.
2. The State Government may by notification extend the provision to any class of persons employed in any establishment or class of establishments.

Beneficiaries

Every person who is employed in any of the above-mentioned establishments and who is drawing less than ₹ 24,000/- per month. (Vide Notification No. S.O.2806(E) dated 29-8-2017)

The person responsible for the payment of wages to an employed person might contravene any of the provisions relating to:

1. The time of payment
2. Deduction of wages
3. Imposition of fines
4. Deductions due to the absence from duty or for any loss or damages incurred
5. Deductions for the services rendered

The person will be punishable with the fine not less than ₹ 1,500 & which may extend to ₹ 7,500

If any person fails or wilfully neglects to pay the wages of any employed person on or before the date that the authority decides, then he is punishable with an additional fine of up to ₹ 750 per day for which such failure or neglect continues.

Definitions

Benefits

“Establishment” means an establishment which carries on, any business, trade, Manufacture, Profession or any work in connection with or incidental to the above and includes establishment of any medical practitioner (including hospital, dispensary, clinic, polyclinic, maternity home and such others), architect, engineer, accountant, tax consultant or any other technical or professional consultant, and includes such other establishment as the State Government may, by notification in the Official Gazette, declare to be an establishment for the purposes of this Act.

In earlier Act : It was not applicable to Chartered Accountants, Medical Practitioners and Legal Practitioners.

“Worker” means any person employed to do any manual, unskilled, skilled technical, operational or clerical work for hire or reward, whether the terms of employment be express or implied

1. No adult worker shall be required or allowed to work for more than 9 hours in any day and 48 hours in any week
2. Payment of overtime wages at twice the rate of ordinary wages in respect of overtime work
3. Mandatory leave of one day in week. Any work required to be undertaken by a worker on holiday will entail wages at twice the ordinary rate
4. The Act prohibits the discrimination of women workers in matters of Recruitment, training, promotion, and wages.
5. Workers are entitled to 8 casual leaves in a year
6. They may accumulate a maximum of 45 days of paid leave during a year
7. Workers are also entitled to 8 paid festival holidays in a year.

   First-aid facilities in the place of work; etc.

Applicability

The Act is applicable to establishments which employ 10 or more workers at any point of time. The Act does not cover workers occupying a confidential, managerial or supervisory position in the establishment or workers whose work is inherently intermittent.

Establishments employing less than 10 employees are not required to comply with any of the provision of the Act except submit an online intimation in Form “F” of commencement of the business along with the required documents.

Beneficiaries

All employees except an Apprentice as defined under the Apprentice Act, 1961.

Penalties

Penalty for contravention of the Act: The penalty for contravention of the Act and the rules has been enhanced to ₹100,000 and in case of continuing contravention an additional fine which may extend to ₹ 2,000 for every day during which the contravention continues. Further, for repeated offenders the fine may extend to ₹ 200,000.

Penalty on compounding of offence: The maximum fees for compounding of an offence (making a settlement to avoid prosecution) may be imposed by the compounding officer shall not be less than 50 per cent of the maximum fine specified for such offence under the Act.

Key Changes

Validity of registrations: Registrations issued under the Act will remain valid until the expiry date specified& the New Registrations will be granted only after the expiry of the old. The Act now permits renewal of a registration for a period up to 10 years as opposed to 3 years under the Old Act.

Fees: There will be no fees charged for the following: application for registration, renewal of certificate of registration, and changes in the certificate of registration. However, the employer may have to pay the electronic transaction or service charges as periodically fixed by the state government for availing e-services under the 2017 Act and the 2018 Rules.

Complaint box and display of numbers: Every employer must maintain a complaint box and display the phone numbers of the local police station, police control room, and women area helpline prominently in the establishment.

Hiring women security guards: Employing woman security guards is now mandatory in establishments employing 10 or more women workers.

The 2018 Rules specify the number of such security guards required, depending on the size of the workforce. The establishment must also undertake mandatory police verification of the candidates who are recruited as women security guards.

Additional paid holiday for women workers:

Every women worker who works during the night as per her shift schedule is entitled to one additional paid holiday for every two months in a year.

Maternity leave for night shift workers: The Rules provide that women workers cannot work night shifts during a period of 24 weeks before and after child birth, of which at least 12 weeks must be before childbirth, and any further period that as may be specified in her medical certificate.

Safety of women in the workplace: Every employer has to submit an annual undertaking stating their compliance towards all the facilities mentioned under Rule 13 of the 2018 Rules. These include conditions for the employment of women in general as well as during night shifts.

Part time employment:

Wages payable to a part time worker is calculated by

= [(Minimum Wages per day)/ 8 hours] *1.15

Or

= [Daily wage rate for permanent workers doing similar nature of work / 8 hours] * 1.15

(Whichever is higher)

Health, Safety, and Welfare Committee: A Health, Safety and Welfare Committee must be formed in establishments with 10 or more workers; it should consist of an equal number of employer and worker representatives, respectively.

The committee must also have a sufficient number of women representatives, wherever women workers are employed.

Fire and safety framework: Every employer has to adopt and implement all the safety measures mentioned, suggested, and recommended in the government’s Fire and Safety Policy, which may be further updated periodically.

Preservation of records: Every employer or manager must preserve the inspection records of the local facilitator (official seeking compliance) for a period of three years.

Annual Returns: Employer to upload Annual Return within 2 months of close of the financial year.

Name Board in Marathi: The Name Board - Marathi in Devanagari Script. Along with Marathi, other Language may be use.

Precautions against fire: Every employer has been obligated to adopt and implement all the safety measures mentioned, suggested and recommended in the Fire and Safety Policy as declared by the Government, from time-to-time.

Preservation of records: Every employer or manager shall preserve the inspection records of the facilitator for a period of 3 years, instead of the 5 years requirement under the Draft Rules.

Definitions

Benefits

“Employee” means any person who is employed for hire or reward to do any work, skilled or unskilled, manual, clerical, supervisory or technical in an establishment directly by the employer or through contractor or any other agency.

Applicability

The provisions of the Act shall be restricted to establishments employing five or more persons.

Does not include: Any person-

1. a) Employed mainly in a managerial capacity,
2. b) Employed in a supervisory capacity and draws wages exceeding ₹ 3,500 p.m.
3. c) Employed as an apprentice under the Apprentice Act, 1961

Beneficiaries

All employee, including employee through contractor, except those working in the managerial or supervisory position and drawing wages more than ₹ 3,500/- per month.

Penalties

A) If the employer is not able to produce the records or documents stating details of the fund and employee details:

• For the first offence-Imprisonment upto three months or fine upto ₹ 500 or both, and
• For a second or subsequent offences-Imprisonment up to 6 months or fine upto ₹ 100 or both.

B) In the case of a failure to pay any amount of the employer’s and employees’ contributions,

• For the first 3 months- at 1.5% of the said amount for each completed month, after the last date by which he should have paid it in accordance with the provisions and
• Thereafter- at 2% of that amount for each completed month during the time he continues to make default in the payment of that amount.

In general the money in the Fund may be utilized by the Board to defray expenditure on the following:

• Educational facilities for the children of the workers
• Medical facilities for both private and public-sector employers to facilitate medical facilities for their workers and their families
• Transport facilities to the workers for commuting to work
• Housing facilities under this scheme offer loans to industrial workers for constructing houses at concessional rates.

Other Important Issues

CONTRIBUTION: Contribution is to be deducted in respect of the Employees who are present on the Muster rolls on 30th June and 31st December every year Contribution is to be deducted from the salary of employees Twice in a year i.e. June & December every year at following rates:

Definitions

Other Important Issues

1. “Apprentice” means a person who is undergoing apprenticeship training in pursuance of a contract of apprenticeship.
2. “Apprenticeship training” means a course of training in any industry or establishment undergone in pursuance of a contract of apprenticeship and under prescribed terms and conditions which may be different for different categories of apprentices.
3. “Employer” means any person who employs one or more other persons to do any work in an establishment for remuneration and includes any person entrusted with the supervision and control of employees in such establishment.

Every contract of apprenticeship entered under the act shall be sent by the employer within 30 days to the Apprenticeship Adviser until a portal-site is developed by the Central Government, and thereafter the details of contract of apprenticeship shall be entered on the portal-site within seven days, for verification and registration.

In the case of objection in the contract of apprenticeship, the Apprenticeship Adviser shall convey the object to the employer within fifteen days from the date of its receipt. The Apprenticeship Adviser shall register a contract of apprenticeship within thirty days from the date of its receipt.

Applicability

Obligation of an Employer

1. The Apprentices Act, 1961 extends to whole of India.
2. It applies to both public and private sector establishments;
3. Provisions of Apprentices Act, 1961 does not apply to:
   1. any area or to any industry in any area unless the Central Government by notification specifies that the provisions of this act are applicable to that area or industry;
   2. Any such special apprenticeship scheme for imparting training to apprentices as may be notified by the Central Government.

Beneficiaries

An Apprentice should not be less than 14 years of age.

An Apprentice should also satisfy all standards of education and physical fitness as may be prescribed.

Benefits

During the 1st year of training 70% of the minimum wages of the semi-skilled workers notified by the respective States.

During the 2nd year of the training 80% of the minimum wages of the semi-skilled workers notified by the respective States.

During the 3rd and 4th year of the training 90% of the minimum wages of the semi-skilled workers notified by the respective States

1. To provide apprentice with the training in his trade in accordance with the provision of the Act.
2. If the employer himself is not qualified in the trade, to ensure that a person who possesses the prescribed qualification is placed in charge of the apprentices.
3. To provide adequate instructional staff, possessing such qualification as may be prescribed for imparting practical knowledge and theoretical training and facilities of the trade test of the apprentices.
4. To carry out his obligation under the contract of apprenticeship.

Obligation of Apprentice

1. To attend classes regularly.
2. To carry out lawful orders of his employer and superior.
3. To carry out his obligation under the contract of apprenticeship.
4. To learn his trade conscientiously and diligently and endeavor to become a skilled craftsman.

Apprentices are specifically excluded from the definition of employees under the following Acts:

1. Payment of Bonus Act.
2. Employee Provident Fund and Miscellaneous Provision Act.
3. The State Insurance Act.

Penalties

If any employer-

1. Engages as an apprentice a person who is not qualified for being so engaged, or
2. Fails to carry out the terms and conditions of a contract of apprenticeship, or
3. Contravenes the provisions of this Act relating to the number of apprentices which he is required to engage under those provisions.

He shall be punishable with imprisonment up to 6 months or with fine or with both.

Definitions

Other Important Issues

There is no specific definition given in the act however, as per the *Vishaka judgment, ‘Sexual Harassment’ includes such unwelcome sexually determined behaviour (whether directly or by implication) as:

1. Physical contact and advances
2. A demand or request for sexual favors;
3. Sexually coloured remarks;
4. Showing pornography;
5. Any other unwelcome physical, verbal or nonverbal conduct of sexual nature.

*Workplace sexual harassment in India, was for the very first time recognized by the Supreme Court of India in its landmark judgment of Vishaka v. State of Rajasthan (“Vishaka Judgment”)

Applicability

It applies to every establishment employing Female employees

Beneficiaries

Aggrieved Woman which includes:

1. Domestic Worker
2. Regular/Temporary/Ad hoc/Daily wager
3. For remuneration/voluntary basis/ otherwise
4. Employed directly/ through an agent
5. Contract worker/probationer/trainee/ apprentice

Benefits

Complaint of Sexual Harassment:

Any aggrieved woman may make in writing a complaint of sexual harassment at the workplace to the IC (Internal Committee) or LC (Local Committee), if in case IC is not constituted within a period of three months from the date of incident & in case of series of incidents, within a period of three months from the date of last incident.

For the purpose of making an inquiry under the Act, the IC or the Local Committee as the case may be shall have the same powers as are vested to a civil court, under the code of civil procedure.

1. Summoning and enforcing the attendance of any person and examining him on oath.
2. Requiring the discovery and the production of documents.
3. Any other matter which may be prescribed.

Obligation of Employer

Constitution of IC

Every employer of a workplace shall constitute a committee known as IC.

1 Presiding Officer shall be woman at senior level.

Not less than 2 members amongst employees preferably committed to the cause of women.

1 member shall be among non- governmental organization.

At least one half of the IC members should be women.

The presiding Officer and every member of IC shall hold the office not exceeding three years.

Action during the pendency of inquiry:

During the pendency of an inquiry, the Internal Committee, as the case may be recommend to the employer:-

Transfer the aggrieved woman or the respondent to any other workplace; or

1. Grant leave to the aggrieved woman up to a period of three months; or
2. Grant such other relief to the aggrieved as may be prescribed
3. The leave granted to the aggrieved woman under this section shall be in addition to the leave she would be otherwise entitled.

Reporting by IC/LC

Committee (IC or LC) to prepare and submit annual report on cases of sexual harassments for the Calendar year to the employer and the District Officer (The appropriate Government has notified Deputy Collector as a District Officer to exercise powers and discharge functions under this Act).

Reporting by Board

Clause (x) of the Companies Rules now requires every Company to report compliance with the Act in its Board Report as follows:

“A statement that the Company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.”

Penalties

Where the employer fails to:

1. constitute an Internal Committee under sub-section (1) of section 4;
2. take action for any complaints and
3. contravenes or attempts to contravene or abets contravention of other provisions or any rules made there under, shall be punishable with fine which may extend to ₹ 50,000.

Definitions

Benefits

“Workman” means any person employed to do any skilled, semiskilled or un-skilled manual, supervisory, or clerical work for hire or rewarding any establishment. The terms of employment can be express or implied.

“Contract labour” includes labour hired through a contractor, with or without the knowledge of the principal employer.

“Establishment” means--

1. any office or department of the Government or a local authority, or
2. any place where any industry, trade, business, manufacture or occupation is carried on;

Applicability

The Act is applicable to

1. Every establishment employing twenty or more workmen as contract labor.
2. To every contractor employing twenty or more workmen.

However the Maharashtra Government has raised the number of workmen from twenty to fifty workmen for the purpose of the applicability of the Act to an establishment and to the contractor.

Beneficiaries

Beneficiaries

Every Employee Employed in the above mentioned establishments as a contract labour in which an establishment meets the criteria mentioned as per the State Government provisions specified if any or else as per Central Government provisions.

1. The contractor is required to provide canteens, restrooms, latrines, urinals, drinking water, washing facilities and first aid boxes for the use of contract labour.
2. He is also required to make prompt payment of wages to contract labour.
3. Principal employer is liable to pay wages and provide other amenities, if the contractor fails to do so.

Other Important Issues

The contravention of the provisions regarding the employment of contract labour is a contravention under the Act for which the contractor will be liable to prosecutions & fines. The offences under the Act are cognizable offences.

Penalties

Offences

If any person contravenes any provisions of the Act or any rules made thereunder he would be punished with imprisonment up to three months, or fine up to ₹ 1000 or with both, if such contravention is continued after conviction the fine would be up to ₹ 100 per day.

Definitions

Benefits

Factory under the Act means premises where manufacturing process is carried on :

1. With the help of power and 10 or more workers on any day in the preceding 12 months; or such number as government may specify by notification.
2. Without the help of power and 20 or more workers on any day in the preceding 12 months; or such number as government may specify by notification.

(Provided that the number of workers to be specified by State Government shall not exceed 20/40 workers in the above two scenarios.)

Applicability

The Act is applicable to all the Factories which satisfies the conditions mentioned above for the term Factory under the Act.

Beneficiaries

The Beneficiaries under the Act includes:

Workers, which may be:

1. Permanent
2. Temporary
3. Contract
4. Casual
5. Clerical staff
6. Managers
7. Engineers
8. Supervisors etc.

Apprentices under the Apprentice Act, 1961 are not the workers.

1. General Power to make the Rules lies with the State Government on any other matters.

2. Every worker shall have the right to—

1. obtain from the occupier, information relating to workers’ health and safety at work,
2. get trained within the factory wherever possible, or, to get himself sponsored by the occupier for getting trained at a training center or institute, duly approved by the Chief Inspector, where training is imparted for workers’ health and safety at work,
3. represent to the Inspector directly or through his representative in the matter of inadequate provision for protection of his health or safety in the factory.

3. Obligations of Workers

1) No worker in a factory—

1. shall wilfully interfere with or misuse any appliance, convenience or other thing provided in a factory for the purposes of securing the health, safety or welfare of the workers therein;
2. shall wilfully and without reasonable cause do anything likely to endanger himself or others; and
3. shall wilfully neglect to make use of any appliance or other thing provided in the factory for the purposes of securing the health or safety of the workers therein.

Benefits

1. No worker (adult) shall be required to work in a factory for more than 48 hours in any week.
2. The working hours shall be kept restricted to 9 hours on any day (Section 54);
3. An adult worker shall have weekly paid holidays, preferably Sunday;
4. A worker deprived of weekly holidays, is eligible for compensatory holiday of the same number in the same month;
5. Provision for double salary to the workers working during holidays; and
6. Provision for canteen employing more than 250 workers and crèches where more than 30 women employees are working.

Penalties

General Penalty for offences:

The manager and the occupier of the factory if guilty -Imprisonment upto2 years or fine upto ₹ 10,000 or both.

Subsequent contravention- Further fine of ₹ 1,000/- for each day till contravention continues.

“Occupier and Manager” are the persons responsible for the implementations of applicable provisions of law at a place which is under the ambit of law.

If any worker fails to fulfill his obligation: Imprisonment up to 3 months, or fine upto ₹ 100 or both.