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The following central labour Acts which will be clubbed in to FOUR Codes .The process is under progress

INDUSTRIAL SAFETY & HEALTH

1.The Factories Act,1948

2.The Gujarat Physically Handicapped Persons (Employment in factories ) Act 1982

3. The Building & Other Constructions Act,1996

(B) SOCIAL SECURITY

1. The Employee’s Provident & Misc Provisions Act,1952

2. The Employee’s State Insurance Act,1948

3. The Employees Compensation Act,1923

4. The Payment of Gratuity Act,1972

5. The Maternity Benefits Act,1961

(C) WAGES

1. The Minimum Wages Act,1948

2. The Payment of Wages Act,1936

3. The Payment of Bonus Act,1965

4.The Equal Remuneration Act,1976


(D) LABOUR WELFARE

1. The Contract labour( Prohibition & Abolition) Act,1970

2.The Labour welfare Fund Act,1961 & Gujarat Rules 1962

3. The Child labour Act,1986

(E) EMPLOYMENT & TRAINING

1. The Employment Exchange (Compulsory Notification of vacancies),Act,1959

2. The Apprentice Act,1961

(F) INDUSTRIAL RELATIONS

1.The Industrial Disputes Act,1947

2.The Bombay Industrial Relations Act,1946

3. The Industrial Employment (Standing Orders) Act,1946

4. The Trade Unions Act,1926


FACTORIES ACT, 1948


Applicability

Any premises whare in 10 or more persons with the aid of power or 20 or more workers are/were without aid of power working on any day preceding 12 months, wherein Manufacturing process is being carried on.

Registration of factories & Renewal of factory licence

Application for Registration and Renewal of Factory licence along with form No 2 , 3, and applicable fee & approved factory plan with stability certificate to be submitted with Joint Director - Health & Safety,Surat


Employment of Young Persons

  • Prohibition of employment of young children e.g. 14 years
  • Non-adult workers to Carry tokens e.g. certificate of fitness.
  • Working hours for children not more than 41/2 hrs. and not permitted to work during night shift.

Working Hours, Spread Over & Overtime of Adults

  • Weekly hours, not more than 48.
  • Daily hours not more than 9 hours.
  • Rest for at least 1/2 hour on working for 5 hrs.
  • Spread over not more than 101/2 hours.
  • Overlapping shifts prohibited.
  • Extra Wages for overtime @double rate of wages.
  • Restrictions on employment of women before 6 A.M. and beyond 7 P.M.

Safety Measures

  • By fencing of machinery
  • By not allowing work on or near machinery in motion.
  • By not employing young persons on dangerous machines,
  • By striking gear and devices for cutting off power.
  • By installing Self-acting machines,
  • By casing of new machinery.
  • By providing Hoists and lifts.

Annual Leave with Wages

  • An adult worker having worked for 240 days shall get one day leave for every 20 days
  • A child shall get one day leave for every 15
  • Accumulation of leave for 30 days.

Basic Amenities


Employer shall ensure for the health of workers:

- Cleanliness

- Disposal of wastes and effluents

- Proper ventilation and temperature control

- Dust and fume control

- Overcrowding control

- Artificial humidification

- Lighting

- Drinking water

- Spittoons

- Exhaust fans/Ventilation

- Marking for Exit ,Emergency Exit

- Assembly points

- Safety policy

- Guidelines for Visitor’s safety

- Fire Alarm system

- Toilet/Bathroom – Provision as per strength of workmen


Welfare Measures

Employer to provide:

  • Washing facilities
  • Facilities for storing and drying clothing.
  • Facilities for sitting
  • First-aid appliances - one first aid box for every 150 workers
  • Canteens when there are 250 or more workers.
  • Shelters, rest rooms and lunch rooms when there are 150 or more workers.
  • Creches when there are 30 or more women workers.
  • Welfare office when there are 500 or more workers.
  • Ambulance room

Penal Provision

  • Imprisonment upto 2 year or fine upto Rs. 1,00,000 or both: for contravention of the provisions of the Act or Rules .Rs.1000 per day: On continuation of contravention
  • On contravention of Chapter IV pertaining to safety or dangerous operations: Not less than Rs. 25,000 in case of death. Not less than Rs. 5,000 in case of serious injuries. Subsequent contravention of some provisions: Imprisonment up to 3 years or fine not less than Rs. 10,000 which may extend to Rs. 2,00,000.
  • Imprisonment up to 6 months or fine up to Rs.10,000 or both: for Obstructing Inspectors
  • Imprisonment up to 6 months or fine up to Rs. 10,000 or both: for Wrongful disclosing result pertaining to results of analysis
  • For contravention of the provisions of Sec.41B, 41C and 41H pertaining to compulsory disclosure of information by occupier, specific responsibility of occupier or right of workers to work imminent danger: Imprisonment up to 7 years with fine up to Rs. 2,00,000 and on continuation fine @ Rs.5,000 per day. Imprisonment of 10 years when contravention continues for one year.

THE GUJARAT PHYSICALLY HANDICAPPED PERSONS (EMPLOYMENT IN FACTORIES)

It shall apply to-

  • (i) every existing factory where One hundred or more workers are working or were working on any day of the twelve months immediately preceding the commencement of this Act ;
  • (ii) Every new factory where One hundred or more workers are working.

Certifying Surgeon" means a Certifying Surgeons appointed under section 10 of the Factories Act, 1948;

Person registered as physically handicapped" means a physically handicapped person whose name is registered with an employment exchange; "Physically handicapped person" means a person who, on account of any deficiency, injury, diseases or congenital deformity, is substantially handicapped in obtaining or keeping employment, or in undertaking work on his Own account, of a kind which but for such deficiency, injury, disease or deformity would be Suited to his age, experience and qualification;

The Government of Gujarat has enacted Gujarat physically Handicapped persons (Employment in Factories) Act, 1982. Under this legislation all Inspectors have been appointed as Inspector for implementation of this Act. It applies to factories employing 100 or more workers. Under this Act, employers are required to allocate and appoint 1% of total employment as physically handicapped persons (Disability should be 40%).


The Building and Other Constructions Act,1996


Applicability:

It extends to the whole of India.

Registration of establishments.-

(1) Every employer shall apply for registration of an establishment on its commencement, within a period of sixty days in a a form along with fees as prescribed

(2) After the registration of an establishment, any change occurs in the ownership or management or other prescribed particulars in respect of such establishment, the particulars regarding such changes shall be intimated by the employer to the registering officer within thirty days.

Register of beneficiaries.-

Every employer shall maintain a register of workers showing the details of employment of beneficiaries

Responsibilities of Employer:

The Employer shall ensure the provisions relating to payment of wages ,Hours of Work, Safety & Health & other welfare measures of Workers.

An employer shall also be responsible for providing constant and adequate supervision of any building or other construction work in his establishment as to ensure compliance with the provisions of this Act relating to safety and for taking all practical steps necessary to prevent accidents.

In case the contractor fails to make payment of compensation then, in the case of death or disablement of the building worker, the employer shall be liable to make payment of that compensation in full or the unpaid balance due in accordance with the provisions of the Employees Compensation Act, 1923.

An employer shall, at least thirty days before the commencement of any building or other construction work, send notice to the Inspector having jurisdiction in the area , a written notice containing-

(a) The name and situation of the place, responsible person, and communication address

(b) The nature of the work involved and the facilities & arrangements for the storage of explosives,

(c) The number of workers likely to be employed

(d) The approximate duration of the work;

(e) Any change occurs shall intimate to the Inspector within two days of such change.

Penalty& Reruns:-

Employees' Provident Funds & Misc. Provisions Act & the Schemes, 1952

Applicability

Eligibility

Every employee including part time worker and those employed by or through contractor is entitled to become member of the scheme from the date of joining the establishment.

With effect from 01/09/1997 an employee is eligible for membership from the very first date of joining the establishment.

Employee Definition

As defined in Section 2(f) of the Act, means any person who is employee for wages in any kind of work manual or otherwise, in or in connection with the work of an establishment and who gets wages directly or indirectly from the employer and includes any person employed by or through a contractor in or in connection with the work of the establishment.

Excluded Employee

Exempted employee means an employee to whom a Scheme or the Insurance Scheme, as the case may be, would, but for the exemption granted under section 17, have applied. However, if the wage of an employee as covered under the Act, exceeds the prescribed ceiling he will be continue to remain covered up to prescribed ceiling. Similarly, if a new employee is drawing more than the prescribed wages but he will not be coverable but if he has never been member of Fund, he will be covered up to the prescribe wage ceiling.Now present wage ceiling of Rs.15000/ basic.

The Employees pension scheme membership will cease from the member attains 58 years of age.However he will continue to be member of Employees provident fund till he leave the services and withdraws the PF accumulations.

Basic Wages

"Basic Wages" means emoluments which are earned by employee while on duty or on leave or holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash, but does not include:

a. The cash value of any food concession;

b. Any cash payment, by whatever named called, paid to an employee on account of a rise in the cost of living, House rent Allowance, Overtime Allowance, Bonus, Commission or any other allowance payable to the employee in respect of employment or of work done in such employment.


Wage Ceiling:

Effective 01/09/2014 ,employee receiving basic wage of Rs.15000/ pm to enroll under PF.


Period - Wage limit per month

01.11.1952 to 31.05.1957 - Rs. 300/

01.06.1957 to 30.12.1962 - Rs. 500/

31.12.1962 to 10.12.1976 - Rs. 1,000/

11.12.1976 to 31.08.1985 - Rs. 1,600/

01.09.1985 to 31.10.1990 - Rs. 2,500/

01.11.1990 to 30.09.1994 - Rs. 3,500/

01.10.1994 to 31.05.2001 - Rs. 5,000/

01.06.2001 to 31.08.2014 - Rs. 6,500/

01.09.2014 onwards - Rs. 15,000/


Rates of contribution


Scheme


PF Scheme

Insurance scheme

EPS Scheme

Employee’s


12%

Nil

Nil

Employer’s


3.67%

0.50%

8.33%

Central Govt’s


Nil

Nil

1.16%


Scheme


EPF

EPS

EDLI

Administrative charges:


:0.65% of total wages

: Nil

:0.01% of EDLI Wages

Inspection charges:


0.18% of total wages

Nil

0.005% of EDLI Wages


Default in payment


Period

Less than 2 months

2 months and above but less than 4 months

4 months and above but less than 6 months

4 months and above but less than 6 months

Damages

:5%

:10%

:15%

:25%

Interest

12%

12%

12%

12%


Penal Provision


Liable to be arrested without warrant being a cognizable offence. Defaults by employer in paying contributions or inspection/admin. charges attract imprisonment up to 3 years and fine up to Rs.10,000 (S.14). For any 15 retrospective applications, all dues have to be paid by employer with damages up to 100% of arrears.


Documents to be kept ready at the time of Inspection

1. Inspection/Visit Book

2. Form No.5-A submitted online

3. Bank details-Bank pass book,Branch name,IFSC Code

4. Balance sheet for the period of Inspection

5. Payment position format

6. Specimen signature-Digital

7. Attendance sheet/salary sheet for the period of Inspection


Documents required to obtain PF Code-Coverage under PF Act

1. Name of Company

2. Address of company with address proof

3. Date of set up of the Company

4. Company PAN Card

5. Copy of licence, if any

6. Cancelled Cheque of Company

7. List of Directors/ Partners

8. Address proof of Directors/Partners/Proprietor Mail address of Company,

9. Mobile No. of Directors/Partners/Proprietor

10. Digital Signature of Directors/Partners/Proprietor

11. Copy of GST Number

12. Strength of employee ,

13. Memorandum of Articles of Association

14. Aadhar card of Owner


Composite claim form (in case of Death) is required to fill up and sign by claimant and company

1. Original death certificate of Deceased member

2. No break certificate duly filled in and signed

3. Family members photographs of all claimants (spouse & two children below age of 21 yrs) Three copies

4. LSM-Family members details

5. Birth certificate/school leaving certificate and Aadhar card No.of Deceased and all claimants

6. Any one of SBI/ICICI/AXIS/Dena Bank Pass book/cancelled cheque -Bank name & address ,branch code,IFSC Code –for all claimants

7. Address proof of claimant -Elect Bill,Tax receipt

8. Wage register for last three months from date of death

9. Attendance register for last three months from date of death

10. Joint Declaration form in case of change of deceased details


Benefits of Social Security-PF

1. Whatever amount (12%) is deducted from the salary of an employee , an equivalent matching amount is deposited by the company with PF Account A/c No.of an employee.

2. Interest is accrue @ 8.65% on the monthly basis on balance amount of PF of an employee

3. After becoming member of PF , UAN No of employee is taken which is a universal Number across the country and wherever employee join their service, the same UAN No is used to deposit amount of PF

4. Registration of Aadhar No and Mobile No. are mandatory.Employee can get SMS on his mobile

5. Employee can access by using his PF Account No. to see the statement of his PF accumulations.

6. If employee change his employment in that case also, employee can continue to deposit the PF amount in the same PF Account No.

7. After leaving the services , if employee do not join another establishment , then in that case after two months of leaving service, he can withdraw the entire accumulation of his PF along with Employer’s contributions.

8. After five years of becoming member of PF ,an employee can withdraw the Advance from his PF accumulations for purchase of house,repairing of house or marriage of children, or education of children

9. After becoming member of PF , if unfortunately employee dies due to sickness or in accident ,his legal heir will get monthly minimum pension of Rs.1000/pm though he has contributed of PF only for one month.If diseased member contributed for long period then amount of monthly pension will be increased automatically.

10. If employee has contributed of PF for 10(ten) years , then he will get pension attaining the age of 58 years and it will continue till he or his wife alive.

12. PF amount accumulated/deposited is tax free amount as per section 80 of IT Act

13. Now PF deptt is becoming totally digitization and therefore employee can withdraw his PF Amount through online application ,without the signature of his Employer

Government has made it mandatory for all employees whose salary is up to Rs.15000/ pm to become a member of PF and accordingly 12% contribution is deducted from the salary of an employee and company is adding the same amount of PF and deposit with PF Account of an employee.

15. EDLI Insurance benefits(New):

New Calculation of EDLI w.e.f.15/02/2018 in case of death of PF member as follows:- The average monthly wages drawn (subject to a maximum of 15000.00), during the 12 months preceding the month in which he died, multiplied by 30 times plus 50% of the average balance in the account of the deceased in the Fund whichever is less subject to a ceiling of 1,50,000/-: Provided that the assurance benefit shall not be less than 2.5 lac rupees: Provided further that the assurance benefit shall not exceed 06 lac rupees: Example: Employee DOJ: 01/01/2018, DOD: 20/02/2018, PF salary:10,000/- EPF Deduction: 10,000 / 26(working days) x 18 Present Days = 6923.00, PF contribution @12% 831.00 + Employer share towards EPF @3.67% =254.00 + EPS @8.33% = 577.00 , Total EPF Balance = 1085 + Int. EDLI calcultaion: 10,000 x 30 = 03 Lacs + 50% of EPF balance i.e.543.00. EDLI Benefits would be 3,00,543.00 + Pension to widow and child up to 02 children of age up to 25 years + EPF balance.

The said provision shall be in force for first 02 years from 15/02/2018


Employee Pension scheme 1995


Consequence of Non-compliance

The employer has the primary liability to deduct contribution from the wages of workmen and deposit the same at the PF department along with matching contribution in a prescribed form. Upon non-compliance, the same can be recovered in a manner provided in Section 8B & 8F of the EPF Act, 1952. Moreover, the employer may face penal action for such non-compliance. Thus, there is no escape from complying with the provisions of the Act except to the persons engaged as ‘consultants’.


Employees' State Insurance Act & The Scheme, 1948


Applicability

Eligibility

Effective 01/01/2017 ,employee receiving wage of Rs.21000/ pm to enroll under ESIC.

However,there is no wage ceiling for coverage of an employee with 'disability' 01.04.2016.


Wage ceiling


Period - Wage limit per month


28.01.1968 to 29.11.1975 - Rs. 500/

30.11.1975 to 26.01.1985 - Rs. 1000/

27.01.1985 to 31.03.1992 - Rs.1600/

01.04.1992 to 31.12.1996 - Rs. 3000/

01.01.1997 to 31.03.2004 - Rs. 6,500/

01.04.2004 to 30.09.2006 - Rs. 7,500/

01.10.2006 to 30.04.2010 - Rs. 10,000/

01.05.2010 to 31.12.2016 - Rs. 15000/

01.01.2017 onwards - Rs. 21000/


Contribution Period


Benefit Period

If the person joined insurable employment for the first time, say on 5th January, his first contribution period will be from 5th January to 31st March and his corresponding first benefit will be from 5th October to 31st December i.e after 9 months.


Membership

If an insured person's wages/salary becomes more than 21,000/- per month, even then he/she remains covered till the end of a Contribution Period which is either April to September & October to March.


RATE OF CONTRIBUTION

Employer's Share: 4.75% of wages/salary.

Employee's Share: 1.75% of wages/salary.


Wages/Salary


Not As Wages/Salary


Manner And Time Limit for making payment of contribution

The total amount of contribution (employee's share and employer's share) is to be deposited with the authorized bank through a challan in the prescribed form in quadruplicate on or before 15th of month following the calendar month in which the wages fall due.


Benefits


SUPER SPECIALITY PROCEDURE

When ESI hospitals are not having the requisite facilities -super specialty treatment

The State Medical Commissioner/Medical Superintendents of ESIC Hospitals/Director, ESI (Medical) Services, have entered into tie-up arrangements with recognized medical institutions to provide cashless treatment to insured persons and their family members for treatment that are not available in ESI/ESIC institutions to ensure that the ESI beneficiaries are provided full medical care. In order to avail treatment in such hospitals, the insured persons are required to obtain eligibility certificate from the concerned Insurance Medical Officer of ESI/ESIC hospital, referring the insured person or his dependents to such hospitals.

The eligibility conditions for super specialty treatment are as follows:

An insured person who is eligible for medical treatment is entitled to avail Super Specialty treatment, for self and his/her family.

A newly registered employee is entitled to avail super specialty treatment for self, on completion of three months of service in insurable employment and contribution should have been paid/payable for not less than 39 days during that period.

A newly registered employee ‘s dependents are entitled to super specialty treatment on completion of six months of service in insurable employment and contribution should have been paid/payable for not less than 78 days during that period.

The concepts of contribution period and benefit period will not apply while deciding the eligibility of an IP for Super specialty treatment.

The beneficiary can avail the super specialty treatment in a state different from that of the state in which the IP is registered by following the procedure

The referring hospital/dispensary shall send a copy of the reference slip to the SSMC/SMC of the referring and the referred state from where the patient wants to avail, the required super-specialty treatment.

SSMC/SMC of the state from where the patient wants to take treatment, shall intimate the network/tie-up hospital for providing necessary/required treatment. Thereafter, the bill for payment may be sent to the SSMC/SMC of the state from where he was referred on completion of treatment.

The eligibility for super-specialty treatment is 3 months (with contribution paid for at least 39 days) of insurable employment for insured person (for self) and 6 months (with contribution paid for at least 78 days) of insurable employment by Insured Person for their family members. Such tertiary care (super-specialty treatment) is provided through in-house super specialty facilities available in some of ESI Hospitals or ESI-PGIMSRs or through large no. of advanced empanelled medical institutions on referral basis through tie-up arrangements. About 750 private hospitals in all over India are now empanelled as tie-up Hospitals for ESIC.

From April 1, the Employees State Insurance Corporation (ESIC) plans to provide super specialty treatment to retired insured persons (IPs), with a ceiling of ₹10 lac a year.

The ESIC said the “option to join shall be one time on retirement (under Rule 61). No enrolment shall be allowed thereafter.” The“ceiling of expenditure on SST/all referrals to tie-up hospitals in a financial year may be restricted to ₹10,00,000.”

Under the norms, only the IP and his/her spouse shall be eligible for treatment; a retired IP who has opted out at any time after retirement shall not be eligible to rejoin on any subsequent date; IPs already retired but not enrolled so far may be given a one time opportunity to join the scheme within three months.

However, they shall be eligible for SST only after six months.

Medical Benefit

For super specialty treatment such as open heart surgery, neuro surgery, bone marrow transplant, kidney transplant or specialized investigations like CAT scan, MRI angiography etc. referral arrangements are available with the reputed hospitals of the country. The total cost of such treatment, diagnostic facilities or surgical intervention is borne by the ESI Scheme.

Family of a deceased insured person, who is not entitled for sickness benefit at the time of death, is not eligible for specialty / super specialty treatment.


Procedure to be followed by the ESI beneficiaries to avail Super specialty medical treatment

Insured members and his family including children up to age of 25 years will get medical benefits without any ceiling of medical expenses

Medical treatment of insured person and his family members at the ESIC tied up A-1 grade hospitals of Surat such as Mahavir hospital,Apple hospital,Wack heard hospital,Ashutosh hospital will be free of cost for serious sickness.This benefits will be availed at all over India by using ESIC Card

In case of sickness , insured person will get wages from ESIC office and in case of accidental injury , death,insured person will get monthly pension for life time from ESIC

If insured person met with an accident while coming for employment and/or while going to home after attending job and if dies, in that case his family member will get life time pension.

In case of death of insured person, his dependent will get funeral expenses of Rs.10,000/ by submitting form No.22 to branch office of ESIC

Insured female worker will get expenses of her delivery from ESIC Office and also get her salary for three months.If she develops another sickness during her pregnancy in that case after getting certificate from ESIC , she will get the enhanced amount of benefits

If insured person contributed for 5 years and then retired,he will get ESIC benefits by paying Rs.124 per annum

In case of closure of running establishment, the insured person will get salary up to three years

Factory/establishment is contributing more that the contribution of insured person therefore if any factory is denying the benefits of ESIC, the workers should insist for coverage under the scheme and get the ESIC benefits.


Medical Benefits

ESIC provides reasonable Medical Care for self and family from day one of entering into insurable employment.

Medical benefit means the medical attendance and treatment to the insured persons covered under the Act and their families as and when needed. This is the only benefit provided in kind through the State Governments including Model Hospitals run by ESI Corporation (except in Delhi), and uniformly to all as per their requirement without linking it to their wages and contributions.

Full range of Medical, surgical & obstetric treatment consisting of out-door treatment, in-patient treatment, supply of all drugs and dressings, pathological and radiological investigations, prenatal and post-natal care, super specialty consultation & treatment, ambulance services, provision of artificial appliances etc.

The insured person and his family are entitled to the Medical Benefit from the very first day of his/her joining the insurable employment. A person who is just covered under the scheme for the first time is eligible for primary and secondary medical care for self and family for three months. If he/she continues in insurable employment for three months or more, the benefit is admissible till the beginning of the corresponding benefit period. If the insured person is in ESI coverage for at least 2 years from the date of Online Registration, contributed for not less than 156 days and IP is eligible for Sickness Benefit in any one of the contribution period and is suffering from any of the 34 specified long term diseases, the medical benefit is admissible till the incapacity lasts or up to 730 days during a period of 3 years for self and family.


Sickness Benefit

ESIC provides 70% of average daily wages in cash during medical leave, up to 91 days in two consecutive benefit periods.

If an insured person requires medical treatment and attendance and needs abstention from work on medical grounds, Sickness benefit is paid for the period of abstention duly certified by the Authorized Medical Officer, for a period not exceeding 91 days in two consecutive benefit periods (say one year) @ 70% of standard benefit rate, subject to payment of contribution for not less than 78 days in the corresponding contribution periods.

If an insured person who has completed two years of insurable employment and contributed for not less than 156 days during this period is entitled to extended sickness benefit for a period of 309 days for the 34 specified long term diseases. This period can be extended up to 730 days or till the insured person attains the age of 60 years whichever is earlier. The insured person and his family are also entitled to Medical Benefit during this extended period. The daily rate of extended sickness benefit shall be equal to eighty percent of the standard benefit rate.


Maternity Benefit

ESIC provides 100% of average daily wages in cash up to 26 weeks in confinement and 6 week in case of miscarriage, during maternity leave and 12 weeks for commissioning mother and adopting mother.

Maternity benefit is periodical payment(s) to an insured woman for specified period of abstention from work, due to confinement, miscarriage or sickness arising out of pregnancy, pre-mature birth of child or miscarriage or confinement. The rate of maternity benefit shall be equal to the standard benefit rate. W.e.f.20.1.2017

Confinement Expenses is lump sum payment made to an insured woman or an insured person in respect of his wife if the confinement occurs at a place where necessary facilities under the ESI Scheme are not available. At present the confinement expenses paid is Rs. 5000/- w.e.f. 1.10.2013 per confinement. It is admissible for two confinements only.


Dependants' Benefit

ESIC provides monthly payment apportioned among dependants in case of death due to employment injury.

Dependants' Benefit is a monthly pension payable to the eligible dependants of an insured person who dies as a result of an employment injury or occupational disease. The first benefit payment is made from the Branch Office. Subsequent periodical payments are made through direct bank transfer (DBT) to the beneficiaries.

The rate of dependants' benefit is 90% of standard benefit rate of the wages of the deceased insured person. It is apportioned among the dependants as follows:

1) Widow: Till death or remarriage at 3/5th of the full rate.

2) Widowed mother till death @2/5th of the full rate,

3) To each child @ 2/5th of the full rate each till he attains the age of twenty –five years.

4) Unmarried daughters @2/5th of the full rate till they get married.

5) If the son or daughter is infirm and wholly dependent on the earnings of the insured person at the time of his death, they continue to receive the benefit even after attaining the age of 25 years/ marriage as the case may be. If the total dependants' benefit for all the dependents worked out as above exceeds at any time, the full rate, the share of each of the dependents shall be proportionately reduced, so that the total amount payable to them does not exceed the amount at full rate. In case deceased Insured person does not leave behind any of the dependents referred above, then his parents will get 3/10 share or if no parent is alive then alive his paternal grant parent will get 3/10 share of Full rate of dependent benefit.


Disablement Benefit

ESIC provides continuous monthly payment till injury lasts for temporary disablement and for whole life for permanent disablement.

Disablement is a condition resulting from employment injury, which may render the insured person temporarily incapable of doing his work and necessitating medical treatment (temporary disablement). It may reduce his earning capacity (permanent partial disability) or it may totally deprive the insured person from the capacity of doing any work (permanent total disability).


Employment Injury

It is a personal injury to an employee caused by an accident or occupational disease arising out of and in the course of his insurable employment within or outside territorial limits of India.


Temporary Disablement Benefit

It is a periodical payment to an insured person suffering from Disablement as a result of 'Employment injury' for the period of abstention from work duly certified by an Authorized Medical Officer. This is paid @ 90% of standard benefit rate till the temporary disability lasts and the employee is able to resume his normal duties.


Permanent Disablement Benefit

If there is any residual disability of permanent nature due to employment injury, the insured person is examined by a Medical Board to assess the loss of his earning capacity, if any, and its percentage. The insured person is paid monthly periodical payments of permanent disablement for life from the date following the date of termination of temporary disablement at that percentage out of full daily rate of disablement benefit. Periodical increase in the benefit is also granted due to erosion in the cost of living. The benefit can be paid through ECS in the bank Account of IP or by Money Order at the cost of the Corporation. The insured person can also opt for the payment in lump sum if his daily rate of PDB does not exceed rupees ten or even if it exceeds ten per day, and the commuted value does not exceed Rupees 60000.


BENEFITS AFTER RETIREMENT

An Insured person who superannuates or retires under a voluntary Retirement Scheme or takes premature retirement, after being an insured person for not less than 5 years, shall be eligible to receive medical benefit for himself and his spouse subject to production of proof thereof, and payment of a nominal contribution of rupees one hundred and twenty for one year. In case the insured person expires his spouse shall continue to receive medical benefit under Rule 61 on payment of contribution as mentioned above.


Funeral Expenses

On production of a death certificate by the eldest surviving member/ dependents/any person who actually incurs the expenditure on funeral One time payment defraying expenses on funeral of an Insured person.Maximum Rs.10,000/-only.

If the Insured Person did not have family or was not residing with his family at the time of death, funeral expenses are paid to the person who actually performs the funeral.


Penal Provision

Different punishments have been prescribed for different types of offences in terms of

Section 85 (i) Six months imprisonment and fine Rs. 5,000, and(ii) One year imprisonment and fine,

Section 85-A :(five years imprisonment and not less to 2 years)

Besides these provisions, action also can be taken under section 406 of the IPC in cases where an employer deducts contributions from the wages of his employees but does not pay the same to the corporation which amounts to criminal breach of trust.


THE EMPLOYEES(WORKMEN’S) COMPENSATION ACT,1923

The Employees’ Compensation Act, 1923 is a kind of social security scheme for the employees of this country. It enables an employee, and in case of death of an employee, his dependents, to get, at the cost of his employer compensation for employment injury.


Objectives

The Object of the Act is to provide for the payment of compensation by employers to their employees for injury caused to them by accident while in employment. If an employee contracts an occupational disease while in employment, it is also treated under the Act as injury caused by accident.


Applicability

It applies all employees irrespective of categories of employees


Every Employer is liable to pay compensation under the Act.

Under the Act injuries are broadly classified into four groups as those resulting in:-

Death,

Permanent Total Disablement,

Permanent partial disablement &

Temporary disablement whether total or partial

Contracted occupational diseases.

The Act provides for different scales of compensation for different kinds of injuries.


Conditions for Receiving Compensation

An employee to whom personal injury is caused by accident is entitled to receive compensation under the Act if the accident arise out of and in the course of his employment. That means the accident must occur while the employee is in employment and it must also be connected with his employment.

The employer is not liable to pay compensation for injury to an employee on following circumstances:-

If the injury does not result in total or partial disablement of the employee for a period exceeding three days;

If the injury does not result in death of the employee and is caused by an accident which is directly attributable to:-

If an employee have been at the time thereof under the influence of drink or drugs

The disobedience of the employee to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of workman, or

The willful removal or disregard by the employee of any safety guard or other device which he knew to have been provided for the purpose of securing the safety of employee.


Relevant Factor Schedule IV of Employee Compensation Act

Age is the completed years of age, of the workman or employee on the last birthday. The last birthday is the latest birthday of the workman which is immediately preceding the due date of compensation liability.

Age - Factor

16 - 228.54

17 - 227.49

18 - 226.38

19 - 225.22

20 - 224

21 - 222.71

22 - 221.37

23 - 219.95

24 - 218.47

25 - 216.91

26 - 215.28

27 - 213.57

28 - 211.79

Age - Factor

29 - 209.92

30 - 207.98

31 - 205.95

32 - 203.85

33 - 201.66

34 - 199.4

35 - 197.06

36 - 194.64

37 - 192.14

38 - 189.56

39 - 186.9

40 - 184.17

41 - 181.37

Age - Factor

42 - 178.49

43 - 175.54

44 - 72.52

45 - 169.44

46 - 166.29

47 - 163.07

48 - 159.8

49 - 156.47

50 - 153.09

51 - 149.67

52 - 146.2

53 - 142.68

54 - 139.13

Age - Factor

55 - 135.56

56 - 131.95

57 - 128.33

58 - 124.7

59 - 121.05

60 - 117.417

61 - 113.77

62 - 110.14

63 - 106.52

64 - 102.93

65 or more 99.37


Payment of Gratuity Act, 1972

Applicability

It is applicable to every factory, mine, oil field, plantation, port, railways, company, shop, establishment or educational institutions employing 10 or more persons,

Coverage

All employees irrespective of status of an employee or salary shall be covered under this Act.

Eligibility

Gratuity shall be payable to an employee on separation from employment due to any of the following reasons, after he has rendered continuous service* for not less than five years:


Apprentices Act, 1961


Objective

Applicability

According to Rule 7B(1) ,Establishment having more than 40 employees,the implementation of Apprenticeship scheme is mandatory.As per the provisions of section 8 read with Rule 7-B of the Act,Employer is required to engage apprentices in the preferred trade in the band of 2.5% to 10% of total manpower including contractual.

To incentivize engagement of apprentices by the Establishment/Enterprise,Govt of India has launched “ National Apprentice Promotion Scheme(NAPS) and has decided to reimburse 25% of prescribed stipend subject to maximum of Rs.1500/pm-per apprentice to the Employer.The Govt.of Gujarat has also declared “ Mukhya Mantri Apprentice Yojana” for engagement of Apprentices by the Employer.

Restrictions on deployment of apprentices from outside the state have been removed and Apprentices now allowed to seek apprenticeship in any Unit anywhere in India.


National Apprenticeship Promotion Scheme( NAPS)


Objective

1.Sharing of stipend with Employer to a maximum limit of Rs.1500 per month per Apprentice.

2.Sharing of Basic Training Cost with Basic Training Providers to a maximum limit of Rs.7500/ for 500 hours/3 months per apprentice

Eligibility and Requirements for Employers

1.Employer validation through TIN/TAN and EPFO/ESIC/LIN/Any other identifier decided by Govt

2.Aadhar linked Bank Account


Contract Labour (Regulation & Abolition) Act, 1970


Object of the Act

To regulate the employment of contract labour in certain establishments and to provide for its abolition in certain circumstances and for matters connected therewith.

Applicability

Every establishment in which 10 or more workmen are employed or were employed on any of the preceding 12 months as contract labour – Gujarat state rule

Every contractor who employs or who employed on any day of the preceding twelve months 10 or more workmen.

Registration

Principal employer employing 10 or more workers through the contractor or the contractor(s), needs to register its establishment under the Act, on deposit of required fee in Form1.

License

Prohibition of Employment of Contract Labour

The Appropriate Government through issue of notification after consultation with the Board (and not Courts) can order the prohibition of employment of contract labour.

Welfare facilities to be provided by the Contractor

Contractor shall provide Canteens if applicable,First Aid facilities,Drinking water,Latrines,Washing facilities


The Trade Unions Act 1926 & The Gujarat Trade Unions Regulations,1963


. Salient Features of the Act


Object

Object This Act provides for the registration of trade unions and in certain respects to define the law relating to registered trade unions and procedures and maintenance of returns, etc., by trade unions.

Applicability

It extends to the whole of India.

Registration of Trade Unions The application for registration along with copies of bye-laws and particular of office bearers should be made in Form - A. The fee payable for registration is Rs. 50/- if the members are less than 1000 and Rs.100/- if the members are more than 1000. Minimum number of members required to register a union is '7'. The application is to be made to the Register under the Act. The application is to be made to the concerned Deputy Registrar of Trade Union.

Gujarat Trade Unions Regulations,1963 applies to the whole State of Gujarat.

Short title, extent and commencement.—

(h) “Trade Union” means any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more Trade Unions:

4. Mode of registration.—1[

(1) ] Any seven or more members of a Trade Union may, by subscribing their names to the rules of the Trade Union and by otherwise complying with the provisions of this Act with respect to registration, apply for registration of the Trade Union under this Act: 2[Provided that no Trade Union of workmen shall be registered unless at least ten per cent. or one hundred of the workmen, whichever is less, engaged or employed in the establishment or industry with which it is connected are the members of such Trade Union on the date of making of application for registration: Provided further that no Trade Union of workmen shall be registered unless it has on the date of making application not less than seven persons as its members, who are workmen engaged or employed in the establishment or industry with which it is connected.] 3[(2) Where an application has been made under sub-section (1) for the registration of a Trade Union, such application shall not be deemed to have become invalid merely by reason of the fact that, at any time after the date of the application, but before the registration of the Trade Union, some of the applicants, but not exceeding half of the total number of persons who made the application, have ceased to be members of the Trade Union or have given notice in writing to the Registrar dissociating themselves from the applications.]

5 Application for registration. —

(1) Every application for registration of a Trade Union shall be made to the Registrar, and shall be accompanied by a copy of the rules of the Trade Union and a statement of the following particulars, namely:—

(a) the names, occupations and addresses of the members making the application;

[(aa) in the case of a Trade Union of workmen, the names, occupations and addresses of the place of work of the members of the Trade Union 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 occupations of the 4 [office-bearers] of the Trade Union.

(2) Where a Trade Union has been in existence for more than one year before the making of an application for its registration, there shall be delivered to the Registrar, together with the application, a general statement of the assets and liabilities of the Trade Union prepared in such form and containing such particulars as may be prescribed.

6 Provisions to be contained in the rules of a Trade Union. —A Trade Union shall not be entitled to registration under this Act, unless the executive thereof is constituted in accordance with the provisions of this Act, and the rules thereof provide for the following matters, namely:—

(a) the name of the Trade Union;

(b) the whole of the objects for which the Trade Union has been established;

(c) the whole of the purposes for which the general funds of the Trade Union shall be applicable, all of which purposes shall be purposes to which such funds are lawfully applicable under this Act;

(d) the maintenance of a list of the members of the Trade Union and adequate facilities for the inspection thereof by the 11 [office-bearers] and members of Trade Union;

(e) the admission of ordinary members who shall be persons actually engaged or employed in an industry with which the Trade Union is connected, and also the admission of the number of honorary or temporary members as 11 [office-bearers] required under section 22 to form the executive of the Trade Union;

[(ee) the payment of a minimum subscription by members of the Trade Union which shall not be less than—

(i) one rupee per annum for rural workers;

(ii) three rupees per annum for workers in other unorganised sectors; and

(iii) twelve rupees per annum for workers in any other case;]

(f) the conditions under which any member shall be entitled to any benefit assured by the rules and under which any fine or forfeiture may be imposed on the members;

(g) the manner in which the rules shall be amended, varied or rescinded;

(h) the manner in which the members of the executive and the other 11 [office-bearers] of the Trade Union shall be 13 [elected] and removed;

[(hh) the duration of period being not more than three years, for which the members of the executive and other office-bearers of the Trade Union shall be elected;]

(i) the safe custody of the funds of the Trade Union, an 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 11 [office-bearers] and members of the Trade Union; and

(j) the manner in which the Trade Union may be dissolved.

8. 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 register, to be maintained in such form as may be prescribed, the particulars relating to the Trade Union contained in the statement accompanying the application for registration.

9. Certificate of registration.—The Registrar, on registering a Trade Union under section 8, shall issue a certificate of registration in the prescribed form which shall be conclusive evidence that the Trade Union has been duly registered under this Act.

[9A. Minimum requirement about membership of a Trade Union.—A registered Trade Union of workmen shall at all times continue to have not less than ten per cent. or one hundred of the workmen, whichever is less, subject to a minimum of seven, engaged or employed in an establishment or industry with which it is connected, as its members.]

10 Cancellation of registration. —A certificate of registration of a Trade Union may be withdrawn or cancelled by the Registrar—

(a) on the application of the Trade Union to be verified in such manner as may be prescribed;

(b) if the Registrar is satisfied that the certificate has been obtained by fraud or mistake, or that the Trade Union has ceased to exist or has wilfully and after notice from the Registrar contravened any provision of this Act or allowed any rule to continue in force which is inconsistent with any such provision, or has rescinded any rule providing for any matter provision for which is required by section 6;

[(c) if the Registrar is satisfied that a registered Trade Union of workmen ceases to have the requisite number of members:]

Provided that not less than two months' previous notice in writing specifying the ground on which it is proposed to withdraw or cancel the certificate shall be given by the Registrar to the Trade Union before the certificate is withdrawn or cancelled otherwise than on the application of the Trade Union. State Amendment Section 10A

12. Registered office.—All communications and notices to a registered Trade Union may be addressed to its registered office. Notice of any change in the address of the head office shall be given within fourteen days of such change to the Registrar in writing, and the changed address shall be recorded in the register referred to in section 8.

13 Incorporation of registered Trade Unions. —Every registered Trade Union shall be a body corporate by the name under which it is registered, and shall have perpetual succession and a common seal with power to acquire and hold both movable and immovable property and to contract, and shall by the said name sue and be sued.

31 [ 21A Disqualifications of office-bearers of Trade Unions. —

(1) A person shall be disqualified for being chosen as, and for being, a member of the executive or any other office-bearer of a registered Trade Union if—

(i) he has not attained the age of eighteen years;

(ii) he has been convicted by a Court in India of any offence involving moral turpitude and sentenced to imprisonment, unless a period of five years has elapsed since his release.

(2) Any member of the executive or other office-bearer of a registered Trade Union who, before the commencement of the Indian Trade Unions (Amendment) Act, 1964, has been convicted of any offence involving moral turpitude and sentenced to imprisonment, shall on the date of such commencement cease to be such member or office-bearer unless a period of five years has elapsed since his release before that date.]

[(3) In its application to the State of Jammu and Kashmir, reference in sub-section (2) to the commencement of the Indian Trade Unions (Amendment) Act, 1964 (38 of 1964), shall be construed as reference to the commencement of this Act in the said State.]

[22. Proportion of office-bearers to be connected with the industry.—

(1) Not less than one-half of the total number of the office-bearers of every registered Trade Union in an unrecognised sector shall be persons actually engaged or employed in an industry with which the Trade Union is connected: Provided that the appropriate Government may, by special or general order, declare that the provisions of this section shall not apply to any Trade Union or class of Trade Unions specified in the order. Explanation.—For the purposes of this section, “unorganised sector” means any sector which the appropriate Government may, by notification in the Official Gazette, specify.

(2) Save as otherwise provided in sub-section (1), all office-bearers of a registered Trade Union, except not more than one-third of the total number of the office-bearers or five, whichever is less, shall be persons acutally engaged or employed in the establishment or industry with which the Trade Union is connected. Explanation.—For the purposes of this sub-section, an employee who has retired or has been retrenched shall not be construed as outsider for the purpose of holding an office in a Trade Union.

(3) No member of the Council of Ministers or a person holding an office of profit (not being an engagement or employment in an establishment or industry with which the Trade Union is connected), in the Union or a State, shall be a member of the executive or other office-bearer of a registered Trade Union.]

23 Change of name. —Any registered Trade Union may, with the consent of not less than two-thirds of the total number of its members and subject to the provisions of section 25, change its name.

24. Amalgamation of Trade Unions.—Any two or more registered Trade Unions may become amalgamated together as one Trade Union with or without dissolution or division of the funds of such Trade Unions or either or any of them, provided that the votes of at least one-half of the members of each or every such Trade Union entitled to vote are recorded, and that at least sixty per cent. of the votes recorded are in favour of the proposal.

25. Notice of change of name or amalgamation.—

(1) Notice in writing of every change of name and of every amalgamation signed, in the case of a change of name, by the Secretary and by seven members of the Trade Union changing its name, and in the case of an amalgamation, by the Secretary and by seven members of each and every Trade Union which is a party thereto, shall be sent to the Registrar and where the head office of the amalgamated Trade Union is situated in a different State, to the Registrar of such State.

(2) If the proposed name is identical with that by which any other existing Trade Union has been registered or, in the opinion of the Registrar, so nearly resembles such name as to be likely to deceive the public or the members of either Trade Union, the Registrar shall refuse to register the change of name.

(3) Save as provided in sub-section (2), the Registrar shall, if he is satisfied that the provisions of this Act in respect of change of name have been complied with, register the change of name in the register referred to in section 8, and the change of name shall have effect from the date of such registration.

(4) The Registrar of the State in which the head office of the amalgamated Trade Union is situated shall, if he is satisfied that the provisions of this Act in respect of amalgamation have been complied with and that the Trade Union formed thereby is entitled to registration under section 6, register the Trade Union in the manner provided in section 8, and the amalgamation shall have effect from the date of such registration.

26. Effects of change of name and of amalgamation.—

(1) The change in the name of a registered Trade Union shall not affect any rights or obligations of the Trade Union or render defective any legal proceeding by or against the Trade Union, and any legal proceeding which might have been continued or commenced by or against it by its former name may be continued or commenced by or against it by its new name.

(2) An amalgamation of two or more registered Trade Unions shall not prejudice any right of any of such Trade Unions or any right of a creditor of any of them.

27. Dissolution.—

(1) When a registered Trade Union is dissolved, notice of the dissolution signed by seven members and by the Secretary of the Trade Union shall, within fourteen days of the dissolution be sent to the Registrar, and shall be registered by him if he is satisfied that the dissolution has been effected in accordance with the rules of the Trade Union, and the dissolution shall have effect from the date of such registration.

(2) Where the dissolution of a registered Trade Union has been registered and the rules of the Trade Union do not provide for the distribution of funds of the Trade Union on dissolution, the Registrar shall divide the funds amongst the members in such manner as may be prescribed.

28 Returns. —

(1) There shall be sent annually to the Registrar, on or before such date as may be prescribed, a general statement, audited in the prescribed manner, of all receipts and expenditure of every registered Trade Union during the year ending on the 31st day of 34 [December] next preceding such prescribed date, and of the assets and liabilities of the Trade Union existing on such 31st day of 34 [December]. The statement shall be prepared in such form and shall comprise such particulars as may be prescribed.

(2) Together with the general statement there shall be sent to the Registrar a statement showing changes of 35 [office-bearers] made by the Trade Union during the year to which the general statement refers, together also with a copy of the rules of the Trade Union corrected up to the date of the despatch thereof to the Registrar.

(3) A copy of every alteration made in the rules of a registered Trade Union shall be sent to the Registrar within fifteen days of the making of the alteration.

(3) A copy of every alteration made in the rules of a registered Trade Union shall be sent to the Registrar within fifteen days of the making of the alteration.

Maharashtra —After section 28, insert the following section, namely:— “28-1A. Power of Industrial Court to decide certain disputes. —(1) Where there is a dispute as respects whether or not any person is an office-bearer or a member of a registered Trade Union (including any dispute relating to wrongful expulsion of any such office-bearer or member), or where there is any dispute relating to the property (including the account books) of any registered Trade Union, any member of such registered Trade Union for a period of not less than six months may, with the consent of the Registrar, and in such manner as may be prescribed, refer the dispute to the Industrial Court constituted under the Bombay Industrial Relations Act, 1946, for decision.

(2) The Industrial Court shall, after hearing the parties to the dispute, decide the dispute; and may require an office-bearer or member of the Registered Trade Union to be appointed whether by election or otherwise under the supervision of such person as the Industrial Court may appoint in this behalf or removed, in accordance with the rules of the Trade Union: Provided that the Industrial Court may, pending the decision of the dispute, make an interim order specifying or appointing any person or appointing a Committee of Administration for any purpose under the Act including the purpose of taking possession or control of the property in dispute and managing it for the purposes of the Union pending the decision.

(3) The decision of the Industrial Court shall be final and binding on the parties and shall not be called in question in any Civil Court.

(4) No Civil Court shall entertain any suit or other proceedings in relation to the dispute referred to the Industrial Court as aforesaid, and if any suit or proceeding is pending in any such Court, the Civil Court shall, on receipt of an intimation from the Industrial Court that it is seized of the question, cease to exercise jurisdiction in respect thereof.

(5) Save as aforesaid, the Industrial Court may, in deciding disputes under this section, exercise the same powers and follow the same procedure as it exercises or follows for the purpose of deciding industrial disputes under the Bombay Industrial Relations Act, 1946.” [ Vide Maharashtra Act 3 of 1968, sec. 3 (w.e.f. 1-10-1968 ).] Chapter IIIA Madhya Pradesh. —After Chapter III, insert the following new Chapter, namely:— “Chapter IIIA Approved Unions

28A. Maintenance of list of approved unions .—It shall be the duty of the Registrar to maintain in such form as may be prescribed a list of approved unions.

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