7/21/2019 Public System http://slidepdf.com/reader/full/public-system 1/29 1. 1. What’s Labour Law ??? Labour Law is the “Body of Laws, Administrative Rulings, !re"edents# whi"h address the Relationshi$ between among “%m$loyers, %m$loyees Labour &rgani'ations#, often dealing with issues of !ubli" Law. (he terms Labour Laws %m$loyment Laws, are often inter"hanged in the usage. (his has led to a big "onfusion as to their meanings. Labour Laws are di)erent from %m$loyment laws whi"h deal only with em$loyment "ontra"ts and issues regarding em$loyment and wor*$la"e dis"rimination other !rivate Law issues. “Labour Laws# harmoni'e many angles of the Relationshi$ between “(rade +nions, %m$loyers %m$loyees#. n some "ountries -li*e anada/, %m$loyment Laws Related to +nionised wor*$la"es are di)erent from those relating to $arti"ular ndividuals. n most "ountries however, no su"h distin"tion is made. (he “0inal oal# of Labour Laws is to bring both “%m$loyer %m$loyee# on the same Level, thereby mitigating the di)eren"es between the two ever2 warring grou$s. 3. 3. &rigins of Labour Laws “Labour Laws# emerged when the %m$loyers tried to Restri"t the !owers of Wor*er’s &rganisations *ee$ Labour osts Low. (he Wor*ers began 4emanding better onditions the Right to &rganise so as, to im$rove their 5tandard of Living. %m$loyer’s "osts in"reased due to wor*ers demand. (his led to a "haoti" situation whi"h re6uired the ntervention of overnment. n order to $ut an end, the “overnment# ena"ted many Labour Laws in the ountry. (he 7istory of Labour Legislation in ndia "an be tra"ed ba"* to the 7istory of British olonialism. n the beginning it was di8"ult to get enough Regular ndian wor*ers to run “British
1. 1. What’s Labour Law ??? Labour Law is the “Body ofLaws, Administrative Rulings, !re"edents# whi"haddress the Relationshi$ between among“%m$loyers, %m$loyees Labour &rgani'ations#,
often dealing with issues of !ubli" Law. (he termsLabour Laws %m$loyment Laws, are ofteninter"hanged in the usage. (his has led to a big"onfusion as to their meanings. Labour Laws aredi)erent from %m$loyment laws whi"h deal only withem$loyment "ontra"ts and issues regardingem$loyment and wor*$la"e dis"rimination other!rivate Law issues. “Labour Laws# harmoni'e many
angles of the Relationshi$ between “(rade +nions,%m$loyers %m$loyees#. n some "ountries -li*eanada/, %m$loyment Laws Related to +nionisedwor*$la"es are di)erent from those relating to$arti"ular ndividuals. n most "ountries however, nosu"h distin"tion is made. (he “0inal oal# of LabourLaws is to bring both “%m$loyer %m$loyee# on thesame Level, thereby mitigating the di)eren"es
between the two ever2 warring grou$s.3. 3. &rigins of Labour Laws “Labour Laws# emergedwhen the %m$loyers tried to Restri"t the !owers ofWor*er’s &rganisations *ee$ Labour osts Low. (heWor*ers began 4emanding better onditions theRight to &rganise so as, to im$rove their 5tandard ofLiving. %m$loyer’s "osts in"reased due to wor*ersdemand. (his led to a "haoti" situation whi"h
re6uired the ntervention of overnment. n order to$ut an end, the “overnment# ena"ted many LabourLaws in the ountry. (he 7istory of Labour Legislationin ndia "an be tra"ed ba"* to the 7istory of Britisholonialism. n the beginning it was di8"ult to getenough Regular ndian wor*ers to run “British
%stablishments# hen"e Laws for "hartering wor*ersbe"ame ne"essary. (his was obviously LabourLegislation in order to $rote"t the interests of Britishem$loyers. (he “Factories Act# was 9rst introdu"ed
in 1883 be"ause of the $ressure brought on theBritish !arliament by the te:tile moguls of;an"hester and Lan"ashire. (hus we Re"eived the0irst 5ti$ulation of %ight -<=/ 7ours of wor*, theabolition of hild Labour, the Restri"tion of Womenin >ight em$loyment, and the introdu"tion of“&vertime Wages# for wor* beyond %ight 7ours.“ndia# has arious Labour Laws, su"h as Resolution
@. @. ndividual Labour Law “ontra"t of %m$loyment At2will %m$loyement# (he Basi" 0eature of “LabourLaw# in almost %very ountry is that the “Rights &bligations# of the “%m$loyee %m$loyer# between&ne2another are mediated through the “ontra"t of
%m$loyment# between them. (his has been the "asesin"e the "olla$se of feudalism is the "ore reality of ;odern %"onomi" Relations. ;any terms "onditionsof the "ontra"t are however im$lied by Legislation orommon Law, in su"h a way as to restri"t thefreedom of $eo$le to agree to "ertain things to$rote"t em$loyees, and fa"ilitate a uid Labour;ar*et. n the “+nited 5tate of Ameri"a# for e:am$le,
;aority of 5tate Laws allow for %m$loyment to be“At Will“ meaning the %m$loyer "an (erminate an%m$loyee from a !osition for any Reason, so long asthe Reason is not an “llegal Reason#, in"luding a (ermination in iolation of !ubli" !oli"y. n ;anyountries it’s %m$loyer’s 4uty to !rovide Written
!arti"ulars -ontra"t/ of %m$loyment to an%m$loyee. (his aims to allow the %m$loyee to *now"on"retely what to e:$e"t and is e:$e"tedC in termsof “Wages, 7oliday Rights, >oti"e in the event of
4ismissal, Dob 4es"ri$tion# and so on. An %m$loyeemay not for instan"e agree to a "ontra"t whi"h allowsan %m$loyer to dismiss them unfairly.
E. E. Labour !oli"y in ndia “Labour !oli"y in ndia# hasbeen evolving in res$onse to s$e"i9" needs of thesituation to suit re6uirements of $lanned “%"onomi"4evelo$ment 5o"ial Dusti"e# has two2fold&be"tives, vi'., Labour !oli"ies are devised to
maintain %"onomi" 4evelo$ment, 5o"ial Dusti"e,ndustrial 7armony Welfare of Labour in the"ountry. 7ighlights of Labour !oli"yF2 reative;easures to attra"t !ubli" !rivate nvestment.reating >ew Dobs with >ew 5o"ial 5e"urity 5"hemesfor wor*ers. +ni9ed and Bene9"ial ;anagement offunds of Welfare Boards. ;odel %m$loyee G %m$loyerRelationshi$s with Long (erm 5ettlements. ital
ndustries %stablishments de"lared as “!ubli"+tilities#. 5$e"ial "on"iliation me"hanism for $roe"tswith investments of Rs. 1H< "r or more. ndustrialRelations "ommittees in more se"tors. Labour LawReforms with (imes. %m$owered body of e:$erts tosuggest re6uired "hanges. 5tatutory amendments fore:$editing streamlining the me"hanism of Labour Dudi"iary. %8"ient fun"tioning of Labour 4e$artment.
;ore labour se"tors under ;in. Wages A"t. ;odern;edi"al 0a"ilities for wor*ers. Rehabilitation $a"*agesfor dis$la"ed wor*ers. Restru"turing in fun"tioning of%m$loyment %:"hanges with morden (e"hnology.Revam$ing of urri"ulum ourse "ontent in
J. J. (he A$$renti"es A"t 2 1IJ1 &be"t of the A"t F2 (he;ain &be"tives of A$$renti"es A"t, 1IJ1 is
“!romotion of >ew ;an$ower at s*ills#. m$rovement Re9nement of &ld 5*ills through (heoreti"al !ra"ti"al (raining in number of “(rades &""u$ation#. (he 5"heme is also e:tended to%ngineers 4i$loma 7olders. n ndia the“A$$renti"es A"t# "ame into for"e in 1IJ1 and wasamended by the A"t E1 of 1I=J. t’s also a “5tatutory&bligation# on the $art of every %m$loyer "overed
under the A"t. A$$li"ability of the A"t F2 (he“A$$renti"es A"t# a$$lies to all Areas ndustries asnoti9ed by entral overnment. M5e"21-E/N. (he A"te:tends to “A"ross all over the ndia#. t shall "omeinto for"e on su"h date as the entral overnmentmay, by noti9"ation in the &8"ial a'ette, a$$ointCand di)erent dates may be a$$ointed for di)erent5tates. (he A"t shall also “>ot A$$ly# to any Area or
ndustry as $er the noti9"ation by the ovt.K. K. uidelines O A$$renti"e A"t “A$$renti"e# means a!erson who is undergoing “A$$renti"eshi$ (raining#in $ursuan"e of a ontra"t of A$$renti"eshi$.“A$$renti"eshi$ (raining# means a ourse of (rainingin any ndustry or %stablishment undergone in
$ursuan"e of a ontra"t of A$$renti"eshi$ under$res"ribed (erms onditions whi"h may bedi)erent for di)erent "ategories of A$$renti"es.%ligibility 4uities of A$$renti"eF Puali9"ationsF A
!erson shall not be Puali9ed for being engaged as anA$$renti"e to undergo A$$renti"eshi$ (raining in anydesignated trade, unless he or she, (he “andidate#is not Less than 0ourteen -1E/ Qrs of age, has to5atis9es su"h 5tandards of “%du"ation !hysi"al0itness# as may be $res"ribed. 4uration of (rainingF24uration of A$$renti"eshi$ may be from “<J ;ths to<E Qrs# de$ending on the (rade, as $res"ribed in
Rules. (he “A$$renti"e# has to Learn his (radeon"ientiously 4iligently. Also attend !ra"ti"al (heoreti"al "lasess Regularly. 7as to "arry out allLawful &rders of %m$loyer with ontra"tual&bligations. (he A$$renti"e has to wor* E3 to E=7ours in a wee*, but not allowed to wor* between 1<$m to <J am unless a$$roved by “A$$renti"eshi$Advisor#.
=. =. uidelines O A$$renti"e A"t 4uties of %m$loyerunder the A"tF ontra"t with A$$renti"e F2 (heA$$renti"e a$$ointed has to e:e"ute a ontra"t ofA$$renti"eshi$ with the %m$loyer. (he ontra"t hasto be Registered with A$$renti"eshi$ Adviser. fA$$renti"e is ;inor, Agreement should be signed byhis uardian. M5e" E-1/N . Leaves for A$$renti"e F2 AnA$$renti"e is entitled to asual Leave of 13 days,
;edi"al Leave of 1H days %:traordinary Leave of1< days in a year. (he “%m$loyer# has to $rovideA$$renti"e the (raining in his (rade, ensure thatthe !erson duly Puali9ed is $la"eed as n2"harge . (oarry out all Legal ontra"tual &bligations. !aymentto A$$renti"e F2 (he ;inimum Rates of 5ti$end
$res"ribed under the Rules as follows. -Revised Ratew.e.f. 3@rd ;ar 3<11/. raduate A$$renti"es O RsF2@HJ<2 $.m. , 5andwi"h ourse -5tudents from4egree nst./ O RsF2 3H@<2 $.m., (e"hni"ian
A$$renti"es O RsF2 3H@<2 $.m., 5andwi"h "ourse-5tudents from 4i$loma nst./ O RsF2 3<K<2 $.m., (e"hni"ian -o"ational/ A$$renti"es O RsF2 1IK<2$.m.
I. I. !ayment of Wages A"t G 1I@J &be"tive of theA"tF2 (he “!ayment of Wages A"t 1I@J# regulates$ayment of wages to %m$loyees -4ire"t ndire"t/. (he A"t is intended to be a remedy against
unauthori'ed dedu"tions made by the “%m$loyer# orunusti9ed delay in $ayment of wages. All %m$loyeesare "overed under the A"t, those are drawingAverage wages RsF2 1<<<<2 $er month. A$$li"abilityof the A"tF 2 (he “!ayment of Wages A"t 1I@J# isA$$li"able to All 0a"tories, ndustrial %stablishment, (ramway 5ervi"e, or ;otor (rans$ort 5ervi"eengaged in "arrying !assengers or oods both by
road for hire or reward. Air (rans$ort 5ervi"e, 4o"*,Wharf or Dettly, nland essel, ;a"hini"ally $ro$elled,;ines, Puarry or &il20ield, !lantation, Wor*sho$ orother %stablishement, et".. ;eaning of WagesF2“Wages# means all Remuneration e:$ressed in termsof ;oney and in"lude Remuneration $ayable underany Award or 5ettlement, &vertime Wages, Wagesfor 7oliday any sum $ayable on (ermination of
%m$loyment. 7owever, it does not in"lude “Bonus#whi"h does not form $art of Remuneration $ayable,value of 7ouse A""ommodation, ontribution to !0 %5, (raveling Allowan"e, or !ayment of ratuity.Mse"tion 3-vi/N
1<. 1<. uidelines O Wages A"t (ime of Wages!ayment F f the %m$loyee strength is Less then“1<<<# in any &rgani'ation, then Wages shall be $aidbefore the e:$iry of the <Kth 4ay of the following
month. f the %m$loyee strength is ;ore then “1<<<#in any &rgani'ation, then Wages shall be $aid beforethe e:$iry of the 1<th 4ay of the following month. n"ase of “(ermination# of %m$loyee by the %m$loyerthe wages shall be $aid before the e:$iry of the5e"ond wor*ing day from the 4ate of (ermination“4&(#. 4edu"tion from WagesF 2 (he ;a:imum4edu"tion "an be H<S of ;onthly wages, 7owever,
ma:imum dedu"tion u$to KHS is $ermissible ifdedu"tion is $artly made for $ayment to o2o$erative 5o"iety. Mse"tion KN. 4edu"tion on A""ountof Absen"e of 4uty, 0ines, 7ouse A""ommodation if$rovided by &rgani'ation, Re"overy of Advan"e,Loans given, n"ome (a:, !0, %5 "ontribution, L$remium, amenities $rovided, dedu"tion by order ofourt et". is $ermitted. 4edu"ation of 0inesF 2 (he
;a:imaum dedu"ation as 0ines from Wages shouldnot e:"eed <@S during the same wage $eriod. tshould be re"overed within I< days from the date itwas im$osed. Roe"ord of 0ines should be maintain in0ine Register -0orm2/.
11. 11. uidelines O Wages A"t ;ode of Wages!aymentF All wages shall be $aid in urrent oins orurren"y >otes or in both. %m$loyer an also $ay the
Wages either by "he6ue or by "rediting the Wages in%m$loyee’s Ban* A""ount with %m$loyee’sAuthori'ation in written. Wages "an be $aid on 4aily,Wee*ly, 0ortnightly or ;onthly basis, but wage $eriod"annot be more than a month. ;ost &rgani'ation$re)red ;onthly !ayment basis. Re"ords
;aintainan"eF (he %m$loyer has to maintain ariousRegister under the A"t i.e. Register of 0ines -0orm2/,Register of 4edu"ation -0orm2/, Register of Advan"e-T/, Register of Wages -0orm2 /, ;uster Roll2
"um2Register of Wages -0orm G/ Annual Return-for Air (rans$ort 5ervi"es/. All the above mentionedRegister Re"ords shall be maintained u$2to2date. (he attendan"e of the em$loyee shall be mar*ed notlater than one hour after em$loyee starts wor* forthe day. !enalty to %m$loyerF &n onvi"tion for any&)en"e Again uilty of ontravention of same$rovision m$risonment not less than one month
%:tendable u$to si: months and 9ne not less thanRs.3<<<, %:tendable u$to Rs.1H<<<.
13. 13. Wor*mens’ om$ensation A"t 21I3@ &be"tof the A"tF 2 (his is an A"t to $rovide for the $aymentby "ertain "lasses of %m$loyers to their wor*men-%m$loyee/ of "om$ensation for inury by a""identduring the "ourse of %m$loyment. (he A"t isa$$li"able all over the ndia "ame into for"e w.e.f.
<1st Duly 1I3E. overage of %m$loyeesF2 All%m$loyees of Any ategories a$a"ity rres$e"tiveof their 5tatus or 5alaries either 4ire"tly or hiredthrough ontra"tor or a $erson re"ruited to wor*abroad for the &rga'ition. %m$loyer’s Liability Oom$ensationF n "ase of 4eath or !ersonal inuryresulting into (otal or !artial 4isablment or&""u$ational 4isease "aused to a wor*man
%m$loyee by a""ident arising out of and during the"ourse of his em$loyment, his %m$loyer shall beliable to $ay "om$ensation under the A"t.
1@. 1@. uidelines O om$ensation A"t %m$loyer5hall not be so LiableF n Res$e"t of Any nury whi"hdoes not Result in the (otal or !artial 4isablement of
the Wor*man for a !eriod %:"eeding (hree -<@/ days.n Res$e"t of Any inury, not resulting in 4eath or!ermanent (otal 4isablement -!(4/, "aused by anA""ident whi"h is dire"tly attributable toC -i/ (he
Wor*man having been at the time thereof under thenuen"e of 4rin* or 4rugs. -ii/ (he Wilful4isobedien"e of Wor*man to an order e:$resslygiven, or avoiding safty guidilines. -iii/ (he WilfulRemoval or 4isregard by the wor*man of any safetyguard during &n24uty. !ayment of om$ensationAmountF n ase of 4eath of a Wor*man Results fromthe nury during the %m$loyment. ;inimum
om$ensation for 4eath under the A"t is RsF213<<<<2 or an amount e6ual to H<S -0ifty $er "ent/of the ;onthly wages of the Wor*man’s multi$lied bythe relevant fa"tor, whi"hever is higher. -5ube"t to;a:. RsF2 =<<<2 $er month w.e.f. @1st ;ay 3<1< oras $er the ;inimum Rates of wages of the 5tate./. nase of !ermanent (otal 4isablement -!(4/ of aWor*man Results from the nury. ;inimum
om$ensation for !(4 under the A"t is RsF2 1E<<<<2or an amount e6ual to J<S -5i:ty $er "ent/ of the;onthly wages of the nured wor*man’s multi$liedby the relevant fa"tor, whi"hever is higher.
1E. 1E. uidelines O om$ensation A"t al"ulationO om$ensation AmountF2 om$letely 4e$ends onthe AgeF2 7igher the Age G Lower the om$ensationAmount. 0ind out the Relevant fa"tor s$e"i9ed in
5"hedule giving slabs de$ending u$on the age ofthe "on"erned wor*man. %:am$le F n "ase of 4eath.;onthly Wages O RsF2 KK<<2, Age of Wor*manF2 @H Qrs., Relevant 0a"tor isF2 1IK.<J, (hen om$ensationAmt RsF2 -H<S of RsF2 KK<<2 U 1IK.<J/ V RsF2KH=J=12 As its higher then ;in. om$ensation RsF2
13<<<<2, so om$ensation Amt. RsF2 KH=J=12. n"ase of (otal 4isablement -!(4/ V -J<S of RsF2KK<<2 U 1IK.<J/ V RsF2 I1<E1K2 !ermanent !artial4isablement V -S as $er 5"hedule of KK<<2 U
Relevant 0a"tor/ (em$orary 4isablement V A 7alf;onthly !ayment, e6ual to 3HS of ;onthly wages.0uneral %:$enses F2 %m$loyer shall 4e$osit RsF23H<<2 to the ommissioner for the $ayment to%ldest 4e$endant of the Wor*man. Re$ort ofA""ident under Rule 11 0orm %% 2 Re$ort of 0atalA""ident and 5erious nury within K days to theommissioner -not a$$li"ation when %5 A"t a$$lies/.
5e"21<BX !enalty to %m$loyerF2 n "ase of %m$loyerfound defaulter then %m$loyer has to $ay H<S of theom$ensation Amount Y nterest to the Wor*man orhis 4e$endents as the "ase may be. 5e"2EAX
1H. 1H. (he 0a"tories A"t 21IE= A$$li"ability of theA"t F Any $remises whereon (en -1</ or more $ersonswith the Aid of !ower or (wenty -3</ or more Wor*erswere wor*ing without Aid of !ower on any day
$re"eding 13 months, wherein ;anufa"turing $ro"essis being "arried on. t e:tends to whole of ndia andovers all ;anufa"turing $ro"esses %stablishmentsfalling within the de9nition of “0a"tory# 5e".3 -ii/.&be"tive of the A"tF (his A"t has been "ome intofor"e to onsolidate and Amend the Law Regulatingthe Wor*ers wor*ing in the fa"tories. (o ensure the5afeguard the interest of wor*ers and !rote"t them
from e:$loitation, the A"t $res"ribes "ertainstandards with regard to 5afety, Welfare and Wor*ing7ours of wor*ers, a$art from other $rovisions. 7istoryof 0a"tory A"tF (he 0a"tories A"t 1IE= was an “A"t of!arliament# $assed in the “+nited Zingdom# by theLabour overnment of lement Attlee. t was $assed
with the intention of safeguarding the health ofwor*ers. t e:tended the age limits for the medi"ale:amination of $ersons entering fa"toryem$loyment, while also in"luding male wor*ers in
the regulations for $roviding seats and issuinge:tensive new building regulations.
1J. 1J. 4uties of %m$loyer under the A"tF (he0a"tory should be *e$t lean always. M5e"tion 11N. All;a"hinery should be $ro$erly 0en"ed to $rote"tWor*ers when ;a"hinery is in ;otion. M5e"2 31 to3KN. (here should be arrangement to 4is$ose ofWastes and e[uents. M5e"tion 13N. 7oists and Lifts
should be in good "ondition tested !eriodi"ally.M5e"2 3= 3IN. Reasonable (em$erature for omfortof em$loyees should be ;aintained. M5e"tion 1@N.!ressure of $lants should be "he"* as $er rules. M5e"2@1N. 4ust 0umes should be "ontrolled below$ermissible limits. M5e"tion 1EN. 0loor, 5tairs ;eansof a""ess should be of sound "onstru"tion freeform obstru"tions. M5e" 2 @3N. Arti9"ial 7umidi9"ation
should be at $res"ribed standard level. M5e"tion 1HN.5afety a$$lian"es for %yes, 4angerous 4usts, as,0umes should be $rovided. M5e" 2 @H @JN.&ver"rowding should be avoided. M5e"tion 1JN.Wor*er should not ;isuse any a$$lian"e,onvenien"e or &ther things $rovided. M5e" 2 111N.Ade6uate Lighting, 4rin*ing Water, Latrines, +rinals 5$ittoons should be $rovided. M5e"tions 1K to 1IN.
n ase of 7a'ardous substan"es, Additional 5afety;easures have been $res"ribed. M5e" 2 E1A to E17N.Ade6uate 5$ittoons should be $rovided. M5e"tion 3<N.Ade6uate 0ire 0ighting %6ui$ment should beavailable. M5e"tion @=N. !ro$er antilation for Air Light inside the 0a"tory Building 5afety &8"er should
be a$$ointed if number of wor*ers in fa"tory are1,<<< or more. M5e" 2 E<BN.
1K. 1K. 4uties of %m$loyer under the A"tF Welfare of%m$loyeeF Ade6uate 0a"ilities for Washing, 5itting,
5toring of "loths during &) Wor*ing hours. M5e" 2 E3N.f a wor*er has to wor* in 5tanding !osition, 5ittingArrangement to ta*e 5hort Rests. M5e" 2 EEN.Ade6uate 0irst Aid Bo:es shall be $rovided ;aintained with all re6uired medi"ines. M5e" 2 EHN.0a"ilities for Large 0a"toriesF Ambulan"e Room if H<<or ;ore Wor*ers are %m$loyed in the 0a"tory.anteen if 3H< or ;ore wor*ers are em$loyed. M5e" 2
EJN. Rest Rooms 5helters with 4rin*ing Water when1H< or ;ore wor*men are %m$loyed. M5e" 2 EKNr\"hes if @< or ;ore Women wor*ers are em$loyed.M5e" 2 E=N 0ull time “Welfare &8"er# if fa"tory%m$loys H<< or ;ore wor*ers M5e" 2 EIN Wor*ing7ours under the A"tF (he ;a:imum Wor*ing hours"an’t be more then E= 7ours in a wee*. M5e" 2 H1N. (he ;a:imum 4aily Wor*ing 7ours "an’t be more
then <I 7ours. M5e" 2 HEN. &ne Wee*ly 7oliday isom$ulsory whi"h is 5unday. f %m$loyee wor*s on5unday, then he should om$enste with any &therday of the Wee*. M5e" 2 H3-1/N. At least 7alf an hourRest should be $rovided after H hours of wor*. M5e" 2HHN. (otal $eriod of wor* in"lusive of rest interval"annot be more than 1<.H hours. M5e" 2 HJN. A Wor*ershould be given a Wee*ly 7oliday. &verla$$ing of
5hifts is not !ermitted. M5e" 2 H=N. >oti"e of !eriod ofWor* should be dis$layed. M5e" 2 J1N.1=. 1=. uidelines O 0a"tories A"t &vertime Wages
under the A"tF2 f a Wor*er wor*s beyond <I hours aday or E= hours a wee*, &vertime Wages are 4oublethe Rate of Wages are $ayable. M5e" 2 HI-1/N. A
Wor*man "annot wor* in two fa"tories. (here isRestri"tion on 4ouble %m$loyment. M5e" 2 J<N.7owever, &vertime Wages are not !ayable when theWor*er is on (our. (otal Wor*ing 7ours in"luding
&vertime should not e:"eed J< 7ours in a wee* and (otal &vertime 7ours in a 6uarter should not e:"eedH< 7ours. Register of overtime should be maintained.%m$loyment of Qoung !ersonsF 2 Any hild below ageof 1E Qrs "an’t be em$loyed. M5e"tion JKN. hildabove 1E but below 1H years of age "an be em$loyedonly for E.H hours $er day. M5e"tion K1N. 7e should be"erti9ed 9t by a "ertifying surgeon. M5e"tion J=N. 7e
"annot be em$loyed during night between 1< $m toJ am. M5e"2K1N. Annual Leave F2 A Wor*er havingwor*ed for 3E< days O &ne 4ay Leave for every 3<days for a hild &ne 4ay Leave for wor*ing of 1Hdays. A""umulation of leave for @< days. M5e"tion GKIN 4is$lay on >oti"e BoardF2 A >oti"e ontainingAbstra"t of the 0a"tories A"t the Rules madethereunder, with >ame Address of 0a"tories
ns$e"tor ertifying 5urgeon in %nglish RegionalLanguage should be dis$layed on >oti"e Board. M5e"2 1<=-1/N.
1I. 1I. uidelines O 0a"tories A"t >oti"e ofA""idents, 4iseases %t".,F2 >oti"e of Any A""ident"ausing 4isablement of more than E= hours,4angerous &""urren"es any wor*er "onta"ting&""u$ational 4isease should be informed to 0a"tories
ns$e"tor. M5e" 2 ==N. >oti"e of 4angerous&""urren"es 5$e"i9ed 4iseases should be given.M5e" 2 ==A =IN. &bligation Regarding 7a'ardous!ro"essesF2 nformation about ha'ardoussubstan"es $ro"esses should be given. Wor*ers andeneral !ubli" in vi"inity should be informed about
4angers 7ealth 7a'ards. 5afety ;easures %mergen"y $lan should be ready. 5afety ommitteeshould be a$$ointed. !enalties to the %m$loyerF2 fthere is Any ontravention of any of the !rovisions of
this A"t or any Rules, “%m$loyer ;anager# will be!unishable with m$risonment u$to 3 years or 9neu$to RsF2 1,<<,<<< or both. -5e"tion G I3/. !lease"he"* the !enalties hart for various "ontraventionunder the A"t.
3<. 3<. (he ndustrial 4is$utes A"t 2 1IEK &be"tiveof the A"tF2 (he ;ain &be"tive of the A"t to ma*e!rovision for the nvestigation 5ettlement of
“ndustrial 4is$utes# between %m$loyer %m$loyee,and for "ertain other $ur$oses. (his A"t e:tends tothe whole of ndia, w.e.f. <1st A$ril, 1IEK. 4e9nationof the 0ollowingF ndustry F2 7as attained wider;eaning than 4e9ned e:"e$t for 4omesti"%m$loyment, "overs from Barber sho$s to Big 5teel"om$anies. M5e" 2 <3 -/N. Wor*s ommitteeF2 Dointommittee with e6ual number of %m$loyers
%m$loyees’ Re$resentatives for dis"ussion of "ertain"ommon $roblems. M5e" 2 <@N on"iliation F2 s anattem$t by a (hird !arty in hel$ing to settle thedis$utes. M5e" 2 <EN Adudi"ationF2 Labour ourt,ndustrial or >ational (ribunal to 7ear 4e"ide4is$ute. M5e" K,KA KBN. !ower of Labour ourt togive A$$ro$riate Relief F2 Labour ourt ndustrial (ribunal "an ;odify the !unishment of 4ismissal or
4is"harge of Wor*men give A$$ro$riate Reliefin"luding Reinstatement. M5e". 211AN Right of aWor*man during !enden"y of !ro"eedings in 7ighourtF2 %m$loyer has to !ay last drawn Wages toReinstated wor*man when $ro"eedings "hallenging
the award of his Reinstatement are $ending in the7igher ourts. M5e" 21KBN
31. 31. uidelines O ndustrail 4is$utes A"t !ersonsBound by 5ettlementF2 When in the ourse of
on"iliation $ro"eedings et"., all !ersons Wor*ing or Doining subse6uently. &therwise than in ourse of5ettlement u$on the $arties to the 5ettlement. M5e"21=N !eriod of &$eration of 5ettlements AwardsF2 A5ettlement for a $eriod as Agreed by the !arties, or!eriod of 5i: ;onths on signing of 5ettlement. Anaward for one year after its enfor"ement. M5e" 21INLay o) !ayment of om$ensationF2 0ailure, Refusal
or nability of an %m$loyer to !rovide wor* 4ue toF25hortage of oal, !ower or Raw ;aterial,A""umulation of 5to"*s, Brea*down of ;a"hinery >atural alamity. M5e".3H2N. >oti"e of hangeF2 n"ase of any "hange about the onditions of 5ervi"ethe %m$loyer has to give 31 days $rior >oti"e to the%m$loyee, as $rovided in 5"hedule. M5e".IAN. !rior!ermission for Lay o) F2 When there are more than
1<< wor*men during $ro"eeding 13 months. M5e".3H2;N33. 33. uidelines O ndustrail 4is$utes A"t
!rohibition of 5tri*es Lo"* &utsF Without iving tothe %m$loyer >oti"e of 5tri*e, within 5i: wee*sbefore 5tri*ing. Within 0ourteen days of giving su"hnoti"e. Before the %:$iry of the 4ate of 5tri*es$e"i9ed in any su"h >oti"e as aforesaid. 4uring the
!enden"y of any on"iliation !ro"eedings before aon"iliation &8"er 5even days after the "on"lusionof su"h $ro"eedings. 4uring the !enden"y ofon"iliation !ro"eedings before a Board 5evendays after the on"lusion of su"h !ro"eedings.4uring the !enden"y of !ro"eedings before a Labour
ourt, ndustrail or >ational (ribunal. 4uring the!enden"y of Arbitration !ro"eedings before anArbitrator and (wo ;onths after the on"lusion ofsu"h !ro"eedings, where a >oti9"ation has been
issued under 5ub25e"tion-@A/ of se"tion 1<A. 4uringany $eriod in whi"h a 5ettlement or Award is in&$eration, in Res$e"t of any of the ;atters "overedby the 5ettlement or Award. M5e" G 33 3@NRetren"hment of Wor*men om$ensation onditionsF Wor*man must have wor*ed for 3E<days. Retren"hment om$ensation O 1H days’wages for every year. &ne ;onth’s >oti"e or Wages
in lieu thereof. Reasons for Retren"hment. om$lyingwith !rin"i$le of “Last "ome 0irst go#. 5ending 0orm !to Labour Authorities.
3@. 3@. %m$loyees !0 ;! A"t, 1IH3 ???&bee"tives ;ission 5tatementF2 (he ;ission of%!0&, is to %:tend the Rea"h and 6uality of $ubli"lymanaged &ld2age n"ome 5e"urity $rograms through"onsistent and ever2im$roving standards of
"om$lian"e and bene9t delivery in a manner thatwins the a$$roval and "on9den"e of ndians. (he %!0 ;! A"t, 1IH3 was ena"ted by !arliament and "ameinto for"e w.e.f. <Eth ;ar"h, 1IH3. !resently, thefollowing three s"hemes are in o$eration under theA"tF %m$loyees’ !rovident 0und 5"heme, 1IH3.,%m$loyees’ 4e$osit Lin*ed nsuran"e 5"heme, 1IKJ.%m$loyees’ !ension 5"heme, 1IIH. -re$la"ing the
0amily !ension 5"heme, 1IK1/. UU(he %m$loyees]!rovident 0und &rgani'ation, ndia, is one of thelargest $rovident fund institutions in the world interms of members and volume of 9nan"ialtransa"tions that it has been "arrying on.A$$li"ability of the A"tF2 +nder 5e"tion21-@/, %very
0a"tories or %stablishments %m$loying 3< -(wenty/ or;ore !ersons from the 4ate of its 5etu$ are "overedunder the A"t. inema (heatres em$loying <H -0ive/or more !ersons are "overed under the A"t.
“overnment of ndia# after giving two2monthsnoti"e may a$$ly the $rovisions of this A"t to%stablishments where less than 3< -(wenty/ $ersonsare em$loyed. (his A"t a$$lies to the whole ndia,-e:"e$t Dammu Zashmir/. Any establishmentem$loying even less than 3< $ersons "an be "overedvoluntarily us 1-E/ of the A"t. UU (he urrent Wageseiling Limit for "overage under the A"t is ^F 1H,<<<2
-Basi" Y 4A/ $m month w.e.fF 5e$’ 3<1E, -%arlier itwas ^ F J,H<<2 w. e. f.F Dune, 3<<1, before that itwas ^ F H<<<2 $m/.
3E. 3E. uidelines O %!0 ;! A"t “%m$loyee’s4e$osit Lin*ed nsuran"e# is basi"ally an “Lifensuran"e# for all "overed em$loyees under %!0 ;!A"t, 1IH3, 5in"e Aug <1, 1IKJ. 7ere de$osit meansAverage 4e$osit in %!0 A". When an em$loyee dies
while in servi"e, his or her family will get someom$ensation based on de$osit in %!0 A""ount.-Whi"h will be ;a:imum 3< months wages or ^F @.<La"s along with the admissible in"rease of 3<Sunder newly introdu"ed sub $ara -E/ of $ara 33.7en"e the total amount would be ^F @.J La"s w.e.fF5e$ 3<1E, earlier it was 1.@ La"s, w.e.f. ;ay 3<1</. !0ontribution 5ubmissionF !0 (otal Amount of ;onthly
ontribution of -%m$loyee’s %m$loyer’s share/ is tobe de$osited through &nline enerated ombinedhallan in res$e"tive A".F <1, 3, 1<, 31 33 from%!0& website, w.e.f. A$ril <1, 3<13. !ayment of totalontribution will only via &nline !ayment -Retail or$orate Ban*ing/ with HJ Ban*s of ndia w.e.f. ;ay
<1, 3<1H. &nline $ayment of !0 "ontribution ma*ethe $ro"ess so sim$le to $ay the dues to the %!0& infew minutes. Web2lin*Fhtt$sFwww.onlinesbi."om$relogine$foin$utdis$lay.
htm Bene9ts of %!0 5"heme 1IH3F2 Retirement,;edi"al are, 7ousing, 0amily &bligations, %du"ationof hildren 0inan"ing of nsuran"e !oli"y Bene9tsof !ension 5"heme 1IIHF2 ;onthly ;ember’s !ension5"heme, Widow hildren !ension, &r$han !ension,Redu"ed !ension 4isablement !ension. !enaltiesunder the A"tF Less then 3 months F2 O 1KS $.a. ontotal due ontribution. <3 months above, but less
then u$to <E monthsF2 O 33S $.a. <E months above, but less then u$to <J monthsF2 O 3KS $.a. <Jmonths above F2 O @K S $.a. on total due"ontribution.
3H. 3H. %m$loyee’s 5hare -to %!0 0und/ AF <1%m$loyer’s 5hare -to %!0 !en. fund/ A" F <1 1< O13 S of Basi" Y 4A -A"F <1/ O =.@@S of Basi" Y 4Aor ;a: ^ 13H<2 -A"F 1</ O @.JKS of Basi" Y 4A or
-13S 2 ^ 13H</ -A"F <1/ %!0 (otal in A". <1F O 1H.JKSor - O 13S Y -13S 2 ^ F 13H<2/ %!5 (otal in A". 1<FO =.@@S or ;a: ^ F 13H<2 (otal ontribution to %!0 !ension 0und , A"F <1 1< - O 1H.JK Y =.@@ / V 3ES !0 Administrative harges in A"F <3 - O <.=H S ofBasi" Y 4A/ -;inimum ^ F H<<2 fun"tional ^ F KH2for non fun"tional &rg./ ontribution to %4L, A"F 31O <.H S of Basi" 4A or ;a: u$to on ^ F 1H<<<2
%4L Relo"ation harges, A"F 33 O <.<1S of Basi" 4A or ;a: u$to on ^ F 1H<<<2 -;inimum ^ F 3<<2fun"tional ^ F 3H2 for non fun"tional &rg./ (otal;onthly ontribution w.e.fF Dan 3<1HF -13SY13SY<.H<SY<.=HSY<.<1S/ V O 3H.@J S 0or %4L%:em$ted &rg. -%4L ns$e"tion harge O <.<<HS of
Basi" 4A or ;a: u$to on ^ F 1H<<<2/ !0 al"ulationA""ount2wise
3J. 3J. 0orms for %m$loyer “!erforma Registration0orm# to Register the &rgani'ation under the %!0 A"t
-&nline $ro"ess is a$$li"able to get the %!0 ode/.0orm 2 HA, for details of “4ire"tors !ro$rietors# ofthe &rgani'ation. -&nline +$dation is Re6uired/. 0orm2 I, for all overed %m$loyee 4etails at the time ofRegistration. 0orm 2 11 ->ew/, 4e"laration 0orm to9nd the !0 %ligibility old +A> of >ew Doinees. 0orm2 3, >omination 0orm with details of %m$loyees,>ominee !0 A" >o. “ombined &nline enerated
hallan# for 5ubmission of !0 ontributiuon. n &nline$ro"ess there is >o >eed to 9le ;onthly AnnualReturn to %!0&. 0orms for %m$loyee 0orm 2 1I F2Withdrawal 0orm for !rovident 0und Amount. 0orm 21< F2 Withdrawal 0orm for !ension 5"heme Amount.0orm 2 1@ F2 0orm for (ransfer of !rovident 0und !ension 5"heme in >ew !0 A""ount. 0rom 2 @1 F20orm for A$$li"ation of Advan"e from !rovident 0und.
0orm 2 3< F2 A$$li"ation 0orm for !rovident 0und - n"ase of %m$loyee’s 4eath/. 0orm 2 1< 4F2 A$$li"ation0orm for !ension to >ominee. -n "ase of %m$loyee’s4eath/. 0orm 2 H -0/ F2 %4L laim Amount 0orm. - n"ase of %m$loyee’s 4eath/. 0orm 2 = F2 0or hangethe >ominee. 0orm 2 A5R F2 (o Re"eive the laim"he6ues again of 5ettle A""ount. -n "ase of 9rst"he6ue Ree"ted by Ban* to %!0&/
3K. 3K. %m$loyees 5tate nsuran"e A"t 2 1IE=;ission 5tatement F2 (o !rovide for ertain Bene9tsto %m$loyees in "ase of 5i"*ness, ;aternity and%m$loyment nury to ma*e the !rovisions forRelated ;atters. &be"tive of the A"tF2 (he %55"heme is an ntegrated ;easure of “5o"ial
nsuran"e# "ome to the Life through the “%m$loyees]5tate nsuran"e A"t G 1IE=#, and is 4esigned to"om$lete the tas* of !rote"ting _%m$loyees] asde9ned in the %5 A"t G 1IE=, against the 7a'ards of
5i"*ness, ;aternity, 4isablement or 4eath due to%m$loyment nury to $rovide full ;edi"al are tonsured !ersons -!/ their 0amilies. (he %5 A"t isa$$li"able a"ross the length and breadth of the ndia.A$$li"ability of the A"t F +nder 5e"tion 2 3-13/ of (heA"t, %5 is a$$li"able to the all 0a"tories em$loying1< -(en/ or ;ore !ersons irres$e"tive of whether!ower is used in $ro"ess of ;anufa"turing or not.
+nder 5e"tion 2 1-H/ of (he A"t, the 5"heme hasbeen %:tended to 5ho$s, 7otels, Restaurants,inemas in"luding !review (heatre, Road ;otor (rans$ort underta*ings >ews$a$er %stablishmentem$loying 3< -(wenty/ or ;ore $ersons. 0urther,+nder 5e"tion 2 1-H/ of the A"t, the 5"heme has been%:tended to !rivate ;edi"al %du"ationalnstitutions em$loying 3< -(wenty/ or ;ore $ersons in
"ertain 5tates . (he %:isting Wage2Limit for overageunder the A"t, is Rs. 1H,<<<2 $er month. -%:"ludingRemuneration for &vertime/ w. e. fF2 ;ay <1, 3<1<.“At an Average the %5 or$oration ma*es E< La"sndividual !ayments ea"h year Amounting to aboutRs. @<< "rores through its wide s$read networ* ofbran"h &8"es in the im$lemented areas#.
3=. 3=. %5 ontribution %m$loyer]s "ontribution
-E.KHS of gross salary/ %m$loyee]s "ontibution-1.KHS of gross salary/ (otal %si "ontribution -J.HS of gross salary/ 4ue 4ate, ontribution Bene9t !eriod (he ontribution’s Amount -%m$loyee’s %m$loyer’s5hare/ is to be 4e$osited at 5tate Ban* of ndiathrough &nline enerated hallan from %5 Website
via %m$loyer’s 4, on or before 31st day of followingmonth. “%m$loyers# "overed under the %5 A"t, arere6uired to !ay ontribution towards the s"heme ona ;onthly basis. (here are (wo ontribution !eriods
ea"h of 5i: ;onths and (wo orres$onding Bene9t!eriods also of 5i: ;onths duration lin*ed with ea"hother. ontribution !eriod Bene9t !eriod 1st A$ril to@<th 5e$. 1st Dan to @<th Dune -of the following year/1st &"t to @1st ;ar. 1st Duly to @1st 4e". ! hisfamily will re"eive the ;edi"al &thers Bene9ts of%5 as $er his ontribution during the ontribution!eriod with total "ontribution days re6uired for
5$e"i9" Bene9ts.3I. 3I. uidelines O %5 A"t Bene9ts of %5 F2
;edi"al Bene9t, 5i"*ness Bene9t, ;aternity Bene9t,4isablement Bene9t, 4e$endents Bene9t, 0uneral%:$enses &thers Bene9ts. &bligation of the%m$loyers F 4edu"ate 4e$osit the %5 ontributionwith &wn 5hare ;onthly. enerated the ( 7andover to %m$loyee for 5mart ard. 5ubmit the
A""ident Re$ort in 0orm G 1J within 3E hours of theA""ident. rant Leave to nsured %m$loyees on thebasis of 5i"*ness erti9"ates. Re"ords ;aintenan"e F;aintain the Register of %m$loyees in 0orm 2J -underReg.F2 @3/. ;aintain the A""ident Boo* in 0orm 2 11-under Reg.F2 JJ/. ;aintain the ns$e"tion Boo*-under Reg.F2 1<3A/. ;aintain the 0orm G @3 ofontribution 4etails of %m$loyees. 0ile all the "o$ies
of Return of ontribution, hallans, et". 0ile all theeneral orres$onden"e o$ies of A""identRe$orts. 4elay in ontribution !ayment Rate of4amages on 4ue Amount i/. +$ to less than 3months <H S ii/. 3 months and above but less than E
months 1<S iii/. E months and above but less than Jmonths 1HS iv/. J months and above 3HS
@<. @<. (he ;aternity Bene9t A"t 2 1IJ1 “An a"t toRegulate the %m$loyment of Women in "ertain
%stablishment for "ertain $eriod before and afterhild2Birth to $rovide for ;aternity Bene9t ertain other bene9ts#. &be"tive of the A"tF2 (he;aternity Leave Bene9t A"t is to !rote"t the4ignity of ;otherhood by $roviding the om$lete 7ealthy are to the Women 7er hild, when she isnot able to $erform her duty due to her health"ondition. n the morden world, as the $arti"i$ation
of Women %m$loyees is growing in %very ndustry, sothe need of the ;aternity Leave other Bene9ts arebe"oming in"reasingly "ommon. A$$li"ability of theA"tF2 (he A"t e:tends to whole of ndia. n the 9rstinstan"e, to every establishment being a 0a"tory,;ine or !lantation in whi"h 1< or ;ore $ersons are orwere em$loyed on any day of the $re"eding -13/ (welve months. -in"luding any su"h establishment
belonging to overnment to every establishmentwherein $ersons are em$loyed for the e:hibition ofe6uestrian, a"robati" and other $erforman"es.e:"e$t em$loyees "overed under the “%5 A"t 1IE=#.Right of ;aternity Bene9tF2 %very !regnant wor*ingwomen in any %stablishment are %ligible for;aternity Bene9t, $rovided they have 5erved in the%stablishment for at least =< days in -13/ (welve
months before the e:$e"ted date of delivery.7owever, if a woman is earning less than RsF21H,<<<2 she may be o)ered %5 s"heme by herem$loyer she will re"eive the ;aternity Bebe9tunder %5 5"heme.
@1. @1. uidelines O ;aternity A"t >oti"e to the%m$loyerF2 (en -1</ wee*s before the date of here:$e"ted delivery, she may as* the %m$loyer to giveher light wor* for a ;onth. 5he should give written
>oti"e to the %m$loyer about 5even -<K/ wee*sbefore the date of her delivery that she will be on;aternity Leave for 5i: wee*s before after herdelivery. Bene9ts under the A"tF2 Leave with Average!ay for (welve Wee*s -=E 4ays/, <J wee*s Before After the delivery. 5he "an ta*e the !ay for the 9rst5i: -<J/ wee*s before start of ;aternity leave. 5hewill get !ay for the 5i: -<J/ wee*s after "hild2birth
within E= hours of Re6uest. A ;edi"al Bonus of Rs.@,H<<2, if the %m$loyer does not $rovide free;edi"al are. An Additional leave with $ay u$ to &nemonth if the woman shows !roof of llness. n "ase of;is"arriage, 5i: -<J/ wee*s leave with average $ayw.e.f F2 4ate of ;is"arriage. 0or (ube"tomy &$erationF Leave with wages O of maternity bene9t for a$eriod of 3 wee*s. >o dedu"tion from >ormal +sual
4aily wages of a woman entitled to maternitybene9t. Light wor* for (en -1</ wee*s before the dateof her e:$e"ted delivery, if she as*s for it. (wo>ursing brea*s until the "hild will be"ame -1H/ 9fteenmonths old. >o 4is"harge or 4ismissal while she ison ;aternity Leave. -5e"tion H/ >o "harge to her4isadvantage in any "onditions of her em$loyment.
@3. @3. uidelines O ;aternity A"t +nder this A"t,
“>o %m$loyer# "an *nowingly em$loy a woman in hisestablishment during the 5i: wee*s following the dayof her delivery or her mis"arriage. 4ismissal duringAbsen"e of !regnan"yF2 When a woman absentsherself from wor* in a""ordan"e with the $rovisionsof this A"t, it shall be unlawful for her %m$loyer to
“4is"harge or 4ismiss# her during or on a""ount ofsu"h absen"e. 0orfeiture of ;aternity Bene9tF2 n"ase of ross ;is"ondu"t the %m$loyer in written "an"ommuni"ate about de$riving su"h bene9t. Within J<
days from date of de$rivation of maternity bene9t,Women "an a$$eal to the authority $res"ribed bylaw. Abstra"t of A"t RulesF2 An Abstra"t of the!rovisions of this A"t Rules made thereunder in thelanguage or languages of the lo"ality shall bee:hibited in a "ons$i"uous $la"e by the %m$loyer in%stablishment in whi"h women are em$loyed.Re"ords ;anagmentF2 %very em$loyer shall $re$are
and maintain su"h registers, re"ords and muster2rollsand in su"h manner as may be $res"ribed under the;aternity A"t. !enalty for ontravention of A"tF2 fany %m$loyer fails to $ay any amount of maternitybene9t to a woman entitled under this A"t ordis"harges or dismisses su"h woman during or ona""ount of her absen"e from wor* in a""ordan"e withthe $rovisions of this A"t, the em$loyer shall be
$unishable with im$risonment whi"h shall not be lessthan -<@/ three months but whi"h may e:tend to -<1/one year and with 9ne whi"h shall not be less thanRsF2 3<<<2, whi"h may e:tend to RsF2 H<<<2.
@@. @@. !ayment of Bonus A"t G 1IJH &be"tive ofthe A"tF2 An A"t to !rovide for the “!ayment ofBonus# to !ersons em$loyed in "ertain%stablishments on the basis of !ro9ts or on the basis
of !rodu"tion or !rodu"tivity for matters "onne"tedtherewith. 7istory of BonusF2 “Bonus# is really aReward for ood wor* or 5hare of !ro9t of the unitwhere the %m$loyee is wor*ing. (he $ra"ti"e of!aying Bonus in ndia a$$ears to have &riginatedduring 1st World War when "ertain te:tile mills
granted 1<S of wages as War Bonus to their wor*ersin 1I1K. n "ertain "ases of ndustrial 4is$utes4emand for !ayment of Bonus was also in"luded. n1IH<, the 0ull Ben"h of the Labour A$$ellate evolved
a formula for determination of bonus. A$$li"ability ofthe A"tF 2 (he A"t is a$$li"able to any 0a"toryem$loying 1< or ;ore $ersons where any $ro"essingis "arried out with Aid of !ower also to &ther%stablishments -established for $ur$ose of $ro9t/em$loying 3< or ;ore $ersons. (his A"t e:tends tothe whole of ndia, w.e.f G 1IJH. %ligibility for BonusF2%very %m$loyees drawing wages u$to RsF21<<<<2,
shall be entitled for Bonus with minimum @< -(hirty/4ays wor*ed $erformed by %m$loyee during theA""ounting $eriod. 5e" G <=X.
@E. @E. uidelines O Bonus A"t 4is6uali9"ation forBonusF2 An %m$loyee shall be 4is6uali9ed fromRe"eiving the Bonus under this A"t, if he is 4ismissedfrom servi"e for “0raud, Riotous or iolent Behaviour#while on the !remises of the %stablishmentC or (heft,
;isa$$ro$riation or 5abotage of any !ro$erty of the%stablishment. !ayment Rate al"ulation of BonusF!ayment Rate O Bonus F ;inimum =.@@S ;a:imum u$to 3<S of the salary or Rs.1<< -on"om$letion of H years after 1st A""ounting year evenif there is >o $ro9t/. 5e". 1<.X 0or al"ulation$ur$oses RsF2 @H<<2 $er month ma:imum will beta*en even if an %m$loyee is drawing u$to RsF2
@H<<2 $er month. -5e". 13/ (ime Limit for !aymentof BonusF Within <= ;onths from the lose ofA""ounting year. ;ostly &rgani'ation $aid the Bonusbefore the 4iwali -5e". 1I/ om$utation of gross$ro9ts F 0or ban*ing "om$any, as $er 5"hedule 2 .&thers, as $er 5e"ond 2 5et2o) and 5et2on F As $er
5"hedule . 5e". 1H 5ubmission of Return F n 0orm 4to the ins$e"tor within @< days of the e:$iry of timelimit under 5e"tion 1I. Rule H
@H. @H. uidelines O Bonus A"t ;aintenan"e of
RegistersF ;aintain a Register showing the"om$utation of the allo"able 5ur$lus referred to in"lause -E/ of se"tion 3, in 0orm A. ;aintain a Registershowing the 5et2on 5et2o) of the allo"able 5ur$lus,under se"tion 1H, in 0orm B. ;aintain a Registershowing the 4etails of the Amount of Bonus due toea"h of the %m$loyees, the dedu"tions under se"tion1K 1= and the amount a"tually disbursed, in 0orm
. 5e".3J, Rule E Rights of %m$loyeeF Right to laimBonus !ayable under the A"t to ma*e anA$$li"ation to the overnment, for the re"overy ofBonus due un$aid by %m$loyer, within one year.%m$loyee has the Right to refer any 4is$ute to theLabour ourt (ribunal. Right to 5ee* lari9"ation &btain information from a""ounts of the%stablishment. (he Bonus A"t is “>ot A$$li"able# to
"ertain %m$loyees of L, eneral nsuran"e, 4o"* Qards, Red ross, +niversities %du"ationalnstitutions, hambers of ommer"e, 5o"ial Welfarenstitutions Building ontra"tors, et". 5e".@3X.!enalty under the A"tF2 0or ontravention of the$rovisions of the A"t or Rules the !enalty ism$risonment u$to J months, or 9ne u$ to RsF2 1<<<,or both. 0or 0ailure to om$ly with the dire"tions or
re6uisitions made the $enalty is m$risonment u$to Jmonths, or 9ne u$ to RsF2 1<<<, or both.@J. @J. !ayment of ratuity A"t 2 1IK3 &be"tive of
the A"tF2 An a"t to !rovide for a 5"heme for the!ayment of ratuity to %m$loyees engaged in“0a"tories, ;ines, &il9elds, !lantations, !orts,
Railway om$anies, 5ho$s or &ther %stablishments#and for matters "onne"ted therewith or in"identalthereto, so far as it Relates to “!orts !lantations# itdoes not a$$ly to the 5tate of Dammu and Zashmir.
(his A"t %:tends to the whole of ndia. A$$li"ability of the A"tF2 (he A"t shall a$$ly to %very “0a"tory, ;ine,&il9eld, !lantation, !ort, Railway om$anies, %very5ho$ or %stablishment within the ;eaning of any Lawfor the time being in for"e in Relation to 5ho$s %stablishments in a 5tate, in whi"h (en -1</ or ;ore$ersons are em$loyed, or were em$loyed, on anyday of the $re"eding <1 year. (he A"t is a$$li"able to
“All %m$loyees#, irres$e"tive of the salary. ;eaningof ratuityF2 (he “!ayment of ratuity A"t 1IK3# is a5o"ial 5e"urity ena"tment. t is derived from theword “ratuitous# whi"h means _ift’ or _!resent’.“(he ratuity# is a Lum$ 5um !ayment to %m$loyeewhen he she Retires or Leaves the 5ervi"e. t isBasi"ally a “Retirement Bene9t# to an %m$loyee so,that he she "an Live Life omfortably after
Retirement. 7owever, under the “ratuity A"t#,gratuity is $ayable even to an em$loyee who Resignsafter "om$leting at least “H years# of servi"e. n "aseuninterru$ted "ontinuous servi"e of _<E years 3E<days’ also be "onsider for ratuity !ayment.
@K. @K. uidelines O ratuity A"t %m$loyees %ligiblefor ratuityF2 “%m$loyee# means any !erson -otherthan A$$renti"e/ em$loyed on wages in any
%stablishment, 0a"tory, ;ine, &il9eld, !lantation,!ort, Railway om$any or 5ho$, to do any 5*illed,5emi2s*illed or +ns*illed, ;anual, 5u$ervisory, (e"hni"al or leri"al wor*, whether terms of su"h%m$loyment are e:$ress or im$lied, and whethersu"h !erson is %m$loyed in a ;anagerial or
Administrative "a$a"ity. (ime of ratuity !aymentF2ratuity is !ayable to a !erson on -a/ Resignation -b/ (ermination on a""ount of 4eath or 4isablement dueto A""ident or 4isease -"/ Retirement -d/ 4eath.
>ormally, ratuity is $ayable only after an %m$loyee"om$letes 0ive Qears of ontinuous servi"e. “n "aseof 4eath and 4isablement, the "ondition of minimumH years’ servi"e is not a$$li"able#. M5e"tion E-1/N.Amount of ratuity !ayableF2 ratuity is !ayable O1H days wages for %very year of om$leted servi"e.n the last year of servi"e, if the em$loyee has"om$leted more than J months, it will be treated as
full year for $ur$ose of gratuity. “n "ase of seasonal%stablishment, ratuity is !ayable O K days wagesfor ea"h season.# M5e"tion E-3/N. “Wages# shall"onsist of Basi" $lus 4.A, as $er Last drawn salary.7owever, allowan"es li*e Bonus, ommission, 7RA,&vertime et". are not to be "onsidered for"al"ulations of ratuity !ayable Amount. M5e"tion3-s/N.
@=. @=. uidelines O ratuity A"t ;a:imumratuityF2 (he ;a:imum ratuity Limit as $er 5e"tionE-@/ has been raised from “@.H la*hs to 1< la*hs#. (his will give advantage to both !rivate !ubli"se"tor em$loyees. om$ulsory nsuran"e for ratuityLiabilityF2 %very %m$loyer has to &btain an nsuran"ein the manner $res"ribed, for his Liability for$ayment towards the ratuity under this A"t, from
the Life nsuran"e or$oration of ndia establishedunder the L of ndia A"t, 1IHJ -@1 of 1IHJ/ or any&ther $res"ribed nsurer of the ountry. >ominationunder the A"tF2 %a"h %m$loyee who has "om$letedone year of servi"e is re6uired to ma*e a nominationfor the $ur$oses of gratuity in "ase of his death.
(here "an be more than one nominee in G “0orm 0#.>ominees may be "hanged at any time by theem$loyee, by giving a written noti"e to the em$loyer.-0orm 7/. !ayment O ratuityF2 Last 4rawn Basi"
5alary Y 4A U 1H U (otal 5ervi"e !eriod 3J 4ays0orfeiture of ratuityF2 ratuity "an be forfeited 5e"E-J/X where an em$loyee has been terminatedF -A/0or any a"t, willful omission or negligen"e "ausingany damage or loss to or destru"tion of any $ro$ertybelonging to the em$loyer. -B/ 0or riotous ordisorderly "ondu"t or any a"t of violen"e on his $art.-/ 0or any a"t whi"h "onstitutes an o)en"e involving
moral tur$itude, $rovided the o)en"e has been"ommitted by him in the "ourse of his em$loyment.
