Download - A Presentation on Labour Laws Compliances
An overview On Industrial Relations
COMPLIANCES UNDER LABOUR LAW
Presented By: Mahipal Negi
Industrial / factory Acts
Wages Acts
Social Security Acts in India
Audit Observations
Latest Notifications(s)
Glimpseson
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
Factories Act, 1948
Contract Labour
[Regulation & Abolition ] Act, 1970
Industrial Dispute Act,
1947
Industrial Acts
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
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.
Health Safety Welfare Working Hours Of AdultsAnnual Leave With wages
Main points
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.
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
CONTRACT LABOUR (REGULARATION & ABOLITION)
ACT, 1970 & THE RULES
Object of the ActTo regulate the employment of
contract labour in certain establishments and to provide for its abolition in certain circumstances and for matters connected therewith.
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.
Major CompliancesIt 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 statutoryresponsibility on behalf of company to ensure compliances under Contract Labour (Regulation &Abolition) Act, 1970 and Rules framed there under.
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 Principalemployer to contractor.
Grant/renewal of license in Form-VI [rule 23&25/29]
After obtaining a License the contractor should submit a copyto P.E.
Intimation of Commencement/Completion of Contract Workin Form-VI-A by Contractor [see rule 25(2)-viii]
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
CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970Sec 29: Maintenance of registers and other
recordsTo 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 77Form-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
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
Minimum Wages
Act,1948
Payment of wages Act,
1936Payment of Bonus Act, 1965 & the
Rules
Wages Acts
MINIMUM WAGES ACT, 1948
OBJECTIVETo 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 employment)
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
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 months and is decided by Government
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
Payment of Wages Act, 1936
OBJECTIVETo regulate the payment of wages of
certain classes of employed person
ApplicabilityIt 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
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.
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 theexpiry of the 10th day of the
followingmonth.
RESPONSIBILITY FOR PAYMENT OF WAGESUnder Section-12 of Contract Labour (Regulation And Abolition) Act, 1970
A contractor shall be responsible for payment of wages to each workeremployed by him as contract labour and such wages shall be paid before theexpiry 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 inthe presence of the authorized representative of the principal employer.
In case the contractor fails to make payment of wages within the prescribedperiod 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.
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
Employees’ Provident Fund andMiscellaneous 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.
Employees’ Provident Fund andMiscellaneous Provisions Act, 1952
EMPLOYEES’ PROVIDENT FUND SCHEME
EMPLOYEES’ PENSION SCHEME
EMPLOYEES’ DEPOSIT LINKED INSURANCE SCHEMEEDLI
EPF
EPS
Rates of ContributionSCHEME EMPLOYEE’S EMPLOYER’S CENTRAL
GOVT’S
Provident FundScheme
12% 3.67% NIL
InsuranceScheme EDLI
NIL 0.5% NIL
Pension Scheme NIL 8.33% of Max.of Rs. 15000/-
1.16%
Additional 0.85 % as Administrative Charges by theEmployer
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 1276570 EPF Employer contribution - S/c workmen 3.6776589 EPS Employer contribution - S/c workmen 8.3378425 EDLI Fund 0.578530 PF / Admn. Charges 0.8578549 DLIF Admin charges 0.01
Total : 25.36
76597 PF/EPS recovered from s/c workmen (credit) 12 or 25.36
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.
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
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)
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; dated. 31/07/2015) w.e.f 1st August 2015.
ESI Scheme
All employees to insured under the ESI Scheme and provisions ofthe Employees' State Insurance Act, 1948Contribution & Benefit Period …Employees’ Contribution – 1.75% of the WagesEmployers’ Contribution – 4.75% of the Wages
Contribution towards the scheme on a monthly basis.
Employees – Benefits underEmployees’ 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 Benefit2) Sickness Benefit3) Maternity Benefit4) Disablement Benefit5) Dependent Benefit6) Funeral Benefit ( Upto Rs.10000/-)
WHO IS RESPONSIBLE FOR INDUSTRIAL RELATIONS ?
Workmen Compensation claims -> Fatal accidents (Documents required)Information to Cluster/HQ/clients/
Police / WCCFIR / Post mortem report National Insurance Claim FormDeath Certificate / Age Proof
certificateAccident report / Attendance cardDisbursement of NIC form “A”
voucher through W C Commissioner
DOCUMENTS REQUIRED FOR SETTLEMENT
TEMPORARY DISABLEMENT
Claim formAccident reportMedical
certificateFitness
certificate
PERMANENT PARTIAL DISABLMENT
Claim formAccident reportMedical
CertificateFitness Certificate% of disability
CertificateAge ProofAttendance Card
What happens in the event ofNon-Compliance?
Fines Penalties Lawsuit Loss of credibility Loss of contract Show cause notice to Directors / CMD Closure of business Future business
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 month and 20% additional relief on the amount of assurance benefit under EDLI Scheme, 1976 (Notification no. 13637 ; dated. 28th Aug2015)
Thank You !