Back Home Up Next

Labour Laws

Definitions To whom it applies
(Employers)
Beneficiaries under the Act
(Employees)
Benefits Other Important Issues Penalties

PAYMENT OF BONUS ACT, 1965

Salary or wage :

includes

All remuneration other than overtime and includes DA, and retention allowances

Does not include :

  1. Any other allowance which the employee is for the time being entitled to
  2. The value of house accommodation or of supply of light, water medical attendance or other amenity or of any service or of any concessional supply of foodgrains or other articles.
  3. Any travelling concession
  4. Any Bonus (including incentive, 
    production and attendance 
    Bonus)
  5. Any contribution paid or payable by employer to any pension fund or PF
  6. Any retrenchment compensation 
    Gratuity or Ex gratia payment
  7. Any commission payable to the 
    employee.
  1. Every factory (as defined in Factories Act).
  2. Every other establishment in which 20 or more persons (less than 20 but 10 or more if app. Govt. notifies) are employed on any day during the accounting year. (In Maharashtra State it is applicable where 10 or more employees are working in any establishment or factory w.e.f.11/04/1984)
  3. Special provisions with respect to certain establishments are provided
  4. Employees employed through contractors on building operation.
Employees other than apprentice
  1. Who have worked not less than 30 days in an accounting year.
  2. Having salary/wages less than ₹ 21,000/- per month
  1. Subject to provisions:- Minimum bonus shall be 8.33% of salary /wages earned or ₹ 100 whichever is higher .
  2. If allocable suplus as computed under the Act exceeds the amount of minimum bonus, then bonus shall be payable at higher rate subject to a maximum 20% of salary / wages.
  3. Customary bonus paid is 
    deductible.
  4. For persons drawing salary greater than ₹ 7,000/- per month calculation of bonus has to be done on the basis of ₹ 7,000/- per month or as per State Minimum Wages applicable for scheduled employment; whichever is higher
  1. Computation of bonus is to be worked out as per Schedules I to IV of the Act.
  2. Records in Form Nos. ‘A’, ‘B’ & C’ are to be maintained.
  3. Annual Return in Form ‘D’ to be filed.
  4. Bonus must be paid within a period of 8 months from the close of accounting year.
Imprisonment up to 6 months or fine up to ₹ 1,000/- or both.

PAYMENT OF GRATUITY ACT, 1972

Wages

include :

  1. All emoluments earned by the employee while on duty or on leave including DA,

Does not include :

Bonus, Commission, HRA, overtime and any other allowance.

  1. Every factory (as defined in Factories Act) mine, oilfield, plantation, port and railway company.
  2. Every shop or establishment to which Shop and Establishment Act of a State applies in which 10 or more persons are employed on any day of the preceding 12 months.
  3. Any establishment employing 10 or more persons as may be notified by the Central Government.
  1. Any person employed on wages (other than apprentice)
  2. At the time of retirement/ resignation on superannuation, an employee should have rendered continuous service of not less than 5 years.
  3. In case of death or disablement, the gratuity is payable even if he has not completed 5 years of service.
  1. The quantum of gratuity is to be computed at the rate of 15 days wages based on the rate of wages last drawn by the employee concerned for every completed year of service or a part thereof in excess of 6 months.
  2. The total amount of gratuity payable shall not exceed ₹ 10 lakhs. w.e.f. 24-5-2010
  3. In case where higher benefit of 
    gratuity is available under any gratuity scheme award or agreement, the employee will be 
    entitled to higher benefits.
  1. Employers other than Central Govt. or State Govt. obliged to obtain an insurance from LIC in prescribed manner for liability for payment of gratuity.
  2. Establishments to which Act 
    applies must get registered with the controlling Authority.
  3. Once Act applies, it continues to apply even if employment strength falls below 10.
  4. Calculation of Gratuity Monthly salary / 26 x 15 days x No. of years
For false statement or representation, punishable with imprisonment for a maximum period of 6 months or with a fine to the extent of ₹ 10,000 or both.

For contravening provisions of the Act or Rules, punishable with imprisonment for a maximum period of 1 year and minimum period of 
3 months or fine ranging from 
₹ 10,000 to ₹ 20,000 or both.

For non payment of gratuity, punishable with imprisonment for not less than 6 months and not more than 2 years.

INDUSTRIAL DISPUTES ACT, 1947

Wages :

includes: All remuneration capable of 
being expressed in terms of money like

  1. Basic wages, D.A. value of free food or food allowances in lieu of whole or part of the wages, overtime, and other allowances,
  2. Value of House accommodation, supply of light and water, medical attendance or other amenities or any service or of any concessional supply of food grains or other articles,
  3. Value of travelling concession,
  4. Any commission payable on promotion of sales or business or both.

Does not include:

  1. Any Bonus
  2. PF, Pension or Gratuity
Any industry carried by or under authority of any dept. of Central / State Govt. or local authority or any other industry (excluding any agricultural operations, hospitals/dispensaries, educational, scientific research or training institutions charitable/social/philanthropic services, khadi or village industries, activities related to defence, research automic energy and space any domestic services, professional concern and co-op. society/club employing less than 10 persons. Not applicable to dispute arising after closure of the industry. Any person (including apprentice) employed in any industry to do any manual, unskilled, skilled, teaching, operational, clerical, supervisory work for hire, reward and includes any such persons who has been dismissed, discharged, retrenched but does not include a person who is employed mainly in managerial or administrative capacity and draws more than ₹ 10,000/- p.m. (Amended w.e.f. 15-9-2010) and persons employed in defence /police force. (Amended w.e.f. 26-6-2006). The Act restricts unfair labour practices, prescribed for regulating and governing cases of strikes, lock-out, lay-off, retrenchment and closure in certain establishments. Consequences of the aforesaid eventualities are provided towards employees as well as employer. The Act deals with industrial Disputes between employers and employers or between employers and workmen or between workmen and workmen which is connected with the employment or non-employment or terms of employment or with the conditions of labour of any person.

Such disputes are dealt by the 
authorities prescribed under the Act.

Establishment of Grievance Redressal Machinery in every Industrial Establishment employing 20 or more workmen.

Certain mandates :

1) Mandatory requirement in case of closure of an undertaking :—

  1. 60 days notice to the Government for intended closure in Form No. XXIV-B under Sec. 25FFA if employing more than 50 workmen but less than 100 workmen
  2. Application for prior permission of at least 90 days in Form 
    XXIV-C to the Govt. when there are 100 or more workmen during preceding 12 months under 
    S. 25-O

2) Mandatory provision concerning retrenchment of workmen, compensation to be paid and other conditions:

  1. Women must have worked for 240 days
  2. Retrenchment compensation @15 days wages per every completed year to be calculated on last drawn wages inclusive of allowances.
  3. Days wage worked taking 26 not 30 days
  4. One month notice or wages in lieu thereof
  5. Reasons for retrenchment
  6. Complying with principle of ‘last come first go’
  7. Maintenance of seniority list at least 7 days in advance.
  8. Sending of notice in Form XXIV to the Secretary, Government of Maharashtra.

3) Notice of change under S. 9A:-

21 days notice is required to be given by an employer to the workmen about changing the conditions of service as provided in IV Schedule in Form XXVII.

4) Prior Permisssion for lay off :

When there are more than 100 workmen during preceding 12 months under S. 25M

5) Prior Permission for 
retrenchment :-

When there are more than 100 workmen during preceding 12 months under S. 25N

Rajasthan Amendments

In section 2(A), a new sub-section shall be added:

(4) Proposed a time limit of three years be provided for raising the industrial disputes covered under section 2A. An authority specified by the State Government may extend the said period on sufficient grounds.

The Criteria for applying for registration as a representative union is enhanced from 15% to 30% membership to minimise inter union rivalry and bring harmonious industrial relations between the employer and the workmen.

The employer need not seek permission from the appropriate government for retrenchment of up to 300 workers, whereas at present according to the Act it allows only up to 100 workers.

 

 

EMPLOYEES PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952

Basic wages :-

Includes :-

All emoluments earned while on duty or on leave and holidays

Does not include :-

Value of food consession, DA, HRA, overtime allowance, any Bonus, Commission or similar allowance. contribution is payable on D. A. also as per sec. 6 of the Act

  1. Every establishment which is a factory engaged in any industry specified in Schedule I and in which 20 or more persons are employed and
  2. Any other establishment employing 20 or more persons, whom Central Govt. may, notify.
  3. Any establishment employing even less than 20 can be covered by a specific Central Govt. notification.
Any person who is employed for wages in any kind of work of an establishment or employed through contractor in or in connection with the work of an establishment and whose wages do not exceed ₹ 15,000/- p.m. However, an employee covered under the Act will continue to be covered under the Act even if his wages exceed ₹ 15,000/- p.m. but will continue to get benefits as if his wages were ₹ 15,000/- p.m.

In case of International workers PF is applicable on entire salary. As per notification dated 1st Oct., 2008.

Employees covered enjoy a modicum of Social Security in the form of an unattachable, unwithdrawable (except in severely restricted circumstances like buying homes, marriage / death in family, etc.) financial nest egg to which employees and employers contribute equally throughout the covered person’s employment. This sum is payable normally on retirement or death.
  1. Once the Act applies it continues to apply even if employment strength falls below 20.
  2. Periodical returns have to be filed under the Act monthly returns before 25th of the following month.
  3. Inspection Note book has to be maintained.
  4. The Employees’ Pension Scheme 1995 also applies w.e.f. 
    16-11-1995
  5. Provident Fund deduction to be paid before 15th of the following month.
Liable to be arrested without warrant. being a congnisable offence Defaults by employer in paying contributions or inspection / administration charge attract imprisonment up to 3 years and fines up to 
₹ 10,000/-. If offence is repeated, 
imprisonment extend to 5 years but not less than 2 years in addition to fine of 
₹ 25,000/- For any retrospective 
application, all dues have to be paid by employer with damages up to 100% of arrears.

THE EMPLOYEE'S COMPENSATION ACT, 1923

Wages include:

Any Privilege or benefit which is 
being capable of estimated in money, other than travelling allowance or the value of travelling concession or a contribution paid by the employer of a workman towards any pension or PF or a sum paid to a workman to cover any special expenses 
entailed on him by the nature of his employment.

  1. Employer includes any person whether incorporated or not and any agent of employer and when services are temporarily lent or let on hire to another person, then means such other person.
Any workman who is injured by accident arising out of and in the course of his employment, or any workman, employed in specified list of employment, contracts any disease specified therein as an occupational disease peculiar to that occupation. Amount of compensation payable by the employer will be
  1. Where death results from injury, 50% of monthly Wages [if monthly Wages > ₹ 8,000/- p.m. cap of 
    ₹ 8,000/-(2012)] x relevant factor or 
    ₹ 1,20,000/- whichever is more.
  2. Where permanent total disablement results from injury 60% of monthly Wages [if monthly Wages > ₹ 8,000/- p.m. cap of 
    ₹ 8,000/- (2012)] x relevant factor or 
    ₹ 1,40,000/- whichever is more
  3. Relevant factor, which is 
    dependent upon age of employee, ranges from 228.54 to 99.37.
    With effect from 18-1-2010
  1. Any contract by a worker waiving his right to be compensated under this Act is null and void.
  2. The intention of the Legislature and the circumstances under which law was enacted is to be seen. It is interpreted in favour of the weak.
  3. Notice book is to be maintained. A statement, report and a return is to be filed when applicable
  4. In case of fatal accident, payment of compensation to the dependent of a workman is to be made through Commissioner of Workmen’s Compensation
Compensation should be paid early – delay beyond 1 month attract interest @ 12% p.a. and penalty of up to 50% of the compensation. Certain other offences attract fine up to ₹ 5,000/-.

THE EMPLOYEES’ STATE INSURANCE ACT, 1948

Wages :

include :

  1. All remuneration paid or payable in cash to the employee including payment in respect of period of authorised leave, lock-out, strike which is not illegal or lay-off
  2. Other additional remuneration paid at interval not exceeding 2 months

Does not include :

  1. Contribution to PF, Pension or Gratuity payable on discharge,
  2. Any travelling allowances or value of any travelling concession,
  3. Sums to be defray special 
    expenses by nature of 
    employment.
  1. All factories excluding seasonal factories
    1. Employing 10 or more persons if working with power.
    2. Employing 20 or more persons if working without power.
  2. Shops employing 20 or more persons.
  3. Any establishment specially notified by the Government.
  1. Any person employed for wages (up to ₹ 15,000/- p.m. in or in connection with the work of a factory or establishment and
  2. Any person who is directly employed by the employer in a factory or through his agent on work which is ordinarily part of the work of the factory or incidental to purpose of the factory.
    Rate of contribution of the wages:
  3. For Employer - 4.75% 
    For Employee - 1.75%
  4. Contribution period :- 1st April to 30th September/ 1st October to 31st March
  5. Benefit period 1st January to 30th June/ 1st July to 31st December
  6. Date of submission of return:- Within 42 days from the end of contribution period.
  1. The following benefits are provided: Sickness benefit, maternity, disablement, dependent, medical, and funeral expenses Rehabilitation allowance Cannot receive 2 benefits for same period.
  2. Free medical treatment is offered. to employees and his family at hospital & dispensaries run by ESI Corporation
  3. During sickness, an employee will receive wages as per standard benefit rate shown in the table.
  4. Maternity benefits for 26 weeks of which not more than 8 weeks should be preceding confinement
  5. Injury during / in course of employment resulting in temp. / permanent disablement entitles covered employee to regular pay.
  6. Death during the course of employment entitles dependents to regular payment
  7. One time payment of ₹ 5,000/- to help meet funeral expenses
  8. Unemployment allowance to a member who has contributed minimum period of 5 years prior to loss of employment.
    1. Payable till re-employed elsewhere (maximum 12 months period)
  1. Once the Act applies it continues to apply even if employment strength falls below 20 /10
  2. Register of employees is to be maintained in Form 6 (Regulation 32)
  3. Reports and Returns have to be filed as applicable.

As per notification dated 11-3-2008 employer employing 40 and more employees have to append a duly certified by C.A in revised format of return. In case of below 40 employees certificate by employer.

Under S. 39(5)(a) if the principal 
employer does not pay any contribution on the due date :-

Payment of simple interest @12% p.a. or higher rate till date of actual payment. Interest recoverable as 
arrears of land revenue under 
sections 45-C to 45-I

For various offences : An 
employer may be punished with fine from ₹ 2,000/- to
₹ 25,000/- and / or imprisonment from 6 months to 5 years

On failure by an employer to pay his contribution the ESIC can recover the same as an arrear of land revenue.

THE EMPLOYEES' PENSION SCHEME, 1995

  Employees who :
  1. Have been members of the Employees‘ Pension Scheme, 1971.
  2. On or after 16-11-1995 become members of employees P.F. Scheme, 1952.
  3. Who have been members of the Employees P. F. Scheme, 1952 opt to join within 6 months from 16-11-1995.
  1. Members
  2. Heirs will be paid the pension as per the Scheme provided in the Rules.
  1. To members – Superannuation pension, retiring pension or permanent total disablement pension.
  2. To heirs - widow or widowers pension, children pension or orphan pension. Guardian pension, Nominee pension as per the scheme provided in the rules.
The minimum pension was 
enhanced to Rupees One Thousand. A revocation of the order has also now been made.
Imprisonment up to one year. Fine up to ₹ 5,000/- or both for the defaulter.

MINIMUM WAGES ACT, 1948

Wages :

includes :- All remuneration 
being expressed in terms of money including:

HRA - Does not include :-

  1. Value of House Accommodation supply of light, water, medical attendance.
  2. Any other amenity or any service, 
    excluded by an order of the 
    appropriate Government.
  3. Any travelling allowance or any value of travelling concession.
  4. Any sum paid to defray special 
    expenses entitled due to nature of employment
  5. Any Gratuity payable on discharge
Any person who employsdirectly or through another person, whether for himself or for any other person 
employs one or more employees in any scheduled employment in respect of which minimum rates of wages have been fixed under this Act.
Any person who is employed for hire/reward to do any work in a scheduled employment and includes an outdoor worker to whom any articles or materials are given for 
doing some work either at home / any other premises.
The Act prescribes the minimum rates of wages payable to employees for different scheduled employment, for different class or work and for adults, adolescents, children and apprentices depending upon different localities, for one or more wage periods; viz. by hour, by the day, month or other large period. a ) Register of wages to be maintained at workspot in prescribed forms. Such records to be preserved for 3 years from the time of last entry made therein.

b ) Normal working day prescribed under the Act is 9 hours.

Imprisonment up to 5 yearsand / or fine up to ₹10,000/- is imposable for contravention or both

PAYMENT OF WAGES ACT, 1936

Wages

includes :-

  1. All remuneration by way of salary or allowance capable of being expressed in terms of money.
  2. Payable under any award or settlement.
  3. On account of overtime, 
    holidays, leave, production, 
    attendance, bonus etc.
  4. Payable by reason of termination which does not provide for the time within which the payment is to be made.
  5. To which the person employed is entitled under any scheme framed hereunder any law for the time being in force.

Does not include:

  1. Bonus (whether under a scheme of profit sharing or otherwise) which doesn’t form part of remuneration payable under the terms of employment or which is not payable under the Award
  2. Value of house accommodation or of light, water, medical 
    attendance or other amount or of any services excluded from the computation of wages by the Government.
  3. P. F. and Gratuity
  4. Travelling allowance
  5. Any sum paid to defray special expense due to nature of his employment

 

  1. Every person employed in any factory, upon any railway or through sub-contractor in a railway and a person employed in an industrial or other establishment
  2. The State Government may by notification extend the provision to any class persons employed in any establishment or class of establishments.
Every person who is employed in any of the above-mentioned etablishments and who is drawing less than 
₹ 18,000/- per month. (Vide Notification No. SO2260(E) dated 11-9-2012)
The Act provides for –
  1. Regular and timely payment of wages. Specified day after last day of the wages period in respect of which wages are payable are :
    1. 7 days for railways, factory, Industrial or other establishment employing less than 1,000 workers
    2. 10 days for other than persons stated in (i) above
    3. In case of termination of employment, the wages must be paid before the expiry of the second working day from the day of 
      termination.
  2. Prevents unauthorised deductions being made from wages and charges of arbitrary fines.
  1. Wages to be paid in current coin of currency. Written authorisation of employee necessary for payment by cheque /credit to Bank A/c.
  2. Government may specify certain industries where payment will be required to be made through banking channel only. [This has been introduced by Payment of Wages (Amendment) Bill, 2017 which has not yet been enacted]
  3. Deductions cannot exceed 75% of wages for payment to co-op. 
    Societies, and 50% in other cases.
  4. Registers/records in Form Nos. I, II, III & IV to be kept for 3 years from last entry (If muster roll cum wage register in Form No. II as per Maharashtra Minimum Wages Rule is maintained the above registers are not required to be maintained).
Penalties are from ₹ 1,000/-to 
₹ 22,500/-. Repeat offences attract 
1 to 6 months imprisonment

THE BOMBAY SHOPS & ESTABLISHMENTS ACT, 1948

 
  1. State of Maharashtra, Local areas given in Schedule I, 
    Areas where C.P. and Berar and Hyderabad Shops and Establisments Act were applicable before the amending Act of 1960.
  2. Local areas having population more than/less than 25,000 by Notification (Section 1)
  3. Any class of establishment or persons by Notification 
    (Section 5 )

Non-Applicability :

  1. Certain provisions of the Act in column III of Sch. II to 
    Establishments in Column II
    ( Section 4 )
  2. Factories to which the Factories Act is applicable. ( Section 17 )
All employees including apprentices and contract labour.

Minimum wages to be paid as per Notification issued by Commissioner of Labour, published in Maharashtra Government Gazette.

Semi-skilled

₹ 5,400/- ( Zone I )
₹ 5,100/- ( Zone II )
₹ 4,800/- ( Zone III )

Unskilled

₹ 5,000/- ( Zone I )
₹ 4,700/- ( Zone II )
₹ 4,400/- ( Zone III )

Skilled

₹ 5,800/- ( Zone I)

₹. 5,500/- ( Zone II)

₹ 5,200/- ( Zone III)

Plus the Special allowance as may be declared by the Government of Maharashtra Special Allowance from 1-1-2016 to 30-6-2016.

₹ 2,953/- for all categories and all Zones.

  1. Right to leave if more than 3 months @ 5 days for 60 days work and 21 days for 240 days work. 26th Jan, 1st May, 15th Aug. and 2nd Oct. are paid holidays. 
    (Section 35 : Rule II - A).
  2. Leave pay @ equal to average daily wage for days actually worked in 3 months (Section 36).
  3. There is no provision for SL & CL
  4. Overtime wages @ twice the 
    ordinary rate for additional work. (Section 63 ).
Obligation and liability of 
employer
  1. Change in particular of establishments to be communicated to inspector within 15 days for No. of employees and 30 days for other changes. ( Section 8 : Rule 8 : Sch II : Form E )
  2. Closing to be notified within 10 days to inspector (Section 9)
  3. Register and other records 
    to be produced on demand 
    (Section 51).
    Vide Notification dated 8th April, 2015 registers, records and notices for inspection can be maintained electronically.
  4. Maintenance of registers and records and display of notice. 
    (Section 62 : Rule 20 : Form H-N)
  5. For termination 30 days notice or wages in lieu of such notice who has completed 1 year or more and 14 days notice or wage in lieu of such notice who has completed 3 months or more.
  6. Not to permit employee to work when he is on leave / or on holidays (Section 65 ).
  7. Identity cards to employees in residential hotels, etc. (Section 25). Commercial establishment can be opened not earlier than 8-30 a.m. and closed not later than 9-30 p.m.

Limit of overtime work :The maximum limit for working overtime shall not exceed three hours and the employer may, for the purpose of the work beyond the said overtime hours, engage additional number of employees.

Vide Notification dated 14th 
November, 2014. The Licensing Officer shall issue license within three working days on receipt of an application. If the application is not issued in three working days it shall be deemed to have been granted and the copy of the receipt of application with copy of payment of fees shall be treated as licence or renewal certificate.

 

  1. Contravention of certain 
    provisions of the Act - for each offence – fine from ₹ 1,000/- to ₹ 5,000/-
  2. Continued contravention of 
    Section 7(1) after 10 days of conviction – fine of ₹ 100/- every day.
  3. Contravention of  Section 12 – fine of ₹ 1,000/- to 
    ₹ 5,000/-
  4. Employee Contravening Sections 18(2), 24, 31 and 65 - fine of ₹ 500/- to ₹ 5,000/- for each offence.
  5. False entries by employer / manager in Registers, etc. – fine of ₹ 1,000/- to ₹ 5,000/- if both are liable then aggregate fine not to exceed 
    ₹ 5,000/-.
  6. Commission of offence for which once convicted - fine of ₹ 1,000/- to ₹ 5,000/-and for third conviction 
    ₹ 1,000/- to ₹ 10,000/-.
  7. Penalty for wilful obstruction of Inspector ₹ 100/- to ₹ 5,000/-.

THE BOMBAY LABOUR WELFARE FUND ACT , 1953

 
Wages means Wages as defined in Sec. 2(vi) of the Payment of Wages Act, 1936 (4 of 1936) and includes Bonus payable under The Payment of Bonus Act, 1965 (21 of 1965) (Every factory as Defined in Factories Act)

Any establishment within the meaning of the Bombay Shops and Establishments Act, 1948 (Bom. LXXIX of 1948) which employs, or on working day during the preceding twelve months, employed five or more persons (including the Establishments which have been granted exemption partly or wholly under the proviso to section 4 of the Act.

Person who is employed for hire or reward to do any work skilled or 
unskilled manual, clerical, supervisory or technical in an establishment directly by the employer or through contractor or any other agency, but does not include any person –

  1. Who is employed in a managerial capacity;
  2. Who being employed in a supervisory capacity, draws wages exceeding three thousand five hundred rupees per mensem. or exercises powers 
    or carries out, either by the nature of the duties attached to the office, or by reason of the powers vested in him, functions mainly of a managerial nature or,
  3. Who is employed as an apprentice under the Apprentices Act, 1961 (52 of 1961).

 

All employees where the number is more than 5.

Employees drawing less than ₹ 3,000/- per month ₹ 6/- and employers contribution ₹ 18/- and employees drawing more than ₹ 3,000/- ₹ 12/- and employers contribution ₹ 36/.

  The amount so collected will be deposited with the Board on the 15th day of July and 15th day of January, as the case may be. If an employer does not pay to the Board any amount of unpaid accumulations, or fines realised from the employees (for the amount of the employers and employees contributions under sec.6BB) within the time he is required by or under the provisions of this Act to pay it, the Welfare Commissioner may cause to be served a notice on such employer to the amount within the period specified therein, which shall not be less than 30 days from the date of service of such notice.

Any sum payable (to the Board or) under this Act shall, without prejudice to other mode of recovery, or be recoverable on behalf of the Board as an arrear of revenue.

THE FACTORIES ACT, 1948. ( * RAJASTHAN AMENDMENT)

Sec 2 (m): Factory means
  1. Whereon ten or more workers are working is being carried on with the aid of power.
  2. Where on twenty or more workers are working in the manufacturing process without the aid of the power.

The threshold of the number of workers employed for being applied from 10 to 20 workers with the aid of the power and from 20 to 40 workers without the aid of the power.*

Provision under the Act:
  • Compulsory approval, licensing and registration of factories
  • Health Measures
  • Safety Measures
  • Welfare Measures
  • Working Hours
  • Employment of Women and Young persons
  • Annual leave provisions
  • Accident and occupational diseases
  • Dangerous operations
  • Penalties
  • Obligations and rights of 
    employees
Obligation of Employers-
  1. Compulsory Approval:- The occupier or manager of a factory coming within the scope of the Act has to apply to the Chief inspector of Factories for getting the factory registered and obtaining a licence for it. The licence so granted can be amended, renewed, revoked or suspended as per the rules. (Section 6 and Rules 5 to 13 deals with these provisions)
  2. Notice of change of Manager – Whenever a new manager is appointed, the occupier shall send to the (inspector a written notice and to the Chief Inspector a copy thereof within seven days from the date on which such person takes over charge.
  3. General duties of the occupier- Every occupier shall ensure, as far as is reasonably practicable,
    1. The health, safety and welfare of all workers while they are at work in the factory.
    2. Provide and maintain plant and systems of work in the factory that are safe and without risk to health
    3. Make arrangements for ensuring safety and absence of risks to health in connection with the use, handling, storage and transport of articles and substances
    4. Provide necessaryinformation, instruction, training and supervision as are necessary to ensure the health and safety of all workers at work
    5. Maintain all places in the factory in a condition that is safe and without risks to health

With reference to the GR dated 14th November 2014, on receipt of application complete in all respect, the licensing officer shall issue licence within three working days from the date of receipt of an application. If the application is not issued in three working days it shall be deemed to have been granted and the copy of the receipt of application with copy of payment of fees shall be treated as licence or renewal certificate.

 

Rule (5) of the Maharashtra Factories Rules, 1963.

After the sub rule (2) the following sub-rule shall be added namely (3): Every such application shall be accompanied by a plan of the factory (not to scale) showing clearly all the emergency exits with dimensions.

Rule (6) of the principal Rules, for sub rule (I) the following shall be substituted, namely

“(I) The Chief Inspector may, on application being made to him under rule 5 and on payment of the fees prescribed in sub Rule (2) thereof and on being satisfied that there is no objection to the grant

of licence applied for, register the factory and issue a licence in Form 4, within three working days to the applicant to use as factory such premises as are specified in the application and subject to compliance with the following conditions:-

  1. The plan of factory building shall get approval as per Rule 3.
  2. The conditions subject to which the plans are approved shall be complied with.
  3. The compliance of the schedule prescribed under 114 shall be complied with.
  4. Effective measures shall be taken to avoid accidents or injury to persons due to machinery, process and raw materials like explosives, flammable and toxics.
  5. The stability of factory building shall be certified from competent person as per Rule 3-A.
  6. Conditions subject to which the licence is issued shall be complied within a period of twelve months from the date of issuance.

 

*Sec 18: Drinking water.

In every factory provision for cool and safe drinking water during hot weather by effective means.*

*Sec 46: Canteens.

Earlier factories with more than 250 workers were required to provide canteens for their workers, that threshold has been reduced to 200 workers .

*Sec 47: Shelters, rest rooms and lunch rooms.

The threshold to provide shelters, rest room and a lunch room has been reduced from factories employing 150 workers to those employing 75

workers & should be separate for male and female workers.

*Sec. 64: Power to make exemption rules.

The overtime in factories have been increased from 50 to 100 hours in any quarter. State may raise that to 120 hours.*

*Sec. 66: Further restrictions on employment of women.

Employing women on night shifts.

Factory management may begin such a shift after consulting the workers.

Factory must arrange for transport for the female workers from the factory premises to the doorstep of their residences.

Pregnant women and those returning from maternity leave cannot be forced to work night shifts.

*Sec. 79: Annual Leave with wages.

The annual leave wages criteria is reduced to 90 days which was previously 240 days.

 

Sec 92.

General Penalty for offences:

The manager and the occupier of the factory shall be guilty of an offence and punishable with imprisonment for a term of two year or with fine which may extend to Rupees Three lakhs previously it was Rupees One lakh or with both and in any case it shall not be less that Rupees Thirty Thousand.*

THE APPRENTICE ACT, 1961.

The Object of the Act is to regulate training of Apprentice and also to control the training of the 
apprentices.

“Apprentice” means a person who is undergoing apprenticeship training in pursuance of a contract of apprenticeship.

Obligation of an Employer:
  1. To provide apprentice with the training in his trade in accordance with the provision of the Act.
  2. If the employer himself is not qualified in the trade, to ensure that a person who possesses the prescribed qualification is placed in charge of the apprentices.
  3. To provide adequate instrunctional staff, possessing such qualification as may be prescribed for imparting practical knowledge and theoretical training and facilities of the trade test of the apprentices.
  4. To carry out his obligation under the contract of apprenticeship.
Obligation of Apprentice:
  1. To attend classes regularly.
  2. To carry out lawful orders of his employer and superior.
  3. To carry out his obligation under the contract of apprenticeship.
  4. To learn his trade conscientiously and diligently and endevour to become a skilled craftsman.
  The Minimum rate of the stipend per month payable to trade apprentice shall :

During the 1st year of training 70% of the minimum wages of the semi skilled workers notified by the 
respective States.

During the 2nd year of the training 80% of the minimum wages of the semi skilled workers notified by the respective States.

During the 3rd and 4th year of the training 90% of the minimum wages of the semi skilled workers notified by the respective States.

Vide Notification dated 22nd September, 2014.

Offences and Penalties:

If any employer-

  1. Engages as an apprentice a person who is not qualified for being so engaged, or
  2. Fails to carry out the terms and conditions of a contract of apprenticeship, or
  3. Contravenes the provisions of this Act relating to the number of apprentices which he is required to engage under those provisions.

He shall be punishable with imprisonment for a term which may extend to six months or with fine or with both.

THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013.

Applicability:

It applies to every establishment employing Female Employee.

Obligation of Employer:

Constitution of IC (Internal Committee):

Every employer of a workplace shall constitute a committee known as IC.

1 Presiding Officer shall be woman at senior level.

Not less than 2 members amongst employees preferably committed to the cause of women.

1 member shall be among non- governmental organisation.

At least one half of the IC members should be women.

The presiding Officer and every member of IC shall hold the office not exceeding three years.

Obligation of the appropriate government.

Local Committee (LC):

The appropriate Government may notify a District Magistrate or Additional Magistrate or the Collector or Deputy Collector as a District Officer for every District to exercise powers or discharge functions under this Act.

Composition:

A chairperson to be nominated amongst eminent women in the field of social work.

One member to be nominated from amongst the women working in block, taluka or ward or municipality in the district.

Complaint of Sexual Harassment:

Any aggrieved women may make in writing a complaint of sexual harassment at the workplace to the IC or LC, if in case IC is not constituted within a period of three months from the date of incident & in case of series of incidents, within a period of three months from the date of last incident.

For the purpose of making an inquiry under the Act, the IC or the Local Committee as the case may be shall have the same powers as are vested to a civil court, under the code of civil procedure.

  1. Summoning and enforcing the attendance of any person and examining him on oath.
  2. Requiring the discovery and the production of documents.
  3. Any other matter which may be prescribed.
Action during the pendency of inquiry:

During the pendency of an inquiry, the Internal Committee, as the case may be recommend to the employer:-

Transfer the aggrieved woman or the respondent to any other workplace; or

  1. Grant leave to the aggrieved woman up to a period of three months; or
  2. Grant such other relief to the aggrieved as may be prescribed
  3. The leave granted to the aggrieved woman under this section shall be in addition to the leave she would be otherwise entitled.

Committee to submit annual report:

The Internal Committee or the Local Committee, as the case may be, shall in each calendar year prepare, in such form and at such time as may be prescribed, an annual report and submit the same to the employer and the District Officer.

The appropriate Government has notified Deputy Collector as a District Officer to exercise powers and discharge functions under this Act.

Penalty for non-compliance with provisions of Act.

The employer is punishable with a fine of Rupees Fifty Thousand if he fails to comply. Second Offence punishment doubled and possibility of cancellation of licence.

  1. To constitute an Internal 
    Committee .
  2. To take action under sec 13: Inquiry Report.

Sec. 14: Punishment for false or malicious complaint and false evidence.

Sec. 22: Employer to include information in annual report.

THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970

The Object of the Act is to do away with the abuses of the system of employment of contract labour. With the said object the Act regulates the employement in certain establishment and provides for its abolition in certain circumstances.

The Act is applicable to

  1. Every establishment employing twenty or more workmen as contract labour.
  2. To every contractor employing twenty or more workmen.
Draft Amendment.

Rule 21 addition.

Every application shall be accompanied by an undertaking by the contractor regarding information of the applicant (contractor) whether he is minor ; is of sound mind and stand so declared by a competent court, he is an undischarged insolvent; has been convicted during the period of 5 years immediately preceding the date of application in the opinion of the government which involves moral turpitude. Whether an order of Government or an award or settlement for the abolition of contract labour in the establishment in relation to the contractor.

Rule (23)(I) sub-rule shall be 
susbstituted .

“ (I) On the receipt of the application complete in all respects, the licensing officer shall issue the licence within three working days from the date of the application and if the licence is not issued within the said three working days, it shall be deemed to have been granted and the copy of the receipt of the application with the copy of payment of receipt shall be treated as Licence or renewal certificate.

Rule (24)

The Security amount for each workman to be employed as contract labour has been enhanced from ₹ 100 to ₹ 500. In case where the contractor is a co-operative society, the amount deposited as security shall be increased from ₹ 50 to ₹ 250.

Rule (26)

The fees to be paid for granting a Certificate of Registration under section 7 shall be ₹ 5,000.

Amendment in Rajasthan and Maharashtra:

Sec 1(4).

It shall apply

  1. To every establishment in which fifty or more workmen are employed on any day of the preceding twelve months as contract labour;
  2. To every contractor who employs or who employed on any day of the preceding twelve months fifty or more workmen.
    Offences:

If any person contravenes any provisions of the Act or any rules made thereunder he would be punished with imprisonment up to three months, or fine up to ₹ 1,000 or with both, if such contravention is continued after conviction the fine would be up to ₹ 100 per day.

Back to Top

Back Home Up Next