IMPORTANT LABOUR AND

FACTORY LEGISLATIONS IN
INDIA

force::tech

FTS - HR

Acts and Rules

Blend of Acts and Rules

Centered on the responsibility of a Factory Manager,

Personnel/ HR Manager or self employed Entrepreneur.
Attention has not been made wherever the employer has
nothing to do with the provisions but has only to follow the
directions of the appropriate govt.

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THE FACTORIES ACT, 1948

Act which makes it obligatory on the

part of the employer to provide for
the health, safety and welfare of the
workers employed.

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Act extends to the whole of

India.

Applies to every factory wherein 10

or more workers are or were
employed, if run with power and 20
or more workers are or were
employed, if run without power.
Application to factories with fewer
workers u/s 85

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PROVIDES for

Hours of work (adult) not to exceed 48 hours in a week or

9 hours in a day.
Relaxation: Where an adult worker is engaged in
urgent repairs.
Payment of Overtime wages for overstay at workplace @
twice the ordinary rate of wages.
** Provision relating to hours of work not applicable to
supervisory staff.
Weekly Holiday: No work for more than 10 days without a
day of rest.
Intervals of rest: half an hour for 5 hours of work
No child (who has not attained the age of 15 years) be
permitted to work.
Prohibition of employment of Women: No woman shall be
employed in any factory for more than 9 hours in any day
or between 7 pm and 6 am.
FTS - HR

Factories Act now allows women

to work night shifts PROVIDED
adequate

safeguards in the factory as

regards occupational safety and health,
equal opportunity for women workers,
adequate protection of their dignity,
honor and safety and their transportation
from the factory premises to the nearest
point of their residence" are made.

FTS - HR

Leave with Wages

@ 1day for every 20 days provided ----240 days of work during preceding
year.
Days of lay off, paid holidays or leave days
considered
Encashment of unavailed leave: Encashable
at the present rate of wages.

FTS - HR

The occupier (Employer) to

maintain a register LEAVE WITH
WAGES REGISTER- in FORM 15
Provide

each employee a Leave Book- thick

bound sheet- in FORM 16 (with similar
entries as in Form 15)
Provide each worker an Attendance Card in
form 28 showing the particulars of
employment
* shall be substituted by Electronic cards
FTS - HR

EMPLOYER TO KEEP THE FACTORY

PREMISES CLEAN

white washing at least once in every 14 months

repainting or revarnishing every 5 years
ensure proper disposal of wastes and effluents
Record the dates on which white washing, painting or varnishing
done in a register in FORM 7.
Ensure provision of sufficient number of Latrines and urinals
separate for gents and ladies
Ensure spittoons are provided at adequate places.
Ensure workplace has adequate ventilation
Avoid overcrowding ensure 500 cubic feet of space for every
worker without reference to any space which is more than 14 feet
above the level of the floor of the room.
Ensure proper lighting- artificial or natural or both.
Ensure supply of uninterrupted supply of Drinking Water.
Where the no. of workers is more than 250, provision for cold
water in every lunch room, rest room and canteen shall be
ensured.
FTS - HR

EMPLOYER TO ENSURE SAFETY

OF
WORKERS
Fencing of Machines and Moving parts of machines

spindles, gears, pulleys, belts etc

Protection of eyes using screens or goggles from
excessive light or infra-red or ultra violet radiations
Precaution in case of Fire.
No woman or young person shall, unaided by
another person, lift, carry or move by hand or head
any material or tool exceeding the maximum limit
prescribed.
* Adult male
75 Kgs
* Adult female
30 Kgs
* Adolescent male
30 Kgs
* Adolescent female 20 Kgs
Safety Officer: Appoint a Safety Officer wherein 1000
or more workers are employed.
FTS - HR

EMPLOYER TO LOOK AFTER THE

WELFARE OF EMPLOYEES

Washing facility separately for women and men

Separate rooms for men and women for drying of clothes
Separate rest rooms for men and women
First Aid boxes equipped with prescribed medicines
Ambulance room where 500 or more are employed
Canteen for use of workers where 250 or more are
employed (150 under Plantation Labour Act)
Lunch room where 150 or more are employed
Crches where 30 or more women are employed
Appoint WELFARE OFFICER (S) where 500 or more are
employed (300 under PLA)
The duties, qualification and conditions of service of such
welfare officers shall be in accordance with the rules of the
respective State Govt.
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NOTICE OF DANGEROUS
OPERATIONS

REGISTERS TO BE MAINTAINED

Attendance Register/ Muster roll in form 25

Register of Adult Workers in form 12
Record of Lime washing, painting etc in form 7
Register of Compensatory Holidays in form 9
Overtime Muster roll for Exempted workers in form 10
Register of Leave with Wages in form 15
Health Register in form 17 (in respect of persons employed
in occupations declared to be dangerous operations u/s 87)
Register of Accidents and Dangerous Occurrences in form 26
Particulars of Rooms in the factory in form 35.

FTS - HR

RETURNS TO BE SENT TO
APPROPRIATE AUTHORITIES

Notice of accidents and dangerous occurrences resulting

in death or bodily injury in form 18 (similar to the one to
be sent ESI Local Office under the ESI Act)
Half yearly returns in form 22
Annual returns in form 21
Notice of change of Manager in form 23
Details of closure in form 32
Report of examination of Pressure Vessel or Plant in form
8
Report of examination of Water sealed Gas holder in
form 38
Report of Examination of Hoist or Lift in form 41
Certificate of Fitness for Dangerous Operations in form
FTS - HR
39

THE INDUSTRIAL EMPLOYMENT

(STANDING ORDER) ACT, 1946

Defines the terms and conditions

of service between the employer
and his employees.
Applies to every industrial
establishment wherein 100 (in some
States 50)or more workers are
employed
The Act extends to the whole of India
FTS - HR

SIGNIFICANCE
Terms

of appointment order issued to

an employee cannot circumvent the
provisions of certified standing order.
Therefore, it is always desirable to get
standing orders drafted and certified as
it regulates the relationship between
the employer and the employee.
FTS - HR

Standing Order drafted shall provide

for

Date on which the standing orders

shall come in to force and shall
remain in force
Definitions
Classification of workmen as
Permanent, Probationer, Badlis,
Casual and Trainees

FTS - HR

contd

Obligations
not to carryon any other business for gain or
to take admission in educational institution
without permission
to observe strict secrecy of company matters
not to take photographs, drawing or
documents of the process of manufacture of
the company
not to carry any lethal weapon, explosive or
article dangerous to life or property
to follow safety rules in force
to inform any change in the address
etc
FTS - HR

contd
Medical examination and aid in case of accident
Identification of workmen and issue of Identity
cards
Working time for different categories of
workmen
Record of age, qualification and experience
Entry, exit and liability for security checking
Shift working and weekly off
Attendance and late coming
Methods of applying for different kinds of leave
and extension of leave
Action for unauthorised absence

FTS - HR

contd

National and festival holidays

Transfer
Apprehension of danger to the safety
and security of factory and its
personnels
Date of payment of wages/ salary
Overtime wages
Increment and promotion
Stoppage, closing or lay off of
establishment and strike
Resignation notice or payment in lieu
of notice to be given
Termination of employment and notice
or payment in lieu of notice required to
be served or made
FTS - HR

contd

Deduction from wages for fine imposed or

absence from duty or loss caused to the
property and recovery of employees
contribution to schemes like EPF, ESI and
Labour Welfare fund
Age of superannuation
Grievance procedure
Disciplinary action for misconduct
Punishment for misconduct and procedure for
imposition of punishment
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contd

Service of notice
Issue of service certificate
Amendment of Standing order
Exhibition of Notices as whether if put
in the Notice Board or not

FTS - HR

THE MATERNITY BENEFIT ACT,

1961

The Act extends to the whole of

India except Jammu & Kashmir
Applies to every factory, shop or
establishment
Woman entitled to maternity
benefit not withstanding the
application of the Employees
State Insurance Act, 1948
FTS - HR

Employer to ensure
No woman works during the six
weeks immediately following the
day of her delivery or her
miscarriage
No woman does any arduous work
during the period of ten weeks
from the expected date of
delivery
Not to discharge or dismiss a
woman during her pregnancy
FTS - HR

Eligibility

Work

of 160 days in the 12 months

immediately preceding the date of
delivery.
Leave days & lay offs taken as
worked.
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Benefit
12 weeks leave of which not more than 6

weeks shall precede the date of her expected

delivery
The benefit to be paid @ average rate of
wages for the three months preceding her
maternity leave
In case of miscarriage, 6 weeks leave with
pay at the same rate as applicable to
maternity benefit.
FTS - HR

THE MINIMUM WAGES ACT, 1948

AN ACT TO PREVENT SWEATED LABOUR AND

EXPLOITATION OF LABOUR

The Act extends to the whole of India

Requires the Central and State Govt. to fix minimum

rates of wages in certain scheduled employment.

Minimum wages fixed REVISED from time to time

FTS - HR

Responsibility of the Employer

to follow the directions and fix wages of the

workers at the rate not less than the one fixed
to maintain Register of Wages in form XI showing
rate of wages payable,
actual amount paid,
attendance & overtime,
deductions for EPF, ESI and other,
net amount paid,
date of payment and
signature of respective employee.
Wages slip in form XIII showing the above details
to be given to every employee.
FTS - HR

THE WORKING JOURNALISTS (FIXATION OF

RATES OF WAGES) ACT, 1958
Provides for the fixation of wages in respect of Working
Journalists and for matters connected therewith
FTS - HR

PAYMENT OF WAGES ACT, 1936

An

Act to regulate the payment

of wages to certain classes of
persons

Extends to the whole of India

Responsibility of payment wages rests
with the employer
Employer to fix Wage Period
No wage period shall exceed one
month.
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Time of Payment of wages

7th day of wage month where less than

1000 are working

10th day where more than 1000 are
working
No payment in KIND

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Permissible deduction from Wages

fines
for absence from duty
for damage caused to the property of the
employer
for the amenities provided, like house
accommodation
for recovery of advance or adjusting over
payment of wages
towards EPF, ESI, Labour Welfare Fund and
similar deductions permitted under any Act or
the Standing Orders of the establishment
for Life Insurance/ general insurance policies
and Housing loan.
FTS - HR

The Kerala Payment of

Subsistence Allowance Act, 1972
Act to provide for the payment of
subsistence allowance to the
employees during the period of
suspension
Extends to the whole of Kerala

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Suspension

Any

interim decision of an employer

debarring an employee temporarily from

attending his office

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Payment of Subsistence
Allowance
50% of wages for the first ninety days of
suspension
75% of wages for the period beyond
ninety days
Full wages for the period beyond one
hundred and eighty days

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Not eligible for Subsistence

Allowance
An

employee placed under suspension

not entitled for subsistence allowance if
he accepts employment during the
period of suspension

FTS - HR

THE PAYMENT OF BONUS ACT,

1965

An Act to provide for the payment of Bonus to

persons in certain establishments on the
basis of profits, production or productivity.
Extends to the whole of India.
Applies to every establishment wherein 20 or
more are employed
The Appropriate Govt. shall apply the Act to
any other establishment, including a factory
to which the Factories Act, 1948 applies,
wherein less than 20 workers are employed
provided the number of persons employed is
not less than 10.
FTS - HR

Eligibility to Bonus
employee whose salary/ wages does not
exceed Rs 10000 per month
who has worked in the establishment for
not less than 30 days
Not disqualified to claim bonus due to
fraud, theft or any other misconduct
Bonus of very person drawing salary
between Rs 3500/- and Rs 10000/- per
month shall be calculated as if his salary
were Rs 3500 pm
FTS - HR

For calculating the

number of working days

the days for which the worker has been

laid off
the days he has been on leave with pay
the days he has been absent due to
temporary disablement caused by an
employment injury
the days a woman employee has been on
maternity leave
shall be taken in to account.
FTS - HR

Rate of Bonus
Minimum

:8.33% of salary/wages
Maximum 20% of salary/wages
Computation of bonus as per Schedule I to IV
of the Act.
Adjust any interim bonus paid while making
payment of the final bonus.

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Disputes on Bonus
The Bonus Act does not provide for

any machinery to resolve disputes

relating to bonus. For this, the
Industrial Dispute Act shall be
referred to.

FTS - HR

THE PAYMENT OF GRATUITY

ACT, 1972
The Kerala Industrial Employees
Payment of Gratuity Act, 1970, followed
by the West Bengal Employees Payment
of Compulsory Gratuity Act, 1971 and
the intention of the other States to have
similar Acts in their respective states
necessitated the Central Act so as to
avoid different treatment to employees
of establishments having branches in
more than one states who are subject to
transfer from one state to another.
FTS - HR

The Payment of Gratuity Act, 1972

extends to the whole of India.

Applies to every factory, mine,

plantation and other establishment
wherein 10 or more workers are
employed.

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Gratuity is in the nature of

a retirement benefit
payable
It is not paid to
to an
employee
gratuitously
or
an
employee
for
merely as a matter of boon. It is paid for the
a long
and
meritorious
service
rendered
by him
to the employer
(Delhi Cloth and
General. Mills Co; Ltd
service
Vs The Workmen)
Then why it should necessarily be
denied to him when an employee is
dismissed for misconduct at a latter
stage of service ???
FTS - HR

Gratuity is payable to an
employee on termination of his
employment after he has
rendered continuous service for
less than five years
on his not
superannuation
on his resignation
on his death or disablement due to employment

injury or disease
FTS - HR

News paper employees

The Working Journalists and Other
Newspaper Employees (Conditions of
service) and Miscellaneous Provisions
Act, 1955, provides for payment of
gratuity.
As such, three years of continuous
service is required for eligibility for
Gratuity.
FTS - HR

The payment of gratuity shall be

forfeited
to

the extent of the damage or

loss caused by the employee to
the property of the employer
where the service of the
employee is terminated due to
misconduct

FTS - HR

Rate of gratuity
15 days wages for every completed
year of service
Rates applicable to Working
Journalists depends upon the service
of the employee as provided in the
Working Journalists and Other
Newspaper Employees (Conditions of
service) and Miscellaneous Provisions
Act, 1955
FTS - HR

The average pay of the

monthly rated employee shall
be taken by
dividing the monthly salary/
wages by 26 and not by 30
FTS - HR

Piece rate workers and

Seasonal
establishments
For piece rated workers, average of the
three months wages immediately
preceding the day of leaving shall be
taken as average rate of wage
An employee in a seasonal
establishment shall be paid @ seven
days wages for each season

FTS - HR

Salary ceiling
The

Amendment Act of
1994 removed the salary
ceiling of an employee,
but the maximum
gratuity payable shall be
Rs 3.5 lakh.
FTS - HR

In order to be eligible for gratuity,

employee should have at least five
continuous years of service with the
employer
An employee is in service in a calendar
year provided he has worked for
190 days in case employee is employed
below the ground and
240 days in any other case.
FTS - HR

Continuous service (contd.)

The days he/she has been
laid off under an agreement or under the ID Act or as

permitted by the Standing Orders

on leave with pay
absent due to temporary disablement due to
employment injury
on maternity leave

shall be taken as worked for the

calculation of 190/240 days.

FTS - HR

For seasonal employment 75%

attendance during a season
shall constitute service in a year
An

employee who has worked for 4

years 11 months and 10 days not
eligible for gratuity as decided in P.
Raghavalu and Sons Vs Additional
Labour Court, Andhra Pradesh, as the
qualifying phrases part thereof in
excess of six months shall be taken
only for calculation of gratuity and not
for determining the eligibility of gratuity.
FTS - HR

THE INTERSTATE MIGRANT

WORKMEN (REGULATION OF
EMPLOYMENT AND
CONDITIONS OF SERVICE) ACT
1979

Act to regulate the employment of

interstate migrant workers and to provide
for their conditions of service.
FTS - HR

Extends to the whole of India.

Applies to every establishment wherein five or

more interstate migrant workmen (whether or

not in addition to other workmen) are
employed and every contractor who employs
(whether or not in addition to other workmen)
5 or more interstate migrant worker.

FTS - HR

Interstate migrant worker

An interstate migrant worker means
any person who is recruited by or
through a contractor in the state under
an agreement or arrangement for
employment in an establishment in
another state, whether with or without
the knowledge of the principal
employer.
FTS - HR

Provides for
Registration of establishments
employing interstate migrant
workmen, licensing of contractors,
appointment of licensing officers,
prohibition of employment of
migrant workmen without
registration and duties and
obligations of contractors provided
under the Act.
FTS - HR

Employer to ensure
Regular payment, equal pay for equal work
irrespective of sex, suitable conditions of
work, medical facilities, protective clothing
etc shall be ensured to such workmen.
The contractor to maintain register of
migrant employees, send report of
accidents, half yearly returns (From 23)
and annual returns (Form 24)
Employer contravening the provisions
liable for punishment of imprisonment or
fine or both
FTS - HR

THE EQUAL REMUNERATION

ACT, 1976

Act provides for the payment of equal

remuneration to men and women
Extends to the whole of India
Act makes it obligatory on the part of
employer to pay equal remuneration to
men and women workers for same work
or work of a similar nature.
In order to make the wages equal,
prevailing wages shall not be reduced
but the higher rate shall be maintained.

FTS - HR

No discrimination
No discrimination while making
recruitment for the same work or
work of a similar nature, except
where the employment of
women in such work is
prohibited or restricted by or
under any law for the time being
in force.
No discrimination in any
condition of service subsequent
to recruitment such as
promotions, training or transfer.
FTS - HR

THE APPRENTICES ACT, 1961

The Act extends to the whole of

India.
Applies to those apprentices who are
undergoing apprenticeship training in
designated trades.
From time to time, the Central Govt.
has specified the designated trades.

FTS - HR

Contract of apprenticeship
A contract of apprenticeship training is

entered in to between the employer and the

apprentice or, if he is a minor, guardian of the
apprentice.
The contract of apprenticeship training is to

be sent to the Apprenticeship Adviser of the

respective area.

FTS - HR

Termination of training
on the expiry of the period of apprenticeship
training specified in the contract.
Premature termination by employer the employer shall pay to the apprentice such
compensation as may be prescribed
Premature termination by the apprentice
apprentice or his guardian shall refund to the
employer as cost of training such amount as
may be determined by the Apprenticeship
Adviser

FTS - HR

NUMBER OF APPRENTICES

Depends on the ratio of trade

apprentices to workers other than
unskilled workers and the facilities
available and that may be made
available by the employer for training
the apprentices.

FTS - HR

Duties of the employer

Make suitable arrangements for imparting

practical training
Provide for basic training.
Where an employer employs 500 or more
workers, the basic training shall be imparted
in separate part of the workshop building or
in a separate building set up by the employer.
* the employer may get easy loan from the
Govt. for construction of building for
conducting training classes

FTS - HR

ITIs
if the number of apprentices to be trained is less
than twelve, then the employer may depute such
apprentices to any Basic Training Center or
Industrial Training Institute run by the
Government for basic training in any designated
trade.
Where an employer deputes any apprentice as
above, such employer shall pay to the
Government the expenses incurred by the
Government on such training, at such rate as
may be specified by the Central Government.
FTS - HR

RI Centre
Apprentice

to be given Related
Instruction course.

Time

spent by a trade apprentice in

attending classes on RIC shall be treated
as part of his paid period of work.

FTS - HR

EMPLOYERS to
ensure
Placement

of Training Officer with

suitable qualification
Payment of stipend at a rate not less
than the prescribed minimum rate
Not to pay on the basis of piece
work
Not to require to take part in any
output bonus or other incentive
scheme
FTS - HR

Employer to ensure (contd.)

HEALTH, SAFETY AND WELFARE
OF APPRENTICES
Not to require or allow overtime
except with the approval of the
Apprenticeship Adviser.
In case of employment injury pay
compensation in accordance with
the provisions of the Workmen's
Compensation Act, 1923
FTS - HR

disputes
Any disagreement or dispute
between an employer and an
apprentice arising out of the
contract of apprenticeship shall be
referred to the Apprenticeship
Adviser for decision.

FTS - HR

Obligation for employment

It

shall not be obligatory on the part of

the employer to offer any employment
to any apprentice who has completed
the period of his apprenticeship
training in his establishment,
nor shall it be obligatory on the part
of the apprentice to accept an
employment under the employer.
FTS - HR

THE WORKMENS
COMPENSATION ACT, 1923

The Act provides for payment of

compensation to the worker
injured during the course of
employment or contracted by any
occupational disease peculiar to
that employment
Act extends to the whole of India.
FTS - HR

The amount of compensation

for accidents resulting in death, an amount
equal to fifty per cent of the monthly
wages of the deceased workman
multiplied by the relevant factor; or an
amount of eighty thousand rupees,
whichever is more
* for permanent total disablement, 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.FTS - HR

The maximum compensation as per

W.C. Amendment Act 2000
Fatal

Injury - Rs.4,57,080
Permanent Total Disablement Rs.5,48,496
Permanent Partial Disablement According to incapacity caused
Temporary Disablement - Rs. 2000 per
month upto a period of 5 years
FTS - HR

ESI Corporation and Workmen

compensation
The

liability of payment of
compensation shifted from the
employer to the Employees State
Insurance Corporation

FTS - HR

EMPLOYEES STATE INSURANCE

ACT, 1948
Act extends to the whole of India,
However
The ESI Scheme is being implemented
area-wise by stages.
The Scheme has already been
implemented in different areas in all
States/Union Territories except
Nagaland, Manipur, Tripura, Sikkim,
Arunachal Pradesh and Mizoram and UTs
of Delhi, Chandigarh and Pondicherry
FTS - HR

ESI Act
* Applies to factories and
establishments functioning in the
notified area and consisting of 10 or
more employees.
* Provides for health care and cash
benefits in cases of sickness, maternity
and employment injury.
* The Act absolved the employers of
their obligations under the Maternity
Benefit Act, 1961 and Workmens
Compensation Act 1923.
FTS - HR

Employees
covered

All employees drawing

salary of Rs 10,000 or less
are covered
(w.e.f 1-10-2006)

FTS - HR

Contribution
Employees contribution . 1.75% of wages
Employers contribution. 4.75 % of wages
Employees receiving a daily average wage upto
Rs.70/-(w.e.f 1-8-07) are exempted from payment
of contribution. Employers will however
contribute their own share in respect of these
employees.
pay contribution within 21 days.

FTS - HR

Contribution Period and Benefit

Period
There are two contribution periods
each of six months duration and two
corresponding benefit periods also of
six months duration as under

Contribution period

1st April to 30th Sept.

1st Oct. to 31st March

Corresponding
Benefit period
1st January of the following year
to 30th June
1st July to 31st December of
the year following
FTS - HR

ESI Benefits

Medical Benefits
Available both to IP and family.
Also available to
disabled/retired IP
Super specialist treatment
Sickness Benefit Maternity Benefit
Disablement Benefit
Dependant benefit
Funeral Expenses Old age medi care
Rehabilitation

FTS - HR

Employer to maintain and file

the following books and returns.
1. Form 7 (Register of Employees showing the
details of
Gross wages, ESI contribution
deducted, Contribution by the Employer and total
for the contribution period (six months)
2. Accident book in form 15
3. ESI Declaration in form 1,
4. Return of declaration in form 3
5. Return of Contribution in form 6 for the
contribution period (with similar entries as in
register of employees Form 7)
6. Accident report in form 16. (similar to Form 18 to
be furnished to the Inspector of Factories and
Boilers)
FTS - HR

EMPLOYEES PROVIDENT FUND

AND MISC. PROVISIONS ACT,
1952

An Act to provide for the institution of

provident funds, pension funds and
deposit linked insurance fund for the
employees in the factories and other
establishments
Extends to the whole of India except
the State of Jammu and Kashmir
FTS - HR

Applicability

Applies to all factories and

establishments in which 20 or more
are employed
Continuity of application
Exemption
Where employees get benefits
in the nature of provident fund or
old age pension fund from the
establishment which are not less
favourable than the benefits under
the Act.
FTS - HR

Schemes under the Act

Three beneficial schemes1.Employees Provident Fund Scheme
1952
2.Employees Pension Scheme 1995
3.Employees Deposit Linked Insurance 1976

FTS - HR

membership
An employee at the time of joining the

employment and getting wages up to

Rs.6500/- is required to become a member.
an employee is eligible for membership of
fund from the very first date of joining a
covered establishment.

FTS - HR

Contribution to EPF

Employees share : 12% of the Basic +

DA
Employers contribution : 12% to be
deposited as :
8.33% to be deposited in Pension Fund
A/C No 10 and
the balance, ie, 3.67% to be deposited
in Provident Fund A/C No 01 along with
Employees share of 12%
FTS - HR

Contribution (contd.)

Administration charges @ 1.1% of the total wages/salary

disbursed by deposit to A/C No 02,
Employees Deposit Linked Insurance @
0.5% of the total wages/salary by
deposit to A/C No. 21 and
Administration of EDLI @ 0.01% of the
wages/ salary by deposit to A/C. No. 22.
FTS - HR

Duties of employer
Employer to furnish information about:
(a) Ownership and names of responsible
persons of the establishment.
(b) Declaration and nomination.
(c) Joining and leaving of service by the
members in form 5 and form 10 respectively
(d) Form 12A with monthly challans of deposit.
(e) Form 9 for details of employees.
(f) Form 3A/6A at the end of the financial year.
(g) Any other information as may be required
under Para 76 of the scheme
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Benefits to employees
Provident

Fund Benefits
Pension Benefits
Death Benefits

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Provident Fund Benefits

Employer also contributes to Members PF @
3.67% (1.67% in case of sick industry - eg: beedi)
EPFO guarantees the Employer contribution and
Govt. gives a decent interest to PF accumulations
Member can withdraw from this accumulations to
cater financial exigencies in life - No need to
refund unless misused
On resignation, the member can settle the account.
i.e., the member gets his PF contribution, Employer
Contribution and Interest

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Pension Benefits

Pension to Member
Pension to Family (on death of member)
Scheme Certificate
This Certificate shows the service & family details of
a member
This is issued if the member has not attained the age
of 58 while leaving an establishment and he applies for
this certificate
Member can surrender this certificate while joining
another establishment and the service stated in the
certificate is added with the service he is gaining from
the new establishment.
After attaining the age of 50 or above, the member can
apply for Pension by surrendering this scheme
certificate (if total service is at least 10 years)
This is a better choice than Withdrawal Benefit, that if
a member dies holding a valid scheme certificate, his
family will get pension (Death when NOT in service)
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Pension benefit (contd.)

Withdrawal Benefit
if not eligible for pension, member may withdraw

the amount accumulated in his pension account

the calculation of this amount is based only on (i)
Last average salary and (ii) Service (Not based on
actual amount available in Pension Fund Account)

No amount is taken from Member to give Pension to the Member.

Employer and Govt. contribute to Pension fund @8.33% and
@1.16% respectively
EPFO guarantees pension to members, even if the Employer has
not contributed to Pension Fund.

Pension calculation is similar to that of Govt. Employee

FTS - HR

Death Benefits
Provident Fund Amount to Family (or
to Nominee)
Pension to Family (or to Parent /
Nominee)
Capital Return of Pension
Insurance (EDLI) amount to Family
(or to Nominee)

No amount is taken from Member for this

facility. Employer contributes for this.

Nominee is basically determined as

per the information submitted by the
member at this office through FORM-2
FTS - HR

THE PLANTATION LABOUR ACT

1951

AN ACT TO PROVIDE FOR THE

WELFARE OF THE LABOUR, AND TO
REGULATE THE CONDITIONS OF
WORK, IN PLANTATIONS
It extends to the whole of India
except the State of Jammu and
Kashmir

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Applicability

Applies to any land used or intended to

be used for growing tea, coffee, rubber,
cinchona or cardamom or any other
plant which measures 5 hectares or
more and in which 15 or more workers
are employed on any day of the
preceding 12 months.
The State Government by notification
can apply this law to any other land
even if it measures less than 5 hectares
and employs less than 15 workers.

FTS - HR

Duties of the Employer

Provision of:
Drinking Water
Separate Toilets for Men and Women
Medical facilities to the workmen and their family
Canteen where 150 or more workers are employed
Crches where 50 or more women workers are
employed or where the number of children of women
workers is 20 or more
Recreational facilities
Educational Facilities where children between the
ages of six and twelve of workers employed in any
plantation exceed twenty five.
Housing facility
Welfare Officer where three hundred or more workers
are employed.
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Hours of work and Limitations of

employment
Hours of work 48 hours per week which can be

extended to 54 hours with double the rate as

overtime wages
Weekly holiday
Daily intervals of rest
Prohibition of employing women workers between
7 pm and 6 am
Annual Leave (with wages) @ 1 per 20 days work
Sickness and maternity benefits
Employer to furnish Notice of Accident
Employer to maintain a register of Accidents
FTS - HR

THE INDUSTRIAL DISPUTES

ACT, 1947

An Act to make provision for the

investigation and settlement of
industrial disputes, and for
certain other purposes.

It extends to the whole of India

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Industrial dispute

Any dispute or difference between

employers and employers, or
between employers and
workmen, or between workmen
and workmen, which is connected
with the employment or nonemployment or the terms of
employment or with the conditions of
labour, of any person.
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AUTHORITIES UNDER THIS

ACT

Works Committee
Conciliation officers
Boards of Conciliation
Courts of Inquiry
Labour Courts
Tribunals
National Tribunals
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Works Committee
Where?: Establishments with 100
or more workers
Members: Equal number of
representatives of the Employer
and Employees
Objective: promotion of good
relationship between employer and
employee(s)
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Conciliation officers
Appointed by the appropriate
Government
Duty: Settlement of industrial disputes.
Nature : Appointed for a specified area
or for specified industries in a specified
area or for one or more specified
industries and either permanently or for
a limited period.
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Boards of Conciliation
Appointed by the appropriate
Government as occasion arises for
settlement of disputes.
Board shall consist of an independent
Chairman and two or four other
members in equal numbers to
represent the parties to the dispute
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Courts of Inquiry
Constituted by the appropriate Government

as occasion arises for inquiring into any

matter appearing to be connected with or
relevant to an industrial dispute

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Labour Courts
Labour Courts are constituted by the
appropriate Govt. for the adjudication of
industrial disputes relating to any matter
specified in the Second Schedule and for
performing such other functions as may
be assigned to them under this Act.

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Tribunals
Tribunals

are constituted by the

appropriate Govt. for the adjudication of
industrial disputes relating to any matter
specified in the Second Schedule or the
Third Schedule and for performing such
other functions as may be assigned to
them under this Act.

FTS - HR

National Tribunals
National Tribunals are constituted by the
Central Government for the adjudication of
industrial disputes which, in the opinion of
the Central Government, involve questions
of national importance or are of such a
nature that industrial establishments
situated in more than one State are likely
to be interested in, or affected by such
disputes.
FTS - HR

Matters within the Jurisdiction of

Labour Courts (the II Schedule)

1.The propriety or legality of an order passed

by an employer under the standing orders;
2.The application and interpretation of
standing order;
3.Discharge or dismissal of workmen
including re-instatement of, or grant of relief
to, workmen wrongfully dismissed;
4.Withdrawal of any customary concession or
privilege;
5.Illegality or otherwise of a strike or lockout; and
6.All matters other than those specified in
the Third Schedule.
FTS - HR

Matters within the Jurisdiction of

Industrial Tribunals (the III schedule)
1.Wages, including the period and mode of
payment;
2.Compensatory and other allowances;
3.Hours of work and rest intervals;
4.Leave with wages and holidays;
5.Bonus, profit sharing, provident fund and
gratuity;
6.Shift working otherwise than in accordance
with standing orders;
FTS - HR

III schedule (contd.)

7.Classification by grades;
8.Rules of discipline;
9.Rationalisation;
10.Retrenchment of workmen and
closure of establishment; and
11.Any other matter that may be
prescribed.
FTS - HR

Prohibition of strikes and

lock outs
Not to strike without giving six weeks notice of
strike and during the pendency of any
conciliation proceedings
Not to declare lock-out without giving to the
employees six weeks notice of lock out and
during the pendency of any conciliation
proceedings
A strike or lock-out shall be illegal if it is
commenced or declared in contravention of
the above.
Not to support of any illegal strike or lock-out
FTS - HR

LAY-OFF AND
RETRENCHMENT
No

workman (other than a badli

workman or a casual workman) whose
name is borne on the muster-rolls of
an industrial establishment wherein 50
or more workers are employed
shall be laid-off by his employer except
with the prior permission of the
appropriate Government.
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Lay off compensation

a workman (other than a badli

workman or a casual workman) who
has completed one year of continuous
service under an employer shall be
paid Lay off compensation
Lay off compensation shall be equal to
fifty per cent of the wages (Basic + DA)
Lay off compensation need not be paid
for the weekly holidays which may
intervene
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Continuous Service

An employee is in continuous service in a calendar

year provided he has worked for

190 days in case employee is employed

below the ground and
240 days in any other case.
The days he/she has been
laid off under an agreement or under the ID Act
as permitted by the Standing Orders
on leave with pay
absent due to temporary disablement due to
employment injury
on maternity leave
shall be taken as worked for the calculation of
FTS - HR
190/240 days.

or

Workmen not entitled to

compensation in certain cases
When a worker refuses to accept alternative
employment in the same establishment or
another establishment owned by the employer
and situated in the same village or town or
within 5 a radius of miles of the establishment.
When a worker does not present himself for
work at the establishment at the appointed
time during normal working hours at least
once a day
When such laying-off is due to a strike or
slowing-down of production on the part of
workmen in another part of the establishment

FTS - HR

Retrenchment of workmen
No workman who has been in continuous

service for not less than one year shall be

retrenched without giving one months
notice (three months notice wherein not less
than 50 workers are employed) in writing
indicating the reasons for retrenchment or
if no notice is given, wages in lieu of such
notice.
Retrenchment of workmen employed in an
establishment wherein not less than 50
workers are employed requires permission
from the appropriate Govt.
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Retrenchment
Compensation
Fifteen days average pay for

every year (or part thereof in

excess of six months) of his
service

THIS IS APART FROM THE GRATUITY

PAYABLE UNDER THE PAYMENT OF
GRATUITY ACT
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Compensation to workmen in case of

transfer of undertakings
every

workman shall be entitled to notice and

compensation as if the workman had been
retrenched.

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No compensation on transfer

provided

1 . the service of the workman has not

been interrupted by such transfer;

2 . the terms and conditions of service

applicable to the workman after such
transfer are not in any way less favourable
to the workman

3 . the new employer takes in to

account the continuous service of the
workman.

FTS - HR

Notice to be given of intention to

close down any undertaking
An employer who intends to close down an
undertaking shall give at least sixty days notice
(Ninety days wherein not less than 50 workers
are employed) to the appropriate government
stating clearly the reasons for the intended
closure of the undertaking:
This section shall not apply to
(a) an undertaking in which less than fifty
workmen are or were employed, or

(b) an undertaking set up for the

construction of buildings, bridges, roads,
canals, dams or for other construction work
or project.
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Compensation to workmen in case of

closing down of undertakings
Compensation be paid as if workmen are

retrenched
However no compensation is payable if the
establishment is closed down on account of
unavoidable circumstances beyond the
control of the employer

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These shall not constitute

circumstances beyond the
financial difficulties
(including financial
control
losses); or
accumulation of undisputed off stocks;
or
the expiry of the period of the lease or
license granted to it; or
in case where the undertaking is
engaged in mining operations,
exhaustion of the minerals in the area
in which operations are carried on
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Procedure for retrenchment and

re employment
Retrench

the last worker to be

appointed under a particular category
first

For

re-employment, retrenched
worker shall have preference over
other persons

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RECOVERY OF MONEY DUE

FROM AN EMPLOYER
(section 33 C of ID Act)
Any

sum due from the employer

under a settlement or an award is
recoverable in the same manner as
an arrear of land revenue
Application by the employee to be
received within ONE year.
Any sum capable of being computed
in terms of money shall be recovered
from the employer with the
intervention of Labour Court.
FTS - HR

UNFAIR LABOUR PRACTICES

On the part of employers
threatening workmen with discharge or
dismissal, if they join a trade union
threatening a lock-out or closure, if a trade union
is organised
granting wage increase to workmen at crucial
periods of trade union organisation, with a view
to undermining the efforts of the trade union at
organisation
an employer taking an active interest in
organising a trade, union of his workmen
FTS - HR

Unfair-employer
(contd.)
To establish employer-sponsored trade
unions of workmen
discharging or punishing a workman,
because he urged other workmen to join
or organise a trade union
discharging or dismissing a workman for
taking part in any strike (not being a
strike which it deemed to be an illegal
strike under this Act)
changing seniority rating of workmen
because of trade union activities

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Unfair-employer
(contd.)
refusing to promote workmen to

higher posts on account of their trade

union activities
giving unmerited promotions to
certain workmen with a view to
creating friction amongst other
workmen, or to undermine the
strength of their trade union
discharging office bearers or active
members of the trade union on
account of their trade union activities
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Unfair-employer (contd.)
To discharge or dismiss workmen
by way of victimisation;
by falsely implicating a workman in a criminal
case on false or fabricated evidence;
on untrue allegations of absence without leave;
in utter disregard of the principles of natural
justice in the conduct of domestic enquiry or
with undue haste;
for misconduct of a minor or technical character,
without having any regard to the nature of the
particular misconduct or the past record of
service of the workman.

FTS - HR

Unfair-employer
(contd.)

To abolish the work of a regular nature

being done by workmen, and to give

such work to contractors as a measure
of breaking a strike.
To transfer a workman mala fide from
one place to another, under the excuse
of following management policy.
To insist upon individual workmen, who
are on a legal strike to sign a good
conduct bond, as a precondition to
allowing them to resume work.

FTS - HR

Unfair-employer
(contd.)
To show favoritism or partiality to one set
of workers regardless of merit.
To employ workmen as "badlis" casuals or
temporaries and to continue them as such
for years, with the object of depriving
them of the status and privileges of
permanent workmen.
To discharge or discriminate against any
workman for filing charges or testifying
against an employer in any enquiry or
proceeding relating to any industrial
dispute.

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Unfair-employer (contd.)
To

recruit workmen during a strike which

is not an illegal strike.
Failure to implement award, settlement or
agreement.
To indulge in acts of force or violence.
To refuse to bargain collectively, in good
faith with the recognised trade unions.
Proposing or continuing a lock-out
deemed to be illegal under this Act
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UNFAIR LABOUR PRACTICES

On the part of workmen
advise, support or instigate any strike deemed

to be illegal under this Act.

coerce workmen to join a trade union or refrain
from joining any trade union,
picket in such a manner that non-striking
workmen are physically debarred from entering
the work places
indulge in acts of force or violence or
intimidation in connection with a strike against
non-striking workmen or against managerial
staff
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Unfair- employee
For a recognised union to refuse to
(contd.)
bargain collectively in good faith with the

bargain collectively in good faith with the

employer.
To indulge in coercive activities against
certification of bargaining representative.
To stage, encourage or instigate such
forms of coercive actions as willful "go
slow", squat on the work premises or
"gherao" of any of the members of the
managerial or other staff.
To stage demonstrations at the
residences of the employers or the
managerial staff members.

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Unfair- employee (contd.)

To motivate or indulge in willful

damage to employer's property.
To indulge in acts of force or violence
or to hold out threats of intimidation
against any workman with a view to
preventing him from attending work.

FTS - HR

The Trade Unions Act, 1926

An act to provide for the registration

of Trade Unions and in certain
respects to define the law relating to
registered Trade Unions.
It extends to the Whole of India

FTS - HR

Registration
The

minimum number of workers to form a

registered Trade Union is 10% or 100
whichever is less, subject to a minimum of 7
workers.
Ensure that the number of members does
not fall down the above requirement.

FTS - HR

Sale Promotion Employees

(Conditions of Service) Act, 1976

An Act to regulate certain conditions

of service of sales promotion
employees in certain establishments,
in the first instance, engaged in
pharmaceutical industry
It extends to the whole of India

FTS - HR

APPLICATION OF CERTAIN ACTS

Provides for APPLICATION OF

CERTAIN ACTS, such as
Workmen's Compensation Act,
1923, Industrial Disputes Act, 1947,
Minimum Wages Act, 1948,
Maternity Benefit Act, 1961,
Payment of Bonus Act, 1965 and
Payment of Gratuity Act, 1972 TO
SALES PROMOTION EMPLOYEES
FTS - HR

THANK YOU

FTS - HR