Labour Laws , wages laws and other compliances in various acts in India..

1. An overview
On
Industrial Relations
COMPLIANCES UNDER LABOUR LAW
Presented By:
Mahipal Negi

2. Glimpses
on

3. Compliance
of Labour
Laws
Registering &
Licensing of
New and
Existing
Display Of
Abstract and
Notices
Statutory
Challans and
Remittances
Maintaining
Statutory
Registers and
Records
Timely Filling
of Statutory
Returns
Statutory
Obligations
&
Responsibilities
Audit of
Contractor
/Vendor
Compliances
In a Nutshell

4. Factories Act,
1948
Contract Labour
[Regulation &
Abolition ] Act,
1970
Industrial
Dispute Act,
1947
Industrial Acts

5.  OBJECTIVE OF THE ACT
The Act has been enacted primarily with the object of
protecting workers employed in factories against industrial
and occupational hazards
 HOW to achieve Objective ???
 For that purpose, it seeks to impose upon the owner
or the occupier certain obligations to protect the
workers and to secure for them employment in
conditions conductive to
Their
health, safety and Welfare
FACTORY ACT, 1948

6. APPLICABILITY OF THE ACT
At any place wherein
manufacturing process is
carried on
whereon 10 or more workers are working or
were working on any day of preceding 12
months, and in any part of which a
manufacturing process is being carried on with
the aid of power or is ordinarily so carried on;
whereon 20 or more workers are working or
were working on any day of preceding 12 months,
and in any part of which a manufacturing process
is being carried on without the aid of power or is
ordinarily so carried on.

7.  Health
 Safety
 Welfare
 Working Hours Of Adults
 Annual Leave With wages
Main points

8. Health, Safety and Welfare
 Every occupier shall ensure, so far as is reasonably
practicable, the health, safety and welfare of all workers
while they are at work in the factory.
 the provision and maintenance of plant and systems of
work in the factory that are safe and without risks to health
 ensuring safety and absence of risks to health in
connection with the use, handling, storage and transport of
articles and substances
 information, instruction, training and supervisions as
are necessary to ensure the health and safety of all
workers at work
 the maintenance work place condition that is safe and
without risks to health
 the provision, maintenance or monitoring of such
working environment in the factory for the workers that is
safe, without risks to health and adequate as regards
facilities and arrangements for their welfare at work.

9.  Daily hours (sec. 54) : not more than 9 hours in day.
 Weekly hours (sec. 51) : 48 hours in a week.
 Weekly holidays (sec. 52) : No adult worker shall be
required or allowed to work in a factory on the first day
of the week.
 Compensatory holidays (sec. 53) : within the
month in which the holidays were due to him or
within the two months immediately following that
month, compensatory holidays of equal number to
the holidays so lost.
 Intervals for rest (sec. 55) : ½ an hour after working of
5 hours , but state govt. in special circumstances on
written application can allow continue working not more
than 6 hours.
Working Hours
Of Adults
A worker having worked for 240 days @ one day for every 20
days and for child one day for working of 15 days.
Accumulation of leave for 30 days
Annual Leave With wages

10. CONTRACT LABOUR (REGULARATION
& ABOLITION) ACT, 1970 & THE RULES
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.

11. Applicability
(Sec 1)
 Every establishment in which 20 or more
workmen are employed or were
employed on any day of the preceding 12
months as contract labor.
 Every contractor who employs or who
employed on any day of the preceding
twelve months 20 or more workmen.

12. Major Compliances
 It is obligatory on every “contractor”
not to undertake or execute any work
through contract work without
obtaining a valid license from the
licensing officer
 “Principal Employer” has the
statutory
responsibility on behalf of company to
ensure compliances under Contract Labour
(Regulation &Abolition) Act, 1970 and Rules
framed there under.

13. Compliance to be ensured by
the contractor under
The Contract Labour (Regulation And Abolition) Act,
1970
 Apply in Form-IV [see rule 21] for license in triplicate copy
along
with license fee [see rule 26] & security [see rule 24]
(Refundable)
 Application should encloses Form-V which is given by
Principal
employer to contractor.
 Grant/renewal of license in Form-VI [rule 23&25/29]
 After obtaining a License the contractor should submit a
copy
to P.E.
 Intimation of Commencement/Completion of Contract Work

14. OBLIGATION OF
CONTRACTOR
 Application for License Form-IV
 License Form-VI
 Notice of Commencement /Completion Form VI A of Work (within
15 days of actual commencement or completion of work)
 Renewal of license Form VII
 Identity Card Form X
 Display of Act and Rules under rule 60
 Muster Roll, Register of Wages, Registers of Overtime,
Advances, Deduction, Fines to be maintained by the Contract
under the Payment of Wages Act and Rules made thereunder or
the Minimum Wages Act and Rules made thereunder if covered
under those Act.
Otherwise contractor has to maintain
Muster-cum-wage register, attendance-cum-wage slip
under the payment of Wages Rules, 1963

15. CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970
 Sec 29: Maintenance of registers and other
records
 To maintain register of workers for each
registered establishment in Form XIII.
 To issue an employment card to each worker
in Form XIV.
 To issue service certificate to every workman
on his termination in Form XV. Rules 75, 76 and 77
 Form-VIII - At All times a register of particulars
of contract labour and other records in Form-
VIII [see rule 55] as prescribed
 Form-XXI [rule 63(2)] : Half / Annual return
before 15th of July and February respectively

16. Muster Roll, Wages Register, Deduction Register and
Overtime Register by Contractor
 Every contractor shall • Maintain Muster Roll and a Register of Wages in Form XVI and
Form XVII respectively when combined.
 Register or wage-cum-Muster Roll in Form XVII where the wage period is a fortnight or
less.
 Maintain a Register of Deductions for damage or loss, Register or Fines and Register of
Avances in Form XX, from XXI and Form XXII respectively.
 Maintain a Register of Overtime in Form XXIII.
 To issue wage slips in Form XIX, to the workmen at least a day prior to the disbursement
of wages.
 Obtain the signature or thumb impression of the worker concerned against the entries
relating to him on the Register of wages or Muster Roll-Cum-Wages Register.
 When covered by Payment of Wages Act, register and records to be maintained under
the rules
 Muster Roll, Register of wages, Register of Deductions, Register of Overtime, Register of
 Fines, Register of Advances, Wage slip. Rule 79
 To display an abstract of the act and Rules in English and Hindi and in the language
spoken by the Majority of workers in such forms as may be approved by appropriate
authority Rule 80
 To display notices showing rates of wages, hours of work, wage period, dates of
payment, names and addresses of the inspector and to send copy to the inspector and
any change for with with Rule 81

17. Minimum
Wages
Act,1948
Payment of
wages Act,
1936
Payment of
Bonus Act,
1965 & the
Rules
Wages Acts

18. MINIMUM WAGES ACT, 1948
OBJECTIVE
 To provide minimum wages to the workers
working in organized sector
 To stop exploitation of the workers
 To empower the government to take steps for
fixing minimum wages and to revising it in a
timely manner
 To apply this law on most of the sections
in organized sector (scheduled

19. Appropriate government :
sec. 2(b)
 In relation to scheduled employment
carried on by Central Government or
railways or est. under Central Act -
the Central Government
 In all other cases – the State
Government

20. Wages: sec.2(h)
 Minimum wages: all remuneration
capable of being paid in money terms
for work done if terms of contract were
fulfilled
 Consist of Basic + Dearness Allowance
+ House Rent Allowance
 Every 5 years, basic rates of every
industry are decided by Minimum Wages
Committee
 Dearness Allowance changes every six

21. Records to be maintained:
[sec. 18]
 The Registers should contain the
following particulars-
(i) particulars of employed persons
(ii) the work performed by them
(iii) the wages paid to them
(iv) the receipts given by them

22. Payment of Wages Act, 1936
OBJECTIVE
 To regulate the payment of wages of certain
classes of employed person
Applicability
 It applies in the first instance to the payment of
wages to persons employed in any factory and
to persons employed in an industrial or other
establishment specified

23. COMPLIANCES UNDER PAYMENT OF WAGES ACT, 1936
 Sec 4 Fixation of wage-periods: wage periods
shall not exceeding one month.
 Sec13-A: Maintenance of registers and records
Details of persons employed, the work performed, wages paid
as prescribed and has not destroyed the same before a period
of three years after the date of last entry made therein.
 Bills of the contractor to be passed on the basis
of these records maintained and submitted to
respective department.

24. Time of payment of
wages
Sec. 5
When less than 1000 persons
are employed
shall be paid before the expiry
of the 7th day
of the following month.
When more than 1000 workers,
before the
expiry of the 10th day of the
following
month.

25. RESPONSIBILITY FOR PAYMENT OF WAGES
Under Section-12 of Contract Labour
(Regulation And Abolition) Act, 1970
 A contractor shall be responsible for payment of wages to each worker
employed by him as contract labour and such wages shall be paid before the
expiry of such period as may be prescribed.
 Every principal employer shall nominate a representative duly authorized
by him to be present at the time of disbursement of wages by the contractor and it shall be the duty of
such representative to certify the amounts paid as wages in such manner as may be prescribed.
 It shall be the duty of the contractor to ensure the disbursement of wages in
the presence of the authorized representative of the principal employer.
 In case the contractor fails to make payment of wages within the prescribed
period or makes short payment, then the principal employer shall be liable to
make payment of wages in full or the unpaid balance due, as the case may be, to
the contract labour employed by the contractor and recover the amount so paid
from the contractor either by deduction from any amount payable to the
contractor under any contract or as a debt payable by the contractor.

26. Social Security in India
Article 43 of the Constitution speaks of
“state's responsibility to provide social security
to the citizens of this country”
Principal Social Security Laws of India
Employees’ Provident Fund and Miscellaneous
Provisions Act, 1952
Employees’ State Insurance Act, 1948
Workmen’s Compensation Act, 1923
Maternity Benefit Act, 1961
Payment Gratuity Act, 1972

27. Employees’ Provident Fund and
Miscellaneous Provisions Act,
1952
 The Act aims at providing social
security and timely monetary
assistance to industrial employees
and their families when they are in
distress and/or unable to meet family
and social obligations and to protect
them in old age, disablement, early
death of the bread winner and in some
other contingencies.

28. Employees’ Provident Fund and
Miscellaneous Provisions Act, 1952
EMPLOYEES’ PROVIDENT FUND
SCHEME
EMPLOYEES’ PENSION SCHEME
EMPLOYEES’ DEPOSIT LINKED
INSURANCE SCHEME
EDLI
EPF
EPS

29. Rates of Contribution
SCHEME EMPLOYEE’S EMPLOYER’S CENTRAL
GOVT’S
Provident Fund
Scheme
12% 3.67% NIL
Insurance
Scheme EDLI
NIL 0.5% NIL
Pension Scheme NIL 8.33% of Max.
of Rs. 15000/-
1.16%
Additional 0.85 % as Administrative Charges by the
Employer

30. Account codes for PF (Employer -
12% & employee – 13.36 %)
 Entries in revenue ledger
Project accountants are requested to pls. reconcile
the PF entries at least once in 3 months
Account
Code Account descp %age
71161 EPF Employee contribution - S/c workmen 12
76570 EPF Employer contribution - S/c workmen 3.67
76589 EPS Employer contribution - S/c workmen 8.33
78425 EDLI Fund 0.5
78530 PF / Admn. Charges 0.85
78549 DLIF Admin charges 0.01
Total : 25.36
76597 PF/EPS recovered from s/c workmen (credit) 12 or 25.36

31. Payment of Contribution
 The employer shall pay the contribution
payable to the EPF, and Employees’
Pension Fund in respect of the Member
of the Employees’ Pension Fund
employed by him directly by or through a
contractor.

32. PF Compliance
 Ensure the compliance of 36-B of The Employees’ Provident Fund
Scheme, 1952.
 36-B. Duties of contractors
 Every contractor shall, within 7 days of the close of every month,
submit o the principal employer a statement showing the recoveries of
contributions in respect of employees employed by or through him along
with the copy of challan.
 EPFO had Launched an online application for receipt of
Electronic Challan cum Return (ECR)
 EPFO has made it mandatory to submit online return and
challanusing e-sewa and eReturn
 ECR and Online Challan will be accepted as a proof of
submission of contribution by contractors for contract workers
employed by him

33. Role & Responsibility of
Contractor
Monthly Returns- Online Filing monthly PF returns with the EPFO
within
15 days of the close of each month, Submit a copy of ECR and Online challan with
Bill
1. Provide list of new employees joined in the establishment during the
preceding month & are qualified to become member in fund (Form-5)
2. Provide list of employees leaving service during the preceding month
(Form-10)
3. Employer should file 'Nil' returns if there is no new employee or no
employee leaving the service during the preceding month
4. Provide the total no. of members last month, new members joined
and
existing members resigned in the preceding month & total no. of
present
subscribers to be fund (Form-12A)

34. Employees’
State Insurance Act, 1948
Coverage of shops and other
establishments from 20 to 10 or more
persons. Remaining State
Governments/UTs are in the process of
reducing the same.
Extension of ESI scheme to Construction
site workers
(Notification No. P-12, 11/11/60/2010 – Rev II;

35. ESI Scheme
All employees to insured under the ESI
Scheme and provisions ofthe Employees'
State Insurance Act, 1948
Contribution & Benefit Period …
Employees’ Contribution – 1.75% of the
Wages
Employers’ Contribution – 4.75% of the
Wages
Contribution towards the scheme on a

36. Employees – Benefits under
Employees’ State Insurance Corporation
 Under ESI Scheme, the comprehensive
and need based
 package of Social Security Benefits in Cash
and kind
 include the following:
1) Medical Benefit
2) Sickness Benefit
3) Maternity Benefit
4) Disablement Benefit
5) Dependent Benefit
6) Funeral Benefit ( Upto Rs.10000/-)

37. WHO IS RESPONSIBLE FOR
INDUSTRIAL RELATIONS ?

38. Workmen Compensation claims ->
Fatal accidents (Documents
required)
 Information to Cluster/HQ/clients/ Police /
WCC
 FIR / Post mortem report
 National Insurance Claim Form
 Death Certificate / Age Proof certificate
 Accident report / Attendance card
 Disbursement of NIC form “A” voucher
through W C Commissioner

39. DOCUMENTS REQUIRED FOR
SETTLEMENT
 TEMPORARY
DISABLEMENT
 Claim form
 Accident report
 Medical certificate
 Fitness certificate
 PERMANENT
PARTIAL
DISABLMENT
 Claim form
 Accident report
 Medical Certificate
 Fitness Certificate
 % of disability
Certificate
 Age Proof
 Attendance Card

40. What happens in the event of
Non-Compliance?
Fines
Penalties
Lawsuit
Loss of credibility
Loss of contract
Show cause notice to Directors /
CMD
Closure of business
Future business

41. LATEST NOTIFICATION(S) ……
 Extension of ESI scheme to Construction site workers
(Notification No. P-12, 11/11/60/2010 – Rev II; dated. 31/07/2015) w.e.f 1st
August 2015.
Cost impact for jobs : 4.75% of subcontractor gross wages per month
 UAN number activation (Regional PFC notification no. R-I/P-
20/UAN/2014/104/18763 dated. 3rd March 2015) Mobile nos. of workmen
is a must
 Reduction of Admin charges from 1.10 % to 0.85% w.e.f 1st Jan2015
(Notification dated. 2nd Feb2015)
 EDLI assurance benefit increased from 1,30,000/- to 3,60,000/- w.e.f 1st
Sept2014
 Gazette notification on enhancement of statutory wage ceiling to Rs.
15,000/- from existing Rs. 6,500/- , fixing min. pension of Rs. 1000/- per

42. Thank You !