What everybody should know about

Labour Laws

Labour Laws Referencer

KIRLOSKAR OIL ENGINES LIMITED

Needs
To understand implications of decisions in relation
to Manpower Management.
Awareness about the Laws of the Land and
Ensuring Compliances.
Fluctuating Market Demands & Readjusting the
workforce with short notice (scale up or down).
Cost of the Structure(ERE) - Manufacturing Cost.
Sensitivity of the decisions - Social /emotional
aspect of decisions & Precautions (Avoid
Exploitation).KIRLOSKAR OIL ENGINES LIMITED

THE INDUSTRIAL DISPUTE ACT, 1947

Objective :
An Act to make provision for :
The investigation and settlement of Industrial
Disputes.
Industry Sec. 2(j)
Any systematic activity carried on by co-operation
between employer and workmen for the production,
supply or distribution of goods or services with a
view to satisfy human needs.

KIRLOSKAR OIL ENGINES LIMITED

THE INDUSTRIAL DISPUTE ACT, 1947

Industrial Dispute Sec. 2(k)
Any dispute or difference between:
(a) employers and employers, or
(b) between employers and workmen, or
(c) between workmen and workmen
Dispute must be raised by : Union or a group of workmen.
Strike - Sec 2(q) : Strike means cessation of work by a
body of persons employed in any industry, acting in
combination or a concerted refusal, or a refusal under
common understanding, or any number of persons who are or
who have been so employed to continue to work or to accept
employment.
Lock-out - Sec.2(1) :Lock-out means temporary closing
of a place of employment or the suspension of work, or
KIRLOSKAR OIL ENGINES LIMITED

THE INDUSTRIAL DISPUTE ACT, 1947

Illegal Strike & Illegal Lockout.
If strike/lockout is started :
1) Without giving 14 days notice.
2) Before expiry of such notice;
3) During pendency of conciliation proceedings
before the board & 7 days after its conclusion
4) During pendency of Proceedings in court/tribunal
& within 2 months after conclusion.
5) During operation of any settlement of award or
any matter connected with it.
KIRLOSKAR OIL ENGINES LIMITED

THE INDUSTRIAL DISPUTE ACT, 1947

Retrenchment :
1) What it means - Sec 2(oo) :
Retrenchment means any termination by the employer
of the services for any reason whatsoever, otherwise
than as a punishment by way of disciplinary action.
2) Pre-conditions to effect :
a) Prior permission from Govt.
b) Notice to be given to the workmen - One months
notice or one months pay in lieu of notice must be
given.
c) Compensation payable to retrenched workmen -15
days average pay for every completed year.
KIRLOSKAR OIL ENGINES LIMITED

THE INDUSTRIAL EMPLOYMENT

(STANDING ORDERS) ACT, 1946
Objectives :
Standardization of the Service Conditions (Rules
of conduct ) of the Workmen with precision
Standing Orders :
Rules of conduct for workmen employed in the
Industrial Establishments.
Model Standing Orders :
Set of Rules prescribed by Central & State Govt. to
serve as a model.
KIRLOSKAR OIL ENGINES LIMITED

THE INDUSTRIAL EMPLOYMENT

(STANDING ORDERS) ACT, 1946
Schedule

(Matters to be provided in Standing Orders)

1. Classification of workmen
2. Period and hours of work,
holidays
3. Shift working
4. Attendance & Late Coming
5. Leave & holidays
6. Entry & search
7. Closing & opening of
sections
8. Termination of employment
& notice
9. Misconducts, Suspension,
Punishments

10. Grievance Procedure

11. Service record T. No,
change of address
12. Confirmation
13. Age of retirement
14. Transfer
15. Medical Aid in case of
accidents
16. Medical Examination
17. Secrecy
18. Excusive Service

KIRLOSKAR OIL ENGINES LIMITED

THE INDUSTRIAL EMPLOYMENT

(STANDING ORDERS) ACT, 1946
Approval of Leave :
Application for leave (CL) :

To be in writing.
At least 7 days advance (except urgent / unforeseen
circumstances).

Grant of leave :

Depends on exigencies of work; and

At the discretion of Manager

Grant or refusal or postponed :

Communication in writing.
Within 3 days of receipt
Reason to be recorded in writing in a register.

KIRLOSKAR OIL ENGINES LIMITED

THE INDUSTRIAL EMPLOYMENT

(STANDING ORDERS) ACT, 1946
Search:
Any workman when leaving department/ premises
liable to be searched :

Atleast two witnesses.

Member of Works Committee may be present
Female workman - search by female.
Not in presence of male person, except with her
consent.

KIRLOSKAR OIL ENGINES LIMITED

THE INDUSTRIAL EMPLOYMENT

(STANDING ORDERS) ACT, 1946
Notice of Termination (subject to ID Act)

Monthly rated - one months notice or

payment of
one months wages
Daily rated - Fourteen days notice or thirteen
days wages inclusive of all allowances.
Non-permanent No notice
On termination - Earned wages before expiry
of the second working day.

KIRLOSKAR OIL ENGINES LIMITED

THE INDUSTRIAL EMPLOYMENT

(STANDING ORDERS) ACT, 1946
Misconducts :
The acts and commissions on the part of workman
amounting to misconduct:
a) Willful insubordination or disobedience, whether or
not in combination with another, of any lawful and
reasonable order of superior;
b) Going on an illegal strike or abetting, inciting,
instigating or acting in furtherance thereof;
c)

Willful slowing down in performance of work, or

abetment or instigation thereof;
KIRLOSKAR OIL ENGINES LIMITED

THE INDUSTRIAL EMPLOYMENT

(STANDING ORDERS) ACT, 1946
Misconducts : (Contd)
d) y)
z) Sexual harassment, which includes unwelcome
sexual determined behavior (whether directly or by
implication), such as :
i.
ii.
iii.
iv.
v.

physical contact and advances; or

demand or request for sexual favours; or
sexually coloured remarks ; or
showing pornography; or
any other unwelcome physical, verbal or non verbal
conduct of sexual nature.

Habitual - Three or more occasion in a span of one

year
KIRLOSKAR OIL ENGINES LIMITED

THE INDUSTRIAL EMPLOYMENT

(STANDING ORDERS) ACT, 1946
How to deal with Misconducts :
A workman guilty of misconduct may be given any of
the following punishments :

Warning
Fine
Suspension
Dismissal

KIRLOSKAR OIL ENGINES LIMITED

THE INDUSTRIAL EMPLOYMENT

(STANDING ORDERS) ACT, 1946
Punishment - Dismissal :
Dismissal/Termination - ONLY after enquiry.
Principle of natural justice.
Shall be issued Charge-sheet.
To be permitted to defend himself or by co
workman or by a office-bearer of union.
To be allowed to adduce evidence/witness.
Opportunity to cross exam. of management and
witnesses.
Proceedings in English, Hindi or Marathi
Choice of workman.
The enquiry shall be completed in three months.
KIRLOSKAR OIL ENGINES LIMITED

THE INDUSTRIAL EMPLOYMENT

(STANDING ORDERS) ACT, 1946
Contd.
Suspension for valid reason.
Ex-parte enquiry.
Report to disciplinary authority.
Punishment (considerations):
Gravity of misconduct
Past Record
Other extenuating or aggravating circumstances
Dismissal without enquiry
Whether the option exist?

KIRLOSKAR OIL ENGINES LIMITED

THE FACTORIES ACT, 1948.

Factory: Any premises including precincts thereof in any
part of which Mfg. process is carried on with aid of power
with 20 workers and without the aid of power with 40
workers.

Occupier: Means a person having ultimate control

over the affairs of the factory.

Manager: Means a person responsible to the

occupier for the working of the factory, for the purpose
of the Act.

Worker: Any person employed directly or through

agency or contractor, with or without knowledge of
the employer, whether on remuneration or not, in any
manufacturing KIRLOSKAR
process OIL
or ENGINES
cleaning
any machinery or
LIMITED

THE FACTORIES ACT, 1948.

Duties of Occupier
To ensure the Health, Safety and Welfare of workers,
which includes :
a) Provision and maintenance of plant and system of
work that are safe and without risk to health;
b) Arrangements for ensuring safety and absence of
risk to health in connection with use, handling,
storage and transport of articles and substance;
c)

Provision of information, instruction, training and

supervision as necessary to ensure the health & safety
of all workers.
KIRLOSKAR OIL ENGINES LIMITED

THE FACTORIES ACT, 1948.

d) Maintenance of all places of work in a condition that
is safe and without risk to health and provision and
maintenance of such means of access to, and egress from,
such places as are safe and without risk;
e) Provision, maintenance and monitoring of such
working environment for the workers which is safe,
without risk to health and adequate as regards facilities
and arrangements for their welfare at work.

Every occupier shall prepare a written statement of his

Health &
Safety Policy & notify for the information of workers.

KIRLOSKAR OIL ENGINES LIMITED

THE FACTORIES ACT, 1948.

Notice of Accident :
Inspector of Factories &
ESIC
Notice of Dangerous Occurrence:
By telephone/messenger to Inspector of Factories and
Administrative Medical Officer of ESIS.
If fatal, likely to prove fatal:
Inspector of Factories
District/Sub-divisional Magistrate
Officer in charge of nearest Police Station
Nearest relative of deceased.
To be followed by written report to above two.
KIRLOSKAR OIL ENGINES LIMITED

THE FACTORIES ACT, 1948.

WORKING HOURS
9 hours a day (48 hours a week)
5 hours at a stretch
10.5 hrs. spread over (max.12 hrs.)
hour rest after every 5 hrs of work
WORKER NOT TO WORK
More than maximum hours
On weekly off day
In overlapping shifts
In double employment
Female worker not to work beyond 7 pm to 6 am.
WORKING ON WEELY OFF
Substitute weekly off within 3 days(10 days cont. work)
Notice to Inspector.
Display notice in factory.
KIRLOSKAR OIL ENGINES LIMITED

THE FACTORIES ACT, 1948.

Leave Facilities :
1. Min. 90 days work.
2. One day PL for 20 days working.
3. Accumulation up to 30 days.
4. Leave refused, gets added
5. Worker to apply 15 days in advance.
6. Leave wage - Equal to average wage.
7. Manager to maintain Leave register.
8. Worker is entitled to get Leave-book.

KIRLOSKAR OIL ENGINES LIMITED

CONTRACT LABOUR (R & A) ACT 1970

Applicability - Establishment
- Contractor
Registration
Licensing
Provision of Amenities
Payment of wages
Provident Fund, ESI
Maintenance of Records & Registers
Filing of Returns

KIRLOSKAR OIL ENGINES LIMITED

CONTRACT LABOUR (R & A) ACT 1970

To provide for regulation of Contract labour system

and abolition in exceptional circumstance.
Applicability to :a) Establishment b) Contractor:
a) Employing 20 or more
Contract labours.
b) Contractor engaging 20 or
more Workmen.
Registration : Every principal employer to get
registration.
License : Every Contractor to get license / renew
license.

KIRLOSKAR OIL ENGINES LIMITED

CONTRACT LABOUR (R & A) ACT 1970

Company :
PE has to Register Establishment(RC) and get it
amended as and when there is change.
Company (PE) has to ensure that the contractor
fulfills his obligations under the Act :
Obtaining License
Payment of Wages
Compliance on minimum wages, PF, ESI.
Provision of Welfare Canteen, drinking water
etc.
Maintenance of Registers
Supervision by adequate no of supervisors.
KIRLOSKAR OIL ENGINES LIMITED

CONTRACT LABOUR (R & A) ACT 1970

Contractor :
A contractor cannot take work through contract labour, if
there is no license.
Renewal of license every year (apply before 60 days in
advance)
Undertake work only in accordance with the license (No not
exceed the total number).
Has to make payment under the supervision of Employers
nominee.
Maintenance of Registers.
KIRLOSKAR OIL ENGINES LIMITED

PAYMENT OF BONUS ACT, 1965

Applicable to :
a) Every Factory or
b) Other establishment with 20 or more person
employed.
Coverage:
Employees drawing Salary/wages
during the year (Basic + D.A)

Rs.21,000/-p.m.

Eligibility:
30 days work in a Accounting Year (including lay off,
leave with wages)
Minimum Bonus :
8.33% of (minimum wages or 7000 which ever is higher)
or Rs.100/ whichever is higher
KIRLOSKAR OIL ENGINES LIMITED

PAYMENT OF BONUS ACT, 1965

Maximum Bonus :
20% of minimum wages or 7000 which ever is higher.
Time-limit :
Within 8 months from closing the year.
Disqualification :
If employee found guilty & dismissed for (a) Fraud (b)
Riotous & violent behavior (c)Theft, misappropriation
or sabotage.

KIRLOSKAR OIL ENGINES LIMITED

PAYMENT OF BONUS ACT, 1965

Bonus Act Amendment :
The Govt. of Maharashtra vide ordinance dated
17.09.2010 - mandated payment of bonus to all
employees through cheque/bank account only.
The employers should, therefore, immediately open
their own bank accounts and those of their workers,
if not already opened in any nationalized/scheduled
banks having core banking facility.

KIRLOSKAR OIL ENGINES LIMITED

THE EMPLOYEES PF ACT

Applicability :
Factory (Schedule 1) and in which 20 or more
persons are employed.
Any other establishment employing 20 or more
persons which Central Government may, by
notification, specify in this benefit.
Any establishment employing even less than 20
persons can be covered voluntarily u/s 1 (4) of the
Act.
Eligibility :
Any person who is employed for work of an
establishment or employed through contractor in or
in connection
with the
work LIMITED
of an establishment
KIRLOSKAR
OIL ENGINES

THE EMPLOYEES PF ACT

Payment of contribution :
It shall be the responsibility of the principal
employer to pay the contributions payable to the
EPF, Employees Pension Fund, EDLI by himself in
respect of the employees employed by him or
through a contractor.
Employee can also contribute excess amount to PF
Voluntarily.

KIRLOSKAR OIL ENGINES LIMITED

THE PAYMENT OF GRATUITY

ACT, 1972
Applicability :
Every factory, mine, oil field, plantation, port,
railways,
company,
shop,
establishment
or
educational institutions employing 10 or more
persons.
Eligibility:
All employees irrespective of status or salary
Qualifying period:
Completion of 5 years of service (Exception : Death
/ Total disablement)

KIRLOSKAR OIL ENGINES LIMITED

THE PAYMENT OF GRATUITY

Calculation:ACT, 1972

Gratuity @ 15 days wages for every completed

years
of
service
or
part thereof (rate of last drawn wages).
= (Salary PM/26 )x 15 days x No. of years of
Service.
Ceiling - Rs. 10 Lakhs
Nomination :
To be obtained by employer after expiry of one
years service, In Form F.
Mode of Payment :
Cash or if so desired, by Bank Draft or cheque
KIRLOSKAR OIL ENGINES LIMITED

End of Presentation

KIRLOSKAR OIL ENGINES LIMITED