INDIAN LABOUR LAWS: BASIC WAGES FOR E.P.F.

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BASIC WAGES FOR E.P.F.

Can the employer and the employees agree to exclude a particular sum from the purview of basic wages to attract E.P.F. contribution?

Yes. The term 'basic wages' is defined in section 2(b) of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 meaning 'all emoluments which are earned by an employee while on duty or on leave with wages in accordance with the terms of the contract of emolument'. It clearly states 'in accordance' with the terms of the 'contract of employment.' Therefore, if in accordance with the terms of the contract of employment, the parties agree that a particular sum should be excluded, it cannot be held that it should be treated as 'basic wages’. In one case, terms of settlement entered into between the employer and the workman, a flat ad hoc allowance of Rs. 15 per month was extended to each workman. It was also provided that such allowance shall 'not be reckoned for purposes of provident fund, bonus, gratuity and E.S.I. etc. Therefore, such ad hoc allowance cannot be treated as falling within the term 'basic wages' for the purposes of the Act.

Reference

E.I.D. Parry (

India

) Ltd.vs. Regional Commissioner Employees Provident Fund, 1985 (66) FJR .205 (Madras HC); 1984 LLN 527.

ACTS AT GLANCE

The Contract Labour (Regulation and Abolition) Act, 1970

OBJECT OF THE ACT :

To regulate the employment of contract labor in certain establishments and to provide for its abolition in certain circumstances and for matters connected therewith.

APPLICABILITY :

Every establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months as contract labor.

Every contractor who employs or who employed on any day of the preceding twelve months 20 or more workmen. Sec. 1

REGISTRATION OF ESTABLISHMENT :

Principal employer employing 20 or more workers through the contractor or the contractor(s) on deposit of required fee in Form 1 Sec. 7

REVOCATION OF REGISTRATION:

When obtained by misrepresentation or suppression of material facts etc. after opportunity to the principal Employer. Sec. 9

PROHIBITION OF EMPLOYMENT OF CONTRACT LABOUR :

Only by the appropriate Government through issue of notification after consultation with the Board (and not Courts) can order the prohibition of employment of contract labor. Sec. 10

LICENSING OF CONTRACTOR:

Engaging 20 or more than 20 workers and on deposit of required fee in Form IV.

Valid for specified period.Sec.12, Rule 21

REVOCATION OR SUSPENSION & AMENDMENT OF LICENCES:

When obtained by misrepresentation or suppression of material facts.

Failure of the contractor to comply with the conditions or contravention of Act or the Rules. Sec. 14

WELFARE MEASURES TO BE TAKEN BY THE CONTRACTOR :

Contract labor either one hundred or more employed by a contractor for one or more canteens shall be provided and maintained.

First Aid facilities.

Number of rest-rooms as required under the Act.

Drinking water, latrines and washing facilities. Sec. 16 & 17

LAWS, AGREEMENT OR STANDING ORDERS INCONSISTENT WITH THE ACT-NOT PERMISSIBLE:

Unless the privileges in the contract between the parties or more favorable than the prescribed in the Act, such contract will be invalid and the workers will continue to get more favorable benefits. Sec. 20

LIABILITY OF PRINCIPAL EMPLOYER:

To ensure provision for canteen, restrooms, sufficient supply of drinking water, latrines and urinals, washing facilities.

Principal employer entitled to recover from the contractor for providing such amenities or to make deductions from amount payable. Sec. 20

REGISTERS OF CONTRACTORS:

Principal employer

• To maintain a register of contractor in respect of every establishment in Form XII.

• Contractor Rule 74

• To maintain register of workers for each registered establishment in Form XIII.

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

• To issue service certificate to every workman on his termination in Form XV. Rules 75, 76 and 77

MUSTER ROLL, WAGES REGISTER, DEDUCTION REGISTER AND OVERTIME REGISTER BY CONTRACTOR:

Every contractor shall :

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

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

Maintain a Register of Deductions for damage or loss, Register or Fines and Register of Avances in Form XX, from XXI and Form XXII respectively.

Maintain a Register of Overtime in Form XXIII.

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

Obtain the signature or thumb impression of the worker concerned against the entries relating to him on the Register of wages or Muster Roll-Cum-Wages Register.

When covered by Payment of Wages Act, register and records to be maintained under the rules

Muster Roll, Register of wages, Register of Deductions, Register of Overtime, Register of Fines, Register of Advances, Wage slip. Rule 79

To display an abstract of the act and Rules in English and Hindi and in the language spoken by the Majority of workers in such forms as may be approved by appropriate authority Rule 80

To display notices showing rates of wages, hours of work, wage period, dates of payment, names and addresses of the inspector and to send copy to the inspector and any change forwithwith Rule 81

THE EMPLOYEES’ P F AND MISCELLANEOUS PROVISIONS ACT, 1952

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.

APPLICABILITY :

• Every establishment which is factory engaged in any industry specified in Schedule 1 and in which 20 or more persons 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 voluntarily u/s 1(4) of the Act.
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PAYMENT OF CONTRIBUTION :

• The employer shall pay the contribution payable to the EPF, DLI and Employees’ Pension Fund in respect of the member of the Employees’ Pension Fund employed by him directly by or through a contractor.

• It shall be the responsibility of the principal employer to pay the contributions payable to the EPF, DLI and Employees’ Pension Fund by himself in respect of the employees directly employed by him and also in respect of the employees directly employed by him and also in respect of the employees employed by or through a contractor.

BENEFITS :

• Employees covered enjoy a benefit of Social Security in the form of an unattachable and unwithdrawable (except in severely 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 payable normally on retirement or death. Other Benefits include Employees’ Pension Scheme and Employees’ Deposit Linked Insurance Scheme.

CLARIFICATION ABOUT CONTRIBUTION:

• After revision in wage ceiling from Rs.5000 to Rs.6500 w.e.f. 1.6.2001 per month, the government will continue to contribute 1.16% upto the actual wage of maximum Rs.6500 per month towards Employees’ Pension Scheme.

The employer’s share in the Pension Scheme will be Rs.541 w.e.f. 1.6.2001.

• Under Employees’ Deposit-Linked Insurance Scheme the contribution @ 0.50% is required to be paid upto a maximum limit of Rs.6500.

The employer also will pay administrative charges @ 0.01% on maximum limit of Rs.6500
whereas an exempted establishment will pay inspection charges @ 0.005% on the total wages paid.

Notes:

The above clarification is given by taking wages upto a maximum of Rs.6500 towards wage (basic+DA).

Since an excluded employee i.e. drawing wages more than Rs.6500 can also become member of the Fund and the Schemes on joint request and if, for instance, such an employee is getting Rs.10, 000 per month, his share towards provident fund contribution will be Rs.1200 e.g. 12% and employer’s share towards provident fund contribution will be Rs.659 and Rs.541 towards Employees’ Pension Fund.

DAMAGES:

• Less than 2 months ….@ 17% per annum

• Two months and above but less than upto four months ….@22% per annum

• Four months and above but less than upto six months ….@ 27% per annum

• Six months and above

PENAL PROVISION :

Liable to be arrested without warrants being a cognizable offence.

Defaults by employer in paying contributions or inspection/administrative charges attract imprisonment upto 3 years and fines upto Rs.10, 000 (S.14). For any retrospective application, all dues have to be paid by employer with damages upto 100% of arrears.

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The Employees State Insurance Act, 1948

APPLICABILITY OF THE ACT & SCHEME:

 Is extended in area-wise to factories using power and employing 10 or more persons and to non-power using manufacturing units and establish-ments employing 20 or more person upto Rs.15,000/- per month w.e.f. 01.04.10. It has also been extend-ed upon shops, hotels, restaurants, roads motor transport undertakings, equip-ment maintenance staff in the hospitals.

COVERAGE OF EMPLOYEES:

 Drawing wages Upto Rs.15,000/- per month Engaged either directly or thru’ contractor

RATE OF CONTRIBUTION OF THE WAGES:

 Employers’ 4.75%

 Employees’ 1.75%

MANNER AND TIME LIMIT FOR MAKING PAYMENT OF CONTRIBUTION:

 The total amount of contribution (employee’s share and employer’s share) is to be deposited with the authorized bank through a challan in the prescribed form in quadruplicate on ore before 21st of month following the calendar month in which the wages fall due.

BENEFITS TO THE EMPLOYEES UNDER THE ACT:

 Medical Benefit
 Sickness Benefit(SB)
 Maternity Benefit(MB)
 Disablement Benefit
 Dependants’ Benefit(DB)
 Funeral Expenses

 In addition, the scheme also provides some other need based benefits to insured workers.

WAGES FOR ESI CONTRIBUTIONS:

 Registers/files to be maintained by the employers

CONTRIBUTION PERIOD:

 If the person joined insurance employment for the first time, say on 5th January, his first contribution period will be from 5th January to 31st March and his corresponding first benefit will be from 5th October to 31st December.

TO BE DEEMED AS WAGES:

• Basic pay
• Dearness allowance
• House rent allowance
• City compensatory allowance
• Overtime wages (but not to be taken into account for determining the coverage of an employee)
• Payment for day of rest
• Production incentive
• Bonus other than statutory bonus
• Night shift allowance
• Heat, Gas & Dust allowance
• Payment for unsubstituted holidays
• Meal/food allowance
• Suspension allowance
• Lay off compensation
• Children education allowance (not being reimbursement for actual tuition fee)

NOT TO BE DEEMED AS WAGES:

• Contribution paid by kthe employer to any pension/provident fund or under ESI Act.
• Sum paid to defray special expenses entailed by the nature of employment – Daily allowance paid for the period spent on tour.
• Gratuity payable on discharge.
• Pay in lieu of notice of retrenchment compensation
• Benefits paid under the ESI Scheme.
• Encashment of leave
• Payment of Inam which does not form part of the terms of employment.
• Washing allowance for livery
• Conveyance Amount towards reimbursement for duty related journey

PENALTIES :

 Different punishment have been prescribed for different types of offences in terms of Section 85: (I) (six months imprisonment and fine Rs.5000), (ii) (one year imprisonment and fine), and 85-A: (five years imprisonment and not less to 2 years) and 85-C (2) of the ESI Act, which are self explanatory. Besides these provisions, action also can be taken under section 406 of the IPC in cases where an employer deducts contributions from the wages of his employees but does not pay the same to the corporation which amounts to criminal breach of trust.

THE PAYMENT OF GRATUITY ACT, 1972

APPLICABILITY (SEC. 1):

 Every factory, mine, oil field, plantation, port, railways, company, shop, establishment or educational institutions employing 10 or more employees

CALCULATION PIECE-RATED EMPLOYEE (SEC. 1):

 @ 15 days wages for every completed year on an average of 3 months’ wages

CALCULATION SEASONAL EMPLOYEE (SEC. 1):

 @ 7 days’ wages for every completed year of service.

WAGES FOR CALCULATION (SEC. 2 (S)):

 @ 15 days’ wages for every completed year as if the month comprises of 26 days at the last drawn wages.

EMPLOYEE ENTITLEMENT (SEC. 2 (E)):

 All employees irrespective of status or salary

 On completion of five years’ service except in case of death or disablement

QUALIFYING PERIOD (SEC. 2 (E)):

 On rendering of 5 years’ service, either termination, resignation or retirement.

DISPLAY OF NOTICE (RULE 4):

 On conspicuous place at the main entrance in English language or the language understood by majority of employees of the factory, etc.

NOMINATION (SEC. 6 & RULE 6):

 To be obtained by employer after expiry of one year’s service, in Form ‘F’

MAXIMUM CEILING (SEC. 4(3)):

Rs.10,00,000

MODE OF PAYMENT (RULE 9):

 Cash or, if so desired, by Bank Draft or Cheque

RECOVERY OF GRATUITY (SEC. 8, RULE 8):

 To apply within 30 days in Form I when not paid within 30 days

FORFEITURE OF GRATUITY (SEC.4 (6)):

 On termination of an employee for moral turpitude or riotous or disorderly behaviour.

 Wholly or partially for wilfully causing loss, destruction of property etc. Cash or, if so desired, by Bank Draft or Cheque

PROTECTION OF GRATUITY (SEC.13):

 Can’t be attached in execution of any decree

PENALTIES (RULE 9):

 Imprisonment for 6 months or fine upto Rs.10,000 for avoiding to make payment by making false state-ment or representa -tion.

 Imprisonment not less than 3 months and upto one year with fine on default in comply-ing with the provisions of Act or Rules.

The Employee’s Compensation Act, 1923

APPLICABILITY :

 All over Sec.1.

COVERAGE OF WORKMEN:

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

EMPLOYER’S LIABILITY TO PAY COMPENSATION TO A WORKMAN:

 On death or personal injury resulting into total or partial disablement or occupational disease caused to a workman arising out of and during the course of employment. Sec.3

AMOUNT OF COMPENSATION:

• Where death of a workman results from the injury

• An amount equal to fifty per cent of the monthly wages of the deceased workman multiplied by the relevant factor on an amount of eighty thousand rupees, whichever is more.

• Where permanent total disablement results from the injury.

• An amount equal to sixty per cent of the monthly wages of the injured workman multiplied by the relevant factor or an amount of ninety thousand rupees, whichever is more

Procedure for calculation:

Higher the age – Lower the compensation

• Relevant factor specified in second column of Schedule IV giving slabs depending upon the age of the concerned workman.

• Example: In case of death.

• Wages Rs.3000 PM ● Age 23 years

• Factor as schedule IV Rs.19.95

• Amount of compensation Rs.329935

• In case of total disablement Rs.395910.

Sec. 4

WHEN AN EMPLOYEE IS NOT LIABLE FOR COMPENSATION:

• In respect of any injury which does result in the total or partial disablement of the workman for a period exceeding three days.

• In respect of any injury, not resulting in death or permanent total disablement caused by an accident which is directly attributable to-

• The workman having been at the time thereof under the influence of drink or drugs, or

• 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, or

• Willful removal or disregard by the workman of any safety guard or other device which he knew to have been provided for the purpose of securing the safety of workman.

Sec.3 (a) & (b)

WAGES:

• When the monthly wages are more than Rs.4000 per month it will be deemed Rs.4000. Sec.4 Exh.b

NOTICE OF ACCIDENT

As soon as Practicable, Sec. 10

REPORT OF ACCIDENT, RULE 11 FORM EE

. Report of fatal Accident and Serious Injury within 7 days to the Commissioner (not application when ESI Act applies). Sec.10B

BAR UPON CONTRACTING OUT:

• Any workman relinquishing his right for personal injury not permissible. Sec.14

PENALTY:

• In case of default by employer

• Deposit of Compensation

• 50% of the compensation amount + interest to be paid to the workman or his dependents as the case may be.

• Within one month with the Compensation Commissioner. Sec.4A

THE MINIMUM WAGES ACT, 1948

OBJECT OF THE ACT:

To provide for fixing minimum rates of wages in certain employments

MINIMUM RATES OF WAGES:

Such as Basic rates of wages etc. Variable DA and Value of other concessions etc. Sec. 4

FIXATION OF MINIMUM RATES OF WAGES:

•The appropriate government to fix minimum rates of wages. The employees employed in para 1 or B of Schedule either at 2 or either part of notification u/s 27.

•To make review at such intervals not exceeding five years the minimum rates or so fixed and revised the minimum rates.

GOVERNMENT CAN ALSO FIX MINIMUM WAGES FOR:

•Time work
•Piece work at piece rate
•Piece work for the purpose of securing to such employees on a time work basis
•Overtime work done by employees for piece work or time rate workers.

PROCEDURE FOR FIXING AND REVISING MINIMUM RATES OF WAGES, Sec. 5:

Appointing Committee issue of Notification etc.

OVERTIME, Sec. 5:

To be fixed by the hour, by the day or by such a longer wage-period works on any day in excess of the number of hours constituting normal working day.

Payment for every hour or for part of an hour so worked in excess at the overtime rate double of the ordinary rate of (1½ times or for agriculture labour)

COMPOSITION OF COMMITTEE, Sec. 9:

Representation of employer and employee in schedule employer in equal number and independent persons not exceeding 1/3rd or its total number one such person to be appointed by the Chairman.

PAYMENT OF MINIMUM RATES OF WAGES, Sec.12 :

Employer to pay to every employee engated in schedule employment at a rate not less than minimum rates of wages as fixed by Notification by not making deduction other than prescribed.

WAGES OF WORKERS WHO WORKS FOR LESS THAN NORMAL WORKING DAYS, Sec.15:

Save as otherwise hereinafter provided, be entitled to receive wages in respect of work done by him on that day as if he had worked for a full normal working day.

WAGES FOR TWO CLASS OF WORK, Sec. 16 :

Where an employee does two or more classes of work to each of which a different minimum rate of wages is applicable, wages at not less than the minimum rate in respect of each such class.

CLAIMS BY EMPLOYEES, Sec. 16:

•To be filed by before authority constituted under the Act within 6 months.
•Compensation upto 10 times on under or non-payment of wages

MINIMUM TIME RATE WAGES FOR PIECE WORK, SEC. 17:

Not less than minimum rates wages as fixed

MAINTENANCE OF REGISTERS AND RECORDS, SEC. 18:

•Register of Fines – Form I Rule 21(4)
•Annual Returns – Form III Rule 21 (4-A)
•Register for Overtime – Form IV Rule 25
•Register of Wages–Form X, Wages slip–Form XI, Muster Roll–Form V Rule 26
•Representation of register – for three year Rule 26-A

PENALITIES Sec. 20

Offence:
•For paying less than minimum rates of wages
•For contravention of any provisions pertaining to fixing hours for normal working day etc.

Punishment:

•Imprisonment upto 6 months or with fine upto Rs.500/-
•Imprisonment upto 6 months or with fine upto Rs.500/-

Industrial Employment (Standing Orders) Act, 1946

APPLICABILITY OF THE ACT :

Every industrial establishment wherein 100 or more (in many States like AP it is 50 or more).

Any industry covered by Bombay Industrial Relations Act, 1946.

Industrial establishment covered by M.P.

Industrial Employment (Standing Orders) Act, 1961. Sec. 1

MATTERS TO BE PROVIDED IN STANDING ORDERS:

Classification of workmen, e.g., whether permanent, temporary, apprentices, probationers, or badlis.

Manner of intimating to workmen periods and hours of work, holidays, pay-days and wage rates.

Shift working.

Attendance and late coming.

Conditions of, procedure in applying for, and the authority which may grant, leave and holidays.

Requirement to enter premises by certain gates, and liability to search.

Closing and re-opening of sections of the industrial establishments, and temporary stoppages of work and the right and liabilities of the employer and workmen arising therefrom.

Termination of employment, and the notice thereof to be given by employer and workmen.

Suspension or dismissal for misconduct, and acts or omissions which constitute misconduct.

Means of redressal for workmen against unfair treatment or wrongful exactions by the employer or his agents or servants.

Additional Matters

Service Record – Matters relating to service card, token tickets, certification of service, change of residential address of workers and record of age Confirmation Age of retirement Transfer Medical aid in case of Accident Medical Examination Secrecy Exclusive service. Secs.2 (g), 3(2) and Rule 2A

CONDITIONS FOR CERTIFICATION OF STANDING ORDERS :

Every matter to be set out as per Schedule and Rule 2A.

The standing orders to be in conformity with the provisions of the Act.

PROCEDURE FOR CERTIFICATION OF STANDING ORDERS :

Certifying Officer to forward a copy of draft standing orders to the trade union or in the absence of union, to the workmen of the industry. The trade union or the other representatives, as the case may be, are to be heard.Sec.5

DATE OF OPERATION OF STANDING ORDERS :

On the date of expiry of 30 days from certification or on the expiry of 7 days from authentication of Standing Orders. Sec. 7

POSTING OF STANDING ORDERS :

The text of the standing orders as finally certified shall prominently be posted in English or in the language understood by majority of workmen on special board at or near the entrance for majority of workers. Sec. 9

SUBMISSIONS OF DRAFT STANDING ORDERS :

Within six months from the date when the Act becomes applicable to an industrial establishment. Five copies of the draft Standing Orders are to be submitted to the Certifying Officer under the Act. Sec.3

TEMPORARY APPLICATION OF MODEL STANDING ORDERS :

Temporary application of mod standing orders shall be deemed to be adopted till the standing orders as submitted are certified. Sec.12-A

PAYMENT OF SUBSISTENCE ALLOWANCE TO THE SUSPENDED WORKERS :

At the rate of fifty per cent, of the wages which the workman was entitled to immediately proceeding the date of such suspension, for the first ninety days of suspension.

At the rate of seventy-five percent of such wages for the remaining period of suspension if the delay in the completion of disciplinary proceedings against such workman is not directly attributable to the conduct such workman. Sec.10-A

PENALTIES

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

Fine of Rs.100 on contravention and on continuation of offence Rs.25 for every day.

THE INDUSTRIAL DISPUTES ACT, 1947

OBJECT OF THE ACT:

• Provisions for investigation and settlement of industrial disputes and for certain other purposes.

IMPORTANT CLARIFICATIONS:

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

• Works Committee–Joint Committee with equal number of employers and employees’ representatives for discussion of certain common problems. Sec.3

• Conciliation–is an attempt by a third party in helping to settle the disputes Sec.4

• Adjudication – Labour Court, Industrial Tribunal or National Tribunal to hear and decide the dispute. Secs.7, 7A & 7B

POWER OF LABOUR COURT TO GIVE APPROPRIATE RELIEF:

Labour Court / Industrial Tribunal can Modify the punishment of dismissal or discharge of workmen and give appropriate relief including reinstatement. Sec.11A

RIGHT OF A WORKMAN DURING PENDENCY OF PROCEEDINGS IN HIGH COURT:

Employer to pay last drawn wages to reinstated workman when proceedings challenging the award of his reinstatement are pending in the higher Courts. Sec.17B

PERSONS BOUND BY SETTLEMENT:

• When in the course of conciliation proceedings etc., all persons working or joining subsequently.

• Otherwise than in course of settlement upon the parties to the settlement. Sec.18

PERIOD OF OPERATION OF SETTLEMENTS AND AWARDS:

• A settlement for a period as agreed by the parties, or

• Period of six months on signing of settlement.

• An award for one year after its enforcement. Sec.19

NOTICE OF CHANGE:

21 days by an employer to workmen about changing the conditions of service as provided in Ivth Schedule. Sec.9A

PRIOR PERMISSION FOR LAY OFF:

When there are more than 100 workmen during proceeding 12 months. Sec.25-M

LAY OFF COMPENSATION:

Payment of wages except for intervening weekly holiday compensation 50% of total or basic wages and DA for a period of lay off upto maximum 45 days in a year. Sec.25-C

Prohibition of Strikes & Lock Outs

• Without giving to the employer notice of strike, as hereinafter provided, within six weeks before striking.

• Within fourteen days of giving such notice.

• Before the expiry of the date of strike specified in any such notice as aforesaid.

• During the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings.

• During the pendency of conciliation proceedings before a Board and seven days after the conclusion of such proceedings.

• During the pendency of proceedings before a Labour Court, Tribunal or National

• Tribunal and two months, after the conclusion of such proceedings.

• During the pendency of arbitration proceedings before an arbitrator and two months after the conclusion of such proceedings, where a notification has been issued under Sub-Section(3A) of section 10A

• During any period in which a settlement or award is in operation, in respect of any of the matters covered by the settlement or award. Secs.22&23

PRIOR PERMISSION BY THE GOVERNMENT FOR RETRENCHMENT:

• When there are more than 100 (in UP 300 or more) workmen during preceding 12 months.

• Three months’ notice or wages thereto.

• Form QA

• Compensation @ 15 days’ wages. Sec. 25-N

CONDITIONS OF SERVICE ETC. TO REMAIN UNCHANGED UNDER CERTAIN CIRCUMSTANCES DURING PENDENCY OF PROCEEDINGS:

• Not to alter to the prejudice of workmen concerned the condition of service.

• To seek Express permission of the concerned authority by paying one month’s wages on dismissal, discharge or punish a protected workman connected with the dispute.

• To seek approval of the authority by paying one month’s wages before altering condition of service, dismissing or discharging or punishing a workman. Sec.33

PROHIBITION OF UNFAIR LABOUR PRACTICE EITHER BY EMPLOYER OR WORKMAN OR A TRADE UNION AS STIPULATED IN FIFTH SCHEDULE:

Both the employer and the Union can be punished. Sec.25-T

RETRENCHMENT OF WORKMEN COMPENSATION & CONDITIONS:

• Workman must have worked for 240 days.

• Retrenchment compensation @ 15 days’ wages for every completed year to be calculated at last drawn wages

• One month’s notice or wages in lieu thereof.

• Reasons for retrenchment

• Complying with principle of ‘last come first go’.

• Sending Form P to Labour Authorities.

CLOSURE OF AN UNDERTAKING:

60 days’ notice to the labour authorities for intended closure in Form QA. Sec.25FFA

Prior permission atleast 90 days before in Form O by the Government when there are 100 ore more workmen during preceding 12 months (in UP 300 or more workmen) Sec.25-O

CONDITIONS OF SERVICE ETC. TO REMAIN UNCHANGED UNDER CERTAIN CIRCUMSTANCES DURING PENDENCY OF PROCEEDINGS:

• Not to alter to the prejudice of workmen concerned the condition of service.

• To seek Express permission of the concerned authority by paying one month’s wages on dismissal, discharge or punish a protected workman connected with the dispute.

• To seek approval of the authority by paying one month’s wages before altering condition of service, dismissing or discharging or punishing a workman. Sec.33

PENALTIES OFFENCE :

Committing unfair labour practices

Illegal strike and lock-ourts

Instigation etc. for illegal strike or lock-outs.

Giving financial aid to illegal strikes and lock-outs.

Breach of settlement or award

Disclosing confidential information pertaining to Sec.21

Closure without 60 days’ notice under Sec.25 FFA

Contravention of Sec.33 pertaining to change of conditions of service during pendency of dispute etc.

When no penally is provided for contravention

PUNISHMENT:

Imprisonment of upto 6 months or with fine upto Rs.3,000

. Imprisonment upto one month or with fine upto Rs.50 (Rs.1000 for lock-out) or with both.

Imprisonment upto 6 months or with fine upto Rs.1, 000

Imprisonment for 6 months or with fine upto Rs.1, 000

Imprisonment upto 6 months or with fine.On continuity of offence fine uptoRs.200 per day

Imprisonment upto 6 months or with fine upto Rs.1, 000

Imprisonment upto 6 months or with fine upto Rs.5, 000

Imprisonment upto 6 months or fine upto Rs.1, 000. Fine upto Rs.100

THE MATERNITY BENEFIT ACT, 1961

OBJECT OF THE ACT:

To protect the dignity of motherhood and the dignity of a new person’s birth by providing for the full and healthy maintenance of the woman and her child at this important time when she is not working.

COVERAGE OF THE ACT:

Upon all women employees either employed directly or through contractor except domestic women employees employed in mines, factories, plantations and also in other establishments if the State Government so decides. Therefore, if the State Government decides to apply this Act to women employees in shops and commercial establishments, they also will get the benefit of this Act. Bihar, Punjab Haryana, West Bengal, U.P., Orissa and Andhra have done so.

CONDITIONS FOR ELIGIBILITY OF BENEFITS :

Women indulging temporary of unmarried are eligible for maternity benefit when she is expecting a child and has worked for her employer for at least 80 days in the 12 months immediately proceeding the date of her expected delivery

CASH BENEFITS:

• Leave with average pay for six weeks before the delivery.
• Leave with average pay for six weeks after the delivery.
• A medical bonus of Rs.25 if the employer does not provide free medical care to the woman.
• An additional leave with pay up to one month if the woman shows proof of illness due to the pregnancy, delivery, miscarriage, or premature birth.
• In case of miscarriage, six weeks leave with average pay from the date of miscarriage.

NON CASH BENEFITS/PRIVILEGE:

• Light work for ten weeks (six weeks plus one month) before the date of her expected delivery, if she asks for it.

• Two nursing breaks in the course of her daily work until the child is 15 months old.

• No discharge or dismissal while she is on maternity leave.

• No change to her disadvantage in any of the conditions of her employment while on maternity leave.

• Pregnant women discharged or dismissed may still claim maternity benefit from the employer.

Exception: Women dismissed for gross misconduct lose their right under the Act for Maternity Benefit

CONDITIONS FOR ELIGIBILITY OF BENEFITS, SEC. 5.:

• Ten weeks before the date of her expected delivery, she may ask the employer to give her light work for a month. At that time she should produce a certificate that she is pregnant.

• She should give written notice to the employer about seven weeks before the date of her delivery that she will be absent for six weeks before and after her delivery. She should also name the person to whom payment will be made in case she can not take it herself.

• She should take the payment for the first six weeks before she goes on leave.

• She will get payment for the six weeks after child-birth within 48 hours of giving proof that she has had a child.

• She will be entitled to two nursing breaks of fifteen minutes each in the course of her daily work till her child is fifteen months old.

• Her employer cannot discharge her or change her conditions of service while she is on maternity leave.

LEAVE FOR MISCARRIAGE & TUBECTOMY OPERATION:

• Leave with wages at the rate of maternity benefit, for a period of six weeks immediately following the day of her miscarriage or her medical termination of pregnancy.

• Entitled to leave with wages at the rate of maternity benefit for a period of two weeks immediately following the day of her tubectomy operation.

LEAVE FOR ILLNESS ARISING OUT OF PREGNANCY ETC. ETC,. Sec. 10

A woman suffering from illness arising our of pregnancy, delivery, premature birth of child (Miscarriage, medical termination of pregnancy or tubectomy operation) be entitled, in addition to the period of absence allowed to her leave with wages at the rate of maternity benefit for a maximum period of one month.

PROHIBITION OF DISMISSAL DURING ABSENCE OF PREGNANCY:

• Discharge or dismissal of a woman employed during or on account of such absence or to give notice or discharge or dismissal on such a day that the notice will expire during such absence or to very her disadvantage.

• Discharge or dismissal during or on account of such absence or to give notice of discharge or dismissal on such a day that the notice will expire during such absence, or to vary to her disadvantage any of the conditions of her service.

• At the time during her pregnancy, if the woman but for such discharge or dismissal would have been entitled to maternity benefit or medical bonus, etc.

• Not barred in case of dismissal for cross misconduct.

FAILURE TO DISPLAY EXTRACT OF ACT:

Imprisonment may extend to one year or fine.

FORFEITURE OF MATERNITY BENEFIT SEC. 18:

If permitted by her employer to absent herself under the provisions of section 6 for any period during such authorized absence, she shall forfeit her claim to the maternity benefit for such period.

For discharging or dismissing such a woman during or on account of her absence from work, the employer shall be punishable with imprisonment which shall not be less than 3 months, but it will extend to one year and will find, but not exceeding Rs.5, 000.