FREQUENTLY ASKED QUESTIONS ON LABOUR LAWS

TABLE OF CONTENTS
2

S.N o 1. . !. ". #. $. %. &. '. 1(. 11. 1 .

Name of the Act The Pa)me*t of +,at-.t) Act/ 1'% Em01o)ee2 Pe*2.o* Scheme/ 1''# The Em01o)ee2 P,o3.4e*t F-*4 and MP Act, 1952 The Pa)me*t of Bo*-2 Act/ 1'$# The 5ate,*.t) Be*ef.t Act/ 1'$1 The Co*t,act La6o-, Reg-1at.o* a*4 A6o1.t.o* Act/ 1'%( The Em01o)ee2 State I*2-,a*ce Act/ 1'"& I*4-2t,.a1 D.20-te Act/ 1'"% The 5.*.m-m Wage2 Act/ 1'"& The Pa)me*t of Wage2 Act/ 1'!$ Em01o)me*t of E7cha*ge2 Act/ 1'#' T,a4e U*.o* Act/ 1' $

Page ! "8&

' 8 1%
1& 8 1' (8 8 1 !

" 8 !# !$ 9 !& !' 9 "1 " 9 "$

"% 9 "& "'

T:E PAY5ENT OF +RATUITY ACT91'%

1. Whe* .2 g,at-.t) a001.ca61e to a* em01o)ee; Ans: Gratuity is applicable to a permanent employee who completes 5 years of continuous service with the or anisation! . Wh.ch fo,m ha2 to 6e f.11e4 fo, *om.*at.o* of +,at-.t); Ans: "orm " has to be filled for #omination of Gratuity! !. <ho ca* 6e *om.*ate4 fo, +,at-.t); Ans: $f employee is married than he%she can nominate spouse, if not then dependant parents! ". .f a* em01o)ee 4oe2 *ot ha3e 4e0e*4a*t 0a,e*t2 o, .2 *ot ma,,.e4/ ca* he=2he *om.*ate h.2=he, 6,othe, o, 2.2te,; Ans: &es he%she can do that, but sooner or later he%she ac'uires a family than the employee has to communicate the same to the () department to ma*e the necessary chan es in #omination! #. Whe* .2 a* em01o)ee e1.g.61e fo, gett.*g g,at-.t); Ans: +mployee has to complete continuous service of 5 years, but after the rulin of Madras (i h ,ourt if there are 2-. wor*in days in the 5th year even then an employee is eli ible for the ratuity! $. What .f a* em01o)ee com01ete2 " )ea,2 > $ mo*th2 of 2e,3.ce/ .2 he e1.g.61e fo, +,at-.t); Ans: #o, but where an employee has completed - years / 2-. days of continuous service in the 5th year he is eli ible for the Gratuity! %. What .f a* em01o)ee 6efo,e com01et.*g # )ea,2 of co*t.*-e2 2e,3.ce e70.,e2/ .2 he e1.g.61e fo, +,at-.t); Ans: $n case the employee e0pires before completin 5 years and ratuity could be paid to the nominee of the deceased employee provided the employee has completed a year of service! &. What .2 the ma7.m-m +,at-.t) 0a)a61e to a* em01o)ee; Ans: Ma0imum Gratuity payable to an employee is 1hree 2a*hs "ifty 1housand only! '. I2 ,et,e*che4 em01o)ee e*t.t1e4 to g,at-.t); Ans: &es, a retrenched employee is also entitled to ratuity!

Bac? to Co*te*t2 Page

E5PLOYEE PENSION SC:E5E/ 1''#.

1@ Who <.11 6e co3e,e4 6) the Pe*2.o* Scheme; +very member of the ceased "amily Pension 3cheme 1941 and anyone who 5oins any covered establishment on or after 16711795 is compulsorily to 5oin this scheme, provided his%her salary%wa e is less than )s! 65..%7 per month at the date of appointment! @ What .2 a co3e,e4 e2ta61.2hme*t; ,overed establishment is an establishment belon in to the class of industries % other establishments, which has been listed in the schedule appended to the +mployees8 Provident "und and Miscellaneous Provisions Act 1952 and where 2. or more persons are employed!

!@ If em01o)ee <a2 a Fam.1) Pe*2.o* Scheme mem6e,. :e=She ha2 1eft o* 1!91 9'! a*4 he=2he .2 #" )ea,2 o14. :e=She ha2 ta?e* h.2 <.th4,a<a1 6e*ef.t. Ca* he=2he Ao.* the *e< 2cheme; &es, by refundin withdrawal benefit to ether with interest! 1hereafter, he%she will be entitled to receive pension from a e 59, if he%she completes at least 1. years of contributory service by then! "@ If em01o)ee .2 a Fam.1) Pe*2.o* Scheme 5em6e, a*4 he=2he ha2 ,et.,e4 afte, #& )ea,2 of age o* 1#9(19'". Ca* he=2he Ao.* the *e< 2cheme; &es, anyone who has retired by reachin a e 59 between .17.-79: and 15711795 may 5oin the scheme by returnin the withdrawal benefit alon with interest! (e will be paid pension with immediate effect, from date of e0it provided he has rendered 1. years of contributory service! #@ If em01o)ee .2 *ot a Fam.1) Pe*2.o* Scheme mem6e, a*4 he=2he .2 #$ )ea,2 of age/ Ca* he=2he Ao.* Fam.1) Pe*2.o*; &es, by divertin from his%her Provident "und balance, "amily Pension 3cheme contribution from date of his%her 5oinin or .17.:741, whichever is later! $@ Whethe, the Fam.1) Pe*2.o* Scheme mem6e, <ho ha2 atte*4e4 the age of #& )ea,2 6efo,e (19 ("9'! a*4 ha2 1eft em01o)me*t afte, (19("9'! <.11 6e a4m.tte4 to the 2cheme a2 mem6e, of Fam.1) Pe*2.o* Scheme/ 1'%1; &es, he will be deemed to have retired after .17.-79:! ;n repayment of that withdrawal benefit which was paid, Pension will be paid from same date, provided he has rendered 1. years of contributory service!

%@ I* ca2e Fam.1) Pe*2.o* mem6e, ha2 atta.*e4 the age of #& )ea,2 6et<ee* (19("9'! a*4 1$9119 '# the* .* that ca2e <hethe, a,,ea,2 of mo*th1) 5em6e, Pe*2.o* 6ecome 0a)a61e fo, the 0e,.o4 ea,1.e, tha* 1$9119'# ..e. f,om the 4ate of h.2=he, atta.*.*g the age of #& )ea,2 <h.ch .2 0,.o, to 1$9119'#; #o, he%she will be deemed to have retired from 16711795 and pension paid accordin ly! &@ I2 em01o)ee the o*1) 6e*ef.c.a,) of F-*4; <enefit will be paid to him%her and in his%her absence to his%her family! '@ What .2 mea*t 6) BFam.1)C; "amily means employees8 spouse and children below 25 years of a e! 1(@ S-00o2e a* em01o)ee 4oe2 *ot ha3e a Fam.1) a*4 he=2he 4.e2 6efo,e ,ece.3.*g 6e*ef.t. Doe2 h.2=he, 0e*2.o* get 1o2t; #o, if he%she does not have a family, benefits will be paid to his%her nominee, who will receive the benefit in his%her absence! 11@ S-00o2e mem6e, ha2 *ot *om.*ate4 a*)o*e. 1he pension % );, will be paid to the dependent parents! 1 @ Ca* mem6e, cha*ge h.2=he, *om.*at.o*; (e%3he can chan e his%her nomination whenever he%she decides within the framewor* of rules for such nomination! $n other words if he%she has a family, nomination should be in favour of a member=s> of the family! $f he%she has no family he%she can nominate anyone he%she wishes! 1!@ :o< ma*) )ea,2 2e,3.ce .2 ,eD-.,e4 to 6e e1.g.61e to ,ece.3e mem6e, 0e*2.o*; Minimum 1. years eli ible service will entitle for member pension! 1"@ Em01o)ee .2 a mem6e, of Em01o)ee2E Pe*2.o* Scheme. :e=She ha2 1eft em01o)me*t at "& ),2. of age a*4 & ),2. of 2e,3.ce. Whe* 2ha11 he=2he ,ece.3e h.2=he, 0e*2.o*; (e%3he can ta*e either withdrawal benefit or can ta*e scheme certificate so that the 9 years service can be added to any future service that he % she may put in, in any other covered establishment! <y virtue of bein a holder of a scheme certificate, if the member dies before 59 years widow % widower and children shall be entitled for pension! 1#@ What .2 0a2t 2e,3.ce 0e*2.o*; 1his pension is for the period of membership of the +mployees8 "amily Pension 3cheme, 1941! 1$@ Whe* 4oe2 a* em01o)ee 6ecome e1.g.61e to 6ecome a mem6e, of Em01o)ee2E P,o3.4e*t F-*4 Scheme/ 1'# a*4 Em01o)ee2E De0o2.t L.*?e4 I*2-,a*ce Scheme/ 1'%$; An employee becomes a member of +mployees Provident "und =+mployees8 Provident "und>

3cheme, 1952 % +mployees ?eposit 2in*ed $nsurance =+mployees8 ?eposit 2in*ed $nsurance> 3cheme, 1946 immediately on 5oinin an establishment covered under the +mployees Provident "unds / Miscellaneous Provision Act, 1952! 1%@ What .2 *om.*at.o*; +very member has to ive the details of himself / details of the nominee for +mployees8 Provident "und / +mployees8 ?eposit 2in*ed $nsurance 3chemes and details of family for +mployees Pension 3cheme, 1995 in form no! 2! A member if, is havin a family can nominate any one or more persons to receive the Provident "und on his death! $n case of him havin no family he can nominate any other person! "amily for the purpose of +mployee Provident "und 3cheme852 means wife%husband, children, whether married or unmarried, includin adopted children, if adoption is reco ni@ed and dependant parents of member! +mployees ?eposit 2in*ed $nsurance 3cheme benefit will be paid to the nominee under +mployees Provident "und 3cheme, 1952! "or the purpose of +mployees Pension 3cheme, 1995 the member has to furnish the details, such as name, relationship / a e of all the family members in the form no! 2! "amily for the purpose of +mployees Pension 3cheme, 1995 means wife%husband / children! Ahenever member wants to ma*e a chan e in the nomination already made for Provident "und, or to update the details of family for +mployees Pension 3cheme, 1995, he has to send a revised form no! 2! 1he form no!2 is routed throu h the employer! 1&@ What a,e the 0e,.o4.ca1 ,et-,*2 to 6e 2e*t 6) a* em01o)e, to the P,o3.4e*t F-*4 Off.ce; 1he employer of an un7e0empted establishment has to forward the followin returns! 1hese returns will include details re'uired under the three schemes namely, +mployees Provident "und 3cheme, 1952, +mployee ?eposit 2in*ed $nsurance 3cheme, 1946 and +mployee Pension 3cheme, 1995! a@ Fo,m9'FRe3.2e4@G 1he details of employees enrolled as members of +mployees8 Provident "und3852, +mployees8 ?eposit 2in*ed $nsurance846 / +mployees8 Pension 3cheme895 on covera e of the establishment7 1his is to be submitted immediately after covera e, within 15 days of covera e! 6@ Fo,m91 AG 1he details of the contributions recovered form the members / paid alon with details of employers8 contribution / administrative char es7 1his is to be submitted monthly by 25th of followin month! c@ Fo,m9#G 1he details of the employees enrolled newly to the Provident "und7 1o be submitted alon with "orm712A every month within 15 days of the followin month! 4@ Fo,m91(G 1he details of the employees leavin service durin the month7 1o be submitted alon with form712A! e@ Cha11a*2G 1he triplicate copy of challans in to*en of havin remitted the Provident "und dues in the

ban*7 to be submitted alon with form712A every month! f@ Fo,m9 FRe3.2e4@G

#omination form7 1o be submitted alon with form75%9! g@ Fo,m9!AG 1he details of wa es / contributions in respect of each member, to be prepared financial year wise7 1o be submitted to the Provident "und office by :.th of April every year! h@ Fo,m9$AG &early consolidated statement of contributions7 1o be forwarded yearly alon with form7:A! $t should be ensured that all the form7:A are entered in form76A, irrespective of whether the form7:A was forwarded for the bro*en period and the total dues as per the form712A for the whole year a rees with the total of form76A within :.th April! .@ Fo,m9#AG )eturn of ownership of the establishment7 1o be forwarded immediately after covera e / whenever there is a chan e in the ownership, it has to be intimated with in 15 days of chan e!

A@ S0ec.me* 2.g*at-,eG 3pecimen si nature of the officer%officers who are authori@ed to si n the returns%documents relatin to Provident "und forwarded immediately after covera e / whenever there is a chan e in authori@ed officer! 1'@ What .2 the 0,oce4-,e to 6e fo11o<e4 6) the mem6e, .f the em01o)e, .2 *ot atte2t.*g h.2 c1a.m fo,m2; $t is the duty of the employer under the Act / 3cheme to help +mployees8 Provident "und or anisation to settle the Provident "und dues of his employees! (e has to complete the prescribed application within 5 days of receipt Bpara42 =5>C forms / hand over it to the member when he leaves the service! Ahen a member finds difficult to et the form attested by the employer, he can et the attestation of any of the followin officer / send to the Provident "und office! 5a*age, of a 6a*?. B) a*) gaHette4 off.ce,. 5em6e, of the Ce*t,a1 Boa,4 of T,-2tee2. = Comm.ttee= Reg.o*a1 Comm.ttee FEm01o)ee2 BP,o3.4e*t F-*4 O,ga*.Hat.o*@. 5ag.2t,ate= Po2t= S-6 Po2t 5a2te,= P,e2.4e*t of I.11age Pa*cha)at= Nota,) P-61.c.

(@ What .2 the mo4e of 0a)me*t of P,o3.4e*t F-*4 a*4 Em01o)ee2E De0o2.t L.*?e4 I*2-,a*ce 4-e2; Provident "und / +mployees8 ?eposit 2in*ed $nsurance dues is paid by money order% by deposit in payees8 ban* a%c% throu h employer% by depositin the che'ue in payees8 name or

part of amount in annuity scheme in any nationali@ed ban*! Payment by money order is allowed where the amount is not more than )s! 2...%7! 1@ What a,e the mo4a1.t.e2 to 6e fo11o<e4 fo, 0a)me*t th,o-gh cheD-e; 1he member has to open an account in the nationali@ed ban*, scheduled ban*, urban ban* or post office savin s ban*! (e has to furnish the details of ban* a%c no! with the full address of the ban* in application form! An advance stamped receipt has also to be anne0ed in the form! "or receipt of pension member%claimant has to open an account only in 3tate <an* of $ndia or Pun5ab #ational <an*! @ I* ca2e of ,et-,*.*g of cheD-e <hat .2 the 0,oce4-,e to 6e fo11o<e4; Generally the che'ues are returned by the ban*ers when the a%c number is furnished incorrect or a%c has been closed! ;n receipt of the che'ue from the ban*ers the Provident "und office will write to the member / employer about the fact / re'uest them to intimate the ban*, a%c number / detailed address! $n case, the member comes to *now about returnin of the che'ue before this, he can write to the Provident "und office throu h his former employer re ardin his present address / ban* a%c number! !@ What .2 the t.me ta?e* fo, 4.20o2a1 of the a001.cat.o* .* the P,o3.4e*t F-*4 off.ce; 1he claims received complete in all respects are disposed off within a ma0imum period of :. days from the date of receipt of claims in the office! $n case the member is not hearin anythin about his application within :. days, he can approach the Public )elation ;fficer! "@ What .2 the 3o1-*ta,) ,ate of P,o3.4e*t F-*4 co*t,.6-t.o* 6) the mem6e,; As per the Act, the member has to contribute at the rate of 1.D or 12D of his basic pay, ?!A! / retainin allowance if any! $n case the member wants to contribute more than this, voluntarily he can do so at any rate he desires! i!e! upto 1..D of basic and ?!A! <ut the employer is not bound to contribute at the enhanced rate! I*2t,-ct.o*2 fo, a mem6e, <h.1e 2e*4.*g a001.cat.o* to Em01o)ee2E P,o3.4e*t F-*4. Ese the appropriate form for claimin Provident "und Pension, withdrawal benefit%scheme certificate, +mployees8 ?eposit 2in*ed $nsurance benefit, etc! as iven below: 7 Fo,m91'G 1o claim final settlement of Provident "und by a member! Fo,m9 (G 1o claim Provident "und by nominee%le al heir on death of the member! Fo,m91(9DG 1o claim pension! =$n duplicate: $f within state, $n triplicate: $f outside state!> Fo,m91(9CG 1o claim withdrawal benefit%scheme certificate under +mployees8 Pension 3cheme 895! Fo,m9#IFG 1o claim assurance benefit under +mployees8 ?eposit 2in*ed $nsurance 846 by nominee%le al heir of a member! Fo,m9!1G 1o claim temporary withdrawal%advance under +mployees8 Provident "und scheme 852! Fo,m91!G 1o effect transfer of Provident "und%Pension from one A%, to another! +nsure that all columns of the application are filled completely! $nformation in the application form relatin to name, a%c no! should a ree with the details available with +mployees8 Provident "und ;r ani@ationF which were furnished by the employer at the time of enrollin to Provident "und! Application should be si ned by the member%claimant! $t should be attested by the former employer! $n case attestation by the former employer is not possible, it should be ot attested by any other authori@ed official specified with application form!

Application for final settlement can be sent by a member on completion of 2 months from the date of leavin service, if the reason for leavin service is other than superannuation, medical round, retrenchment and G!)!3!% "emale members ettin married etc! ?esired mode of payment can be iven le ibly, if the amount involved is more than )s! 2...%7! 1he amount will be sent by deposit in payees8 ban* a%c! 1o facilitate this, <an* a%c no!, name and address of the ban* should be furnished! An advance stamped receipt should also accompany this application! Application may be supported by the return "orm71., showin the details of leavin service and details of contribution for the year in "orm7:A, if not sent earlier by the employer! 3pecific additional re'uirements: A@ Death ca2e2G #ominee%le al heir should apply in "orm72. %"orm71.7? %"orm75$"! $f the member has not e0ecuted any nomination, application should be supported by certificate of family members issued by employer%revenue official%sworn in an affidavit by the family% member%le al certificate from a court of law! ?eath certificate of the member!

,ertificate of the employer statin whether the death was while in service of the member or not! B@ Pe*2.o* ca2e2G Hoint photo raph of member%spouse or the claimant should accompany the application! ;ption for return of capital%commutation should be specified clearly! ?etails of non7contributory period durin the service, wa es%salary for last 12 months should also accompany, if not already sent! ?etails of the branch of the specified ban* may be iven le ibly! ?ate of birth certificates of children $n case of death away from service, an underta*in by the claimant to the effect that the member was not wor*in % had not wor*ed in any other covered establishment after e0it from the establishment on the basis of which pension is bein claimed! Bac? to Co*te*t2 Page

T:E E5PLOYEE PROIIDENT FUND > 5P ACT/ 1'#

Q1@ What .2 the Co*t,.6-t.o* fo, P,o3.4e*t F-*4 6oth 6) the Em01o)e, > Em01o)ee; Ans: 1he +mployee contributes 12D of his %her <asic 3alary / the same amount is contributed by the +mployer! Q @ I2 .t Com0-12o,) fo, the a11 the em01o)ee2 to co*t,.6-te to the P,o3.4e*t F-*4; Ans: +mployees drawin basic salary upto )s 65..%7 have to compulsory contribute to the Provident fund and employees drawin above )s 65.1%7 have an option to become member of the Provident "und!

10

Q!@ I2 .t 6e*ef.c.a1 fo, em01o)ee2 <ho 4,a< 2a1a,) a6o3e R2 $#(1=9 to 6ecome mem6e, of P,o3.4e*t F-*4; A*2G Ye2 6eca-2e 0,o3.4e*t f-*4 co*t,.6-t.o* 6) the em01o)e, > em01o)ee .2 *ot a ta7a61e .*come fo, I*come Ta7 0-,0o2e. Q"@ What .f a* em01o)ee <h.1e Ao.*.*g e2ta61.2hme*t ha2 a 6a2.c 2a1a,) of R2 " (( a*4 afte, 2ome 0e,.o4 of t.me h.2 6a2.c 2a1a,) .*c,ea2e2 a6o3e R2 $#(1=9/ 4oe2 he ha3e a* o0t.o* to te,m.*ate h.2 mem6e, 2h.0 fo,m the P,o3.4e*t f-*4 act; Ans: +mployee who while 5oinin the or anisation has a basic salary above )s 65.1%7 have an option to either become or avoid becomin member of Provident fund but employees whose basic salary while 5oinin the or ani@ation is less then )s 65.1%7 but after some period of time their basic increases above )s 65.1%7 have to compulsorily continue to be member of provident "und! Q#@ What .2 the co*t,.6-t.o* 0e,ce*tage to the P,o3.4e*t f-*4 a*4 Pe*2.o* Scheme; Ans: +mployeeIs contribution of 12D of basic salary is totally deposited in provident fund account whereas out of +mployerIs contribution of 12D, :!64D is contributed to Provident fund and 9!::D is deposited in Pension scheme! Q$@ Wh.ch fo,m ha2 to 6e f.11e4 <h.1e 6ecom.*g mem6e, of 0,o3.4e*t f-*4; Ans: #omination "orm #o 2 has to be filled to become a member of the Provident fund, form is available with () department! Q%@ Wh.ch fo,m ha2 to 6e f.11e4 <h.1e t,a*2fe,,.*g 0,o3.4e*t f-*4 4e0o2.t; Ans: &ou 5ust have to fill form no 1: to transfer your P!" amount! Q&@ What .2 the 0,o3.2.o* of the 2cheme .* the matte, of *om.*at.o* 6) a mem6e,; Ans: +ach member has to ma*e a nomination to receive the amount standin to his credit in the fund in the event of his death! $f he has a family, he has to nominate one or more person belon in to his family and none other! $f he has no family he can nominate any person or persons of his choice but if he subse'uently ac'uires family, such nomination becomes invalid and he will have to ma*e a fresh nomination of one or more persons belon in to his family! &ou cannot ma*e your brother your nominee as per the Acts!

Q'@ Whe* .2 a* em01o)ee e1.g.61e to e*Ao) 0e*2.o* 2cheme; Ans: "or an employee to become eli ible for Pension fund, he has to complete membership of the "und for 1. &ears! Q1(@ What 4oe2 .t mea* 6) co*t.*-o-2 2e,3.ce of te* )ea,2; Ans : Ahen we say continuous service of 1. years in +mployee Pension "und, we mean to say that durin services, for e! !, an employee who has wor*ed with J company for say : years, then he resi ned from that or anisation and 5oined & company, wherein he wor*ed for 2 years, then resi ned from there to 5oin establishment for 5 years but durin these 1. years of

11

service he has not withdrawn but transferred his +mployee pension fund, then we say continuous service of ten years! Q11@ Whe* ca* a* em01o)ee a3a.1 the 6e*ef.t of Em01o)ee 0e*2.o* f-*4 2cheme <h.ch he ha2 co*t,.6-te4 4-,.*g h.2 te* )ea,2 of co*t.*-e2 2e,3.ce; Ans: An employee can avail the benefit after completion of 59 years of service! Q1 @ What ha00e*2 to the 0,o3.4e*t f-*4 > Em01o)ee Pe*2.o* f-*4 .f a* em01o)ee <ho <a*t2 to ,e2.g* f,om the 2e,3.ce 6efo,e com01et.o* of te* )ea,2 of co*t.*-e2 2e,3.ce; Ans: +mployee can withdraw the P" accumulations by fillin "orms 19 / 1. ,, which is available with the () department! Q1!@ What .2 th.2 1' > 1(C fo,m; Ans: "orm #o 19 is for Provident fund withdrawal / "orm #o! 1. , is for Pension scheme withdrawal! Q1"@ Do <e get a*) .*te,e2t o* the amo-*t/ <h.ch .2 4e0o2.te4/ .* the P,o3.4e*t F-*4 acco-*t; Ans: ,ompound interest as declared by the Govt! is iven for every year of service! Q1#@ What .2 the acco-*t.*g )ea, fo, P,o3.4e*t f-*4 acco-*t; Ans: Accountin year is from March to "ebruary! Q1$@ What a,e the 6e*ef.t2 0,o3.4e4 -*4e, Em01o)ee P,o3.4e*t F-*4 Scheme; Ans: 1wo *inds of benefits are provided under the scheme7 a> Aithdrawal benefit b> <enefit of non 7)efundable advances Q1&@ What .2 the 0-,0o2e of the Em01o)eeE2 Pe*2.o* Scheme; Ans: 1he purpose of the scheme is to provide for 1> 3uperannuation pension! 2> )etirin Pension! :> Permanent 1otal disablement Pension 3uperannuation Pension: Member who has rendered eli ible service of 2. years and retires on attainin the a e of 59 years! )etirement Pension: member who has rendered eli ible service of 2. years and retires or otherwise ceases to be in employment before attainin the a e of 59 years! 3hort service Pension: Member has to render eli ible service of 1. years and more but less than 2. years!

12

Q1'@ :o< m-ch t.me 4oe2 .t ta?e2 to ,ece.3e P.F > 0e*2.o* mo*e) .f a* em01o)ee ,e2.g*2 f,om the Se,3.ce; Ans: #ormally the procedure for receivin P!" / Pension money is, the employee has to fill 19 / 1. c "orm and submit the same to P" ?es*, which is then submitted to the P!" office after two months, this two months is nothin but a waitin period as the rules are that an employee should not be in employment for two months after resi nin if he has to withdraw his P!" amount! After completion of two months the form is submitted to the re ional provident fund ,ommissioner office after which the employee receives his amount alon with interest within a period of 9. days! Q (@ Do <e ,ece.3e mo*e) th,o-gh 0o2ta1 o,4e,; Ans: Previously there was a procedure wherein member use to et P!" throu h Postal order but now while submittin the P!" form withdrawal form you have to mention your savin <an* account #o! / the complete address of the <an* where you hold the account! Q 1@ :o< <o-14 I ?*o< the amo-*t of acc-m-1at.o*2 .* m) PF acco-*t; Ans: P" office sends an annual statement throu h the employer, which ives details about the P" accumulations! 1he statement contains details li*e, ;penin balance, amount contributed durin the year, withdrawal durin the year, interest earned and the closin balance in the P" account! 1his statement is sent by the P" department on completion of the financial year! Q @ <h.ch e2ta61.2hme*t2 a,e co3e,e4 6) the Act; Ans: Any establishment, which employs 2. or more employees! +0cept apprentice and casual laborers, every +mployee includin contract labour who is in receipt of <asicK ?A salary up to )s! 65.. p!m! is covered by the Act! Q !@ I* ca2e afte, ,eg.2te,.*g the e2ta61.2hme*t at a*) 0o.*t .* t.me/ the *-m6e, of em01o)ee2 <o,?.*g .* .t 6ecome2 1e22 tha* ( the* <.11 the Act a001); Ans: Any establishment which has been covered under the Act once shall continue to be overned by the Act even if the number of persons employed therein at any time falls below 2.! Q "@ I2 the Act a001.ca61e to a facto,)/ <h.ch .2 c1o2e4 4o<* 6-t .2 em01o).*g a fe< em01o)ee2 to 1oo? afte, the a22et2 of the e2ta61.2hme*t; Ans: #o, Ahere the establishment is closed down and only four security men are employed for *eepin a watch over the assets and properties of the establishments, the Act would not be applicable! Q #@ I2 a t,a.*ee a* em01o)ee -*4e, the Act; Ans: &es, a trainee would be considered as an employee as per the Act but in case the trainee is an apprentice under the Apprentice8s Act then he% she will not be considered as an employee under this Act! Q $@ I2 .t 0o22.61e to a00ea1 the o,4e,2 of the Ce*t,a1 +o3e,*me*t o, the Ce*t,a1 P,o3.4e*t F-*4 Comm.22.o*e,;

13

Ans: &es, there is a body called as Provident "und Appellate 1ribunal where an employer can appeal!

Q %@ Who .2 the a-tho,.t) to 4ec.4e ,ega,4.*g the 4.20-te2 .f a*); Ans: $n case there is a dispute re ardin the applicability of the Act or the 'uantum of money to be deducted etc! the authority to decide are the i> ,entral Provident "und ,ommissioner, ii> any Additional Provident "und ,ommissioner, iii> any Additional ,entral Provident "und ,ommissioner iv> any ?eputy Provident "und ,ommissioner v> any )e ional Provident "und ,ommissioner or vi> any Assistant Provident "und ,ommissioner Q &@ What .* ca2e the,e a,e <o,?e,2 .*3o13e4 a2 Co*t,act 1a6o-,; Ans: $t is the responsibility of the ,ontractor to deduct the P" and submit a statement to the Principal +mployer in the prescribed format by 4th of every month! 1he ,ompany becomes the Principal +mployer would be responsible for the P" deduction of the wor*ers employed on contract basis! Q '@ A,e the 0e,2o*2 em01o)e4 6) o, th,o-gh a co*t,acto, co3e,e4 -*4e, the Scheme; Ans: Persons employed by or throu h a contractor are included in the definition of L employee L under the +mployee8s Provident "inds Act, 1952, and as such, they are covered under the 3cheme! Q!(@ I* ca2e the Co*t,acto, fa.12 to 4e4-ct a*4 2-6m.t the PF amo-*t f,om the co*t,act <o,?e,2 the* <hat .2 to 6e 4o*e; A*2G The Com0a*) 6e.*g the P,.*c.0a1 em01o)e, .2 ,e20o*2.61e fo, the PF to 6e 4e4-cte4 f,om the Co*t,act <o,?e,2 a2 <e11. I* ca2e the Co*t,acto,2 fa.12 to 4e4-ct a*4 2-6m.t the PF 4-e2 the* the Com0a*) ha2 to 0a) the amo-*t a*4 ca* 1ate, o* ,eco3e, the amo-*t f,om the Co*t,acto,. Q!1@ Co-14 the em01o)e, 6e 0-*.2he4 .* ca2e the ,em.tta*ce of co*t,.6-t.o* 6) h.m .2 4e1a)e4 .* a Ba*? o, 0o2t off.ce; the Ans: +mployer cannot be punished or penali@ed in case there is a delay in the remittance of contribution on account of delay in <an* or post office! Q! @ What ha00e*2 .* ca2e the,e .2 a 2a1a,) ,e3.2.o* a*4 a ,a.2e .* the 6a2.c 2a1a,) of the em01o)ee a*4 a,,ea,2 *ee4 to 6e 0a.4/ Do <e *ee4 to 4e4-ct PF f,om the a,,ea,2 a2 <e11; Ans: Arrears are considered to be emoluments earned by the employee and P" is to be deducted from such arrears! Q!!@ I2 .t 0o22.61e fo, a* em01o)ee to co*t,.6-te at a h.ghe, ,ate of .*te,e2t tha* 1 J; Ans: &es, if an employee desires to contribute an amount at a hi her rate of interest than 12 D of basic salary then they can do so but it does not become obli atory for the employer

14

to pay anythin above than 12 D! 1his is called voluntary contribution and a Hoint ?eclaration "orm needs to be filled up where the employer and the employee both have to ive a declaration as to the rate at which P" would be deducted! Q!"@ What .2 the .*te,e2t o* the PF acc-m-1at.o*2; Ans: ,ompound interest as declared by ,entral Govt! is paid on the amount standin to the credit of an employee as on 1st April every year!

Bac? to Co*te*t2 Page

SPECIAL PROIISION FOR INTERNATIONAL WORKERS W.E.F 11th NOI ((&

1@ Who .2 a* I*te,*at.o*a1 <o,?e,; An $nternational wor*er may be an $ndian wor*er or a forei n national! 1his means an $ndian wor*er who has divided his%her career between $ndia and another country with whom $ndia has entered into a bilateral 3ocial 3ecurity a reement or a forei n national wor*in in $ndia! =Para 2 ff> @ Who .2 a* Be7c1-4e4 em01o)eeC -*4e, the2e 0,o3.2.o*2; A Mdetached wor*erI posted in an establishment in $ndia but contributin to the social security pro ramme of the source country in terms of the bilateral 3ocial 3ecurity a reement si ned between that country and $ndia shall be an Me0cluded employeeI under these provisions! =Para 2 f> !@ Who .2 a B4etache4 <o,?e,C; An $nternational wor*er, bein not an $ndian employee, contributin to the social security pro ramme of the source country in terms of the bilateral 3ocial 3ecurity a reement si ned between that country and $ndia and e0empt from ma*in any contribution to the $ndian system for the period and terms as set out in such an a reement is a Mdetached wor*erI for the purpose of compliance under the $ndian system! =Para 2 f> "@ What 4oe2 the te,m BI*4.a* em01o)eeC mea*; An employee, holdin or entitled to hold an $ndian passport and employed by an establishment covered under the +P" and MP Act, 1952 is an $ndian employee under the 3pecial provisions in respect of $nternational wor*ers! BPara 2 ff =a>C

15

#@ Who a11 2ha11 6ecome the mem6e,2 of the f-*4; a> +very $nternational wor*er, other than an Me0cluded employeeI 7 from 1st #ov!2..9! b> +very e0cluded employee, on ceasin the status, 7 from the be innin of the month followin that in which he%she losses the status! =Para 26> $@ Wh.ch catego,) of e2ta61.2hme*t2 2ha11 ta?e cog*.Ha*ce of the2e 0,o3.2.o*2; All such establishments covered%coverable under the +mployeesI Provident "und and Miscellaneous Provisions Act, 1952 that employ M$nternational wor*ersI either in $ndia or abroad shall ta*e co ni@ance of these provisions! =Para 26> %@ Whethe, PF ,-1e2 <.11 a001) to a* em01o)ee .f h.2 2a1a,) .2 0a.4 o-t2.4e I*4.a; &es, the provisions will apply irrespective of where the salary is paid! =Para :.> &@ Whethe, PF <.11 6e 0a)a61e o*1) o* the 0a,t of 2a1a,) 0a.4 .* I*4.a .* ca2e of 201.t 0a),o11; $n case of split payroll the contribution shall be paid on the total salary earned by the employee! =Para 29>

'@ B5o*th1) Pa)C fo, ca1c-1at.*g co*t,.6-t.o*2 to 6e 0a.4 -*4e, the Act; 1he monthly pay shall be the pay as specified under Para 29 of the +P" 3cheme, 1952, which covers: N <asic wa es =all emoluments paid or payable in cash while on duty or on leave % holiday e0cept ?earness allowance, (ouse rent allowance, overtime allowance, bonus, commission or any other similar allowance payable in respect of employment and any presents made by the employer> N ?earness allowance =all cash payments by whatever name called paid to an employee on account of a rise in the cost of livin > N )etainin allowance N ,ash value of any food concession 1(@ What 0o,t.o* of 2a1a,) o* <h.ch PF <o-14 6e 0a)a61e .* ca2e a* .*4.3.4-a1 ha2 m-1t.01e co-*t,) ,e20o*2.6.1.t.e2 a*4 20e*42 2ome 0a,t of h.2 t.me o-t2.4e I*4.a; ,ontribution is payable on the total salary payable on account of the employment of the employee employed for wa es by establishment covered in $ndia even for responsibility outside $ndia also!B3ection 2 =b>C 11@ I2 the,e a m.*.m-m 0e,.o4 of 4a)2 of 2ta) .* I*4.a/ <h.ch the em01o)ee ca* <o,? .* I*4.a <.tho-t t,.gge,.*g PF com01.a*ce; #o, there is no any minimum period of employment in $ndia is re'uired to be eli ible for membership! +very eli ible $nternational wor*er has to be enrolled from the first date of his employment in $ndia!

16

1 @ What co*2t.t-te2 the Pe*2.o*a61e 2e,3.ce; 1he service for which contributions are received and%or receivable as also the period of service rendered and considered as eli ible under a 3ocial 3ecurity A reement that may cover an $nternational wor*er! =Para 1. of +P3> 1!@ :o< .2 Pe*2.o*a61e 2e,3.ce 4ete,m.*e4; Ahile the period of service for which contributions are received under the +P3 will decide the 'uantum of pension admissible, the period of service rendered under a relevant social security a reement shall be ta*en into account only for the purpose mentioned under such a reement! =Para 1. of +P3> 1"@ I2 the,e a ca0 o* the 2a1a,) -0 to <h.ch the co*t,.6-t.o* ha2 to 6e ma4e 6) 6oth the em01o)e, a2 <e11 a2 a* em01o)ee; #o, there is no cap on the salary up to which the contribution has to be made by both the employer as well as an employee! 1#@ I2 the,e a ca0 o* the 2a1a,) -0 to <h.ch the em01o)e,C2 2ha,e of co*t,.6-t.o* ha2 to 6e 4.3e,te4 to EPS; &es, the cap on the salary up to which the employerIs share of contribution has to be diverted to +P3 remains at )s!65..! =Para : of +P3> 1$@ What .2 a 2oc.a1 2ec-,.t) ag,eeme*t FSSA@; A social security a reement is a bi7lateral instrument to protect the interests of the wor*ers in the host country! $t bein a reciprocal arran ement enerally provides for avoidance of no covera e or double covera e and e'uality of treatment with the host country wor*ers!

1%@ What a,e the 0,o3.2.o*2 co3e,e4 .* a 2oc.a1 2ec-,.t) ag,eeme*t; Generally a social security a reement covers : provisions! 1hey are: a@ Detachme*t Applies to employees sent on postin in the host country, provided he%she is complyin under the social security system of the home country! 6@ E70o,ta6.1.t) of Pe*2.o* Provision for payment of pension benefits to the beneficiary choosin to reside in the territory of the home country directly with out any reduction as also to a beneficiary choosin to reside in the territory of a third country! c@ P,o3.2.o* fo, tota1.2at.o* of Be*ef.t2 1he period of service rendered by an employee in the host country to be counted for the Oeli ibilityP purpose and the payment may be restricted to the len th of service, on pro7rata basis! 1&@ What .2 the 2tat-2 of the SSA2; As of today, 3ocial security a reements have been si ned with <el ium, "rance and Germany! <ut the date of entry into force is yet to be notified! #e otiations are at various sta es with 1he #etherlands, ,@ech )epublic, (un ary, #orway, 3wit@erland, 3weden, 2u0embour , E3A and Australia! Government level tal*s are on with many other countries

17

where si@able numbers of $ndian wor*ers are employed! Althou h not a formal a reement, there is a reciprocal arran ement between $ndia and Qorea to settle the claims of the employees on completion of employment in the host country 1'@ Sho-14 the e1.g.61e em01o)ee2 f,om Be1g.-m/ F,a*ce a*4 +e,ma*) co*t,.6-te -*4e, the S0ec.a1 0,o3.2.o*2 t.11 2-ch t.me the B4ate of effectC .2 *ot.f.e4; &es, the $nternational wor*ers from <el ium, "rance and Germany shall be enrolled as members of +P" till such time the Mdate of effectI is notified by the Government of $ndia and after such wor*ers obtainin a Mdetachment certificateI from the appropriate authority in their countries, respectively! 1ill the Mdate of effectI is notified no $ndian employee posted to these countries and none of the employees from these countries wor*in in $ndia shall be eli ible for detachment status! (@ I*4.a* em01o)ee2 <o,?.*g a6,oa4 a*4 co*t,.6-t.*g to Soc.a1 Sec-,.t) Scheme of that co-*t,) <.th <hom I*4.a ha2 2oc.a1 2ec-,.t) ag,eeme*t. Sho-14 the) 6e co3e,e4 fo, PF .* I*4.a o, 2ho-14 6e t,eate4 a2 e7c1-4e4 em01o)ee; As of today the date of effect of the 33As is yet to be notified! 1herefore, a posted employee, whose name is retained in the pay bill maintained by the employer in $ndia, shall be covered under +P"! $f an $ndian employee is directly employed by a local employer abroad, such an employee shall be covered by the host country le islations! 1@ Co-14 the te,m KI*4.a* em01o)eeK mea* a*) fo,e.g* *at.o*a1 <ho .2 4.,ect1) em01o)e4 6) a* I*4.a* e2ta61.2hme*t ..e. a 0e,2o* <ho .2 .* I*4.a *ot -*4e, a 2eco*4me*t a,,a*geme*t o, a*) 4e0-tat.o* f,om a fo,e.g* em01o)e, 6-t h.,e4 4.,ect1) 6) the I*4.a* e2ta61.2hme*t -*4e, 1oca1 te,m2 a*4 2e,3.ce co*4.t.o*2; 1he term $ndian employee shall mean only such of those employees as e0plained under R!#o -! #o forei n national can be termed an $ndian employee!

@ Whethe, a Th.,4 Co-*t,)FC@ Nat.o*a1 4om.c.1e4 .* a co-*t,) FB@ <.th <h.ch I*4.a FA@ ha2 a 2oc.a1 2ec-,.t) ag,eeme*t .2 e1.g.61e fo, 6e*ef.t -*4e, the 2oc.a1 2ec-,.t) ag,eeme*t 6et<ee* I*4.a a*4 that co-*t,); #ormally social security a reements are si ned to cover the M#ationalsI of the respective countries! 1herefore, the above employee may be eli ible for the benefit provided that the 1hird country =,> has si ned an enablin a reement with both $ndia =A> as well as the 3econd country =<>! !@ I*4.a* em01o)ee2 <o,?.*g a6,oa4 a*4 co*t,.6-t.*g to Soc.a1 Sec-,.t) Scheme of that co-*t,) <.th <hom I*4.a DOES NOT ha3e 2oc.a1 2ec-,.t) ag,eeme*t. Sho-14 the) 6e co3e,e4 fo, PF .* I*4.a o, 2ho-14 6e t,eate4 a2 e7c1-4e4 em01o)ee; A posted employee, who is drawin wa es from the employer in $ndia, shall be covered under +P"! $f an $ndian employee is directly employed by a local employer abroad, such an employee shall be covered by the host country le islations! "@ Fo,e.g* *at.o*a12 <ho a,e em01o)e4 .* I*4.a a*4 6e.*g 0a.4 .* fo,e.g* c-,,e*c)/ <hethe, to 6e co3e,e4 o, *ot; &es, $nternational wor*ers drawin salary in any currency and in any manner are to be covered! =3ection 2 f>!

18

#@ Fo,e.g*e,2 <ho a,e em01o)e4 4.,ect1) a2 a* em01o)ee 6) a* I*4.a* e2ta61.2hme*t a6,oa4 to 6e co3e,e4 o, *ot; 1he local employees of an $ndian establishment en a ed abroad shall be covered by the local le islations $@ Co*2.4e,.*g that .* mo2t co-*t,.e2 .22-a*ce of <o,? 0e,m.t to a* .*4.3.4-a1 .2 a t,.gge, fo, 2oc.a1 2ec-,.t) com01.a*ce/ <hethe, the 0-,0o2e a*4 t)0e of 3.2a ..e. 6-2.*e22= em01o)me*t <.11 6e a 4ete,m.*a*t fo, a 0e,2o* to 6e co*2.4e,e4 a2 a* I*te,*at.o*a1 Wo,?e,; 1he purpose of the visit of an individual is the main determinant for social security compliance! 1he type of visa may help in determinin the purpose of visit! "or e0ample 7 a forei n national comin in to $ndia under an employment visa is wor*in in $ndia! %@ Whethe, 6e*ef.t of ,ec.0,oc.t) ca* 6e e7te*4e4 to a* I*te,*at.o*a1 Wo,?e, .f h.2 home co-*t,) 0,o3.4e2 fo, e7em0t.o* f,om 2oc.a1 2ec-,.t) to I*4.a* *at.o*a12 go.*g to <o,? .* that co-*t,) -*4e, .t2 4ome2t.c 1a< e3e* tho-gh the,e .2 *o 2oc.a1 2ec-,.t) ag,eeme*t <.th I*4.a; $n the absence of a formal a reement the benefit of reciprocity is available at the time of withdrawal of the pension claim and not at the time of covera e! =Para 1- of +P3> &@ Whe,e <.11 the 2-,3.3o, 6e*ef.t2 6e 4e1.3e,e4 .* ca2e of a co3e,e4 em01o)ee ho14.*g a 0a220o,t/ 6e.*g othe, tha* a* I*4.a* 0a220o,t/ .22-e4 6) a co-*t,) <.th <h.ch I*4.a .2 *ot ha3.*g a SSA; $n the absence of a 33A, the survivor benefits such as widow%widower pension, children %orphan pension, nominee%parent pension, etc! as the case may be, shall be payable to a ban* account of the eli ible beneficiary in $ndia! =Para 1- of +P3> '@ What .2 the c,.te,.o* fo, ,ece.3.*g the <.th4,a<a1 6e*ef.t fo, the 2e,3.ce2 of 1e22 tha* 1( )ea,2 -*4e, EPS/ 1''#; $n respect of employees hailin from the countries with which $ndia has si ned a 33A, the withdrawal benefit shall be paid or accounted for as per the provisions of the 33A! $n all other cases, it shall be uided by the principle of reciprocity with reference to the entitlement available to $ndian employees in the other country! =Para 1- of +P3> !(@ :o< 1o*g a* I*4.a* em01o)ee ,eta.*2 the 2tat-2 of LI*te,*at.o*a1 <o,?e,M; An $ndian employee attains the status of O$nternational wor*erP only on account of his employment in a country with which $ndia has si ned a 33A! (e shall remain in that status till the time he avails the benefits under a social security pro ramme covered under that 33A! =Para 2 f> !1@ U*4e, <hat co*4.t.o* the co*t,.6-t.o*2 ,ece.3e4 .* the PF acco-*t a,e 0a)a61e a1o*g <.th .*te,e2t; 1he full amount standin to the credit of a memberIs account is payable if any one of the circumstances mentioned under Para 69 of the +P" 3cheme, 1952 is fulfilled

:2> $s there a cap on the salary up to which the contribution has to be made to +?2$ 3cheme by both the employerS Ye2/ the ca0 o* the 2a1a,) -0 to <h.ch co*t,.6-t.o* ha2 to 6e ma4e to EDLI Scheme ,ema.*2 -*cha*ge4 at R2.$#((!

19

Bac? to Co*te*t2 Page

T:E PAY5ENT OF BONUS ACT91'$#

Q1@ What a,e the o6Aect2 of the Act; Ans: 1his act ensures that employees have a statutory ri ht to share the profits of the employer! Q @ What .2 the m.*.m-m 6o*-2 0,e2c,.6e4 6) the Act; Ans: 1he minimum bonus prescribed by the Act is 9!:: D of annual basic salary, which is e'uivalent to one months basic salary or )s! 1.. whichever is hi her! Q!@ What .2 the ma7.m-m 6o*-2 0a)a61e -*4e, the Act; Ans: 1he ma0imum bonus payable under the Act is two and a half months basic salary or 2. D of annual basic salary!

20

Q"@ What .2 the a001.ca6.1.t) of the act; Ans: 1his Act is applicable to all establishments employin 2. or more persons! Q#@ I* ca2e afte, ,eg.2te,.*g the e2ta61.2hme*t at a*) 0o.*t .* t.me/ the *-m6e, of em01o)ee2 <o,?.*g .* .t 6ecome2 1e22 tha* ( the* <.11 the Act a001); Ans: Any establishment which has been covered under the Act once shall continue to be overned by the Act even if the number of persons employed therein at any time falls below 2.! Q$@ Who a,e e*t.t1e4 to 6e 0a.4 6o*-2; Ans: Any employee who is drawin a salary or wa es up to )s! 1.,... per month and who has wor*ed for a minimum period of :. days in a year is entitled to bonus! Q%@ I2 a ca2-a1 <o,?e, F<ho2e Ao6 .2 *ot th,o-gho-t the )ea, 6-t o*1) fo, a fe< mo*th2@ e*t.t1e4 to 6o*-2; Ans: 1he only criteria for bein entitled to bonus is to complete minimum period of :. days of wor* in a year to be eli ible for bonus! Q&@ Fo, the 0-,0o2e of th.2 Act/ <hat 4oe2 the te,m L<age2M .*c1-4e; Ans: "or the purpose of this Act wa es means Ba2.c 2a1a,) N D. A. and does not include allowances, overtime salary, ()A, bonus, ratuity, employer8s contribution to P"! Q'@ What .2 the t.me 1.m.t fo, a* em01o)e, to 0a) the 6o*-2; Ans: <onus must be paid within a period of 9 months from the close of the accountin year! $f an employee does not et the bonus due to him, he can apply to the Government! Q1(@ Wh) ha2 the Act 20ec.f.e4 the ma7.m-m a*4 m.*.m-m 1.m.t of the 6o*-2; Ans: 1he principle behind fi0in the ma0imum and minimum limit of the bonus is that the rate of bonus should not fluctuate from year to year! Q11@ Ca* a* em01o)e, ho14 o, 4e4-ct the 6o*-2 0a)a61e to a* em01o)ee. Ans: ;nly in case the employee is found uilty of misconduct causin financial loss to the employer, then the employer can deduct the or hold the employee8s bonus! Q1 @ I* ca2e the,e .2 a 4.20-te ,ega,4.*g the 0a)me*t of 6o*-2 the* <he* .2 the 6o*-2 0a)a61e; Ans: <onus is payable to the employee within :. days of settlement of such dispute! Q1!@ Ca* the em01o)e, ha3e a* ag,eeme*t <.th the em01o)ee fo, a 4.ffe,e*t ,ate of 0a)me*t of 6o*-2; Ans: &es, there can be an a reement between the employer and the employee for a different rate of payment of bonus but then they need to follow the Act,i!e!, Ma0imum of 2. D of basic / minimum of 9!:: D of basic salary! Q1"@ Wh.ch e2ta61.2hme*t2 a,e e7em0t f,om 0a).*g 6o*-2 to .t2 em01o)ee2;

21

Ans: Any establishment which is newly set up is e0empted from payin bonus to its employees in the first five years! $f however the employer ains profits in the first five years then he has to pay bonus to its employees! Q1#@ I* ca2e the,e .2 a cha*ge .* the o<*e,2h.0 of the e2ta61.2hme*t the* .2 the e2ta61.2hme*t e7em0t f,om 0a).*g 6o*-2; Ans: #o, even if the ownership of the establishment has chan ed it will not be considered as a newly set up establishment and has to pay bonus! Q1$@ Whe* .2 the em01o)ee 4.2D-a1.f.e4 to ,ece.3e 6o*-2; Ans: Any employee who is dismissed from the services on account of fraud, riotous or violent behaviour, theft, misappropriation, or causes dama e to company properties looses his claim on bonus! Q1%@ I* ca2e the em01o)ee .2 e*t.t1e4 to 6o*-2 of 1a2t )ea, 6-t th.2 )ea, he= 2he .2 4.2m.22e4 o* acco-*t of theft/ f,a-4 a*4 4.2ho*e2t) the* ca* the em01o)e, ho14 the em01o)eeE2 0,e3.o-2 6o*-2; Ans: $n such a case the employer cannot hold the due bonus of the previous year! Q1&@ If the em01o)ee .2 1a.4 off a*4 0a.4 1a) off <age2 the* .2 the em01o)ee e*t.t1e4 to 6o*-2 fo, the 0e,.o4 he= 2he .2 1a.4 off; Ans: $n case of lay off the employee receives lay off wa es then these wa es would be considered as wa es in the purview of this Act and the employer needs to pay bonus! Q 1'@ I* ca2e the em01o)e, ha2 a 1ot of 6,a*che2= 4e0a,tme*t2 <h.ch a,e 20,ea4 o3e, ma*) 01ace2 o, 2tate2 the* <.11 .t co*2.4e,e4 a2 2e0a,ate e2ta61.2hme*t2 o, o*e 2.*g1e e2ta61.2hme*t; Ans: $n such cases the establishment would be considered as one sin le establishment!unless a separate balance sheet and profit or loss account is prepared!

Bac? to Co*te*t2 Page

T:E 5ATERNITY BENEFIT ACT91'$1 22

Q1@ What .2 the 0-,0o2e of th.2 Act; Ans: 1he purpose of this Act is to re ulate the employment of women wor*ers for certain period before and after childbirth! Q @ To <h.ch e2ta61.2hme*t2 .2 the Act a001.ca61e; Ans: 1his Act is applicable to every establishment employin 1. or more persons! Q!@ To <h.ch em01o)ee2 .2 the Act a001.ca61e; Ans: 1his act is applicable to female employees who are employed whether on re ular employment or on casual basis! Q"@ A,e 4a.1) <age2 em01o)ee2 e*t.t1e4 to mate,*.t) 6e*ef.t -*4e, th.2 Act; Ans: "emale employees employed as casual employees% daily rated employees are also entitled to maternity benefit under this Act! Q#@ To <hom .2 the mate,*.t) 6e*ef.t 0a)a61e .* ca2e of 4eath of a* em01o)ee; Ans: $n case of death of an employee maternity benefit is payable to the person nominated by or the le al heir of the woman! Q$@ Ca* a <oma* 6e te,m.*ate4 <he* 2he .2 o* mate,*.t) 1ea3e; Ans: A woman cannot be terminated when she is on maternity leave! Q%@ What .2 the 0e,.o4 fo, <h.ch a <oma* .2 e*t.t1e4 to mate,*.t) 6e*ef.t; Ans: A woman is entitled to maternity benefit of 12 wee*s, si0 wee*s before and si0 wee*s after the due date of delivery! Q&@ What .2 the e1.g.6.1.t) of a* em01o)ee to c1a.m mate,*.t) 6e*ef.t; Ans: Any woman who has wor*ed for more than 9. days durin the preceedin 12 months of the date of delivery! Q'@ What .2 the ,ate at <h.ch the <oma* .2 e*t.t1e4 to mate,*.t) 6e*ef.t; Ans: )ate of Maternity benefit is the rate of avera e daily wa e for the period she has wor*ed! Q1(@ What .2 mea*t 6) LA3e,age Da.1) Wage2M; Ans: Avera e daily wa es means the avera e of the women wa es payable to her for the days on which she has wor*ed durin the period of : calendar months immediately preceedin the date from which she absents herself! Q11@ What .2 the mate,*.t) 6o*-2 a <oma* .2 e*t.t1e4 to; Ans: A woman is entitled to maternity bonus of 1... )upees in case no pre7natal or postnatal care is provided by the employer!

Q1 @ I2 me4.ca1 6o*-2 0a.4 o3e, a*4 a6o3e the mate,*.t) 6e*ef.t;

23

Ans: &es, Medical bonus of )s! 1... is provided over and above the maternity benefit! Q1!@ I2 a <oma* e*t.t1e4 to a*) 1ea3e .* ca2e of .11*e22 a,.2.*g o-t of 0,eg*a*c) 4e1.3e,); Ans: A woman is entitled to leave with wa es up to ma0imum one month for illness arisin out of pre nancy, delivery, pre7mature birth or miscarria e!! Q1"@ I2 a <oma* e*t.t1e4 to 1ea3e <.th <age2 fo, m.2ca,,.age; Ans: $n case of miscarria e a woman is entitled to leave with wa es at the rate of maternity benefit for a period of 6 wee*s immediately followin the date of miscarria e! Q1#@ What .2 the e*t.t1eme*t of a <oma* .* ca2e of 5TP F5e4.ca1 Te,m.*at.o* of P,eg*a*c)@; Ans: $n case of M1P =Medical 1ermination of Pre nancy> a woman is entitled to leave with wa es at the rate of maternity benefit for a period of 6 wee*s immediately followin the date of M1P! Q1$@ I2 .t *ece22a,) fo, a <oma* to <o,? fo, &( 4a)2 .* the 0,ecee4.*g 1 mo*th2 to c1a.m 6e*ef.t .* ca2e of 5TP o, m.2ca,,.age; Ans: #o, there is no such condition laid out for a woman to claim benefit in case of M1P or miscarria e! Q1%@ I* 6,.ef/ <hat a,e the o61.gat.o*2 of the em01o)e,; Ans: 1he employer is re'uired to: 1!+0hibit an abstract of the Act in the establishments 2!Maintain a muster roll :!3ubmit annual returns Q1&@ What .2 the 1ea3e e*t.t1eme*t fo, t-6ectom) o0e,at.o*; Ans: $n case of tubectomy operation, a woman is entitled to maternity benefit for a period of two wee*s immediately followin the day of her operation!

Bac? to Co*te*t2 Page

24

T:E CONTRACT LABOUR RE+ULATION > ABOLITION ACT91'%(

Q1@ What .2 the 0o1.c) go3e,*.*g th.2 Act; Ans: 1he policy of this Act is to prohibit the employment of contract labour in certain employments / overn the wor*in conditions and provide health and welfare facilities to the ,ontract 2abour! Q @ To <hom .2 th.2 Act a001.ca61e; Ans: 1his Act is applicable to every establishment where 2. or more wor*men are employed as ,ontract labour or every contractor employin 2. or more wor*men! $n certain 3tates it is applicable to 1. or more wor*men! =3tate Amendments>! Q!@ A,e the,e a*) e2ta61.2hme*t2 to <h.ch th.2 Act .2 *ot a001.ca61e; Ans: 1his Act is not applicable to establishments performin wor* only of an intermittent or casual nature! Q"@ What .2 the 0,.ma,) 4-t) of the co*t,acto,; Ans: 1he primary duty of the ,ontractor is to obtain a license as per the Act Q#@ What .2 the 0,.ma,) 4-t) of the 0,.*c.0a1 em01o)e,; Ans: 1he principal employer needs to et his establishment re istered under the Act! Q$@ What .2 the 0,oce4-,e fo, o6ta.*.*g a 1.ce*2e -*4e, the Act; Ans: 1he contractor needs to apply in the prescribed format and pay the necessary fees and security deposit to the 2icensin ;fficer under the Act! 1he security deposit is refundable! Q% What a6o-t the 3a1.4.t) of the 1.ce*2e; Ans: 1he license is valid for a year and it needs to be renewed every year! 1he application for license should be made within 6. days of the date of e0piry of the license! Q & What .* ca2e the ,eg.2t,at.o* ce,t.f.cate o, the 1.ce*2e .2 1o2t; Ans: $n case of loss of the re istration certificate or the license a duplicate should be obtained from the licensin officer on payment of prescribed fees! Q' What .* ca2e the em01o)e, 4oe2*Ct ta?e the ce,t.f.cate of Reg.2t,at.o* ; Ans: $n case the employer has not obtained the certificate of )e istration then he would be considered as a Principal employer for all the wor*er employed as ,ontract labour! Q1( What .2 the 1.a6.1.t) fo, the P,.*c.0a1 em01o)e, .* ca2e the co*t,acto, fa.12 to 0,o3.4e the 2a1a,) a*4 <e1fa,e fac.1.t.e2 a2 0e, the Act; Ans: 1he Principal +mployer would be responsible for the payment of wa es to the ,ontract 2abour and inurn the Principal +mployer can recover such amount from the payment due to the ,ontractor!

25

Q11 A2 0e, the Act <hat a,e the fac.1.t.e2/ <h.ch a,e to 6e 0,o3.4e4 to the co*t,act 1a6o-, > 6) <hom; Ans: A contractor is re'uired to provide canteens, rest room, latrines, urinals, drin*in waters, washin facilities, and first aid bo0es to the contract labour / in case the contractor fails to provide these facilities it is the responsibility of the principal employer to provide the same! Q1 . What a,e the 0o<e,2 of the .*20ecto,2 a00o.*te4 -*4e, the act; Ans: An inspector can enter any premise where contract labour is employed and e0amine any re ister, record or notices! (e can e0amine any wor*man employed in the premise and as* them about their wor* and payment! (e can also sei@e or ta*e copies of any re ister, record of a es or notices! Q1!. What ?.*4 of ,et-,*2 *ee4 to 6e 2-6m.tte4 6) the 0,.*c.0a1 em01o)e,; Ans: 1he principal employer needs to send annual returns in the prescribed form to the re isterin officer not later than 15th "eb of every year! Q1". What ?.*4 of ,et-,*2 *ee4 to 6e 2-6m.tte4 6) the co*t,acto,; Ans: +very contractor is re'uired to send to the licensin officer half yearly return in the prescribed form not later than :1st Huly / :1Han of every year!

Bac? to Co*te*t2 Page

26

T:E E5PLOYEE STATE INSURANCE ACT/ 1'"&

1. What .2 E.S.I. Scheme; $n addition to necessities of food, clothin , housin etc!, man needs security in times of physical and economic distress conse'uent upon sic*ness, disablement etc! 1he +mployeesI 3tate $nsurance 3cheme is an inte rated measure of 3ocial $nsurance embodied in the +mployeesI 3tate $nsurance Act and is desi ned to accomplish the tas* of protectin MemployeesI as defined in the +mployeesI 3tate $nsurance Act a ainst the ha@ards of sic*ness, maternity, disablement and death due to employment in5ury and to provide medical care to insured persons and their families! 1he 3cheme covers employees of non7 seasonal power7usin factories employin 1. or more persons! 1here is, however, a built7in provision for its e0tension to other establishments or classes of establishments, industrial, commercial, a ricultural or otherwise! 1he 3cheme has been pro ressively e0tended to cover employees in non7power usin factories employin 2. or more persons and to commercial establishments! . :o< 4oe2 the Em01o)ee2C State I*2-,a*ce Scheme a22.2t )o-; 1he dependence of an individual on cash income is a characteristic feature of modern economy! An interruption of money income even for a small period is, therefore, a hardshipF a prolon ed loss of income is indeed a catastrophe! <y comin forward to provide health protection and income maintenance in a series of oft7e0perienced contin encies li*e sic*ness, maternity, disablement and death due to employment in5ury, the +mployeesI 3tate $nsurance 3cheme tends to ameliorate your economic an0iety and to be a friend in need and distress! !. Wh) .2 .t ca11e4 a :ea1th I*2-,a*ce Scheme; 1he +mployeesI 3tate $nsurance 3cheme performs a dual roleF by providin assistance in *ind =medical care> it tries to restore your health and wor*in capacity and by assistance in cash =cash benefit> it tries to sustain you when your income is interrupted! Aith a better and facile health protection, reater vitality, and assurance of income7maintenance in times of need, it ma*es you every inch a better, a healthier, secure wor*er and therefore, a happier man! 1he assistance comes to you not as an act of benevolence but in virtue of an ac'uired ri ht! ". Who a4m.*.2te,2 the Em01o)ee2C State I*2-,a*ce Scheme; 1he +mployeesI 3tate $nsurance 3cheme is administered by a corporate body called the +mployeesI 3tate $nsurance ,orporation =+3$,>, which has members representin +mployees, +mployers, the ,entral Government, 3tate Governments, Medical Profession and the Parliament! 1he ?irector General is the ,hief +0ecutive ;fficer of the ,orporation and is also an e07officio member of the ,orporation! 1he other bodies at the national level are the 3tandin ,ommittee =a representative body of the ,orporation> and the Medical <enefit ,ouncil, a speciali@ed body which advises the ,orporation on administration of Medical <enefit! At the )e ional and 2ocal levels, the )e ional <oards and 2ocal

27

,ommittees have been constituted! 1here is, thus, an association of interests and interest roups at all levels! +3$, is the trustee of the interests of the insured persons! $t dischar es its obli ations and duties throu h a networ* of )e ional ;ffices and 2ocal ;ffices, (ospitals and ?ispensaries spread over the entire country! #. Whom 4oe2 the Scheme 0,otect; 1he 3cheme protects all OemployeesP en a ed on a monthly remuneration not e0ceedin )s! 1.,...%7 in a factory%establishment to which the Act applies! Persons employed for wa es on any wor* connected with the administration of the factory or establishment or any part, department or branch thereof or purchase of raw materials, or distribution or sale of the product of a factory or establishment are also covered! Mines, )ailway )unnin 3heds, #aval, Military and Air "orce Aor*shops and specified seasonal factories are e0cluded! 1he scheme also provides full medical cover to the dependants of insured persons! $n the event of death of an insured person due to employment in5ury dependants become eli ible to cash benefit!

$.

Whe,e 4o Em01o)ee2C State I*2-,a*ce F-*42 come f,om; 1he +mployeesI 3tate $nsurance "unds are primarily built out of employers contribution and employees contribution payable monthly as a fi0ed percenta e of wa es!

%.

:o< a,e the em01o)ee2 ,eg.2te,e4 -*4e, the Scheme; 3imultaneously with his%her entry into employment in a covered factory or establishment, an employee is re'uired to fill in a ?eclaration "orm! 1he employee is then allotted a )e istration #umber, which distin uishes and identifies the person for the purposes of the 3cheme! A person is re istered once and once only upon his entry in insurable employment!

&.

What .2 a* I4e*t.t) Ca,4; ;n re istration every insured person is provided with a O1emporary $dentification ,ertificateP which is valid ordinarily for a period of : months but may be e0tended, if necessary, for a further period of : months! Aithin this period, the $nsured Person is iven a permanent Ofamily photo $dentity ,ardP in e0chan e for the ,ertificate! 1he $dentity ,ard serves as a means of identification and has to be produced at the time of claimin medical care at the dispensary%clinic and cash benefit at the 2ocal ;ffice of the ,orporation! $n the event of chan e of employment, it should be produced before the new employer as evidence of re istration under the 3cheme to prevent any duplicate re istration! 1he $dentity ,ard bears the si natures%thumb impression of the insured person! 3ince medical benefit is also available to the families of insured persons, the particulars of family members entitled to Medical <enefit are also iven in the $dentity ,ard affi0ed with a postcard si@e family photo! $f you lose your $dentity ,ard before it has run its normal life, a duplicate card is issued on payment as prescribed!

'.

What a,e the ,ate2 of co*t,.6-t.o*; ,ontributions payable in respect of an employee comprise of employerIs contribution and employeeIs contribution prescribed in 3chedule $ of the Act! An employee covered under the scheme has to contribute 1!45D of the wa es whereasF an employer contributes -!45D of the wa es payable to an employee! 1he total contribution in respect of an employee thus wor*s out to 6!5.D of the wa es payable!

1(. Who .2 e7em0te4 f,om 0a)me*t of co*t,.6-t.o*; +mployees earnin less than )s -.%7 a day are e0empted from payment of contribution! 1he employers share of contribution is, however, payable! 11. :o< a,e the Co*t,.6-t.o*2 co11ecte4;

28

1he ,ontribution is deposited by the +mployer in cash or by che'ue at the desi nated branches of some nationali@ed ban*s! 1he responsibility for payment of all contributions is that of the employer with a ri ht to deduct the +mployeesI share of contributions from employeesI wa es relatin to the period in respect of which the ,ontribution is payable! 1 . What a,e BCo*t,.6-t.o* Pe,.o42C a*4 BBe*ef.t Pe,.o42; Aor*ers, covered under the +3$ Act, are re'uired to pay contribution towards the scheme on a monthly basis! A contribution period means a si07month time span from 1st April to :.th 3eptember and 1st ;ctober to :1st March! 1hus, in a financial year there are two contribution periods of si0 months duration! ,ash benefits under the scheme are enerally lin*ed with contributions paid! 1he benefit period starts three months after the closure of a contribution period! 1he two types of periods are illucidated below: T Co*t,.6-t.o* Pe,.o4 1st April to :.th 3eptember Co,,e20o*4.*g Be*ef.t 0e,.o4 1st Hanuary to :.th Hune of the "ollowin &ear 1st ;ctober to :1st March 1st Huly to :1st ?ecember

1!. What .2 a Loca1 Off.ce; A networ* of 2ocal ;ffices has been established by the ,orporation in all implemented areas to disburse all claims for sic*ness, maternity, disablement and dependentsI benefit! 1he 2ocal ;ffice also answers all doubts and en'uiries and assists otherwise in fillin in claim forms and completin other action necessary in connection with the settlement of claims! 1hese offices also interact with the employers of the area! 1he 2ocal ;ffices are mana ed by a Mana er and wor* under the direction and control of the )e ional ;ffices! 1". What 4oe2 BS.c?*e22 Be*ef.tC mea*; 3ic*ness si nifies a state of health necessitatin medical treatment and attendance and abstention from wor* on medical rounds! "inancial support e0tended by the ,orporation is such a contin ency is called 3ic*ness <enefit! 1#. What a,e the Co*t,.6-to,) Co*4.t.o*2; 1he contribution condition re'uired to be fulfilled for admissibility of sic*ness benefit durin any benefit period is that contributions should have been paid in respect of an insured person in the correspondin contribution period for not less than 49 days! 1$. :o< m-ch .2 the Sta*4a,4 Be*ef.t Rate;

29

1he daily rate of 3ic*ness <enefit durin any benefit period is the Ostandard benefit rateP this rate corresponds to the avera e daily wa e of an insured person durin the correspondin contribution period and is rou hly half of the daily wa e rate! <enefit is paid for 3undays also! 29 wa e roups have been evolved for wor*in out the daily rate of 3tandard 3ic*ness <enefit! 3tandard <enefit rates for 29 wa e roups are shown in Anne0ure MAI! 1%. What .2 the 4-,at.o* of S.c?*e22 Be*ef.t; 3ic*ness benefit is payable for a ma0imum period of 91 days in any two consecutive benefit periods! <enefit is not paid for an initial waitin period of 2 days unless the insured person is certified sic* within 15 days of the last spell in which 3ic*ness <enefit was paid!

1&. What .2 E7te*4e4 S.c?*e22 Be*ef.t; +0tended 3ic*ness <enefit is a ,ash <enefit paid for prolon ed illness due to any of the :specified diseases as mentioned below! ?iseases 1! 1uberculosis 2! 2eprosy :! ,hronic +mphysema -! <ronchiectasis 5! $nterstitial 2un disease 6! A$?3 4! Mali nant ?iseases 9! ?iabetes Mellitus7with proliferate retinopathy%diabetic foot% nephropathy! 9! Monople ia 1.! (emiple ia 11! Paraple ia 12! (emiparesis 1:! $ntracranial space occupyin lesion 1-! 3pinal ,ord ,ompression 15! Par*insonIs disease 16! Myasthenia Gravis%#euromuscular ?ystrophies 14! $mmature ,ataract with vision 6%6. or less 19! ?etachment of )etina 19! Glaucoma 2.! ,oronary Artery ?iseases 21! ,on estive (eart "ailure72eft, )i ht 22! ,ardiac valvular ?iseases with failure%complications 2:! ,ardiomyopathies 2-! (eat disease with sur ical intervention alon with complications 25! ,hronic ;bstructive 2on diseases =,;P?> with con estive heart failure =,or Pulmonale> 26! ,irrhosis of liver with ascitis%chronic active hepatitis =O,A(P> 24! ?islocation of vertebra%prolapse of intervertebral disc 29! #on union or delayed union of fracture 29! Post 1raumatic sur ical amputation of lower e0tremity :.! ,ompound fracture with chronic osteomyelitis :1! =a> 3chi@ophrenia =b>+ndo enous depression =c>Maniac ?epressive Psychosis =M?P> =d>?ementia :2!More than 2.D <urns with infection%complication ::!,hronic )enal "ailure :-!)eynaudIs disease%<ur erIs disease! $n addition, e0tended sic*ness benefit may also be sanctioned by the prescribed authority, in case of any rare disease or special circumstances on the recommendation of the specified authority!

30

1'. What a,e the Co*t,.6-to,) Co*4.t.o*2; +0cept in case of disability from administration of dru s%in5ections, the insured person should have been in continuous employment for a period of 2 years and should have contributed for at least 156 days in - precedin contribution periods! (. :o< m-ch .2 the Be*ef.t ,ate; 1he daily rate of +0tended 3ic*ness <enefit is -.D more than the 3tandard 3ic*ness <enefit rate admissible! 1. :o< 1o*g .2 the Be*ef.t a3a.1a61e; After e0haustin 3ic*ness <enefit payable for 91 days the +3< is payable upto a further period of 12-%:.9 days that can be e0tended upto 2 years in special circumstances! 1hus, to ether with the 3ic*ness <enefit for 91 days, it puts a claimant on benefit for an a re ate period -.. days for all specified diseases and 2 years in chronic suitable cases on recommendation of competent authority! . What .2 E*ha*ce4 S.c?*e22 Be*ef.t; +nhanced 3ic*ness <enefit is cash benefit for the insured persons under oin sterili@ation operation of vasectomy%tubectomy for family plannin ! a.What a,e the co*t,.6-to,) co*4.t.o*2; 1he contributory conditions are the same as for claimin sic*ness benefit! b.:o< m-ch .2 the 6e*ef.t ,ate; 1he daily rate of this benefit is double the standard benefit rate! 3ay, not less than the daily wa e! c.:o< Lo*g .2 the 6e*ef.t a3a.1a61e; 1he benefit is available upto 4 days for vasectomy and upto 1- days for tubectomy operations! 1his period can however be e0tended in cases of postoperative complications or sic*ness arisin out of these sterili@ation operations! $ts duration is not counted towards the total number of 91 days for which the sic*ness benefit is available durin any two consecutive benefit periods! 4. :o< to c1a.m S.c?*e22 Be*ef.t; A claim for 3ic*ness <enefit should be supported by a Medical ,ertificate issued by an $nsurance Medical ;fficer%$nsurance Medical Practitioner in the appropriate "orm! Medical ,ertificates are issued at intervals of not more than seven days, e0cept in cases of prolon ed sic*ness, where 3pecial $ntermediate ,ertificates may be issued at lon er intervals not e0ceedin - wee*s! ;n the bac* of each certificate, e0cept the 3pecial $ntermediate ,ertificate, a ,laim "orm is printed! 1he ,laim "orm is essentially a declaration in re ard to abstention of the claimant from wor* durin the period of claim! 3eparate ,laim "orms are also available! 1he ,laim "orm should bear si natures%thumb impression of the claimant and should be submitted to the 2ocal ;ffice personally, by post, throu h a messen er or by deposit in certificate bo0es, wherever provided! All claims should preferably to submitted to the 2ocal ;ffice within three days! 1he )eceptionist at the 2ocal ;ffice renders all assistance in fillin in the claim on your behalf! !. What .2 BD.2a61eme*tC; ?isablement is a condition resultin from employment in5ury, which may be: T

31

=a>1emporary i!e! renderin an insured person incapable of wor* temporarily and necessitatin medical treatmentF =b> Permanent partial i!e! reducin the earnin capacity of the insured person enerally for every employmentF =c> Permanent total i!e! totally deprivin the insured person of the power to do all wor*! ". What co*2t.t-te2 a* LEm01o)me*t I*A-,);M +mployment in5ury means a personal in5ury caused to an employee by an accident or occupational disease arisin out of and in course of his employment in a factory or establishment covered under the +mployeesI 3tate $nsurance Act! 1he law relatin to +mployment in5ury has been liberali@ed! #ow, an accident arisin in the course of employment is presumed also to have arisen out of his employment if there is no evidence to the contrary! "urther, an accident brou ht about by willful disobedience, ne li ence or breach of re ulations etc! or an accident happenin while travelin in a transport provided by the employer or while meetin an emer ency is accepted sub5ect to certain conditions, to have arisen in the course of and out of employment! $n5uries suffered while under the influence of drin*s and dru s ta*e away the ri ht of the employee to this benefit! )oadside accident caused while commutin between place of residence and wor*place is also treated as notional e0tension of employment for purpose of death or disablement benefit! #. What a,e BOcc-0at.o*a1 D.2ea2e2C; ;ccupational ?iseases are such diseases as are susceptible of bein traced bac* to their occupational ori in! 1hese are specified under 3chedule $$$ of the +mployeesI 3tate $nsurance Act, which enumerates the compensable ;ccupational ?iseases and the correspondin industrial processes involvin e0posure to the diseases are thus reco ni@ed without any further evidence!

$. What a,e the Be*ef.t2 g,a*te4; 1emporary ?isablement <enefit is paid periodically in arrears as the evidence of incapacity =medical certificate> is produced! Permanent total disablement and permanent partial disablement benefits are paid in the form of pensions! ,urrent employment for wa es or en a ement in any ainful activities is no bar to payment of permanent disablement benefits! An insured person sufferin from an occupationed disease is also entitled to full medical care! %. :o< m-ch .2 the Be*ef.t Rate; 1he daily benefit rate for permanent total disablement and temporary disablement is -.D more than the 3tandard 3ic*ness <enefit rate and is rou hly e'uivalent to about 4.D of the wa e rate! "or permanent partial disablement, the rate of benefit is proportionate to the percenta e of loss of earnin capacity! 1he benefit is paid for 3undays also! &. What a,e the Co*t,.6-to,) Co*4.t.o*2; 1here are no 'ualifyin conditions as to the len th of employment or the number of contributions paid! Protection accrues from the very moment of entry into insurable employment! '. What .2 the 4-,at.o* of Be*ef.t;

32

1emporary ?isablement <enefit is paid as lon as disablement lasts! 1here is a waitin period of : days =e0cludin the day of accident>, but if incapacity e0ceeds this period, benefit is paid from the very first day! 1he permanent disablement benefit is paid for the life7time of the beneficiary! !(. :o< .2 Pe,ma*e*t D.2a61eme*t a22e22e4; 1here is indeed no way of ade'uately compensatin a permanently disabled employee and yet some method of determinin whether an employment in5ury has resulted in permanent disablement and of assessin the e0tent of permanent dama e caused by that employment in5ury has to be adopted for the purpose of determinin the scale of compensation for the loss of earnin s! 1his is done by evaluatin loss of earnin capacity with reference to eneral disability for all wor*! 1he evaluation is done by a Medical <oard whose decision can be appealed a ainst to a Medical Appeal 1ribunal presided over by a 5udicial officer, with a further ri ht of appeal to +mployeesI $nsurance ,ourt or directly to +mployeesI $nsurance ,ourt! Pendin an appeal, payment for permanent loss of earnin capacity as recommended by the Medical <oard is made, sub5ect to ad5ustment later! 2oss of wa es and e0penditure on conveyance occasioned by attendance before the Medical <oard are compensated by the ,orporation in accordance with rates framed for the purpose! Ahere the assessment of loss of earnin capacity by the Medical <oard is not of a final character, the beneficiary is re'uired to appear a ain before the Medical <oard for a review of the assessment! !1. Ca* the 4ec.2.o*2 of 5e4.ca1 Boa,4 o, of 5e4.ca1 A00ea1 T,.6-*a1 6e ,e3.e<e4; &es! $f the Medial <oard or the Medical Appeal 1ribunal is satisfied by fresh evidence that a decision was iven because of non7disclosure or misrepresentation of a material fact, it can review its earlier decision at any time! A Medical <oard can also review its earlier assessment of e0tent of disablement, if it is satisfied that there has been substantial and unforeseen a ravation of the results of the relevant in5ury and substantial in5ustice would be done by not reviewin it! 3uch review, however, cannot be made earlier than 5 years or in the case of the provisional assessment, earlier than 6 months of the date of assessment to be reviewed!

! . I2 1-m0 2-m Be*ef.t a11o<e4 .* 01ace of Pe*2.o*; &es! At the option of the beneficiary, permanent disablement pension, where the daily rate payable is not si nificant, can be commuted for a lump sum payment sub5ect to the fulfillment of the followin two conditions: T =i> 1hat the permanent disablement has been assessed as final, and =ii> 1he daily rate of permanent disablement does not e0ceed )s 5%7 and the total commuted value does not e0ceed )s :.,...%7 =effective from AprilT.:>! !!. :o< to c1a.m BD.2a61eme*t Be*ef.tC; Fa@ Tem0o,a,) D.2a61eme*tG =i> #otice of the in5ury should be iven either orally or in writin personally or throu h an a ent, to the employer%foreman%duty supervisor or particulars of the in5ury should be entered in

33

the Accident <oo* *ept in the factory, personally or throu h an a ent! =ii> A medical certificate of incapacity should be obtained from the $nsurance Medical ;fficer%$nsurance Medical Practitioner! =iii> 1he claim form printed on the bac* of the medical certificate should be filled in and submitted promptly to 2ocal ;ffice alon with the medical certificate! =iv> A final certificate should be obtained from the $nsurance Medical ;fficer%$nsurance Medical Practitioner and submitted to the 2ocal ;ffice before resumption of duty! F6@ Pe,ma*e*t D.2a61eme*tG =i> $f sufferin from permanent effects of employment in5ury, the insured person should ma*e an application to the )e ional ;ffice of the ,orporation for reference of his case to the Medical <oard =reference to the Medical <oard is made otherwise also by the )e ional ;ffice>! =ii> Ahere loss of earnin capacity has been assessed and communicated to the insured person, he should submit a claim in the appropriate form to the 2ocal ;ffice! =iii> After the claim has been admitted, the beneficiary should submit at si07monthly intervals =with the claim for Hune and ?ecember every year> a life certificate in appropriate form duly attested by the prescribed authority! !". I2 the,e a*) 0,o3.2.o* fo, 0h)2.ca1 ,eha6.1.tat.o*; &es! $nsured Persons who suffer physical disablement due to employment in5ury are provided artificial appliances or other physical aids such as wheel chairs, crutches, dentures and spectacles etc! !#. What a6o-t 3ocat.o*a1 ,eha6.1.tat.o*; 1he ,orporation at its cost arran es for the vocational rehabilitation of disabled insured persons provided the disability has been assessed at above -. percent and the beneficiary is not over -5 years of a e! 1he trainin is provided at vocational rehabilitation centers run by the Govt! of $ndia etc! 1he fee, travellin e0penses etc are borne by the ,orporation! !$. What .2 BDe0e*4e*t2C Be*ef.tC; ?ependents <enefit is a monthly pension payable to the eli ible dependents of an insured person who dies as a result of an +mployment $n5ury or occupational disease!

!%. Who a,e the Be*ef.c.a,.e2 a*4 ho< 1o*g .2 the Be*ef.t a3a.1a61e; ?ependants entitled to the benefit could be: T =a> Aidow%Aidows durin life or until remarria e: =b> 2e itimate or adopted son until a e 19 or if le itimate son is infirm, till infirmity lastsF =c> 2e itimate or adopted unmarried dau hter until a e 19 or until marria e, whichever is earlier, or if infirm, till infirmity lasts and she continues to be unmarried!

34

$n the absence of any widow or le itimate child, the benefit is payable to a parent or randparent for life, to any other male dependant until a e 19 or to an unmarried or widowed female dependant until a e 19! !&. :o< m-ch .2 the Be*ef.t fo, each Be*ef.c.a,); 1he total divisible benefit is e'uivalent to the temporary disablement benefit rate =rou hly 4.D of the wa e rate>! 1he widow%widows share :%5th of the benefit and the le itimate or adopted son and dau hter 2%5th each of the benefit! $f the total benefit so divided e0ceeds the full rate, there is a proportionate reduction in the respective shares of the beneficiaries! !'. :o< to c1a.m BDe0e*4a*t2C Be*ef.tC; 1o establish title to ?ependantI <enefit, the followin documents should be submitted at the 2ocal ;ffice:T =a> ,laim in the appropriate formF =b> +vidence of death bein due to employment in5uryF =c> Proof of relationship to the deceased supportin eli ibility of the claimant as a OdependantPF =d> +vidence of a e of the claimant=s> =certified copy of official record of birth, <aptismal re ister, school records, ori inal horoscope etcF =e> ,ertificate of infirmity from Medical )eferee or any other prescribed authority in case of le itimate infirm son or le itimate or adopted unmarried infirm dau hter! After the claim to ?ependantIs <enefit has been admitted, the beneficiary should submit at si07monthly intervals =with the claim for Hune and ?ecember>, a declaration that he%she is alive and has not married%remarried attained the prescribed a e%continues to be infirm, as the case may be duly attested by the prescribed authority! "(. Ca* De0e*4a*tC2 Be*ef.t 6e ,e3.e<e4; &es! ?ependantIs <enefit once awarded can be reviewed by the ,orporation at any time if it is satisfied on fresh evidence that the earlier decision was due to non7disclosure or misrepresentation of material facts! $t can also be reviewed on birth, death, marria e, re7 marria e and attainment of a e 19, by a claimant! 1he benefit can be continued, increased, reduced or discontinued! "1. What .2 5ate,*.t) Be*ef.t; Maternity <enefit is cash payable to an insured woman for the specified period of abstention from wor* for confinement or miscarria e or for sic*ness arisin out of pre nancy, confinement, premature birth of child or miscarria e! O,onfinementP connotes labour resultin in the delivery of a livin child or labour after 26 wee*s of pre nancy whether the resultant issue is alive or dead! OMiscarria eP means e0pulsion of the contents of a pre nant uterus at any period prior to or durin 26th wee* of pre nancy! ,riminal abortion or miscarria e does not, however, entitle to benefit! " . What a,e the Co*t,.6-to,) Co*4.t.o*2; 1he contribution condition is the same as for 3ic*ness <enefit!

"!. :o< m-ch .2 the Be*ef.t; 1he daily benefit rate is double the 3ic*ness <enefit rate and is thus rou hly e'uivalent to the full wa es! <enefit is paid for 3undays also!

35

"". What .2 the 4-,at.o* of the Be*ef.t; 1he <enefit is paid as follows: T =a> "or confinement: T "or a total period or 12 wee*s be innin not more than 6 wee*s before the e0pected date of child birth! $f the insured woman dies durin confinement or within 6 wee*s thereafter, leavin behind the livin child, the benefit continues to be payable for the whole of the period! <ut if the child also dead durin that period, the benefit will be paid upto and includin the day of death of the child! =b> "or Miscarria e: T "or a period of 6 wee*s followin the date of miscarria e! =c> "or 3ic*ness arisin out of pre nancy, confinement, and premature birth of child or miscarria e:T "or an additional period of upto four wee*! $n all the cases, the benefit is paid only if the insured woman does not wor* for remuneration durin the period for which benefit is claimed! 1here is no waitin period! "#. :o< to c1a.m 5ate,*.t) Be*ef.t; Ahere an insured woman wishes to claim Maternity <enefit after confinement or for miscarria e, she should obtain from the $nsurance Medical ;fficer%$nsurance Medical Practitioner, a certificate of confinement or miscarria e and submit it to her 2ocal ;ffice personally or by post alon with a claim for Maternity <enefit! 1he claim form also contains a declaration of abstention from wor*! $f <enefit is desired before confinement, a #otice and ,ertificate of Pre nancy and a ,ertificate of +0pected ,onfinement obtained from the $nsurance medical ;fficer%$nsurance Medical Practitioner are also re'uired to be submitted! "or claimin <enefit in the event of death of an insured woman leavin behind a child, her nominee and if there is no such nominee, her le al representative should submit personally or by post to the 2ocal ;ffice of the deceased insured woman, a claim for the <enefit to ether with a certificate of death of the insured woman! An insured woman claimin Maternity <enefit for 3ic*ness arisin out of pre nancy, confinement, premature birth of child or miscarria e should submit her claim in the manner as for sic*ness benefit! Ahere a claim to Maternity <enefit is not submitted alon with prescribed certificates referred to above, the ,orporation has the discretion to accept other evidence in lieu thereof! "$. What .2 5e4.ca1 Bo*-2; Medical <onus is lump sum payment made to an insured woman or the wife of an insured person in case she does not avail medical facility from an +3$ hospital at the time of delivery of a child! 1his bonus of )s! 25.%7 has been increased to )s! 1...%7 from 1st April 2..:! "%. What .2 5e4.ca1 Be*ef.t; Medical <enefit means medical care of insured persons and their families, wherever covered for medical benefit! "&. What 4oe2 5e4.ca1 Be*ef.t co*2.2t of; 1he standard medical care consists of out7door treatment, in7patient treatment, all necessary dru s and dressin s, patholo ical and radiolo ical specialist consultation and care, ante7natal and post natal care, emer ency treatment etc!

36

"'. Whe,e a,e Bo-t90at.e*tC 2e,3.ce2 0,o3.4e4; ;ut7door medical care is provided at 3tate $nsurance ?ispensaries or Mobile ?ispensaries manned by full7time doctors =M3erviceI system> or at the private clinics of $nsurance Medical Practitioners =MPanelP system>! 1he scope of medical services also includes simple antenatal and post7natal care for women, family welfare plannin services and immuni@ation a ainst the common infectious diseases! 1he 3cheme provides at the sole cost of the ,orporation, artificial limbs to insured persons who lose their limbs due to employment in5ury or in certain circumstances otherwise also, dentures, spectacles and hearin aids where the loss of teeth, impairment of eyesi ht or hearin respectively is due to employment in5ury! #(. :o< a*4 <he,e a,e B.* 8 0at.e*tC Se,3.ce2 P,o3.4e4; +3$, has a networ* of 1-1 hospitals countrywide! Ma5ority of these hospitals are administered by the 3tate Govts! $n T patient and dia nostic services in basic specialties are available at these hospitals! 3tate schemes have also tie7up arran ements with a number of Medical colle es, ma5or state hospitals, as well as, private hospitals for advanced treatment for mali nant diseases and complicated sur ical interventions! #1. What a6o-t P,e3e*t.3e hea1th ca,e 2e,3.ce2; +3$ 3cheme provides preventive health care services throu h the networ* of its dispensaries and hospitals! 1hese include immuni@ation a ainst some *iller diseases, pulse polio vaccination and family welfare services etc! 1he scheme also participates in all ma5or national preventive health service campai ns! # . :o< 1o*g .2 5e4.ca1 Be*ef.t a3a.1a61e; $nsured wor*er and the members of his family are eli ible for medical care from the very first day of the wor*er comin under +3$ 3cheme! 1he medical care includes primary medical care, dia nostic services, specialist consultations and indoor medical care! Ahenever the patient is not able to travel by himself%herself, ambulance services are also provided! 1he $!P! or his family members are not re'uired to pay for any of the services! A wor*er who is covered under the 3cheme for the first time is eli ible for medical care for a period of three months! $f he%she continues in insurable employment for three months or more the medical care is available to him%her till the start of the first benefit period! $f he%she contributes at least for 49 days in a contribution period the eli ibility is there upto the end of the correspondin benefit period! A wor*er is also eli ible for e0tended sic*ness benefit when he%she is sufferin from any one of the lon 7term :- diseases listed in the Act! 1his is admissible after the wor*er has been under +3$ covera e for at least 2 years durin which he%she should have contributed at least for 156 days! Ahen these conditions are satisfied medical benefit is admissible for a ma0imum period of 4:. days for the $!P! and his%her family! #!. What a,e F-*e,a1 e70e*2e2; 1his component consists of a lump sum payment towards the e0penditure on the funeral of the deceased insured person! #". What .2 the amo-*t 0a)a61e; 1he lump sum amount of this benefit is e'ual to the actual e0penditure, not e0ceedin )s! :...%7 towards the funeral of the deceased insured person! ##. A,e the,e a*) Co*t,.6-t.o* Co*4.t.o*2; #o contribution condition is re'uired for this <enefit! 1he only condition for admissibility of this <enefit is that the deceased person should have been an insured person at the time of his death! 1he "uneral e0penses are thus payable in respect of an insured person in receipt of Permanent ?isablement <enefit even if he may not be employed at the time of his death in a factory or establishment covered under the +3$ Act! #$. To <hom a,e the F-*e,a1 e70e*2e2 0a)a61e;

37

1he e0penses are payable to the eldest survivin member of the family of the deceased insured person! $f the insured person did not have a family or if he was not livin with his family at the time of his death, the benefit is payable to the person who actually incurs the e0penditure on the funeral of the deceased insured person! #%. :o< to c1a.m the F-*e,a1 e70e*2e2; 1o claim the e0penses, the claimant should submit his%her claim personally or by post to the 2ocal ;ffice of the deceased insured person within three months, to ether with the followin documents:T =a> ?eath certificate as proof of death of the insured person issued by the $nsurance Medical ;fficer%$nsurance Medical Practitioner or such other Medical ;fficer of a hospital or other institution who attended the insured person at the time of death or e0amined the body after the deathF =?eath certificate issued by cremation%burial round or by Municipal authorities or certified copy of villa e etc! death records may also be accepted as evidence of death>F =b> A declaration of the claimant, either =i> 1hat he is the eldest survivin member of the family of the deceased insured person and incurred e0penditure on the funeral of the deceased! or =ii> $n case the claimant is other than the eldest survivin member of the family, that the deceased insured person did not have a family or was not livin with his family at the time of his death and that the claimant actually incurred e0penditure on the funeral of the deceased insured person! 1he declaration should be countersi ned by a competent authority! #&. D.2D-a1.f.cat.o* fo, 6e*ef.t2 .* ce,ta.* ca2e2G A person who wor*s and receives wa es on any day is not entitled to sic*ness benefit or maternity benefit or temporary disablement benefit in respect of that day! A recipient of sic*ness benefit or temporary disablement benefit must remain under medical treatment and obey the instruction iven by his $nsurance Medical ;fficer! (e should not leave the area of treatment without the permission of his medical officer and should present himself for e0amination by the medical officer or any other person authori@ed by the ,orporation! #'. Safeg-a,4.*g the ,.ght to Be*ef.tG ,ash benefits payable under the +mployeesI 3tate $nsurance Act are not liable to attachment or sale in e0ecution of any court decree or order! Also, the ri ht to receive any benefit is not transferable or assi nable! $(. P,otect.o* f,om D.2m.22a1/ 4.2cha,ge o, othe, P-*.2hme*t2G An employee is protected a ainst dismissal, dischar e, or other punishments durin the followin periods: T =1> A period of 6 months in case of a recipient of disablement benefitF =2> A period of 6 months in case an employee is under medical treatment for sic*ness or certified illness due to pre nancy or confinementF =:> A period of 12 months in case an employee is under medical treatment for 1!<! 2eprosy, Mental, Mali nant or any of the :- specified diseases! $1. Rem.tta*ce of Ca2h Be*ef.t at the co2t of the Co,0o,at.o*G

38

At the option of the beneficiary, cash benefits under the +mployeesI 3tate $nsurance Act are remitted by Money ;rders at the cost of the ,orporation, irrespective of the amount involved! $ . A4A-4.cat.o* 5ach.*e,)G 1o ma*e the ri ht of claimants effective, every claimant has a ri ht of raisin a dispute in the +mployeesI $nsurance ,ourt! $t consists of a 5udicial officer appointed by the 3tate Government! 1he 5urisdiction of a ,ivil ,ourt is barred in all such cases! $!. Re0a)me*t a*4 ,eco3e,) of Be*ef.t 0a)me*t2G $f a person receives any benefit to which he is not le ally entitled, he is liable to repay the value of any such benefit to the ,orporation! $#. P-*.2hme*t fo, fa12e 2tateme*t etc.G Any false statement or false representation made or caused to be made for the purpose of obtainin benefit wron fully etc! constitutes an offence under the +mployeesI 3tate $nsurance Act, punishable with imprisonment upto three months or with fine upto five hundred rupees or both! $$. T,eatme*t at o-t2tat.o* $n case an insured wor*er leaves his station on duty or otherwise he%she is eli ible for treatment at any +3$ medical unit, sub5ect to production of identity card and a certificate from +mployer in "orm 1.5!

FOR BETTER AND QUICKER SERIICES

Please )emember $dentity ,ard is your visa to social securityF protect it from loss or dama e! $n case of loss of $dentity ,ard, report the matter to your 2ocal ;ffice%?ispensary! "ill in all ,laim "orms properlyF avoid mista*es! ,ount your money before leavin 2ocal ;ffice cash counter! Apply for e0amination by Medical <oard immediately after your 1?< terminates! "ollow referral procedures for treatment e0cept in emer encies, when time factor is critical! $f you have a rievance, contact 2ocal ;ffice Mana er%?ispensary in char e to which you are attached for 'uic* redressal! <e courteous with +3$ staff and e0pect courtesy and compassion from them always!

Bac? to Co*te*t2 Page

39

INDUSTRIAL DISPUTE ACT/ 1'"%

1. What a,e I*4-2t,.a1 D.20-te2; $ndustrial ?ispute means any dispute or differences between employers and employers or between employers and wor*men or between wor*men and wor*men, which is connected with the employment or non7employment or the terms of employment or with the conditions of labour of any person! . What a,e the 4.ffe,e*t catego,.e2 of I*4-2t,.a1 D.20-te2; 1he 3econd 3chedule of the $!?! Act deals with matters within the 5urisdiction of 2abour ,ourts, which fall under the cate ory of R.ght2 D.20-te2! 3uch disputes are as follows: 1! 1he propriety or le ality of an order passed by an employer under the standin ordersF 2! 1he application and interpretation of standin orders, which re ulate conditions of employment! :! ?ischar e or dismissal of wor*men includin reinstatement of, or rant of relief to, wor*men wron fully dismissedF -! Aithdrawal of any customary concession or privile eF 5! $lle ality or otherwise of a stri*e or loc*7outF and 6! All matters other than those specified in the 1hird 3chedule! 1he 1hird 3chedule of the $!?! Act deals with matters within the 5urisdiction of $ndustrial 1ribunals which could be classified as I*te,e2t D.20-te2! 1hese are as follows: 7 1! Aa es, includin the period and mode of paymentF 2! ,ompensatory and other allowancesF :! (ours of wor* and rest intervalsF -! 2eave with wa es and holidaysF 5! <onus, profit sharin , provident fund and ratuityF 6! 3hift wor*in otherwise than in accordance with standin ordersF 4! ,lassification by radesF 9! )ules of disciplineF 9! )ationali@ationF 1.! )etrenchment of wor*men and closure of establishmentF and

40

11! Any other matter that may be prescribed! !. Who ca* ,a.2e a* I*4-2t,.a1 D.20-te; Any person who is a wor*man employed in an industry can raise an industrial dispute! A wor*man includes any person =includin an apprentice> employed in an industry to do manual, uns*illed, s*illed, technical, operational, clerical or supervisory wor* for hire or reward! $t e0cludes those employed in the Army, #avy, Air "orce and in the police service, in mana erial or administrative capacity! $ndustry means any business, trade, underta*in , manufacture or callin of employers and includes any callin , service, employment, handicraft, or industrial occupation or avocation of wor*men! ". :o< to ,a.2e a* I*4-2t,.a1 D.20-te; A wor*man can raise a dispute directly before a ,onciliation ;fficer in the case of dischar e, dismissal, retrenchment or any form of termination of service! $n all other cases listed at 2 above, the dispute has to be raised by a Enion % Mana ement! #. Who a,e Co*c.1.at.o* Off.ce,2 a*4 <hat 4o the) 4o; 1he ;r ani@ation of the ,hief 2abour ,ommissioner =,entral> acts as the primary conciliatory a ency in the ,entral Government for industrial disputes! 1here are the )e ional 2abour ,ommissioners =,entral> and Assistant 2abour ,ommissioners =,entral> who on behalf of the ,hief 2abour ,ommissioner =,entral> act as ,onciliatory ;fficers in different parts of the country! 1he ,onciliation ;fficer ma*es efforts to resolve the dispute throu h settlement between the wor*men and the mana ement! 1he duties of ,onciliation ;fficers have been laid down under Sect.o* 1 of the $ndustrial ?isputes Act! $. What ha00e*2 .f co*c.1.at.o* fa.12; $n case of failure of conciliation =";,> a report is sent to Government =$) ?es*s in Ministry of 2abour>! 1he Ministry of 2abour after considerin the ";, )eport e0ercises the powers available to it under 3ection 1. of the $ndustrial ?isputes Act and either refers the dispute for ad5udication or refuses to do so! ?etails of functions of $) ?es*s and reasons for declinin may be seen above! 1here are at present 14 ,entral Government $ndustrial 1ribunals7cum72abour ,ourts in different parts of the country to whom industrial disputes could be referred for ad5udication! 1hese ,G$1s 7cum72abour ,ourts are at #ew ?elhi, Mumbai =2 ,G$1s>, <an alore, Qol*ata, Asansol, ?hanbad =2 ,G$1s>, Habalpur, ,handi arh, Qanpur, Haipur, 2uc*now, #a pur, (yderabad, ,hennai and <hubaneshwar! ;ut of these ,G$1s, 2 ,G$1s namely Mumbai7$ and Qol*ata have been declared as #ational $ndustrial 1ribunals! %. What ha00e*2 <he* the 4.20-te .2 ,efe,,e4 to La6o-, Co-,t; After the matter is referred to any of the ,G$17cum72abour ,ourt, the ad5udication process be ins! At the end of the proceedin s an Award is iven by the Presidin ;fficer! 1he Ministry of 2abour under 3ection 14 of the $!?! Act publishes the Award in the ;fficial Ga@ette within a period of :. days from the date of receipt of the Award! &. :o< .2 the A<a,4 .m01eme*te4; An Award becomes enforceable on the e0piry of :. days from the date of its publication in the ;fficial Ga@ette! 1he )e ional 2abour ,ommissioner is the implementin authority of the Awards! '. What a,e the 0,o3.2.o*2 fo, +e*e,a1 P,oh.6.t.o* of St,.?e2 a*4 Loc?o-t2; #o wor*man who is employed in any industrial establishment shall o on stri*e in breach of contract and no employer of any such wor*man shall declare a loc*out: =a> ?urin the pendency of conciliation proceedin s before a <oard and seven days after the conclusion of such proceedin s,

41

=b> ?urin the pendency of such proceedin s before a 2abour ,ourt, 1ribunal or #ational 1ribunal and 2 months after the conclusion of such proceedin s! =c> ?urin the pendency of arbitration proceedin s before an Arbitrator and 2 months after the conclusion of such proceedin s, where a notification has been issued! =d> ?urin any period in which a settlement or Award is in operation in respect of any of the matters covered by the settlement of Award! 1(. Doe2 the <o,?ma* ha3e the R.ght to go o* 2t,.?e <.th 0,o0e, *ot.ce .* P-61.c Ut.1.t) Se,3.ce2; #o person employed in a Public Etility 3ervice can o on stri*e without ivin to the employer notice of stri*eF =a> Aithin 6 wee*s before stri*in ! =b> Aithin 1- days of ivin such notice! =c> <efore the e0piry of the date of stri*e specified in such notice! =d> ?urin the pendency of any conciliation proceedin s before a ,onciliation ;fficer and 4 days after the conclusion of such proceedin s! 11. Doe2 the Em01o)e, ha3e the ,.ght to 1oc? o-t a*) P-61.c Ut.1.t) Se,3.ce; #o employer carryin on any Public Etility service can loc*out any of his wor*man: =i> Aithout ivin to them notice of loc*out provided within 6 wee*s before loc*in out! =ii> Aithin 1- days of ivin such notice! =iii> <efore e0piry of the date of loc*out specified in any such notice! =iv> ?urin the pendency of any conciliation proceedin s before a ,onciliation ;fficer and 4 days after the conclusion of such proceedin s! 1 . What com0e*2at.o* <.11 a <o,?ma* get <he* 1a.4 off; Ahenever a wor*man =other than a badli wor*man or a casual wor*man> whose name is borne on the muster rolls of an industrial establishment employin 5. or more wor*men on an avera e wor*in day and who has completed not less than one year of continuous service under an employer laid off, whether continuously or intermittently, he is to be paid by the employer for all days durin which he is so laid off, e0cept for such wee*ly holidays as may intervene, compensation which shall be e'ual to fifty per cent of the total of the basic wa es and dearness allowance that would have been payable to him had he not been so laid7off! 1!. What a,e the co*4.t.o*2 0,ece4e*t to ,et,e*chme*t of <o,?me*; #o wor*men employed in any industry who has been in continuous service for not less than one year under an employer can be retrenched by that employer until: =a> 1he wor*man has to be iven one monthIs notice in writin indicatin the reasons for retrenchment or the wor*man has to be paid in lieu of such notice, wa es for the period of the notice! =b> 1he wor*man has to be paid, at the time of retrenchment, compensation which is e'uivalent to fifteen daysI avera e pay =for every completed year of continuous service> or any part thereof in e0cess of si0 monthsF and =c> #otice in the prescribed manner is to be served on the appropriate Government =or such authority as may be specified by the appropriate Government by notification in the ;fficial Ga@ette>! 1". What com0e*2at.o* <.11 the <o,?ma* get <he* a* -*4e,ta?.*g c1o2e2 4o<*; Ahere an underta*in is closed down for any reason whatsoever, every wor*man who has been in continuous service for not less than one year in that underta*in immediately before

42

such closure is entitled to notice and compensation in accordance with the provisions as if the wor*man had been retrenched! P,o3.4e4 that <he,e the -*4e,ta?.*g .2 c1o2e4 4o<* o* acco-*t of -*a3o.4a61e c.,c-m2ta*ce2 6e)o*4 the co*t,o1 of the em01o)e,/ the com0e*2at.o* to 6e 0a.4 to the <o,?ma* .2 *ot to e7cee4 h.2 a3e,age 0a) fo, th,ee mo*th2.

T:E 5INI5U5 WA+ES ACT/ 1'"&

1. What .2 the o6Aect of the 5.*.m-m Wage2 Act/ 1'"&; 1he ob5ect of the Act is to provide for fi0in and revisin minimum wa es in certain employments in order to stop sweated labour and prevent the e0ploitation of unor ani@ed labour! . Wh.ch em01o)me*t2 a,e .*te*4e4 to 6e 6e*ef.te4 6) f.7at.o* of m.*.m-m ,ate2 of <age2; 1he Government is re'uired to fi0 minimum rates of wa es payable to employees employed in the employments specified in Part $ or Part $$ of the 3chedule appended to the Act! U3ection :V !! I2 the 1.2t of em01o)me*t2 20ec.f.e4 .* the Sche4-1e to the Act e7ha-2t.3e; : 1he list is not an e0haustive one! 1he appropriate Government can add any employment to either part of the 3chedule! U3ection 24V ". I2 .t com0ete*t fo, a go3e,*me*t to 6,.*g a teache, <.th.* the 0-,3.e< of the Act 6) ame*4.*g the Sche4-1e to the Act; A teacher would not come within the definition of LemployeeL iven under 3ection 2=i> of the Act! $t is beyond the competence of a Government to brin the teachers of an educational institution under the purview of the Act! #. I2 the Act a001.ca61e to 4a.1) ,ate4 em01o)ee2; 1he Act is e0pected to fi0 the minimum wa es in respect of employees whether they are casual, daily rated, temporary or permanent! 1he Act is applicable to daily rates employees also! $. What .2 the 0,oce4-,e the +o3e,*me*t ha2 to fo11o< fo, f.7.*g a*4 ,e3.2.*g m.*.m-m <age2;: 1he Government has to fi0 and revise minimum wa es either7 a! <y appointin one or more committees and sub7committees consistin of representatives of employers and employees and also of independent persons to hold necessary en'uiries and by ta*in into consideration the advice tendered by the committee or committeesF or

43

b! <y formulatin and publishin its proposals and ta*in into consideration the representations received in response to the proposals! U3ection 5V %. I2 the ta2? of the +o3e,*me*t o3e, o*ce .t f.7e2 m.*.m-m ,ate2 of <age2 0a)a61e to em01o)ee2 em01o)e4 .* a 2che4-1e4 em01o)me*t; 1he tas* of the Government is not over once it fi0es minimum rates of wa es payable to employees employed in a scheduled employment! 1he minimum rates of wa es of fi0ed are re'uired to be reviewed and, if necessary, revised by the Government at intervals not e0ceedin five years! U3ection :=1>=b>V &. I2 .t 0e,m.22.61e fo, the em01o)e, to 0a) m.*.m-m <age2 .* ?.*4; As a rule minimum wa es payable under the Act must be paid in cash! 1he employer, however, can pay them in *ind with the permission of the appropriate Government! U3ection 11V '. Ca* atte*4a*ce 6o*-2 6e t,eate4 a2 0a,t of the m.*.m-m <age f.7e4 -*4e, the Act; Attendance bonus is in the nature of an incentive! $t is an additional payment made to the wor*men as a means of increasin production! $t cannot be treated as part of the minimum wa e fi0ed under the Act! 1(. Ca* the 2-001) of e22e*t.a1 commo4.t.e2 at co*ce22.o*a1 ,ate2 f,om 0a,t of the m.*.m-m <age; 3uch supply cannot form part of the minimum wa e unless it is authori@ed by the appropriate Government by a notification in the ;fficial Ga@ette under section 11=:> of the Act! 11. What .2 the o61.gat.o* of the em01o)e, .* ,e20ect of 0a)me*t of <age2 -*4e, the 5.*.m-m Wage2 Act/ 1'"&; Ahere minimum wa es are fi0ed and enforced under section 5 of the act in respect of any employment covered by the Act, the employer is bound to pay to every employee en a ed in that employment wa es at a rate not less than the minimum rate to fi0ed and enforced! U3ection 12V 1 . I2 a* em01o)e,/ <ho .2 *ot 0a).*g 6a2.c <age2 a*4 co2t of 1.3.*g a11o<a*ce 2e0a,ate1) a2 f.7e4 -*4e, the Act 6-t <ho .2 0a).*g <age2 mo,e tha* 0,e2c,.6e4 m.*.m-m ,ate2 -*4e, the Act/ comm.tt.*g a*) .11ega1.t) S 1he minimum rate of wa es fi0ed under the Act is remuneration payable to the wor*er as one pac*a e of fi0ed amount, #either the scheme of the Act nor any provision of the Act provides that the rate of minimum wa es is to be split into basic wa es and cost of livin allowance and therefore where an employer is payin total sum which is hi her than the minimum rate of wa es fi0ed under the Act includin cost of livin allowance, the employer is not committin any ille ality! 1!. What .2 the *-m6e, of ho-,2/ <h.ch co*2t.t-te2 a *o,ma1 <o,?.*g 4a) fo, the em01o)ee2 co3e,e4 6) the Act; A normal wor*in day prescribed for the employees covered by the Act is of 9 hours! U3ection 1: / Mah! )ule 2-V 1". A,e the em01o)ee2 co3e,e4 6) the Act e*t.t1e4 to o3e,t.me <age2; $f an employee covered by the Act wor*s for more than 9 hours on any day or -9 hours in any wee*, he is in respect of overtime wor* entitled to wa es at double the ordinary rate of wa es! U3ection 1- / Mah! )ule 26V 1#. Ca* a* em01o)ee gett.*g <age2 h.ghe, tha* the m.*.m-m <age2 f.7e4 -*4e, the Act c1a.m o3e,t.me <age2 -*4e, Sect.o* (F @ of the Act; Ahere an employee ets wa es hi her than the minimum wa es fi0ed under the Act he cannot claim any benefit under the Act!

44

1$. Ca* a* I*4-2t,.a1 T,.6-*a1 a4A-4.cate -0o* a 4.20-te ,e1at.*g to the f.7at.o* of <age2 of em01o)ee2 co3e,e4 -*4e, the Act; 3ection 2- of the Act does not bar the 5urisdiction of an $ndustrial 1ribunal to ad5udicate upon a dispute relatin to the fi0ation of wa es of employees covered under the Act! 1%. Ca* a* I*4-2t,.a1 T,.6-*a1 f.7 <age2 at ,ate2 h.ghe, tha* the ,ate2 of m.*.m-m <age2 f.7e4 -*4e, the 5.*.m-m Wage2 Act; An $ndustrial 1ribunal ad5udicatin a dispute relatin to wa es is not bound by the minimum rates of wa es fi0ed under the Minimum Aa es Act and it is open to it to fi0 wa es at rates hi her than the rates of minimum wa es fi0ed under the Act! 1&. What .2 the 0o2.t.o* of the em01o)e, <ho .2 -*a61e to 0a) m.*.m-m <age2 f.7e4 -*4e, the Act; 1he employer is bound pay minimum wa es fi0ed under the Act and it is irrelevant whether he has the capacity to pay them or not! 1'. What .2 the 0,oce4-,e the em01o)ee ha2 to fo11o< fo, ma?.*g a c1a.m -*4e, the Act; 1he procedure for ma*in a claim is as follows a! An employee havin any claim under the Act has to ma*e an application to the Authority appointed under the Act! b! 3uch application can be made by the employee himself, or any le al practitioner or any official of a re istered trade union! c! 3uch application has to be made within si0 months from the date on which the claim amount became payable! d! $n appropriate case the Authority can, over and above directin the payment of the difference between minimum wa es payable and wa es actually paid, award compensation upto ten times the amount of the difference! e! 1he amount directed to be paid by the Authority can be recovered as if it were a fine imposed by a Ma istrate! f! +very direction of the Authority will be final! U3ection 2.V (. A,e the em01o)ee2 of a St-4e*t2E :o2te1 e*t.t1e4 to m.*.m-m ,ate2 of <age2 f.7e4 fo, hote12 a*4 ,e2ta-,a*t2; 1he intension of the 2e islature was to include employment on hotels and restaurants under purview of the Minimum Aa es Act! Ahen the 2e islature specifically omitted the term L3tudents8 (otelsL in the 3chedule, it thereby e0cludes it from the purview of the Minimum Aa es Act! 1. Ca* the A-tho,.t) a00o.*te4 -*4e, the Act to 4ec.4e the c1a.m2 of the em01o)ee2 a<a,4 com0e*2at.o* to the t-*e of te* t.me2 of the amo-*t of the 4.ffe,e*ce 6et<ee* <age2 0a)a61e a*4 <age2 act-a11) 0a.4/ .* e3e,) ca2e; 1he limit of Lten times the amount of such e0cessL mentioned in section 2.=:>=i> of the Act is the ma0imum limit! Ahen the Authority awards heavy compensation under the said section, it must ive reasons for doin so! . :a2 a* em01o)ee to 0a) a*) co-,t9fee fo, ma?.*g a* a001.cat.o* to the A-tho,.t); $n the 3tate of Maharashtra an employee is e0empted from payin any court7fee, other than the fee for service of process, for ma*in such applicationF but at the same time the Government is empowered to recover the amount of such court7fee from the employer if the employee succeeds in the application! U3ection 21AV !. Ca* a g,o-0 of em01o)ee2 ma?e a 2.*g1e a001.cat.o* fo, c1a.m.*g m.*.m-m <age2; A sin le application can be made on behalf or in respect of any number of employees!

45

". I2 a* em01o)e, ,eD-.,e4 to ma.*ta.* a*) ,eg.2te, a*4 ,eco,4; +very employer must maintain a muster7roll7cum7wa e re ister and also a bound inspection boo*! U)ule 24 / 29V #. What a,e the offe*ce2 -*4e, the Act a*4 <hat .2 the 0-*.2hme*t fo, them; $f any employer 7 a! pays to any employee less than the minimum rates of wa es fi0ed for that employees8 class of wor*F or b! contravenes any rule or order made by the appropriate Government under 3ection 1: re ardin hours of wor*F he would be punished with imprisonment upto five years or with fine upto )s! 1....!.. or with both! 1he offences under 3ection 22 of this Act shall be co ni@able and non7bailable! U3ection 22, 22<V $. I2 .t 0e,m.22.61e fo, a* em01o)ee to ,eco3e, m.*.m-m <age2 0a)a61e -*4e, the Act 6) f.1.*g a 2-.t .* a C.3.1 Co-,t; 1he Act prohibits ,ivil ,ourts from entertainin any suit for recovery of minimum wa es payable under the Act! U3ection 2-V %. I2 .t 0e,m.22.61e fo, a* em01o)ee to ,e1.*D-.2h h.2 ,.ght2 -*4e, the Act; An employee is prohibited from contractin out of the Act, i!e! from ivin up any of his ri hts under the Act and any contract or a reement made by him relin'uishin or reducin his ri ht to a minimum rate of wa es or any privile e or concession accruin to him under the Act is null and void! U3ection 25V

T:E PAY5ENT OF WA+ES ACT/ 1'!$

1. What .2 the o6Aect of the Pa)me*t of Wage2 Act/ 1'!$; 1he main ob5ect of the Act is to avoid unnecessary delay in the payment of wa es and to prevent unauthori@ed deductions from the wa es! . What .2 the a001.ca6.1.t) of th.2 Act; 1his Act is applicable to employees with wa es less than )s! 65.. per month! !. What .2 the t.me 1a.4 o-t fo, em01o)e, to 0a) the <age2; 1he employer needs to pay wa es to the employee within one month or even on a wee*ly or fortni htly basis! ". To <h.ch e2ta61.2hme*t2 .2 the Act a001.ca61e; 1he Act is applicable to the payment of wa es to persons employed: a! $n factoriesF b! upon railwaysF

46

c. $n other establishments specified in sub7clauses =a> to = > of section 2=ii> of the Act!
1he Act empowers the 3tate Government to e0tend its provisions to the persons employed in any establishments over and above the aforesaid establishments! U3ection 1V #. What ,eg.2te,2 a,e ,eD-.,e4 to 6e ma.*ta.*e4 6) the em01o)e,; 1he employer needs to maintain the followin re isters: 1> 2> :> -> )e )e )e )e ister ister ister ister of of of of "ines wa es deductions for dama e or loss advances made to the employees!

$. A,e a11 <age2 co3e,e4 o, 0,otecte4 6) the Act; Aa es avera in less than )s! 65..!.. per month only are covered or protected by the Act with effect from 11th 3eptember 2..5! U3ection 1=6>V %. A,e o3e,t.me <age2 to 6e ta?e* .*to acco-*t fo, 4ec.4.*g the a001.ca6.1.t) of the Act; Aa es means contractual wa es and not overtime wa es! 1hey are not to be ta*en into account for decidin the applicability of the Act in the conte0t of section 1=6> of the Act! &. Ca* a*) em01o)e, f.7 a 0e,.o4 1o*ge, tha* o*e mo*th fo, 0a).*g <age2 to a 0e,2o* em01o)e4 6) h.m; 1he period to be fi0ed for payin wa es to an employed person must not e0ceed one month! 1hat means, an employer can choose to pay wa es to a person employed by him for a period of every wee* or every fortni ht, but not for a period of every two months or every three months, U3ection -V '. What a,e the ,eD-.,eme*t2 of the Act .* ,e20ect of t.me of 0a)me*t of <age2; 1he followin are the re'uirements of the Act in respect of time of payment of wa es: a! Aa es must be paid on a wor*in day and not on a holiday! b! +stablishments employin less than 1... persons must pay wa es before the e0piry of the 4th day of every month and other establishments must pay wa es before the e0piry of the 1.th day of every month! c! Ahen the employment of any person is terminated, the wa es earned by him must be paid before the e0piry of the second wor*in day from the day of termination! U3ection 5V 1(. What a,e the ,eD-.,eme*t2 of the Act .* ,e20ect of metho4 of 0a)me*t of <age2; Aa es must be paid in current coin or currency notes or in both and not in *ind! $t is, however, permissible for an employer to pay wa es by che'ue of by creditin them in the ban* account if so authori@ed in writin by an employed person! U3ection 6V 11. What .2 the 0,o3.2.o* of the Act ,ega,4.*g 4e4-ct.o*2 f,om the <age2 0a)a61e to a* em01o)e4 0e,2o*; 1he Act prohibits all *inds of deductions e0cept those, which are authori@ed by or under the Act! U3ection 4V 1 . What a,e the 0,o3.2.o*2 of the Act ,ega,4.*g the .m0o2.t.o* of f.*e2 o* the em01o)e4 0e,2o*; a! 1he employer must e0hibit on his premises a list of acts or omissions for which fines can be imposed!

47

b! <efore imposin a fine on an employed person he must be iven an opportunity of showin cause a ainst the fine! c! 1he amount of fine must not e0ceed : percent of the wa es! d! A fine cannot be imposed on an employed person who is under the a e of 15 years! e! A fine cannot be recovered by installments or after 9. days from the day of the act or omission for which it is imposed! f! 1he moneys reali@ed from fines must be applied to purposes beneficial to employed persons! U3ection 9V 1!. I2 the em01o)e, f,ee to .m0o2e f.*e2 .* ,e20ect of a*) act of om.22.o* o* the 0a,t of em01o)e4 0e,2o*2; "ines can be imposed in respect of only those acts or omissions of the employed persons which are approved by the authority prescribed under section 9=1> of the Act! U)ules 1. to 12V 1". What .2 the 0,oce4-,e 0,e2c,.6e4 fo, the .m0o2.t.o* of f.*e a*4 fo, ma?.*g 4e4-ct.o*2 fo, 4amage o, 1o22; Any person desirin to impose a fine on an employed person or to ma*e a deduction for dama e or loss shall e0plain personally or in writin to the said person the act or omission, or dama e or loss in respect of which the fine or deduction is proposed to be imposed, and the amount of fine or deduction, which it is proposed to impose, and shall hear his e0planation in the presence of at least one other person, or obtain it in writin ! U3ubsection 9=:>, 1.=17A> / )ule 15V 1#. A0a,t f,om the em01o)e, h.m2e1f/ <ho e12e .2 ,e20o*2.61e fo, the 0a)me*t to the 0e,2o*2 em01o)e4 6) h.m of <age2 ,eD-.,e4 to 6e 0a.4 -*4e, the Act; a! $n factories, if any person has been named as the mana er of the factory, then the person so named is also responsible for such payment! b! $n industrial establishments, if there is a person responsible to the employer for the supervision and control of the industrial establishment, then the person so responsible is also responsible for such payment! c! Epon railways, if the employer is the railway administration and the railway administration has nominated a person in this behalf, then the person so nominated is also responsible for such payment! U3ection :V 1$. What .2 the 0,oce4-,e a* em01o)e4 0e,2o* ha2 to fo11o< fo, c1a.m.*g 4e4-cte4 o, 4e1a)e4 <age2; a! $f contrary to the provisions of the Act any deduction has been made from the wa es of an employed person or any payment of wa es has been delayed, he has to ma*e an application for claimin the same to the Authority appointed under the Act! b! 3uch application can be made by the employed person himself or a le al practitioner or an official of a re istered trade union! c!3uch application has to be made within a period of 12 months from the date on which the date on which the deduction from the wa es was made or from the date on which the payment of the wa es was due to be made! d! Ahen any application under 3ubsection =2> is entertained, the authority shall hear the applicant and the employer or other person responsible for the payment of wa es under 3ection :, or ive them an opportunity of bein heard, and, after such further en'uiry, if any, as may be necessary, may, without pre5udice to any other penalty to which such employer or other person is liable under this Act, direct the refund to the employed person of the amount deducted, or the payment of the delayed wa es, to ether with the payment

48

of such compensation as the authority may thin* fit, not e0ceedin ten times the amount deducted in the former case and not e0ceedin three thousand rupees but not less than one thousand five hundred rupees in the latter, and even if the amount deducted or delayed wa es are paid before the disposal of the application, direct the payment of such compensation, as the authority may thin* fit, not e0ceedin two thousand rupees! e! 1he amount directed to be paid by the Authority ca be recovered as if it were a fine! f! $f the employed person is not satisfied with the order of the Authority, he himself or a le al practitioner or an official of a re istered trade union, if the amount claimed by him is more than )s! 25!.., can, within :. days from the date of the order prefer an appeal to the Appellate court! U3ubsection 15 / 14V 1%. Ca* the A-tho,.t) ,ef-2e to e*te,ta.* a* a001.cat.o* 0,e2e*te4 to .t; : 1he Authority may refuse to entertain an application presented to it, if after ivin the applicant an opportunity of bein heard the Authority is satisfied, for reason to be recorded in writin that 7 a! 1he applicant is not entitled to present an applicationF b! 1he application is barred by limitation, or c!1he applicant shows no sufficient cause for ma*in a direction under 3ection 15! 1he Authority may refuses to entertain an application presented to it if the application is insufficiently stamped or otherwise incomplete! Ahen the Authority refuses to entertain an application for the said reason, he shall return it with an indication of the defects! 1he application so refused may be presented a ain after the defects have been made ood! U)ule 4 or ,entral )ulesV 1&. If a*) em01o)ee .2 0,e3e*te4 f,om ma?.*g a* a001.cat.o* fo, 0a)me*t of 4e4-cte4 o, 4e1a)e4 <age2 <.th.* the 0,e2c,.6e4 0e,.o4 of 1.m.tat.o* of t<e13e mo*th2/ ca* the A-tho,.t) a4m.t h.2 a001.cat.o* afte, the e70.,) of the 2a.4 0e,.o4; Ender the second proviso to 3ection 15=2> of the Act the Authority is iven power to condone the delay in ma*in the application within the said period if sufficient cause is shown by the applicant for not ma*in the application within the said period! 1'. I2 .t co,,ect to co*te*4 that the e70,e22.o* Kte* t.me2 the amo-*t 4e4-cte4K a00ea,.*g .* Sect.o* 1#F!@ of the Act mea*2 that the com0e*2at.o* a<a,4e4 -*4e, that 2ect.o* m-2t 6e a1<a)2 .* m-1t.01e2 of the <age2 4e4-cte4; 1he compensation awarded under section 15=:> may not be in multiples of the wa es deducted! 1he Authority is free to fi0 such compensation at the proportionate rate which it may thin* to be fair and 5ust sub5ect to the ma0imum of ten times the amount deducted! (. I2 the com0e*2at.o* a<a,4e4 -*4e, 2ect.o* 1#F!@ of the Act 0e*a1 o, .* the *at-,e of ,ecom0e*2at.o*; ,ompensation awarded under section 15=:> is not penal but is in the nature of a payment by way of recompensation for loss or privation by reason of deduction from the wa es paid! 1. Ca* a g,o-0 of em01o)e4 0e,2o*2 ma?e a 2.*g1e a001.cat.o* fo, c1a.m.*g 4e4-cte4 o, 4e1a)e4 <age2; 1his can be done if they are wor*in in the same establishment and if deductions have been made from their wa es for the same cause and durin the same wa es period or if their wa es have remained unpaid for the same wa e period! U3ection 16V . :a2 the em01o)e4 0e,2o* to 0a) a*) co-,t9fee2 fo, ma?.*g a*4 a001.cat.o* fo, c1a.m.*g 4e4-cte4 o, 4e1a)e4 <age2; $n the 3tate of Maharashtra and in some other 3tates the employed person is e0empted from payin any ,ourt7fees, other than fees for service of process, for ma*in such applicationF but

49

at the same time the Government is empowered to recover the amount of such court7fees from the employer of the employed person if the employed person succeeds in the application! U3ection 15AV !. Ca* the em01o)e, a12o 0,efe, a* a00ea1 aga.*2t the o,4e, of the A-tho,.t); $f the employer is a rieved by the order of the Authority, he also can, within :. days of the date of order, prefer an appeal to the Appellate ,ourt if the amount ordered to be paid by him is more than )s! :..!.. or the order imposes on him a financial liability of more than )s! 1...!.. #. If a* em01o)e, <a*t2 to f.1e a* a00ea1 aga.*2t a*) o,4e, of the A-tho,.t) 4.,ect.*g 0a)me*t of <age2/ .2 he ,eD-.,e4 to com01) <.th a*) co*4.t.o* at the t.me of f.1.*g the a00ea1; 3ection 14=1A> of the Act provides that no such appeal shall lie unless the amount payable under the order has been deposited by the employer with the Authority! $. Ca* the amo-*t ,eD-.,e4 to 6e 4e0o2.te4 -*4e, Sect.o* 1%F1A@ 6e 0a.4 afte, the f.1.*g of the a00ea1; 1he amount re'uired to be deposited under 3ection 14=1A> must be paid at the time of filin of the appeal! 1he appeal filed un7accompanied by the certificate of deposit is not maintainable! %. If a 0e,2o* .2 0,e3e*te4 f,om f.1.*g a* a00ea1 to the A00e11ate A-tho,.t) <.th.* the 0,e2c,.6e4 0e,.o4 of 1.m.tat.o* of th.,t) 4a)2/ ca* the A00e11ate Co-,t acce0t h.2 a00ea1 afte, the e70.,) of the 2a.4 0e,.o4; 1he Act ma*es no provision for condonation of the delay in filin the appeal! &. If the em01o)e,/ .*2tea4 of a3a.1.*g of the ,eme4) of a00ea1 -*4e, 2ect.o* 1% of the Act/ f.1e2 a <,.t 0et.t.o* -*4e, A,t.c1e $= % of the Co*2t.t-t.o* of I*4.a/ .2 the <,.t 0et.t.o* ma.*ta.*a61e; 1he writ petition is not maintainable if by filin it the employer has deliberately chosen to circumvent the provisions of law! '. I2 .t com0ete*t fo, the A-tho,.t) to e*te,ta.* a*4 4ec.4e a* a001.cat.o* fo, 0a)me*t of 2-62.2te*ce a11o<a*ce; 1he subsistence allowance payable to an employee placed under suspension pendin ?epartmental +n'uiry is covered within the definition of wa es iven under 3ection 2=6> of the Act and, therefore, the Authority is competent to entertain and decide an application for payment of subsistence allowance! !(. I2 .t com0ete*t fo, the A-tho,.t) -*4e, the Act to e7am.*e the A-2t.f.a6.1.t) of a* o,4e, of 2-20e*2.o*; $f an order of suspension has been passed by an officer competent to pass it, the authority under the Act cannot e0amine its validity to see as to whether it was 5ustified in law or not! !1. Ca* the A-tho,.t) -*4e, the Pa)me*t of Wage2 Act 4ec.4e the D-e2t.o* of the 2tat-2 of a* em01o)e4 0e,2o*; 1he Authority under the Payment of Aa es Act is a ,ourt of summary 5urisdiction havin powers to deal with the simple matter of delay in payment of wa es or deduction from wa es! $t is not within the competence of the Authority to decide the 'uestion of the status of an

50

employed person, i!e!, whether he is a Mistry or welder! 1he matter is a complicated 'uestion of law as also of fact! ! . Ca* the,e 6e attachme*t of 0,o0e,t) 0e*4.*g the 4.20o2a1 of a c1a.m fo, 4e4-cte4 o, 4e1a)e4 <age2; 1he Authority or the Appellate ,ourt can attach the property of an employer pendin the disposal of such claim if it is satisfied that the employer is li*ely to evade payment of any amount that may be ordered to be paid by it! U3ection 14AV !!. Ca* a* em01o)ee f.1e a 2-.t aga.*2t h.2 em01o)e,92ee?.*g .*A-*ct.o* ,e2t,a.*.*g the em01o)e, f,om ma?.*g a*) 4e4-ct.o*2 f,om h.2 <age2; #o such suit can be filed because accordin to section 22=d> of the Act no ,ourt can entertain any suit for the recovery of any deduction from wa es insofar as the sum so claimed can be recovered by an application under section 15 of the Act! !". Ca* a*) em01o)e4 0e,2o* ,e1.*D-.2h h.2 ,.ght2 -*4e, the Act; An employed person is prohibited from contractin out of the Act, i!e! from ivin up any ri ht conferred upon him by the Act, and any contract or a reement made by him relin'uishin such ri hts is null and void! U3ection 2:V !#. I2 a* ag,eeme*t 6et<ee* a* em01o)e, a*4 h.2 em01o)ee2 a-tho,.H.*g the 4e4-ct.o* of -*.o* 2-62c,.0t.o* f,om the 2a1a,.e2 of the em01o)e, *-11 a*4 3o.4 -*4e, Sect.o* ! of the Act; 3uch a reement bein beneficial and advanta eous to the employees is not null and void under 3ection 2: of the Act! !$. I2 a* em01o)e, ,eD-.,e4 to 4.201a) the a62t,act2 of the Act .* h.2 facto,) o, e2ta61.2hme*t; +very employer must display in his factory or establishment a notice containin the abstracts of the Act and the rules made there under in +n lish and also in the lan ua e understood by the ma5ority or the persons employed in the factory or establishment! U3ection 25V "orm #o! G$ and )ule 2- re ardin the display of the abstract of this Act has been deleted by Government of Maharashtra vide notification date :.7Mar72..1 MGG Pt! $72! +0t! date :.7Mar7 2..1 P! 21: !%. What .2 the ,e20o*2.6.1.t) of a* em01o)e, .* ,e20ect of <age2 ,ema.*.*g -*0a.4 o* acco-*t of the 4eath of a* em01o)e4 0e,2o* o* acco-*t of the <he,ea6o-t2 of a* em01o)e4 0e,2o* *ot 6e.*g ?*o<*; An employer shall stand dischar ed of his liability to pay such wa es if he pays them to the nominee of the deceased person, and in case he is not able to do so, if he deposits them with the prescribed authority! U3ection 25AV !&. I2 4e4-ct.*g 2ome amo-*t o, -*.o* 1e3.e2 f,om <age2 of em01o)ee2 a*4 0a).*g the 2ame to the -*.o* .*3a1.4 -*4e, 2ect.o* % of the Act; $f such deduction and payment is made with the consent of the employees and % or with the approval of a competent ,ourt, it is not invalid under 3ection 4 of the Act! !'. What a,e the co*4.t.o*2 .m0o2e4 o* 4e4-ct.o*2 fo, ,eco3e,) of a43a*ce2 of <age2; 1! An advance of wa es shall not e0ceed four months wa es!

51

2! 1he advance may be recovered in installments by deduction from wa es spread over not more than 19 months! :! #o installment shall e0ceed one7third of the wa es for the month! -! 1he rate of interest char ed for advances shall not e0ceed 6 1%-D per annum! U)ule 19V "(. A,e the 0,o3.2.o*2 of 2ect.o* 'F @ of the Pa)me*t of Wage2 Act 0e,m.tt.*g 4e4-ct.o* .* <age2 fo, 0a,t.c.0at.o* .* .11ega1 2t,.?e affecte4 6) the 0,o3.2.o*2 of 2ect.o* $ of the I*4-2t,.a1 D.20-te2 Act 0,o3.4.*g fo, 0e*a1t) fo, .11ega1 2t,.?e2; 1he Payment of Aa es Act and the $ndustrial ?isputes Act operate in different fields and the provisions of section 26 of the $ndustrial ?isputes Act providin for penalty for ille al stri*es do not affect the ri ht of the mana ement to effect a cut in wa es to the e0tent permitted by 3ection 9=2> of the Payment of Aa es Act!

T:E E5PLOY5ENT EOC:AN+ES ACTP1'#' 52

1. What .2 the o6Aect of th.2 Act ; 1his Act compels the employer to notify vacancies occurrin in his establishment to the specified +mployment +0chan es! . :o< 4oe2 .t he10 the em01o)e, ; $t enables the employer to choose the best! !. :o< 4oe2 .t he10 the 0e,2o* ; $t provides an opportunity to the person to claim employment! ". I2 .t com0-12o,) fo, the em01o)e, to em01o) tho2e 20o*2o,e4 6) Em01o)me*t E7cha*ge2 ; #o, the employer is not obli ed to select or employ a person from the well! #. Doe2 the Act a001) to each a*4 e3e,) 3aca*c) ; 1his act does not apply to vacancies in a riculture, domestic service, uns*illed office wor*, employment connected with the staff of Parliament and also to 5obs where the total duration is less than three months! $. What .2 the ma**e, of *ot.f).*g the 3aca*c.e2 ; #otification of vacancies should be in a prescribed form as specified in the Act! %. What .2 the t.me 1.m.t to *ot.f) the 3aca*c.e2 ; 15 days before the applicant is re'uired to come for an interview% written test! &. I2 the,e a 0,o3.2.o* of *ot.f).*g the 3aca*c.e2 .* Em01o)me*t e7cha*ge2 o-t2.4e the 2tate ; &es, $n case the employer thin*s that the choices would be better if he notifies the vacancies on a state level then he can do so at the ,entral +mployment +0chan e or else he can notify at the local +mployment +0chan e! '. What .2 the t.me 1.m.t fo, *ot.f).*g the 3aca*c.e2 .* ca2e of *ot.f).*g .* the Ce*t,a1 Em01o)me*t E7cha*ge ; 1he time limit for notifyin the vacancies in the ,entral +mployment +0chan e is 6. days prior to the date of dispatch of the particulars of interview% written test! 1(. B) <hat t.me 2ho-14 the em01o)e, a**o-*ce the ,e2-1t2 of the 2e1ect.o*; An employer has to announce the results of the selection within 15 days of his date of selection! 11. I2 the em01o)e, ,eD-.,e4 to 2-6m.t ,et-,*2; &es, the employer needs to 'uarterly and biennial returns in the prescribed forms to the local +mployment +0chan e!

T,a4e U*.o* Act 91' $

53

1. :o< ma*) 0e,2o*2 ,eD-.,e4 .* a* .*4-2t,) fo, ,eg.2t,at.o* of a T,a4e U*.o*;

1.D or 1.. whichever is less en a ed or employed in an establishment or industry!

. :o< ma*) 0e,2o*2 ,eD-.,e4 fo, ma?.*g a* a001.cat.o* fo, Reg.2t,at.o* of a T,a4e U*.o*
Minimum 3even!

!.

Application in form A 3chedule $ 3chedule $$ <ye 7 law of the union )esolution authori@in 4 members to ma*e an application ,hallans )eceipt for )s! 5..%7

P,oce4-,e fo, Reg.2t,at.o* of a T,a4e U*.o*

". Whe,e to 2-6m.t the a001.cat.o*; 3ubmit the application before the Asst! 2abour ;fficer havin 5urisdiction over the area where the (ead ;ffice of the union is situated! #. Ca* the em01o)e,2 fo,m a T,a4e U*.o*; &es $. A T,a4e U*.o*/ <h.ch ha2 a* .4e*t.ca1 *ame <.th a*othe,. W.11 .t 6e ,eg.2te,e4; %. Reg.2t,a, of T,a4e U*.o* <.th4,e< a -*.o*C2 ,eg.2t,at.o* .* 3.e< of *o* 0e,fo,ma*ce of ce,ta.* 2tat-to,) 0,o3.2.o*2. I2 .t 0o22.61e; )e istrar has the power only to cancel the re istration! (e cannot withdraw the order of re istration issued by him! &. Whe* ha00e*2 <he* mem6e,2h.0 fa112 4o<* afte, the 4ate of a001.cat.o*;
Application shall not become invalid!

)e istrar of 1rade Enion shall not re ister that union until they ma*e a chan e in the identical name!

'. Who .2 a 0,otecte4 <o,?ma*;

;ffice bearers of a re istered 1rade Enion are protected wor*men!

1O. Ca*ce1 the ,eg.2t,at.o* of a T,a4e U*.o* <he*.

Act! =Aith two months notice from the )e istrar>

1rade Enion ,ertificate obtained by fraud or mista*e, contravened any provision of the 1rade Enion

11. Reg.2t,a,C2 4ec.2.o* *ot co,,ect/ <hom to a00ea1 Appeal to respective (i h ,ourt 1 . What .2 the m.*.m-m age to 6e a mem6e, of T,a4e U*.o*; ;ne who attained the a e of 15 yearsS 1!. What .2 the m.*.m-m age to 6e a* off.ce 6ea,e,; Attained the a e of 19 &ears! 1". Reg.2te,2 a*4 ,eco,42 to 6e ma.*ta.*e4 6)/ a T,a4e U*.o*
)e ister of membership and subscription in "orm MMI )e ister of receipts and disbursement of eneral "und Minutes boo* of the meetin stoc* re ister 3ubscription receipt boo*!

54