tp6 industrial law final now
TRANSCRIPT
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THE FACTORIES ACT, 1948
To set up a factory, the prior approval of the state government has to be obtained for the site on which the
factory is to be situated and for the construction or extension of any factory. For this an application in the
prescribed form has to be submitted to the Chief Inspector of Factories along with a flowchart of the
manufacturing process describing the various stages of the process, plans and specifications for the
construction in duplicate and other particulars that may be required.
The occupier of a factory is also required to get the factory registered for obtaining a license for operating
it and send a notice of occupation to the Chief Inspector of Factories, at least 15 days before he begins to
occupy the factory.
Renewal of license has to be applied for at least 30 days before expiry along with the prescribed fee
(which is the same as for grant of license).
By registering the factory, the occupier is required by law to undertake the following measures for
ensuring the good health and physical condition of the workers:
1. Cleaning and Disposing of Wastes and Effluents: The occupier is required to keep the factory
premises clean and free from waste and ensure that sweeping, removal of dirt and cleaning withdisinfectant is done daily.
2. Ventilation, Temperature and Humidity: The factory premises should be adequately ventilated by
circulation of fresh air and comfortable temperature should be maintained in every workroom.
3. Latrines, Urinals and Spittoons: Every factory should provide adequately lighted and ventilated
latrines and urinals for male and female workers separately, and should be washed and cleaned with
detergents and disinfectants.
4. Avoid Overcrowding: The workplace should not be overcrowded by workers, to an extent, it may beinjurious to their health.
Besides these the Factory Act also requires a number of welfare amenities to be provided to the
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Besides these the Factory Act also requires a number of welfare amenities to be provided to the
Display Notices, Maintain Registers and Submit Returns:
1. Notices: The occupier has to display a notice containing abstract of the provisions of the Act and the
rules made there under, in the prescribed form, in English and in a language understood by the majority of
the workers in the factory.
2. Registers: The occupier should maintain registers or records as may be prescribed by the state
government in the rules. The registers generally prescribed are:
Muster rolls (separate for adult workers and children) ; Register of Accidents and Dangerous
Occurrences ; Inspection Book ; Overtime muster roll ; Salary register ; Fine deduction register ;
Wage slips
3. Returns: The occupier is generally required to furnish certain returns such as Annual Return, Half-yearly Returns, which contain particulars relating to wages, leaves, holidays, etc.
THE PAYMENT OF WAGES ACT, 1936
Objective: This act guarantees the payment of wages on time and without any deductions except those
authorized under the act. It regulates the payment of wages to certain classes of employed persons.
Applicability: It extends to all the factories & industrial establishments in whole of India.
Rights of the employees: Claims for non-payment of wages shall be filed before the CJM (claim
authority) as follows:
By employee himself in Form A.
On behalf of employee by any other person in Form B.
By group of employees in Form C.
The claim should be filed in duplicate within 12 months from due date before CJM. Penalties are
provided in the Act for violation. Appeal can be made against the orders of CJM to the court of small
causes and district courts.
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Deductions from the wages of an employed person: Fines, absenteeism, damage to or loss of goods
directly attributable to his neglect, services supplied by the employer, income-tax payable by the
employee, premium for LIC policy on written authorization of the employed person, deductions madewith the authorization of the employed person.
Total amount of deductions should not exceed 75% of wages of the employee in any wage-period if
whole or part of the deductions is meant for payments to co-operative societies, in other cases it should
not exceed 50%.
Levy of Fines: They should not exceed 3% of the wages in a month, be recovered within 90 days of the
date of the act or omissions be imposed after a proper show cause procedure and cannot be imposed on an
employed person of less than 15 years of age.
THE MINIMUM WAGES ACT, 1948
OBJECT: For fixing minimum rates of wages in certain employments.
APPLICABILITY: It extends to the whole of India and applies to schedule Employments in respect of
which minimum rates of wages have been fixed under this act.
SCHEDULED EMPLOYMENTS: An employment specified in the schedule, or any process or branch
of work forming part of such employment.
FIXING OF MINIMUM RATES OF WAGES:
1. The appropriate government shall fix the minimum rates of wages payable to employees
employed in a scheduled employment.
2. Revise the minimum rate of wages if necessary at intervals not exceeding five years.
PAYMENT OF MINIMUM RATES OF WAGES: The employer shall pay to every employee in a
h d l d l t d hi t th t t l th th i i t f fi d d
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Every employer shall maintain the following registers and records as required under the Karnataka
Minimum Wages Rules 1958 enacted vide section-30 of the Act.
Register of wages in Form No. XI or Form XII; A muster-roll in Form No. VI; Register of fines, FormNo. I; Register of deductions for damage or loss in Form No. II; Register of overtime in Form No. V;
Visit book ; A wage slip in Form No. XIII shall be issued by every employer to every person employed
by him at least a day prior to the disbursement of wages.
ANNUAL RETURNS: Annual returns in Form III or Form III a as per rule 21 (4) (iii) shall be submitted
to the Inspector before the first day of the February of the succeeding year.
PRESERVATION OF REGISTERS: All the registers shall be preserved for a period of three years
after the date of last entry made therein
PENALITY: Any employer who contravenes any of the provisions of this Act other than those relating
to Section 12 and 13 of any rule or any order made there under shall be punishable with fine, which may
extend to Rs.500. Any employer who contravenes the provision relating to the payment of minimum rates
of wages fixed (Section- 12) hours of work stipulated for constituting a normal working day as per section13 shall be punishable with imprisonment for a term which may extend to six months or with fine which
may extend to Rs. 500/- or with both.
THE PAYMENT OF BONUS ACT
Objective: The payment of Bonus Act provides for payment of bonus to persons employed in certain
establishments of the basis of profits or on the basis of production.Applicability of the act : It extends to every factory wherein atleast 10 persons are employed with the
aid of power or where 20 or more workmen are employed without the aid of power on any day during an
accounting year
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Maximum bonus payable:
If in an accounting year, the allocable surplus, calculated after taking into account the amount set on or
the amount set of exceeds the minimum bonus, the employer should pay bonus in proportion to thesalary or wages earned by the employee in subject to a maximum of20% of such salary or wages.
Time limit for payment: The bonus should be paid in cash within 8 months from the close of the
accounting year or within one month from the date of enforcement of the award or coming into operation
of a settlement following an industrial dispute regarding payment of bonus.
Duties of employerTo pay the annual bonus as required under the Act; To submit an annual return of bonus paid to
employees during the year, in Form D, to the Inspector, within 30 days of the expiry of the time limit
specified for payment of bonus; to produce the registers/records as per mentioned in the law; To get his
account audited as per the directions of a Labor Court/Tribunal or of any such other authority.
Rights of employer
To forfeit bonus of an employee, who has been dismissed from service for fraud or riotous behavior; tomake permissible deductions from the bonus payable to an employee, such as, festival bonus paid and
financial loss caused by misconduct of the employee; to refer any disputes relating to application or
interpretation of any provision of the Act, to the Labor Court or Labor Tribunal.
Rights of employees:
To claim bonus payable under the Act and to make an application to the Government, for the recovery ofbonus due and unpaid, within one year of its becoming due; to refer any dispute to the Labor Court.
P l i
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Features of the act: All the employees are entitled to the payment of gratuity on completion of5 years
of service. In case of death or disablement there is no minimum eligibility period. The amount of gratuity
payable shall be at the rate of17 days wages based on the rate of wages last drawn, for every completed
year of service. The maximum amount of gratuity payable is Rs. 3, 50,000/-.
Formula is - Last Wages *15*No. of services/26
RESPONSIBILITY OF THE EMPLOYER: It is the duty of the employer to determine the amount of
gratuity as soon as it becomes payable and to give notice of the same to the person to whom gratuity is
payable and also to the Controlling Authority. Failure to do so shall render him liable to pay the interest at
the prevailing rate from time taken.
RESPONSIBILITY OF THE EMPLOYEE: In case the employee is not paid the due amount of
gratuity he should apply, ordinarily within thirty days, in Form-I to the employer. Is an employer fails to
pay due gratuity even after the receipt of notice in Form-1, the claimant employee, may within ninety
days of the occurrence of the case for the application, should apply in Form-IV, to the Controlling
Authority for issuing direction to the employer. After conducting the enquiry as prescribed, the
Controlling Authority will determine the amount payable and direct the employer to make the payment.Application for gratuity:
1. An employee who is eligible for payment of gratuity under the Act, shall apply, ordinarily within
thirty days from the date the gratuity became payable, in Form 'I' to the employer:
2. A nominee of an employee who is eligible for payment of gratuity under the second provision to
sub-section (1) of section 4 shall apply, ordinarily within thirty days from the date of gratuity
became payable to him, in Form J to the employer:
3. A legal heir of an employee who is eligible for payment of gratuity under the second provision tosub-section (1) of section 4 shall apply, ordinarily within one year from the date of gratuity
became payable to him, in Form 'K' to the employer.
4 Wh t it b bl d th A t b f th t f th l th
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Mode of payment: The gratuity payable under the Act shall be paid in cash. Provided that in case the
eligible employee so desires and the amount of gratuity payable is less than one thousand rupees, payment
may be made by postal money order after deducting the postal money order commission therefore fromthe amount payable.
Notice of opening, change or closure of the establishment:
Within thirty days of the rules becoming applicable to an establishment, a notice in Form A
shall be submitted by the employer to the controlling authority of the area.
A notice in Form B shall be submitted by the employer to the controlling authority of the area
within thirty days of any change in the name, address, employer or nature of business.
Where an employer intends to close down the business he shall submit a notice in Form C to the
controlling authority of the area at least sixty days before the intended closure.
Display of notice:
The employer shall display a notice at or near the main entrance of the establishment in bold
letters in English and in a language understood by the majority of the employees specifying the
name of officer with designation authorised by the employer to receive on his behalf notices
under the Act or the rules.
A fresh notice shall be displayed immediately after the notice referred to in sub-rule (1) becomes
illegible or requires a change.
Nominations:
A nomination shall be in Form 'F' and submitted in duplicate by personal service by the
employee, after taking proper receipt or by sending through registered post.1. In the case of an employee who is already in employment for a year or more on the date of
commencement of these rules, ordinarily, within ninety days from such date.
2 In the case of an employee who completes one year of service after the date of commencement of
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A nomination shall be signed by the employee or, if illiterate, shall bear his thumb
impression, in the presence of two witnesses, who shall also sign a declaration to that effect in the
nomination.
A nomination, shall take effect from the date of receipt thereof by the employer.
PENALTY: The Act provides that whoever makes false statement for the purpose of avoiding any
payment shall be punishable with imprisonment for a term which may extend to six months or with fine
which may extend to ten thousand rupees or with both. An employer who contravenes any provisions of
the Act shall be liable for imprisonment for a term of not less than three months but which may extend to
one year or with fine which shall not be less than ten thousand rupees but which may extend to twenty
thousand rupees or with both. Where the offence relates to non-payment of gratuity the employer can be
punished with imprisonment for a term which is not less than six months.
THE EMPLOYEES STATE INSURANCE ACT
Objective of the act: ESI act is a major legislation on social security for industrial workers in India. The
scheme is devised so as to provide social protection to workers in contingencies such as illness, or any
other health risks due to employment injury or occupational hazards.
Applicability of the act: It applies to all factories in India employing 10 or more persons and carrying on
a manufacturing process with the aid of power or employing 20 or more persons and carrying on a
manufacturing process without the aid of power.
Employees entitled: Every employee, whether employed directly or through a contractor, who is inreceipt of wages up to Rs. 6,500 p.m. is entitled to be insured under the E.S.I. Act.
An employer/establishments covered under the E.S.I. Act isexempt from the provisions of
M i B fi A d W k C i A
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Maternity Benefit: A periodical cash benefit is payable to an insured woman employee, in case of
miscarriage, medical termination of pregnancy, premature birth of a child, or sickness arising from
pregnancy, etc., if the contributions, in respect of her were payable for atleast 70 days in the twoimmediately preceding contribution periods. The benefit is payable at twice the standard benefit rate
or Rs. 20, whichever is higher, for all days on which she does not work for remuneration during the
period prescribed as under.
Medical Bonus: Rs. 250 on account of confinement expenses shall be paid to an insured woman and an
insured person in respect of his wife, at a place where necessary medical facilities under ESI Scheme are
not available.
Disablement Benefit: Disablement benefit is payable in the form of cash installments, to an employeewho is injured in the course of his employment and is, permanently or temporarily disabled.
BENEFITS NOT TO BE COMBINED
An employee shall not be entitled to receive for the same period-
Both sickness benefit and maternity benefit; or
Both sickness benefit and disablement benefit for temporary disablement; or
Both maternity benefit and disablement benefit for temporary disablement.The employee shall be entitled to choose any one of the aforesaid benefits, at his option.
PAYMENT OF BENEFIT IN CASE OF DEATH: If an employee dies during any period for which he
is entitled to a cash benefit, the amount of such benefit shall be payable up to and including the day of his
death. The amount of benefit shall be paid to the nominee or, where there is no nomination, to the legal
representative of the deceased employee.
If an insured employee dies, the eldest surviving member of his family or the person who incursthe expenditure of funeral of the deceased employee is entitled to reimbursement of such expenditure
subject to a maximum ofRs. 1,500. The claim for the payment of funeral expenses should be submitted in
the prescribed form along with prescribed documents within 3 months of the death of the employee
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The employer should deposit the employees and his own contributions to the E.S.I. Account in the
prescribed manner, whether he has sufficient resources or not, his liability under the Act cannot be
disputed.The employershould not reduce the wages of an employee on account of the contribution payable by
him
The employer should report to the E.S.I. authorities of any accident in the place of employment, within 24
hours or immediately in case of serious or fatal accidents. He should make arrangements for first aid
and transportation of the employee to the hospital.
The employer should inform the local office and the nearest E.S.I. dispensary/hospital, in case of death
of any employee, immediately.The employer must not put to work any sick employee and allow him leave, if he has been issued the
prescribed certificate.
OBLIGATIONS OF EMPLOYEES:
Notice of injury: The insured employee who sustains an employment injury should give a notice of the
same to the employer or manager, by means of entry in the Accident Bookor otherwise in writing or
even orally. This notice is very important for claiming the disablement benefit.
Legal formalities / registers / documents under the act
The employer should cause to be maintained the prescribed records/registers namely the register of
employees, the inspection book and the accident book.
Penalties
The Employer/Company is empowered to pay penalties if any as follows:Period of delay in Payment of Contribution Rate of Damages/Penalties on amount due
Upto less than 2 months 5%
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Who has suffered an accident arising out of and in the course of his employment, resulting into
death, permanent total disablement, permanent partial disablement, temporary disablement
whether total or partial, who has contracted an occupational disease.However the employer shall not be liable:
In respect of any injury which does not result in the total or partial disablement of the
workmen for a period exceeding three days
In respect of any injury not resulting in death, caused by an accident which is directly
attributable to the 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.
Duties of employers:
To pay compensation for an accident suffered by an employee, in accordance with the Act.
To submit a statement to the Commissioner (within 30 days of receiving the notice) in the
prescribed form, giving the circumstances attending the death of a workman as result of an
accident and indicating whether he is liable to deposit any compensation for the same.
To submit accident report to the Commissioner in the prescribed form within 7 days of the
accident, which results in death of a workman or a serious bodily injury to a workman.
To maintain a notice book in the prescribed from at a place where it is readily accessible to the
workman.
To submit an annual return of accidents specifying the number of injuries for which
compensation has been paid during the year, the amount of such compensation and other
prescribed particulars.
Duties of employees:
To send a notice of the accident in the prescribed form, to the Commissioner and the employer,
within such time as soon as it is practicable for him. The notice is precondition for the admission
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REGISTRATION OF AGREEMENTS OF COMPENSATION: An agreement for payment of
compensation which has been registered shall be enforceable under this act notwithstanding anything
contained in the Indian Contract Act, where the amount payable as compensation has been settled byagreement a memorandum thereof shall be sent by the employer to the Commissioner, who shall, on
being satisfied, record the memorandum in a registered manner.
THE INDUSTRIAL DISPUTES ACT, 1947
This Act states the conditions for retrenchment of workers. It is necessary for factory owners to hire and
fire so as to increase efficiency and productivity. Presently, a system of last come, first go exists where
the employer is required to retrench the person last employed in any category unless he can prove that theemployee retrenched is inefficient, unreliable or habitually irregular. Even then, no workman who has
been in continuous service for at least one year can be retrenched until and unless the following
conditions are met:
1. Notice/Notice Pay: The employer is required to serve three months notice to retrench the workman
with reasons for the same, in the prescribed form, to every workman who is being retrenched.
2. Approval of the Government: The employer is required to obtain prior approval of the concerned
governmental authority. Permission can be obtained by submitting an application in form within 60 daysbefore the proposed retrenchment. The application should clearly state the reasons for the intended
retrenchment. A copy of the application should be served simultaneously on the workman concerned.
3. Retrenchment Compensation: Where the approval of the government has been granted the workman
being retrenched shall be entitled to receive retrenchment compensation.
THE TRADE UNIONS ACT, 1926The Trade Unions Act, 1926 provides for registration of trade unions with a view to render lawful
organisation of labor to enable collective bargaining. The Act extends to the whole of India and applies to
all kinds of unions of workers and associations of employers which aim at regularizing labor
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Dissolution of a trade union: A registered trade union can be dissolved in accordance with the rules of
the union. A notice of dissolution signed by any seven members and the secretary of the union should besent to the registrar within 14 days of the dissolution. On being satisfied the registrar shall register the
notice and the union shall stand dissolved from the date
Amalgamation of trade unions: Any registered trade union may amalgamate with any other union(s),
provided that at least 50% of the members of each such union record their votes and at least 60% of the
votes so recorded are in favor of amalgamation. A notice of amalgamation signed by the secretary and at
least 7 members of each amalgamating union should be sent to the registrar, and the amalgamation shall
be in operation after the Registrar registers the notice.
MATERNITY BENEFIT ACT
Objective of the act: To protect the dignity of motherhood and of a new persons birth by
providing for the full and healthy maintenance of the woman and her child at this important time
when she is not working.
Applicability of the act: It extends to the whole of India and applies to every factory where 10
or more persons are employed on any day of the preceding 12 months. However, the Act does
not apply to any such factory to which the provisions of the Employees State Insurance Act
are applicable for the time being.
Features of the act: Every woman shall be entitled to, and her employer liable for, the payment
of maternity benefit, which is the amount payable to her at the rate of the average daily wage for
the period of her actual absence.
Period for which maternity benefit is allowed: The maximum period for which any woman shall be
entitled to maternity benefit shall be 12 weeks in all whether taken before or after childbirth However
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That she will be absent from work from such date (to be specified by her), which shall not be
earlier than 6 weeks before the date of her expected delivery.
The notice may be given during the pregnancy or as soon as possible, after the delivery. On
receipt of the notice, the employer shall permit such woman to absent herself from work after the
day of her delivery.
The failure to give notice, however, does not disentitle the woman to the benefit of the Act.
Duties of employers:
To pay maternity benefit and/or medical bonus and allow maternity leave and nursing breaks to
the woman employees, in accordance with the provisions of the Act.
Not to engage pregnant women and not to dismiss or discharge a pregnant woman employee
during the period of maternity leave.
Rights of employees:
To make a complaint to the Inspector and claim the amount of maternity benefit improperly
withheld by the employer.
To appeal against an order of the employer depriving her of the maternity benefit or medical
bonus or dismissing her from service, within 60 days of the service of such order.
Penalties
Penalties for contravention of act by employer: For failure to pay maternity benefit as provided for
under the Act, the penalty is imprisonment upto one year and fine upto Rs. 5000. The minimum being 3
months and Rs. 2000 respectively. For dismissal or discharge of a woman as provided for under the Act,
the penalty is imprisonment upto one year and fine upto Rs. 5000. The minimum being 3 months and
Rs.2000 respectively.
THE EMPLOYEES PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS
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a. In case of establishments employing less than 20 persons or a sick industrial (BIFR) company or
sick establishments 10% of the basic wages, dearness allowance and retaining allowance.
b. In case of all other establishments employing 20 or more person-12% of the wages, D.A., etc.
Where, the pay of an employee exceeds RS. 6500 p.m., the contribution payable to Pension Fund shall be
limited to the amount payable on his pay ofRS. 6500 only, however, the employees may voluntarily opt
for the employers share of contributions on wages beyond the limit of RS. 6500 to be credited to the
Pension Fund.
Penalty for default in payment: If the employer defaults in making payment of any contribution,
administrative charges, to the Fund, he shall be liable to pay, by way of penalty, damages at the followingrates:
Period of Default Rate of Damages (%p.a.)
(i) Less than 2 months 17
(ii) 2 months and above but less than 4 months 22
(iii) 4 months and above but less than 6 months 27
(iv) 6 months and above 37
INTEREST
The employer shall be liable to pay simple interest @ 12% p.a. on any amount due from him under the
Act, from the date on which it becomes due till the date of its actual payment.
THE CONTRACT LABOUR
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REGISTRATION OF ESTABLISHMENT: Every principal employer of an establishment shall make
an application for registration in triplicate in Form No.1 to the registering officer of the area along with atreasury receipt showing payment of the prescribed fee. If the application for registration is complete in
all respects, the registering officer shall register the establishment subject to rule 17 to 20 and issue a
registration certificate in Form-II (Section 7 to 9 read with rule 17 to 20).
PROHIBITION OF EMPLOYMENT OF CONTRACT LABOUR: The appropriate govt. is
empowered to prohibit employment of contract labor in any process of operation or other work in any
establishment after consultation with the Advisory Board.
GRANT OF LICENCES: Every contractor shall make an application for the grant of a license in
triplicate in Form No.IV along with a treasury receipt showing the prescribed fee to the licensing officer.
The application shall also be accompanied by a certificate by the principle employer in Form-V.
SECURITY: The contractor shall deposit a security amount at the rate of Rs.20 for each of the workman
to be employed as a contract labor at the time of making application for license.
RENEWAL OF LICENCE: Every contractor shall make an application for the Renewal of license in
Form VII in triplicate along with the required fee not less Than thirty days before the expiry date. If the
renewal application is not submitted within the time specified the contractor shall be liable to pay a fee of
25% in excess of the fee ordinary Payable. A duplicate certificate shall be issued on payment of Rs. 5/-
REGISTRATION FEE: As we have more than 500 workers in the factory so we will pay Rs10,000 as registration fees.
LICENSING FEE/RENEWAL FEE A h th 500 k i th f t ill
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Every contractor shall issue an employment card and is wages slip in Form 19 at least a day prior to the
disbursement of wages in Form14 to each worker within 3 days of the employment of the worker and
issue a service certificate in Form 15 on termination of his employment.
ANNUAL RETURNS: Contractor shall send half yearly return in Form 24 in duplicate to the licensing
officer not less than thirty days from the close of the half year. Principal employer shall send Annual
Return in Form 25 in duplicate to the registering officer not later than the 15th February of the
succeeding year.
PENALITY: The offences relating to the obstruction to the inspector and refuses to produces the registerand records etc. shall be punishable with imprisonment for a term which may extend to three months or
with fine which may extend to Rs. 500/- or with both. Contraventions of provisions regarding
employment of contract labor shall be punishable with imprisonment for a term which may extend to
three months or with fine which may extend to Rs. 100/- for every day. Contraventions of the
provisions of the Act or Rules in which no other penalties elsewhere provided, shall be punishable with
imprisonment for a term which may extend to three months or with fine which may extend to Rs. 1,000/-
or with both.
Responsibilities
Principal Employer should ensure that the Contractor does the following:
a. Pays the wages as determined by the Government or Commissioner of Labor., if any.
b. In their absence pays fair wages to contract laborer.
c. Provides the following facilities:
Canteen (if employing 100 or more workmen in one place) and if the work is likely to last for6 months or more ; Rest rooms where the workmen are required to halt at night and the work
is likely to last for 3 months or more ; Requisite number of latrines and urinals - separate for
men and women; Drinking water; Washing; First Aid; Crche
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4. Display of rate of wages, hours of work, wage period, date of payment of wages.
5. Employment card.
6. Service Certificates.7. Half yearly return.
Responsibility for payment of wages:
1. A contractor will be responsible for payment of wages to each worker employed by him as
contract labor and such wages shall be paid before the expiry of such period.
2. Every principal employer shall nominate a representative duly authorized by him to be present by
the contractor and it shall be the duty of such representative to certify the amount paid as wagesin such manner as may be prescribed.
3. It shall be the duty of the contractor to ensure the disbursement of wages in the presence of the
authorized representative of the principal employer.
4. In case the contractor fails to make payment of wages within the prescribed period, then the
principal employer shall be liable to make payment of wages, to the contract labor employed by
the contractor and recover the amount so paid from the contractor either by education from any
amount payable to the contractor under any contract so as a debt payable by the contractor.
DISCIPLINARY PROCEDURE
Following are the Principles of Disciplinary Procedure which would be followed:
No disciplinary action will be taken against any employee until his/her case has been fully
investigated.
At every stage during the procedure the employee will be given complete information aboutthe action which would be taken against him.
The employee would be given a complete chance to present his/her case.
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be held on the individuals personnel file. Following are some cases which would merit a Formal
written warning:
Misuse of organizations equipment; Smoking in prohibited areas; Unauthorized absencefrom work
Any behavior likely to bring the Organizations reputation into disrepute
3. Stage three: Final written warning: A repetition of a previous offence will justify a final
written warning. At this stage a detail of the incident and the action to which is employee is liable
will be written and a copy of which will be issued to the employee together with the improvement
required and the time scale. A member of the HR team will be present when the warning is given.
No final warning shall be issued without the express authority of the appropriate Director.
Following are some cases which would merit a Final written warning:
Being unfit to work due to the influence of alcohol or un- prescribed drugs.
Rude or offensive behavior to customers, external contacts or fellow employees.
Acts of sexual harassment.
Acts of racial harassment.
4. Stage four: Dismissal gross misconduct: In cases of gross misconduct, an employee may be
dismissed (without notice in writing). No employee will be immediate dismissed without prior
reference to the Chief Executive but in case hes not there then a employee will be suspended on
full pay for up to 5 days pending a decision. The decision will be confirmed to the employee in
writing together with details of the appeal procedure. Following are some cases which would
merit a Immediate Dismissal:
Theft on the Organizations premises; of the Organizations property or of any goods or
property.
Fraud resulting in the manipulation of the Organizations assets and materials.
Verbal abuse likely to provoke a breach between the Organization and its external
contacts; or likely to provoke a breach of normal office discipline and behavior.
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instated then the period of service will also be reinstated and the basic salary paid for the period
between dismissal and reinstatement.
Any appeal made out of the 7 days time limit will fail, unless there are exceptional reasons for the delayand the original decision stand.
ATTENDANCE MANAGEMENT PROGRAM
Our company would follow the following two steps in our Attendance Management Program:
1. Development of information/communication systems2. Taking appropriate group action
Development of information/communication systems: The first step of an effective attendance
management program is to identify specific areas, which are affecting attendance. The best way to find
which specific areas are affecting absenteeism is open communication between managers, supervisors and
employees. At times it is not really the physical realities of the work place that influence employees
willingness to work but their perceptions of these realities. It is important that employees are encouragedto voice their concerns so their perceptions of the work place are clear and can be dealt with. Regularly
scheduled department meetings are an excellent way to hear employee perceptions and concerns and also
to communicate organizational goals. When employees are encouraged to make a difference they are less
likely to withdraw their participation through absenteeism. Employees must not only be heard, they must
be answered in such ways as to assure them their input is worthwhile.
Taking appropriate group action: To realize the importance of Reduced Absenteeism, following pointsare kept in mind:
1 Develop ways for each and every employee to feel free to contribute ideas and suggestions
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In case of default by employer: 50% of the compensation amount plus interest to beIn case of default by employer: 50% of the compensation amount plus interest to be
paid.paid.
WORKMENSWORKMENS
COMPENSATIONCOMPENSATION
ACTACT
Period of delay in Payment of Contribution : Rate of Penalty on amount duePeriod of delay in Payment of Contribution : Rate of Penalty on amount due
Upto less than 2 months 5%Upto less than 2 months 5%2 to 4 months 10%2 to 4 months 10%
4 to 6 months 15%4 to 6 months 15%
6 months and above25%6 months and above25%
THE EMPLOYEESTHE EMPLOYEESSTATE INSURANCESTATE INSURANCE
ACTACT
For the purpose of avoiding any payment imprisonment for uptoFor the purpose of avoiding any payment imprisonment for upto six monthssix months or withor with
fine uptofine upto ten thousand rupeesten thousand rupees or both.or both.
An employer who contravenes any provisions of the Act imprisonment for not lessAn employer who contravenes any provisions of the Act imprisonment for not less
thanthan three monthsthree months which may extend towhich may extend to one yearone year or with fine which shall not be lessor with fine which shall not be less
thanthan ten thousand rupeesten thousand rupees but which may extend tobut which may extend to twenty thousand rupeestwenty thousand rupees or withor with
both.both.
THE PAYMENT OFTHE PAYMENT OF
GRATUITY ACT,GRATUITY ACT,
19721972
For contravention of the provisions of the Act or rules the penalty is imprisonmentFor contravention of the provisions of the Act or rules the penalty is imprisonment
uptoupto 6 months6 months or fine up toor fine up to Rs.1000Rs.1000, or both., or both.
For failure to comply with the directions or requisitions made the penalty isFor failure to comply with the directions or requisitions made the penalty is
imprisonment uptoimprisonment upto 6 months6 months or fine up toor fine up to Rs.1000Rs.1000, or both., or both.
THE PAYMENT OFTHE PAYMENT OF
BONUS ACTBONUS ACT
Imprisonment for a term which may extend to six months or with fine which mayImprisonment for a term which may extend to six months or with fine which may
extend to Rs. 500/- or with both.extend to Rs. 500/- or with both.THE MINIMUMTHE MINIMUM
WAGES ACT, 1948WAGES ACT, 1948
Fine not less than Rs. 1000 to Rs.5000. On subsequent conviction fine not less thanFine not less than Rs. 1000 to Rs.5000. On subsequent conviction fine not less than
Rs.5000 and upto Rs.10000.Rs.5000 and upto Rs.10000.
For late payment of wages: imprisonment for 1 to 6 months & fine of Rs.2000 to Rs.For late payment of wages: imprisonment for 1 to 6 months & fine of Rs.2000 to Rs.
15000 & additional fine upto Rs.100 per day.15000 & additional fine upto Rs.100 per day.
THE PAYMENT OFTHE PAYMENT OF
WAGES ACT, 1936WAGES ACT, 1936
Offences and penaltiesOffences and penaltiesACTACT
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Obstruction to the inspector and refusal to produce the register & records etc. shall beObstruction to the inspector and refusal to produce the register & records etc. shall be
punishable with imprisonment for a term which may extend topunishable with imprisonment for a term which may extend to 3 months3 months or with fine whichor with fine whichmay extend tomay extend to Rs. 500/-Rs. 500/- or both.or both.
Contraventions of provisions regarding employment of contract labor: imprisonment for uptoContraventions of provisions regarding employment of contract labor: imprisonment for upto3 months3 months or 3 fine uptoor 3 fine upto Rs. 100/- per dayRs. 100/- per day..
Contraventions of the provisions of the Act or Rules in which no other penalties elsewhereContraventions of the provisions of the Act or Rules in which no other penalties elsewhere
provided: imprisonment for a term which may extend toprovided: imprisonment for a term which may extend to 3 months3 months or with fine which mayor with fine which mayextend toextend to Rs. 1,000/- or 3 both.Rs. 1,000/- or 3 both.
THE CONTRACTTHE CONTRACT
LABOUR ACTLABOUR ACT
If the employer defaults in making payment of any contribution:If the employer defaults in making payment of any contribution:Period of Default Rate of Damages (%p.a.)Period of Default Rate of Damages (%p.a.)
Less than 2 months 17Less than 2 months 17
2 to 4 months 222 to 4 months 22
4 to 6 months 274 to 6 months 27
6 months and above 376 months and above 37
THE EMPLOYEES PFTHE EMPLOYEES PF& MISC. PROVISIONS& MISC. PROVISIONS
ACT, 1952ACT, 1952
Penalties for contravention of act by employer: For failure to pay maternity benefit asPenalties for contravention of act by employer: For failure to pay maternity benefit as
provided for under the Act, the penalty is imprisonment upto one year and fine upto Rs.provided for under the Act, the penalty is imprisonment upto one year and fine upto Rs.5000. The minimum being 3 months and Rs. 2000 respectively. For dismissal or discharge of5000. The minimum being 3 months and Rs. 2000 respectively. For dismissal or discharge of
a woman as provided for under the Act, the penalty is imprisonment upto one year and finea woman as provided for under the Act, the penalty is imprisonment upto one year and fine
upto Rs. 5000. The minimum being 3 months and Rs.2000 respectively.upto Rs. 5000. The minimum being 3 months and Rs.2000 respectively.
MATERNITYMATERNITY
BENEFIT ACTBENEFIT ACT
For making false entry in general statement of sending returns: fine upto Rs. 500. OnFor making false entry in general statement of sending returns: fine upto Rs. 500. Oncontinuing fault: Rs.5 per week not exceeding Rs.5.continuing fault: Rs.5 per week not exceeding Rs.5.
THE TRADE UNIONSTHE TRADE UNIONS
ACT, 1926ACT, 1926
Unfair labor practices: Imprisonment upto 6 months or fine upto Rs. 3000Unfair labor practices: Imprisonment upto 6 months or fine upto Rs. 3000
Closure without 60days notice: Imprisonment upto 6 months or fine upto Rs.5000Closure without 60days notice: Imprisonment upto 6 months or fine upto Rs.5000INDUSTRIALINDUSTRIAL
DISPUTES ACT,1947DISPUTES ACT,1947
Offences and penaltiesOffences and penaltiesACTACT