By : Bhoopendra kumar sahu Dharmvir singh choudhary

company Act 1956 Different steps before start project The Factories act,1948 The Employment provident fun & miscellaneous act,1952 The Employment state insurance act, 1948. The Contract labour (regulation &abolition) act,1960

 The

industrial employment ( standing order)act,1946 The Payment of bones act,1965. The Minimum wages act, 1948. The payment of wages act, 1936.

There are many forms in which a business can be organized. Usually , the following models are popular:
Sole proprietorship Partnership firm, including limited liability Company- public or private

File an application in form no.1A with the registrar of company of the state. The application is signed by one of the promoter and must contain the following details minimum 2 alternative names for the proposed company. Justification for the name needs to be specified along with application. Name of the address of the member (minimum 7 for public company and 2 for private company). Authorized capital of the company ( minimum rs5 lacs for public limited and 1 lacs for private company)

After getting the name following documents are prepared : 1. Memorandum of Association 2. Articles of Association 3. Letter of authority to a person for carrying out corrections 4. Declaration by the Promoter Directors 5. Form 18 for registered office address 6. Demand Draft in favour of Registrar of companies for the prescribed amount towards registration fee.

On the receipt of the documents ROC will scrutinize the papers and if any modification is required he will direct to make such changes accordingly. Once ROC is satisfied and scrutiny is completed he will issue certificate of Incorporation. The company would come into existence from the date of certificate of incorporation.

Consult with different consultants. Location Legal aspects of the site location Water resources DPR Financial approval Land acquisition Stake height clearance from AAI Approval from Water resource dept.

Clearance from MOEF. Such as TOR (Terms of Reference) EIA ( Environment Impact Assessment). Public hearing Consent to establishment. Consent to operate. By state environment conservation board.

Factory is defined in Section 2(m) of the Act. Where on ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on. Whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on.

But does not include a mine subject to the operation of the MinesAct,1952 or a mobile unit belonging to the Armed forces of the Union, a railway running shed or a hotel, restaurant or eating place.

It extends to the whole of India It shall come into force on the 1st day of April, 1949

Washing facilities. Facilities for storing and drying clothing. Facilities for sitting. First-aid appliances. Canteens, Shelters, rest rooms and lunch rooms Creches

Cleanliness Disposal of wastes and effluents. Ventilation and temperature. Dust and fume. Lighting Drinking water. Spittoons

Section 6 of this act . Approval, licensing and registration of factories. Form no.4 application for registration and grant or renewal of licenece and notice of occupation.

Form no.1 - Application to the site appraisal committee. Form .no.1A application for approval plans and for permission to construct or take in to use any building as a factory. Form no.2&3 approval , license & registration of factory under factory act.

Form no 27- annual return ( in every calendar year submitted to chief inspector of factory by 15 January of every year) Form no 28- half yearly ( to be sent for the period jan- june to chief inspector by 15th of july)

Form no.4 application for registration and grant or renewal of licenece and notice of occupation. Form no.4A factory manger( change ) Form no.22 notice of accidents ( to chief inspector)

APPLICABILITY:

EVERY ESTABLISHMENT WHICH IS A FACTORY ENGAGED IN ANY INDUSTRY SPECIFIED IN SCHEDULE 1 AND IN WHICH 20 OR MORE PERSON ARE EMPLOYED. ANY OTHER ESTABLISHMENT EMPLOYING 20 OR MORE PERSONS WHICH CENTRAL GOVERNMENT MAY BY NOTIFICATION, SPECIFY IN THIS BEHALF. ANY ESTABLISHMENT EMPLOYING EVEN LESS THAN 20 PERSONS CAN BE COVERED VOLUNATARILY UNDER SECTION 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.

EMPLOYEES COVERED ENJOY A BENEFIT OF SOCIAL SECURITY IN THE FORM OF AN ATTACHABLE AND UNWITHDRAWABLE (EXCEPT I SEVERLY RESTRICTED CIRCUMSTANCES LIKE BUYING HOUSE, MARRIAGE, EDUCATION etc.). FINANCIAL NEST EGG TO WHICH EMPLOYEES AND EMPLOYERS CONTRIBUTE EQUALLY THROUGHOUT THE COVERED PERSONS EMPLOYMENT. THIS SUM IS PAYBLE NORMALLY ON RETIREMENT OR DEATH. OTHER BENEFITS INCLUDE EMPLOYEES PENSION SCHEME AND EMPLOYEES DEPOSITE LINKED INSURANCE SCHEME.

Empoyer contribution EPF EMPLOYERS - 12% + EPF ADMIN CHARGES 1.10% + EDLI 0.50 % + EDLI ADMIN CHARGES 0.01% = 13.6% EMPLOYEES contribution: EPS - 8.33 %, EPF 3.67% total = 12%

1. COMBINED

CHALLAN A/C 1,2,10,21 & 22 2. 12 A (Employees Strength and paid) 3. Form 5 - New Joining (Name, Fathers Name, DOJ, DOB, Gender. 4. Form 10 Left Employees (Name, Fathers Name, DOJ, DOL, Reason.

Note : Above all contribution count on Employees Basic Earnings. THE ABOVE CLARIFICATION IS GIVEN BY TAKING WAGES UPTO A MAXIMUM OF Rs.6500 TOWARDS WAGE (BASIC+DA).
Nomination : Form 2 (Revised) Nominee Change : Form 8 For Withdrawal : Form 19 & 10 c

3 A : Employees individual detail month wise (Period 1st April to 31st March) 6 A : All Employees combined detail monthwise

Applicability The ESI Act, 1948 in the first instance, applies to: Factories using power in the manufacturing process and employing 10 or more persons Non-power using factories or establishments employing 20 or more persons for wages.

ESI scheme is financed by contribution raised from employees covered under this scheme and their employers as a fixed percentage of wages. Rates of contribution are as follows: Employees contribution 1.75% of wages ( Employees earning up to Rs. 50 per day are exempted from payment of their contribution) Employers contribution 4.75% of wages.

Wage Ceiling Employees of covered units and establishments drawing wages upto Rs. 15,000 per month come under the purview of the ESI Act 1948.

Various benefits that the insured employees and their dependents are entitled to are as follows Medical Benefits Sickness Benefits Maternity Benefits Disablement Benefits Dependent Benefits Other Benefits

An employer shall apply in Form-01 for coverage under the ESI Act, within 15 days after the Act becomes applicable to a factory or establishment. The employer shall deposit both employees and employers contribution as per specified rates within 21 days of the following month.

The Employer shall maintain all such records and registers as are required under the Act and produce them for verification / inspection before the authorised officers of the Corporation. The employer shall submit half-yearly Return of Contributions (RC) by 12th May/11th November every year with all columns properly filled.

Form no.01 employer registration form. Form no.1- declaration form ( employee) Form no.- 12- accident form

Monthly return challan ( on before 21st of every month). Form no.5 half yearly return ( contribution statement of the members within 30 days of contribution period.

Object of the act: To regulate the employment of Contract Labour in certain establishments and to provide for its abolition in certain circumstances and for matters connected., The main objective of this act is to regulate the contract labour and abolish it in certain cases

Every industry engaging 20 or more workers on contract basis. Every contractor engaging 20 or more workers.

Apply in form I for registration in triplicate copy along with prescribed fees.
Apply in form IV for license in triplicate copy along with license & security fees. For license form V is given by Principal employer to contractor.

The licence granted is subject to such conditions as to hours of work, fixation of wages and other essential amenities in respect of contract labour as laid down in the rules.

For work of immediate nature Principal employer/ Contractor can apply for temporary registration/ license which is valid up to 15 days only.

Register of contractors
Annual return XXV (on or before 15th Feb) Notice of Commencement/ Completion

Form XII
Form Form VI B

Canteen Rest rooms Urinals, Latrines Drinking Facilities First Aid Facilities

Section 16 Section 17
Section 18 Section 19

Principal employer will have to provide these facilities if not provided by contractor

Object of the Act: To require employers to define the conditions of work. To brig about uniformity in terms and conditions of employment To minimise industrial conflicts. To foster harmonious relations between employers and employees. To provide statutory sanctity and importance to standing orders

Extends to the whole of India To every establishment wherein 100 or more workmen are employed On any day preceding twelve months Once applicable to the establishment then it continuous if the no. of workmen employed gets reduced to less than 100 The appropriate Govt. can exempt any establishment from any of the provisions of the Act

Standing Orders

The term Standing Orders means rules relating to matters set out in the Schedule of the Act.

Classification of the workmen : temporary, casual, apprentices Manner of intimating to workmen Shift working Attendance and late coming Conditions of, procedure in applying for, and the authority which may grant leave and holidays Requirements to enter premises by certain gates and liability to search Closing and reopening of sections of the establishments, temporary stoppages Suspension or dismissal for misconduct Acts and omissions which constitute misconduct

Obligatory on the part of an employer or a group of employers to furnish 5 copies of the draft standing orders Within 6 months of the application of the Act the employer shall submit the draft standing orders Copies to be given to the certifying officer Draft has to enclose the prescribed particulars of the workmen The status and name of the trade unions to be given. It has to take all matters set out in the Schedule.

Copy of draft standing orders to be sent to trade union/workmen Opportunity of hearing to trade union/workmen to be provided Certification Certified standing orders have the force of law and the violation of any provision shall be taken action Standing orders to be applicable to all present and future workmen Standing orders must confirm the model standing order

On the expiry of 30 days of the certification given by certifying officer Or After the expiry of 7 days of the decision given by appellate authority.

Any employer fails to submit draft standing orders or modifies it, shall be punishable with fine which may extend to Rs. 5000. In case of continuance of the above offence, fine up to Rs.200 per every day. Any contravention of Standing Orders is punishable by Rs. 100 fine

eligilibility: -Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.

Minimum less Maximum

8.33% or Rs. 3500 which ever is

20%

wages (Basic & DA) up to 10000/=p.m. or Below employees get bonus as per the act.

Within eight (8) months of the next financial year (Before Nov).

An employee shall be disqualified from receiving bonus under this Act, if he is dismissed from service for-

(a)Fraud (b)Riotous

or violent behaviour while on the premises of the establishment. (c)Theft, misappropriation or sabotage of any property of the establishment.

"wages" means all remuneration, capable of being expressed in terms of money, which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment

(a) a minimum rate of wages for time work (hereinafter referred to as "a minimum time rate"); (b) a minimum rate of wages for piece work (hereinafter referred to as "a minimum piece rate"); (c) a minimum rate of remuneration to apply in the case of employees employed on piece work for the purpose of securing to such employees a minimum rate of wages on a time work basis (hereinafter referred to as "a guaranteed time rate");

(c) a minimum rate of remuneration to apply in the case of employees employed on piece work for the purpose of securing to such employees a minimum rate of wages on a time work basis (hereinafter referred to as "a guaranteed time rate")

(1) The appropriate Government shall, in the manner hereinafter provided,(a) fix the minimum rates of wages payable to employees employed in an employment specified in Part I or Part II of the Schedule and in an employment added to either Part by notification under section 27:

In respect of employees employed in an employment specified in Part II of the Schedule, instead of fixing minimum rates of wages under this clause for the whole State, fix such rates for a part of the State or for any specified class or classes of such employment in the whole State or part thereof.

(A) different minimum rates of wages may be fixed for(i) different scheduled employments; (ii) different classes of work in the same scheduled employment; (iii) adults, adolescents, children and apprentices; (iv) different localities

(b) minimum rates of wages may be fixed by any one or more of the following wage periods, namely:(i) by the hour, (ii) by the day, (iii) by the month,

The Act contains list of all these employments for which minimum wages are to be fixed by the appropriate Governments. There are two parts of the Schedule. Part I has non-agricultural employments whereas PartII relates to employment in agriculture.

Appropriate Government to fix the minimum rates of wages in the scheduled employments. Revise the Minimum rates at an appropriate interval not exceeding five years. Minimum Wages Act, 1948, two methods have been provided for fixation/revision of minimum wages. They are Committee method and Notification method.

Under this method, committees and subcommittees are set up by the appropriate Governments to hold enquiries and make recommendations with regard to fixation and revision of minimum wages,

In this method, Government proposals are published in the Official Gazette for information of the persons likely to be affected thereby and specify a date not less than two months from the date of the notification on which the proposals will be taken into consideration.

Current minimum wages:

Skilled: Rs.196.07 Semiskilled: Rs.187.07 Unskilled: Rs.179.07