A BRIEF CHECK LIST OF

LABOUR LAWS

The labour laws

APPRENTICES ACT, 1961

CHECKLIST

Object of the Act Applicability of the Apprenticeship

Promotion of new manpower at Act Advisor
skills. Improvement/refinement of Areas and industries as Central Apprenticeship
old skills through theoretical and notified by the Central Advisor – when
practical training in number of Government appointed by Central
trades and occupation Sec. 1 Government.

Industry Qualification for being trained as an Apprentice

A person cannot be an apprentice in any designated
Industry means any industry or trade unless
business or in which any trade,  He is not more than 14 years of age;
occupation or subject/field in  He satisfies such standard of education
engineering or technology or any And physical fitness as
vocational course may be specified May be prescribed. Sec. 3
as a designated trade
Period of
Contract of Apprenticeship Conditions for Novation of Apprentic
To contain such terms and Contract of Apprenticeship eship
conditions as may be agreed
Training to be
to by the apprentice, or his • There exists an apprenticeship Determined by
guardian (in case he is a contract. the
minor) and employers. • The employer is unable to fulfil
his obligation.
Obligations of
Termination of • The approval of the
Employers
Apprenticeship Apprenticeship Advisor is
obtained. • To provide the
On the expiry of the period of
apprentice with
Apprenticeship training. • Agreement must be
the training in
On the application by either of registered with the
his trade.
the parties to the contract to Apprenticeship
the Apprenticeship Advisor • To ensure that
Sec. 6 a person duly
qualified is
Number of Apprentices in placed in
Payment to Apprentices Designated Trade charge of the
The employer to pay such stipend at To be determined by The training of the
a rate of not less than the prescribed Central Government after apprentice.
minimum rate as may be specified. consulting the Central • To carry out
Sec. 6 Apprenticeship Council contractual
Sec.8 obligations.

Obligations of Apprentice Employer’s liability to

 To learn his trade conscientiously, diligently. pay compensation
 To attend practical and instructional classes regularly. for injury
 To carry out all lawful orders. As per provisions of
 To carry out his contractual obligations. Workmen’s
Health safety & Welfare measures for Apprentices Compensation Act.
As per Factories Act or Mines Act as the case may be
when undergoing training. Offences & Punishment
Hours of work Imprisonment of a term
 42 to 48 in a week while on theoretical training. upto 6 months or with
fine when employer (I)
 42 in a week while on basic training.
engages as an
 42 to 45 in a week in second year of training. 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 being so engaged or
approved by Apprenticeship Advisor. (ii) fails to carry out
Leave and Holidays the terms and
 Casual leave for the maximum period of 12 days in a year. conditions of a
 Medical leave for the maximum period of 15 days and the contract of
accumulated leave upto 40 days in a year. apprenticeship, or (iii)
 Extraordinary leave upto a maximum period of 10 days in contravenes the

CONTRACT LABOUR ACT, 1970

a year. provisions of the Act
Sec. 15
(REGULARATION relating to the number
& ABOLITION)

& THE RULES

CHECKLIST
Applicability Registration of
Every establishment in which 20 or Establishment
Object of the Act more workmen are employed or Principal employer
To regulate the were employed on any day of the employing 20 or more
employment of preceding 12 months as contract workers through the
contract labor in labor. contractor or the
certain establishments Every contractor who employs or who contractor(s) on deposit of
and to provide for its employed on any day of the required fee in Form 1
abolition in certain preceding twelve months 20 or
circumstances and for more workmen. Sec. 7
matters connected Sec. 1
therewith. Revocation of
Registration
Prohibition of Employment of Licensing of Contractor
When obtained by
Contract Labour Engaging 20 or more than
Misrepresentation or
Only by the appropriate Government 20 workers and on
suppression
through issue of notification after deposit of required fee
Of material facts etc. after
consultation with the Board (and not in Form IV.
opportunity to the
Courts) can order the prohibition of Valid for specified
principal
employment of contract labor. period.Sec.12, Rule 21
Employer
Sec. 10 Sec. 9
Revocation or Suspension & Welfare measures to be taken by the Contractor
Amendment of Licences Contract labor either one hundred or m ore em ployed by a
When obtained by misrepresentation or contractor for one or m ore canteens shall be provided and
suppression of material facts. m aintained.
Failure of the contractor to comply with First Aid facilities.
the conditions or contravention of Act Num ber of rest-room s as required under the Act.
or the Rules. Sec. Drinking water, latrines and washing facilities.
Sec. 16 & 17
14
Liability of Principal Employer
Laws, Agreement or standing To ensure provision for canteen, restroom s, sufficient supply of
orders inconsistent with the drinking water, latrines and urinals, washing facilities.
Act-Not Permissible Principal employer entitled to recover from the contractor for
Unless the privileges in the contract providing such am enities or to m ake deductions from am ount
between the parties or more favorable M uster Roll, W ages Register, Deduction Register and Overtim e Register
payable. Sec. 20
by Contractor
than the prescribed in the Act, such
Every contractor shall
contract will be invalid and the Maintain Muster Roll and a Register of Wages in Form XVI and Form XVII
workers will continue to get m ore respectively when combined.
favorable benefits. Register or wage-cum-Muster Roll in Form XVII where the wage period is a
Sec. 20 fortnight or less.
Registers of Contractors Maintain a Register of Deductions for damage or loss, Register or Fines and
Principal em ployer Register of Avances in Form XX, from XXI and Form XXII respectively.
To m aintain a register of contractor in Maintain a Register of Overtim e in Form XXIII.
To issue wage slips in Form XIX, to the workmen at least a day prior to the
respect of every establishm ent in
disbursement of wages.
Form XII. Obtain the signature or thumb impression of the worker concerned against the
Contractor entries relating to him on the Register of wages or Muster Roll-Cum-Wages
Rule 74 Register.
To m aintain register of workers for When covered by Paym ent of Wages Act, register and records to be maintained
each registered establishm ent in Form under the rules
XIII. Muster Roll, Register of wages, Register of Deductions, Register of Overtime,
To issue an em ploym ent card to each Register of Fines, Register of Advances, Wage slip.
Rule 79
worker in Form XIV.
To display an abstract of the act and Rules in English and Hindi and in the
To issue service certificate to every language spoken by the Majority of workers in such form s as may be approved
workm an on his term ination in Form by appropriate authority
XV. Rules 75, 76 and 77 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
PENALTIES 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,
EMPLOYEES’ PROVIDENT FUNDS
additional fine upto Rs.100 per day & MISC.
PROVISIONS ACT, 1952
 & THE SCHEMES
CHECKLIST
Eligibility Applicability
Any person who is employed • Every establishment which is factory engaged in any industry
for work of an establishment specified in Schedule 1 and in which 20 or more persons are
or employed through employed.
contractor in or in connection • Any other establishment employing 20 or more persons which
with the work of an Central Government may, by notification, specify in this behalf.
establishment. • Any establishment employing even less than 20 persons can be
Payment of Contribution covered voluntarily u/s 1(4) of the Act.
• The employer shall pay the
contribution payable to the Benefits
EPF, DLI and Em ployees’ Employees covered enjoy a benefit of Social Security in the form of
Pension Fund in respect of the an unattachable and unwithdrawable (except in severely restricted
m em ber of the Em ployees’ circumstances like buying house, marriage/education, etc.) financial
Pension Fund employed by him nest egg to which employees and employers contribute equally
directly by or through a throughout the covered persons’ employment.
contractor. This sum is payable normally on retirement or death. Other Benefits
• It shall be the responsibility of include Employees’ Pension Scheme and Employees’ Deposit Linked
the principal em ployer to pay Insurance Scheme.
the contributions payable to
the EPF, DLI and Em ployees’ Rates of Contribution
Pension Fund by him self in
respect of the em ployees
SCHEM E EM PLOYEE’S EM PLOYER’S CENTRAL
directly em ployed by him and
GOVT’S
also in respect of the
Am ount > 8.33%
em ployees directly em ployed
(in case
by him and also in respect of
where
the em ployees em ployed by or
Clarification about contributio
Contribution Provident Fund n is 12% of
After revision in wage ceiling from Schem 12% 10%) NIL
Rs.5000 toRs.6500w.e.f. 1.6.2001 e 10% (in case of
per month, the governm ent will certain
continue to contribute 1.16% upto Establishments
the actual wage of m aximum as per details
Rs.6500 per m onth towards given earlier)
Employees’ Pension Schem e. The Insurance
em ployer’s share in the Pension Schem NIL 0.5 NIL
Schem e will be Rs.541 w.e.f. e
1.6.2001.
Under Em ployees’ Deposit-Linked Damages
Insurance Schem e the contribution
@ 0.50% is required to be paid • Less than 2 months ….@ 17% per
upto a maximum limit of Rs.6500.
The employer also will pay annum
administrative charges @ 0.01%
on m axim um oflim it of Rs.6500
Applicability • Two months and above but less than upto four months
whereas
the Act & an exempted
establishm
Scheme ent will pay inspection
….@22% per annum
charges
Is @
extended0.005% in on the total
wages paid.
area-wise to
Notes:
factories using
The
powerabove clarification
and is given by Penal Provision
taking wages10upto
em ploying or a m axim um of Liable to be arrested without warrants being a cognizable offence.
Rs.6500 towardsand
m ore persons wage (basic+DA).
Since
to annon-power
excluded em ployee i.e. Defaults by employer in paying contributions or
drawing
using wages more than Rs.6500
can also becom e mem ber of the inspection/administrative charges attract imprisonment upto 3 years
m anufacturing
Fund
units and the and Schem es on joint

EMPLOYEES’ STATE INSURANCE

request andents
establish-m if, for instance, such and fines upto Rs.10, 000 (S.14). For any retrospective application,
an
emem ployee20
ploying is getting
or Rs.10, 000
per
m oremonth,
person his upto share towards all dues have to be paid by employer with damages upto 100% of
provident
Rs.7500/- fund contribution
per will be ACT, 1948 & the SCHEME
Rs.1200
m onth e.g. 12% w.e.f. and em ployer’s arrears. CHECK LIST
1.4.2004. It has
also been extend-
ed upon shops,
hotels,
restaurants, roads
m otor transport
undertakings,
 in the hospitals.

Coverage THE ESI SCHEME TODAY

Of employees Rate of No. of im plem ented Centres
677
Contribution of No. of Em ployers covered2.38
Drawing wages the wages lacs
Upto No. of Insured Persons 85 lacs
Employers’ No. of Beneficiaries 330
Rs.10000/- per
month 4.75% lacs
Engaged either Employees’ No. of Regional Offices/SRO’s
directly or thru’ 1.75% 26
contractor No. of ESI Hospitals/Annexes
183
No. of ESI Dispensaries 1453
Manner and Time Limit No. of Panel Clinics 2950
For making Payment of contribution Benefits
To the employees under the Act
The total amount of contribution
(employee’s share and employer’s share) Medical, sickness, extended
is to be deposited with the authorized sickness for certain diseases,
bank through a challan in the prescribed enhanced sickness, dependents
form in quadruplicate on ore before 21st of maternity, besides funeral
month following the calendar month in expenses, rehabilitation
which the wages fall due. allowance, medical benefit to
insured person and his or her
spouse.

WAGES FOR ESI CONTRIBUTIONS Contribution

Registers/files to be maintained by the employers period
Contributio
n period If the person joined
To be deemed as NOT to be deemed as insurance employment
wages wages for the first time, say on
1st April to 30th 5th January, his first
• Basic pay • Contribution paid by September. contribution period will
• Dearness allowance kthe employer to any be from 5th January to
pension/provident fund 31st March and his
• House rent allowance or under ESI Act. 1st October to corresponding first
• City compensatory • Sum paid to defray 31st March benefit will be from 5th
allowance special expenses October to 31st
• Overtime wages (but entailed by the nature December.
not to be taken into of employment – Daily
account for allowance paid for the
determining the period spent on tour.
Penalties
coverage of an • Gratuity payable on
employee) Different punishment have been prescribed for
discharge.
• Payment for day of different types of offences in terms of Section
• Pay in lieu of notice of
rest retrenchment 85: (I) (six months imprisonment and fine
• Production incentive compensation Rs.5000), (ii) (one year imprisonment and fine),
• Bonus other than • Benefits paid under the
and 85-A: (five years imprisonment and not less
statutory bonus ESI Scheme.
• Night shift allowance • Encashment of leave to 2 years) and 85-C (2) of the ESI Act, which are

• Heat, Gas & Dust • Payment of Inam which self explanatory. Besides these provisions,
allowance does not form part of action also can be taken under section 406 of
• Payment for the terms of
employment. the IPC in cases where an employer deducts
unsubstituted holidays
• Washing allowance for contributions from the wages of his employees
• Meal/food allowance
livery but does not pay the same to the corporation
• Suspension allowance
• Lay off compensation FACTORIES ACT,
• Conveyance
1948
Amount
which amounts
towards
to criminal breach of trust.
•CHECK
Children LIST
education reimbursement for

Employer to ensure health of Registration &

Applicability of the Act workers pertaining to Renewal of
Any prem ises whereon 10 or Factories
• Cleanliness Disposal of wastes
m ore persons with the aid of
and effluents
power or 20 or more workers To be granted by Chief
• Ventilation and temperature
are/were without aid of Inspector of Factories
dust and fume
power working on any dyad on submission of
preceding 12 m onths, • Overcrowding Artificial
humidification Lighting prescribed form, fee
wherein Manufacturing and plan.
process is being carried on. • Drinking water Spittons.
Secs. 11 to 20 Secs. 6
Sec.2(ii)
 Safety Measures • Self-acting machines.
Welfare Measures
• Casing of new machinery.
• Facing of machinery • Prohibition of employment of
• Washing facilities
• Work on near machinery in motion. women and children near
cotton-openers. • Facilities for storing and
• Employment prohibition of young
drying clothing
persons on dangerous machines. • Hoists and lifts.
• Facilities for sitting
• Striking gear and devices for cutting off
power. • First-aid appliances – one first
aid box not less than one for
every 150 workers.
Working Hours, Spread Over & Overtime of Adults • Canteens when there are 250
Weekly hours not more than 48. or 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
Spreadover not more than 10½ hours. more 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
• Welfare office when there are
PM.
500 or more workers.
Secs. 51, 54 to 56, 59 & 60

Employment of Young Persons Annual Leave with Wages

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

OFFENCE
• 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 41H pertaining to compulsory disclosure of
information by occupier, specific responsibility of
occupier or right of workers to work imminent
danger.
PENALTIES
Sec.92 to
• Im prisonm ent 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 on continuation fine @ Rs.5, 000 per
day.
• Imprisonment of 10 years when contravention
continues for one year.

EMPLOYMENT EXCHANGES
(COMPULSORY NOTIFICATION OF VACANCIES)
When Act is not applicable
ACT, 1959 & THE RULES
Applicability of the
Act
Any employment in agriculture,
horticulture etc.
Object of the Act
CHECK LIST Any employment in domestic
By notification in the service.
To provide for the
Official Gazette, appoint Any employment, the total duration
compulsory
in this behalf for such of which is less than three
notification of
State and different dates months.
vacancies to
may be appointed for Any employment to do unskilled
employment
different states or for office work.
exchanges.
different areas of a State. Any employment connected with
the staff of Parliament.
Sec. 3
 Furnishing information and
returns

Notification of vacancies to Employment Exchanges The employer in every

establishment in public sector in
Before filling up any vacancy as prescribed. that State or area shall furnish
Employer not obliged to recruit the person through such information or return as may
employment exchange. be prescribed in relation to
To notify the vacancies to such employment exchanges as vacancies that have occurred or
may be prescribed. are about to occur in that
Secs. 4 establishment, to such
employment exchanges as may
be prescribed.
Secs. 5

Time limit for notification of vacancies & selection

Submission of Returns
Atleast 15 days before the applicants will be interviewed or Quarterly in Form ER-I
tested. BIENNIAL Return Form ER-II
Within 30 days by 30th June, 31st
Employer to furnish the result of selection within 15 days. March, 30th September & 31st
Rules December.
5 Rule 6

PENALTIES

An employer contravening the provisions of Sec.4 (1) or (2).

Fine upto Rs.500 for first offence and for every subsequent offence fine Rs.1000.
If any person –
Required to furnish any information or return –
Refuses or neglects to furnish such information or return, or
Furnishes or causes to be furnished any information or return which he knows to be false, or
Refuses to answer, or gives a false answer to any question necessary for obtaining any information
required to be furnished under section 5; or

Impedes the right of access to relevant records or documents or the right of entry conferred by section 6;
he shall be punishable for the first offence with fine upto Rs.250 and for every subsequent offence with
fine upto Rs.250 and for every subsequent offence with fine upto Rs.500.
Rules 7

INDUSTRIAL DISPUTES ACT, 1947

Object of the Act
Provisions for investigation and settlement of industrial disputes and for certain other purposes.
Important Clarifications
Industry– has attained wider meaning than defined
except for domestic employment, covers Power of Labour Court to give Right of a W orkm an during
Appropriate Relief Pendency of Proceedings
from barber shops to big steel companies.
Labour Court/Industrial Tribunal can in High Court
Sec.2 (I)
Modify the punishment of dismissal or Employer to pay last drawn wages
W orks Com m ittee –Joint Committee with equal
discharge of workmen and give to reinstated workman when
number of employers and employees’
appropriate relief including proceedings challenging the
representatives for discussion of certain common
reinstatement.Sec.11A award of his reinstatement are
problems. Sec.3
pending in the higher Courts.
Conciliation– is an attempt by a third party in
helping to settle the disputes Sec.4
Adjudication– Labour Court, Industrial Tribunal or
National Tribunal to hear and decide the dispute.
Secs.7, 7A & 7B
 Persons Bound by
Settlement
• When in the course of conciliation
proceedings etc., all persons
working or joining subsequently.
• Otherwise than in course of
Lay off & Payment of Compensation – settlement upon the parties to the
Conditions for Laying off settlement. Sec.18
Failure, refusal or inability of an employer to
provide work due to
Notice of Change
• Shortage of coal, power or raw material. 21 days by an employer to workmen
• Accumulation of stocks. about changing the conditions of
• Breakdown of machinery. service as provided in Ivth Schedule.
• Natural calamity. Sec.25-C Sec.9A
Period of Operation of
Settlements and
Awards
• A settlement for a period as
agreed by the parties, or
• Period of six months on
signing of settlement.
• An award for one year after
Prior Permission for Lay off
When there are more than 100
workmen during proceeding 12
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, • During
as the pendency of proceedings before a Labour
intervening weekly holiday hereinafter provided, within six weeks before striking.
Court, Tribunal or National
compensation 50% of total or • Within fourteen days of giving such notice. • Tribunal and two months, after the conclusion of such
basic wages and DA for a • Before the expiry of the date of strike specified inproceedings.
any
period of lay off upto such notice as aforesaid. • During the pendency of arbitration proceedings before an
maximum 45 days in a year. • During the pendency of any conciliation proceedings arbitrator and two months after the conclusion of such
Sec.25-C before a conciliation officer and seven days afterproceedings,
the where a notification has been issued under
conclusion of such proceedings. Sub-Section(3A) of section 10A
Prior Permission by the • During the pendency of conciliation proceedings During any period in which a settlement or award is in
before a Board and seven days after the conclusion operation, in respect of any of the matters covered by the
Government for
Retrenchment of such proceedings. settlement or award. Secs.22&23
• 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 circum stances during pendency of
• Three months’ notice or wages proceedings
thereto. • Not to alter to the prejudice of workmen concerned the condition of service.
• Form QA • To seek Express permission of the concerned authority by paying one month’s wages on
• Compensation @ 15 days’ dismissal, discharge or punish a protected workman connected with the dispute.
• To seek approval of the authority by paying one month’s wages before altering condition o
Prohibition of unfair labour service, dismissing or discharging or punishing a workman.
Sec.33
practice either by
employer or workman Retrenchment of Workmen Compensation & Conditions
or a trade union as Workman must have worked for 240 days.
stipulated in fifth
• Retrenchment compensation @ 15 days’ wages for every completed year to be calculated at last
schedule
drawn wages
Both the employer and the Union
• One month’s notice or wages in lieu thereof.
• Reasons for retrenchment
Closure of an Undertaking • Complying with principle of ‘last come first go’.
60 days’ notice to the labour • Sending Form P to Labour Authorities.
authorities for intended closure in Form
QA. Sec.25FFA
Conditions of service etc. to remain unchanged under certain circum stances during pendency of
Prior permission atleast 90 days before
proceedings
in Form O by the Government when
• Not to alter to the prejudice of workmen concerned the condition of service.
there are 100 ore more workmen
during preceding 12 months (in UP 300 • To seek Express permission of the concerned authority by paying one month’s wages on dismissal,
or more workmen) Sec.25-O discharge or punish a protected workman connected with the dispute.
• To seek approval of the authority by paying one month’s wages before altering condition of service, dismissing
PENALTIES or dischargingMatters
or punishingto be Sec.33
provided in Standing orders
a workman.
<Punishment
Offence Classification of workmen,Imprisonment
e.g., whetherof upto 6 monthstemporary,
permanent, or with fine apprentices,
upto Rs.3, 000.
probationers,
Committing unfair or
labour badlis.
practices Imprisonment upto one month or with fine upto Rs.50 (Rs.1000 for lock
Sec.25-U out) or with both.
26 Manner of intimating
Illegal strike to workmen
and lock-ourts periods and hours of work, holidays, pay-
27 Instigation etc. for
daysillegal
and strike lock-outs.Imprisonment upto 6 months or with fine upto Rs.1, 000
wageorrates.
Giving financial aid to Shift
illegalworking.
strikes and lock-outs. Imprisonment for 6 months or with fine upto Rs.1, 000
28 Imprisonment upto 6 months or with fine.On continuity of offence fine
Applicability of Breach of settlement or award
29 Attendance and late coming. uptoRs.200 per day
30 Disclosing
the Actconfidential information pertaining to Sec.21
Conditions of, procedure in applying for,
Imprisonment and
upto the authority
6 months which
or with fine uptomay grant,
Rs.1, 000
31A Closure
Every industrial without 60
INDUSTRIAL EMPLOYMENT
days’
leave
Contravention of Sec.33 pertaining
notice
to and
under Sec.25 FFA
of conditions Imprisonment
holidays.
change of upto 6 months or with fine upto Rs.5, 000
establishment Service during
wherein 100When (STANDING ORDERS) ACT, 1946 & THE RULES
Requirement
or no penallyClosing
pendency ofto enteretc.
dispute Imprisonment
premises upto gates,
by certain 6 months
andorliability
fine uptotoRs.1, 000.
search. Fine upto Rs.100

31 is providedand re-opening
for of
contravention sections of the industrial establishments, and
more (in many temporary stoppages of work and the right and liabilities of the employer and
States it is 50 or
more).
CHECK-LIST
workmen arising therefrom.
Termination of employment, and the notice thereof to be given by employer
Any industry and workmen.
covered by Suspension or dismissal for misconduct, and acts or omissions which
Bombay Industrial constitute misconduct.
Relations Act, Means of redressal for workmen against unfair treatment or wrongful
1946. exactions by the employer or his agents or servants.
Industrial
establishment
Additional Matters
covered by M.P. Service Record – Matters relating to service card, token tickets, certification
Industrial of service, change of residential address of workers and record of age
Employment Confirmation Age of retirement Transfer Medical aid in case of Accident
(Standing Orders) Medical Examination Secrecy Exclusive service.
Act, 1961. Secs.2 (g), 3(2) and Rule 2A
Sec. 1
 Conditions for
Certification of
Standing Orders
Every matter to be
set out as per
Schedule and Rule
2A.
The standing orders Procedure for Date of Posting of Standing
to be in Certification of Operation of Orders
conformity with Standing Orders Standing
the provisions of Certifying Officer to Orders The text of the
the Act. forward a copy of draft standing orders as
standing orders to the On the date of finally certified shall
trade union or in the expiry of 30 days prominently be posted
Submissions of absence of union, to the from certification in English or in the
Draft Standing workmen of the industry. or on the expiry language understood
Orders The trade union or the of 7 days from by majority of workmen
other representatives, as authentication of on special board at or
Within six months the case may be, are to Standing Orders. near the entrance for
from the date when be heard. majority of workers.
the Act becomes Sec.5 Sec. 7 Sec. 9
applicable to an
industrial Temporary Payment of Subsistence Allowance to the
establishment. Five application of Model Suspended Workers
copies of the draft Standing Orders At the rate of fifty per cent, of the wages which the
Standing Orders are Temporary application workm an was entitled to imm ediately proceeding the
to be submitted to of mod standing orders date of such suspension, for the first ninety days of
the Certifying shall be deemed to be suspension.
Officer under the adopted till the At the rate of seventy-five percent of such wages for
Act. standing orders as the rem aining period of suspension if the delay in the
submitted are certified. com pletion of disciplinary proceedings against such
Sec.3 Sec.12-A workm an is not directly attributable to the conduct
such workm an.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
Object of the Act
Upon all women em ployees either em ployed Conditions for eligibility
To protect the dignity
directly or through contractor except of benefits
of motherhood and
dom estic women em ployees em ployed in Wom en indulging tem porary
the dignity of a new
m ines, factories, plantations and also in of unm arried are eligible for
person’s birth by
other establishm ents if the State m aternity benefit when she
providing for the full
Governm ent so decides. Therefore, if the is expecting a child and has
and healthy
State Government decides to apply this Act worked for her em ployer for
maintenance of the
to wom en em ployees in shops and at least 80 days in the 12
woman and her child
comm ercial establishm ents, they also will m onths im mediately
at this important time
get the benefit of this Act. Bihar, Punjab proceeding the date of her
when she is not
Haryana, West Bengal, U.P., Orissa and expected deliverySec. 5.
working.
Andhra have done so.
 Cash Benefits Conditions for eligibility of
Leave with average pay for six weeks before the delivery. benefits
Leave with average pay for six weeks after the delivery.
A m edical bonus of Rs.25 if the em ployer does not provide free m edical care to the Ten weeks before the date of
woman. her expected delivery, she
may ask the employer to
An additional leave with pay up to one m onth if the woman shows proof of illness due to
give her light work for a
the pregnancy, delivery, m iscarriage, or premature birth. month. At that time she
In case of m iscarriage, six weeks leave with average pay from the date of m iscarriage. 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 She should give written notice
delivery, if she asks for it. to the employer about seven
Two nursing breaks in the course of her daily work until the child is 15 m onths old. weeks before the date of her
No discharge or dism issal while she is on maternity leave. delivery that she will be
absent for six weeks before
No change to her disadvantage in any of the conditions of her em ployment while on
and after her delivery. She
m aternity leave. should also name the person
Pregnant wom en discharged or dism issed m ay still claim m aternity benefit from the to whom payment will be
em ployer. made in case she can not
Exception: Women dism issed for gross m isconduct lose their right under the Act fortake it herself.
Maternity Benefit She should take the payment
for the first six weeks before
Leave for illness arising out of she goes on leave.
Leave for Miscarriage
pregnancy etc. etc. She will get payment for the six
& Tubectomy Operation
A woman suffering from illness weeks after child-birth within
Leave with wages at the rate of
arising our of pregnancy, delivery, 48 hours of giving proof that
maternity benefit, for a period of she has had a child.
premature birth of child
six weeks immediately following She will be entitled to two
(Miscarriage, medical termination
the day of her miscarriage or her nursing breaks of fifteen
of pregnancy or tubectomy
medical termination of pregnancy. minutes each in the course
operation) be entitled, in addition of her daily work till her child
Entitled to leave with wages at the
to the period of absence allowed is fifteen months old.
rate of maternity benefit for a
to her leave with wages at the Her employer cannot discharge
period of two weeks immediately
rate of maternity benefit for a her or change her conditions
following the day of her tubectomy
maximum period of one month. of service while she is on
operation. maternity leave.
Sec. 10
Sec. 5.
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
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
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 me
bonus, etc.
Not barred in case of dismissal for cross m isconduct. Sec.

Forfeiture of maternity benefit

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

Object of the Act Fixation of Minimum Rates of Wages

Fixing
To provideHours for
for fixing • The appropriate government to fix minimum rates of wages. The
Normal Working
minimum rates of employees employed in para 1 or B of Schedule either at 2 or either part of
wages in certain notification u/s 27.
• Shall
employments
constitute a • To make review at such intervals not exceeding five years the minimum
normal working day rates or so fixed and revised the minimum rates.
Minimum
inclusive ofRates
oneofor Government can also fix Minimum
Composition of Wages for Payment of
more Wagesspecified • Time work • Piece work at piece Committee
rate • Piece work for theMinimumpurpose of
Such as Basic rates of
intervals. securing to such employees on Representation
a time work basis of • Overtime work
Rates of by
done
wages etc. Variable
• To provide for a dayDA
employees for piece em ployer
work or and
time rate Wagesworkers.
and
of Value
rest in of every
other
Procedure for fixing em ployee in schedule Employer to pay to
concessions etc. Sec.
period of seven 4
days
and revising Minimum em ployer in equal every employee
with remuneration. number and engated in schedule
Rates of Wages
• To provide for Appointing Committee independent persons employment at a rate
not less than minimum
payment for work on issue of Notification etc. not exceeding 1/3 rd
or rates of wages as fixed
a day of rest at a rate Sec. 5 its total num ber one by Notification by not
not less than the such person to be making deduction
overtime rate.. Sec. appointed by the other than prescribed.
13 Sec.12
 Overtime
To be fixed by the hour, by
the day or by such a longer
wage-period works on any
day in excess of the num ber
of hours constituting normal
working day.
Payment for every hour or for W ages of workers w ho works for less than
part of an hour so worked in normal working days
excess at the overtime rate Save as otherwise hereinafter provided, be
double of the ordinary rate of entitled to receive wages in respect of work done
(1½ tim es or for agriculture by him on that day as if he had worked for a full
labour) Sec. norm al working day.
5 Sec.15

W ages for two class of work M aintenance of registers and records

Where an em ployee does two or more • Register ofFines – Form I Rule 21(4)
classes of work to each of which a • AnnualReturns– Form III Rule 21 (4-A)
different minimum rate of wages is
applicable, wages at not less than the
• Register forOvertim e– Form IV Rule 25
m inimum rate in respect of each such • Register ofW ages–Form X,W ages slip –Form XI,Muster Roll –Form V
class. Sec. 16 Rule 26
• Representation of register – for three year Rule 26-A
M inimum tim e rate wages for piece Claim s by employees
work • To be filed by before authority constituted under the Act within 6
Not less than minimum rates wages months.
as fixed . • Compensation upto 10 times on under or non-payment of wages

PENALITIES Offence Punishment

For paying less than minimum Imprisonment upto 6 months
rates of wages or with fine upto Rs.500/-

Sec. 20 For contravention of any Imprisonment upto 6 months

provisions pertaining to fixing or with fine upto Rs.500/-
hours for normal working day etc.

SALES PROMOTION EMPLOYEES

(CONDITIONS
OF SERVICE) ACT, 1976 & THE RULES
CHECKLIST

Object of the Act

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

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

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

TRADE UNIONS ACT, 1926

CHECKLIST

Object of the Act

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

Registration of trade Union

Registration of trade Union
Any 7 or more members of a trade union may, by
subscribing their names to the rules of the trade union Prescribed form with following details.
and its compliance.
Names, occupations and address of the
There should be at least 10%, or 100 of the work-men, members’ place of work.
whichever is less, engaged or employed in the Address of its head office; and
establishment or industry with which it is connected.
Names, ages, addresses and occupations of
It has on the date of making application not less than 7 its office bearers.
persons as its members, who are workmen engaged or
employed in the establishment or industry with which it Sec. 5
is connected.

Minimum requirements for
membership of trade
union
Not less than 10%, or 100
of the workmen, whichever is
less,
Subject to a minimum of 7,
engaged or employed in an
Establishments etc.
Sec. 9A
Cancellation of
Registration
If the certificate has been
obtained by fraud or
mistake or it has ceased to
exist or has willfully
contravened any provision
of this Act.
If it ceases to have the
requisite number of
members.
Sec. 10
Criminal conspiracy in trade
disputes
No office bearer or member of a
registered trade union shall be liable to
punishment under sub section (2) of
conspiracy u/s 120B of IPC in respect of
any agreement made between the
members for the purpose of furthering
any such object of the Trade Union.
Sec. 17

Disqualification of office bearers Returns

of Trade Union
If one has not attained the age of 18 years.
Conviction for an offence involving moral
turpitude.
Not applicable when 5 years have elapsed.
Sec. 21-A
Annually to the Registrar, on or before such date as may
be prescribed, a general statement, audited in the
prescribed manner, of all receipts and expenditure of
every registered Trade Union during the year ending on
st
the 31 December.
Sec. 28

Penalties Offence Punishment

• For making false entry in or • Fine upto Rs.500. On

any omission in general continuing default, additional
statement required for fault, Rs.5 for each week (not
U/s 31 sending returns. exceeding Rs.50).

• For making false entry in the • Fine upto Rs.500.

form.

• 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,
An establishment in which 20 or more persons are
undertakings and
employed without the aid of power on any day during
branches, etc.
an accounting year
Separate establishment

Computation of available surplus Components of If profit and loss accounts

Bonus are prepared and
Income taxes and direct taxes as maintained in respect of
payable. Salary or wages any such department or
Depreciation as per section 32 of includes dearness undertaking or branch,
Income Tax Act. allowance but no other then such department or
Development rebate, investment or allowances e.g. over- undertaking or branch is
development allowance. time, house rent, treated as a separate
Sec.5 incentive or 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 behavior while on the premises of the
establishment; or Others, as per
• theft, misappropriation or sabotage of any property of the Second Schedule
establishment 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 For calculation
An employee will be entitled Rs.100 (on completion of 5 purposes Rs.2500
only when he has worked years after 1st Accounting year per month
for 30 working days in that even if there is no profit) maximum will be
year. Sec.10 taken even if an
Sec. 8 Sec. 8 employee is
drawing upto
Rs.3500 per month.
Time Limit for Set-off and
Sec.12
Payment of Bonus Set-on
Note: The proposal to
Within 8 months from the As per Schedule IV.
enhance the existing
close of accounting y ear. Sec. 15
ceiling of Rs.3500 is under
Sec. 19
active consideration by
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.

Act not applicable to certain employees of LIC, General Insurance, DockYards, Red Cross, Universities
& Educational Institutions, Chambers of Commerce, Social Welfare Institutions, Building Contractors,
For contravention of any provision of the Act or Upto 6 months or with fine upto Rs.1000.
PENALTY
etc. etc. Sec.32. the Rule Sec.28

Sec.
1
PAYMENT OF Sec.
2(s)

Applicability
GRATUITY
Every factory, ACT, 1972 & THE RULES Wages for
Calculation
mine, oil field,
plantation, port, @ 15 days’
railways, wages for every
company, shop, CHECKLIST completed year
establishment or as if the month
educational comprises of 26
institutions days at the last
employing 10 or Sec. drawn wages.
more employees 2(e)
Employee
Calculation
Display of
Piece-
Calculation All employees Notice
rated Qualifying
Sec. Seasonal irrespective of
employee period
1 employee status or On conspicuous
salary place at theRule
main
@ 15 days On rendering of
@ 7 days’ entrance in4
wages for 5 years’ service,
wages for Entitlement English language
every either
every On completion or the language
completed termination,
completed of five years’ understood by
year on an resignation or
year of service except majority of
average of 3 retirement.
service. in case of employees of the
months’
death or factory, etc.
wages
disablement
 Sec.
4(3)
Rule
Sec.6 9
Rule 6 Maximum
Ceiling
Nomination Rule
Mode of
Rs.3, 9
payment
To be obtained 50,000
by employer Cash or, if so Penalties
after expiry of desired, by
one year’s Bank Draft or Imprisonment for
service, in Cheque 6 months or fine
Form ‘F’ upto Rs.10, 000
for avoiding to
Sec. make payment
4(6) by making false
Sec.8 Sec. state-ment or
Forfeiture of Gratuity
Rule 8 13 representa -tion.
On termination of an
Recovery of Imprisonment not
employee for moral Protection of
Gratuity less than 3
turpitude or riotous or Gratuity
disorderly behavior. months and upto
To apply within one year with
Wholly or partially for Can’t be
30 days in fine on default in
willfully causing loss, attached in
Form I when comply-ing with
destruction of property execution of
not paid within the provisions of
etc. any decree
30 days Act or Rules.

PAYMENT OF WAGES ACT, 1936

CHECKLIST
Applicability of Act Wages to be paid in
Object of the Act
• Factory industrial current coins
To regulate the payment of wages of
Establishment or currency
certain classes of employed persons
• Tramway service or motor notes
Time of payment of wages •All wages shall be paid
transport service engaged in
The wages of every person employed in current coins or
carrying passengers or good
is paid. currency notes or in
or both by road for hire or
When less than 1000 persons are both.
reward. • Air transport employed shall be paid before the
service Dock, Wharf or Jetty •After obtaining the
expiry of the 7th day of the following authorization, either by
• Inland vessel, mechanically month.
propelled Cheque or by crediting
When more than 1000 workers, before the wages in employees
• Mine, quarry or oil-field the expiry of the 10th day of the Deduction for
Plantationof Employees following month. absence from
Coverage
Drawing average wage upto Sec. 5 duties for
Rs.6500 pm as amended w.e.f. Deduction made from wages unauthorized
6.9.05. Deductions such as, fine, deduction for absence
amenities and services supplied by the
employer, advances paid, over Absence for whole or
Fines as prescribed by
payment of wages, loan, granted for any part of the day –
•Not to imposed unless the
house-building or other purposes, If ten or more persons
employer is given an
income tax payable, in pursuance of absent without
opportunity to show cause
the order of the Court, PF reasonable cause,
To record in the register
contributions, cooperative societies, deduction of wages upto
Deductions for serviceSec.8
premium for Life Insurance, 8 days.
rendered
When accommodation amenity contribution to any fund constituted by
employer or a trade union, recovery of Sec. 9
or service has been accepted
by the employee. losses, ESI contributions etc.etc.
Sec.11
 Deduction for damage or loss

For default or negligence of an

employee resulting into loss. Show
cause notice has to be given to the

On contravention of S.5 (except sub-sec.4), S.7, S.8 Fine not less than Rs.1000, which may extend to
(except Ss.8), S.9, S.10 (except Ss.2) and Secs.11 to Rs.5000. On subsequent conviction fine not less
13. 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.
• For failing to maintain registers or records; or
• Willfully refusing or without lawful excuse • Fine which shall not be less than Rs.1000 but may
neglecting to furnish information or return; or extend to Rs.5000 – On record conviction fine not
• Willfully furnishing or causing to be furnished any less than Rs.5000, may extend to Rs.10, 000.
information or return which he knows to be false • For second or subsequent conviction, fine not less
or than Rs.5000 but may extend to Rs.10,000
• Refusing to answer or willfully giving a false
answer to any question necessary for obtaining
any information required to be furnished under
this Act.
• Willfully obstructing an Inspector in the discharge
of his duties under this Act; or
• Refusing or willfully neglecting to afford an Fine not less than Rs.1000 extendable
Inspector any reasonable facility for making any Upto Rs.5000 – On subsequent conviction fine
entry, inspection etc. not less than Rs.5000 – may extent to Rs.10,000
• Willfully 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 • Imprisonment not less than one month
Contravention of same provision. extendable upto six months and fine not less than

WORKMEN’S COMPENSATION
ACT, 1923
CHECKLIST
Coverage of Workmen When an employee
Employer’s is not
liability liable
to pay
Applicabilit
All workers irrespective of their for compensation
compensation to a workman
y
status or salaries either directly or On death or personal injury resulting
All over India through contractor or a person • into
In respect
total orofpartial
any injury which does
disablement or
Sec.1 recruited to work abroad. Sec.1 (3) result in the
occupational totalcaused
disease or partial
to a
disablement
workman of the
arising out workman
of and duringfor a
Amount of compensation period exceeding
the course three days.
of employment.
• Where death of a workman results from the injury • In respect of any injury,Sec.3 not
• An amount equal to fifty per cent of the monthly wages resulting in death or permanent
of the deceased workman multiplied by the relevant factor total disablement caused by an
on an amount of eighty thousand rupees, whichever is more. accident which is directly
• Where permanent total disablement results from the attributable to-
injury. • The workman having been at the
• An amount equal to sixty per cent of the monthly wages time thereof under the influence of
of the injured workman multiplied by the relevant factor or drink or drugs, or
an amount of ninety thousand rupees, whichever is more • Willful disobedience of the
Procedure for calculation workman to an order expressly
Higher the age – Lower the compensation given, or to a rule expressly
• Relevant factor specified in second column of Schedule IV framed, for the purpose of
giving slabs depending upon the age of the concerned securing the safety of workmen, or
workman. • Willful removal or disregard by the
• Example: In case of death. workman of any safety guard or
• Wages Rs.3000 PM ● Age 23 years other device which he knew to
• Factor as schedule IV Rs.19.95 have been provided for the
purpose of securing the safety of
• Amount of compensation Rs.329935
 Wages Notice
Accident
When the monthly wages
are more than Rs.4000 per As soon as
month it will be deemed Practicable
Rs.4000. Sec. 10
Sec.4 Exh.b

Report of accident Bar upon contracting out

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

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