Que.8. a) Bonus is a dynamic concept.-Elucidate. Ans.8. a) Bonus is dynamic concept as it apply to 1. Every factory ; and 2.

. Every other establishment in which twenty or appropriate- government may alter giving not less than two months notice of its intention so to do by notification in the official gazette, apply the provisions of this act with effect from such accounting year as may be specified in the notification to any establishment employing less than twenty persons, but the number of persons so specified shall in no case be less than ten. Eligibility for Bonus :Every employer shall be entitled to be paid by his employer in an accounting year, bonus in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty days in that year. Disqualification for Bonus :An employee shall be disqualified from receiving bonus under this Act, if he is dismissed from service for (a) fraud or (b) riotous or violent behavior while on the premises of the establishment ; or theft, misappropriation or sabotage of any property of the establishment . Payment Of Minimum bonus Every employer shall be bound to pay to every employee in respect of the accounting year a minimum bonus which shall be 8.33% of the salary or wage earned by the employee during the accounting year rupees which ever is higher. Note :- Although for the purpose of eligibility a employee drawing wages up to Rs.3500/- is covered under the Act ,yet the bonus payable to him shall be on maximum Rs. 2500/- only. Further salary or wage for the purpose of bonus means Basic Wage and Dearness Allowance only . Payment of Maximum Bonus : Where in respect of any accounting year referred to in Payment of Minimum Bonus ,the allocable surplus exceeds the amount of minimum bonus payable to the employee under that section ,the employer shall pay the accounting year subject to maximum of twenty percent of salary or wage as bonus .

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Ques.8. b)Examine the provisions relating to registrations of Union under the Trade Unions Act ,1926. Ans.8.b) The provision that are related to the registration of Union under the Trade Union Act,1926 as stated below :Application of Registration :1. Every application for Registration of a Trade Union shall be made to the Registrar, and shall be accompanied by copy of the rules of the Trade Union. Any seven or more members of a Trade Union may apply for registration of Trade Union under this Act, after complying with the provisions of this Act and furnishing the statement of the following particulars namely (a) The names, occupation and addresses of the members making the application; (b) The name of the Trade Union and the address of its head office and ; (c) The titles, names, ages, addresses and occupation of the office bearers of the Trade Union. 2. And the general statement of the assets and liabilities of the Trade Union in prescribed form if existing for more than one year before the making of the application for its registration . However the 2001 amendment to the Trade Unions Act, which has come into force from 9 January ,2002 provides that for Registration of a Union, there has to be at least 10% of the employees or minimum 100 which ever is less actually employed in the establishment where the union is to be registered ,subject of course to a minimum of seven members . Provision to be contained in the rules of Trade Union namely; a) The name of the Trade Union b) The whole of the objects for which the Trade Union has been established c) The purpose for which the general fund of the Trade Union shall be applicable (spent for d) The maintenance of the members of the Trade Union and adequate facilities there of for inspection e) The admission of ordinary members and admission of the number of honorary or temporary members as[office bearers]. ee) The payment of a subscription by members of the Trade Union in organised section ,Rs. 3/- per annum per member in the Unorganised sector and Re. 1 /-p.a. per member for the unions in the rural sector .(The change in subscription has been made by the amendment of 2001 to the Trade Unions Act.) the conditions under which any member shall be entitled to any benefits

f)

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g) h) i)

j)

assured by the rules and under which any fine or forfeiture may be imposed on the members . the manner in which the rules shall be amended, varied or rescinded; the manner in which the members of the executive and the other office bearers of the Trade Unions shall be appointed and removed . the safe custody of the funds of Trade unions, and annual audit, in such manner as may be prescribed ,of the accounts thereof, and adequate facilities for the inspection of the account books by the [office-bearers] and the members of the Trade Unions ; and the manner in which the Trade Union may be dissolved.

Registration :The registrar on being satisfied that the Trade Union has complied with all the requirements of this Act in regard to registration shall register the Trade Union by entering in a prescribed register . However if the Registrar does not communicate with the Union and keeps quiet a for a period exceeding 6 months ,the Union can file a writ of mandamus before the High Court. This has been decided by the Patna High Court in the case of ACC Rajanka Lime Stones Vs. Registrar of Trade Unions, 1969 . The registrar on registering a Trade Union under sec. 8 shall issue a certificate a registration in the prescribed form which shall be conclusive evidence the Trade Union has been duly registered under this Act. Ques.9. a) Critically examine the benefits that are available to the insured persons and their dependants under the employees State insurance Act,1948. Ans.9.a) The insured persons and their dependents following benefits, namely:
a)

shall be entitled to the

Periodical payments to any insured person in case of sickness certified by a duly appointed medical practitioner. This is the sickness benefit. In order to claim this benefit the insured person should have contributed for atleast 78 days during the contribution period. The benefit is paid at a Standard Benefit rate which is close to 50% of the average wage. Sickness benefit is available for maximum 91 days during 2 consecutive benefits periods. Extended sickness benefit is available to an insured person who is a member of the ESI Scheme for a minimum period of 2 years . Such an insured person contracts any specified malignant disease that he is eligible to claim extended sickness benefits for 309days. This benefits payable at a rate which is 25% more than the standard benefit rate. Enhanced sickness benefit is available to insured person when he /she undergoes family planning operation. This benefit is available for a period ranging between 6 days to 12 days depending upon the type of operation. This benefit is paid at double the standard benefit rate.

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Periodical payments to an insured women incase of confinement or miscarriage or sickness arising out of pregnancy ,confinement, premature birth of child or miscarriage .This is maternity benefits .This benefit is available to an insured woman if she has contributed for minimum 70 days prior to confinement .The maternity benefit is paid at a rate which is double the standard benefit rate . c) Periodical payments to an insured person suffering from disablement as a result of an employment injury sustained as an employee under this Act. This benefit is available to an insured person right from day 1 . In order to avail this benefit the insured person who has met with an employment injury should be disabled from joining duties for maximum 3 days .This benefit is paid at a rate which is 40% above the standard benefit rate. d) Periodical payments to such dependents of an insured person who dies as result of an employment injury . It is known as dependents benefits . This benefit is paid to the spouse and two minor children .This amount is paid on a monthly basis depending on the last income of the insured person . Out of the payable amount 3/5 is given to the widow and 2/5 is given to the children . Each child gets 1/5 of the amount .The child gets this amount till he reaches the age of 18 years , the widow gets the amount till her death or till her remarriage which ever is earlier . e) Medical treatment for attendance on insured persons if is known as medical benefit f) Payment to the eldest surviving member of the family of an insured person who has died ,towards the expenditure on the funeral of the diseased . Insured person- this is known as funeral benefit .The amount payable as funeral benefit at present is Rs. 2,500 .
b)

Ques.9. b) Explain the contents of the Employees deposit Linked Insurance and the Pension Scheme,1995. Ans 9.b) Employees Deposit Linked Insurance Scheme : This scheme was introduced by an amendment in the year 1976 . It provides for relief to the nominee of the Provident Fund subscriber in case of premature death of the subscriber . No contribution is payable by the employee under the scheme ,but the employer has to make contribution @0.5% of basic wage, dearness allowance and retaining allowance. Benefits Incase of premature death ,if the employee balance for the past three years is Rs. 1000 then he gets an equivalent amount subject to max. Rs.60,000/-.

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 If employer formulate a better scheme than the EDLI then exemption can be obtained from the government. LIC provides for Rs.62,000/- in its scheme irrespective of balance in the subscribers account . Pension Scheme,1995 : The New Pension scheme was formulated by Mr. Ram Vilas Paswan when he was the Labour Minister . Same scheme by the Congress Govt. was opposed by the CPI & CPM The reason being that they wanted it to be a Third Terminal Benefit after Provident Fund and Gratuity. Benefits : Monthly Members Pension Superannuation pension which the member gets after attaining the age of 58 and rendered service of 20 years or more of eligible service . Retirement pension if the member renders eligible service of 20 years or more and retires or ceases to be in employment before attaining the age of 58 years . Short service pension if he has rendered a service of 10 years or more but less than 20 years . Incase of new entrant the amount of monthly superannuation or retiring pension is calculated as follows :

Monthly Members Pension = Pensionable Salary x Pensionable Service 70 Pension Scheme Certificate Document showing pensionable service and the amount of pension on the date of exit from employment is issued to the member who has not attained the age of superannuation .Service mentioned in the certificate shall be counted for determination of pension along with fresh service rendered by way of subsequent employment ,if any, with the establishment covered under the Employees Pension Scheme 1995 . Invalidity Pension The member is entitled for disablement pension incase of permanent and total disablement during the course of employment . Such member shall be entitled for pension as per normal rule subject to a minimum of two hundred and fifty rupees

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Per .Member with contribution for even one month is entitled for benefit under this category .The member shall be required to produce invalidity/disability certificate issued by the medical Board set up under Employees State Insurance Scheme. Widow Pension

Widow of the member shall be entitled for pension from the date following the date of death of member whether the death has occurred while in service or alter exit from the employment or after retirement /commencement of pension . The pension of widow will be equal to members pension entitlement in case of death prior to retirement subject to a minimum of two hundred and fifty rupees per month. The pension to widow shall be equal to half of members pension subject5 to a minimum of two hundred fifty rupees per month where death occurs after retirement/commencement of pension. Pension under this category shall be payable for life or remarriage, which ever is earlier. For purpose of this benefit, widow incorporates widower also, wherever applicable. Children Pension

Two children of the deceased member shall be entitled to children person upto age of twenty five years in addition to pension to widow. The amount of pension for each child shall be equal to twenty five percent of the amount admissible to the widow subject to a minimum of one hundred fifteen rupees per month. Orphan Pension

Orphan children shall be entitled to monthly orphan pension equal to 75% of the amount of widow pension subject to a minimum of Rs. 170/- p.m. per child ,where the member is survived by children only. Pension under this category shall be payable to a maximum of two orphan children upto age of 25 years . Nominee Pension

Members can nominate a person to receive benefits under the Employees Pension Scheme 1995 where a member is unmarried or does not have any family. Such nominee shall be paid pension equal to widow pension in case of death of member. Ques.10. a) Examine the provision of health and welfare under the Factories Act,1948. Ans 10.a) Provisions of health and welfare under the Factories Act,1948 are stated below-

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Health Cleanliness : 1) Every factory shall be kept clean a) Accumulation of dirt and refuse shall be removed daily by sweeping or by any other effective method from the floors and benches of work room and from staircases and passages and disposed of in a suitable manner. b) All in side walls, partition, all ceilings to be of passages and staircases shall be whitewashed or varnished and repainted or revarnished at least once in every period of five years. Disposal of wastes and effluents: 1) Efficient arrangements shall be made in every factory for their disposal. Ventilation and temperature: 1) If effective and suitable provision shall be made in every factory for securing and maintaining in every workman. a) Adequate ventilation by the circulation of fresh air and b) Such a temperature as well secure to workers therein reasonable conditions of comport and prevent injury to health. Dust and fume: 1) In every factory in which by reason of the manufacturing process carried on, there is given off any dust or fume or other impurity of such a nature and to such an extent as is likely to be injurious or offensive to the workers employed therein. Effective measures shall be taken to prevent its inhalation and accumulation in any work room. Artificial Humidification: a) Prescribing the standards humidification,:

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b) Regulations of the methods use for artificially increasing the humidity of the air. c) Directing the prescribed tests for determining the humidity of the air to be correctly carried out and recorded. d) Prescribing methods to be adopted for securing adequate ventilation and cooling of the air in the workrooms. Over crowding : 1) No room in any factory shall be over crowded to an extent which injurious to the health of the workers employed therein. 2) Without prejudice to the generality of sub-section (1) there shall be in every work room of a factory in extent on the date of the commencement of this Act least 9.9 cubic meters and of a factory built after the commencement of this Act atleast 14.2 cubic meters of space for every worker employed therein, and the purposes of this sub-section no account shall be taken of any space which is more than 4.2 meters above the level of the floor of the room. Lighting :

In every part of a factory where workers are working of passing there shall be provided and maintain sufficient and suitable lighting natural and artificial or both . Drinking water: 1) In every factory effective arrangements shall be made to provide and maintain at suitable points conveniently situated for all workers employed therein a sufficient supply of whole some drinking water . 2) All such points shall be legibly marked drinking water in the local language and in English at no such point shall be situated within 6 meters of any washing place, urinal ,latrine ,spittoons . 3) Provisions shall made for cooling drinking water during the hot water wherein more than 250 workers are ordinarily employed . Latrines and Urinals :

1) In every factory :a) Sufficient latrines and urinals accommodation of prescribed types shall be provided conveniently situated and accessible to workers at all times while they are at the factory . b) Separate enclosed accommodation shall be provided for male and female workers . c) Such accommodation shall be adequately lighted and ventilated .

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d) All such accommodation shall be maintained in a clean and sanitary conditions at all times. e) Sweepers shall be employers for cleaning the latrines ,urinals and washing pleas .

Spittoons :

1) In every factory there shall be provided a sufficient number of spittoons in convenient places and they shall be maintained in a clean and hygienic conditions. 2) No person shall spit within the premises of a factory except in the spittoons provided for the purposes . If any person spits in contravention of this provision the worker shall be punishable with fine not exceeding the five rupees. Welfare Washing Facilities : a) Adequate and suitable facilities for washing shall be provided and maintained for the use of the workers there in separately for male and female workers. Storing and Drying Clothing :

Facilities for storing and drying clothing . Suitable arrangements shall be made and maintained for storing and drying clothing for male and female separately . Facilities for Sitting :

In every factory suitable arrangements for sitting shall be provided and maintained for all workers when they get an opportunity for rest during the course of their work. First aid appliances : 1) There shall in every factory be provided and maintained so as to be readily accessible during all working hours-first aid boxes well equipped with the prescribed contents(a) 1 for every 150 workers working at a time. These first aid boxes should be under the supervision of the senior supervisor who is trained in first aid training and who shall always be reading available during the working hours of the factory .

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2) In every factory where in more than five hundred workers are ordinarily employed there shall be provides and maintained an ambulance room of the prescribed size, and well equipped under the care of Medical Staff.

Canteen :

Where in more than two hundred and fifty workers are ordinarily employed a canteen or canteens shall be provided and maintained by the occupier for the use of the workers and managing committee for the canteen shall be constituted consisting of representatives of the workers and the management. Shelters, rest rooms and lunch rooms : 1) In every factory where in more than one hundred and fifty workers are ordinarily employed ,adequate and suitable shelter or rest rooms or lunch rooms with the provisions of drinking water shall be provided and maintained for the use the worker and the management. Creches : 1) In every factory wherein more than one hundred and fifty workers are ordinarily employed there shall be provided and maintained suitable rooms for the use of children under the age of six years of such women workers . Welfare Officers :

1) In every factory where in five hundred or more workers are ordinarily employed the occupier shall employ in the factory such number of welfare officer as may be prescribed. Ques.10.b) Gratuity is paid not for long but for long and meritorious service. Examine this statement in the light of the forfeiture clause laid down under The payment of Gratuity Act,1972. Ans.10.b) Gratuity is paid not for long but for long and meritorious service is explained as below :1) Gratuity: shall be payable to an employee on the termination of the employment after he has rendered continuos service for not less than five years.

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a) b) c)

On his supernnuation or On his retirement or resignation On his death or disablement sue to accident or disease.

Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement. Provided further that in case of death of the employee gratuity to him shall be paid to him nominee or, if no nomination has been made to his heirs, and where any such nominees or heirs is a minor, the share of such minor ,shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution ,as may be prescribed ,until such ,unit such minor attains majority . 2) For every completed year of service or part there of in excess of six months ,the employer shall pay gratuity to an employee at the rate of fifteen days wages based on the rate of wages last drawn by the employee concerned . Provided that in case of a piece rated employee, daily wages shall be computed on the average of the total wages received by him for a period or three months immediately preceding the termination of his employment, and for this purpose, the wages paid for any overtime wok shall not be taken into account . Provided further that in case of an employee who is employed in seasonal establishment, and who is not so employed through out the year the employer shall pay the gratuity at the rate of seven days wage for each season. Explanation in the case of a monthly rate, employees fifteen days wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty six and multiplying the quotient by fifteen. 3) The amount of gratuity payable to all employee shall not exceed Rs.3,50,00/-. 4) For the purpose of computing the gratuity payable to an employee who is employed ,after his disablement ,on reduced wages ,his wages for the period preceding his disablement shall be taken to be the wages received by him during that period ,and his wages for the period subsequent to his disablement shall be taken to be the wages as reduced . 5) Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer. 6) Notwithstanding anything contained in subsection (1),(a) The gratuity of an employee whose service have been terminated for any act, of willful omission or negligence causing any damage or loss

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to, or destruction of, property belonging to the employer ,shall be forfeited to the extent of the damage or loss so caused ; (b) The gratuity payable to an employee may be wholly or partially forfeited to i. If the service of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or ii. If the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude ,provided that such offence is committed by him in the course of his employment .

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