EMPLOYEE PROVIDENT FUND ACT, 1952 (PF)

Objective
The Employee's provident funds and miscellaneous provisions act, 1952 is enacted to provide a kind of social
security to the industrial workers. The Act mainly provides retirement or old age benefits, such as Provident
Fund, Superannuation Pension, Invalidation Pension, Family Pension and Deposit Linked Insurance.
 
Applicability of the Act 

 To every factory employing 20 or more persons.

 An employee whose pay at the time he is otherwise entitled to become a member of the fund exceeds

Rs.6500/- per month

 An Employee who having been a member of the fund, has withdrawn the fullamount of his

contribution in the fund 

(a) on retirement from service after attaining the age of 55 years or

(b) before migration from India for permanent settlement abroad; or for taking employement abroad.
 
RATES OF CONTRIBUTION
(Provident Fund is Calculated from Basic Salary + DA)
 
Employee's
Employer's
Scheme Contributio
Contribution
n
Employee Provident Fund
12% 3.67%
(EPF)
Employee Pension Scheme
  8.33%
(EPS)
Administration Charges   1.10%
Employee Deposit-Linked
  0.50%
Insurance Scheme (EDLI)
EDLI Administrative Charges   0.01%
Total 12% 13.61%
COMPLIANCE CHARTS FOR PROVIDENT FUND

Form Submitted
Type of Compliance Compliance Date
No to
Declaration Form from New At the time of
2 RPFC Office
Joinees Joining
Montly Contribution of
Before 15th of State Bank
Employer & Employee in Challan
Every Month of India
Challan for previous month
Return of Employees Before 15th of
5 RPFC Office
Qualifying Every Month
Before 15th of
Return of Employees Leaving 10 RPFC Office
Every Month
Before 25th of
Montly Return 12A RPFC Office
Every Month
Annual Return 3A & 6A Before 30th of RPFC Office
 April
When New
Transfer of PF A/c 13 RPFC Office
Recruit
At the time of
19,10C
Final Settlement Leaving the RPFC Office
& 10D
service
After 5 Years of
Advances for various purpose 31  
membership
Issue of Individual PF A/C In the Month of
9  
No. Joining
 

Employees’ Provident Fund & Miscellaneous Provisions Act, 1952

Applicability
Eligibility
Benefits
Penal Provisions
Benefits at a Glance

Applicability

i) Every establishment which is a factory engaged in any industry 

specified in Schedule 1 and in which 20 or more persons are
employed and

ii) Any other establishment employing 20 or more persons which

Central Government may, by notification, specify in this behalf.
(Infancy period of 3 years has been withdrawn by ordinance w.e.f.22-
9-97)

iii) any establishment employing even less than 20 persons can be

covered voluntarily u/s 1(4) of the Act.

Eligibility
Any person who is employed for work of an establishment or
employed through contractor in or in connection with the work of an
establishment.

Benefits
Employees covered enjoy a benefit of Social Security in the form of an
unattachable, unwithdrawable (except employees and employers
contribute equally throughout the covered persons employment. This
sum is payable normally on retirement or death. Other Benefits
include Employes’ Pension Scheme and Employee’s Deposit Linked
insurance Fund.

Penal Provisions
Liable to be arrested without warrant being a cognisable offense.
Defaults by employer in paying contributions or inspection/
administration charges attract imprisonment up to 3 years and fines
up to Rs. 10,000 (S.14.) For any retrospective application, all dues
have to be paid by employer with damages up to 100% of arrears.

Benefits at a glance

1.   Advance for Purchase of Dwelling Site.

2.   Advance for Purchase of Dwelling House/flat.
3.   Advance for Construction of a House.
4.   Advance for Repayment of housing loan to State Govt. housing
board or any other govt. recognised housing finance body.
5.   Advance for IIIness viz. Hospitalisation for more than month,
major surgical operations or suffering from TB, leprosy, paralysis,
cancer, heart ailment etc.
6.   Advance for Marriage of Self/Son/Daughter/Sister/Brother.
7.   Advance for Post MatriculationEducation of Son/Daughter.
8.   Advance for Damage to the property Due to Natural calamity
(Flood Riot/Earthquake).
9.   Advance for Member affected by cut in the supply of electricity.
10. Advance for Member who is physically handicapped.

 [ A member employee can also withdraw full amount standing

to his credit.   in fund (para 69).....]

a) on Resignation.
b) On Retirement from the service on attaining the age of 58 yrs.
c) on Retirement on account for permanent or total incapacity to
work.
d) immediately before Migration from India for permanent settlement
abroad or for taking up     employment abroad.
e) on Termination due to voluntary retirement Scheme, retrenchment,
closure of the factory/establishment.
INDUSTRIAL DISPUTES ACT, 1947
Important Clarifications

Industry - has attained wider meaning than defined except for domestic employment, covers from barber
shops to big steel companies. Sec.2(I)

Works Committee -Joint Committe with equal number of employers and employees representatives for
discussion of certain common problems. Sec.3

Conciliation - is an attempt by a third party in helping to settle the disputesSec.4

Adjudication - Labour Court, Industrial Tribunal or National Tribunal to hear and decide the dispute. Sec.7,7A
& 7B

Lay off & Payment of Compensation- Conditions for Laying off

 Failure, refusal or inability of an employer to provide work due to
 
 Shortage of coal, power or raw material.
 Accumulation of stocks.
 Breakdown of machinery.
 Natural Calamity
Sec.25-C
Lay off Compensation
 
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 

Prohibition of Strikes & Lock Outs

 Without giving to the employer notice of strike, as hereinafter provided, within six weeks before striking
 
 Within fourteen days of giving such notice.
 
 Before the expiry of the date of strike specified in any such notice as aforesaid.
 
 During the Pendency of any concillation proceedings before a conciliation officer and seven days after the
conclusion of such proceedings.
 
 During the pendency of conciliation proceedings before a Board and seven days after the conclusion of such
proceedings.
 
 During the pendency of proceeding before a Labour Court, Tribunal or National
 
 Tribunal and two months, after the conclusion of such proceedings.
 
 During the pendency of arbitration proceedings before an arbitrator and two months after the conclusion of
such proceedings, where a notification has been issued under Sub-Section (3A) of Secion 10A
 
 During any period in which a settlement or award is in operation, in respect of any of the atters covered by
the settlement or award.

CONTRACT LABOUR ACT 1970

Object of the Act 
To regulate the employment of contract labour in certain establishment and to provide for its abolition in
certain circumstances and for matters connected therewith.

Applicability

o Every establishment in which 20 or more workmen are employed or were employed on any

day of the preceding 12 months as contract labour.

o Every Contractor who employs or who employed on any day of the preceding twelve months

20 or more workmen.

Registration of Establishment 
Principal employer employing 20or more workers through te contractor or the contractors on deposit of
required fee in Form 1.
 Sec.7
Registers of Contractors

Principal employer

o To Maintain a register of contractor in respect of every establishment in Form XII.

Rule 74
Contractor

o To Maintain Register of workers for each registered establishment in Form XIII.

o To issue an employment card to each worker in Form XIV.

o To issue service certificate to every workman on his termination in Form XV.

Rule 75,76 and 77

Muster Roll, Wages Register, Deduction Register and overtime Register by Contractor

o Maintain Muster Roll and a Register of Wages in Form XVI and Form XVII respectively when

combined.

o Register of wage-cum Muster Roll in Form XVII where the wage period is a fortnight or less.

o Maintain a Register of Deductions for damages or loss, Register of Fines and Register for

Advances in Form XX, Form XXI and Form XXII respectively.

o Maintain a Register of Overtime in Form XXIII.

o To issue wage slips in Form XIX, to the workmen at least a day prior to the disbursement of

wages.

o Obtain the signature or thumb impresion of the worker concerned against the entries relating

to him on the Register of Wages or Muster Roll-Cum-Wages Register.

When covered by Payment of Wages Act, register and records to be maintained under the rulesof Overtime,
Register of Fines, Register of Advances, Wage Slip.

o Muster Roll, Register of Wages, Register of Deductions, Register of Overtime, Register of

Fines, Register of Advances, Wage Slip.

Rule 79

o To display an abstract of the act and Rules in English and Hindi and in the language spoken

by the Majority of workers in such forms as may be approved by appropriate authority.

Rule 80

o To display notices showing rates of wages, hours of work, wage period, dates of payment,

names and addresses of the inspector and to send copy to the inspector and any change for with.
Rule 81
 FACTORIES ACT 1948
Applicability of the Act 

Any premises whereon 10 or more persons with the aid of power or 20 or more workers are were without aid
of power working on any day precedng 12 months wherein Manufacturing process is being carried on.
Sec.2 (ii)
Employer to ensure health of workers pertaining to

o Cleanliness Disposal of wastes and effluents.

o Ventilation and temparature dust and fume.

o Overcrowding Artificial humidification Lighting.

o Drinking water Spittions.

 Secs.11 to 20
Saftey Measures

o Facing of Machinery

o Work on near machinery in motion.

o Employment prohibition of young persons on dangerous machines.

o Striking gear and devices for cutting off power.

o Self acting machines.

o Casting of new machinery.

o Prohibition of employment of women and children near cotton-openers.

o Hoists and lifts.

Working Hours

o Weekly hours not more than 48.

o Daily Hours, not more than 9 Hours.

o Intervals for rest at least 1/2 hour on working for 5 hours.

o Spreadover not more than 10 1/2 hours.

o Overlapping shifts prohibited.

o Extra Wages for overtime double than normal rate of wages.

o Restrictions on employment of women before 6 AM and beyond 7 PM

Secs.51,54 to 56, 59 & 60

Welfare Measures

o Washing facilities.

o Facilities for storing and drying clothing.

o Facilities for sitting.

o First-aid appliances - one first aid box not les than one for every 150 workers.

o Canteens when there are 250 or more workers.

o Shelters, rest rooms and lunch rooms when there are 150 or more workers.

o Creches when there are 30 or more women workers.

o Welfare office when there are 500 or more workers.

OFFENCE PENALTIES
Imprisonment upto 2
For Contravention of the provision
years or fine upto
of the Act or Rules
Rs.1,00,000 or both.
On Contribution of Contravention Rs.1000 Per day
Not Less than Rs.25000
On Contravention of Chapter IV in case of detah.
pertaining to safety or dangerous Not less than Rs.5000
operations. in case of serious
injuries.
Subsequent contravention of some Imprisonment upto 3
provisions. years or fine not less
than Rs.10,000 which
 may extend to
Rs.2,00,000.
Imprisonment upto 6
Obstructing Inspectors months or fine upto
Rs.10,000/- or both.
Imprisonment upto 6
Wrongful disclosing result
months or fine upto
pertaining to results of analysis.
Rs.10,000/- or both
Imprisonment upto 7
years with fine upto
For contravention of the provisions
Rs.2,00,000/- and on
of Sec.41B, 41C and 41H pertaining
continuation fine @
to compulsory disclosure of
Rs.5,000 per day.
information by occupier, specific
Imprisonment of 10
responsibility of occupier or right of
years when
workers to work imminent danger.
contravention continues
for one year.
 

WORKMEN COMPENSATION ACT, 1923

 
Coverage of Workmen
According to Sec. 1(3) "All workers irrespective of their status or salaries either directly or through contractor
or a person recruited to work abroad."

Employer's liability to pay compensation to a workman

According to Sec. 3 "On death or personal injury resulting into total or partial disablement or occupational
disease caused to a workmen arising out of and during the course of the employment."
Amount of compensation
 Where death of a workman results from the injury - An amount equal to fifty per cent of the monthly

wages of the deceased workman multiplied by the relevant factor on an amount of eighty thousand rupees,

whichever is more.

 Where permanent total disablement results from the injury.

 An amount equal to sixty per cent of the monthly wages of the injured workman multiplied by the

relevant factor or an amount  of ninety thousand rupees, whichever is more.

Procedure for calculation Higher the age – Lower the compensation

 

 Relevant factor specified in second column of Schedule IV giving slabs depending upon the age of the

concerned workman.

 Example: In case of death.

 Wages Rs.3000 PM ; Age 23 years.

 Factor as schedule IV Rs.19.95.

 Amount of compensation Rs.329935.

 In case of total disablement Rs.395910.

When an employee is not liable for compensation
 

o In respect of any injury which does result in the total or partial disablement of the workman

for a period exceeding three days.

 

o In respect of any injury, not resulting in death or permanent total disablement caused by an

accident which is directly attributable.

 

o The workman having been at the time thereof under the influence of drink or drugs.
 

o Willful disobedience of the workman to an order expressly given, or to a rule expressly

framed, for the purpose of securing the safety of workmen.

 
 

o Willful removal or disregard by the workman of any safety guard or other device which he

knew to have been provided for the purpose of securing the safety of workman.
 
Sec.3 (a) & b
Wages

When the montly wages are more than Rs.4000/- per month it will be deemed Rs.4000/-. Sec.4 Exh.b