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A BRIEF CHECK LIST OF

LABOUR LAWS

APPRENTICES ACT, 1961

CHECKLIST

Object of the Act Applicability of the Apprenticeship

Promotion of new manpower at Act Advisor
skills. Improvement/refinement of Areas and industries as Central Apprenticeship
old skills through theoretical and notified by the Central Advisor – when
practical training in number of Government appointed by Central
trades and occupation Sec. 1 Government.

Industry Qualification for being trained as an Apprentice

Industry means any industry or A person cannot be an apprentice in any designated
business or in which any trade, trade unless
occupation, or subject/field in  He is not more than 14 years of age;
engineering or technology or any  He satisfies such standard of education
vocational course may be specified And physical fitness as
as a designated trade May be prescribed. Sec. 3
Sec. 2 (k)
Period of
Contract of Apprenticeship Conditions for Novation of Apprentic
To contain such terms and Contract of Apprenticeship eship
conditions as may be agreed
Training to be
to by the apprentice, or his • There exists an apprenticeship Determined by
guardian (in case he is a contract. the
minor) and employers. • The employer is unable to fulfil
his obligation.
Obligations of
Termination of • The approval of the
Employers
Apprenticeship Apprenticeship Advisor is
obtained. • To provide the
On the expiry of the period of
apprentice with
Apprenticeship training. • Agreement must be
the training in
On the application by either of registered with the
his trade.
the parties to the contract to Apprenticeship
the Apprenticeship Advisor • To ensure that
Sec. 6 a person duly
qualified is
Number of Apprentices in placed in
Payment to Apprentices Designated Trade charge of the
The employer to pay such stipend at To be determined by The training of the
a rate of not less than the prescribed Central Government after apprentice.
minimum rate as may be specified. consulting the Central • To carry out
Sec. 6 Apprenticeship Council contractual
Sec.8 obligations.
Obligations of Apprentice
 To learn his trade conscientiously, diligently. Employer’s liability to
 To attend practical and instructional classes pay compensation
regularly. for injury
 To carry out all lawful orders. As per provisions of
 To carry out his contractual obligations. Workmen’s
Compensation
Offences & Act.
Health safety & Welfare measures for
Apprentices Punishment
As per Factories Act or Mines Act as the case Imprisonment of a term
may be when undergoing training. upto 6 months or
Hours of work with fine when
 42 to 48 in a week while on theoretical training. employer (I)
 42 in a week while on basic training. engages as an
apprentice a person
 42 to 45 in a week in second year of training.
who is not qualified
 As per other workers (in the third year). for being so
 Not allowed to work between 10 PM to 4 AM unless engaged or (ii) fails
approved by Apprenticeship Advisor. to carry out the
Leave and Holidays terms and
 Casual leave for the maximum period of 12 days in a conditions of a
year. contract of
CONTRACT LABOUR
 Medical leave for the maximum period of 15 days
(REGULARATION
and the accumulated leave upto 40 days in a year.
apprenticeship, or
& ABOLITION) ACT, 1970
(iii) contravenes the
& THE RULES
CHECKLIST
Applicability Registration of
Every establishment in which 20 or Establishment
Object of the Act more workmen are employed or Principal employer
To regulate the were employed on any day of the employing 20 or more
employment of preceding 12 months as contract workers through the
contract labour in labour. contractor or the
certain establishments Every contractor who employs or who contractor(s) on deposit of
and to provide for its employed on any day of the required fee in Form 1
abolition in certain preceding twelve months 20 or
circumstances and for more workmen. Sec. 7
matters connected Sec. 1
therewith. Revocation of
Registration
Prohibition of Employment of Licensing of Contractor
When obtained by
Contract Labour Engaging 20 or more than
Misrepresentation or
Only by the appropriate Government 20 workers and on
suppression
through issue of notification after deposit of required fee
Of material facts etc. after
consultation with the Board (and not in Form IV.
opportunity to the
Courts) can order the prohibition of Valid for specified
principal
employment of contract labour. period.Sec.12, Rule 21
Employer
Sec. 10 Sec. 9
Revocation or Suspension & Welfare measures to be taken by the Contractor
Amendment of Licenses Contract labour either one hundred or m ore employed by a
When obtained by misrepresentation or contractor for one or m ore canteens shall be provided and
suppression of material facts. m aintained.
Failure of the contractor to comply with First Aid facilities.
the conditions or contravention of Act Num ber of rest-room s as required under the Act.
or the Rules. Sec. Drinking water, latrines and washing facilities.
Sec. 16 & 17
14
Liability of Principal Employer
Laws, Agreement or standing To ensure provision for canteen, restroom s, sufficient supply of
orders inconsistent with the drinking water, latrines, and urinals, washing facilities.
Act-Not Permissible Principal employer entitled to recover from the contractor for
Unless the privileges in the contract providing such
Muster Roll, am enities
W ages or Deduction
Register, to m ake Register
deductionsand from ameount
Overtim
between the parties or more payable. Sec. 20 Register by Contractor
favourable than the prescribed in the Every contractor shall
Act, such contract will be invalid and Maintain Muster Roll and a Register of Wages in Form XVI and Form XVII
the workers will continue to get m ore respectively when combined.
favourable benefits. Register or wage-cum-Muster Roll in Form XVII where the wage period is a
Sec. 20 fortnight or less.
Registers of Contractors Maintain a Register of Deductions for damage or loss, Register or Fines and
Principal em ployer Register of Advances in Form XX, from XXI and Form XXII respectively.
Maintain a Register of Overtime in Form XXIII.
To m aintain a register of contractor in
To issue wage slips in Form XIX, to the workm en at least a day prior to the
respect of every establishm ent in disbursement of wages.
Form XII. Obtain the signature or thumb impression of the worker concerned against
Contractor the entries relating to him on the Register of wages or Muster Roll-Cum-
Rule 74 Wages Register.
To m aintain register of workers for When covered by Payment of Wages Act, register and records to be
each registered establishm ent in Form maintained under the rules
XIII. Muster Roll, Register of wages, Register of Deductions, Register of Overtime,
Register of Fines, Register of Advances, W age slip.
To issue an em ploym ent card to each
Rule 79
worker in Form XIV. To display an abstract of the act and Rules in English and Hindi and in the
To issue service certificate to every language spoken by the Majority of workers in such forms as may be
workm an on his term ination in Form approved by appropriate authority
XV. Rules 75, 76 and 77 Rule 80
To display notices showing rates of wages, hours of work, wage period, dates
of payment, nam es and addresses of the inspector and to send copy to the
inspector and any change forwithwith
PENALTIES
Rule 81

Sec. Offence Punishment

Sec. 22 Obstructions For obstructing the inspector or failing to produce registers etc.
-3 months’ imprisonment or fine upto Rs.500 or both.
Sec.23 Violation For violation of the provisions of Act or the Rules,
imprisonment of 3
Months or fine upto Rs.1000. On continuing contravention,
additional fine upto Rs.100 per day.
 EMPLOYEES’ PROVIDENT FUNDS & MISC.
PROVISIONS ACT,
1952 & THE SCHEMES
CHECKLIST
Eligibility Applicability
Any person who is employed • Every establishment which is factory engaged in any industry
for work of an establishment specified in Schedule 1 and in which 20 or more persons are
or employed through employed.
contractor in or in connection • Any other establishment employing 20 or more persons which
with the work of an Central Government may, by notification, specify in this behalf.
establishment. • Any establishment employing even less than 20 persons can be
Payment of Contribution covered voluntarily u/s 1(4) of the Act.
• The employer shall pay the Benefits
contribution payable to the Employees covered enjoy a benefit of Social Security in the form of
EPF, DLI and Em ployees’ an unattachable and unwithdrawable (except in severely restricted
Pension Fund in respect of the circumstances like buying house, marriage/education, etc.) financial
m em ber of the Em ployees’ nest egg to which employees and employers contribute equally
Pension Fund employed by him throughout the covered persons’ employment.
directly by or through a This sum is payable normally on retirement or death. Other Benefits
contractor. include Employees’ Pension Scheme and Employees’ Deposit Linked
• It shall be the responsibility of Insurance Scheme.
the principal em ployer to pay
the contributions payable to Rates of Contribution
the EPF, DLI and Em ployees’
Pension Fund by him self in SCHEM E EM PLOYEE’S EM PLOYER’S CENTRAL
respect of the em ployees GOVT’S
directly em ployed by him and Am ount > 8.33%
also in respect of the (in case
em ployees directly em ployed where
by him and also in respect of contributio
the em ployees em ployed by or Provident Fund n is 12% of
Clarification about Schem 12% 10%) NIL
Contribution e 10% (in case of
After revision in wage ceiling from certain
Rs.5000 toRs.6500w.e.f. 1.6.2001 Establishm ents
per month, the governm ent will as per details
continue to contribute1.16% upto given earlier)
the actual wage of m aximum Insurance
Rs.6500 per m onth towards Schem NIL 0.5 NIL
Employees’ Pension Schem e. The e
em ployer’s share in the Pension Damages
Schem e will be Rs.541 w.e.f.
1.6.2001. • Less than 2 months ….@ 17% per
Under Em ployees’ Deposit-Linked
Insurance Schem e the contribution annum
@ 0.50% is required to be paid
upto a maximum limit of Rs.6500.
• Two months and above but less than upto four months
The employer also will pay
administrative charges @ 0.01%
….@22% per annum
on m axim um lim it of Rs.6500
whereas an exempted
establishm ent will pay inspection Penal Provision
charges @ 0.005% on the total Liable to be arrested without warrant being a cognizable offence.
wages paid.
Notes: Defaults by employer in paying contributions or
The above clarification is given by
taking wages upto a m axim um of inspection/administrative charges attract imprisonment upto 3 years
Rs.6500 towards wage (basic+DA).
Since an excluded em ployee i.e. and fines upto Rs.10,000 (S.14). For any retrospective application, all
drawing wages more than Rs.6500
can also becom e mem ber of the dues have to be paid by employer with damages upto 100% of
Fund and the Schem es on joint
request and if, for instance, such arrears.
an em ployee is getting Rs.10,000
per month, his share towards
provident fund contribution will be
Rs.1200 e.g. 12% and em ployer’s
 EMPLOYEES’ STATE INSURANCE
ACT, 1948 & the SCHEME
CHECK LIST

Applicability of Coverage
the Act & Scheme Of employees Rate of THE ESI SCHEME TODAY
Is extended in area- Contribution of No. of im plem ented Centre’s
wise to factories using Drawing wages the wages 677
power and em ploying Upto No. of Em ployers covered 2.38 lacs
10 or m ore persons Employers’ No. of Insured Persons 85 lacs
Rs.15000/- per
and to non-power month 4.75% No. of Beneficiaries 330 lacs
using m anufacturing Engaged either Employees’ No. of Regional Offices/SRO’s 26
units and directly or thru’ 1.75% No. of ESI Hospitals/Annexes
183
establishm ents contractor No. of ESI Dispensaries 1453
em ploying 20 or m ore No. of Panel Clinics 2950
person upto Rs.7500/- Manner and Time Limit
per m onth w.e.f. for making Payment of contribution Benefits
1.4.2004. It has also To the employees under the Act
been extend-ed upon The total amount of contribution
shops, hotels, (employee’s share and employer’s share) Medical, sickness, extended
restaurants, roads is to be deposited with the authorised sickness for certain diseases,
m otor transport bank through a challan in the prescribed enhanced sickness, dependents
undertakings, form in quadruplicate on ore before 21st of maternity, besides funeral
equipm ent month following the calendar month in expenses, rehabilitation
m aintenance staff in which the wages fall due. allowance, medical benefit to
the hospitals. insured person and his or her
spouse.

WAGES FOR ESI CONTRIBUTIONS Contributio Contribution

Registers/files to be maintained by the employers n period period
If the person joined
To be deemed as NOT to be deemed as insurance employment
st th
wages wages 1 April to 30
for the first time, say on
September.
5th January, his first
• Basic pay • Contribution paid by contribution period will
• Dearness allowance the employer to any be from 5th January to
pension/provident fund 1st October to
• House rent allowance 31st March 31st March and his
or under ESI Act. corresponding first
• City compensatory • Sum paid to defray benefit will be from 5th
allowance special expenses October to 31st
• Overtime wages (but entailed by the nature December.
not to be taken into of employment – Daily
account for allowance paid for the
determining the period spent on tour.
Penalties
coverage of an • Gratuity payable on
employee) Different punishment have been prescribed for
discharge.
• Payment for day of different types of offences in terms of Section
• Pay in lieu of notice of
rest retrenchment 85: (I) (six months imprisonment and fine
• Production incentive compensation Rs.5000), (ii) (one year imprisonment and fine),
• Bonus other than • Benefits paid under the
and 85-A: (five years imprisonment and not
statutory bonus ESI Scheme.
• Night shift allowance • Encashment of leave less to 2 years) and 85-C (2) of the ESI Act,

• Heat, Gas & Dust • Payment of Inam which which are self explanatory. Besides these
allowance does not form part of provisions, action also can be taken under
• Payment for the terms of
employment. section 406 of the IPC in cases where an
unsubstituted holidays
• Washing allowance for employer deducts contributions from the wages
• Meal/food allowance
livery of his employees but does not pay the same to
• Suspension allowance
• Conveyance Amount
• Lay off compensation the corporation which amounts to criminal
towards
• Children education reimbursement for
 FACTORIES
ACT, 1948
CHECK LIST

Employer to ensure health of Registration &

Applicability of the Act
workers pertaining to Renewal of
Any premises whereon 10 or
• Cleanliness Disposal of wastes Factories
m ore persons with the aid of
and effluents
power or 20 or more workers
• Ventilation and temperature To be granted by Chief
are/were without aid of power
dust and fume Inspector of Factories
working on any day preceding
• Overcrowding Artificial on submission of
12 m onths, wherein
humidification Lighting prescribed form, fee
Manufacturing process is being
and plan.
carried on. • Drinking water Spittoons.
Sec.2(ii) Secs. 11 to 20
Safety Measures
Welfare Measures
• Self-acting machines.
• Facing of machinery Casing of new • Washing facilities
• Work on near machinery in motion. machinery.
• Facilities for storing and
• Employment prohibition of young • Prohibition of drying clothing
persons on dangerous machines. employment of
• Facilities for sitting
• Striking gear and devices for cutting women and children
off power. near cotton-openers. • First-aid appliances – one first
aid box not less than one for
every 150 workers.
Working Hours, Spread Over & Overtime of Adults • Canteens when there are 250
Weekly hours not more than 48. or more workers.
Daily hours, not more than 9 hours. • Shelters, rest rooms and lunch
Intervals for rest at least ½ hour on working for 5 hours. rooms when there are 150 or
Spread over not more than 10½ hours. more workers.
Overlapping shifts prohibited.
• Crèches when there are 30 or
Extra wages for overtime double than normal rate of wages.
more women workers.
Restrictions on employment of women before 6AM and beyond 7
PM. • Welfare office when there are
Secs. 51, 54 to 56, 59 & 60 500 or more workers.

Employment of Young Persons Annual Leave with Wages

• Prohibition of employment of young children e.g. 14 years. A worker having worked for 240
• Non-adult workers to carry tokens e.g. certificate of fitness. days @ one day for every 20 days
• Working hours for children not more than 4 ½ hrs. and not and for a child one day for working
permitted to work during night shift. of 15 days.
Secs. 51, 54 to 56, 59 & 60 Accumulation of leave for 30 days.
Secs. 79
OFFENCE PENALTIES
Sec.92 to
• For contravention of the Provisions of the Act or • Im prisonm ent upto 2 years or fine upto Rs.1,00,000 or
Rules both
• On Continuation of contravention • Rs.1000 per day
• On contravention of Chapter IV pertaining to safety • Not less than Rs.25000 in case of death.
or dangerous operations. • Not less than Rs.5000 in case of serious injuries.
• Subsequent contravention of some provisions • Imprisonment upto 3 years or fine not less than
Rs.10,000 which may extend to Rs.2,00,000.
• Obstructing Inspectors • Imprisonment upto 6 months or fine upto Rs.10,000
or both.
• Wrongful disclosing result pertaining to results of • Imprisonment upto 6 months or fine upto Rs.10,000
analysis. or both.
• For contravention of the provisions of Sec.41B, 41C • Imprisonment upto 7 years with fine upto
and 41H pertaining to compulsory disclosure of Rs.2,00,000 and on continuation fine @ Rs.5,000
information by occupier, specific responsibility of per day.
occupier or right of workers to work imminent • Imprisonment of 10 years when contravention
danger. continues for one year.
 EMPLOYMENT EXCHANGES
(COMPULSORY NOTIFICATION OF VACANCIES)
ACT, 1959 & THE RULES
CHECK LIST
When Act is not applicable
Applicability of the Any employment in agriculture,
Act horticulture etc.
Object of the Act
Any employment in domestic
By notification in the service.
To provide for the
Official Gazette, appoint Any employment, the total duration
compulsory
in this behalf for such of which is less than three
notification of
State and different dates months.
vacancies to
may be appointed for Any employment to do unskilled
employment
different states or for office work.
exchanges.
different areas of a State. Any employment connected with
the staff of Parliament.
Sec. 3

Furnishing information and

Notification of vacancies to Employment Exchanges returns

Before filling up any vacancy as prescribed. The employer in every

Employer not obliged to recruit the person through establishment in public sector in
employment exchange. that State or area shall furnish
To notify the vacancies to such employment exchanges as such information or return as may
may be prescribed. be prescribed in relation to
Secs. 4 vacancies that have occurred or
are about to occur in that
establishment, to such
employment exchanges as may
be prescribed.
Secs. 5

Time limit for notification of vacancies & selection

Submission of Returns
Atleast 15 days before the applicants will be interviewed or Quarterly in Form ER-I
tested. BIENNIAL Return Form ER-II
Within 30 days by 30th June, 31st
Employer to furnish the result of selection within 15 days. March, 30th September & 31st
Rules December.
5 Rule 6

PENALTIES

An employer contravening the provisions of Sec.4 (1) or (2).

Fine upto Rs.500 for first offence and for every subsequent offence fine Rs.1000.
If any person –
Required to furnish any information or return –
Refuses or neglects to furnish such information or return, or
Furnishes or causes to be furnished any information or return which he knows to be false, or
Refuses to answer, or gives a false answer to any question necessary for obtaining any information required to be
furnished under section 5; or

Impedes the right of access to relevant records or documents or the right of entry conferred by section 6; he shall be
punishable for the first offence with fine upto Rs.250 and for every subsequent offence with fine upto Rs.250 and for
every subsequent offence with fine upto Rs.500. Rules
7
 INDUSTRIAL DISPUTES ACT, 1947
Object of the Act
Provisions for investigation and settlement of industrial disputes and for certain other purposes.

Important Clarifications Power of Labour Court to give Right of a W orkm an during

Industry– has attained wider meaning than defined Appropriate Relief Pendency of Proceedings
except for domestic employment, covers Labour Court/Industrial Tribunal can in High Court
from barber shops to big steel companies. Modify the punishment of dismissal or Employer to pay last drawn wages
Sec.2(I) discharge of workmen and give to reinstated workman when
W orks Com m ittee –Joint Committee with equal appropriate relief including proceedings challenging the
number of employers and employees’ reinstatement.Sec.11A award of his reinstatement are
representatives for discussion of certain common pending in the higher Courts.
problems. Sec.3 Persons Bound by
Conciliation– is an attempt by a third party in Period of Operation of
Settlement
helping to settle the disputes Sec.4 Settlements and
• When in the course of conciliation
Adjudication– Labour Court, Industrial Tribunal or Awards
proceedings etc., all persons
National Tribunal to hear and decide the dispute. • A settlement for a period as
working or joining subsequently.
Secs.7,7A & 7B agreed by the parties, or
• Otherwise than in course of • Period of six months on
Lay off & Payment of Compensation – settlement upon the parties to the signing of settlement.
Conditions for Laying off settlement. Sec.18
Failure, refusal, or inability of an employer to • An award for one year after
provide work due to
Notice of Change
• Shortage of coal, power, or raw material. 21 days by an employer to workmen Prior Permission for Lay off
• Accumulation of stocks. about changing the conditions of When there are more than 100
• Breakdown of machinery. service as provided in Ivth Schedule. workmen during proceeding 12
• Natural calamity. Sec.25-C Sec.9A months. Sec.25-M

Lay off Compensation Prohibition of Strikes & Lock Outs

Payment of wages except for
intervening weekly holiday
compensation 50% of total or
basic wages and DA for a
period of lay off upto
maximum 45 days in a year.
Sec.25-C
Prior Permission by the
Government for
Retrenchment
• When there are more than 100
(in UP 300 or more) workmen
during preceding 12 months.
• Three months’ notice or wages
thereto.
• Form QA
• Compensation @ 15 days’
Prohibition of unfair labour
practice either by
employer or workman
or a trade union as
stipulated in fifth
schedule
Both the employer and the Union
Closure of an Undertaking
60 days’ notice to the
authorities for intended closure in Form
QA. Sec.25FFA
Prior permission atleast 90 days before
in Form O by the Government when
there are 100 ore more workmen
during preceding 12 months (in UP 300
or more workmen) Sec.25-O
• Without giving to the employer notice of strike, • During
as the pendency of proceedings before a Labour
hereinafter provided, within six weeks before striking.
Court, Tribunal or National
• Within fourteen days of giving such notice. • Tribunal and two months, after the conclusion of such
• Before the expiry of the date of strike specified inproceedings.
any
such notice as aforesaid. • During the pendency of arbitration proceedings before an
• During the pendency of any conciliation proceedings arbitrator and two months after the conclusion of such
before a conciliation officer and seven days afterproceedings,
the where a notification has been issued under
conclusion of such proceedings. Sub-Section(3A) of section 10A
• During the pendency of conciliation proceedings During any period in which a settlement or award is in
before a Board and seven days after the conclusion operation, in respect of any of the matters covered by the
of such proceedings. settlement or award. Secs.22&23
Conditions of service etc. to remain unchanged under certain circum stances during pendency of
proceedings
• Not to alter to the prejudice of workmen concerned the condition of service.
• To seek Express permission of the concerned authority by paying one month’s wages on
dismissal, discharge or punish a protected workman connected with the dispute.
• To seek approval of the authority by paying one month’s wages before altering condition o
service, dismissing or discharging or punishing a workman.
Sec.33
Retrenchment of Workmen Compensation & Conditions
Workman must have worked for 240 days.
• Retrenchment compensation @ 15 days’ wages for every completed year to be calculated at last
drawn wages
• One month’s notice or wages in lieu thereof.
• Reasons for retrenchment
• Complying with principle of ‘last come first go’.
labour • Sending Form P to Labour Authorities.
Conditions of service etc. to remain unchanged under certain circum stances during pendency of
proceedings
• Not to alter to the prejudice of workmen concerned the condition of service.
• To seek Express permission of the concerned authority by paying one month’s wages on dismissal,
discharge or punish a protected workman connected with the dispute.
• To seek approval of the authority by paying one month’s wages before altering condition of service, dismissing
or discharging or punishing a workman.
Sec.33

PENALTIES <Punishment
Sec.25-U
Offence Imprisonment of upto 6 months or with fine upto Rs.3,000.
26 Committing unfair labour practices Imprisonment upto one month or with fine upto Rs.50(Rs.1000 for lock-
27 Illegal strike and lock-ourts out) or with both.
28 Instigation etc. for illegal strike or lock-outs.Imprisonment upto 6 months or with fine upto Rs.1,000
29 Giving financial aid to illegal strikes and lock-outs. Imprisonment for 6 months or with fine upto Rs.1,000
30 Breach of settlement or award Imprisonment upto 6 months or with fine.On continuity of offence fine
31A INDUSTRIAL EMPLOYMENT
Disclosing confidential information pertaining to Sec.21 uptoRs.200 per day
Closure without 60 days’ notice under Sec.25 FFAImprisonment upto 6 months or with fine upto Rs.1,000
Contravention of Sec.33 pertaining to change of conditions Imprisonment
of upto 6 months or with fine upto Rs.5,000
31 Service during pendency of dispute etc. Imprisonment upto 6 months or fine upto Rs.1,000. Fine upto Rs.100
When no penally is provided for contravention
 (STANDING ORDERS) ACT, 1946 & THE RULES

CHECK-LIST

Applicability of Matters to be provided in Standing orders

the Act Classification of workmen, e.g., whether permanent, temporary, apprentices,
Every industrial probationers, or badly.
establishment Manner of intimating to workmen periods and hours of work, holidays, pay-
wherein 100 or days and wage rates.
more (in many Shift working.
States it is 50 or Attendance and late coming.
more). Conditions of, procedure in applying for, and the authority which may grant,
Any industry leave and holidays.
covered by Requirement to enter premises by certain gates, and liability to search.
Bombay Industrial Closing and re-opening of sections of the industrial establishments, and
Relations Act, temporary stoppages of work and the right and liabilities of the employer and
1946. workmen arising therefrom.
Industrial Termination of employment, and the notice thereof to be given by employer
establishment and workmen.
covered by M.P. Suspension or dismissal for misconduct, and acts or omissions which
Industrial constitute misconduct.
Employment Means of redresses for workmen against unfair treatment or wrongful
(Standing Orders) exactions by the employer or his agents or servants.
Act, 1961.
Sec. 1 Additional Matters
Service Record – Matters relating to service card, token tickets, certification
Conditions for
of service, change of residential address of workers and record of age
Certification of
Confirmation Age of retirement Transfer Medical aid in case of Accident
Standing Orders
Medical Examination Secrecy Exclusive service.
Every matter to be
Secs.2 (g), 3(2) and Rule 2A
set out as per
Date of Posting of Standing
Schedule and Rule
Procedure for Operation of Orders
2A.
Certification of Standing
The standing orders
Standing Orders Orders The text of the
to be in
Certifying Officer to forward standing orders as
conformity with
a copy of draft standing On the date of finally certified shall
the provisions of
orders to the trade union or expiry of 30 days prominently be posted
the Act.
Submissions of in the absence of union, to from certification in English or in the
Draft Standing the workmen of the industry. or on the expiry language understood
Orders The trade union or the other of 7 days from by majority of workmen
representatives, as the case authentication of on special board at or
Within six months may be, are to be heard. Standing Orders. near the entrance for
from the date when Sec.5 majority of workers.
the Act becomes Sec. 7 Sec. 9
applicable to an
industrial Temporary Payment of Subsistence Allowance to the
establishment. Five application of Model Suspended Workers
copies of the draft Standing Orders At the rate of fifty per cent, of the wages which the
Standing Orders are Temporary application workm an was entitled to imm ediately proceeding the
to be submitted to of mod standing orders date of such suspension, for the first ninety days of
the Certifying shall be deemed to be suspension.
Officer under the adopted till the At the rate of seventy-five percent of such wages for
Act. standing orders as the rem aining period of suspension if the delay in the
submitted are certified. com pletion of disciplinary proceedings against such
Sec.3 Sec.12-A workm an is not directly attributable to the conduct
such workm an.Sec.10-A

PENALTIES

• Failure of employer to submit draft Standing Orders fine of Rs.5000 and Rs.200 for every day on
continuation of offence.
• Fine of Rs.100 on contravention and on continuation of offence Rs.25 for every day.

MATERNITY
 BENEFIT ACT, 1961
CHECK LIST
Coverage of the Act
Object of the Act
Upon all women em ployees either em ployed Conditions for eligibility
To protect the dignity
directly or through contractor except of benefits
of motherhood and
dom estic women em ployees em ployed in Wom en indulging tem porary
the dignity of a new
m ines, factories, plantations and also in of unm arried are eligible for
person’s birth by
other establishm ents if the State m aternity benefit when she
providing for the full
Governm ent so decides. Therefore, if the is expecting a child and has
and healthy
State Government decides to apply this Act worked for her em ployer for
maintenance of the
to wom en em ployees in shops and at least 80 days in the 12
woman and her child
comm ercial establishm ents, they also will m onths im mediately
at this important time
get the benefit of this Act. Bihar, Punjab proceeding the date of her
when she is not
Haryana, West Bengal, U.P., Orissa, and expected delivery Sec. 5.
working.
Andhra have done so.
Cash Benefits Conditions for eligibility of
Leave with average pay for six weeks before the delivery. benefits
Leave with average pay for six weeks after the delivery.
A m edical bonus of Rs.25 if the em ployer does not provide free m edical care to the Ten weeks before the date of
woman. her expected delivery, she
may ask the employer to
An additional leave with pay up to one m onth if the woman shows proof of illness due to
give her light work for a
the pregnancy, delivery, m iscarriage, or premature birth. month. At that time she
In case of m iscarriage, six weeks leave with average pay from the date of m iscarriage. should produce a certificate
Non Cash Benefits/Privilege that she is pregnant.
Light work for ten weeks (six weeks plus one month) before the date of her expected She should give written notice
delivery, if she asks for it. to the employer about seven
Two nursing breaks in the course of her daily work until the child is 15 m onths old. weeks before the date of her
No discharge or dism issal while she is on maternity leave. delivery that she will be
absent for six weeks before
No change to her disadvantage in any of the conditions of her em ployment while on
and after her delivery. She
m aternity leave. should also name the person
Pregnant wom en discharged or dism issed m ay still claim m aternity benefit from the to whom payment will be
em ployer. made in case she can not
Exception: Wom en dism issed for gross m isconduct lose their right under the Act fortake it herself.
Maternity Benefit She should take the payment
for the first six weeks before
Leave for illness arising out of she goes on leave.
Leave for Miscarriage
pregnancy etc. etc. She will get payment for the six
& Tubectomy Operation
A woman suffering from illness weeks after child-birth within
Leave with wages at the rate of
arising our of pregnancy, delivery, 48 hours of giving proof that
maternity benefit, for a period of she has had a child.
premature birth of child
six weeks immediately following She will be entitled to two
(Miscarriage, medical termination
the day of her miscarriage or her nursing breaks of fifteen
of pregnancy or tubectomy
medical termination of pregnancy. minutes each in the course
operation) be entitled, in addition of her daily work till her child
Entitled to leave with wages at the
to the period of absence allowed is fifteen months old.
rate of maternity benefit for a
to her leave with wages at the Her employer cannot discharge
period of two weeks immediately
rate of maternity benefit for a her or change her conditions
following the day of her tubectomy
maximum period of one month. of service while she is on
operation. maternity leave.
Sec. 10
Sec. 5.
Prohibition of dismissal during absence of pregnancy
Discharge or dismissal of a woman employed during or on account of such absence or to give notice or discharge or dismissal on such a
that the notice will expire during such absence or to very her disadvantage.
Discharge or dismissal during or on account of such absence or to give notice of discharge or dismissal on such a day that the notice
expire during such absence, or to vary to her disadvantage any of the conditions of her service.
At the time during her pregnancy, if the woman but for such discharge or dismissal would have been entitled to maternity benefit or me
bonus, etc.
Not barred in case of dismissal for cross m isconduct. Sec.

Forfeiture of maternity benefit

If permitted by her employer to absent herself under the provisions of section 6 for
Failure to Display
Extract of Act
MINIMUM WAGES ACT, 1948
any period during such authorized absence, she shall forfeit her claim to the
maternity benefit for such period.
Imprisonment may CHECK LIST
For discharging or dismissing such a woman during or on account of her absence
extend to one year
from work, the employer shall be punishable with imprisonment which shall not be
or fine.
less than 3 months, but it will extend to one year and will find, but not exceeding
Object of the Act Rs.5,000. Fixation
Sec. of
18 Minimum Rates of Wages
To provide for fixing • The appropriate government to fix minimum rates of wages. The
minimum rates of employees employed in para 1 or B of Schedule either at 2 or either part of
wages in certain notification u/s 27.
employments • To make review at such intervals not exceeding five years the minimum
rates or so fixed and revised the minimum rates.
Government can also fix Minimum Wages for
• Time work • Piece work at piece rate • Piece work for the purpose of
securing to such employees on a time work basis • Overtime work done by
employees for piece work or time rate workers.
 Minimum Rates of
Wages
Such as Basic rates of
wages etc. Variable DA
and Value of other
concessions etc. Sec. 4 Procedure for fixing Composition of Payment of
and revising Minimum Committee Minimum
Rates of Wages Representation of Rates of
Fixing Hours for Appointing Committee em ployer and Wages
Normal Working issue of Notification etc. em ployee in schedule Employer to pay to
Sec. 5 em ployer in equal every employee
• Shall constitute a number and engaged in schedule
normal working day Overtime independent persons employment at rate
inclusive of one or To be fixed by the hour, by rd not less than minimum
not exceeding 1/3 or rates of wages as fixed
more specified the day or by such a longer its total num ber one by Notification by not
intervals. wage period works on any such person to be making deduction
• To provide for a day day in excess of the num ber appointed by the other than prescribed.
of rest in every of hours constituting normal Chairm an. Sec.12
period of seven days working day.
Payment for every hour or for W ages of workers w ho works for less than
with remuneration. normal working days
• To provide for part of an hour so worked in
excess at the overtime rate Save as otherwise hereinafter provided; be
payment for work on entitled to receive wages in respect of work done
a day of rest at a rate double of the ordinary rate of
(1½ tim es or for agriculture by him on that day as if he had worked for a full
not less than the norm al working day.
overtime rate.. Sec. labour) Sec.
5 Sec.15
13
W ages for two class of work Maintenance of registers and records
Where an em ployee does two or more • Register ofFines – Form I Rule 21(4)
classes of work to each of which a
different minimum rate of wages is • AnnualReturns– Form III Rule 21 (4-A)
applicable, wages at not less than the • Register forOvertim e– Form IV Rule 25
m inimum rate in respect of each such • Register ofW ages–Form X,W ages slip –Form XI,Muster Roll
–Form V
class. Sec. 16 Rule 26

M inimum tim e rate wages for piece Claim s by employees

work • To be filed by before authority constituted under the Act within 6
Not less than minimum rates wages months.
as fixed. • Compensation upto 10 times on under or non-payment of wages

PENALTIES Offence Punishment

For paying less than minimum Imprisonment upto 6 months
rates of wages or with fine upto Rs.500/-

Sec. 20 For contravention of any Imprisonment upto 6 months

provisions pertaining to fixing or with fine upto Rs.500/-
hours for normal working day etc.

SALES PROMOTION EMPLOYEES

(CONDITIONS
OF SERVICE) ACT, 1976 & THE RULES
CHECKLIST

Object of the Act

To regulate certain conditions of service of sales promotion employees in certain establishments.
 Applicability of the Act Leave Maximum limit upto
• Earned leave and cash which earned leave
Whole of India with effect
compensation on earned leave not • Can be accumulated 180
from 6.3.1976
availed of. days of which the
• On full wages for not less than 1/11th employee can avail
of the period spent on duty. himself 90 days at a time.
Applicability of other • Leave on medical Certificate • Encashment of leave 120
Acts • On one-half of the waves for not days.
Sec.14
• Workmen’s less than 1/18th of the period of
Compensation Act, 1923 service.
• Industrial Disputes Act, • Cashable on voluntary Issue of Appointment
1947 relinquishment or termination other Letter in Form A
• Minimum Wages Act, • Within three months
1948 Number of holidays in a year
from the commencement
• Maternity Benefit Act, 10 in calendar year of the Act and in other
1961 Rule 4 case on appointment.
Sec.5 Rule 22
Maintenance of register
• A register of sales Compensatory holidays
promotion employees in Within 30 days of the day when he Wages for holidays
Form B. was required to work. To be entitled for wages on
Rule 5 all holidays as if he was on
• Service Books for every
employee in Form C duty.
Application for leave Rule 6
• A register of service
books in Form D When other than casual leave, not less
than one month before Recording of reason for
• Leave account of each refusal or
employee in Form E. commencement of leave except for
urgent or unforeseen circumstances. postponement of
Sec. 7 Rule 23 leave.
Rule 9
Wages for weekly day of Rule 10
rest
Entitled to wages on weekly Holidays intervening during the Medical leave
days of rest as if he period of leave
was on duty. Except casual leave grantged or day of On production of medical
Rule 7 weekly rest, other holidays shall certificate.
be part of leave. Rule 15
Affixing of holidays to Rule 12
leave
Premixing or suffixing of
any leave not Extraordinary leave Casual leave

At the discretion of the employer 15 days in a calendar year.

Quarantine leave
Rule 17 Rule 15
Upto 30 days on the
recommendations of
authorised medical PENALTY
attendant or Public On contravention of provisions relating to ‘Leave’ Issue of Appointment Letter
Health Officer. or Maintenance of Registers fine upto Rs.1000
Sec. 9

TRADE UNIONS ACT, 1926

CHECKLIST

Object of the Act

To provide for the registration of Trade Union and in certain respects
to define the law relating to registered Trade Unions
 Registration of trade Union
Registration of trade Union
Any 7 or more members of a trade union may, by
subscribing their names to the rules of the trade union Prescribed form with following details.
and its compliance.
Names, occupations and address of the
There should be at least 10%, or 100 of the work-men, members’ place of work.
whichever is less, engaged or employed in the Address of its head office; and
establishment or industry with which it is connected.
Names, ages, addresses and occupations of
It has on the date of making application not less than 7 its office bearers.
persons as its members, who are workmen engaged or
employed in the establishment or industry with which it Sec. 5
is connected.
Cancellation of
Minimum requirements for Criminal conspiracy in trade
registration
membership of trade
union
disputes
If the certificate has been
obtained by fraud or No office bearer or member of a
Not less than 10%, or 100 mistake or it has ceased to registered trade union shall be liable to
of the workmen, whichever is exist or has wilfully punishment under sub section (2) of
less, contravened any provision conspiracy u/s 120B of IPC in respect of
subject to a minimum of 7, of this Act. any agreement made between the
engaged or employed in an If it ceases to have the members for the purpose of furthering
establishments etc. requisite number of any such object of the Trade Union.
Sec. 9A members. Sec. 17
Sec. 10

Disqualification of office bearers Returns

of Trade Union
If one has not attained the age of 18 years.
Conviction for an offence involving moral
turpitude.
Not applicable when 5 years have elapsed.
Sec. 21-A
Annually to the Registrar, on or before such date as may
be prescribed, a general statement, audited in the
prescribed manner, of all receipts and expenditure of
every registered Trade Union during the year ending on
st
the 31 December.
Sec. 28

Penalties Offence Punishment

• For making false entry in or • Fine upto Rs.500. On

any omission in general continuing default, additional
statement required for fault, Rs.5 for each week (not
U/s 31 sending returns. exceeding Rs.50).

• For making false entry in the • Fine upto Rs.500.

form.

• Supplying false information • Fine upto Rs.200.

U/s 32 regarding Trade Union

PAYMENT OF BONUS ACT, 1965 & THE

RULES
CHECKLIST
Applicability of Act Establishment
Every factory where in 10 or more persons are
employed with the aid of power or Establishment includes
Departments,
An establishment in which 20 or more persons are
undertakings and
employed without the aid of power on any day during
branches, etc.
an accounting year
 Separate establishment

Computation of available surplus Components of If profit and loss accounts

Bonus are prepared and
Income tax and direct taxes as maintained in respect of
payable. Salary or wages any such department or
Depreciation as per section 32 of includes dearness undertaking or branch,
Income Tax Act. allowance but no other then such department or
Development rebate, investment or allowances e.g. over- undertaking or branch is
development allowance. time, house rent, treated as a separate
Sec.5 incentive or establishment.
Sec.3
Disqualification & Deduction of Bonus
Computation of gross
On dismissal of an employee for profit
• Fraud; or For banking company, as
per First Schedule.
• riotous or violent behaviour while on the premises of the Others, as per
establishment; or Second Schedule
• theft, misappropriation or sabotage of any property of the Sec.4
establishment or
• Misconduct of causing financial loss to the Employer to the
extent that bonus can be deducted for that year. Eligible Employees
Secs. 9 & 18.
Employees drawing wages
upto Rs.3500 per month or
Eligibility of Bonus Payment of Minimum Bonus less.
8.33% of the salary or For calculation
An employee will be entitled Rs.100 (on completion of 5 purposes Rs.2500
only when he has worked years after 1st Accounting year per month
for 30 working days in that even if there is no profit) maximum will be
year. Sec.10 taken even if an
Sec. 8 Sec. 8 employee is
drawing upto
Rs.3500 per month.
Time Limit for Set-off and
Sec.12
Payment of Bonus Set-on
Note: The proposal to
Within 8 months from the As per Schedule IV.
enhance the existing
close of accounting y ear. Sec. 15
ceiling of Rs.3500 is under
Sec. 19
active consideration by
Maintenance of Registers and Records etc.

• A register showing the computation of the allocable surplus referred to in clause (4) of section 2, in
form A.

• A register showing the set-on and set-off of the allocable surplus, under section 15, in form B

• A register showing the details of the amount of bonus due to each of the employees, the
deductions under section 17 and 18 and the amount actually disbursed, in form C.

Act not applicable to certain employees of LIC, General Insurance, Dock Yards, Red Cross, Universities
& Educational Institutions, Chambers of Commerce, Social Welfare Institutions, Building Contractors,
etc. etc. Sec.32.
For contravention of any provision of the Act or Upto 6 months or with fine upto Rs.1000.
PENALTY the Rule Sec.28

Sec.
1
PAYMENT OF Sec.
2(s)

Applicability GRATUITY Wages for

Every factory, ACT, 1972 & THE RULES Calculation
mine, oil field,
plantation, port, @ 15 days’
railways, wages for every
company, shop,
establishment, or
CHECKLIST completed year
as if the month
educational comprises of 26
institutions days at the last
employing 10 or drawn wages.
more employees
 Sec.
2(e)
Employee

All employees
Sec. Qualifying
irrespective of
1 period
status or
salary Rule
Calculation On rendering of 4
Piece- 5 years’ service,
Calculation Entitlement
rated either
Seasonal On completion Display of
employee termination,
employee of five years’ Notice
resignation or
service except
@ 15 days retirement.
@ 7 days’ in case of On conspicuous
wages for death or
wages for place at the main
every disablement
every entrance in
completed
completed English language
year on an
year of or the language
average of 3
service. understood by
months’
majority of
wages
Sec. employees of the
4(3) factory, etc.
Rule
Maximum 9
Sec.6 Ceiling
Rule 6
Mode of
Nomination Rs.10,00,00 payment Rule
0 9
To be obtained Cash or, if so Penalties
by employer desired, by
after expiry of Bank Draft or Imprisonment for 6
one year’s Cheque months or fine
service, in Form upto Rs.10,000 for
‘F’ avoiding to make
payment by
Sec. making false
4(6) statement or
Sec.8 Sec. representation.
Forfeiture of Gratuity
Rule 8 13
On termination of an Imprisonment not
Recovery of less than 3
employee for moral Protection of
Gratuity months and upto
turpitude or riotous or Gratuity
disorderly behaviour. one year with fine
To apply within on default in
Wholly or partially for Can’t be
30 days in complying with
willfully causing loss, attached in
Form I when the provisions of
destruction of property execution of
not paid within Act or Rules.
etc. any decree
30 days

PAYMENT OF WAGES ACT, 1936

CHECKLIST
Applicability of Act
• Factory industrial
Establishment
• Tramway service or motor
transport service engaged in
carrying passengers or good
or both by road for hire or
reward. • Air transport
service Dock, Wharf or Jetty
• Inland vessel, mechanically
propelled
• Mine, quarry or oil-field
Plantation
Wages to be paid in
Object of the Act
current coins
To regulate the payment of wages of
or currency
certain classes of employed persons
notes
Time of payment of wages •All wages shall be paid
The wages of every person employed in current coins or
be paid. currency notes or in
When less than 1000 persons are both.
employed shall be paid before the
•After obtaining the
expiry of the 7th day of the following authorization, either by
month.
cheque or by crediting
When more than 1000 workers, before the wages in employee’s
the expiry of the 10th day of the
following month.
Sec. 5
Coverage of Employees
Drawing average wage upto
Rs.6500 pm as amended w.e.f. Deduction made from wages Deduction for
6.9.05. Deductions such as, fine, deduction for absence from
amenities and services supplied by the duties for
Fines as prescribed by employer, advances paid, over unauthorised
•Not to imposed unless the payment of wages, loan, granted for absence
employer is given an house-building or other purposes,
opportunity to show cause income tax payable, in pursuance of
Absence for whole or
To record in the register
the order of the Court, PF
any part of the day –
Sec.8 contributions, cooperative societies,
If ten or more persons
premium for Life Insurance,
absent without
contribution to any fund constituted by
reasonable cause,
employer or a trade union, recovery of
deduction of wages upto
Deductions for service losses, ESI contributions etc.etc.
8 days.
rendered Deduction for damage or loss
When accommodation amenity Sec. 9
or service has been accepted For default or negligence of an
by the employee. employee resulting into loss. Show
Sec.11 cause notice has to be given to the

On contravention of S.5 (except sub-sec.4), S.7, S.8 Fine not less than Rs.1000 which may extend to
(except Ss.8), S.9, S.10 (except Ss.2) and Secs.11 to Rs.5000. On subsequent conviction fine not less
13. than Rs.5000, may extend to Rs.10,000. On
contravention S.4, S.5(4), S6, S.8(8), S.10(2) or S.25
fine not less than Rs.1000. – may extend to
Rs.5000. On subsequent On conviction fine not
less.
• For failing to maintain registers or records; or
• Wilfully refusing or without lawful excuse • Fine which shall not be less than Rs.1000 but may
neglecting to furnish information or return; or extend to Rs.5000 – On record conviction fine not
• Wilfully furnishing or causing to be furnished any less than Rs.5000, may extend to Rs.10,000.
information or return which he knows to be false • For second or subsequent conviction, fine not less
or than Rs.5000 but may extend to Rs.10,000
• Refusing to answer or wilfully giving a false
answer to any question necessary for obtaining
any information required to be furnished under
this Act.
• Wilfully obstructing an Inspector in the discharge
of his duties under this Act; or
• Refusing or wilfully neglecting to afford an Fine not less than Rs.1000 extendable
Inspector any reasonable facility for making any Upto Rs.5000 – On subsequent conviction fine
entry, inspection etc. not less than Rs.5000 – may extent to Rs.10,000
• Wilfully refusing to produce on the demand of an
inspector any register or other document kept in
pursuance of this Act; or preventing any person for
appearance etc.
• On conviction for any offence and again guilty of • Imprisonment not less than one month

WORKMEN’S COMPENSATION
ACT, 1923
CHECKLIST
Applicabilit Coverage of Workmen Employer’s liability to pay
y All workers irrespective of their compensation to a workman
status or salaries either directly or On death or personal injury resulting
All over India through contractor or a person into total or partial disablement or
Sec.1 recruited to work abroad. Sec.1(3) occupational disease caused to a
workman arising out of and during
the course of employment.
Sec.3
 Amount of compensation
• Where death of a workman results from the injury
• An amount equal to fifty per cent of the monthly wages When an employee is not liable
of the deceased workman multiplied by the relevant factor for compensation
on an amount of eighty thousand rupees, whichever is more.
• Where permanent total disablement results from the • In respect of any injury which does
injury. result in the total or partial
• An amount equal to sixty per cent of the monthly wages disablement of the workman for a
of the injured workman multiplied by the relevant factor or period exceeding three days.
an amount of ninety thousand rupees, whichever is more • In respect of any injury, not
Procedure for calculation resulting in death or permanent
Higher the age – Lower the compensation total disablement caused by an
• Relevant factor specified in second column of Schedule IV accident which is directly
giving slabs depending upon the age of the concerned attributable to-
workman. • The workman having been at the
• Example : In case of death. time thereof under the influence of
• Wages Rs.3000 PM ● Age 23 years drink or drugs, or
• Factor as schedule IV Rs.19.95 • Willful disobedience of the
• Amount of compensation Rs.329935 workman to an order expressly
given, or to a rule expressly
Wages Notice framed, for the purpose of
Accident securing the safety of workmen, or
When the monthly wages • Willful removal or disregard by the
are more than Rs.4000 per As soon as workman of any safety guard or
month it will be deemed Practicable other device which he knew to
Rs.4000. Sec. 10 have been provided for the
Sec. 4 Ex purpose of securing the safety of

Report of accident Bar upon contracting out

Rule 11 Form EE
Report of fatal Accident and Serious Injury within 7 days to
the Commissioner (not application when ESI Act applies).
Sec.10B
Any workman relinquishing his right
for personal injury not permissible.
Sec.14

PENALTY

In case of default by employer 50% of the compensation amount + interest to be paid to the
• Deposit of Compensation workman or his dependents as the case may be.
• Within one month with the Compensation Commissioner
Sec.4A