USEFUL TIPS ON

LABOUR LAWS
COMPOSED
By

P.B.S. KUMAR
MANAGER-HR
B.Sc,MA(PM),MA(Ind.Eco.)MBA(HR),BGL,DLL,PGDIR&PM

(pbskumar2000@yahoo.com)
 APPRENTICES ACT, 1961
CHECKLIST

Applicability Apprenticeship Advisor

Object
ObjectofofthetheAct
Act Applicabilityofofthe
theAct
Act Central Apprenticeship
Promotion
Promotionofofnew
newmanpower
manpoweratatskills.
skills. Areas
Areasand
andindustries
industriesasas
notified Advisor – when appointed
Improvement/refinement
Improvement/refinementofofold oldskills
skills notifiedbybythe
theCentral
Central by Central Government.
through
throughtheoretical
theoreticaland
andpractical
practicaltraining
training Government
Government
Sec. Sec. 2(b)
ininnumber
numberofoftrades
tradesand
andoccupation
occupation Sec.11

Industry Qualification for being trained as an Apprentice

Industry means any industry, or business A person cannot be an apprentice in any designated trade
or in which any trade, occupation or unless
subject/field in engineering or technology  He is not more than 14 years of age;
or any vocational course may be specified  He satisfies such standard of education
as a designated trade And physical fitness as
Sec. 2(k) May be prescribed. Sec. 3

Contract of Apprenticeship Conditions for Novation of Period of

To contain such terms and Contract of Apprenticeship Apprentice
conditions as may be agreed to by ship
the apprentice, or his guardian (in  There exists an apprenticeship Training to be
case he is a minor) and contract. Determined by
employers.  The employer is unable to fulfil his
obligation.
Obligations of
Termination of  The approval of the Apprenticeship
employers
Apprenticeship Advisor is obtained.
 To Provide the
On the expiry of the period of  Agreement must be
apprentice with
Apprenticeship training. registered with the
the training in his
On the application by either of the Apprenticeship Advisor.
trade.
parties to the contract to the Sec. 5
 To ensure that a
Apprenticeship Advisor
person duly
Sec. 6
qualified is placed
Number of Apprentices in in charge of the
Payment to Apprentices Designated Trade training of the
The employer to pay such stipend at a To be determined by The Central apprentice.
rate of not less than the prescribed Government after consulting the  To carry out
minimum rate as may be specified. Central Apprenticeship Council
contractual
Sec. 6 Sec.8
obligations.
Sec. 11

Obligations of Apprentice Employer’s liability to pay

 To
learn his trade conscientiously, diligently. compensation for
 To
attend practical and instructional classes regularly. injury
 To
carry out all lawful orders. As per provisions of Workmen’s
 To
carry out his contractual obligations. Compensation Act.
Health safety & Welfare measures for Apprentices
As per Factories Act or Mines Act as the case may be when
undergoing training. Offences & Punishment
Hours of work Imprisonment of a term upto 6
 42 to 48 in a week while on theoretical training. months or with fine when
 42 in a week while on basic training. employer (I) engages as
 42 to 45 in a week in second year of training. an apprentice a person
 As per other workers (in the third year). who is not qualified for
 Not allowed to work between 10 PM to 4 AM unless approved by being so engaged or (ii)
Apprenticeship Advisor. fails to carry out the
Leave and Holidays terms and conditions of a
 Casual leave for the maximum period of 12 days in a year. contract of
 Medical leave for the maximum period of 15 days and the apprenticeship, or (iii)
accumulated leave upto 40 days in a year. contravenes the
 Extraordinary leave upto a maximum period of 10 days in a year. provisions of the Act
Sec. 15 relating to the number of
apprentices which he is
 CONTRACT LABOUR
(REGULARATION & ABOLITION)

CHECKLIST ACT, 1970 & THE RULES

Applicability Registration
Registration of
of
Every establishment in which 20 or more Establishment
Establishment
Object of the Act
workmen are employed or were Principal
Principal employer
employer employing
employing
To regulate the
employed on any day of the preceding 20
20 or
or more
more workers
workers through
through the
the
employment of contract
12 months as contract labour. contractor
contractor or
or the
the contractor(s)
contractor(s)
labour in certain
Every contractor who employs or who on
on deposit
deposit of
of required
required fee
fee inin
establishments and to
employed on any day of the preceding Form
Form 11
provide for its abolition in
twelve months 20 or more workmen. Sec.
Sec. 7 7
certain circumstances and
for matters connected
Sec. 1
therewith.

Revocation of Registration Licensing of Contractor

Prohibition of Employment of Contract When obtained by Engaging 20 or more than 20
Labour Misrepresentation or workers and on deposit of
Only by the appropriate Government through suppression required fee in Form IV.
issue of notification after consultation with Of material facts etc. after Valid for specified
the Board (and not Courts) can order the opportunity to the principal period.Sec.12, Rule 21
prohibition of employment of contract employer
labour. Sec. 10 Sec. 9

Revocation or Suspension & Welfare measures to be taken by the Contractor

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
Contract labour 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

Liability of Principal Employer

Laws, Agreement or standing
orders inconsistent with the Act-
Not Permissible
Unless the privileges in the contract
between the parties or more favourable
than the prescribed in the Act, such
contract will be invalid and the workers will
continue to get more favourable benefits.
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
PENALTIES
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
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

Sec. Offence Punishment

Sec. 22 Obstructions For obstructing the inspector or failing to produce registers etc.
- 3 months’ imprisonment or fine upto Rs.500, or both.
Sec.23 Violation For violation of the provisions of Act or the Rules, imprisonment of 3
Months or fine upto Rs.1000. On continuing contravention, additional fine
upto Rs.100 per day
 EMPLOYEES’ PROVIDENT FUNDS & MISC.
PROVISIONS ACT, 1952
& THE SCHEMES
CHECKLIST
Eligibility Applicability
Any person who is employed for  Every establishment which is factory engaged in any industry specified in
work of an establishment or Schedule 1 and in which 20 or more persons are employed.
employed through contractor in or  Any other establishment employing 20 or more persons which Central
in connection with the work of an Government may, by notification, specify in this behalf.
establishment.  Any establishment employing even less than 20 persons can be covered
voluntarily u/s 1(4) of the Act.
Payment of Contribution
 The employer shall pay the
contribution payable to the EPF, Benefits
DLI and Employees’ Pension Fund Employees covered enjoy a benefit of Social Security in the form of an
in respect of the member of the unattachable and unwithdrawable (except in severely restricted circumstances
Employees’ Pension Fund employed like buying house, marriage/education, etc.) financial nest egg to which
by him directly by or through a employees and employers contribute equally throughout the covered persons’
contractor. employment.
 It shall be the responsibility of the This sum is payable normally on retirement or death. Other Benefits include
principal employer to pay the Employees’ Pension Scheme and Employees’ Deposit Linked Insurance Scheme.
contributions payable to the EPF,
DLI and Employees’ Pension Fund
by himself in respect of the Rates of Contribution
employees directly employed by
him and also in respect of the
employees directly employed by SCHEME EMPLOYEE’S EMPLOYER’S CENTRAL GOVT’S
him and also in respect of the Amount > 8.33%
employees employed by or through (in case
a contractor. where
Clarification about Contribution contribution
After revision in wage ceiling from is 12% of
Rs.5000 to Rs.6500 w.e.f. 1.6.2001 per Provident Fund
12% 10%) NIL
month, the government will continue to Scheme
10% (in case of
contribute 1.16% upto the actual wage certain
of maximum Rs.6500 per month Establishments as
towards Employees’ Pension Scheme. per details given
The employer’s share in the Pension earlier)
Scheme will be Rs.541 w.e.f. 1.6.2001. Insurance
Under Employees’ Deposit-Linked NIL 0.5 NIL
Scheme
Insurance Scheme the contribution @ 8.33% (Diverted
0.50% is required to be paid upto a out of
maximum limit of Rs.6500.
The employer also will pay
Damages
administrative charges @ 0.01% on
maximum limit of Rs.6500 whereas an
exempted establishment will pay  Less than 2 months ….@ 17% per annum
inspection charges @ 0.005% on the
total wages paid.  Two months and above but less than upto four months ….@22% per annum
Notes:
The above clarification is given by taking  Four months and above but less than upto six months ….@ 27% per annum
wages upto a maximum of Rs.6500
towards wage (basic+DA).  Six months and above
Since an excluded employee i.e. drawing
wages more than Rs.6500 can also
Penal Provision
Liable to be arrested without warrant being a cognisable offence.
become member of the Fund and the
Schemes on joint request and if, for
Defaults by employer in paying contributions or inspection/administrative
instance, such an employee is getting
Rs.10,000 per month, his share towards
charges attract imprisonment upto 3 years and fines upto Rs.10,000 (S.14). For
provident fund contribution will be
Rs.1200 e.g. 12% and employer’s share
any retrospective application, all dues have to be paid by employer with
towards provident fund contributioin will
be Rs.659 and Rs.541 towards
damages upto 100% of arrears.
Employees’ Pension Fund.
 EMPLOYEES’ STATE INSURANCE
ACT, 1948 & the SCHEME
CHECK LIST

Applicability of
Coverage Rate of
of employees Contribution of the
the Act & wages THE ESI SCHEME TODAY
Scheme No. of implemented Centres 677
Is extended in area- Drawing wages No. of Employers covered 2.38
upto Employers’ 4.75%
wise to factories lacs
using power and Rs.10,000/- per Employees’ 1.75% No. of Insured Persons 85 lacs
employing 10 or month No. of Beneficiaries 330 lacs
more persons and to engaged either No. of Regional Offices/SRO’s 26
non-power using directly or thru’ No. of ESI Hospitals/Annexes 183
manufacturing units contractor No. of ESI Dispensaries 1453
and establish-ments No. of Panel Clinics 2950
Manner and Time Limit
employing 20 or
for making Payment of contribution
more person upto Benefits
Rs.7500/- per month To the employees under the Act
The total amount of contribution (employee’s
w.e.f. 1.4.2004. It
share and employer’s share) is to be deposited
has also been Medical, sickness, extended sickness
with the authorised bank through a challan in
extend-ed upon for certain diseases, enhanced
the prescribed form in quadruplicate on ore
shops, hotels, sickness, dependents maternity,
before 21st of month following the calendar
restaurants, roads besides funeral expenses, rehabilitation
month in which the wages fall due.
motor transport allowance, medical benefit to insured
undertakings, equip- person and his or her spouse.
ment maintenance
staff in the hospitals.

WAGES FOR ESI CONTRIBUTIONS Contribution Contribution

Registers/files to be maintained by the employers period period
To be deemed as wages NOT to be deemed as
wages If the person joined
 Basic pay 1st April to 30th insurance employment for
 Dearness allowance  Contribution paid by kthe September. the first time, say on 5th
employer to any January, his first
 House rent allowance contribution period will be
pension/provident fund or
 City compensatory under ESI Act. 1st October to 31st from 5th January to 31st
allowance March March and his corresponding
 Sum paid to defray special
 Overtime wages (but not first benefit will be from 5th
expenses entailed by the
to be taken into account October to 31st December.
nature of employment –
for determining the Daily allowance paid for
coverage of an employee) the period spent on tour.
 Payment for day of rest Penalties
 Gratuity payable on
 Production incentive discharge.
Different punishment have been prescribed for different
 Bonus other than  Pay in lieu of notice of
statutory bonus retrenchment types of offences in terms of Section 85: (I) (six
 Night shift allowance compensation months imprisonment and fine Rs.5000), (ii) (one year
 Heat, Gas & Dust  Benefits paid under the
imprisonment and fine), and 85-A: (five years
allowance ESI Scheme.
 Encashment of leave imprisonment and not less to 2 years) and 85-C(2) of
 Payment for unsubstituted
holidays  Payment of Inam which the ESI Act, which are self explanatory. Besides these
 Meal/food allowance does not form part of the provisions, action also can be taken under section 406
terms of employment.
 Suspension allowance of the IPC in cases where an employer deducts
 Washing allowance for
 Lay off compensation livery contributions from the wages of his employees but does
 Children education  Conveyance Amount not pay the same to the corporation which amounts to
allowance (not being towards reimbursement
reimbursement for actual for duty related journey criminal breach of trust.
tuition fee)
 FACTORIES ACT, 1948
CHECK LIST

Employer to ensure health of Registration &

Applicability of the Act workers pertaining to Renewal of Factories
Any premises whereon 10 or  Cleanliness Disposal of wastes and
more persons with the aid of effluents To be granted by Chief
power or 20 or more workers  Ventilation and temperature dust Inspector of Factories on
are/were without aid of power and fume submission of prescribed
working on any dayd preceding  Overcrowding Artificial form, fee and plan.
12 months, wherein Manufactur- humidification Lighting Secs. 6
ing process is being carried on.  Drinking water Spittons.
Sec.2(ii) Secs. 11 to 20

Safety Measures  Self-acting machines.

 Casing of new machinery. Welfare Measures
 Facing of machinery  Prohibition of employment of
women and children near  Washing facilities
 Work on near machinery in motion.
cotton-openers.  Facilities for storing and drying
 Employment prohibition of young persons on
 Hoists and lifts. clothing
dangerous machines.
 Facilities for sitting
 Striking gear and devices for cutting off
 First-aid appliances – one first aid
power.
box not less than one for every
150 workers.
Working Hours, Spread Over & Overtime of Adults  Canteens when there are 250 or
Weekly hours not more than 48. more workers.
Daily hours, not more than 9 hours.  Shelters, rest rooms and lunch
Intervals for rest at least ½ hour on working for 5 hours. rooms when there are 150 or more
Spreadover not more than 10½ hours. workers.
Overlapping shifts prohibited.  Creches when there are 30 or
Extra wages for overtime double than normal rate of wages. more women workers.
Restrictions on employment of women before 6AM and beyond 7 PM.  Welfare office when there are 500
Secs. 51, 54 to 56, 59 & 60 or more workers.

Employment of Young Persons Annual Leave with Wages

 Prohibition of employment of young children e.g. 14 years. A worker having worked for 240 days @
 Non-adult workers to carry tokens e.g. certificate of fitnekss. one day for every 20 days and for a
 Working hours for children not more than 4 ½ hrs. and not permitted to child one day for working of 15 days.
work during night shift. Accumulation of leave for 30 days.
Secs. 51, 54 to 56, 59 & 60 Secs. 79

OFFENCE PENALTIES Sec.92 to

 For contravention of the Provisions of the Act or Rules
 On Continuation of contravention
 On contravention of Chapter IV pertaining to safety or
dangerous operations.
 Subsequent contravention of some provisions
 Obstructing Inspectors
 Wrongful disclosing result pertaining to results of analysis.
 For contravention of the provisions of Sec.41B, 41C and
 Imprisonment upto 2 years or fine upto Rs.1,00,000 or both
 Rs.1000 per day
 Not less than Rs.25000 in case of death.
 Not less than Rs.5000 in case of serious injuries.
 Imprisonment upto 3 years or fine not less than Rs.10,000
which may extend to Rs.2,00,000.
 Imprisonment upto 6 months or fine upto Rs.10,000 or
both.
 Imprisonment upto 6 months or fine upto Rs.10,000 or
both.
 Imprisonment upto 7 years with fine upto Rs.2,00,000 and
41H pertaining to compulsory disclosure of information by on continuation fine @ Rs.5,000 per day.
occupier, specific responsibility of occupier or right of  Imprisonment of 10 years when contravention continues
workers to work imminent danger. for one year.

EMPLOYMENT EXCHANGES
(COMPULSORY NOTIFICATION OF VACANCIES)
ACT, 1959 & THE RULES
CHECK LIST

Applicability
Applicabilityof
ofthe
theAct
Act WhenAct
When Actisisnot
notapplicable
applicable
Object of the Act Any employment
Any employment in in agriculture,
agriculture,
By
Bynotification
notificationininthe
theOfficial
Official horticultureetc.
horticulture etc.
To provide for the Gazette,
Gazette, appoint
appoint inin this this Anyemployment
Any employmentinindomestic
domesticservice.
service.
compulsory behalf
behalf forfor such
such State
State and
and Any employment,
Any employment, the the total
total duration
duration ofof
notification of different
different datesdates may may be be whichisisless
which lessthan
thanthree
threemonths.
months.
vacancies to appointed
appointedfor fordifferent
differentstates
states Any employment
Any employment to to do
do unskilled
unskilled office
office
employment oror for
for different
different areas
areas ofof aa work.
work.
exchanges. State.
State. Anyemployment
Any employmentconnected
connectedwithwiththe
thestaff
staff
ofParliament.
of Parliament.
Sec.33
Sec.

Notification
Notificationof
ofvacancies
vacanciesto
toEmployment
EmploymentExchanges
Exchanges Furnishing
Furnishinginformation
informationand
and
returns
returns
Before
Beforefilling
fillingup
upany
anyvacancy
vacancyas asprescribed.
prescribed.
Employer
Employer notnot obliged
obliged to
to recruit
recruit the
the person
person through
through employment
employment The
Theemployer
employerininevery
everyestablishment
establishment
exchange.
exchange. ininpublic
publicsector
sectorininthat
thatState
Stateororarea
area
To
Tonotify
notifythe
thevacancies
vacanciesto tosuch
suchemployment
employmentexchanges
exchangesasasmay
maybe
be shall
shall furnish such information orreturn
furnish such information or return
prescribed.
prescribed. asasmay
maybebeprescribed
prescribedininrelation
relationtoto
Secs.
Secs.44 vacancies
vacanciesthat
thathave
haveoccurred
occurredor orare
are
about
abouttotooccur
occurininthat
thatestablishment,
establishment,
to
to such employmentexchanges
such employment exchangesas as
may
maybe beprescribed.
prescribed.
Secs.
Secs.55

Time
Time limit
limit for
for notification
notification of
of vacancies
vacancies &
& selection
selection Submission
Submissionof ofReturns
Returns
Quarterly
QuarterlyininForm
FormER-I
ER-I
Atleast
Atleast 15
15 days
days before
before the
the applicants
applicants will
will be
be interviewed
interviewed or
or tested.
tested. BIENNIAL
BIENNIALReturn
ReturnForm
FormER-II
ER-II
Within
Within 3030 days
days by by 30
30th June,
th
June, 31
st
31st
Employer
Employer to
to furnish
furnish the
the result
result of
of selection
selection within
within 15
15 days.
days. March, 30 thth
September
March, 30 September & 31st & 31 st

Rules
Rules 55 December.
December.
Rule
Rule66

PENALTIES

An
An employer
employer contravening
contravening the the provisions
provisions of of Sec.4(1)
Sec.4(1) oror (2).
(2).
Fine
Fine upto Rs.500 for first offence and for every subsequent offence
upto Rs.500 for first offence and for every subsequent offence fine
fine Rs.1000.
Rs.1000.
IfIf any
any person
person ––
Required
Required to to furnish
furnish any
any information
information or or return
return ––
Refuses
Refuses or neglects to furnish such information
or neglects to furnish such information or or return,
return, or
or
Furnishes
Furnishes or causes to be furnished any information or
or causes to be furnished any information or return
return which
which hehe knows
knows to
to be
be false,
false, or
or
Refuses
Refuses to to answer,
answer, or or gives
gives aa false
false answer
answer to to any
any question
question necessary
necessary for
for obtaining
obtaining any
any information
information required
required to
to be
be
furnished
furnished under
under section
section 5;5; or
or

Impedes
Impedes the
the right
right of
of access
access toto relevant
relevant records
records or
or documents
documents oror the
the right
right of
of entry
entry conferred
conferred by
by section
section 6;
6; he
he shall
shall be
be
punishable
punishable for
for the
the first
first offence
offence with
with fine
fine upto
upto Rs.250
Rs.250 and
and for
for every
every subsequent
subsequent offence
offence with
with fine
fine upto
upto Rs.250
Rs.250 and
and for
for
every
every subsequent
subsequent offence
offence with
with fine
fine upto
upto Rs.500.
Rs.500. Rules
Rules
77
 INDUSTRIAL DISPUTES ACT, 1947
Object
Object of
of the
the Act
Act
Provisions
Provisions for
for investigation
investigation and
and settlement
settlement of
of industrial
industrial disputes
disputes and
and for
for certain
certain other
other purposes.
purposes.

Important Clarifications Power of Labour Court to give Right of a Workman during Pendency of
Industry – has attained wider meaning than defined Appropriate Relief Proceedings in High Court
except for domestic employment, covers from Labour Court/Industrial Tribunal can Employer to pay last drawn wages to
barber shops to big steel companies. Modify the punishment of dismissal or reinstated workman when proceedings
Sec.2(I) discharge of workmen and give appropriate challenging the award of his
Works Committee–Joint Committee with equal number of relief including reinstatement. Sec.11A reinstatement are pending in the
employers and employees’ representatives for discussion of higher Courts. Sec.17B
certain common problems. Sec.3
Conciliation–is an attempt by a third party in helping to Persons Bound by Settlement
settle the disputes Sec.4  When in the course of conciliation Period of Operation of
Adjudication – Labour Court, Industrial Tribunal or proceedings etc., all persons working Settlements and
National Tribunal to hear and decide the dispute. or joining subsequently. Awards
Secs.7,7A & 7B  Otherwise than in course of settlement  A settlement for a period as
upon the parties to the settlement. agreed by the parties, or
Sec.18  Period of six months on signing
Lay off & Payment of Compensation – of settlement.
Conditions for Laying off  An award for one year after its
Failure, refusal or inability of an employer to provide enforcement. Sec.19
work due to Notice of Change
 Shortage of coal, power or raw material. 21 days by an employer to workmen Prior Permission for Lay off
 Accumulation of stocks. about changing the conditions of service When there are more than 100
 Breakdown of machinery. as provided in Ivth Schedule. Sec.9A workmen during proceeding 12
 Natural calamity. Sec.25-C months. Sec.25-M

Lay off Compensation Prohibition of Strikes & Lock Outs

Payment of wages except for  Without giving to the employer notice of strike, as During the pendency of proceedings before a Labour Court,
intervening weekly holiday hereinafter provided, within six weeks before striking. Tribunal or National
compensation 50% of total or basic  Within fourteen days of giving such notice.  Tribunal and two months, after the conclusion of such
wages and DA for a period of lay  Before the expiry of the date of strike specified in any such proceedings.
off upto maximum 45 days in a notice as aforesaid.  During the pendency of arbitration proceedings before an
year. Sec.25-C  During the pendency of any conciliation proceedings before a arbitrator and two months after the conclusion of such
conciliation officer and seven days after the conclusion of proceedings, where a notification has been issued under Sub-
such proceedings. Section(3A) of section 10A
 During the pendency of conciliation proceedings before a During any period in which a settlement or award is in operation,
Prior Permission by the
Board and seven days after the conclusion of such in respect of any of the matters covered by the settlement or
Government for
proceedings. award. Secs.22&23
Retrenchment
 When there are more than 100 (in UP
300 or more) workmen during
preceding 12 months. Conditions of service etc. to remain unchanged under certain circumstances during pendency of proceedings
 Three months’ notice or wages
 Not to alter to the prejudice of workmen concerned the condition of service.
thereto.
 Form QA  To seek Express permission of the concerned authority by paying one month’s wages on dismissal, discharge
 Compensation @ 15 days’ wages. or punish a protected workman connected with the dispute.
Sec. 25-N  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
Retrenchment of Workmen Compensation & Conditions
union as stipulated in
 Workman must have worked for 240 days.
fifth schedule
 Retrenchment compensation @ 15 days’ wages for every completed year to be calculated at last drawn wages
Both the employer and the Union can be
punished. Sec.25-T  One month’s notice or wages in lieu thereof.
 Reasons for retrenchment
 Complying with principle of ‘last come first go’.
Closure of an Undertaking  Sending Form P to Labour Authorities.
60 days’ notice to the labour authorities for
intended closure in Form QA. Sec.25FFA
Prior permission atleast 90 days before in Conditions of service etc. to remain unchanged under certain circumstances during pendency of proceedings
Form O by the Government when there are  Not to alter to the prejudice of workmen concerned the condition of service.
100 ore more workmen during preceding 12
 To seek Express permission of the concerned authority by paying one month’s wages on dismissal, discharge or punish a
months (in UP 300 or more workmen)
protected workman connected with the dispute.
Sec.25-O
 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 <Punishment

Sec.25-U Committing unfair labour practices Imprisonment of upto 6 months or with fine upto Rs.3,000.
26 Illegal strike and lock-ourts Imprisonment upto one month or with fine upto Rs.50(Rs.1000 for lock-out) or
27 Instigation etc. for illegal strike or lock-outs. with both.
28 Giving financial aid to illegal strikes and lock-outs. Imprisonment upto 6 months or with fine upto Rs.1,000
29 Breach of settlement or award Imprisonment for 6 months or with fine upto Rs.1,000
30 Disclosing confidential information pertaining to Sec.21 Imprisonment upto 6 months or with fine.On continuity of offence fine uptoRs.200
31A Closure without 60 days’ notice under Sec.25 FFA per day
Contravention of Sec.33 pertaining to change of conditions of Imprisonment upto 6 months or with fine upto Rs.1,000
Service during pendency of dispute etc. Imprisonment upto 6 months or with fine upto Rs.5,000
31 When no penally is provided for contravention Imprisonment upto 6 months or fine upto Rs.1,000. Fine upto Rs.100
 INDUSTRIAL EMPLOYMENT
(STANDING ORDERS) ACT, 1946 & THE RULES

CHECK-LIST

Matters to be provided in Standing orders

Applicability of Classification of workmen, e.g., whether permanent, temporary, apprentices,
the Act probationers, or badlis.
Every industrial Manner of intimating to workmen periods and hours of work, holidays, pay-days and
establishment wage rates.
wherein 100 or Shift working.
more (in many Attendance and late coming.
States it is 50 or Conditions of, procedure in applying for, and the authority which may grant, leave and
more). holidays.
Any industry Requirement to enter premises by certain gates, and liability to search.
covered by Bombay Closing and re-opening of sections of the industrial establishments, and temporary
Industrial Relations stoppages of work and the right and liabilities of the employer and workmen arising
Act, 1946. therefrom.
Industrial Termination of employment, and the notice thereof to be given by employer and
establishment workmen.
covered by M.P. Suspension or dismissal for misconduct, and acts or omissions which constitute
Industrial misconduct.
Employment Means of redressal for workmen against unfair treatment or wrongful exactions by the
(Standing Orders) employer or his agents or servants.
Act, 1961.
Sec. 1
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
Conditions for
retirement Transfer Medical aid in case of Accident Medical Examination Secrecy
Certification of
Exclusive service.
Standing Orders
Secs.2(g), 3(2) and Rule 2A
Every matter to be set
out as per Schedule
and Rule 2A.
The standing orders to
be in conformity with Procedure for Date of Posting of Standing
the provisions of the Certification of Standing Operation of Orders
Act. Orders Standing Orders
Certifying Officer to forward The text of the standing
a copy of draft standing On the date of orders as finally certified
orders to the trade union or expiry of 30 days shall prominently be
in the absence of union, to from certification or posted in English or in the
Submissions of the workmen of the on the expiry of 7 language understood by
Draft Standing industry. The trade union or days from majority of workmen on
Orders the other representatives, as authentication of special board at or near
the case may be, are to be Standing Orders. the entrance for majority
Within six months from heard. of workers.
the date when the Act Sec.5 Sec. 7 Sec. 9
becomes applicable to
an industrial
establishment. Five Temporary application Payment of Subsistence Allowance to the
copies of the draft of Model Standing Suspended Workers
Standing Orders are to Orders At the rate of fifty per cent, of the wages which the workman
be submitted to the Temporary application of was entitled to immediately proceeding the date of such
Certifying Officer under mod standing orders shall suspension, for the first ninety days of suspension.
the Act. be deemed to be adopted At the rate of seventy-five percent of such wages for the
till the standing orders as remaining period of suspension if the delay in the completion
Sec.3 submitted are certified. of disciplinary proceedings against such workman is not
Sec.12-A 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.

MATERNITY
BENEFIT ACT, 1961
CHECK LIST
Coverage of the Act Conditions for eligibility of
Object of the Act Upon all women employees either employed
To protect the dignity of benefits
directly or through contractor except domestic Women indulging temporary of
motherhood and the women employees employed in mines, factories,
dignity of a new person’s unmarried are eligible for
plantations and also in other establishments if the maternity benefit when she is
birth by providing for the State Government so decides. Therefore, if the
full and healthy expecting a child and has
State Government decides to apply this Act to worked for her employer for at
maintenance of the women employees in shops and commercial
woman and her child at least 80 days in the 12 months
establishments, they also will get the benefit of immediately proceeding the
this important time when this Act. Bihar, Punjab Haryana, West Bengal,
she is not working. date of her expected delivery
U.P., Orissa and Andhra have done so. Sec. 5.

Cash Benefits Conditions for eligibility of

benefits
Leave with average pay for six weeks before the delivery.
Leave with average pay for six weeks after the delivery. Ten weeks before the date of her
A medical bonus of Rs.25 if the employer does not provide free medical care to the woman. expected delivery, she may ask
An additional leave with pay up to one month if the woman shows proof of illness due to the the employer to give her light
pregnancy, delivery, miscarriage, or premature birth. work for a month. At that time
In case of miscarriage, six weeks leave with average pay from the date of miscarriage. she should produce a certificate
Non Cash Benefits/Privilege that she is pregnant.
Light work for ten weeks (six weeks plus one month) before the date of her expected delivery, if she She should give written notice to
the employer about seven weeks
asks for it.
before the date of her delivery
Two nursing breaks in the course of her daily work until the child is 15 months old. that she will be absent for six
No discharge or dismissal while she is on maternity leave. weeks before and after her
No change to her disadvantage in any of the conditions of her employment while on maternity delivery. She should also name
leave. the person to whom payment will
Pregnant women discharged or dismissed may still claim maternity benefit from the employer. be made in case she can not take
Exception : Women dismissed for gross misconduct lose their right under the Act for Maternity it herself.
Benefit She should take the payment for
the first six weeks before she
goes on leave.
She will get payment for the six
Leave for Miscarriage Leave for illness arising out of weeks after child-birth within 48
& Tubectomy Operation pregnancy etc. etc. hours of giving proof that she
Leave with wages at the rate of maternity A woman suffering from illness arising has had a child.
She will be entitled to two nursing
benefit, for a period of six weeks our of pregnancy, delivery, premature
breaks of fifteen minutes each in
immediately following the day of her birth of child (Miscarriage, medical the course of her daily work till
miscarriage or her medical termination termination of pregnancy or tubectomy her child is fifteen months old.
of pregnancy. operation) be entitled, in addition to Her employer cannot discharge her
Entitled to leave with wages at the rate of the period of absence allowed to her or change her conditions of
maternity benefit for a period of two leave with wages at the rate of service while she is on maternity
weeks immediately following the day of maternity benefit for a maximum leave.
her tubectomy operation. period of one month. Sec. 5.
Sec. 10

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. Sec.

Failure to Display Forfeiture of maternity benefit

Extract of Act If permitted by her employer to absent herself under the provisions of section 6 for any period
Imprisonment may during such authorized absence, she shall forfeit her claim to the maternity benefit for such
extend to one year or period.
fine. 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. Sec. 18
 MINIMUM WAGES ACT, 1948
CHECK LIST

Object of the Act Fixation of Minimum Rates of Wages

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
Fixing Hours for
Normal Working
 Shall constitute a normal
working day inclusive of
one or more specified
intervals.
 To provide for a day of
rest in every period of
seven days with
remuneration.
 To provide for payment
for work on a day of rest
at a rate not less than
the overtime rate.. Sec.
13
 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. Sec. 3
Procedure for fixing and Composition of Payment of
revising Minimum Rates of Committee Minimum Rates
Wages Representation of of Wages
Appointing Committee issue of employer and employee Employer to pay to every
Notification etc. Sec. 5 in schedule employer in employee engated in
equal number and schedule employment at a
independent persons not
rate not less than
Overtime minimum rates of wages
exceeding 1/3rd or its as fixed by Notification by
To be fixed by the hour, by the total number one such not making deduction
day or by such a longer wage- person to be appointed other than prescribed.
period works on any day in by the Chairman. Sec.12
excess of the number of hours Sec. 9
constituting normal working day.
Payment for every hour or for
part of an hour so worked in Wages of workers who works for less than normal
excess at the overtime rate working days
double of the ordinary rate of Save as otherwise hereinafter provided, be entitled to
(1½ times or for agriculture receive wages in respect of work done by him on that day
labour) Sec. 5 as if he had worked for a full normal working day.
Sec.15

Wages for two class of work Maintenance of registers and records

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. Sec. 16
 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 Sec. 18

Minimum time rate wages for piece work Claims by employees

Not less than minimum rates wages as  To be filed by before authority constituted under the Act within 6 months.
fixed . Sec. 17  Compensation upto 10 times on under or non-payment of wages Sec. 16

PENALITIES Offence Punishment

For paying less than minimum rates of Imprisonment upto 6 months or

wages with fine upto Rs.500/-

Sec. 20 For contravention of any provisions Imprisonment upto 6 months or

pertaining to fixing hours for normal with fine upto Rs.500/-
working day etc.
 SALES PROMOTION EMPLOYEES
(CONDITIONS
OF SERVICE) ACT, 1976 & THE RULES
CHECKLIST
Object
Object of
of the
the Act
Act
To
To regulate
regulate certain
certain conditions
conditions of
of service
service of
of sales
sales promotion
promotion employees
employees in
in certain
certain establishments.
establishments.

Applicability of the Act  Leave Maximum limit upto which

 Earned leave and cash compensation on earned leave
Whole of India with effect from earned leave not availed of.  Can be accumulated 180
6.3.1976  On full wages for not less than 1/11 th of days of which the employee
the period spent on duty. can avail himself 90 days at a
 Leave on medical Certificate time.
 On one-half of the waves for not  Encashment of leave 120
Applicability of other Acts
less than 1/18th of the period of service. days.
 Workmen’s Compensation
 Cashable on voluntary relinquishment or Sec.14
Act, 1923
termination other than by way of
 Industrial Disputes Act, 1947
punishment.
 Minimum Wages Act, 1948 Issue of Appointment
Sec.4
 Maternity Benefit Act, 1961 Letter in Form A
 Payment of Bonus Act, 1965  Within three months
 Payment of Gratuity Act, Number of holidays in a year from the commencement of
1972 10 in calendar year the Act and in other case on
Rule 4 appointment.
Sec.5 Rule 22
Maintenance of register
 A register of sales promotion Compensatory holidays
employees in Form B. Within 30 days of the day when he was Wages for holidays
 Service Books for every required to work. Rule 5 To be entitled for wages on all
employee in Form C holidays as if he was on duty.
 A register of service books in Rule 6
Form D Application for leave
 Leave account of each When other than casual leave, not less than
Recording of reason for
employee in Form E. one month before commencement of leave
refusal or
Sec. 7 Rule 23 except for urgent or unforeseen
postponement of
circumstances.
leave.
Rule 9
Wages for weekly day of Rule 10
rest
Entitled to wages on weekly Holidays intervening during the period Medical leave
days of rest as if he was of leave
on duty. Except casual leave grantged or day of On production of medical
Rule 7 weekly rest, other holidays shall be certificate.
part of leave. Rule 15
Affixing of holidays to leave Rule 12
Premixing or suffixing of any
leave not permissible
Extraordinary leave Casual leave
Rule 11

At the discretion of the employer 15 days in a calendar year.

Quarantine leave Rule 15
Rule 17
Upto 30 days on the
recommendations of
authorised medical
attendant or Public
Health Officer.
 PENALTY
On contravention of provisions relating to ‘Leave’ Issue of Appointment Letter or
Maintenance of Registers fine upto Rs.1000 Sec.
9

TRADE UNIONS ACT, 1926

CHECKLIST

Object of the Act

Object of the Act
To provide for the registration of Trade Union and in certain respects
To provide for the registration of Trade Union and in certain respects
to define the law relating to registered Trade Unions
to define the law relating to registered Trade Unions

Registration
Registrationof
oftrade
tradeUnion
Union Registration
Registrationof
oftrade
tradeUnion
Union

Any 77 oror more

Any Prescribed
Prescribedform
formwith
withfollowing
followingdetails.
more members
members ofof aa trade
trade union
union may,
may, by
by subscribing
subscribing details.
their names to the rules of the trade union and its compliance. Names,
their names to the rules of the trade union and its compliance. Names, occupations
occupations and
and address
address of
of the
the members’
members’
place
placeof
ofwork.
least 10%,
10%, oror 100
There work.
There should
should bebe atat least 100 ofof the
the work-men,
work-men,
whichever
whichever is less, engaged or employed in the establishmentoror
is less, engaged or employed in the establishment Address
Addressofofits
itshead
headoffice;
office;and
and
industry
industrywith
withwhich
whichititisisconnected.
connected. Names,
Names, ages, addresses and occupations
ages, addresses and occupations of
of its
its
office
officebearers.
ItIthas
hason onthe
thedate
dateofofmaking
makingapplication
applicationnot notless than77persons
lessthan persons bearers.
as
as its members, who are workmen engaged or employedininthe
its members, who are workmen engaged or employed Sec.
establishment
the Sec.55
establishmentororindustry
industrywith
withwhich
whichititisisconnected.
connected.

Minimum
Minimumrequirements
requirementsfor Cancellation
for Cancellationof
of Criminal
Criminalconspiracy
conspiracyin
intrade
trade
membership
membershipofoftrade
tradeunion registration
union registration disputes
disputes
than10%
10%, ,oror100
Not IfIfthe
thecertificate
certificatehas
hasbeen
Notless
lessthan 100ofof been No
Nooffice
officebearer
bearerorormember
memberofofaaregistered
registered
the obtained
obtained by fraudorormistake
by fraud mistakeoror
theworkmen,
workmen,whichever
whicheverisisless,
less, trade
trade union shall be liable
union shall be liable toto punishment
punishment
itithas
has ceased to exist orhas
ceased to exist or
minimumofof77, ,
subject has under
undersub subsection
section(2)
(2)ofofconspiracy
conspiracyu/s u/s120B
subjecttotoaaminimum wilfully 120B
engaged wilfullycontravened
contravenedany any ofof IPC
IPC in respect of any agreement made
in respect of any agreement
engaged or employedininan
or employed an provision made
establishments provisionofofthis
thisAct.
Act. between
between the the members
members for for the
the purpose
purpose ofof
establishmentsetc.
etc. IfIfititceases
Sec. ceases to havethe
to have therequisite
requisite furthering
furthering any such object of the Trade
any such object of the
Sec.9A9A number of members. Trade
number of members. Union.
Union.
Sec.
Sec.10 Sec.
10 Sec.1717

Disqualification
Disqualificationof
ofoffice
officebearers
bearersof
of Returns
Returns
Trade Union
Trade Union Annually
Annually toto the
the Registrar,
Registrar, on
on oror before
before such
such date
date as
as may
may bebe
prescribed, a general statement, audited in the prescribed
ageofof18
IfIfone prescribed, a general statement, audited in the prescribed
onehas
hasnot
notattained
attainedthe
theage 18years.
years. manner,
Conviction manner, ofof allall receipts
receipts and
and expenditure
expenditure ofofstevery
every registered
registered
Convictionfor
foran
anoffence
offenceinvolving
involvingmoral
moralturpitude.
turpitude. Trade Union during the year ending on the 31 stDecember.
Trade Union during the year ending on the 31 December.
Not
Notapplicable when55years
applicablewhen yearshave
haveelapsed.
elapsed. Sec.
Sec.28
28
Sec. 21-A
Sec. 21-A

Penalties Offence Punishment

 For making false entry in or any  Fine upto Rs.500. On continuing

omission in general statement
required for sending returns.
U/s 31
 For making false entry in the
form.
default, additional fault, Rs.5 for
each week (not exceeding Rs.50).
 Fine upto Rs.500.

 Supplying false information  Fine upto Rs.200.

U/s 32 regarding Trade Union
 PAYMENT OF BONUS ACT, 1965 & THE
RULES
CHECKLIST
Applicability of Act Establishment
Every factory where in 10 or more persons are employed with
the aid of power or Establishment includes
Departments, undertakings
An establishment in which 20 or more persons are employed and branches, etc.
without the aid of power on any day during an accounting year

Separate establishment

Computation of available surplus Components of Bonus If profit and loss accounts are
prepared and maintained in
Income tax and direct taxes as payable. Salary or wages includes respect of any such
Depreciation as per section 32 of Income dearness allowance but no department or undertaking or
Tax Act. other allowances e.g. branch, then such department
Development rebate, investment or over-time, house rent, or undertaking or branch is
development allowance. incentive or commission. treated as a separate
Sec.5 Sec.2(21) establishment.
Sec.3

Disqualification & Deduction of Bonus

Computation of gross
On dismissal of an employee for profit
 Fraud; or For banking company, as per
First Schedule.
 riotous or violent behaviour while on the premises of the establishment;
or Others, as per
 theft, misappropriation or sabotage of any property of the establishment Second Schedule
or Sec.4
 Misconduct of causing financial loss to the Employer to the extent that
bonus can be deducted for that year.
Eligible Employees
Secs. 9 & 18.
Employees drawing wages
upto Rs.3500 per month or
Eligibility of Bonus Payment of Minimum Bonus less.
8.33% of the salary or Rs.100 For calculation purposes
An employee will be entitled (on completion of 5 years after 1st Rs.2500 per month
only when he has worked for Accounting year even if there is no maximum will be
30 working days in that year. profit) taken even if an
Sec. 8 Sec.10 employee is drawing
Sec. 8 upto Rs.10,000 per
month.
Sec.12
Time Limit for Set-off and
Payment of Bonus Set-on
Within 8 months from the close of As per Schedule IV.
accounting y ear. Sec. 19 Sec. 15

Maintenance of Registers and Records etc.

 A register showing the computation of the allocable surplus referred to in clause (4) of section 2, in form A.

 A register showing the set-on and set-off of the allocable surplus, under section 15, in form B

 A register showing the details of the amount of bonus due to each of the employees, the deductions under
section 17 and 18 and the amount actually disbursed, in form C.
Sec.26, Rule 4
 Act not applicable to certain employees of LIC, General Insurance, Dock Yards, Red Cross, Universities & Educational
Institutions, Chambers of Commerce, Social Welfare Institutions, Building Contractors, etc. etc. Sec.32.

PENALTY For contravention of any provision of the Act or the Rule Upto 6 months or with fine upto Rs.1000. Sec.28

Sec.
1
PAYMENT OF Sec.
2(s)

Applicability
Applicability
GRATUITY Wages
Wages for
for
Calculation
Every
Everyfactory,
factory, ACT, 1972 & THE RULES Calculation

mine,
mine,oil oilfield,
field, @@ 1515 days’
days’ wages
wages
plantation,
plantation,port,port, for
for every
every
railways,
railways,company,
company, completed
completed year year as
as
shop,
shop,
establishment
establishmentor or
CHECKLIST ifif the
comprises
the month
comprises of
month
of 26
26
educational
educational days
days at the last
at the last
institutions
institutions drawn
drawn wages.
wages.
employing
employing10 10oror
more employees Sec.
more employees 2(e)

Employee
Employee Qualifying
Qualifyingperiod
period

Sec. All
Allemployees
employees On
Onrendering
renderingof of55
1 irrespective
irrespectiveof
of years’
years’service,
service,
status
statusororsalary
salary either
eithertermination,
termination, Rule 4
Calculation Calculation resignation
resignationor or
Calculation Calculation
Piece-rated Seasonal Entitlement
Entitlement retirement.
retirement.
Piece-rated Seasonal
On
Oncompletion
completion Display
employee
employee employee
employee Display of
of Notice
Notice
of
offive
fiveyears’
years’
service
serviceexcept
exceptinin On
@@1515days
days @@77days’
days’ On conspicuous
conspicuous
case
caseofofdeath
deathoror place
wages
wagesforfor wages
wagesforforevery
every place at at the
the main
main
disablement
disablement entrance
every
every completed
completedyear
year entrance in in English
English
completed
completed of
ofservice.
service. language
language or or the
the
year
yearon
onanan language
language
average
averageofof33 understood
understood by by
months’
months’ majority
majority of of
wages
wages employees
employees of of the
the
factory, etc.
factory, etc.
Sec.
4(3)
Rule 9
Sec.6 Maximum
Maximum
Rule 6 Ceiling
Ceiling
Mode
Modeof
of
payment Rule 9
Nomination
Nomination Rs.3,50,000
Rs.3,50,000 payment
Penalties
Penalties
To Cash
Cashor,
or,ififso
so
Tobe
beobtained
obtained Imprisonment
by
byemployer
employerafter
after
desired,
desired,by by Imprisonment for for 66
Bank
BankDraft
Draftor or months
months or or fine
fine
expiry
expiryof
ofone
one
Cheque
Cheque upto
upto Rs.10,000
Rs.10,000 forfor
year’s
year’sservice,
service,inin avoiding
avoiding to to make
make
Form
Form‘F’
‘F’ payment
payment by
by
making
making false
false state-
state-
Sec. ment
ment oror representa
representa
4(6) -tion.
-tion.
Sec.8 Forfeiture
Forfeitureof
ofGratuity
Gratuity Sec.
Rule 8 13 Imprisonment
Imprisonment not
not
Recovery
Recoveryof of On
On termination
termination of of an an Protection
Protectionof
of less than 3 months
less than 3 months
Gratuity
Gratuity employee
employee for
for moral
moral Gratuity
Gratuity and
and upto
upto one
one year
year
turpitude
turpitude or or riotous
riotous or or with
with fine
fine on
on default
default
To
Toapply
applywithin
within disorderly
disorderlybehaviour.
behaviour. Can’t
Can’tbe beattached
attached in
in comply-ing
comply-ing with
with
30
30days
daysininForm
FormII Wholly
Wholly oror partially
partially for
for wilfully
wilfully ininexecution
executionof
of the
the provisions
provisions of
of
when
whennotnotpaid
paid causing
causing loss,
loss, destruction
destruction of of any
anydecree
decree Act
Act or
or Rules.
Rules.
within
within30
30days
days property
propertyetc.
etc.
 PAYMENT OF WAGES ACT, 1936
CHECKLIST
Applicability of Act Object
Objectofofthe
theAct
Act Wages to be paid in
 Factory industrial Establishment To
To regulate the paymentof
regulate the payment ofwages
wagesofofcertain
certain current coins or
 Tramway service or motor classes
classesof
ofemployed
employedpersons
persons currency notes
transport service engaged in All wages shall be paid in
carrying passengers or good or Time of payment of wages current coins or currency
both by road for hire or reward. The wages of every person employed be notes or in both.
 Air transport service Dock, paid. After obtaining the
Wharf or Jetty  Inland vessel, When less than 1000 persons are employed authorization, either by
mechanically propelled shall be paid before the expiry of the 7 th day cheque or by crediting the
 Mine, quarry or oil-field of the following month. wages in employee’s bank
Plantation When more than 1000 workers, before the Account Sec. 6
 Workshop or other establishment expiry of the 10th day of the following
etc. month. Sec. 5
Coverage of Employees
Drawing average wage upto
Rs.6500 pm as amended w.e.f. Deduction made from wages
Deduction for absence
6.9.05. Deductions such as, fine, deduction for
from duties for
amenities and services supplied by the
unauthorised
Fines as prescribed by employer, advances paid, over payment of
absence
Not to imposed unless the wages, loan, granted for house-building or
employer is given an opportunity to other purposes, income tax payable, in
Absence for whole or any
show cause pursuance of the order of the Court, PF
part of the day –
To record in the register
contributions, cooperative societies,
If ten or more persons
Sec.8 premium for Life Insurance, contribution to
absent without reasonable
any fund constituted by employer or a trade
cause, deduction of wages
union, recovery of losses, ESI contributions
upto 8 days.
etc.etc. Sec. 7
Deductions for service
Sec. 9
rendered Deduction for damage or loss
When accommodation amenity or
service has been accepted by the For default or negligence of an employee
employee. resulting into loss. Show cause notice has to
Sec.11 be given to the employee. Sec.10

On contravention of S.5 (except sub-sec.4), S.7, S.8
(except Ss.8), S.9, S.10 (except Ss.2) and Secs.11 to 13.
 For failing to maintain registers or records; or
 Wilfully refusing or without lawful excuse neglecting to
furnish information or return; or
 Wilfully furnishing or causing to be furnished any
information or return which he knows to be false or
 Refusing to answer or wilfully giving a false answer to
any question necessary for obtaining any information
required to be furnished under this Act.
 Wilfully obstructing an Inspector in the discharge of his
duties under this Act; or
 Refusing or wilfully neglecting to afford an Inspector any
reasonable facility for making any entry, inspection etc.
 Wilfully refusing to produce on the demand of an
inspector any register or other document kept in
pursuance of this Act; or preventing any person for
appearance etc.
 On conviction for any offence and again guilty of
Contravention of same provision.
 Failing or neglecting to pay wages to any employee
Fine not less than Rs.1000 which may extend to Rs.5000.
On subsequent conviction fine not less than Rs.5000, may
extend to Rs.10,000. On contravention S.4, S.5(4), S6,
S.8(8), S.10(2) or S.25 fine not less than Rs.1000. – may
extend to Rs.5000. On subsequent On conviction fine not
less.
 Fine which shall not be less than Rs.1000 but may
extend to Rs.5000 – On record conviction fine not less
than Rs.5000, may extend to Rs.10,000.
 For second or subsequent conviction, fine not less than
Rs.5000 but may extend to Rs.10,000
Fine not less than Rs.1000 extendable
Upto Rs.5000 – On subsequent conviction fine
not less than Rs.5000 – may extent to Rs.10,000
 Imprisonment not less than one month extendable upto
six months and fine not less than Rs.2000 extendable
upto Rs.15000.
 Additional fine upto Rs.100 for each day.
 WORKMEN’S COMPENSATION
ACT, 1923
CHECKLIST
Coverage of Workmen Employer’s liability to pay
Applicability All workers irrespective of their status or compensation to a workman
salaries either directly or through On death or personal injury resulting into
All over India contractor or a person recruited to work total or partial disablement or
Sec.1 abroad. Sec.1(3) occupational disease caused to a
workman arising out of and during the
course of employment.
Amount of compensation
 Where death of a workman results from the injury
 An amount equal to fifty per cent of the monthly wages of When an employee is not liable for
the deceased workman multiplied by the relevant factor on an compensation
amount of eighty thousand rupees, whichever is more.
 Where permanent total disablement results from the injury.  In respect of any injury which does
 An amount equal to sixty per cent of the monthly wages of result in the total or partial disablement
the injured workman multiplied by the relevant factor or an of the workman for a period exceeding
amount of ninety thousand rupees, whichever is more three days.
Procedure for calculation  In respect of any injury, not resulting in
Higher the age – Lower the compensation death or permanent total disablement
 Relevant factor specified in second column of Schedule IV giving caused by an accident which is directly
slabs depending upon the age of the concerned workman. attributable to-
 Example : In case of death.  The workman having been at the time
 Wages Rs.3000 PM ● Age 23 years thereof under the influence of drink or
 Factor as schedule IV Rs.19.95 drugs, or
 Amount of compensation Rs.329935  Willful disobedience of the workman to
 In case of total disablement Rs.395910. an order expressly given, or to a rule
Sec. 4 expressly framed, for the purpose of
securing the safety of workmen, or
Wages Notice  Willful removal or disregard by the
Accident workman of any safety guard or other
When the monthly wages are device which he knew to have been
more than Rs.4000 per month As soon as provided for the purpose of securing
it will be deemed Rs.4000. Practicable the safety of workman.
Sec.4 Exh.b Sec. 10 Sec.3(a) & (b)

Report of accident Bar upon contracting out

Rule 11 Form EE
Any workman relinquishing his right for
Report of fatal Accident and Serious Injury within 7 days to the personal injury not permissible.
Commissioner (not application when ESI Act applies). Sec.14
Sec.10B

PENALTY

 In case of default by employer  50% of the compensation amount + interest to be paid to the
 Deposit of Compensation workman or his dependents as the case may be.
 Within one month with the Compensation Commissioner
Sec.4A