h.r. manual & compliance summary by sahdeo singh

HUMAN RESOURCE & COMPLIANCE SUMMAY BY S.D.SINGH

Sutlej-S.D.Singh/H.R. Doc./2012

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H.R. Policy Summary: ―Human Resource manual is tin attempt to bring transparency in all that touches our daily life at our work place and thus help us synchronize what is expected to us. With what we expect of the system‖ ― H R Manual is the first building block of this journey and will be followed by the finance manual : the commercial manual and the operations manual respectively.‖ Objective of HR Policy manual:

Continuity and consistency of service.

Better communication, internal and external in the group.

Enhancing orientation and focus.

Mentoring references.

Improvement of in house customer service on time. Corporate Philosophy 1. Managerial Ethics: : are based integrity and commitment towards achieving organizational goals,

our code of ethics in enshrined in the values of good humanity and governance. 2. Leadership: will encourage and foster leadership with a vision to focus on leveraging opportunities

and meeting challenge. 3. Customer satisfaction: we are committed to benchmark our success with customer satisfaction by

attaining, delivering and maintaining the highest standards of quality and cost effective service and products.

4. Employee engagement 5. Communication 6. Passion of excellence 7. Concern for environment 8. Entrepreneurship 9. Group synergy Our Culture: We believe in TTE and these three words define our commitment to both our internal and external customer. T – Transparency T- Trust E- Entrepreneurship HR Mission: Our mission is to support our corporate leadership, department heads and employees in the achieving their personal and strategic goals. We intend to achieve this by attaining, recruiting, training, developing and retaining high caliber staff and constantly revitalizing the employees at sutlej group through benchmark policy and practices.

“Management works in the system, leadership works on the system”



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Our HR strategy is encompassed by: R E S P E C T Reliability: You can count on us Excellence: Is our standard Service: Customer is first, exceed meeting his needs. People: Serve people with fairness and firmness. Empowerment: Enabling each to attain his/her potential. Caring: Care for all as we wish to be care for. Team work: Foster a spirit of team work. Safety: The objective of safety policy is to promote safety and better working culture & conditions and to make ― Safety a way of life in the organization‖ Manpower Plan: “Heads of division /department are required to conduct a thorough review of the operations, structure and manpower of their division/departments each year, and furnish recommendations of manpower plan for the following financial year to the human resource department.” The human resources department is responsible for reviewing the recommendations and compiling a corporate manpower plan for the financial year. The manpower plan sets out the number of posts by level and by division/development.

“Begin with the end in mind”



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HUMAN RESOURCE MANAGEMENT:

Departmental Plan: CSB

* Mission * Strategic Direction

* Program Plans

* Performance Measures * Central Functions

* Financial Summary

* Efficiency Plan

HRM Plan

HUMAN RESOURCE MANAGEMENT PLAN

Manpower Planning

Recruitment

Performance Management

Training & Development

Staff Relations

* Succession

Planning

* Appointment

Motivation

* Training

* Securing Staff

Commitment * Performance Appraisal

* Selection Procedure

* Resolving

Disputes

* Turn over

* Promotion * Addressing Grievances

* Probation

* Guidance and

supervision *

Development

* Addressing Poor

Performance * Welfare

Management Information System

Prepared By: Sahdeo Singh

25.07.2012



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H.R. Aims: ―Human resource management a planned approach to managing people effectively for performance. It aims to establish a more open, flexible and caring management style so that staff will be motivated, developed and managed in a way that they can and will give of their best to support developments missions.‖ Plans should provide answers to there fundamental questions:

What staff will be need, and how are we going to acquire and retain the number and quality of people required to meet the fore cast needs to the department?

How are we going to ensure that we have a well motivated workforce?

What options will be needed to train, develop and fit people for greater responsibility and responsiveness to change and the resulting demands for different skills and abilities?

“Faith is to believe what we do not see! The reward of faith is to see what we believe” As a general guideline the most desirable traits that all employers love to see their employees are:-

Intelligence…..Management…‖Savvy‖

Honesty….Integrity…a decent human being.

Good fit with corporate culture…some one to feel comfortable with a team player.

Likeability …positive attitude….sense of humor…good communication skill.

Dedication…..willingness to walk the extra mile to achieve excellence.

Definiteness of purpose…..clears goals.

Enthusiasm……High level of motivation.

Confident……Healthy…..a leader. ********

―Every human has four endowments- self awareness, conscience, independent will and creative

imagination. These give us the ultimate human freedom. The power to choose, to respond to change.”



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Disciplinary action and dismissal policy:

The purpose of this policy provide departmental employees and managers a fair , clean and useful tool for correcting performance problems as well as to provide a process to assist management in handling cases of unacceptable personal conduct. Policy: The department of administration provides that any disciplinary action taken in accordance with this policy must be for just cause under one of the two following categories:-

Unsatisfactory job performance, including gross efficiency .

Unacceptable personal conduct. Types of disciplinary action: 1. written warning 2. Disciplinary suspension without pay 3. Demotion 4. Dismissal In compliance with the provision of the performance management system , the supervisor shall provide appropriate support to review and encourage satisfactory job . performance by employees within the work unit the supervisor shall intervene fairly and timely to address incidents and cases of ― Grossly efficient job performance / unacceptable personal conduct and unsatisfactory job performance.‖ H.R. ―The human resources office can support you in developing best practices to proactively avoid (or at least minimize) the need to address employee issues and or / concerns with that said there times when questions and or / concern arise and referencing other resources is helpful.

Letter of Expectation ( Goal) L.O.E.

Letter of expectations putting concerns / or in writing for an employee is a very useful tool in addressing job performance and behavior concerns , for most employees getting something in writing feels very serious : some may need time to digest the information , others may become angry or react defensively . It is important to draft LOE in first person and write the LOE in a positive, supportive manner. List what the expectations are and specify how the employee can meet them.

Individual development plan::- I.D.P. It is a tool used to address specific job performance concerns and is never used to address behavioral concerns. Support plans are used on a limited basis and may support a written letter of expectations L.O.E. In those cases the LOE establishes the expectations (GOALS) and the support plan establish the (Goals) expectations.

―Action is the fundamental key to all success.” *************** Purpose:



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Performance management tools (PMT) as an important mechanism to ensure effective hiring policies and equal employment opportunity to all qualified individuals .this policy states the general procedures to ensure that an accurate and up to date PMT is in place prior to recruitment efforts. The salient features of the code of conduct applicable to the employees: 1. All the employees shall display complete loyalty towards the organization. 2. All the employees shall follow company rules and regulations framed from time to time. 3. All the employees shall strictly observe the working hours prescribed. 4. All employees shall follow job instruction given to them by their superiors and achieve their mutually

agreed targets. 5. All the employees shall be expected to observe strict moral and ethical standards in their work and

personal life. 6. The employees shall not criticize the company and company policies at any point of time within or out

side. The company if they have any suggestion, they shall be welcomed to route it through proper channel.

7. All the employees shall be expected to follow organization hierarchy in accepting orders and giving instruction for work. Refusal the instructions of the superiors shall be a serious case of misconduct.

8. All the employees shall work in such a way as to ensure complete personal integrity. 9. All the employees shall be expected to protect company property and keep the company information

confidential whatever required. 10. No employee shall accept any part time or full time paid job out side the organization. If they desire to

take up some exceptional assignment out side, it shall be accepted only with the approval of the appropriate authority.

11. No employee shall publish or cause to be published an article written by him or her on any matter relating to the company in any local, national or overseas news paper, journal or any other publication without the written permission of the management.

12. Such permission shall not be necessary for publication of articles that has no bearing on the affairs of the company and which do not directly or indirectly affect the company and for which no remuneration is given.

13. No employee shall neither consume nor bring alcohol in side the office premises / workplace nor shall him or her outer the office premises/workplace in an alcoholic state after consuming any kind of alcohol.

Harassment: Harassment is behavior that is offensive to individuals including negative stereotyping , unwelcome sexual advances (From the same and opposite sex) epithets , sexist, racist or negligence slurs , demeaning jokes , gestures written or graphical material that communicate these concepts and any other conduct that makes the working environment hostile or offensive. Harassment shall not include occasional compliments or voluntary relationship between individual employees. However in case of voluntary, relationship, employees must ensure that the work environment in free from favoritism and the relationship does not affect work in any way.

****************** Normative elements and their interpretation:



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SA: 8000:2008 The company shall also respect the principles of the following International instruments:

ILO. Conventions 29 and 105 (Forced and bonded labour)

ILO: convention 87 (Freedom of association)

ILO: Convention 98 ( Right to collective bargaining)

ILO: convention 100 and 111 (Equal remuneration for male and female workers for work of equal value; discrimination.

ILO: convention 135 (workers representative convention)

ILO: convention 138 & recommendation 146 (Minimum age and recommendation )

ILO: convention 155 & recommendation 164 ( Occupational health and safety)

ILO: convention 159 (Vocational rehabilitation and employment / disabled person)

ILO: convention 177 ( Home work)

ILO: convention 182 (worst form of child labour) Universal declaration of human rights the United Nations convention to eliminate all forms of discrimination against women. Social accountability requirements: 1. child labour 2. Forced Labour 3. Health and safety 4. Freedom of association and right to collective bargaining 5. Discrimination 6. Disciplinary practices 7. Working hours 8. Remuneration 9. Management system Policy: Top management shall define the company‘s policy for social accountability and labour condition to ensure that it. ******************

―Develop the winning edge “small difference in your performance can lead to large difference in your results.”

Disciplinary Action:



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Unsatisfactory job performance, misconduct, habitual lateness, absenteeism, failure to comply with company‘s policy and procedure or any other breaches of employer / employee relationship may result in disciplinary action. Disciplinary action against employee should

Be undertaken only in cases where good reason and clear evidence exist.

Be appropriate to the nature of offence.

Be demons ratably fair and consistent with previous action in similar circumstances.

Allow employees the right to be accompanied by a colleague of their own choice.

Allow employees the right to answer charges against them; and

Allow employees the right to appeal against any disciplinary action. Procedure: Depending upon the circumstances, employees may be subject to the following reprimand

or disciplinary action:--

Coaching or counseling : if an employee falls below the normal or acceptable requirements as specified in the human resources manual , coaching and counseling by his superior should take place as soon as practicable to prevent the situation from deteriorating to a more serious one or becoming a habit. Verbal warning: a verbal warning should be given to employee in the first instance of a minor offence. Written Warning: The written warning should state the following:-

The nature of the offence with reference to HR Policy.

Any past warning or action taken for similar violations.

The details on disciplinary action being taken.

The expectations or improvements required of the employee.

The future disciplinary action which will be taken against the employee if the offence is repeated within a specified period of time.

Suspension of employment: Company may suspend the employment of an employee for a period not exceeding 14 days for investigation of any serious offence that could lead to summary dismissal. Dismissal: An employee will be dismissal after verbal and written warnings have been given and if no improvement is made details of the policy for dismissal are provided in the section of termination. Compliance:

Identification and assessment of compliance indicators that are confirmed through sample case reviews.

Assessment of agency policies and practices and their impact on policy compliance.

―The path of success is to take massive, determined action” H.R. Organizational assessment:



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Assessment of organizational structure.

Assessment of communication/operational strengths and gaps.

Identification and acknowledgement of policies or practices that strengthen the program.

Recommendations of quality improvement. Employee Relations:-

Sample employee interviews to obtain feedback on agency pay practices.

Assessment of employee understands of compensation practices / services.

Information that previous insight into employee or supervisory training needs.

―Excellence is not a destination; it is a continuous journey that never ends.”

S.A: 8000:2008 SOCIAL ACCOUNTABILITY.



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The nurture, promote and integrate social values within our company is the basic principle followed by ―Damanganga Garments‖ . We are committed to establish clear understanding of ethical practices which provides for all business practices, in producing & delivering the goods and services in the clearest possible way. Foundation of our policy is based on:

Sustaining on ethical culture within the organization.

Safe and healthy working environment.

Completion with applicable laws and regulations. This shall be achieved by developing, implementing, maintaining and continually improving our social accountability management system based on SA: 8000 requirements. Date: Place: Executive President. The policy for social accountability is communicated and implemented by all personnel including Directors, executives, Management, supervisors, staff and associates, whether directly employed, contracted or otherwise representing the company. It is made available to the public by displaying outside the main gate. Code of conduct: 4:1. Compliance with national and local laws. 4:2. Child labour (below 18 years) 4:3. Forced Labour 4:4. Health and safety

Reasonable access to potable water and sanitary facilities.

Fire safety which shall include: 1. A device that brings immediate attention of employees in case of fire. 2. Ready availability and accessibility of adequate number of fire extinguishers and its regular

maintenance. 3. Emergency exists to be clearly marked and kept unlocked during working hours. 4. Hazardous material to be stored securely and disposed off in a safe and legal manner. 5. Sufficient lighting and ventilation to be provided. 6. Machinery to be well maintained and provided with operational safety devices. 7. Adequate number of first aid kits to be provided with reasonable quantity of required medicines. 8. Regular health and safety training to be provided to the employees. 9. If living accommodation is provided to the employees, health and safety requirements apply to these

also.

“It is in your moment of decision that your destiny is shaped”



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Freedom of association Equal opportunities Disciplinary practices Working hours Remuneration (Equal remuneration act, 1976. Industrial employment (Standing order) Act. 1946.

“Either you run the day or the day runs you.”



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STANDARDS FOR COMPLIANCE

STANDARDS FOR COMPLIANCE TO BE MAINTAINED BY FACTORIES IN ADDITION TO LEGAL

REQUIREMENTS.

LIGHTING / ILLUMINATION AT WORK POINT - MINIMUM OF 50 FOOT CANDLES.

ALL OTHER WORK AREAS. - 40 TO 50 FOOT CANDLES.

TEMPERATURE - WITHIN 85 ° F.

NOISE LEVEL IN WORK AREAS - NOT ABOVE 85 db.

PERSONAL PROTECTIVE EQUIPMENT

1. MESH GLOVES SINGLE FOR PORTABLE CUTTING MACHINE.

TWO FOR BAND KNIFE CUTTING MACHINE

2. EYE GUARDS (IMPACT RESISTANT) FOR BUTTON MACHINE OPERATORS - EYE SHIELD FITTED ON THE MACHINES IS ACCEPTABLE.

LAUNDRY WORKERS / CHEMICAL STORE - MUST HAVE A PROPER EYE GUARD.

3. MASKS OVERLOCK MACHINE OPERATORS.

LAUNDRY / CHEMICAL STORES. STAIN REMOVING OPERATORS.

4. RUBBER GLOVES LAUNDRY WORKERS.

STAIN REMOVING OPERATORS.

5. BOOTS LAUNDRY WORKERS.

6. EAR PLUGS REQUIRED IN ALL WORK AREAS WHERE NOISE LEVEL IS OVER 85 db.

FIRST – AID KITS MUST BE ADEQUATELY STOCKED WITH ANTISEPTIC CREAM / LOTIONS / EYE WASH CUP & LOTIONS / BANDAGES / COTTON /

LATEX GLOVES / SCISSORS.

NUMBER OF KITS REQUIRED. ONE KIT FOR EVERY 100 WORKERS.



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NUMBER OF EMPLOYEES TRAINED IN FIRST AID - ATLEAST 2 % OF THE WORKFORCE TO INCLUDE

MALE & FEMALE EMPLOYEES FROM AL DEPARTMENTS.

RECORD OF MINOR INJURIES - MUST BE MAINTAINED WITH EACH FIRST AID KIT.

FIRE FIGHTING EQUIPMENT - 1 EXTINGUISHER PER 1000 Sq. ft. APART FROM REQUIREMENT AS PER LAW.

FIRE EXTINGUISHERS SHOULD NOT BE INSTALLED AT A HEIGHT OF NOT MORE THAN 5..5 FEET FROM THE TOP OF THE

EXTINGUISHER TO THE FLOOR.

AREA BELOW THE EXTINGUISHER SHOULD BE MARKED WITH A YELLOW BOX TO INDICATE THAT THE AREA NEEDS TO BE

KEPT CLEAR AT ALL TIMES.

NUMBER OF WORKERS TRAINED IN HANDLING FIRE FIGHTING EQUIPMENT AT LEAST 40 % OF EMPLOYEES TO INCLUDE MALE & FEMALE EMPLOYEES COVERING ALL DEPARTMENTS.

FIRE EVACUATION DRILLS MUST BE DONE ATLEAST TWICE A YEAR AND DOCUMENTED. SHOULD NOT TAKE MORE THAN 2 MINUTES TO EVACUATE

ENTIRE FACTORY.

FIRE ALARM- MUST BE DISTINCT FROM ALL OTHER ALARMS USED.

THESE SHOULD BE TESTED PERIODICALLY AND PROPER DOCUMENTATION SHOULD BE MAINTAINED.FIRE ALARM SWITCHES SHOULD BE INSTALLED IN ALL WORK AREAS / STORAGE AREAS / CAFETERIA ETC.

EVACUATION ROUTES. MUST BE PROMINENTLY MARKED ON THE FLOOR / WALLS TO INDICATE ROUTE FROM WORK STATION TO NEAREST EXIT. THE ROUTES SHOULD BE ILLUMINATED WITH BATTERY BACK UP LIGHT.

EVACUATION PLANS MUST BE POSTED IN ALL WORK AREAS IN THE LOCAL LANGUAGE AND SHOULD TALLY WITH THE FLOOR LAYOUT. THE PLAN SHOULD BE DETAILED WITH LOCATIONS OF FIRST AID KITS / FIRE EXTINGUISHERS / EVACUATION ROUTES / WORK AREAS /

EXITS.

SAFETY DEVICES

NEEDLE GUARDS MUST BE INSTALLED ON ALL SEWING MACHINES.

PULLEY / BELT / UNDER MOTOR PULLEY GUARDS MUST BE INSTALLED ON ALL SEWING MACHINES. FINGER SAFETY GUARD MUST BE INSTALLED ON BUTTONING MACHINES.

FENCE / GUARD MUSTBE INSTALLED IN FRONT OF ELECTRIC PANELS & STEAM BOILERS (IF INSTALLED IN WORK AREAS).

LAUNDRY –

EYE WASH STATION SHOULD BE INSTALLED.

MATERIAL SAFETY DATA SHEET SHOULD BE AVAILABLE.

STORAGE

WASTE FABRIC / EMPTY CONTAINERS/ SCRAP ETC SHOULD NOT BE STORED AGAINST THE FACTORY BUILDING.

EXCESSIVE ACCUMALATION OF WASTE / SCRAP SHOULD BE AVOIDED.

CHEMICAL STORAGE - THE FOLLOWING MUST BE INSTALLED

FIRE EXTINGUISHERS NO – SMOKING SIGN

EXHAUST FAN.

MATERIAL SAFETY DATA SHEET MUST BE POSTED IN THE LOCAL LANGUAGE.

THE FLOORS SHOULD BE FREE OF ANT CHEMICAL SPILLAGE.

CONTAINERS SHOULD HAVE CAPS SECURED IN PLACE. THE STORAGE AREA MUST BE KEPT LOCKED TO ENSURE WORKERS DO NOT HAVE A FREE ACCESS TO THE CHEMICALS.



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FABRIC STORAGE FABRIC MUST BE STORED ON PALLETS. FABRIC SHOULD BE IN A PROPER MANNER WITH WELL DEFINED PASSAGES IN BETWEEN ROWS.

FABRIC SHOULD NOT BE STORED CLOSE TO ELECTRIC WIRES / SWITCHES.

FUEL STORAGE FOR GENERATORS.

SHOULD BE STORED UNDER A SHED AND NOT IN THE OPEN.

REQUIRED FIRE EXTINGUISHERS SHOULD BE INSTALLED NEAR THE STORAGE AREA.

EXITS THERE SHOULD BE A MINIMUM OF TWO EXITS PER FLOOR.

ALL EXITS SHOULD BE PROPERLY MARKED AND LIT.

EMERGENCY LIGHTS WITH BATTERY BACK UP SHOULD BE INSTALLED ABOVE ALL EXITS / STAIRCASES.

AREA UNDER EXITS SHOULD BE MARKED WITH A YELLOW BOX TO INDICATE THAT THESE AREAS NEED TO BE KEPT CLEAR AT ALL TIMES.

APPROACH TO EXITS MUST BE MAINTAINED CLEAR AT ALL TIMES.

EXIT DOORS MUST OPEN OUTWARDS.

AISLES HORIZONTAL AISLES MUST AT LEAST 48 INCHES WIDE MARKED BY PARALLEL YELLOW LINES.

VERTICAL AISLES MUST BE ATLEAST 36 INCHES WIDE MARKED BY PARALLEL YELLOW LINES. ALL AISLES MUST BE MAINTAINED CLEAR AT ALL TIMES.

WORK AREA SPACING A MINIMUM OF 24 INCHES MUST BE MAINTAINED BETWEEN WORK AREAS.

ERGONOMICS WORKERS WITH STANDING JOBS SHOULD BE PROVIDED WITH RUBBER MATS OR FACTORY SHOULD ENSURE THAT WORKERS USE SOFT RUBBER SOLED FOOTWEAR.

WORKERS SHOULD BE EDUCATED ON HEALTHY ERGONOMIC PRACTICES.

ELECTRICALS / MACHINERY ALL ELECTRICAL WIRINGS SHOULD BE SAFE.

THERE SHOULD BE NO EXPOSED WIRES / OPEN OR BROKEN SWITCHES / SOCKETS.

ALL ELECTRICALS / STEAM PIPES SHOULD BE FREE OF ANY LINT BUILD UP.

FACTORY SHOULD MAINTAIN A PROPER RECORD OF ELECTRICAL / MACHINERY MAINTENANCE.

AREAS IN FRONT OF PANEL BOARDS SHOULD BE MARKED WITH A YELLOW BOX TO INDICATE THAT THE AREA SHOULD BE KEPT CLEAR AT ALL TIMES.

TOILETS TOILETS SHOULD BE CALCULATED AS FOLLOWS:

1 TO 15 = 1 TOILET 16 TO 35 = 2 TOILETS

17 TO 55 = 3 TOILETS

56 TO 80 = 4 TOILETS 81 TO 110 = 5 TOILETS

111 TO 150 = 6 TOILETS

OVER 150 = 1 ADDITIONAL FOR EVERY 40 EMPLOYEES.

OUT OF THE TOTAL REQUIREMENT FOR MALE EMPLOYEES, 33% CAN BE SUBSTITUTED BY URINALS.

TOWELS / SOAP SHOULD BE PROVIDED IN ALL TOILETS.

BIN WITH LID SHOULD BE PROVIDED IN INDIVIDUAL LADIES STALLS.

TOILETS SHOULD HAVE RUNNING WATER.

DRINKING WATER STATION. ONE STATION FOR EVERY 150 EMPLOYEES.

HANDWASHES 1 HANDWASH FOR EVERY 50 WORKERS.

DOCUMENTATION



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PROOF OF AGE DOCUMENTS ACCEPTABLE:

SCHOOL CERTIFICATE DOCTOR‟S CERTIFICATE

BIRTH CERTIFICATE

DRIVING LICENCE VOTER‟S I.D. CARD.

PASSPORT.

ALL LEGALLY REQUIRED DOCUMENTS MUST BE AVAILABLE IN THE FACTORY.

TIME / PAYROLL RECORDS MUST BE AVAILABLE FOR THE LAST 12 MONTHS.

WORKER‟S FILES SHOULD BE MAINTAINED FOR ALL WORKERS.

FACTORY MUST HAVE THE FOLLOWING COMMITTEES TO ADDRESS RELATED ISSUES.

GRIEVANCE COMMITTEE. HEALTH & SAFETY COMMITTEE

CANTEEN COMMITTEE.

HR Values: Human resources is an integral component to realizing company goals in doing so this company values the following:-

a) Integrity: openness and honesty in all interactions. b) Innovation: Support failures with learning and success with recognition. c) Respect: Keep others informed, value diversity and listen with empathy. d) Trust: Confidentiality, accept feed back after assistance. e) Accountability: take ownership of organizational decisions and accept responsibility.

Policy:

a) To improve recruitment and retention strategies: To ensure organization has the knowledge, skills and abilities to accomplish current and future business plan goals and sustain quality services and progress.

b) To improve leadership and learning opportunities to adopt and transform the organization to meet the changing needs.

c) To improve work place wellbeing: Recognizing that the delivery of sustainable quality services is largely dependent on a healthy skilled workforce, employee wellbeing will be a major priority.

d) To improve employees: commitment to organization improving public confidence must involve improving the confidence of employees.

e) To improve. Alignment of HR planning to business planning.

To ensure the organization is committed to planning for its human resources of the future, sustainability of quality services will be addressed through proactive. Human resources, planning, linked to business planning in the company.

Human resources strategy: Purpose: The ability of an organization to achieve its vision and goals is based upon its ability to develop and successfully implement a human resources plan. The purpose of this policy is to provide guidance to departments on the development and implementation of departmental human resources plans.

“The major value in life is not what you get. The major value in life is what you become.” HRD Practices & Philosophy: The management philosophy of a company is generally based upon the top management‘s assumptions about people working in the organization. It reflects the attitude of the top management towards the



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human resources of an organization; managerial philosophies of companies are embedded in the society. McGregor (1960) has labeled the managerial philosophies as theory X and theory Y. The following key issues emerged from the study:-

Organizations will have to design managerial philosophy which is sensitive to human existence.

The managerial philosophy in the organization has an impact on the organizations of the future.

HR Concepts that get packaged along with modern managerial philosophy are likely to revolutionize the work place.

The bottom line is that people want to be cared for and respected. On their part organizations want commitment and integrity. A successful combination of committed people and a behavolent organization could well be the way for organizations in this competitive environment in India.

House Rent allowance:

Cities with population Rates of HRA

50 Lakhs and above

30% of Basic salary

5 to 50 Lakhs

20% of Basic of salary

Less than 5 Lakhs

10% of Basic salary

We are committed to continual improvement and excellence in all our HR interventions through:-

Strengthening a learning culture by effective training and development, total employee involvement, achieving high performance standards through performance management system and adherence to ethical values.

Providing avenues for growth and development by aptitude and need based cross functional mobility of employees to harness their full potential ensuring growth of each employee in the organization through a carefully worked out career advancement scheme implementing redevelopment strategy for manpower optimization.

Developing and nurturing an organizational climate which encourages creativity and innovation.

Inducing appropriate quality of manpower and retaining them.

Making proactive efforts to maintain cordial industrial relation and discipline through a system of periodic interaction with employee collectives.

Laying down of all employee related policies properly and following these transparently.

Abiding by all statuary obligations in letter and spirit. ―Every minute you spend in planning saves 10 minutes in execution: this gives you a 100 percent

return on energy.”

Human Resource Management: HR is the singular most powerful factor affecting any organization. It involves three phases termed as welfare, development and empowerment human resources management (HRM) is a process of bringing people and organizations together so that the goals of each are met. The ―art and science ―of HRM is indeed complex. We have chosen the term ―art and science‖ as HRM is both the art of managing people



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by recourse to creative and innovative approaches: it is science as well because of the precision and rigorous application of theory that is required. The various features of HRM include:- a) It is pervasive in nature as it is present in all enterprise. b) Its focus on results rather than on rules. c) It tries to help employees to develop their potential fully. d) It encourages employees to give their best to the organization. e) It is all about people at work, both as individual and groups. f) It tries to put people on assigned jobs in order to produce good results. g) It helps an organization to meets its goals in the future by providing for competent and well motivated

employees. h) It tries to build and maintain cordial relations between people working at various levels in the

organization. i) It is multidisciplinary activity, utilizing knowledge and inputs drawn from psychology, economics etc. Principle of HR management: - 1. Comprehensiveness: the proper management of all aspects of the people bearing in mind that the

human resources are the most valuable resource the firm has. This means that the financial, health, transportation, tools and anything employees need to work are well taken care of.

2. Cost effectiveness: - The Company ensures that they remunerate their employees appropriately. The employees reward system should be able to sustain the organization.

3. Control:- Firms should be able to take charge of their employees and ensure that productivity and quality is achieved and maintained.

4. Coherence:- All the steps taken by the HR team is in line with the mission and vision of the company . Human resources managers should direct their focus on what the company needs and employee abilities.

5. Communication:- Communication is very important in every organization as it ensures there is flow of information that is necessary for efficiency.

6. Creativity:- Creativity is a key to be efficient inhuman resources management. HR manager should adopt new ways of human resources management as long as it fits the goals and objectives of HR.

7. Competence:- It is the responsibility of HR managers to ensure that their employees are skilled to do their duties.

8. Credibility:- The organization must ensure that they remain the best brand to most of their clients by maintaining their credibility they should put in place strategies that ensure all employees have a clear sense of direction to a common goal.

9. Change is evitable for business:- The fastest business to embrace change in management of their human resources is better placed to produce better results.

10. Commitment:- Every organization has objectives which they intend to meet both for themselves and

for their clients. To meet these goals , firms need committed staff therefore it is the firms responsibility to keep their employees motivated so as to ensure they are committed to the organizations course.

“Focused mind power is one of the strongest forces on earth” . Values: Being accountable:- To communicate ,consult and provide information. Living within our means:

Partnership – to complement the private sector.

Foresight – to plan ahead within available resources.



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Managing for performance:-

Leadership – to set the direction

Expertise – to develop necessary skills and apply them in a professional manner.

Effectiveness- to achieve objective

Efficiency – to achieve value for money

Propriety – to ensure proper use of public money Developing our culture of service:

commitment – to give our best

Integrity – to be impartial and ethical

Courtesy – to treat others decently

Responsiveness – to react to problems and changing circumstances. Values:

HRM:

Trust

Care

Team work

Encouragement

Development

Serving the Community:

Openness

Commitment

Effectiveness

Foresight

Courtesy

Propriety

Expertise

Partnership

Integrity

Efficiency

Leadership

Responsiveness

Manpower Planning

Recruitment

Performance Management

Training and development

Staff relations

Management information system



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Manpower planning: Enables a department to project its short to long term needs on the basis of its departmental plans so that it can adjust its manpower requirements to meet changing priority the more changing the environment the department is in , the more the department needs manpower planning to show:

The number recruits required in a specified time frame and the availability to talent.

Early indications of potential recruitment or retention difficulties.

Surpluses or deficiencies in certain ranks or grade.

Availability of suitable qualified and experienced successors. Manpower Planning comprises two key components:

Succession planning

Turn over Succession planning: assesses the likely turnover in key posts, identifies suitable candidates to fill these posts in future, and ensures that they have the right training, and exposure for their future work. Succession planning is a very important exercise because it minimizes the impact of turnover in these key ranks and gives a branch or department early warning of any skill shortages or difficulties in finding suitable candidates. Ideally a succession plan should cover 3 to 5 years. The succession plan should identify.

Key posts and possible successors.

Causes of turnover

Competencies of successors and the training required for them.

Posts for which no apparent successors exists and the remedial action planned.

“You have got to win in your mind before you win in your life.” Turnover: Turnover refers to retirement, resignation and redundancy. While a department can not plan turnover because there are factors ,such as resignation, which are beyond its control ,it can monitor turnover carefully to ensure the department will have minimal difficulties in retaining staff when addressing the aspects of succession and turnover, the department also needs to consider other manpower planning factors:

External factors

Internal factors



20

Recruitment: The general principles under joining recruitment:

Use procedures which are clearly understand by candidates and which are open to public scrutiny.

Be fair giving candidates who meet the stipulated minimum requirements equal opportunity for selection.

Select candidates on the basis of merit and ability. Key Components:

Deciding on terms of appointment

Selection of candidates

Probation

Sr.

No.

Document No. Name of Document No. of

Pages

Revision No with

Effective Date

1.

QSM 0.1

Company Profile

1

Rev No – 00

Eff. Date -01/10/2009

2.

QSM 0.2

Abbreviation

2

Rev No – 00

Eff. Date -01/10/2009

Rev No – 00



21

3. QSM 0.3

Vocabulary 1 Eff. Date -01/10/2009

4.

QSM 0.4

Certificate

1

Rev No – 00

Eff. Date -01/10/2009

5.

QSM - 1.1

Scope

1

Rev No – 00

Eff. Date -01/10/2009

6.

QSM – 4.1

Quality Management System

3

Rev No – 00

Eff. Date -01/10/2009

7.

QSM – 4.2

Control of Documents

1

Rev No – 00

Eff. Date -01/10/2009

8.

QSM – 4.3

Control of Records

1

Rev No – 00

Eff. Date -01/10/2009

9.

QSM – 5.1

Management Commitment & Customer Focus

1

Rev No – 00

Eff. Date -01/10/2009

10.

QSM – 5.2

Quality Policy & Objective

3

Rev No – 00

Eff. Date -01/10/2009

11.

QSM – 5.3

Responsibility , Authority & Communication

12

Rev No – 00

Eff. Date -01/10/2009

12.

QSM – 5.4

Management Review

1

Rev No – 00

Eff. Date -01/10/2009

13. QSM – 6.1

Human Resources

(Competence Awareness & Training )

1

Rev No – 00

Eff. Date -01/10/2009

14.

QSM – 6.2

Infrastructure , Maintenance and Work

Environment

1

Rev No – 00

Eff. Date -01/10/2009

16.

QSM – 7.1

Planning of Product Realization Process

1

Rev No – 00

Eff. Date -01/10/2009

Sr.

No.

Document No. Name of Document No. of

Pages

Revision No with

Effective Date

17.

QSM – 7.2

Customer Related Process ( Marketing )

2

Rev No – 00

Eff. Date -01/10/2009



22

19.

QSM – 7.4

Purchasing

1

Rev No – 00

Eff. Date -01/10/2009

20.

QSM – 7.5

Control of Production

1

Rev No – 00

Eff. Date -01/10/2009009

21.

QSM – 7.6

Identification and Traceability

1

Rev No – 00

Eff. Date -01/10/2009

22.

QSM – 7.7

Customer Property

1

Rev No – 00

Eff. Date -01/10/2009

23.

QSM – 7.8

Preservation of Product(Stores)

1

Rev No – 00

Eff. Date -01/10/2009

24.

QSM – 7.9

Control of Monitoring and Measuring equipments

(Calibration )

1

Rev No – 00

Eff. Date -01/10/2009

25.

QSM – 8.1

Internal Audit

1

Rev No – 00

Eff. Date -01/10/2009

26.

QSM – 8.2

Monitoring and Measurement of Process

1

Rev No – 00

Eff. Date -01/10/2009

27.

QSM – 8.2.1

Monitoring and Measurement of Customer

Satisfaction

1

Rev No – 01

Eff. Date -01/07/2009

28.

QSM – 8.3

Monitoring and Measurement of Product

( Inspection )

1

Rev No – 00

Eff. Date -01/10/2009

29.

QSM – 8.4

Control of Non – Conforming Product

1

Rev No – 00

Eff. Date -01/10/2009

30.

QSM – 8.5

Analysis of Data

1

Rev No – 00

Eff. Date -01/10/2009

31.

QSM – 8.6

Continual Improvement

1

Rev No – 00

Eff. Date -01/10/2009

32.

QSM – 8.7

Corrective Action

1

Rev No – 00

Eff. Date -01/10/2009

33.

QSM – 8.8

Preventive Action

1

Rev No – 00

Eff. Date -01/07/2009



23

I.SO. 9001:2008

“Look for the good in every person and every situation, you will almost always find it.”

1. Provision of Resources.

General

1.1 To implement and maintain quality management system and continually improve its

effectiveness to enhance customer satisfaction, necessary resources needed is determined and provided.

1.2 This includes raw-material, men, machine, inspection & test equipments,

method,

facilities and work environment to meet customer satisfaction.



24

2. Human resources

2.1 Organization ensures that personnel performing work affecting product quality are

competent on the basis of appropriate education, training, skills and experience.

2.2 Competence, awareness and training.

2.2.1 Competence needs for personnel performing activities affecting product quality are determined.

2.2.2 Suitable training is imparted as deemed necessary, to satisfy competence

need so determined. 2.2.3 Effectiveness of action taken is evaluated and if so required, the person is re

trained.

2.2.4 The employees are made aware of the relevance and importance of their activities.

2.2.5 Employees are also made aware of their contribution in achieving the quality

objectives.

2.2.6 Appropriate record of education, experience, training and skills is maintained.

2.2.7 A standard Operating Procedure is documented for the same.(SOP 6.1)

QUALITY MANAGEMENT SYSTEM POLICY) It is the policy of Sutlej Textile and Industries Limited, Bhilad, to

supply quality fabrics and ready made garments at competitive price that meets customers’ expectations and desired customers’

satisfaction. To fulfill this Quality Policy –

A customer oriented Quality Management System is established to

ensure that the Quality is built into the process and product at each stage of manufacturing and only the quality product reaches the

customer always on time.

The production facilities are updated on a regular basis to meet ever-

increasing quality requirements of the customers. The internal R&D



25

efforts shall be geared up to ensure that the process and product quality is improved on continual basis.

The training facilities are strengthened to educate and develop the

employees at all levels. Employees are motivated to achieve the objectives set by the organization.

The organization provides the required resources to maintain and update facilities, skill and systems to achieve quality objectives in an

work environment conducive to growth.

Place: Mumbai Date: 01.10.09 K.C. Agarwal Executive president

1. For easy understanding Quality Policy is translated in local language and displayed

at all strategic locations.

2. Every employee of the organization is trained on quality policy

ORGANISATIONAL OBJECTIVES

1. To sustain a business growth of at least 20% per annum both in terms of value

and quantity.

2 To reduce customer complaints to 5% n the next three years.

DEPARTMENTAL OBJECTIVES WEAVING/ Home Textile

1. Loom efficiency to be maintained at min. of 85%.



26

2. “A “grade fabric should be more than 90 % of the total production. ( Daily grey checking report and daily grey checking summery )

3. Knotting and gaiting time not to exceed more than 1.5 Hrs and 2. 5 hrs

respectively.

4. Hard waste not to exceed 2.8 % of the total production.

PROCESSING

1. Re-process not to exceed more than 7% of the total production. ( Stenter-

5% , Mechanical – 2%)

2 Machine utilization should not be less than 92%

3 Fabric damage due to processing not to exceed 0.65% of the total

production.

WARPING

1. Warp beam complaints from Weaving department to be reduced to Zero.

ENGINEERING

1. Stenter stoppage time due to break down not to exceed 1.5 % of total

working hours.

2 Power consumption (GEB & DG) not to exceed 65 units on per 100 mtrs of production.

3 Coal consumption not to exceed 50 kg per 100 mtrs of Production.

QA & LAB

1. Reply of each market complaint in 7 days from the date of receipt of

complaint at Bhilad.

Garments

1. End line alteration not to exceed 8% of the total garments stitched within next 6

months.

2. Final (Post Pressing) not to exceed 3% of the total garments checked.

STORES



27

Dead stock (unused stocks lying for more than six months) to be reduced to 2.5

% of the total inventory in the next 3 years.

Personnel

To enhance the competence of each employees by at least “0.5” in the scale of 1 to 10 every year.

Garment Formats.

Sr No Name of the report Format No

1 Monthly Production Planning FMT 7.15.1

2 Operation wise machine lay out FMT 7.15.2

3 P.P.Meeting Details FMT 7.15.3

4 Cutting Challan FMT 7.15.4

5 Cut Plan FMT 7.15.5

6 Lay Book FMT 7.15.6

7 Hourly Production Report (Stitching ) FMT 7.15.7

8 Daily Production Report (Stitching ) FMT 7.15.8

9 Stitching to Finishing Challan FMT 7.15.9

10 Stitching In put output register FMT 7.15.10

11 Stitching reconciliation Report FMT 7.15.11

12 Daily Hourly Pressing report FMT 7.15.12

13 Hourly Checking Report FMT 7.15.13



28

14 Daily Packing Report FMT 7.15.14

15 Packing List FMT 7.15.15

16 Production Report Department Wise FMT 7.15.16

17 Daily Production FMT 7.15.17

18 Fabric Checking Report FMT 8.3.17

19 Spreading Quality Control FMT 8.3.18

20 Cut Parts Quality Control FMT 8.3.19

21 Stitckered Part Quality control FMT 8.3.20

22 Sorting and Bundling Report FMT 8.3.21

23 Inline Checking (Front ) FMT 8.3.22

24 Inline Checking (Back ) FMT 8.3.23

25 Inline Checking (Assembly I ) FMT 8.3.24

26 Inline Checking (Assembly II ) FMT 8.3.25

27 Inline Periodic Checking FMT 8.3.26

28 End Line Checking Report FMT 8.3.27

29 Final Garment Checking Report FMT 8.3.28

30 Measurement Checking Report FMT 8.3.29

31 Final Audit FMT 8.3.30

Sutlej Textiles and Industries Ltd.

Unit : Damanganga Garments

List of Records FMT : 4.3.1 Rev. : 00

Eff. Dt. : 1.10.09

Department: Q.A.

Sr

No

Name of the Records Index No

Retention

Period

Disposing

Authority

1 Fabric Checking Report Q-1 6 Months QA Manager

2 Spreading Quality Control Q-2 2 Months QA Manager

3 Cut Part Quality Control Q-3 2 Months QA Manager

4 Snickered Part Checking Report Q-4 2 Months QA Manager

5 Sorting and Bundling Checking

Reports Q-5

2 Months QA Manager

6 Inline Checking ( Front ) Q-6 2 Months QA Manager

7 Inline Checking ( Back ) Q-7 2 Months QA Manager

8 Inline Checking ( Assembly I ) Q-8 2 Months QA Manager

9 Inline Checking ( Assembly II ) Q-9 2 Months QA Manager



29

10 Inline Periodic Checking Q-10 2 Months QA Manager

11 End Line Checking Report Q-11 2 Months QA Manager

12 Final Garment Checking Report Q-12 2 Months QA Manager

13 Measurement Checking reports Q-13 2 Months QA Manager

14 Final Audit Q-14 6 Month QA Manager

Department: Sampling Department.

Sr

No

Name of the Records Index No Retention

Period

Disposing

Authority

1 Measurement Chart S-1 Sampling I/C

2 Sampling Daily Report S-2 Sampling I/C

3 Sampling Evaluation Sheet S-3 Sampling I/C

4 Sampling Communication –

Marketing/ Buyer S-4

Sampling I/C

5 Sampling Cutting Information S-5 Sampling I/C

Name of the candidate selected for auditors training.

Sr No Auditor Name Department

1 Mr Banavarilal Weaving

2 Mr Krishna Mahyawanshi Weaving

3 Mr Lalit Dhote Processing

4 Mr Monohar Joshi Processing

5 Mr C.P. Sagar Engineering

6 Mr T.B. Yadav Engineering

7 Mr R.M. Rana Store

8 Mr Zakir R & D

9 Mr Pradeep R & D

10 Mr Sagar P.P.C.

11 Mr Ram Mohanty Folding

12 Mr P.C. Mishra H.R.

13 Mr.Vinod Thakur Home Textiles



30

14 Mr Mahendra Yadav Home Textiles

15 Mr Sahadev Singh Garments

Sutlej Textiles and Industries Ltd.

Unit : Daman ganga Garments

List of Records FMT : 4.3.1 Rev. : 00

Eff. Dt. : 1.10.09

Department: Trim Store

Sr

No

Name of the Records Index No Retention

Period

Disposing

Authority

1 I.M.R TS-1 1 Year Store I/C

2 IMR Register TS-2 1 Year Store I/C

3 Issue Slip TS-3 6 Month Store I/C

4 Physical Stock Register TS-4 1 Year Store I/C

5 Challan File TS-5 1 Year Store I/C

6 P O File TS -6 1 Year Store I/C

7 Indent File TS-7 1 Year Store I/C

8 Inspection register TS-8 1 Year Store I/C

Company Law: Classes of company:

1. Private Limited company 2. Public Limited company 3. Unlimited company

Formation of Private Company:

1. Name: The name of private company must end with word ―Private limited‖ . it is necessary to mention the word ―Private limited‖.

2. Subscribers. Minimum 2 persons, Maximum 50 persons. 3. Directors: Minimum 2 persons.

Formation of Public company:



31

1. Name: Name of a public company should end with the word ― Limited‖ . It is not necessary to mention ― Public Limited‖.

2. Subscribers: Minimum 7 persons 3. Directors: Minimum 3 persons (directors).

Formation of guarantee company: A guarantee company means a company having a liability of its members limited by the memorandum to such amount as the members may respectively undertake to contribute in the assets of the company in the event of its being wound up. The guarantee company may be a private company or a public limited company. It may have share capital or may not have any share capital. Articles: The articles of a private company must provide the following:

a) Restricts the rights to transfer its share. b) Limits the number of its members to fifty . while calculating the number of member the following

members shall be excluded. I. Persons who are in the employment of the company. II. Former employees of the company. III. Where two or more persons hold shares in joint name. (They shall be treated as single member.)

C) Prohibits any invitations to the public to subscribe for any shares in or debentures of the company.

“Your belief determines your action and your action determines your results, but first you have to believe.”

INTERNATIONAL

STANDARD

ISO9001

Contents Page



32

1 Scope

1.1 General 1.2 Application

2 Normative reference 3 Terms and definitions

4 Quality management system 4.1 General requirements 4.2 Documentation requirements

5 Management responsibility 5.1 Management commitment 5.2 Customer focus 5.3 Quality policy 5.4 Planning 5.5 Responsibility, authority and communication 5.6 Management review

6 Resource management 6.1 Provision of resources 6.2 Human resources 6.3 Infrastructure 6.4 Work environment

7 Product realization 7.1 Planning of product realization 7.2 Customer-related processes 7.3 Design and development 7.4 Purchasing 7.5 Production and service provision 7.6 Control of monitoring and measuring devices

8 Measurement, analysis and improvement 8.1 General 8.2 Monitoring and measurement 8.3 Control of nonconforming product 8.4 Analysis of data 8.5 Improvement

Quality management systems — Requirements 1 Scope 1.1 General

This International Standard specifies requirements for a quality management system where an

organization a) Needs to demonstrate its ability to consistently provide product that meets customer and

applicable regulatory requirements, and b) Aims to enhance customer satisfaction through the effective application of the system, including

processes for continual improvement of the system and the assurance of conformity to customer and applicable regulatory requirements.



33

NOTE In this International Standard, the term ―product‖ applies only to the product intended for, or required by, a customer. 1.2 Application

All requirements of this International Standard are generic and are intended to be applicable

to all organizations, regardless of type, size and product provided. Where any requirement(s) of this International Standard cannot be applied due to the nature

of an organization and its product, this can be considered for exclusion. Where exclusions are made, claims of conformity to this International Standard are not acceptable unless these exclusions are limited to requirements within clause 7, and such exclusions do not affect the organization's ability, or responsibility, to provide product that fulfils customer and applicable regulatory requirements. 2 Normative reference

The following normative document contains provisions which, through reference in this text, constitute provisions of this International Standard. For dated references, subsequent amendments to, or revisions of, any of these publications do not apply. However, parties to agreements based on this International Standard are encouraged to investigate the possibility of applying the most recent edition of the normative document indicated below. For undated references, the latest edition of the normative document referred to applies. Members of ISO and IEC maintain registers of currently valid International Standards. ISO 9000:—1) , Quality management systems — Fundamentals and vocabulary. 3 Terms and definitions For the purposes of this International Standard, the terms and definitions given in ISO 9000 apply. 1) To be published. (Revision of ISO 8402:1994 and ISO 9000-1:1994)

The following terms, used in this edition of ISO 9001 to describe the supply chain, have been changed to reflect the vocabulary currently used: The term ―organization‖ replaces the term ―supplier‖ used in ISO 9001:1994, and refers to the unit to which this International Standard applies. Also, the term ―supplier‖ now replaces the term ―subcontractor‖. Throughout the text of this International Standard, wherever the term ―product‖ occurs, it can also mean ―service‖. 4 Quality management system 4.1 General requirements The organization shall establish, document, implement and maintain a quality management system and continually improve its effectiveness in accordance with the requirements of this International Standard. The organization shall



34

a) Identify the processes needed for the quality management system and their application throughout the organization (see 1.2), b) Determine the sequence and interaction of these processes, c) Determine criteria and methods needed to ensure that both the operation and control of these processes are effective, d) Ensure the availability of resources and information necessary to support the operation and monitoring of these processes, e) Monitor, measure and analyse these processes, and f) Implement actions necessary to achieve planned results and continual improvement of these processes.

These processes shall be managed by the organization in accordance with the requirements of this International Standard. NOTE Processes needed for the quality management system referred to above should include processes for management activities, provision of resources, product realization and measurement.

Where an organization chooses to outsource any process that affects product conformity with requirements, the organization shall ensure control over such processes. Control of such outsourced processes shall be identified within the quality management system. 4.2 Documentation requirements 4.2.1 General The quality management system documentation shall include a) Documented statements of a quality policy and quality objectives, b) A quality manual, c) Documented procedures required by this International Standard, d) Documents needed by the organization to ensure the effective planning, operation and control of its processes, and e) Quality records required by this International Standard (see 4.2.4). NOTE 1 Where the term ―documented procedure‖ appears within this International Standard, this means that the procedure is established, documented, implemented and maintained. NOTE 2 The extent of the quality management system documentation can differ from one organization to another due to a) The size of organization and type of activities, b) The complexity of processes and their interactions, and c) The competence of personnel. NOTE 3 The documentation can be in any form or type of medium. 4.2.2 Quality manual The organization shall establish and maintain a quality manual that includes a) The scope of the quality management system, including details of and justification for any exclusions (see 1.2), b) The documented procedures established for the quality management system, or reference to them, and c) A description of the interaction between the processes of the quality management system.



35

4.2.3 Control of documents

Documents required by the quality management system shall be controlled. Quality records are a special type of document and shall be controlled according to the requirements given in 4.2.4. A documented procedure shall be established to define the controls needed a) To approve documents for adequacy prior to issue, b) To review and update as necessary and re-approve documents, c) To ensure that changes and the current revision status of documents are identified, d) To ensure that relevant versions of applicable documents are available at points of use, e) To ensure that documents remain legible and readily identifiable, f) To ensure that documents of external origin are identified and their distribution controlled, and g) To prevent the unintended use of obsolete documents, and to apply suitable identification to them if they are retained for any purpose. 4.2.4 Control of quality records Quality records shall be established and maintained to provide evidence of conformity to requirements and of the effective operation of the quality management system. Quality records shall remain legible, readily identifiable and retrievable. A documented procedure shall be established to define the controls needed for the identification, storage, protection, retrieval, retention time and disposition of quality records. 5 Management responsibility 5.1 Management commitment

Top management shall provide evidence of its commitment to the development and implementation of the quality management system and continually improving its effectiveness by a) Communicating to the organization the importance of meeting customer as well as statutory and

regulatory requirements, b) Establishing the quality policy, c) Ensuring that quality objectives are established, d) Conducting management reviews, and e) Ensuring the availability of resources. 5.2 Customer focus Top management shall ensure that customer requirements are determined and fulfilled with the aim of enhancing customer satisfaction (see 7.2.1 and 8.2.1). 5.3 Quality policy Top management shall ensure that the quality policy a) Is appropriate to the purpose of the organization, b) Includes a commitment to comply with requirements and continually improve the effectiveness of

the quality management system, c) provides a framework for establishing and reviewing quality objectives, d) Is communicated and understood within the organization, and e) Is reviewed for continuing suitability. 5.4 Planning 5.4.1 Quality objectives



36

Top management shall ensure that quality objectives, including those needed to meet requirements for product [see 7.1 a)], are established at relevant functions and levels within the organization. The quality objectives shall be measurable and consistent with the quality policy. 5.4.2 Quality management system planning Top management shall ensure that a) The planning of the quality management system is carried out in order to meet the requirements

given in 4.1, as well as the quality objectives, and b) The integrity of the quality management system is maintained when changes to the quality

management system are planned and implemented. 5.5 Responsibility, authority and communication 5.5.1 Responsibility and authority Top management shall ensure that the responsibilities, authorities and their interrelation are defined and communicated within the organization. 5.5.2 Management representative Top management shall appoint a member of management who, irrespective of other responsibilities, shall have responsibility and authority that includes a) Ensuring that processes needed for the quality management system are established, implemented and maintained, b) Reporting to top management on the performance of the quality management system and any

need for improvement, and c) Ensuring the promotion of awareness of customer requirements throughout the organization. NOTE The responsibility of a management representative can include liaison with external parties on matters relating to the quality management system. 5.5.3 Internal communication Top management shall ensure that appropriate communication processes are established within the organization and that communication takes place regarding the effectiveness of the quality management system. 5.6 Management review 5.6.1 General Top management shall review the organization's quality management system, at planned intervals, to ensure its continuing suitability, adequacy and effectiveness. This review shall include assessing opportunities for improvement and the need for changes to the quality management system, including the quality policy and quality objectives. Records from management reviews shall be maintained (see 4.2.4). 5.6.2 Review input The input to management review shall include information on a) Results of audits, b) Customer feedback, c) Process performance and product conformity, d) Status of preventive and corrective actions, e) Follow-up actions from previous management reviews, f) Planned changes that could affect the quality management system, and



37

g) Recommendations for improvement. 5.6.3 Review output The output from the management review shall include any decisions and actions related to a) Improvement of the effectiveness of the quality management system and its processes, b) Improvement of product related to customer requirements, and c) Resource needs. 6 Resource management 6.1 Provision of resources The organization shall determine and provide the resources needed a) To implement and maintain the quality management system and continually improve its effectiveness, and b) To enhance customer satisfaction by meeting customer requirements. 6.2 Human resources 6.2.1 General Personnel performing work affecting product quality shall be competent on the basis of appropriate education, training, skills and experience. 6.2.2 Competence, awareness and training The organization shall a) Determine the necessary competence for personnel performing work affecting product quality, b) Provide training or take other actions to satisfy these needs, c) Evaluate the effectiveness of the actions taken, d) Ensure that its personnel are aware of the relevance and importance of their activities and how

they contribute to the achievement of the quality objectives, and e) Maintain appropriate records of education, training, skills and experience (see 4.2.4). 6.3 Infrastructure The organization shall determine, provide and maintain the infrastructure needed to achieve conformity to product requirements. Infrastructure includes, for example a) Buildings, workspace and associated utilities, b) Process equipment, both hardware and software, and c) Supporting services such as transport or communication. 6.4 Work environment The organization shall determine and manage the work environment needed to achieve conformity to product requirements. 7 Product realization 7.1 Planning of product realization The organization shall plan and develop the processes needed for product realization. Planning of product realization shall be consistent with the requirements of the other processes of the quality management system (see 4.1).



38

In planning product realization, the organization shall determine the following, as appropriate: a) Quality objectives and requirements for the product; b) The need to establish processes, documents, and provide resources specific to the product; c) Required verification, validation, monitoring, inspection and test activities specific to the product

and the criteria for product acceptance; d) Records needed to provide evidence that the realization processes and resulting product fulfil

requirements (see 4.2.4). The output of this planning shall be in a form suitable for the organization's method of operations. NOTE 1 A document specifying the processes of the quality management system (including the product realization processes) and the resources to be applied to a specific product, project or contract, can be referred to as a quality plan. NOTE 2 The organization may also apply the requirements given in 7.3 to the development of product realization processes. 7.2 Customer-related processes 7.2.1 Determination of requirements related to the product The organization shall determine a) Requirements specified by the customer, including the requirements for delivery and post-delivery activities, b) Requirements not stated by the customer but necessary for specified use or known and intended use, c) Statutory and regulatory requirements related to the product, and d) Any additional requirements determined by the organization. 7.2.2 Review of requirements related to the product The organization shall review the requirements related to the product. This review shall be conducted prior to the organization's commitment to supply a product to the customer (e.g. submission of tenders, acceptance of contracts or orders, acceptance of changes to contracts or orders) and shall ensure that a) Product requirements are defined, b) Contract or order requirements differing from those previously expressed are resolved, and c) The organization has the ability to meet the defined requirements.

Records of the results of the review and actions arising from the review shall be maintained (see 4.2.4). Where the customer provides no documented statement of requirement, the customer requirements shall be confirmed by the organization before acceptance.

Where product requirements are changed, the organization shall ensure that relevant documents are amended and that relevant personnel are made aware of the changed requirements. NOTE In some situations, such as internet sales, a formal review is impractical for each order. Instead the review can cover relevant product information such as catalogues or advertizing material. 7.2.3 Customer communication



39

The organization shall determine and implement effective arrangements for communicating with customers in relation to a) Product information, b) Enquiries, contracts or order handling, including amendments, and c) Customer feedback, including customer complaints. 7.3 Design and development 7.3.1 Design and development planning The organization shall plan and control the design and development of product. During the design and development planning, the organization shall determine a) the design and development stages, b) the review, verification and validation that are appropriate to each design and development stage, and c) the responsibilities and authorities for design and development.

The organization shall manage the interfaces between different groups involved in design and development to ensure effective communication and clear assignment of responsibility.

Planning output shall be updated, as appropriate, as the design and development progresses. 7.3.2 Design and development inputs Inputs relating to product requirements shall be determined and records maintained (see 4.2.4). These shall include a) Functional and performance requirements, b) Applicable statutory and regulatory requirements, c) Where applicable, information derived from previous similar designs, and d) Other requirements essential for design and development.

These inputs shall be reviewed for adequacy. Requirements shall be complete, unambiguous and not in conflict with each other. 7.3.3 Design and development outputs The outputs of design and development shall be provided in a form that enables verification against the design and development input and shall be approved prior to release. Design and development outputs shall a) Meet the input requirements for design and development, b) Provide appropriate information for purchasing, production and for service provision, c) Contain or reference product acceptance criteria, and d) Specify the characteristics of the product that are essential for its safe and proper use. 7.3.4 Design and development review At suitable stages, systematic reviews of design and development shall be conducted a) To evaluate the ability of the results of design and development to fulfil requirements, and b) To identify any problems and propose necessary actions.

Participants in such reviews shall include representatives of functions concerned with the design and development stage(s) being reviewed. Records of the results of the reviews and any necessary actions shall be maintained (see 4.2.4).



40

7.3.5 Design and development verification Verification shall be performed to ensure that the design and development outputs have satisfied the design and development input requirements. Records of the results of the verification and any necessary actions shall be maintained (see 4.2.4). 7.3.6 Design and development validation Design and development validation shall be performed in accordance with planned arrangements (see 7.3.1) to ensure that the resulting product is capable of fulfilling the requirements for the specified or known intended use or application. Wherever practicable, validation shall be completed prior to the delivery or implementation of the product. Records of the results of validation and any necessary actions shall be maintained (see 4.2.4). 7.3.7 Control of design and development changes Design and development changes shall be identified and records maintained. The changes shall be reviewed, verified and validated, as appropriate, and approved before implementation. The review of design and development changes shall include evaluation of the effect of the changes on constituent parts and delivered product. Records of the results of the review of changes and any necessary actions shall be maintained (see 4.2.4). 7.4 Purchasing 7.4.1 Purchasing process The organization shall ensure that purchased product conforms to specified purchase requirements. The type and extent of control applied to the supplier and the purchased product shall be dependent upon the effect of the purchased product on subsequent product realization or the final product. The organization shall evaluate and select suppliers based on their ability to supply product in accordance with the organization's requirements. Criteria for selection, evaluation and re-evaluation shall be established. Records of the results of evaluations and any necessary actions arising from the evaluation shall be maintained (see 4.2.4). 7.4.2 Purchasing information Purchasing information shall describe the product to be purchased, including where appropriate a) Requirements for approval of product, procedures, processes and equipment, b) Requirements for qualification of personnel, and c) Quality management system requirements. The organization shall ensure the adequacy of specified purchase requirements prior to their communication to the supplier. 7.4.3 Verification of purchased product The organization shall establish and implement the inspection or other activities necessary for ensuring that purchased product meets specified purchase requirements. Where the organization or its customer intends to perform verification at the supplier's premises, the organization shall state the intended verification arrangements and method of product release in the purchasing information.



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7.5 Production and service provision 7.5.1 Control of production and service provision The organization shall plan and carry out production and service provision under controlled conditions. Controlled conditions shall include, as applicable a) The availability of information that describes the characteristics of the product, b) The availability of work instructions, c) The use of suitable equipment, d) The availability and use of monitoring and measuring devices, e) The implementation of monitoring and measurement, and f) The implementation of release, delivery and post-delivery activities. 7.5.2 Validation of processes for production and service provision The organization shall validate any processes for production and service provision where the resulting output cannot be verified by subsequent monitoring or measurement. This includes any processes where deficiencies become apparent only after the product is in use or the service has been delivered. Validation shall demonstrate the ability of these processes to achieve planned results. The organization shall establish arrangements for these processes including, as applicable a) defined criteria for review and approval of the processes, b) approval of equipment and qualification of personnel, c) use of specific methods and procedures, d) requirements for records (see 4.2.4), and e) revalidation. 7.5.3 Identification and traceability Where appropriate, the organization shall identify the product by suitable means throughout product realization. The organization shall identify the product status with respect to monitoring and measurement requirements. Where traceability is a requirement, the organization shall control and record the unique identification of the product (see 4.2.4). NOTE In some industry sectors, configuration management is a means by which identification and traceability are maintained. 7.5.4 Customer property The organization shall exercise care with customer property while it is under the organization's control or being used by the organization. The organization shall identify, verify, protect and safeguard customer property provided for use or incorporation into the product. If any customer property is lost, damaged or otherwise found to be unsuitable for use, this shall be reported to the customer and records maintained (see 4.2.4). NOTE Customer property can include intellectual property. 7.5.5 Preservation of product The organization shall preserve the conformity of product during internal processing and delivery to the intended destination. This preservation shall include identification, handling, packaging, storage and protection. Preservation shall also apply to the constituent parts of a product.



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7.6 Control of monitoring and measuring devices The organization shall determine the monitoring and measurement to be undertaken and the monitoring and measuring devices needed to provide evidence of conformity of product to determined requirements (see 7.2.1). The organization shall establish processes to ensure that monitoring and measurement can be carried out and are carried out in a manner that is consistent with the monitoring and measurement requirements. Where necessary to ensure valid results, measuring equipment shall: a) Be calibrated or verified at specified intervals, or prior to use, against measurement standards traceable to international or national measurement standards; where no such standards exist, the basis used for calibration or verification shall be recorded; b) Be adjusted or re-adjusted as necessary; c) Be identified to enable the calibration status to be determined; d) Be safeguarded from adjustments that would invalidate the measurement result; e) Be protected from damage and deterioration during handling, maintenance and storage. In addition, the organization shall assess and record the validity of the previous measuring results when the equipment is found not to conform to requirements. The organization shall take appropriate action on the equipment and any product affected. Records of the results of calibration and verification shall be maintained (see 4.2.4). When used in the monitoring and measurement of specified requirements, the ability of computer software to satisfy the intended application shall be confirmed. This shall be undertaken prior to initial use and reconfirmed as necessary. NOTE See ISO 10012-1 and ISO 10012-2 for guidance. 8 Measurement, analysis and improvement 8.1 General The organization shall plan and implement the monitoring, measurement, analysis and improvement processes needed a) To demonstrate conformity of the product, b) To ensure conformity of the quality management system, and c) To continually improve the effectiveness of the quality management system. This shall include determination of applicable methods, including statistical techniques, and the extent of their use. 8.2 Monitoring and measurement 8.2.1 Customer satisfaction As one of the measurements of the performance of the quality management system, the organization shall monitor information relating to customer perception as to whether the organization has fulfilled customer requirements. The methods for obtaining and using this information shall be determined. 8.2.2 Internal audit



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The organization shall conduct internal audits at planned intervals to determine whether the quality management system a) Conforms to the planned arrangements (see 7.1), to the requirements of this International Standard and to the quality management system requirements established by the organization, and b) Is effectively implemented and maintained. An audit programme shall be planned, taking into consideration the status and importance of the processes and areas to be audited, as well as the results of previous audits. The audit criteria, scope, frequency and methods shall be defined. Selection of auditors and conduct of audits shall ensure objectivity and impartiality of the audit process. Auditors shall not audit their own work. The responsibilities and requirements for planning and conducting audits, and for reporting results and maintaining records (see 4.2.4) shall be defined in a documented procedure. The management responsible for the area being audited shall ensure that actions are taken without undue delay to eliminate detected nonconformities and their causes. Follow-up activities shall include the verification of the actions taken and the reporting of verification results (see 8.5.2). NOTE See ISO 10011-1, ISO 10011-2 and ISO 10011-3 for guidance. 8.2.3 Monitoring and measurement of processes The organization shall apply suitable methods for monitoring and, where applicable, measurement of the quality management system processes. These methods shall demonstrate the ability of the processes to achieve planned results. When planned results are not achieved, correction and corrective action shall be taken, as appropriate, to ensure conformity of the product. 8.2.4 Monitoring and measurement of product The organization shall monitor and measure the characteristics of the product to verify that product requirements are fulfilled. This shall be carried out at appropriate stages of the product realization process in accordance with the planned arrangements (see 7.1). Evidence of conformity with the acceptance criteria shall be maintained. Records shall indicate the person(s) authorizing release of product (see 4.2.4). Product release and service delivery shall not proceed until all the planned arrangements (see 7.1) have been satisfactorily completed, unless otherwise approved by a relevant authority, and where applicable by the customer. 8.3 Control of nonconforming product The organization shall ensure that product which does not conform to product requirements is identified and controlled to prevent its unintended use or delivery. The controls and related responsibilities and authorities for dealing with nonconforming product shall be defined in a documented procedure. The organization shall deal with nonconforming product by one or more of the following ways: a) By taking action to eliminate the detected nonconformity; b) By authorizing its use, release or acceptance under concession by a relevant authority and,

where applicable, by the customer; c) By taking action to preclude its original intended use or application.



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Records of the nature of nonconformities and any subsequent actions taken, including concessions obtained, shall be maintained (see 4.2.4). When nonconforming product is corrected it shall be subject to re-verification to demonstrate conformity to the requirements. When nonconforming product is detected after delivery or use has started, the organization shall take action appropriate to the effects, or potential effects, of the nonconformity. 8.4 Analysis of data The organization shall determine, collect and analyse appropriate data to demonstrate the suitability and effectiveness of the quality management system and to evaluate where continual improvement of the quality management system can be made. This shall include data generated as a result of monitoring and measurement and from other relevant sources. The analysis of data shall provide information relating to a) Customer satisfaction (see 8.2.1), b) Conformance to product requirements (see 7.2.1), c) Characteristics and trends of processes and products including opportunities for preventive action, and d) Suppliers. 8.5 Improvement 8.5.1 Continual improvement The organization shall continually improve the effectiveness of the quality management system through the use of the quality policy, quality objectives, audit results, analysis of data, corrective and preventive actions and management review. 8.5.2 Corrective action The organization shall take action to eliminate the cause of nonconformities in order to prevent recurrence. Corrective actions shall be appropriate to the effects of the nonconformities encountered. A documented procedure shall be established to define requirements for a) Reviewing nonconformities (including customer complaints), b) Determining the causes of nonconformities , c) Evaluating the need for action to ensure that nonconformities do not recur, d) Determining and implementing action needed, e) Records of the results of action taken (see 4.2.4), and f) Reviewing corrective action taken. 8.5.3 Preventive action The organization shall determine action to eliminate the causes of potential nonconformities in order to prevent their occurrence. Preventive actions shall be appropriate to the effects of the potential problems. A documented procedure shall be established to define requirements for a) Determining potential nonconformities and their causes, b) Evaluating the need for action to prevent occurrence of nonconformities, c) Determining and implementing action needed,



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d) Records of results of action taken (see 4.2.4), and e) Reviewing preventive action taken.

The following format may be used to summarize the issues and strategies required within your departmental Human resources plan:-

HR ACTIVITY

ISSUES

STRATEGIES

TIME FRAME

Recruitment

Departmental position review

Staff development and training

Organization Change

Turn over rate analysis

Leave/termination anlysis

Demographic analysis

Leave utilization

Diversity

Performance development planning

Budget

Communications



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Other HR Issues

WHAT ARE SKILLS AND SKILL BLOCK: Skills are the basic components of a skill based system. These skills typically are grouped into skill blocks that include predefined set of skills, knowledge and tasks. When performed by employees, these skill blocks will add value to the work process and increase the likelihood of the work units success. Skills and skill blocks should be directly related to the business needs of the agency. Based on business needs, agency should encourage employees in a skill- based system to achieve the highest potential skill level required. Example: Skill Block: Dump truck – Single Axle. A. Spreading Material.

Stone: Determine where stone is needed and spread in a manner that does not require additional work and equipment to level. uses chain setting effectively to ensure proper application of stone.

Asphalt: spread material uniformly and ensure proper placement. B. Hauling and dumping material: Determines appropriate dumping locations, hauls (with cover) dumps in areas without damage to equipment C. Snow removal: Load spreader and plow .on truck, install chains. If required, set appropriate settings on spreader pushes snow and operate spreader according to instructions. D. Towing equipment: Hook unhooks and pulls and maneuvers light duty equipment. E. Prevention Maintenance: Perform daily operator checklist and rectify all minor problems determined while performing the checklist. Change oil, grease, change filters keep all fluids at proper level How are skill-Based systems used? Skill-based system can serve as a way to integrate human resource practices under the compensation management system. Agencies that elect to use skill-based systems need to consider exactly how they will be used to support the agency‘s mission and desired strategic outcomes. Furthermore, agencies will



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need to determine the extent to which this type of system will import and affect the agency‘s human resource practices.

Training and development: Connection to agency business need is the corner stone to skill-based systems. The agency‘s commitment to learning is vital to the success of the system. The skill identified within a skill block may as curriculum for training. Training plan should be well documented, include specific training objectives and communicated to employees.

.

Recruitment and selection: System can be developed to identify knowledge and skills for recruiting and assessing applicants for agency positions.

Performance Management: System can be used to support the assessment of employee performance.

Compensation decision: Systems will determine how pay will be administered based on defined skill blocks and guide other pay decision.

What are the steps for developing skill-based system?

1. Identify the group of employees to be covered. 2. Gather data: Identify knowledge and skills that are important to the work unit and can be

objectively measured. 3. Development skill and skill inventories: based on the information identified in the data

collection step, skill inventories are developed that list the discrete knowledge and skills needed to complete the required tasks.

Workforce Profile:



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The Role of the HR Officer

The maintenance of workplace discipline is strictly a function of line management. Human

Resources Officer should be available to assist line management where required. As far as possible,

the Human Resources Officer should, in consultation with the official chairing hearing, ensure that

disciplinary action taken is procedurally and substantively fair.

The Human Resources Officer should be available to advise and assist all employees on all

disciplinary matters.

The Human Resources Officer must not impose penalties, nor hear appeals in respect of own

subordinates or immediate Supervisors.

The Human Resources Officer is responsible for:

Ensuring that the complaint form properly identifies the offence and is otherwise

correctly completed

Ensuring that the alleged offender is aware of the charges against him/her

Interviewing and taking statements from the Complainant, accused and any witness

Investigating the domestic circumstances of the alleged offender, when necessary

Ensuring that all facts are collated marshalled and presented without bias.

Advising the Complainant, accused, witness (as) and representative of their roles and

rights

Ensuring that documentation pertaining to the hearing is forwarded to the appropriate

officials

Advising the accused and his representatives of progress made for cases that are pending

or in recess.

The Human Resources Officer may at his/her discretion recommend that a concluded disciplinary

case be reopened in instances where gross non-compliance to the Disciplinary Code is evident.



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The Role of the Representative

Any employee, against whom formal disciplinary proceedings are held may at his request, be

accompanied at the initial and any subsequent hearing by a colleague from the same working

section, or in the case of an employee who is represented by a properly constituted consultative

committee, by a member of such a committee. An employee who is a Union member may be

represented by the appropriate Part-time or Full-time Shop Steward, in accordance with the

provisions of the Recognition and Procedural Agreement between SBCGT and Union. Legal

representation or representation by non-Company persons during internal Company enquiries is not

permitted.

The representative has no right to insist on the employee being accompanied if he does not wish it;

that is, a representative will attend a disciplinary hearing only at the request of the employee. He

will be invited to comment on the evidence.

The representative may ask question and cross-question during the disciplinary hearing, but may not

give evidence during such hearings.

The representative may make submissions to the hearing official on the guilt or otherwise of the

accused prior to the hearing official making his finding. He may also make submissions to the

hearing officials on the mitigating factors to be considered and on the penalty to be imposed.

Should the representative‟s comments at the hearing be of such a nature as to warrant re-

consideration of certain matters or further investigations, time should be allowed for this and, if

necessary, the enquiry recessed.

6.5.9 Dismissal Procedure

a) A direct Department Manager may recommend that an employee be dismissed.

b) For the purpose of the dismissal procedure, a direct Department Manager is defined

as an employee graded D-lower or above who has a supervisory link to the employee

concerned.

c) Following a disciplinary hearing outcome being advised to the employee who results

in the recommendation for a dismissal and the employee accepts the

recommendation; the Hearing Official will refer the case documentation for review to

the relevant Manager for the department concerned.

d) The relevant Manager will endeavor to review the case within forty-eight hours/two

working days and endorse or reject the recommendation.

e) If the recommendation for dismissal is endorsed, the hearing official shall refer the

recommendation to the Human Resources Officer who will review the case with the

relevant Head of Department.



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f) If the recommendation for dismissal is rejected, the case shall be referred to the

Human Resources Officer and the original hearing official.

g) The relevant Manager may sanction the recommendation in writing, thereby effecting

dismissal, or reject it. If the recommendation is rejected, action 8.6 above shall be

applied.

h) The employee shall be notified of the decision verbally by the Hearing Official. If the

employee is dismissed, the employee will be notified in writing. This notification

shall be signed by the relevant Executive Committee Member.

i) Every employee has the right to appeal against a decision to dismiss him/her. The

appeal procedure will apply as outlined in Section 9.

6.6 Disciplinary Appeal Procedure

6.6.1 Every employee has the right of appeal against any decision which involves any entry on

his/her disciplinary record and which may thus affect his future employment prospects.

6.6.2 Any employee who wished to appeal against the outcome of any disciplinary hearing against

him/he must notify the Human Resources Officer in writing within two days of being notified

of the outcome of the disciplinary hearing. The right of appeal must be based on one or more

of the following appeal grounds.

i Dispute of Guilt

ii Severity of Penalty/Mitigating Factors

iii Procedural Inconsistencies

iv New Evidence

6.6.3 Appeals against Verbal, Recorded and Severe Warnings in terms of 7.6.2 (i) and (ii) may be

referred to the official at the level above the official who originally heard the case. The

decision of the Appeal Hearing Official shall be final and no further appeal level shall be

available.

6.6.4 Appeals against recommendations for Final Warnings and Dismissals shall be heard by the

relevant Executive Committee member. If the sanction was originally imposed by a

Manager, the accused may request the Disciplinary Review Committee to review the case.

6.6.5 Appeals in terms of 7.6.2 (iii) shall be reviewed by the Human Resources Officer may refer

the case back to the original Hearing Official for further investigation and/or re-hearing,

where after the procedure as per 7.6.3 and 7.6.4 above shall apply.

6.6.6 Appeals in terms of 7.6.2 (iv) shall be heard by the original hearing Officer and thereafter in

terms of 7.6.3 and 7.6.4. The decision as to whether the grounds of appeal constitute new

evidence shall rest with the Human Resources Officer with the employee representative.



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6.6.7 The employee shall be present at the appeal hearing and shall be entitled to a representative

in terms of Section 6 of the Disciplinary Code, except at the Disciplinary Review Committee

level, where the procedure as outlined under 7.6.9 and 7.6.10 shall apply.

6.6.8 The Disciplinary Review Committee shall be chaired by the Operations manager and shall

comprise the Human Resources Officer and Senior representatives of other Department. .

6.6.9 When an employee requests that his case be referred to the Disciplinary Review Committee

for a review, he may at the same time request that he or his representative be invited to make

representation or motivate his grounds of appeal in person. The Disciplinary Review

Committee shall however review each case on its own merits and take decisions

independently.

6.6.10 The Disciplinary Review Committee shall have the authority to uphold or reduce a penalty

imposed by the Head of Department. It will also have the authority to impose a more severe

disciplinary action should it be found that the offence committed warranted a more severe

penalty. The Disciplinary Review Committee may refer a case back to the Head of

Department or the Human Resources Officer for re-hearing or for further investigation.

6.6.11 The decision of the Disciplinary Review Committee will be final and should also be read in

conjunction with 7.6.13. The Human Resources Officer shall inform the employee of the

decision of the Disciplinary Review Committee. In addition, the Chairperson of the

Disciplinary Review Committee will notify the employee of the decision, in writing.

6.6.12 Should an appeal against dismissal be successful, the employee will be reinstated

retrospectively to the date on which his services were terminated and he will be advised in

writing to return to work. This also applies where an appeal against a dismissal is reduced to

a warning in terms of 7.6.3 (i).

6.6.13 In the event of the dismissal being upheld by the Disciplinary Review Committee, the

dismissal shall be effective from the date of the employee‟s services were terminated by the

Head of Department. The Chairman of the Disciplinary Review Committee shall inform the

employee in writing of the outcome of the Committee‟s Review.

6.6.14 It should be noted that the Disciplinary Review Committee, referred to above, should only

have the authority to review disciplinary cases that have been dealt with by Manager.

Classification of Offences – Guide to Disciplinary Action

Nature of Offence 1st

Offence

2nd

Offence

3rd

Offence

4th

Offence

Absenteeism

Absenteeism SW FW DC

Desertion DC

Offences related to control at work



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Poor time keeping VW/RW SW FW DC

Sleeping of duty SW FW DC

Sleeping on duty RW SW FW DC

Negligent loss, driving, damage or misuse of Company property RW SW FW DC

Unsatisfactory work performance RW SW FW DC

Offences related to Indiscipline or Disorderly behaviour

Disobedience & related offences (general) RW

SW

DC

Abuse and related offences

Abusive language

Insubordination

SW

SW

FW

FW

DC

DC

Disorderly behaviour and related offences

Disorderly Behaviour FW DC

Threatening violence FW DC

Assault/attempted assault FW DC

Fighting FW DC

Riotous behaviour FW DC

Sexual Harassment FW DC

Discrimination DC

Alcohol and drug offences

Intoxication while on duty

FW

DC

Wilful lose, damage or misuse of Company property FW DC

Offences related to dishonesty

Bribery or corruption

False evidence

Forgery and uttering

Misappropriation

Fraud

Theft of / unauthorised possession of Company property

Breach of Trust

DC

DC

DC

DC

DC

DC

DC

Industrial Action

Intimidation

Sabotage

Illegal strike/lockout

FW

DC

FW

DC

DC

The schedule of sanctions merely provides a guideline and the following factors shall be considered

when arriving at a decision: Disciplinary record, length of service, position of employee, any other

mitigating or aggravating circumstances raised at the hearing.



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15. SUCCESSION PLAN POLICY

15.1 Introduction

The staff compliment of SBCGT is very limited and thus the need to have succession planning in

place. If an employee is not available one should always have someone skilled and ready to act as a

replacement.

15.2 Objectives

• To identify replacement needs

• To provide opportunities for high potential workers (retention)

• To increase pool of promotable employees

• To support implementation of business plan

• To guide individuals in their career paths

• To encourage the advancement of diverse groups

• To improve ability to respond to changing environmental demands

• To improve employee morale

• To cope with the effects of downsizing, attrition, retirements

15.3 Procedure

• Assess the potential vacancies in leadership and other key positions (who is of retirement

age? Which positions/departments/divisions are most affected?

• Assess the readiness of current staff to assume the positions (competencies, IDP‟s discussed

under Training and Development)

• Develop strategies to address these needs based on the skill gaps.



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A Performance Plan is a written document between an employee (or team) and his or her manager.

The performance plan describes what has to be done during the performance cycle, how well it has

to be done, and how the accomplishment will be measured. This part of the plan is based primarily

on the goals of SBCGT and the employee's job description

Performance Management shall be a continuous process with the following timeframes attached:



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6.3 Special Cases

Suspension

a) An employee may be suspended from work immediately if he/she has allegedly

committed or is allegedly involved in any one of the following offences:

Assault/attempted assault

Desertion

Sleeping on duty

Negligent loss, driving, damage or misuse of company property

Abuse of electronic/data facilities

Sexual Harassment

Fighting

Riotous Behaviour

Alcohol and drug offences

Wilful loss, damage or misuse of company property

Theft/Unauthorised possession of company property

Breach of Trust

Offences related to dishonesty

Offences related to Industrial Action

Any act or omission which intentionally endangers the health or safety of

others, or is likely to cause damage to Company property

Interference with disciplinary and/or grievance investigations

Abusive or provocative language (when it is likely to cause a disturbance)

Insubordination (if the situation shows signs of getting out of control)

Persistent refusal to obey instructions.

In certain instances the Supervisor will recommend that the offender be

removed from the work place pending investigation of the case. He/she will

take immediate steps to report the matter to his/her immediate Supervisor,

who will raise the matter with the CEO. Irrespective of the outcome, the

employee will be paid for days he/she was suspended;

It is mandatory to liase with the Human Resources Officer prior to suspending

an employee in order to endure that the suspension is procedurally and

substantively fair.

Poor Work Performance

Cases involving substandard or deteriorating work performance are to treat differently from those

regarded as transgressions of misconduct.



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The following guidelines should be considered when dealing with such cases. An attempt should be

made to resolve alleged poor work performance by means of counselling the individual involved.

Where poor the supervisor identifies work performance, the following procedural action should be

considered:

a) Investigate and identify the problem area(s)

b) Communicate this to the individual concerned, and jointly agree on the appropriate

plan of action in order to resolve the matter. If deemed necessary and relevant, norms

should be established by arranging appropriate task lists and the time duration

allowed for the completion of each task;

c) Consideration should be given to the appointment of a coach or mentor to assist the

employee to improve performance;

d) Accurately minute the agreed contents of any agreement put in place and provide the

Human Resources Officer with a copy for record keeping purposes;

e) Regular evaluation and follow up on the agreed plan of action should be made;

f) Should counseling fail to produce the desired improvement, alternative action should

be considered in liaison with the Human Resources Officer. Alternative action could

include, but is not limited to, termination of the employment contract on the grounds

of incapacity, demotion or a transfer to an alternative position. The employee,

throughout this process, will be entitled to representation.

6.3 Offences outside normal working hours

SBCGT reserves the right to take any action it may deem appropriate against employees who are, in

the opinion of SBCGT, guilty of gross misconduct not merely in their working situations. This is

particularly so where the nature of the misconduct may affect the employment relationship with any

other party. Actions that directly relate to the nature of the business are also liable for disciplinary

action.

Court Actions

Where an employee has been criminally charged or legal action has been instituted for an

employment – related breach, SBCGT reserves the right to take disciplinary action against the

employee for the alleged offence, in terms of this Code.

6.4 Classification of Offences:

Offences are classified into five major categories.

6.4.1 Absenteeism

6.4.2 Offences related to Control at Work



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6.4.3 Offences relating to indiscipline or disorderly behavior

6.4.4 Offences related to dishonesty

6.4.5 Industrial Action

6.4.1 Absenteesim

Absenteeism in the disciplinary context means being absent from work for an entire working shift, or

part thereof, without the expressed permission from a direct supervisor.

A sanction of dismissal can apply for the first offence of being absent without permission provided

that the employee was absent for three continuous working days without a valid reason.

a) Absent without leave;

b) Desertion: Leave the work place without intending ever to return; leave without help

or support; abandon; leave without authority or permission.

6.4.2 Offences related to Control at Work

a) Poor Time Keeping and related offences

a) Reporting late for work

b) Leaving work early

c) Extended or unauthorised breaks during working hours

d) Persistently committing all or any of the above.

b) Sleeping on duty

Any employee who is found asleep on duty, whether or not such an action constitutes a hazard to the

safety and health of the offender or others or leads to damage to Company property, shall be deemed

guilty of an offence.

c) Negligent Loss, Driving, Damage or Misuse of Company property

a) Negligent loss of Company property: any act whereby an employee, through

carelessness or negligence, loses Company property or is unable to account for it

satisfactorily.

b) Negligent driving; driving a company owned or rented vehicle without due care,

whether such an act results in an accident or not.

c) Negligent damage to Company property: any act whereby an employee through

carelessness or negligence causes or allows Company property to become damaged.

d) Misuse of Company property: using Company property for a purpose other than that

for which it was intended.



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d) Unsatisfactory Work Performance

a) Carelessness: Performance of a task or duty without the exercise of due care an

attention.

b) Negligence: failure to exercise proper care and regard to the manner of discharging

duty to the extent that tasks have to be repeated or equipment or persons are at risk of

damage or injury.

c) Inefficiency: failure to carry out work at the required standard or failure to complete

tasks within the given reasonable time limits, without reasonable cause. This includes

poor supervision.

d) Loafing: passing time idly or failing without reasonable cause to complete tasks set.

6.4.3 Offences Related to Indiscipline or disorderly behavior.

a) Disobedience and related offences

a) Refusing to obey an instruction: deliberate refusal to carry out a lawful and/or

reasonable instruction given by a person in authority and within the area of his

jurisdiction.

b) Failing to obey an instruction: failure to obey a lawful instruction given by a person

in authority and within the framework of his/her jurisdiction.

c) None-compliance with established procedure / standing instructions: failure to

follow establish procedures.

d) Abuse of electronic / Data facilities: excessive use / abuse of e-mail and

communication facilities; storage and/or transmission of material of discriminatory

nature; storage and/or transmission of pornographic material; unauthorised

monitoring and interception of electronic documentation.

6.4.3.1 Abuse and related offences

a) Abusive Language:

The uttering of any words or the publication of any writing expressing or showing hatred, ridicule or

contempt for any person or group of persons.

The offence I more serious when it is wholly or mainly because of his/her/their nationality, race,

colour, ethnic origin, sex, marital status, religion, creed, political opinion, social or economic status,

degree of physical or mental ability, sexual orientation or culture.



59

b) Insubordination:

Insolence towards a superior shown by action or words.

6.4.3.2 Disorderly behaviour and related offences

a) Disorderly behaviour:

Indulging in rough or unruly behaviour or practical jokes whether or not such behaviour endangers

the safety or health of others or the smooth running of the work place.

b) Threatening violence:

Threatening to do physical injury to any other person.

c) Fighting:

Physical contact between two or more persons, engaging in or inciting a group of persons to indulge

in disorderly behaviour or wilfully to damage Company property.

d) Riotous behaviour:

Unruly behaviour between two or more persons, engaging in or inciting a group of persons to

indulge in disorderly behaviour or wilfully to damage Company property.

e) Sexual Harassment:

Any unwanted or unwelcome sexual advances, requests for sexual favours and other verbal or

physical conduct of a sexual nature when submission to or rejection of this conduct explicitly or

implicitly affects an individual‟s employment, causes unreasonable interference with an individual‟s

work performance or creates an intimidating, hostile or offensive work environment.

f) Discrimination:

Any act whereby an employee discriminates against any other employee or group of employees on

the grounds of nationality, race, colour, ethnic origin, sex, marital status, religion, creed, political

opinion, social or economic status, degree of physical or mental ability, sexual orientation or culture.

Willful loss, damage or misuse of Company property

Willful loss: any act whereby an employee willfully or deliberately loses or causes Company

property to be lost.



60

Willful damage: any act whereby an employee willfully or deliberately damages, or allows or causes

damage to Company property.

Willful misuse: any act whereby an employee willfully or deliberately misuses Company property.

6.4.5 Offences Related to Dishonesty

Disciplinary cases involving the following offences must be reported to the Human Resources

Officer.

Bribery or Corruption

Giving or receiving or attempting to give or receive any bribe or inducing or attempting to induce

any person to perform any corrupt act.

False Evidence

Deliberately giving untrue, erroneous or misleading information or testimony whether

verbally or in writing.

Forgery and uttering

Falsifying or changing any documentation with fraudulent intent or attempting to do so.

Uttering or attempting to utter fraudulent or false statements or documents.

Misappropriation

Applying or attempting to apply to a wrong use or for any unauthorised purpose, any funds, assets or

property belonging to SBCGT.

Theft of or unauthorised possession of Company property

Stealing or attempting to deprive SBCGT permanently of its rightful ownership.

Being in possession or disposing of Company property without due authorisation.

Fraud

The unlawful making of a misrepresentation with intent to defraud, which causes actual or potential

prejudice to another party.

Breach of Trust



61

Actions or conduct of an employee that cause a reasonable suspicion of dishonesty or mistrust and

for which there exist extraneous evidence to prove a breakdown in the relationship of trust between

the concerned employee and SBCGT. This will include a situation where the conduct of the

employee has created mistrust, which is counterproductive to SBCGT‟s commercial activities or to

the public interest, thereby making the continued employment relationship an intolerable one.

6.4.5 Industrial Action

Intimidation

Any act by an employee, whether by himself or in concert with other persons (whether or not such

other persons are employees of SBCGT), to intimidate any employee with the object of compelling

him to take part in any strike or other action which interferes with the normal operations of SBCGT.

Intimidation is an offence even if all the procedures for the settlement of the industrial disputes and

grievances and the Law have been exhausted.

Sabotage

Any deliberate action by an employee that results in the interference with the normal operations of

SBCGT by damaging any machinery, or equipment or by interrupting any supplies of power, or

services necessary to the operations.

Illegal Strike/Lockouts

Participation in any illegal strike action, lockouts, boycott or any other form of work disruption not

in accordance with the applicable statute that constitutions a blatant refusal to work. Examples of

such action include, inter alia, work-to-rule: overtime ban; go-slow.

Any disciplinary matter referred to in this subsection will not preclude SBCGT from exercising its

common law rights to terminate the employment contract in the case of illegal industrial action.

6.5 Penalties

Classification of Penalties:

6.5.1 Verbal Warning

6.5.2 Recorded Warning

6.5.3 Severe Warning

6.5.4 Final Warning

6.5.5 Dismissal

6.5.6 Demotion

6.5.7 Transfer

6.5.8 Alternative Penalty to Dismissal

6.5.1 Verbal Warning



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Any supervisor may, at any time and at his discretion, reprimand an employee without

completing a complaint form, in which case there will be no entry made on the employee‟s

disciplinary record. When a verbal warning if given, the supervisor must ensure that the

employee being reprimanded is made aware of the existence and function of the Disciplinary

Code. A verbal warning is usually issued where the offence is of a minor nature.

6.5.2 Recorded Warning

Application: This may be given for a repetition of an offence for which an unrecorded

warning has been given, or it may be given for a first offence.

Validity Period: The employee must be informed that the warning will remain in force for a

period of six months.

6.5.3 Severe Warning

Application: Given for a repetition of the same offence or similar offence during a period

when a recorded warning is still in effect, or for a first offence of a more serious nature.

Validity Period: The employee must be informed that the warning will remain in force for a

period of nine months.

6.5.4 Final Warning

Application: Given for a repetition of the same offence or a similar offence during a period

when a severe warning is still in effect or depending on the nature thereof, for a first offence

of a serious nature. In the case of an employee being found guilty of an offence of a

dissimilar nature within the prescribed period, the hearing official may, at his discretion,

issue a comprehensive final warning on the understanding that if any offence is committed

within the next 12 months, it will render him liable for dismissal.

Validity Period: A final warning is effective for a period of twelve months. The employee is

advised in writing by the official hearing the case of the period applicable and reminded that

a repetition of the offence or the committing of any similar serous offence within the

prescribed period will render him liable for dismissal. A copy of the notice shall be

forwarded to the Human Resources Department.

6.5.5 Dismissal

Employees Provident Fund Act, 1952

Sl. No.

Section / Clause

Ref.

Basic Requirement Of the Section

Requirements For Implementing Complied with

(Yes/No)



63

1. Sec 1(2) This Act is applicable to whole of India Except the State Of Jammu And Kashmir It applies to every establishment in which 20 or more persons are employed.

2. Sec 6, 6A, 6C

(I) Total contribution by the employer shall be 13.61% of wages, Dearness Allowance and Retaining Allowance payable to each of the employee. (i) 8.33% shall be paid to the credit of

Employee Pension Fund under Pension Scheme.

(ii) 3.67% shall be paid to the credit of Provident Fund.

(iii) .50% shall be paid to the credit of Employee‘s Deposit Link Insurance Scheme.

(iv) 1.10% shall be paid to the credit of Insurance scheme for the Administration Charges of the scheme.

(v) 0.01% Inspection Charges (II) Total contribution by the employee shall be 12% of the wages. Employees may contribute more than 12% but employer is under no obligation to contribute more than 12%. Notes: 1. Wages for the purpose means all emoluments earned by an employee while on duty (or on leave or on holidays with wages) but does not include: (i) The cash value of any food concessions. (ii) Any Dearness Allowance, House Rent

Allowance, Overtime Allowance, Bonus, Commission or any other similar allowance payable to employee.

2. Para. 7 of Employee‘s Deposit Link Insurance Scheme, 1976 – Where the monthly pay of the employee exceeds Rs. 6500, the contribution payable by the employer in respect of Deposit Link Insurance Scheme shall be calculated on a monthly pay of Rs. 6500.

Calculate the amount of contribution as per the section



64

3. Para. 38 of PF

Scheme, Para 8 of Deposit Link ins. Scheme.

Employer shall deposit employer‘s contribution and employee‘s contribution within 15 Days of the end of every month. Separate cheques shall be drawn on account of contributions and administration charges.

Deposit the contributions within 15 days of the end of each month drawing separate cheques for contributions and administration charges.

4. Para 38(2) of

PF scheme.

Employer shall forward a monthly abstract in such form specified by the commissioner within 25 days of the end of the month to the commissioner.

Deposit the monthly abstract in the prescribed form to the commissioner within 25 days of the end of each month.

5. Para 38(3) of

PF Scheme

Employer shall send Annual contribution Statement in Form 6-A to the commissioner within 1 month from the close of the Year. Employer shall maintain duplicate copies of such Statement on his records and such statements shall be produced on demand to the Inspector during Inspection.

Send Annual contribution Statement in Form 6-A to the commissioner within one month of the end of the year.

6. Para 34, 36(2) of

PF Scheme

and Para. 10

of Deposit

Link Insuranc

e Scheme.

The employer before taking any person into employment shall ask him to state whether he is a member of the fund or not and if he is, ask for his account No. and name and particulars of the last employer. Such declaration shall be made in Form 2. A return shall be send to the commissioner in Form 5 within 15 days of the end of each month together with declaration of the employees in Form 2. Employer shall maintain inspection book in such form as specified by the commissioner for the inspector to record his observation on his visit to the establishment.

Receive the declaration from the existing and new employees in Form 2. Send the return in Form 5 together with declaration of the employees in form 2 to the commissioner within 15 days of the end of each month. Prepare the inspection book as specified by the commissioner.

7. Para 36A of PF

Scheme

Every employer shall furnish particulars of all branches and department owners, occupiers, partners, manager to the Regional Commissioner in Form 5A and also intimate any changes there in within 15 days of such change.

Furnish the particulars of all branches etc. in Form 5A to the Regional Commissioner.

8. Para. 35 and

Para. 40 of PF

Scheme

Every employer shall prepare a Contribution Card in Form 3 or Form 3A in respect of every employee. The amount recovered every month from the wages of the employee as well as contribution made by the employer shall be entered by the employer in the contribution card opened in the name of each employee.

Prepare the Contribution Card in Form 3 or form 3A in respect of each employee. Entered the amount of employer‘s and employee‘s contribution in the contribution card.



65

9. Para. 43 of PF

Scheme

Every employer shall within one month form the end of each month send the Contribution Card to the commissioner together with statement in From 6

Prepare the statement in From 6 and send the statement along with Contribution Card to the Commissioner within one month from the end of each month.

Notes: 1. Sec. 12 of the Act. —No employer shall reduce the wages of the employee on

account of the contribution made by the employer.



66

India Law Summary

1.Child labour:

Constitution of India, Article 24 ,

Prohibition of employment of children in factories, etc.

No child below the age of fourteen years shall be employed to work in any factory or mine or engaged in

any other hazardous employment.

The Factories Act,1948, Chapter VII (Section 67)

No child below the age of fourteen years shall be employed to work in any factory or

mine or engaged in any other hazardous employment

The Child Labour Prohibition and Regulation Act,1986

No Child who has not completed his fourteenth year shall be required or allowed to

work in any factory.

Shops and Commercial Establishment Act.

No child shall be required or allowed to work whether as an employer or otherwise in any

establishment, not withstanding that such child is a member of the family of the employer.

U.S. Laws Prohibiting the Importation of Goods Made with Child Labor

The Sanders Amendment to the Trade Act of 1930

The Tariff Act of 1930 prohibits the importation of products made with “forced or indentured labor” into the

U.S. In 1997 the Sanders Amendment clarified that this applies to products made with “forced or indentured

child labor.”

Young Workers

The Factories Act,1948 Chapter VII( Section 68):

A child who has completed his fourteenth year or an adolescent shall not be required

of allowed to work in any factory unless:-

(a) a certificate of fitness granted with reference to him under section 69 is in the custody of the

Manager of the factory, and

(b) such child or adolescent carries while he is at work a token giving a reference to such

certificate..

(c) Document of Proof of Age

Industrial Employment (Standing order) Central rules and schedule I – B Section 2A

“Every industrial establishment shall maintain a service card in respect of each workmen

in the form appended to these orders, wherein particulars of that workers shall be

recorded with the knowledge of that workman and duly attested by an officer authorized

in this behalf together with date”.

Clause 1 (iv) “Every workman shall indicate his exact date of birth to the employer or



67

the officer authorized by him in this behalf, at the time of entering service of the

establishment.

The employer or the officer authorized by him in this behalf may before the date of birth of a workman is

entered in his service card, require him to supply:

(i) His matriculation or school leaving certificates granted by the Board of Secondary Education or

similar educational authority.

(ii) A certified copy of his date of birth as recorded in the registers of a municipality, local authority

or Panchayat or Registrar of Births;

(iii) In the absence of either of the aforesaid two categories of certificates, the employer or the officer

authorized by him in this behalf may require the workman to supply, a certificate from a

Government Medical Officer not below the rank of an Assistant Surgeon, indicating the probable

age of the workman provided the cost of obtaining such certificate is borne by the employer;

(iv) Where it is not applicable to obtain a certificate from a Government Medical Officer, an affidavit

sworn, either by the workman or his parents, or by a near relative, who is in a position to know

about the workman’s actual or approximate date of birth, before of First Class Magistrate or

Oath Commissioner, as evidence in support of the date of birth given by him.

Please do not quote this law for non- compliance issues related to proof of age (This law is only applicable

to union territories and central government undertakings like coal mines). You can quote the standing

order rules of the respective state.

For Example:

In accordance with Industrial employment (Standing Orders), Punjab Rules1978, Rules 4 A( iii)

Every workman shall indicate his exact date of the birth to the employer or the officer authorized by him in

this behalf, at the time of entering the service of establishment. The employer or the officer authorized by him

in this behalf may before the date of birth of a workman is entered in his service card, require him to supply:









(iv) Where it is not practicable to obtain a certificate from a Government Medical Officer, an affidavit




2.Forced Labour:-

The Constitution of India Part-III, Article 23



68

Prohibition of traffic in human beings and forced labour

(1) Traffic in human beings and beggar and other similar forms of forced labour are prohibited and any

contravention of this provision shall be an offence punishable in accordance with law. The Bonded labour system (Abolition) Act, 1976

In accordance with section 4 of the Act

(1) On the commencement of the Act, the bonded labour system shall stand abolished and every bonded

labourer shall on such commencement, stand freed and discharged from any obligation to render any

bonded labour.

(2) After the commencement of this Act, no person shall-

(a) Make any advance under, or in pursuance of, the bonded labour system, or

(b) Compel any person to render any bonded labour or other form of forced labour.

3.Discrimination: -

The Constitution of India Article 14

Equality before law The State shall not deny to any person equality before the law or the equal protection of the laws within the

territory of India.


Prohibition of discrimination on grounds of religion, race, caste, sex or place of birth


Abolition of Untouchability "Untouchability" is abolished and its practice in any form is forbidden. The enforcement of any disability

arising out of "Untouchability" shall be an offence punishable in accordance with law.

The Equal Remuneration Act, 1976 Section 4

Duty of the employer to pay equal remuneration to men and women workers for same work or work of

similar nature

4. Freedom of Association: -

The Constitution of India Article 19(1)(c)

Freedom to form Union and Associations

The Trade Union Act, 1926 Section 17 & 18

Any seven or more members may by subscribing their names to the rules of the Trade Union and by otherwise

complying with the provisions of this Act can get itself registered under the Trade Union Act.



69

Section 17 : No office bearer or member of a registered trade Union shall be liable to punishment for

Criminal Conspiracy under Indian Penal Code,1860 in respect of any agreement between the members for

the purpose of furthering any such object of the trade union.

Section 18: No suit or other legal proceeding shall be maintainable in any civil court against any registered

union or any office bearer or member thereof in respect of any act done in contemplation or furtherance of a

trade dispute to which a member of a trade union is a party.

The Industrial dispute Act 1947, Section 24 T & U ,

No employer or workman or a trade union, whether registered or not, shall commit any act considered as

unfair labour practice. As per the prevailing Act of 1926, unfair labour practice includes:

i) Threatening workman with discharge or dismissal if they join trade union

ii) Threatening workmen of closure or lockout if a trade union is organized

iii) Granting wage increase during certain period to undermine trade union activities

5 Working Hours: -

The Factories Act, 1948

Chapter VI, SECTION 51 No adult worker shall be required or allowed to work in a factory for

more than forty eight hours in a week.


more than nine hours in any day.

Chapter VI, SECTION 55(1) [The period of work] of adult workers in a factory each day shall be

so fixed that no period shall exceed 5 hours and that no worker shall work for more than 5 hours

before he has had an interval of rest of at half an hour.

Chapter VI, SECTION 56 The period of work of an adult worker in a factory shall be so arranged

that inclusive of his interval for rest shall not spread over more than 10.5 hours in any day.


No employee shall be required or allowed to work in any shop or commercial establishment for

more than nine hours in any day and forty eight hours in any week.

Prohibition on women workers

Factories Act, 1948,Chapter VI, SECTION 66(1) (b)



70

No woman shall be required or allowed to work in any factory except between the hours of 6a.m. and

7p.m.

Provision regarding exclusion of women from employment during night shifts held discriminatory and

unconstitutional as violative of Article 14, 15(1) and 19(1)(g) of the constitution. Vasanta vs. Union of India,

2001(2) LLJ 843 Mad.


No woman, not withstanding that such woman is a member of the family of the employer, shall be

required or allowed to work, whether as an employee or otherwise, in any establishment before 6.00

a.m.

No such woman shall be required or allowed to work in any establishment after 8.30 p.m.

Notice of Normal work Hours Chapter VI, Section 61(1)

There shall be displayed and correctly maintained in every factory in accordance with the provisions

of subsection 108, a notice of periods of work for adults, showing clearly for every day the periods

during which adult worker may be required to work.

Overtime Hours Limit

The Factories Act, 1948 Chapter VI, SECTION 64 (4)

i. the total number of hours of work in any day shall not exceed ten

ii. the spread over ,inclusive of intervals for rest shall not exceed twelve hours in any one day.

iii. the total number of hours of work in a week including overtime shall not exceed sixty.

iv. the total number of hours of overtime shall not exceed fifty for any one quarter

Weekly rest Day

The Factories Act, 1948;Chapter VI, SECTION 52 (1)

No adult worker shall be required or allowed to work in a factory on the first day of the week.[The worker

must get one day rest in a week]

6.Compensation and Benefits: -

The Minimum Wages Act, 1948, Section 12 (1)

Where in respect of any scheduled employment a notification under section 5 is in force, the employer shall

pay to every employee engaged in a scheduled employment under him, Wages at a rate not less than the

minimum rates of wages fixed by such notification for that class of employees in that employment without any

deductions except as may be authorized with such time and subject to such condition as may be prescribed.



71

The Minimum Wages Act, 1948,Section 17 Where an employee employed on piecework for which minimum time rate and not minimum piece rate has

been fixed under this Act, the employer shall pay to such employee wages at not less than the minimum time

rate.

Constitution of Minimum Wages, The Minimum Wages Act, 1948,Section 2(h)

The following items shall not be regarded as part of the minimum wages:

a) The value of any house accommodation, supply of light, water, medical attendance.

b) the value of any amenity or any service excluded by general or special order of the

appropriate government.

c) any contribution paid by the employer to any pension fund or provident fund or under the

scheme of social insurance.

d) any travelling allowance or the value of any travelling concession.

e) Any sum paid to the person employed to defray special expense entailed on him by the nature

of his employment.

f) Any gratuity payable on discharge

Maintenance of records

The Minimum Wages Act, 1948,Section 18(1)

Every employer shall maintain such registers and records giving such particulars of employees employed by

him, the work performed by them, the wages paid to them, the receipts given by them, and in such particulars

and in such forms as may be prescribed.

Wage Records

The Payment of Wages Act, 1936[Section 13-A (2)]

Section 13-A(2) Every register and record required to be maintained under this section shall ,for the purpose

of this Act be preserved for a period of three years after the date of the last entry made therein.

Wage Slips

The Minimum Wages (Central) Rules, 1950

Section 26(2) A Wage Slips shall be issued by every employer to every person employed by him at least a day

prior to the disbursement of wages.

Section 26(3) every employer shall get the signature or thumb impression of every person employed on the

register of wage register of wages and slips.

Display of Minimum Wages , Minimum Wages (Central) Rules, 1950 Section 22



72

Notices [Form IX- A] containing the minimum rates of wages fixed together with [abstract of] the

Act, Rules made there under and the name and the name and address of the Inspector shall be

displayed in English and in a language understood by majority of the workmen in the employment [at

the main entrance to the establishment and its office] and shall be maintained in a clean and legible

condition

The Payment of Wages Act, 1936

Section 3: Responsibility for payment of wages on the employer.

Duration of wage period The Payment of Wages Act, 1936 Section 4:

The wage period shall not exceed one month.

Date of Payment and mode of Payment Section 5:

payment of wages before 7th day after the last day of the wage period (less than1000 workers) and10

th day

in case of others (employing more than 1000 employees).

Section 6: All wages shall be paid in current coin or currency notes or in both

The Equal Remuneration

The Equal Remuneration Act, 1976, Section 4:


similar nature.

Payment for Overtime hours worked

The Factories Act, 1948, Chapter VI, SECTION 59(1)

where a worker works in a factory for more than nine hours in any day or for more than 48 hours in any

week, he shall in respect of overtime work, be entitled towages at the rate of twice his ordinary rate of wages.

Leave with Wages

The Factories Act, 1948, Chapter VIIISection 79(1)

Every worker who has worked for a period of 240 days or more in a factory during calendar year shall be

allowed during the subsequent calendar year leave with wages at the rate of one day for every twenty days of

work performed by him during the previous calendar year.

Permissible Deduction

The Payment of Wages Act, 1936, Section 7

Deduction from the wages of an employed person shall be made only with the provisions of this Act and may

be following kinds only: -

(a) Fines

(b) Deduction for absence from duty.



73

(c) Deductions for damage to or loss of goods expressly entrusted to the employed person for custody or

loss of money for which he is required to account, where such damage or loss is directly attributable to

his neglect or default.

(d) Deduction for house accommodation supplied by the employer.

(e) Deductions for such amenities and services supplied by the employer.

(f) Deduction for recovery of advances of whatever nature and the interest due in respect thereof, or for

adjustment of over payments of wages.

(g) Deduction of Income tax payable by the employed person.

(h) Deduction required to made by order of a court or other authority competent to make such orders.

(i) Deductions for subscriptions to and for repayment of advances from the provident fund.

(j) Deduction for payment to cooperative societies approved by the state government.

(k) Deduction made for payment of premium on life insurance with the written authorization of the person

employed.

(l) Deduction made with the written authorization of the person employed for the payment of his

contribution to any fund constituted by the employer or the trade union registered under the Trade

Union Act, 1926.

Section 8 : (1) No fine shall be imposed on any employed person save in respect of such acts and omissions

on his part as the employer ,with the previous approval from the state government or of the prescribed

authority.

(2) A notice specifying such acts and omissions shall be exhibited in the prescribed manner on

the premises in which the employment is carried on.

(3) No fine shall be imposed on any employed person until he has been given an opportunity of

showing cause against fine, or other wise than in accordance with such procedure as may be

prescribed for the imposition of fines.

(4) The total amount of fine which may be imposed in any wage period on any employed person

shall not exceed an amount equal to three percent of the wages payable to him in respect of that

wage period.

Cost of Living:

The Minimum wages Act, 1948 is a central legislation which allows the respective state Government to fix

minimum wage for the workers based on the on the cost of living at that particular place. No worker should

be paid less than the minimum wage. The Wage committees revise the minimum wages after every six months.

Norms for fixation of minimum wages

The norms include those, which were recommended by the Indian labour Conference in its session held in

1957.

(i) 3 consumption units for one earner.

(ii) Minimum food requirement of 2700 calories per average Indian adult.

(iii) Clothing requirements of 72 yards per annum per family.

(iv) Rent corresponding to the minimum area provided for under Government’s Industrial Housing Scheme.



74

(v)Fuel, Lighting and other miscellaneous items of expenditure to constitute 20% of the total Minimum

Wages.

Other Parameters

(i) “Children education, medical requirement, minimum recreation including festivals/ ceremonies and

provision for old age, marriage etc should further constitute 25%of the total minimum wage. (ii) Local

condition and other factors influencing the wage rate.

Social Benefits

The Employees Provident Fund and Miscellaneous Provision Act, 1952

This Act is applicable to those employees whose basic wage is below 6500 INR per month.

The basic wage means all emoluments which are earned by an employee while on duty or on leave or on

holidays with wages in either case in accordance with the terms of employment and which are paid or

payable in cash to him.

This does not include:-

(i) the cash value of any food concession.

(ii) Any dearness allowance, overtime allowance, house rent allowance, bonus, commission or any

other similar allowance payable to the employee.

(iii) Any present made by the employer

The Employee and the Employer both contribute 12% of the basic wage towards this fund. This fund entitles

the employee for provident fund, the employees pension scheme and deposit linked insurance scheme.

The onus is on the employer to pay the employee’s due as well as the employer’s due to the provident fund

authorities in time, failing in which the employer has to pay the amount as well as the interest of 12% on the

amount.

The act does not apply to a newly setup establishment for an initial period of 3 years starting from the first

setting up of the establishment.

Employees Provident Fund Amending Act, 1963: Contractor‟s employees are eligible for provident fund benefits.

The Workmen’s Compensation Act, 1923

Chapter II,

Section 3: Employer liability for compensation (1) If personal injury is caused to a workman by accident

arising out of or in course of employment, his employer shall be liable to pay compensation.

Section10B: Reports of fatal accidents & serious bodily injuries to be sent to the commissioner within seven

days of such accident.

Section 12: Principal (employer) liable for the injuries caused to any person working under the contract.

Employees State Insurance Act, 1948

An Act to provide for certain benefits to employees in case of sickness, maternity and employment injury and

to make provision for certain other matters in relation thereto



75

It shall apply in the first instance to all factories (including factories belonging to government) other than

seasonal industries.

Seasonal industry means the factory engaged in the following manufacturing process

Cotton ginning

Cotton and jute pressing

Decortications of groundnuts

The manufacture of coffee, indigo, lac, rubber, sugar, tea or any other manufacturing process

related to or incidental to the the above processes

A factory, which is engaged for a period not exceeding seven months in a year.

This Act is applicable to those employees whose wage is below 6500 INR per month (Raised to INR 7500

from March, 2004 onwards).

Wages means all remuneration paid or payable in cash to an employee, if the terms of the contract of

employment, express or implied were fulfilled and includes [any payment to an employee In respect of any

period of authorized leave, lockout, strike which is not illegal or layoff and] other additional remuneration if

any (paid at intervals not exceeding two months) but does not include

Any contribution paid by the employer to any pension fund or provident fund under this Act.

Any traveling allowance or the value of the traveling concession

Any sum paid to the person employed to defray special expense entailed on him by the nature of

employment

Any gratuity payable on discharge.

Casual Employees are employees under this Act.

Part time employees are covered under this Act

Apprentice under the Apprenticeship Act not covered under this Act

The Act entitles the employees: -

(a) Medical benefits for self and the family members

(b) Sickness benefit

(c) Disablement benefit

(d) Maternity benefits for female employees

(e) Funeral expense in case of the death of the employee.

Gratuity,

Payment of Gratuity Act, 1972, section 6

Every employee is required to submit his nomination in the prescribed form in duplicate to his employer,

either personally or through Registered AD, within 30 days of the completion of one year of service.

Section 4A

Every employer has to obtain insurance for his liability to pay gratuity from the LIC

The Maternity Benefits

In accordance with the Maternity Benefit Act,1961A Female employee will be entitled to the maternity

benefits if she has actually worked in an establishment of the employer from whom she claims the maternity

benefits, for a period of not less than 80 days in the twelve months immediately preceding the date of her

expected delivery.

The female employee is entitled to:-

a) Maternity Leave: 12 weeks (6 weeks before the delivery and 6 weeks after the delivery)



76

b) Maternity Benefit in case of death of the woman.

c) Payment of Medical Bonus of INR 250 if the employers do not provide for free prenatal and postnatal

confinement.

d) An additional leave of 6 weeks in case of miscarriage.

e) Two weeks leave with wages for Tubectomy operation.

f) One month leave in case of illness arising out of pregnancy, delivery, and premature birth of the child

or miscarriage.

g) Every woman delivered of a child who returns to duty after such delivery, in addition of interval of

rest allowed to her, be allowed in course of her daily work two breaks of her prescribed duration for

nursing the child until the child attains the age of fifteen months.

The Payment of Gratuity Act, 1972, Section 4 (1)

Gratuity shall be payable to an employee on the termination of his employment after he has rendered

continuous service for not less than five years-

(a) On his superannuation

(b) On his retirement or resignation, or

(c) On his death or disablement due to accident or disease

Section 4 A (1) With effect from such date as may be notified by the appropriate Government in this behalf,

every employer shall obtain an insurance in the manner prescribed, for his liability for payment towards

gratuity under this Act, from the LIC established under the Life Insurance Corporation of India Act (1956) or

any other prescribed insurer.

7.General Working facilities: -

Dining Room

The Factories Act, 1948,Chapter V

Section 47(1) In every factory wherein more than 150 workers are ordinarily employed adequate and

suitable shelters or rest rooms and suitable lunchroom, with provision for drinking water, where

workers can eat meals brought by them, shall be provided and maintained for the use of the workers.

Section47 (2) The shelters or rest rooms or lunchroom shall be sufficiently ventilated and shall be

maintained in a cool and clean condition.

Canteen

The Factories Act, 1948,Chapter V, Section 46

The [state] government may make rules requiring that in any specified factory wherein more than

250 workers are ordinarily employed, a canteen or canteens shall be provided and maintained by the

occupier for the use of the workers.

The canteen building shall be situated not less than 15feet from any Latrine, urinal, boiler

house, coal stocks, Ash dumps and any other source of dust, smoke or obnoxious fumes.



77

The Drinking Water

The Factories Act, 1948,Chapter III, Section 46

Section 18(1)In every factory effective arrangement shall be made to provide and maintain at suitable

points conveniently situated for all workers employed therein a sufficient supply of wholesome

drinking water.

SECTION 18(2) All such points shall be legibly marked “Drinking Water” in a language understood

by majority of the workers employed in the factory and no such points shall be situated within (six

metres of any washing place, urinal, latrine, spittoon, open drain carrying sullage or effluents or any

other source of contamination) unless a shorter distance is approved in writing by the chief inspector.

Personal Protective equipments

The Factories Act, 1948, Chapter I, Section 7-A (1)

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 Fire Safety

The Factories Act, 1948, Chapter IV, Section 38 In every factory, all practicable measure shall be taken to prevent outbreak of fire and its spread,

both internally and externally and to provide and maintain

(a) Safe means of escape for all persons in the event of fire, and

(b) the necessary equipment and facilities for extinguishing fire.

a. SECTION 38 (2) effective measures shall be taken to ensure that in every factory all the workers are

familiar with the means of escape in case of fire and have been adequately trained in the routine to be

followed in such cases.

b. Fire fighting drills shall be held as often as necessary and at least once in every period of two

months.

Lighting facility

The Factories Act, 1948,Chapter III, Section 17(1)

In every part of a factory where the workers are working or passing there shall be provided and

maintained sufficient and suitable lighting, natural or artificial or both.

Overcrowding

The Factories Act, 1948, Chapter III, Section 16



78

SECTION 16 (1) No room in any factory shall be overcrowded to an extent injurious to the health of

the workers employed therein.

SECTION 16 (2) Without prejudice to the generality of subsection (1) there shall be in every

workroom of a factory in existence on the commencement of this Act at least (9.9cubic metres) and of

a factory built after the commencement of this Act at least (14.2 cubic metres) of space for every

worker employed therein and for the purpose of this subsection no account shall be taken of any

space which is more than (4.2 metres) above the level of the floor of the room.

Fencing of Machinery

The Factories Act, 1948, Chapter IV, Section 21

In every factory the following, namely:-

(i) every moving part of a prime mover and every flywheel connected to a prime mover, whether the prime

mover or flywheel is in the engine house or not.

(ii) the headrace and the tailrace of every water wheel and water turbine.

(iii) any part of the stock bar which projects beyond the head stock of a lathe; and

(iv)Unless they are in such position or of such construction as to be safe to be every person employed in the

factory as they would be if they were securely fenced, the following namely-

(a) every part of an electric generator, a motor or rotary converter;

(b) every part of transmission machinery, and

(c) every dangerous part of any other machinery

shall be securely fenced by safeguards of substantial construction which [shall be constantly maintained and

kept in position] while the parts of the machinery they are fencing are in motion or in use.

SECTION 26(1) in all machinery driven by power and installed in any factory after the commencement of

this Act: -

(a) Every set screw, bolt or key on any revolving shaft, spindle, wheel or pinion shall be so sunk, encased

or otherwise effectively guarded as to prevent danger.

All spur, worm, and other toothed or friction gearing which does not require frequent adjustment while in

motion shall be completely encased, unless it is so situated as to be as safe as it would be if it were completely

encased.

The First Aid Boxes

The Factories Act, 1948,, ChapterV ,Section45

a. SECTION 45(1) There shall in every factory be provided and maintained so as to be readily accessible

during all working hours first aid boxes or cupboard equipped with the prescribed contents, and the

number of such boxes or cupboard to be provided and maintained shall not be less than one for every one

hundred and fifty workers ordinarily employed (at any one time) in the factory.

b. The first aid boxes or cupboard shall be distinctively marked with a red cross on white

background and shall contain the following equipment

For factories employing more than 50 people:-

24 small size sterilized dressing

12 medium size sterilized dressings.

12 large size sterilized dressing

12 large size sterilized burn dressing

One (200) ml bottle of centrimide solution (1%) or a suitable antiseptic solution.

One 200 ml bottle of Mercurochrome solution (2%) in water

Twelve (15ml) packets of sterilized cotton wool

One 120 ml bottle of salvolatile having the dose and mode of administration on the

label.



79

One pair of scissors

One roll of Adhesive plaster (6 cms x 1 metre)


12 pieces of sterilized eye pad in separate sealed packed.

A bottle containing 100 tablets (each of 5 grains) of Aspirin

One polyethylene wash bottle (500 cc) for washing eyes.

12 roller bandages 10 cms wide


Six triangular bandages

One tourniquet

A supply of suitable splints

Two packets of safety pins

Kidney tray

A snakebite lancet

One (30ml) bottle containing potassium permanganate crystals

First aid leaflet issued by the Directorate general of Factory, Advise Service and labour institute,

Bombay

Ambulance Room

The Factories Act, 1948 Chapter V, Section 45(4)

In every factory wherein more than 500 are ordinarily employed there shall be provided and

maintained an ambulance room of the prescribed size, containing the prescribed equipment and in

the charge of such medical and nursing staff as may be prescribed and those facilities shall always

be made available during the working hours of the factory.

Latrines and urinals

The Factories Act,1948, ChapterIII ,Section19

Section 19(1) In every factory:-

(a) Sufficient latrine and urinal accommodation of prescribed types shall be provided conveniently

situated and accessible to workers at all times while there 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.

(d) All such accommodation shall be maintained in a clean and sanitary condition at all times.

Latrine accommodation shall be provided in every factory on the following scale: - (a) Where women are employed, there shall be at least one latrine for every 25 women

(a) Where males are employed, there shall be at least one latrine for every 25 males provided that where

the number of males exceeds 100

It shall be sufficient if there is one latrine for every25 males up to the first 100 and one for every 50

thereafter.

Every Latrine shall be under cover and so partitioned off so as to secure privacy and shall have a

proper door and fastening.

Where workers of both sexes are employed, there shall be displayed outside each Latrine block a notice

in the language understood by majority of the workers indicating “For Men’s Only” and “For women’s



80

Only” as the case may be. The notice shall also bear the figure of a Man or of a woman, as the case may

be.

(Note: The number of toilets per worker may vary between state to state)

Crèche

The Factories Act,1948, ,Chapter V,Section 48

In every factory wherein more than 30 women workers are ordinarily employed there shall be provided and

maintained a suitable room or rooms for the use of children under the age of six years of such women.

Such rooms shall provide adequate accommodation, shall be adequately ventilated, shall be maintained in a

clean and sanitary condition and shall be under the charge of women trained in the care of the children and

infants.

Exception to crèche

The Karnataka Factories (Amendment) Rules, 2002

Rule 104-B. Exemption from the provision of crèche in certain cases:

(1) In factories where it is reasonably not practicable to provide and maintain crèche in accordance with

law, the chief inspector of factories from the provision of rules 101 to 104, if he is satisfied that

alternate arrangement made under sub rule (2) of this rule are ensured by the occupier of the factory.

Provided that the occupier of the factory shall:

(a) Obtain the consent of the employee

(b) Furnish full details of the places, owners or persons or Non government Organization who

are providing such crèche and the infrastructure facilities available therein

(c) Bear the cost incurred by the parent on the child.

(d) Furnish the information of the child as and when it is admitted and withdrawn.

8.Other laws:

License

The Factories Act, 1948,Chapter-I, Section 6

The state Government may make rules

(aa) requiring the previous permission in writing of the state government or chief Inspector to be obtained for

the site on which the factory is to be situated and for the construction or extension of any factory or class or

description of factories.

Apprentices Act, 1961

3. Qualifications for being engaged as an apprentice

A person shall not be qualified for being engaged as an apprentice to undergo apprenticeship training in any

designated trade, unless he-

(a) is not less than fourteen years of age, and

(b) satisfies such standards of education and physical fitness as may be prescribed

4. Contract of apprenticeship

(1) No person shall be engaged as an apprentice to undergo apprenticeship training in a designated trade

unless such person or, if he is minor, his guardian has entered into a contract of apprenticeship with the

employer.



81

(2) The apprenticeship training shall be deemed to have commenced on the date on which the contract of

apprenticeship has been entered into under sub-section (1).

(3) Every contract of apprenticeship may contain such terms and conditions as may be agreed to by the

parties to the contract:

PROVIDED that no such term or condition shall be inconsistent with any provision of this Act or any rule

made there under.

(4) Every contract of apprenticeship entered into under sub-section (1) shall be sent by the employer within

such period as may be prescribed to the Apprenticeship Adviser for registration.

(5) The Apprenticeship Adviser shall not register a contract of apprenticeship unless he is satisfied that the

person described as an apprentice in the contract is qualified under this Act for being engaged as an

apprentice to undergo apprenticeship training in the designated trade specified in the contract.

(6) Where the Central Government, after consulting the Central Apprenticeship Council, makes any rule

varying the terms and conditions of apprenticeship training of any category of apprentices undergoing such

training, then, the terms and conditions of every contract of apprenticeship relating to that category of

apprentices and subsisting immediately before the making of such rule shall be deemed to have been modified

accordingly].

Environmental,

The Environmental Protection (Regulation) Act 1986: -

Chapter III Section 7:No person carrying on any industry, operation or process shall

discharge or emit or permit to be discharged or emitted any environmental pollutant

in excess of such standards as may be prescribed.

Noise Pollution,

The Noise Pollution (Regulation and Control) Rules 2000, the ambient air quality standards for industrial

area are 75dB(A) leg during daytime and 70 dB (A) in the night.

Further the Noise Limit from domestic Appliances has been set as: -

(i)Window Air Conditioner 68 dB (A)

( ii) Air coolers- 60 dB (A)

(iii) Refrigerators 46 dB (A)

( iv) Textile Industry 85-90 dB(A), provided that when it is higher need

to provide ear plugs.

Water Pollution,

Water (Prevention and control of Pollution) Act, 1974,Section 24

(1) Subject to the provisions of this section --

(a) no person shall knowingly cause or permit any poisonous, noxious or polluting matter determined

in accordance with such standards as may be laid down by the State Board to enter (whether directly

or indirectly) into any [stream or well or sewer or on land]; or



82

(b) no person shall knowingly cause or permit to enter into any stream any other matter which may tend,

either directly or in combination with similar matters, to impede the proper flow of the water of the

stream in a manner leading or likely to lead to a substantial aggravation of pollution due to other

causes or of its consequences.

Restrictions on new outlets and new discharges, Section 25(1).

1) Subject to the provisions of this section, no person shall, without the previous consent of the State Board-

(a) establish or take any steps to establish any industry, operation or process, or any treatment and

disposal system or any extension or addition thereto, which is likely to discharge sewage or trade effluent into

a stream or well or sewer or on land (such discharge being hereafter in this section referred to as discharge of

sewage); or

(b) bring into use any new or altered outlet for the discharge of sewage; or

(c) begin to make any new discharge of sewage:

Disposal of hazardous waste

HAZARDOUS WASTES (MANAGEMENT AND HANDLING) RULES, 1989

[Notification No. SO 594(E), dated 28th. July, 1989]1

In exercise of the powers conferred by sections 6, 8, and 25 of the Environment (Protection) Act, 1986 (29 of

1986), the Central Government hereby makes the following rules, namely: -

4. Responsibility of the occupier for handling of wastes

(1) The occupier generating hazardous wastes listed in column (2) of the schedule in quantities equal to or

exceeding the limits given in column (3) of the said Schedule, shall take all practical steps to ensure that such

wastes are properly handled and disposed of without any adverse effects which may result from such wastes

and the occupier shall also be responsible for proper collection, reception, treatment, storage and disposal of

these wastes either himself or through the operator of facility.

9 Records and returns

(1) The occupier generating hazardous waste and operator of a facility for collection, reception, treatment,

transport, storage and disposal of hazardous waste shall maintain records of such operations in Form 3. (2) The occupier and operator of a facility shall send annual returns to the

2[State Pollution Control Board

or Committee] in Form 4.

SCHEDULE: CATEGORIES OF HAZARDOUS WASTES

[Rules 3(i), 3(n) and 4]

Waste categories Types of Wastes Regulatory quantities

(1) (2) (3)

Waste Category No. 1 Cyanide wastes 1 kilogramme per year

calculated as cyanide.



83

Waste category No. 2 Metal finishing wastes 10 kilogrammes per year the

sum of the specified substance

calculated as pure metal.

Waste Category No. 3 Waste containing water soluble

chemical compounds of lead,

copper, Zinc, Chromium, nickel,

selenium, Barium and antimony

10 kilogrammes per year the



Waste Category No. 4 Mercury, arsenic, thallium and

cadmium bearing wastes 5 kilogrammes per year the sum

of the specified substance


Waste Category No. 5 Non-halogenated hydrocarbons

including solvents 200 kilogrammes per year

calculated as non-halogenated

hydrocarbons.

Waste Category No. 6 Halogenated hydrocarbons


calculated as halogenated

hydrocarbons.

Waste Category No. 7 Wastes from paints, pigments

glue, varnish and printing ink 250 kilogrammes per year

calculated as oil or oil

emulsions.

Waste Category No. 8 Wastes from dyes and dye

intermediates containing

inorganic chemical compounds

200 kilogrammes per year

calculated as inorganic

chemicals.

Waste category No. 9 Wastes from dyes and dye


organic chemical compounds


calculated as organic chemicals.

Waste category No. 10 Waste oil and oil emulsions 1000 kilogrammes per year

calculated as oil and oil

emulsions.

Waste category No. 11 Tarry wastes from refining and

tar residues from distillation or

pyrolytic treatment


calculated as tar.

Waste category No. 12 Sludges arising from treatment

of waste waters containing

heavy metals, toxic organics,

oils, emulsions and spent

chemicals and incineration ash

Irrespective of any quantity.



84

Waste Category No. 13 Phenols 5 kilogrammes per year

calculated as phenols.

Waste category No. 14 Asbestos 200 kilogrammes per year

calculated as asbestos.

Waste Category No.15 Wastes from manufacturing of

pesticides and harbicides and

residues from pesticides and

herbicides formulation units


calculated as pesticides and

their intermediate products

Waste category No. 16 Acid/ alkaline/ slurry wastes 700 kilogrammes per year

calculated as acids/ alkalies.

Waste category No. 17 Off-specification and discarded

products Irrespective of any quantity.

Waste category No. 18 Discarded container and

container liners of hazardous

and toxic chemicals and wastes


Boiler Certificate

Boiler’s Act,1923,

Section 2

(c) “boiler” means any closed vessel exceeding [22.75 litres] in capacity which is used expressly for

generating steam under pressure and includes any mounting or other fitting attached to such

vessel which is wholly or partly under pressure when steam is shut off;

(f)“steam-pipe” means any pipe through which steam passes from a boiler to a prime mover or

other user or both, if

(i)The pressure at which steam passes through such pipe exceeds 3.5 kilograms per square centimetre

above atmospheric pressure; or

(ii )Such Pipe exceeds 254 millimeters in internal diameter; and includes in either

case any connected fitting of a steam-pipe.

Section 6

Save as otherwise expressly provided in this Act, no owner of a boiler or permit it to be used ---

(a) unless it has been registered in accordance with the provisions of this Act;



85

(b) in the case of any boiler which has been transferred from one State to another, until the transfer has been reported

in the prescribed manner;

(c) unless a certificate or provisional order authorising the use of the boiler is for the time being in force under this

Act;

(d) at a pressure higher than the maximum pressure recorded in such certificate or provisional order;

(e) where the State Government has rules requiring that boilers shall be in charge of

persons holding (certificates of proficiency or competency), unless the boiler is

in charge of a person holding the certificate required by such rules:

Provided that any boiler registered, or any boiler certified or licensed, under any Act hereby repealed shall be

deemed to have been registered or certified, as the case may be, under this Act.

NOISE LIMIT FOR GENERATOR SETS RUN WITH DIESEL

In accordance with MINISTRY OF ENVIRONMENTAND FOREST'S

NOTIFICATION

New Delhi, the 17th May 2002

G.S.R. 37I(E)- In exercise of the powers conferred by sections 6 and 25 of the Environment (Protection) Act,

1986 (29 of 1986), the Central Government hereby makes the following rules further to amend the

Environment (Protection) Rules, 1986, namely

1. (1) These rules may be called the Environment (Protection) second Amendment Rules, 2002.

SE 94. NOISE LIMIT FOR GENERATOR SETS RUN WITH DIESEL

1. Noise limit for diesel generator sets (upto 1000 KVA) manufactured on or after the 1st July, 2003.

The maximum permissible sound pressure level for new diesel generator (DG) sets with rated capacity up to

1000 KVA, manufactured on or after the 1st July, 2003 shall be 75 dB (A) at 1 metre from the enclosure

surface.

The diesel generator sets should be provided with integral acoustic enclosure at the manufacturing stage

itself

IT F6. Compliance with BIS specifications

All engines up to 20 kw (individually or as part of the product) shall carry ISI mark and meet relevant BIS

specifications (IS 1000 1).

OR FOREIGN TRADE (DEVELOPMENT AND REGULATION) ACT, 1992

[Act No. 22 of Year 1992]



86

7. Importer-Exporter Code Number

No person shall make any import or export except under an Importer-Exporter Code Number granted by the

Director General or the officer authorized by the Director General in this behalf, in accordance with the

procedure specified in this behalf by the Director General.

GCustoms Laws,

Customs Act, 1962, Section11E (1)

Every person who, on or after the notified date, owns, possesses, controls or acquires any notified goods

shall maintain (in such form and in such manner as may be specified by rules made in this behalf) a true and

complete account of such goods and shall, as often as he acquires or parts with any notified goods, made an

entry in the said account in relation to such acquisition or parting with, and shall also state therein the

particulars of the persons from whom such goods have been acquired or in whose favour such goods have

been parted with, as the case may be, and such account shall be kept, along with the goods, at the place of

storage of the notified goods to which such accounts relate:

Publication of name by company (Display of Notice Board)

Section 147, Companies Act, 1956

(1) Every company- (a) shall paint or affix its name and the address of its registered office, and keep the same painted or

affixed, on the outside of every office or place in which its business is carried on, in a conspicuous position, in

letters easily legible; and if the characters employed therefor are not those of the language or of one of the

languages in general use in that locality, also in the characters of that language or of one of those languages;

(b) shall have its name engraven in legible characters on its seal; and

(c) shall have its name and the address of its registered office mentioned in legible characters in all its

business letters, in all its bill heads and letter paper, and in all its notices and other official publications; and

also have its name so mentioned in all bills of exchange, hundies, promissory notes, endorsements, cheques

and orders for money or goods purporting to be signed by or on behalf of the company, and in all bills of

parcels, invoices, receipts and letters of credit of the company.

(2) If a company does not paint or affix its name and the address of its registered office], or keep the same

painted or affixed in the manner directed by clause (a) of sub-section (1), the company, and every officer of

the company who is in default, shall be punishable with fine which may extend to five hundred rupees for not

so painting or affixing its name and the address of its registered office, and for every day during which its

name and the address of its registered office, is not so kept painted or affixed.

(3) If a company fails to comply with clause (b) or clause (c) of sub-section (1), the company shall be

punishable with fine, which may extend to five thousand rupees. (4) If an officer of a company or any person on its behalf- (a) uses, or authorises the use of, any seal purporting to be a seal of the company whereon its name is

not engraven in the manner aforesaid;



87

(b) issues or authorises the issue of, any business letter, bill head, letter paper, notice or other official

publication of the company wherein its name and the address of its registered office are not mentioned in the

manner aforesaid; (c) signs or authorises to be signed, on behalf of the company, any bill of exchange, hundi, promissory

note, endorsement, cheque or order for money or goods wherein its name is not mentioned in the manner

aforesaid; or (d) issues, or authorises the issue of, any bill of parcels, invoice, receipt or letter of credit of the

company, wherein its name is not mentioned in the manner aforesaid; such officer or person shall be punishable with fine which may extend to five thousand rupees, and shall

further be personally liable to the holder of the bill of exchange, hundi, promissory note, cheque or order for

money or goods, for the amount thereof, unless it is duly paid by the company.

The Contract labour (Regulation and abolition) Act, 1970

A person is said to be employed as a contract labour, in or in connection with the work of an establishment,

when he is hired for such work by or through a contactor, with or without the knowledge of the principal

employer.

The act extends to whole of India. It applies to_

(a) every establishment wherein 20 or more workmen are or were employed on any day of the

preceding 12 months as contract labour.

(b) Every contractor who employs or employed on any day of the preceding 12 months, 20 or

more workmen.

Section 7. Registration of Establishments

An establishment cannot employ contract labour if it does not hold a certificate of registration (Form 1)

Section 12; Licensing of the contractors

A contractor cannot engage contract labour without obtaining a license

THE NARCOTIC DRUGS AND PSYCHOTROPIC SUBSTANCES ACT, 1985

CHAPTER III PROHIBITION, CONTROL AND REGULATION

8. Prohibition of certain operations: No Person shall

1. cultivate any coca plant or gather any portion of coca plant; or

2. cultivate the opium poppy or any cannabis plant; or

3. produce, manufacture, possess, sell, purchase, transport, warehouse, use, consume, import inter-

State, export inter-State, import into India, export from India or transship any narcotic drug or

psychotropic substance,

notes



88

However, they are not statutory provisions themselves (meaning that the „Standing Orders‟ even when

approved, do not become „law‟ in the sense in which Rules and Notifications issued under delegated

legislation become after they are published as prescribed.) - Rajasthan SRTC v. Krishna Kant - AIR 1995 SC

1715 = (1995) 5 SCC 75 = 71 FLR 211 = 87 FJR 204 = 1995 AIR SCW 2683 = 1995 LLR 481 (SC).



89

India Law Summary

1.Child labour:


















child labor.”

Young Workers




(a) a certificate of fitness granted with reference to him under section 69 is in the custody of the


(b) such child or adolescent carries while he is at work a token giving a reference to such

certificate..

(c) Document of Proof of Age








establishment.



90

The Central Sales Tax Act, 1956

Serial No.

Section /Clause

Ref.

Basic Requirement of the Section Requirements for Implementing

Complied with (Yes/No)

1 Sec 3 A sale or purchase of Goods shall be deemed to took place in the course of inter – state (inter – state means from one state to another) trade or commerce if the sale or purchase a) transfer of goods from one state to another b) transfer of documents or title to the goods during

their movement from state to another state. One of the basic conditions of inter state sale is that there should be sale. In case manufacturer sends goods to his branch in other state, it is not a sale.

2 Sec 2(d)

‗Goods‘ includes all materials, articles, commodities and all kinds of moveable property. It does not include Newspaper, actionable claims, stocks, shares & securities. Supply of Telephone Instrument and connection through cable

is “Right to use Goods”?

In state of Uttar Pradesh vs. UOI AIR SCW 695 = 170

ELT 385 = 130 STC 1 (SC), it was held in this case that

supplying of instrument/ apparatus and other appliances

in the premises of subscriber, which are connected with a

telephone line to area exchange is ‘transfer of right to use

goods’ and can be taxed.

This issue has been referred to large bench of SC. Till the time final decision on this issue will not come, sales tax not to be paid.



91

3 Sec 2(b) Liability to pay sales tax is on dealer u/s 8(1). ‗Dealer‘ means any person who carries on business of buying, selling, supplying or distribution of goods, directly or indirectly, for cash, or for deferred payment, or for valuable consideration.

4. Sec. 6A(1) For Branch Transfer /depot transfer form F is required to submit, otherwise, branch transfer/ depot transfer will be treated as sale for all purpose of CST Act.

One Form F covering receipt during a month can be issued. If space in form is not adequate, a separate list may be attached as Annexure to form F giving details.

The blank form has to be obtained from sales tax authority in which the transferee is situated i.e., states where Goods were received.

For Branch Transfer /depot transfer Form F is required to submitted to the assessing authority upto the time of assessment by the first assessment authority.

4A. Sec 6(2) In Transit sales:

Where in transit sales are made Form EI or EII are to be furnished by the selling dealer to the purchasing dealer and in turn purchasing dealer shall be furnishing Form C to the selling dealer. EI and EII forms are to be furnished from all subsequent sales after first sale is made in the series. CST @4% shall be charged only at the first stage of sale.

For in transit sales furnish EI or EII forms and follow instructions provided in the section

5 Sec 8(1)

The applicable rate of CST is 4% against ‗C‘ Form. Where C‘ form is not furnished to the assessing authority the tax on that part of turnover shall be levied at the rate of 10% or at the rate applicable to the sale of such goods inside the appropriate state, whichever is higher.

Form C is required to submitted to the assessing authority upto the time of assessment by the first assessment authority.



92

6 Sec 9(2)

As per CST all provisions of general sales tax law of each states except those excluded in CST Act and Rules itself, in respect of the following shall apply to person liable under central sales tax act in that states:- Periodic Returns Assessment, provisional assessment and

reassessment Advance payment of taxes Registration of transferee and imposition of tax

liability on transferee Recovery of tax from third party Appeals, Review, revision and reference Refunds, rebate penalties and interest Compounding of offences Treatment of documents furnished by dealer as

confidential Offence & penalties. Rules & Procedures applicable in respect of above matters vary from state to state and these are adhered to with respective local sales tax laws. Please refer individual state laws for applicability & procedural part in relevant state.

7 Sec 2(f) CST acts provides registration of dealer. Procedure for registration under CST will be same as in local sales tax under relevant states.

8 Filing of Returns Deposit of Tax and Assessment procedures in respect of Central Sales Tax will govern ASAP of Local sales Tax

9 As far concern of Applicability of Sales tax in the Case of Bharti Telecom it is not applicable at present since no transaction of sales/ purchase construed for providing telephone connection. However, the current position may change in the light of Supreme Court Decision in case Of State of Uttar Pradesh vs, UOI which is pending at present for decision.



93

Works Contract Act

Sl. No.

Section / Clause Ref.



(Yes/No)

TAMILNADU

1. Sec 7F(1) TDS on works contract is to be deducted on Any amount payable to the contractor for the execution of works contract.

2. Sec 7F(1) Rate of deduction shall be:

1. 2% on Civil Works Contracts. 2. 4% on any other works Contract.

Deduct the amount of TDS on any amount paid to the contractor at the rates prescribed.

3. Rule 18F(1) Payment is to made individually for each party within 7 days of Deduction in Form XXXVII in Triplicate Cheque is to be made in favour of CTO, TDS Circle, Chennai.

Payment is to made individually for each party within 7 days of Deduction in Form XXXVII in Triplicate Cheque is to be made in favour of CTO, TDS Circle, Chennai.

4. Sec 7F(3) Rule 18F(2) TDS Certificate to be issued In Form

XXXVII-A within 15 days of date of deposit of tax.

TDS Certificate is to be prepared in Triplicate: 1. Original Copy to be given to the Contractor. 2. Duplicate copy to be send to the AO. 3. Triplicate Copy is to be retain by the

Contractee.

TDS Certificate to be issued In Form XXXVII-A within 15 days of date of deposit of tax.



94

MAHARASHTRA

1. Sec 6B(1) TDS on works Contract at the Rate of 2% is to be deducted where aggregate payment made to the contractor during the financial year is Rs. 2,00,000 or more.

Deduct the amount of TDS where the aggregate payment to the contractor exceeds Rs. 2,00,000 @ 2%.

2. Sec 6B(2) Payment of tax in Form V in Triplicate is to be made individually for each contractor within 10 days from the end of each month.

Cheque is to be drawn in favour of IOB WCT A/C.

Payment of tax in Form V in Triplicate is to be made individually for each contractor within 10 days from the end of each month

3. Rule 8B(2) TDS certificate in Form XXXX is to be issued immediately at the time of deduction of TDS to the Contractor.

TDS certificate in Form XXXX is to be issued immediately at the time of deduction of TDS to the Contractor.

4. Sec 6B(3) Rule 8B(3) Monthly Return in Duplicate in Form

XXXXI is to be submitted to the AO of the Contractor within 20 days from the end of each month

Monthly Return in Duplicate in Form XXXXI is to be submitted to the AO of the Contractor within 20 days from the end of each month

PUNJAB



95

1. Sec10C(1) TDS on works Contract at the Rate of 2% plus a surcharge of 10% is to be deducted from any payment made to the contractor on the execution of works contract i.e. a total of 2.20%.

TDS on works Contract at the Rate of 2% plus a surcharge of 10% is to be deducted from any payment made to the contractor on the execution of works contract i.e. a total of 2.20%.

2. Sec 10C(3) Rule 25A(3) The entire amount deducted on account

of TDS shall be deposited in Challan ST-XI in Triplicate within 15 days of the following month. The payment is to be made consolidated for all contractors. Cheque is to be made in favour of Excise and taxation officer.

Deposit the amount of TDS in Challan ST-XI in Triplicate within 15 days of the following month.

3. Rule 25A(2) TDS certificate in Form ST-XXXIV is to be issued to the contractor within 15 days of deposit of tax.

TDS certificate in Form ST-XXXIV is to be issued to the contractor within 15 days of deposit of tax.

4. Rule 25A(3) A monthly return in Form ST-XXXV is to be submitted to the Assessing Authority within 15 days of date of deposit of tax.

A monthly return in Form ST-XXXV is to be submitted to the Assessing Authority within 15 days of date of deposit of tax.



96

5. Rule 25A(1) Where any person enters into a contract with any contractor for the execution of works contract the gross value of which exceed Rs. 5,00,000 in a year, within I month of making the contract shall furnish the particulars of the contract to the Assessing Authority of the contractor in Form ST-XXXIII.

Where any person enters into a contract with any contractor for the execution of works contract the gross value of which exceed Rs. 5,00,000 in a year, within I month of making the contract shall furnish the particulars of the contract to the Assessing Authority of the contractor in Form ST-XXXIII.

ANDHRA PRADESH

1. Sec 5H(1) Rule 17I(1) TDS on works contract is to be deducted

on Any amount payable to the contractor for the execution of works contract.

Rate of deduction shall be:

3. 2% on Civil Works Contracts. 4. 4% on any other works Contract.

TDS on works contract is to be deducted on Any amount payable to the contractor for the execution of works contract.

Rate of deduction shall be:

5. 2% on Civil Works Contracts.

6. 4% on any other works Contract.



97

2. Rule 17I(2) The entire amount deducted on account of TDS shall be deposited within 15 days of the following month. The payment is to be made consolidated for all contractors. Cheque is to be made in favour of The Commercial Tax Officer, Begumpet.

TDS shall be deposited within 15 days of the following month.

3. Rule 17I(3) TDS certificate in Form XX is to be issued immediately at the time of deduction of TDS to the Contractor.

TDS certificate in Form XX is to be issued immediately at the time of deduction of TDS to the Contractor.

DELHI

1. Sec 7(1) Rule 7(c) TDS on works Contract shall be

deducted at the Rate of 2% for all the contracts the value of which exceeds Rs. 20,000.

TDS on works Contract shall be deducted at the Rate of 2% for all the contracts the value of which exceeds Rs. 20,000.

2. Rule 7(e) Every person responsible for making deduction shall apply for Tax Deduction Account No. in Form XIV within 60 days from the date on which tax was deducted.

Apply for Tax Deduction Account No. in Form XIV within 60 days from the date on which tax was deducted

2. Sec 7(4) Rule 7(a) The entire amount deducted on account

of TDS shall be deposited in Challan No. V in Quadruplicate within 15 days of the following month. The payment is to be made consolidated for all contractors. Cheque is to be made in favour of IOB, A/c WCT.

TDS shall be deposited in Challan No. V in Quadruplicate within 15 days of the following month.



98

3. Sec 7(5) Rule 7(b) TDS certificate in Form No IX is to be

issued to the contractor within 30 days from the end of the quarter in which deduction is made

TDS certificate in Form No IX is to be issued to the contractor within 30 days from the end of the quarter in which deduction is made

4. Sec 7(10) Rule 7(f) Annual Return in Form XII-A is to be

filed within 90 days from the end of the financial year to the commissioner.

Annual Return in Form XII-A is to be filed within 90 days from the end of the financial year to the commissioner.

5. Sec 8(1) Rule 8(1) No person shall enter into any works

contract with any contract for the execution of works contract or shall make payment to the contractor unless the contractor has obtain a tax clearance certificate from the Assessing Authority stating that such contractor has no liability to pay tax under this Act.

Contractor is not required to furnish Tax Clearance Certificate to the contractee if following two conditions are satisfied: 1. Contract is upto the value of Rs. 20,000 and 2. Contractor has submitted a declaration to

the contractee in form XVI that he is not liable to pay tax under the Act.

6. Sec 9 Rule 9 Any person entering into a contract

exceeding Rs. 50,000 shall furnish the information of the contract in Form XII to the Assessing Authority with 15 days of signing of the contract.

Any person entering into a contract exceeding Rs. 50,000 shall furnish the information of the contract in Form XII to the Assessing Authority with 15 days of signing of the contract.



99

WEST BENGAL

1. Sec 38(1) Any person paying any sum to any contractor for the execution of works contract shall at the time of payment deduct an amount equal to 2% as TDS.

Where contractor has obtain a Tax Clearance Certificate in pursuance of sec 94 from the Commissioner to the effect that he is not liable to pay tax under that Act or all payments of tax has been made in advance then contractee shall not deduct the amount of TDS from the payment

Any person paying any sum to any contractor for the execution of works contract shall at the time of payment deduct an amount equal to 2% as TDS.

2. Rule 169 The entire amount deducted on account of TDS shall be deposited within 45 days from the end of each month in the prescribed form in quadruplicate. The payment is to be made individually for all contractors. Cheque is to be made in favour of Reserve Bank Of India, Govt. Dues.

TDS shall be deposited within 45 days from the end of each month in the prescribed form in quadruplicate

3. Rule 170 TDS certificate in Form No 26 is to be issued to the contractor within 15 days from the date of deposit of tax.

TDS certificate in Form No 26 is to be issued to the contractor within 15 days from the date of deposit of tax.



100

4. Rule 171 Rule 169(7)

A Monthly Scroll in Form No, 27 along with TDS Challans and TDS Certificates issued shall be filed with commissioner within 45 days from the end of each month. A monthly divisional account statement showing the total amount of tax deducted shall be sent to the Commissioner with 45 days from the end of each month.

A Monthly Scroll in Form No, 27 along with TDS Challans and TDS Certificates issued shall be filed with commissioner within 45 days from the end of each month. A monthly divisional account statement showing the total amount of tax deducted shall be sent to the Commissioner with 45 days from the end of each month.

RAJASTHAN

1. Sec 7 Any person paying any sum to any contractor for the execution of works contract shall at the time of payment deduct an amount equal to 3% as TDS.


2. Rule 43(5) The entire amount deducted on account of TDS shall be deposited within 15 days from the end of the each month in form ST-10 in quadruplicate. The payment is to be made individually for all contractors. Cheque is to be made in favour of CTO, WCT & L, Jaipur Zone II.

TDS shall be deposited within 15 days from the end of the each month in form ST-10 in quadruplicate.

3. TDS certificate in Form No 28 ST-45 is to be issued to the contractor within 15 days from the date of deposit of tax.

TDS certificate in Form No 28 ST-45 is to be issued to the contractor within 15 days from the date of deposit of tax.



101

4. A Monthly Statement along with Form No.28, Copy of Challan shall be submitted to the Assessing officer within one month from the date of Deposit of tax.

A Monthly Statement along with Form No.28, Copy of Challan shall be submitted to the Assessing officer within one month from the date of Deposit of tax.

5. Rule 43(1) Where any person enters into a contract with any contractor for the execution of works contract the gross value of which exceed Rs. 5,00,000 in a year, within I month of making the contract shall furnish the particulars of the contract to the assistant Commissioner in Form No. 27.

6. Tax Clearance Certificate is to be obtained from the contractor where contractor is not liable to pay tax under the Act.

Tax Clearance Certificate is to be obtained from the contractor where contractor is not liable to pay tax under the Act.

UTTAR PRADESH

1. Sec 8D(2) Any person paying any sum to any contractor for the execution of works contract shall at the time of payment deduct an amount equal to 4% as TDS.


2. Sec 8D(3) The entire amount deducted on account of TDS shall be deposited within 30 days from the end of the each month in form prescribed in quadruplicate. The payment is to be made consolidated for all contractors. Cheque is to be made in favour of Syndicate Bank-Account Trade tax.

TDS shall be deposited within 30 days from the end of the each month in form prescribed in quadruplicate



102

3. Sec 8D(4) TDS certificate in From No. 31 is required to be furnished to the contractor at the time of deduction.

TDS certificate in From No. 31 is required to be furnished to the contractor at the time of deduction.

HIMACHAL PRADESH

1. Sec 12A


Any person paying any sum to

any contractor for the

execution of works contract

shall at the time of payment

deduct an amount equal to 2%

as TDS.

2. Rule 31A(3) The entire amount deducted on account of TDS shall be deposited within 15 days from the end of the month for which it is made in form ST-X in quadruplicate. The payment is to be made individually for all contractors. Cheque is to be made in favour of Excise and Taxation Officer.

TDS shall be deposited within 15 days from the end of the month for which it is made in form ST-X in quadruplicate.

3 Rule 31A(4) TDS certificate in From No. ST-XI is required to be furnished to the contractor at the time of deduction.

TDS certificate in From No. ST-XI is required to be furnished to the contractor at the time of deduction.

4. Rule 31A(5) Quarterly Return in Form ST-XIA is to be filed with Asst. Excise and taxation Commissioner within 30 days from the expiry of each Quarter along with the copy of TDS certificates and Deposit challan.

Quarterly Return in Form ST-XIA is to be filed with Asst. Excise and taxation Commissioner within 30 days from the expiry of each Quarter along with the copy of TDS certificates and Deposit challan.



103

CHHATISGARH

1. Sec 35(1) Sec 35D

TDS on works Contract at the Rate of 2% is to be deducted where aggregate payment made to the contractor during the financial year is Rs. 1,00,000 or more.

Obtain a Registration No. In Form 42A within 30 days from the date when the contractee is liable to deduct tax.



2. Rule 42 The entire amount deducted on account of TDS shall be deposited within 10 days from the date of deduction in form no. 39 in quadruplicate. The payment is to be made individually for all contractors. Cheque is to be made in favour of Commercial tax Officer-Vanijya Kar.

TDS shall be deposited within 10 days from the date of deduction in form no. 39 in quadruplicate.

3. Rule 42 TDS certificate in From No. 42 is required to be furnished to the contractor at the time of deduction of tax.

TDS certificate in From No. 42 is required to be furnished to the contractor at the time of deduction of tax.

4. Sec 35C Rule 42B Quarterly Return in Form 42C is to be

filed within 30 days from the expiry of each Quarter.

Quarterly Return in Form 42A is to be filed within 30 days from the expiry of each Quarter.

HARYANA



104

1. Sec 25B TDS on works Contract at the Rate of 4% is to be deducted where aggregate payment made to the contractor during the financial year is Rs. 1,00,000 or more.


2. Rule 30A The entire amount deducted on account of TDS shall be deposited within 15 days from the end of the month for which deduction is made in form no. ST XI in quadruplicate. The payment is to be made individually for all contractors. Cheque is to be made in favour of Assessing Authority-Gurgaon.

TDS shall be deposited within 15 days from the end of the month for which deduction is made in form no. ST XI in quadruplicate.

3. Rule 30A Triplicate copy of from ST XI shall be provided to the contractor as a certificate.

Triplicate copy of from ST XI shall be provided to the contractor as a certificate.

4. Quarterly Return in Form R-4A is to be filed within 30 days from the expiry of each Quarter.

Quarterly Return in Form R-4A is to be filed within 30 days from the expiry of each Quarter.

MADHYA PRADESH



105

1. Sec 35(1) TDS on works Contract at the Rate of 2% is to be deducted where aggregate payment made to the contractor during the financial year is Rs. 1,00,000 or more.




2. Rule 42(2) The entire amount deducted on account of TDS shall be deposited within 10 days from the date of deduction in form no. 39 in quadruplicate. The payment is to be made individually for all contractors. Cheque is to be made in favour of Commercial tax Officer-Vanijya Kar.


3. Rule 42(3) TDS certificate in From No. 42 is required to be furnished to the contractor at the time of deduction of tax.

TDS certificate in From No. 42 is required to be furnished to the contractor at the time of deduction of tax.

4. Quarterly Return in Form 42C is to be filed within 30 days from the expiry of each Quarter.

Quarterly Return in Form 42C is to be filed within 30 days from the expiry of each Quarter.

ASSAM

1. Sec 27 TDS on works Contract at the Rate of 4% is to be deducted

where aggregate payment made to the contractor during the

financial year exceeds Rs. 5,000.

TDS on works Contract at the Rate of

4% is to be deducted where aggregate

payment made to the contractor during

the financial year exceeds Rs. 5,000.



106

2. Rule 35 The entire amount deducted on account of TDS shall be deposited within 10 days from the end of the month for which deduction is made in form no. XII in quadruplicate. The payment is to be made individually for all contractors. Cheque is to be made in favour of SBI-Govt. Dues

TDS shall be deposited within 10 days from the end of the month for which deduction is made in form no. XII in quadruplicate.

3. Rule 35 TDS certificate in From No. XIV in duplicate is required to be furnished to the contractor within 7 days from the date of deposit of tax.

TDS certificate in From No. XIV in duplicate is required to be furnished to the contractor within 7 days from the date of deposit of tax.

BIHAR

1. Sec 25 Rule 26A TDS on works Contract at the Rate of 4% is to be deducted


financial year exceeds Rs. 25,000.

Where the amount exceeds Rs. 5,00,000 a surcharge at the rate of 12% of the amount of TDS is also to be deducted.




the financial year exceeds Rs. 25,000.

Where the amount exceeds Rs. 5,00,000 a surcharge at the rate of 12% of the amount of TDS is also to be deducted.

2. Rule 26A(3) The entire amount deducted on account of TDS shall be deposited within 25 days from the end of the month for which deduction is made in form no. XVII along with Form A/A1 in quadruplicate. The payment is to be made individually for all contractors. Cheque is to be made in favour of SBI-Govt. Dues

TDS shall be deposited within 25 days from the end of the month for which deduction is made in form no. XVII along with Form A/A1 in quadruplicate.



107

3. Original and duplicate Form A/A1 is to be furnished to the contractor as TDS certificate.

Original and duplicate Form A/A1 is to be furnished to the contractor as TDS certificate.

4. Rule 26A(5) Quarterly Return in Form- A II along with TDS certificate and deposit challans is to be filed within 30 days from the expiry of each Quarter.

Quarterly Return in Form- A II along with TDS certificate and deposit challans is to be filed within 30 days from the expiry of each Quarter.

GUJARAT

1. Sec 57B TDS on works contract is to be deducted at the rate of 2% on Any amount payable to the contractor for the execution of works contract.

TDS on works contract is to be deducted at the rate of 2% on Any amount payable to the contractor for the execution of works contract.

2. Sec 57B(6) The entire amount deducted on account of TDS shall be deposited within 30 days from the date of deduction in form no. 33 in quadruplicate. The payment is to be made individually for all contractors. Cheque is to be made in favour of SBI-Govt. Dues


3. Rule 32A TDS certificate if Form No. 58 is to be furnished to the Contractor.

TDS certificate if Form No. 58 is to be furnished to the Contractor.



108

4. Sec 57A A return in the prescribed form and within such period as may be prescribed shall be furnished to the Sales Tax Officer.

A return in the prescribed form and within such period as may be prescribed shall be furnished to the Sales Tax Officer.

ORISSA

1. Sec 13AA(1) TDS on works Contract at the Rate of 4% is to be deducted


financial year exceeds Rs. 1,00,000.




the financial year exceeds Rs. 1,00,000.

2. Sec 13AA(3) Rule 37A The entire amount deducted on account

of TDS shall be deposited within 7 days from the date of deduction in form no. XI in quadruplicate. The payment is to be made individually for all contractors. Cheque is to be made in favour of Sale Tax Officer.

TDS shall be deposited within 7 days from the date of deduction in form no. XI in quadruplicate.



109

3. Rule 37B TDS certificate if Form XIA is to be prepared in Triplicate.

Origimal copy is to be furnished to Sales tax Officer. Duplicate Copy is to be furnished to the Contractor Triplicate copy is to be retained by the Contractee.

TDS certificate if Form XIA is to be prepared in Triplicate.

Origimal copy is to be furnished to Sales tax Officer. Duplicate Copy is to be furnished to the Contractor Triplicate copy is to be retained by the Contractee.

TRIPURA

1. Sec 3A Rule 3A TDS on works contract is to be deducted

at the rate of 4% on Any amount payable to the contractor for the execution of works contract.

TDS on works contract is to be deducted at the rate of 4% on Any amount payable to the contractor for the execution of works contract.

2. Rule 3A(3) The entire amount deducted on account of TDS shall be deposited within 7 days from the end of the month for which deduction is made in form no. XI. The payment is to be made consolidated for all contractors. Amount shall be deposited in Govt. Treasury.

TDS shall be deposited within 7 days from the end of the month for which deduction is made in form no. XI.

3. Sec 3A(4), Sec 3A(5) TDS certificate shall be issued at the

time of deduction along with copy of challan of deposit shall be furnished to the contractor with 7 days of deposit of tax.

TDS certificate shall be issued at the time of deduction along with copy of challan of deposit shall be furnished to the contractor with 7 days of deposit of tax.



110

4. Sec 3A(6) The person making deduction shall furnish to the Superintendent of Taxes having jurisdiction over the area, a report of such deduction within 15 days of date of deposit in Form VI-A

The person making deduction shall furnish to the Superintendent of Taxes having jurisdiction over the area, a report of such deduction within 15 days of date of deposit in Form VI-A

NOTE: For all other states TDS on works Contract is not applicable. While paying tax on works contracts, it is important to deduct the value of services from the contract and pay tax only on the component of goods or materials used in the contract. Service tax is applicable on the services provided under a composite works contract.



111

Sl.

No.

Sectio

n /

Clause

Ref.

Basic Requirement Of the Section Requirements For Implementing Complied

with

(Yes/No)

The Bombay Shops and Establishments Act, 1948

1

This Act extends to the whole state of Gujrat.

The various provisions of the Act are not applicable to

i) Travelers, canvassers and such other employees

ii) The members of an employer‟s family

iii) Persons occupying position of management.

2 Sec

7(1)

Registration:

Within 30 days from the date of commencement of its work, the

employer of every establishment shall send to the Inspector of the

local area concerned a statement, in prescribed form, together with

such fees as may be prescribe; containing:-

a) the name of the employer and manager, if any;

b) the postal address of the establishment;

c) the name, if any, of the establishment;

d) the category of the establishment, i.e., whether it is a shop,

commercial establishment, residential hotel, restaurant, eating

house, theatre or other place of public amusement or

entertainment; and

e) Such other particulars as may be prescribed.

Apply for registration in Form A to

the inspector of local area along with

the fees prescribed in Schedule I.

3 Sec

7(6)

Renewal of Registration:

An employer holding a registration certificate shall make an

application for its renewal in the prescribed form to the inspector not

later than 15 days before the date of its expiry. Such fee as may be

prescribed shall accompany such application.

Make an application for renewal of the

registration certificate in Form D not

later than 15 days before the date of its

expiry.

4 Sec

7(9)

The registration certificate shall be prominently displayed at the

premises of the establishment.

Display prominently the registration

certificate at the premises of the

establishment.

5 Sec 8

Change to be communicated:

It shall be the duty of an employer to notify to the inspector, in

prescribed form any change in any of the particulars contained in

the statement submitted u/s 7 with in such period, after the

change has taken place, as the state govt. may prescribe. The

inspector shall on receipt of such notice and the prescribed fees

and on being satisfied about its correctness, amend the

registration certificate or issue a fresh certificate if necessary.

Notify the changes to the inspector in

form E within 30 days alongwith fee

prescribed in Schedule III , If there is

any change in the particulars of the

statement submitted u/s 7.

6 Sec 9 Closing of the Establishment to be communicated:

The employer shall within 10 days on his closing the establishment,

notify to the inspector in writing accordingly.

Inform the inspector within 10 days on

disclosure of the establishment.

7 Sec10

& Sec

11

Opening & Closing Hours:

No shop or commercial establishment on any day, be opened

earlier than such hour or closed later than such hour, as may be

fixed by the Government.

Fix the opening and closing hours of

work in the manner prescribed.



112

8

Sec 14

Daily & Weekly hours of work:

(1) No employee shall be required or allowed to work for more

than 9 hrs in any day and 48 hrs in any week.

(2) An employee may be required or allowed to work for any

period in excess of the limit fixed under sub-section (1), if

such period does not exceed 3 hrs in any week.

(3) On not more than 6 days a year which the state govt. may fix

by rules made in this behalf, for the purpose of making

accounts, stock taking, settlements or other prescribed

occasions, any employee may be required or allowed to work

in excess of the period fixed under subsection (1), if such

period does not exceed 24 hrs.

Daily and weekly hours of work of the

employees shall not exceed as

prescribed.

9

Sec 15 Interval for Rest:

(1) The period of work of an employee in a shop and commercial

establishment each day shall be so fixed that no period of

continuous work shall exceed 5 hrs and that no employee shall

be required or allowed to work for more than 5 hrs before he

had an interval for rest of at least :-

(i) ½ hour, if he is employed in a commercial establishment

engaged in any manufacturing process, and

(ii) 1 hour in any other case, subject, however, to the provisions

of sub-section (2).

(2) In the case of employees falling u/s 15 (1)(ii), the state govt., on

an application made in that behalf by the employees concerned

may permit the reduction of the interval for rest to half an hour.

Provide interval for rest as per the

provisions.

10

Sec 16

& Sec

17

Spread-over:

The spread-over of an employee in a shop and in a commercial

establishment shall not exceed 11 hours in any day.

Provided that in case of employees working in shops in accordance

with the provisions of section 14(2), the spread-over shall not exceed

14 hrs in any such day and where he works on any day in accordance

with the provisions of section 14(3), the spread-over shall not exceed

16 hours in any such day.

The spread-over in any day of an

employee should not exceed 11 hrs.



113

11

Sec 18 Holidays in a week:

(1) Every shop & commercial establishment shall remain closed on

one day of the week. Except where the day is fixed under sub-

section (1B) the employer shall prepare a calendar or list of such

closed days notify such calendar or list to the inspector and

specify it in a notice prominently displayed in a conspicuous

place. Such calendar or list shall be prepared at the beginning of

the year.

(1A) Notwithstanding anything contained in sub-section (1) but

except where the day is fixed under sub-section (1B), it may remain

open on any day notified as a closed day under sub-section (1), if –

(a) it remains closed on any other day of the week; and

(b) the employer has notified to the inspector, his intention of such

closure at least 7 days before the substituted day under clause

(a) or the day notified as closed day under sub-section (1),

whichever is earlier.

(1B) The state govt., in respect of any area, may fix the day on which

a shop or commercial establishment shall remain closed every week.

Provided that nothing in this clause shall apply to a shop or

commercial establishment, the employer of which has notified to the

inspector at the beginning of the year his intention to close on a public

holiday with in the meaning of Negotiable Instruments Act, 1881.

No deduction shall be made from the wages of any employee on

account of any day on which it has remained closed under this

section. If the employee is employed on daily wage, he shall none the

less be paid his daily wage for the day. Similarly if any employee is

paid a piece rated wage, he shall none the less be paid his wage for

the day at a rate equivalent to the daily average of his wages during

the six days preceding such closed day.

Every shop & commercial

establishment shall remain closed on

one day of the week subject to

provisions contained in clause (1A)

and (1B) of section18.

Do not make deduction from wages of

any of the employees including

employees employed on daily basis

and piece rate basis, on account of

such closed day.

Provided that nothing in this sub-section shall apply to any person

whose total period of continuous employment is less than 6 days.

12 Sec 32

No child shall be required or allowed to work whether as employee or

otherwise in any establishment.

No child shall be required or allowed

to work.

13 Sec 33

No young person or woman shall be required or allowed to work

whether as employee or otherwise in any establishment before 6 a.m.

and after 7 p.m.

No young person or woman to work

before and after the time prescribed.

14 Sec 34

(1) Notwithstanding anything contained in this Act, no young person

shall be allowed to work for more than 6 hrs in any day.

(2) No young person shall be required or allowed to work for more

than 3 hrs in any day unless he has had an interval for rest of at

least half an hour.

Young person not to work for more

than 6 hrs a day.

Young person to be allowed rest for at

least ½ hr in case he works for more

than 3 hrs. in any day.



114

15 Sec

34A No young person or women be required or allowed to perform such

work which is declared by the state govt. to be work involving danger

to life, health or morals.

No young person or women be

allowed to work which involves

danger to life, health or morals.

16 Sec 35

Leave:

(1) (a) Subject to the provisions of clause (b), every employee who

has been employed for not less than 3 months in any year, shall for

every 60 days on which he has worked during the year be allowed

leave for a period of not less than 5 days.

(b) every employee who has worked for not less than 240 days,

during a year shall be allowed leave for a period of not less than 21

days.

Provided that such leave may be accumulated upto a maximum period

of 63 days.

Explanation: The leave allowed to an employee under clauses (a) &

(b) shall be inclusive of the day or days during the period of such

leave on which a shop or commercial establishment remains closed

u/s 18.

(1B) In addition to above, every employee shall be entitled to leave

with wages as follows :-

(i) Casual leave for 7 days in a year,

(ii) Leave on medical grounds for not more than 7 days in

a year, and

(iii) Leave for not more than 4 days in a year on any of the

days which the state govt. may declare to be National

and Festival Holidays.

(2) If an employee entitled to leave, resigns, retires or is discharged

by his employer before he has been allowed the leave, the employer

shall pay him the amount payable under section 36 in respect of the

leave.

Allow the leaves in the manner

prescribed.

17 Sec 36

Every employee shall be paid for the period of his leave at a rate

equivalent to the daily average of his wages for the days on which he

actually worked during the preceding 3 months, exclusive of any

earning in respect of overtime.

Every employee shall be paid for the

period of his leave as per the

provisions prescribed.

18 Sec 37

An employee, who has been allowed leave u/s 35 shall, before his

leave begins, be paid half the total amount due to him for the period

of such leave.

Pay half of the total amount due to an

employee for the period of leave u/s

35 before such leave begins.

19 Sec 39,

Sec 39,

sec 40,

Sec 41

and

Sec 42

There should be cleanliness, ventilation, lighting and precautions

against fire in the premises as may be prescribed.

Maintain cleanliness, ventilation,

lighting and precautions against fire in

the premises as may be prescribed.



115

20 Sec 51 Every employer and in his absence the manager shall on demand

produce for inspection of an inspector all register, records and notice

required to be kept under and for the purposes of this Act. Produce before inspector for

inspection all the documents

maintained under this act.

21 Sec 62

Maintenance of Registers and records and display or notices:

Subject to the general or special order of the state govt., an employer

shall maintain such registers and records and display on premises of

his establishment such notices as may be prescribed. All such

registers and records shall be kept on the premises of the

establishment to which they relate.

Rule 23:

i) Maintain a register of

employment in Form I,

provided that where the

opening and closing hours

are ordinary uniform the

employer may maintain such

register in form J.

ii) Maintain a register of leave

in Form N

iii) Provide to the employees a

book called „Leave Book‟ in

Form O.

iv) Exhibit in the establishment a

notice containing such

extracts of the act and rules

as the local authority and

Government may direct.

v) Preserve the registers and

records until the end of the

next year.

vi) Maintain a visit book in

which the inspector visiting

may record his remarks.

22 Sec

62A

Employers to furnish identity card to employees:

This section is applicable to such an establishment which is

notified by the government in the official gazette.

The employer shall furnish to each employee an identity card

containing therein:-

a) name & address of the employer

b) name & postal address of the establishment

c) full name, address and designation of the employee

d) Date of Birth of the employee

e) Date on which the employee has joined the service in the

establishment

f) Recent passport size photograph duly signed by the employee

g) Hours of work, interval for rest and holidays, of the employee

h) Signature (with date) of the employer or manager.

The cost of such identity card be borne by the employer.

Every employee is to be issued an

identity card in accordance with the

provisions.



116

23 Sec

62B

Rule

25

Exhibition of Signboard:

Every employer shall conspicuously display on the main entrance,

a wooden or metal signboard of such size, painted in such manner

and containing such particulars as may be prescribed.

Display on the main entrance a

signboard painted in oil colours, of a

size which shall not be less than 45

cms, in length and 30 cms, in breadth

containing the name of the

establishment and full name of the

proprietor or all partners as also the

registration number of the

establishment written in Gujrati or

English.

24 Sec 63

Wages for overtime work:-

Where an employee in any establishment other than a residential

hotel, restaurant or eating house, is required to work in excess of the

limit of hrs of work, he shall be entitled, in respect of the overtime

work, to wages at the rate of one & a half times his ordinary rate of

wages.

„Limit of hours‟, in case of an employee in any establishment other

than a residential hotel, restaurant or eating house, means 9 hrs in any

day and 48 hrs in any week.

Pay wages for overtime as prescribed.

25 Sec 66

Notice of termination of Services:

No employer shall dispense with the services of an employee who has

been in his continuous employment :-

(a) for not less than a year, without giving such person at least 30

days‟ notice in writing or wages in lieu of such notice;

(b) for less than a year but more than 3 months, without giving such

person at least 14 days‟ notice in writing or wages in lieu of such

notice.

Provided that such notice shall not be necessary where the services of

such employees are dispensed with for misconduct.

Minimum 30 days or 14 days notices

to be given as the case may be before

termination of the services of the

employee.



117

Employees Provident Fund Act, 1952

Sl. No.

Section / Clause

Ref.



(Yes/No)

1. Sec 1(2) This Act is applicable to whole of India Except the State Of Jammu And Kashmir It applies to every establishment in which 20 or more persons are employed.



118

2. Sec 6, 6A, 6C

(I) Total contribution by the employer shall be 13.61% of wages, Dearness Allowance and Retaining Allowance payable to each of the employee. (vi) 8.33% shall be paid to the credit of

Employee Pension Fund under Pension Scheme.

(vii) 3.67% shall be paid to the credit of Provident Fund.

(viii) .50% shall be paid to the credit of Employee‘s Deposit Link Insurance Scheme.

(ix) 1.10% shall be paid to the credit of Insurance scheme for the Administration Charges of the scheme.

(x) 0.01% Inspection Charges (II) Total contribution by the employee shall be 12% of the wages. Employees may contribute more than 12% but employer is under no obligation to contribute more than 12%. Notes: 1. Wages for the purpose means all emoluments earned by an employee while on duty (or on leave or on holidays with wages) but does not include: (iii) The cash value of any food concessions. (iv) Any Dearness Allowance, House Rent

Allowance, Overtime Allowance, Bonus, Commission or any other similar allowance payable to employee.

2. Para. 7 of Employee‘s Deposit Link Insurance Scheme, 1976 – Where the monthly pay of the employee exceeds Rs. 6500, the contribution payable by the employer in respect of Deposit Link Insurance Scheme shall be calculated on a monthly pay of Rs. 6500.

Calculate the amount of contribution as per the section



119

3. Para. 38 of PF

Scheme, Para 8 of Deposit Link ins. Scheme.

Employer shall deposit employer‘s contribution and employee‘s contribution within 15 Days of the end of every month. Separate cheques shall be drawn on account of contributions and administration charges.

Deposit the contributions within 15 days of the end of each month drawing separate cheques for contributions and administration charges.

4. Para 38(2) of

PF scheme.

Employer shall forward a monthly abstract in such form specified by the commissioner within 25 days of the end of the month to the commissioner.

Deposit the monthly abstract in the prescribed form to the commissioner within 25 days of the end of each month.

5. Para 38(3) of

PF Scheme

Employer shall send Annual contribution Statement in Form 6-A to the commissioner within 1 month from the close of the Year. Employer shall maintain duplicate copies of such Statement on his records and such statements shall be produced on demand to the Inspector during Inspection.

Send Annual contribution Statement in Form 6-A to the commissioner within one month of the end of the year.

6. Para 34, 36(2) of

PF Scheme

and Para. 10

of Deposit

Link Insuranc

e Scheme.

The employer before taking any person into employment shall ask him to state whether he is a member of the fund or not and if he is, ask for his account No. and name and particulars of the last employer. Such declaration shall be made in Form 2. A return shall be send to the commissioner in Form 5 within 15 days of the end of each month together with declaration of the employees in Form 2. Employer shall maintain inspection book in such form as specified by the commissioner for the inspector to record his observation on his visit to the establishment.

Receive the declaration from the existing and new employees in Form 2. Send the return in Form 5 together with declaration of the employees in form 2 to the commissioner within 15 days of the end of each month. Prepare the inspection book as specified by the commissioner.

7. Para 36A of PF

Scheme

Every employer shall furnish particulars of all branches and department owners, occupiers, partners, manager to the Regional Commissioner in Form 5A and also intimate any changes there in within 15 days of such change.

Furnish the particulars of all branches etc. in Form 5A to the Regional Commissioner.

8. Para. 35 and

Para. 40 of PF

Scheme

Every employer shall prepare a Contribution Card in Form 3 or Form 3A in respect of every employee. The amount recovered every month from the wages of the employee as well as contribution made by the employer shall be entered by the employer in the contribution card opened in the name of each employee.

Prepare the Contribution Card in Form 3 or form 3A in respect of each employee. Entered the amount of employer‘s and employee‘s contribution in the contribution card.



120

9. Para. 43 of PF

Scheme

Every employer shall within one month form the end of each month send the Contribution Card to the commissioner together with statement in From 6

Prepare the statement in From 6 and send the statement along with Contribution Card to the Commissioner within one month from the end of each month.

Notes: 2. Sec. 12 of the Act. —No employer shall reduce the wages of the employee on

account of the contribution made by the employer.



121

Contract Labour (Regulation & Abolition) Act, 1970

Sl. No.




1. Applicability Sec 1

The Act is applicable all over India.

This Act Applies to:

Every establishment in which 20 or more workmen are employed or were employed on any

day of the preceding 12 months as Contract Labour.

2. Sec 7, & Rule 17 of Central

Rules.

Every establishment to which this Act applies shall apply for registration to the registering officer in Form I in triplicate. At present there is no uniform practice for registration under the aforesaid Act and circles

are registering under the State Government or the Central government depending on the

notices received from the labor department. A writ has been filed in the High Court at Delhi and Bangalore seeking clarification on the jurisdiction( whether State or Central) from the

court since notices have been received from the central and state authorities in many states

seeking registration under both departments. The outcome of the case will be intimated for compliance. At this point, it is necessary to ensure that every circle is registered under at

least one department )either state or central government department) pending issue of a

formal clarification or notification

Apply for the registration to the Registration Officer or Licensing Officer (Central or State Government) in Form I as applicable.

3. Sec 12, Sec 13 and Rule 21, Rule 25(ix)

No contractor shall be appointed unless he has obtained a license from the licensing authority to act as a contractor. The license has to be applied in Form IV. At the time of application by the contractor for license u/s 12, the contractor furnish the location of the establishment, nature of process and operation for which contract labour shall be employed. Principle Employer shall give a certificate in From V to the contractor to the effect that the applicant has been employed by him as a contractor and he shall be bound by all the provisions of the act and rules made there under. A copy of license shall prominently be displayed at every establishment where contract labour is employed.

While employing a contractor verify the license of the contractor. Furnish a Certificate in Form V to the contractor as required by the Section and Rule.

4. Sec 29 Every Principal Employer and every contractor shall maintain the Registers & Records containing the following:

(i) Full particulars of the employee (ii) The nature of work performed by Contract

Labour,

Maintain the records and registers as required by the section. Exhibit the notice in the premises of the



122

(iii) The rate of wages paid to the contract labour. Every Principal Employer and every Contractor shall exhibited in the premises of the establishment notices in the prescribed form containing particulars about: (i) Hours of work. (ii) Nature of work

establishment as required.

5. Rule 74

Every Principal Employer shall maintain a register of contracts in Form XII in respect of each registered establishment.

A register of Contractor is to be maintained in Form-XII.

6. Rule 73

The authorised representative of the Principal Employer shall certify at the end of the entries in Register of wages of the Contractor that the amount shown has been paid to the workmen concerned in his presence.

Certify at the end of the Register of Wages that the wages are paid in the presence of the authorised representative of the Principal Employer.

7. Sec. 16 & Rule-42

In every establishment where more than 100 Contract labour are employed and it is likely that work will continue for more than 6 months than an adequate canteen shall be provided by the contractor within sixty days from the date of commencement of the employment of Contract labour. If the Contractor fails to provide the canteen then principle employer shall provide the same.

If the contractor does not provide the canteen facility then provide for the same in the establishment.

8. Sec 17 & Rule 41.

In every establishment wherein contract labour is required to halt at night in connection with the work, the contractor shall provide for the rest rooms. If the said facility is not provided by the contractor then that should be provided by the Principal Employer

If the contractor does not provide the rest room facility then provide for the same in the establishment.

9. Rule 82(2)

Principal Employer has to send Annual Return in Form XXV in Duplicate on or before 15th February following the End of the Concerned year to Labour Commissioner.

Submit a return in Form XXV on or before 15th February following the end of the concerned year to the Labour Commissioner.

10. Rule 81(3)

Every Principal Employer shall with in 15 days of the commencement and completion of each contract work submit a return to the inspector intimating the actual date of commencement or completion of such contract work in Form-VIA.

Submit a return in form VIB within 15 days of commencement and completion of contract work to the inspector.



123

THE FACTORIES ACT, 1948

Sl. No.

Section / Clause

Ref.

Basic Requirement Of the Section Requirements of Implementation


1. Sec. 2 (ii) & Sec.6

The Act is applicable to any premises where 10 or More persons with the aid of power or 20 or more workers without the aid of power were working on any Day in the preceding 12 months, wherein manufacturing Process is being Carried out. Registration Application should be made to Chief Inspector of the State appointed in this behalf.

Application for Registration should be made to Chief inspector of Factory of the State

2. Following Registers are to be maintained under the Act: 1. Register of Hygrometer (Humidity) in Form –6. 2. Register of white washing in Form 7. 3. Register of Tight Cloths provided in Form 7A 4. Register of Compensatory Holiday in Form 9. 5. Register of overtime for exempted workers in form

10. 6. Register of Adult Worker in Form 12.

All the registers & Records should be maintained at the Factory Premises.

3 As and when there is Change in the Name of occupier or Manager of the factory it should be informed to the Chief Inspector of the State in Form 3. As and when any accident happens Information to the Chief

Inspector is to be given in following forms:

1. Form18 -- Notice of Accident & Dangerous occurrence as &

when Occurred.

2. Form 18A -- Notice of Accident & Dangerous Occurrence not

resulting Bodily Injury to any workman.

3. Form 19 -- Notice of Accident & Dangerous occurrence

(Poisoning or Disease.)

4. Form 37 -- Report of Hoist of Lifts.

Inform the Chief Inspector on the occasions mentioned in the section in the prescribed forms.

4. Sec 72 Sec 61

Following notices should be displayed in the factory premises 1. Notice of period of work for Adult Worker in form 11. 2. Notice of period of work for Child Worker in form 13.

These Notices should be Affixed in Visible Place in the factory premises.



124

5. Following returns are to be submitted to the Chief Inspector: 1. Annual Return ending 31st December in Form 21. 2. Half-Yearly Return in Form 22. 3. Accident Annual Return in Form 31. 4. Monthly Return of Hazardous Happenings only in

Form 34. 5. Report of Hoist of Lifts in Form 37.

1. Annual return should be submitted to the chief inspector of Factory by 31st December.

2. Half-Yearly Return should be submitted By 30th June.

3. Accident Annual Return shall be submitted by First Week of February.

6. Sec.11 to 20

Employer to ensure the health of worker pertaining to Cleanness, disposal of wastage, and effluents, ventilation & Temperature, dust & Fumes, Overcrowding, Lighting, Drinking Water, etc.

It should be ensured that the proper Compliance has been made in these regards.

7. Sec. 42 to 49

The proper welfare measure has to be taken related to washing facilities, facilities for sitting, First Aid appliance, Canteen when there is more than 250 workers, rest rooms when there is more than 150 workers, crèches if there is more than 30 women workers.

All the welfare measures should be complied with.

8. Sec 114 No charge shall be realised from the workers in respect of any arrangement or facility to be provided under the Act by the employer except for the canteen facility wherein only the cost of the food provided shall be charged from the workers



125

The Payment of Gratuity Act, 1972.

Sl. No.


Basic Requirement of the Section Requirements For Implementing

Complied with

(Yes/No)

1. Sec 1

Applicability

This act shall apply to: (a) Every factory, mine, oil field, plantation, port and railway

company. (b) Every shop or establishment in which 10 or more persons are

employed on any day of the preceding 12 months.

2. Sec 4(1), 2(e), 2A

Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for 5 years and above (a) On his superannuation, or (b) On his retirement or resignation, or (c) On his death or disablement due to accident or disease. Where termination of employment is due to death or disablement, continuous service of 5 years or more is not necessary. Employee means any person (Other than apprentice) employed on wages in any establishment to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are expressed or implied and whether or not such person is employed on a managerial or administrative capacity, but does not include any such person who holds a post under the Central Govt. or State Govt. and is governed by other act. Disablement means such disablement as incapacitates an employee for the work, which he is capable of doing before the accident or disease resulting in such disablement.

Determine whether an employee is eligible to be paid Gratuity as per the section



126

Continuous Service

For the purpose of this Act – (1) An employee shall be in continuous service if he has

been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave, lay off, strike or a lock out or cessation of work not due to fault of the employee.

(2) Where an employee is not in continuous service as per

clause (1) above, he shall be deemed to be in continuous service under the employer –

(a) For the period of one year, if the employee during the

period of 12 calendar months preceding the date has actually worked under the employer for not less than –

(i) 190 days in case of employee employed below the

ground in a mine or in an establishment, which works for less than six days in a week; and

(ii) 240 days in any other case. (b) For the period of six months, if the employee during the

period of six months preceding the date, has actually worked under the employer for not less than –

(i) 95 days in case of employee employed below the

ground in a mine or in an establishment, which works for less than six days in a week; and

(ii) 120 days in any other case. For the purpose of clause (2) the number of days an employee has actually worked under an employer shall include the days on which— (i) He has been on leave with full wages, earned in the

previous year, (ii) He has been absent due to temporary disablement

caused by accident arising in the course of his employment; and

(iii) In the case of a female, she has been on maternity leave, however the total period of such maternity leave does not exceeds 12 weeks.

(3) In case of seasonal establishment, employee shall be deemed to be in continuous service if he has worked for 75% of the days on which establishment was in operation during such period.



127

3. Sec. 4(2)

The amount of Gratuity shall be calculated as follows: (1) 15 days wages based on the wages last drawn by the

employee concerned for every completed year of service or part thereof in excess of six months.

(2) Rs. 3,50,000 Whichever is less.

Notes: 1. In case of piece rated employee, daily wages shall be

computed on the average of the total wages received by him for the period of three months immediately preceding the termination of his employment and any wages paid for the overtime shall not be taken into account.

2. In case of seasonal establishment the employer shall pay Gratuity at the rate of 7 days wages for each season.

3. In case of monthly rated employees 15 days wages shall be calculated by dividing the monthly rate of wage last drawn by 26 and multiplying the Quotient by 15.

4. For the purpose of computing the Gratuity payable to an employee who is employed after his disablement on a reduced wages, his wages for the period preceding the disablement shall be taken to be wages received by him during that period and his wages for the period subsequent to disablement shall be taken to be wages as so reduced.

5. The Gratuity of an employee may be forfeited, to the extent of loss, whose services have been terminated for any act, willful omission or negligence, causing any damage or loss to the property belonging to the employer

6. The Gratuity payable to an employee may be forfeited if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part or his services have been terminated for any act which constitute an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.

Calculate the amount of Gratuity as per the section

4. Sec7(2) As soon as Gratuity becomes payable employer shall determine the amount of Gratuity payable and give notice in writing to the person to whom the Gratuity is payable and also to the controlling authority specifying the amount of Gratuity so determined.

As soon as Gratuity becomes payable employer shall determine the amount of Gratuity payable and give notice in writing to the person to whom the Gratuity is payable and also to the controlling authority specifying the amount of Gratuity so determined.



128

5. Sec 7(3) and Rule 9 of the

Central Rules

The employer shall arrange to pay the amount of Gratuity within 30 days from the date it becomes due. The gratuity payable under the act shall be paid in cash or in demand draft or bank cheque to the employee, nominee or legal heir as the case may be. Intimation about the details of payment shall also be given by the employer to the controlling authority of the area.

Pay the amount of Gratuity by cash or cheque or demand draft within 30 days from the date it becomes due. Also send the details of payment to the Controlling Authority of the Area.

6. Sec 7(4)(a), 7(4)(b)

If there is any dispute as to the amount of Gratuity payable or as to the admissibility of claim or as to the person entitled to receive the Gratuity, The employer shall deposit the amount he admits to be payable with the Controlling Authority. Where there is dispute, the person raising the dispute may make an application to the controlling authority for deciding the dispute.

If there is any dispute deposit the amount of Gratuity with the Controlling Authority

7. Rule 3 of Central Rules

Within 30days of the Act becoming applicable to an establishment the employer to the controlling authority of the area shall submit a notice in Form A. A notice in Form B shall be submitted by the employer to the controlling authority within 30 days of any change in the name, address, employer or nature of the business. Where the employer intends to close down the business he shall submit a notice in Form C to the controlling authority atleast 60 days before the intend closure.

Submit a notice in Form A or Form B or Form C as required by the Rule.

8. Rule 4 of the Central Rules

The employer shall display a notice at the main entrance of the establishment in bold letters in English and in the language understood by the majority of the employees specifying the name of the officer with designation authorised by the employer to receive notices under the act.

Display a notice at main entrance giving name of the person who is authorised to receive notices under the act

9. Rule 6(2) of the Central

Rules

Within 30 days of the receipt of nomination in Form F the employer shall get the service particulars of the employee as mentioned in the form and verify them with reference to the records of the establishment. After verifying the contents return to the employee a duplicate copy of the Form F duly attested by the employer or any authorised officer in this behalf.

Verify the contents of Form F of nomination given by the employee with the records of the establishment and return duly attested copy of the form to him



129

10. Rule 7 and 8 of the

Central Rules

An employee who is eligible for the payment of Gratuity shall file an application if Form I to the employer within 30 days of Gratuity becoming payable. In case nominee of the employee if filing the application he shall file the application in Form J within 30 days. In case Legal Heir of an employee is filing application he shall file application in From K in 30 days. Within 15 days of receipt of application the employer shall :-- (i) If the claim is found admissible on verification, issue a

notice in Form L to the applicant employee, nominee or legal heir as the case may be specifying the amount of Gratuity payable and fixing the date not later than 30th day after the receipt of application for the payment of Gratuity.

(ii) If the claim is not found admissible issue a notice in Form M to the applicant specifying the reason why the claim is not considered admissible.

In both the cases a copy of notice is also to be delivered to the controlling office.

After receiving notice from the employee in form I, J or K, issue a notice to the applicant in Form L if the claim is admissible and in From M if the claim is not admissible.

11. Rule 20 of the Central

Rules

The employer shall display an abstract of the act and rules made thereunder given in Form U in English and in the language understood by the majority of the employees at or near the main entrance of the establishment.

Display an abstract of the act and rules made thereunder given in Form U in English and in the language understood by the majority of the employees at or near the main entrance of the establishment.



130

The Employee State Insurance Act, 1948

Sl. No.


Basic Requirement Of the Section Requirements For Implementing


1. Sec 2(b) & Rule 50 of

Central Rules.

Applicable to employees whose salary (excluding remuneration for overtime work) is Rs. 6500 or less.

2. Sec 2A & Rule 10-B of

General Regulations

Registration under ESI Act is applicable if the number of employees in a company exceeds 20. Registration to be done within 15 days from the applicability of the Act. Declaration of Registration in Form 01 to be submitted containing (i) The name and address of the establishment (ii) Number of employees. (iii) Nature of duty and (iv) Name, designation and address of the

manager controlling such person in respect of office situated outside.

Registration to be done within 15 days from the applicability of the Act. Declaration of Registration in Form 01 to be submitted containing particulars required by the section.



131

3. Rule 11,12 & 14 & 15 of General

rules

The employer shall require every employee to furnish such information as required by the Declaration Form in Form 1 and such declaration form to be submitted along with a return in duplicate in Form 3 to the appropriate office within 10 days from the day when the particulars were furnished. On the receipt of return the appropriate office shall allot an Insurance Number to each person in respect of whom Declaration Form has been received unless it finds that he had already been allotted an Insurance Number. The Temporary Identification Certificate with Insurance Number mentioned on it along with a copy of Form 3 shall be returned to the employer. The employer shall deliver the Temporary Identification Certificate to the employee to whom it relates. The employer shall enter the Insurance Number allotted to the employee on the Return of Contribution under Rule 26. Some of the Particulars of Form 1 are: (i) Name of the employee. (ii) Permanent Address (iii) Particulars of Employment (iv) Nomination Particulars (v) Temporary Identification Certificate. Some of the Particulars of Form 3 are: (i) Name and address of the factory and

establishment. (ii) Employer‘s Code No. (iii) Name of the employee. (iv) Distinguishing No. Of the employee with the

employer.

Collect the declaration of new employees and existing employees as per From 1 and submit the return in Form 3 along with Form 1 to the prescribed office within 10 days. Deliver the Temporary Identification Certificate to the employee to whom it relates containing the Insurance Number on it. Enter the Insurance Number allotted to the employee on the Return of Contribution under Rule 26. Some of the Particulars of Form 1 are: (vi) Name of the employee. (vii) Permanent Address (viii) Particulars of

Employment (ix) Nomination Particulars (x) Temporary Identification

Certificate. Some of the Particulars of Form 3 are: (v) Name and address of

the factory and establishment.

(vi) Employer‘s Code No. (vii) Name of the employee. (viii) Distinguishing No. Of

the employee with the employer.

4. Sec 43 & Rule 31 of

General Regulations

Contribution to be paid within 21 days of end of the month for which contribution is made.

Pay the contribution within 21 days of the end of each month.

5. Rule 51 of Central Rules

The amount of contribution shall be in respect of (a) Employer‘s contribution – 3.75% of wage

payable to an employee. (b) Employee‘s contribution – 1.75% of wage

payable to an employee

Calculate the amount of contribution employee wise as per the Rule.



132

6. Sec 44 & Rule 26 of General

Regulation

Return in Form 6 in Quadruplicate to be submitted in 42 days of the end of the contribution period.

Submit the return in Form 6 within 42 days from the end of the contribution period.

7. Rule 66 of General

Regulations

Every employer shall maintain Accident Book in Form 15 and enter there in particulars of every accident causing injury to an insured person. Such Book shall be preserve for a period of 5 Years from the period of last entry there in.

Maintain an Accident Book in Form 15 and preserve it for a period of 5 Years from the date of last entry there in.

8. Rule 102A of General

Regulations

Every employer shall maintain an Inspection Book, which shall be produced before every inspector or other officer of the Corporation. The inspector shall send a note of all irregularities and illegalities discovered at the time of inspection to the employer and employer shall enter the note and orders in the Inspection Book. Inspection Book shall be preserved for a period of 5 Years from the date of last entry there in.

Maintain the Inspection Book and enter all note and orders of the Inspector in that. The Inspection Book shall be preserved for the period of 5 Years from the date of last entry there in.



133

The Minimum Wages Act, 1948

Sl. No.


Basic Requirement of the Section Requirements for Implementing Complied with (Yes/No)

1. Applicability The Act is applicable all over India. Sec 27 – Any employment in respect of which minimum rates of wages should be fixed should be covered in the specified schedule Part – I.

As per the schedule (referring sec. 2(g) and sec. 27) the Act is not applicable to company with respect to employment in telecom industry.

2. Sec 12

Minimum wages fixed for a particular class of employees (including the wages on piece work basis) are must to be paid

Every office has to ensure that Minimum rates of wages prescribed for particular classes of employees in that Area are paid.

3. Sec 18 & Rule 21(4), 25(2), 26(5), 26(1), Rule

26A.

The employer is required to maintain the prescribed Registers and records giving particulars of employees employed, the wages paid to them and the receipts given by them. Following registers are to be maintained: 1. Register of Fines in Form I 2. Register For Overtime in Form IV 3. Muster Roll in Form V 4. Register of Wages in Form X

Maintain the Registers as prescribed by the Section.

4. Rule 21(4A)

Annual Return An Annual Return in Form III by the 1st February of the succeeding year to be furnished to the inspector or any other authority specified by the State Government in this behalf.

File an Annual Return in Form III by the 1st February of the succeeding year to the inspector or any other authority specified by the State Government in this behalf.

5. Rule 22 Notice in Form IX-A, containing the minimum wages fixed together with abstract of the act & rule and name and address of the inspector, shall be displayed in English and in the language understood by the employees at the main entrance of the establishment and on the notice boards of all sub-divisional and district offices.

Display the notice as required by the rule.

6. Rule 26A The registers and records have to be maintained for a period of 3 years from the date of last entry there in.

The registers and records have to be maintained for a period of 3 years from the date of last entry there in.



134

The Minimum Wages Act, 1948

Sl. No. Section / Clause Ref.




The Act is Applicable (all over India) on the establishments in which wages payable to any person is less than Rs. 1600.

2. Sec 5

Wages are to be paid with in Two days when the employment of a person is terminated.

Ensure wages are paid with in Two days from the date of termination

3. Sec 6 Payments can be made in cash or either by Cheque or by crediting in employee‘s bank account after obtaining written consent of the employees.

Payments can be made in cash or either by Cheque or by crediting in employee‘s bank account after obtaining written consent of the employees.

4. Sec 7 No deductions will be made from the wages paid to the employees under this Act except for:

(i) Fines (ii) Deductions For: (a) Absence from duty (b) House accommodation provided by

employer. (c) Deduction for damage. (d) Amenities and services supplied by the

employer. (e) Recovery of Loans and Advances of

whatever nature and interest there on. (f) For income tax payable by employee. (g) Deductions as per Court Order. (h) For subscription to P.F. and repayment of

advances from P.F. (i) For payment to an approved Co-

operative society or under insurance scheme of Post Office.

(j) For payment of insurance premium on

No deductions will be made from the wages paid to the employees under this Act except for as provided by the section



135

fidelity Guarantee Bonds and contribution to any noticed Insurance Scheme (i.e. E.S.I.)

other notified deductions based on written authorization of the employee ;

5. Sec 8 No fine shall be imposed on any employee except for the acts or omissions specified in the notice. Such notice shall be prepared with the previous approval of the State Govt. Th notice shall be exhibited on the premises in which the employment is carried on. No fine shall be imposed on any employee until he has been given an opportunity of being heard. The total amount of fine shall not exceed 3% of the total wages payable. No fine shall be imposed on an employee who is below the age of 15. A Register in prescribed format to be maintained for fines imposed and recovery thereof.

Follow the instructions with regards to fines as prescribed by the Act.

6. Sec 10(2)

All the deductions made on account of damages and loses u/s 7 shall be recorded in a register in such form as may be prescribed.

Maintain a register for the deductions made on account of damages and loses made u/s 7 in the prescribed from.

7. Sec 13A Register of payment of wages giving particulars of person employed, nature of the work performed by them, wages paid and the deductions made there from, the receipts given by them and other prescribed particulars All the Registers maintain under the Act should be preserved for Three Years from the last date of entry made there in.

Maintain the register as prescribed. Preserve the Registers maintain under this Act for a period of 3 years from the last date of entry made there in.

8. Sec 25 A notice containing Abstract of the Act with Rules in English & in the Local Language to be displayed at a prominent place in the factory premises.

A notice containing Abstract of the Act with Rules in English & in the Local Language to be displayed at a prominent place in the factory.



136

The Industrial Dispute Act, 1947

Sl. No.




1. 1(2) Applicability

This Act is applicable all over India. It applies to establishments where employees are drawing less than Rs.1600 p.m.

2 Sec 9A

Not to make any change in the service conditions of the Workmen without giving a notice as prescribed under Section.

Every office has to ensure that requirements mentioned in Column 2-10 are complied with.

3 Sec 3 Constitute works committee and ensure it functions properly

4 Sec 5 Assist the conciliation officer/board and the arbitrator in resolving any dispute

5 Sec 17A Implement all agreement, settlement and awards

6 Sec 25D

Maintain a muster-roll of the workmen employed in the establishment, even at the time when workmen have been laid off and ensure that the name of the workmen who present themselves for work at the appoint hours are entered therein

7 Sec 24 Not to declare, support or finance an illegal lock-out in the establishment

8 Sec 24 Not lay off or refresh any workmen or close down an undertaking, without obtaining prior approval of the government ,if so required

9 Sec 24 Pay lay off retrenchment and closure compensation, compensation to workmen for illegal lock-out, as prescribed under the provisions of the Act

10 Sec 24 Not indulge in unfair labour practices



137

The Equal Remuneration Act, 1976

Sl. No. Section / Clause Ref.



1. Sec – 1(2) A Applicability

This Act is applicable to all over India

2 Sec-8 Registers: The employer should maintain an up-to-date register in relation to the workers employed by him, in the prescribed Form. This register contains particulars such as category of workers, nature of work, number of men and women employed, rate of remuneration paid.

Maintain the registers as prescribed.

3 Sec-4 Pay equal wages to men and women employees of his establishment, for performing same work or work of similar nature. Reasonable classification based on intelligible criteria having nexus with the objective sought to be achieved is permissible ; Not to make any discrimination against women while doing recruitment of employees for same work or work of similar nature in respect of their promotion, training or transfer etc.



138

The Payment of Bonus Act, 1965

Sl. No.




1. Sec – 1(2) A Applicability

This Act is applicable all over India. Applicability is restricted to establishments where 20 or more persons are employed.

2. Register to be maintained

Rule – 4(a) Computation of Allocable Surplus

Register showing the computation of allocable surplus in Form A

Rule - 4(b) Set on & Set off the allocable surplus

Register showing set on and set off the allocable surplus in Form B.

Rule- 4(c) Amount of Bonus due to each employee, deduction there-from and amount disbursed

Register showing the details of the amount of bonus due to each employee, deduction therefrom and the amount disbursed in Form C.

3. Annual Return

The employer has to submit an annual return of bonus paid to employees during the year, in Form D, to the inspector within 30 days of the expiry of the time limit specified for payment of bonus

4. Other obligations

Sec -10 Payment of Bonus

The employer should calculate and pay the annual bonus required under the Act.

Sec- 27 Co-operate with Inspectors

The employer shall co-operate with the inspector, produce before him the register/records maintained and such other information as may be required by them.



139

Sec- 25 Auditing of Accounts

The employer shall get his accounts audited as per the directions of a Labour Court/Tribunal or of any such other authority issued u/s 25.



140

The Workmen Compensation Act, 1923

Sl. No. Section /

Clause Ref. Basic Requirement of the Section Requirements for

Implementing Complied with (Yes/No)

1. Sec 1(2) Rule-50

Applicability

This Act is applicable all over India.

2 Sec 16

The employer has to submit an Annual Return of accidents specifying the number of injuries for which compensation has been paid during the year, the amount of such compensation and other prescribed particulars u/s 16.

Submit an Annual Return of accidents specifying the number of injuries for which compensation has been paid during the year, the amount of such compensation and other prescribed particulars u/s 16.

3 Sec-3

The employer should pay compensation for an accident of an employee in accordance with the Act.

Pay the compensation in accordance with the Act.

4. Sec-10A & 10B

The employer shall: a) Submit a statement to the Commissioner

(within 30 days of receiving the notice) in the prescribed form, giving the circumstances attending the death of a workmen result of an accident and indicating whether he is liable to deposit any compensation for the same u/s 10A;

b) Submit accident report to the Commissioner in the prescribed form within 7 days of the accident, which result in death of a workman or serious bodily injury to a workman.

Maintain a notice in the prescribed form at a place where it is readily accessible to the workman

Submit the statement to the commissioner within 30 days or 7 days as the case may be as required by the section. Maintain a notice in the prescribed form at a place where it is readily accessible to the workman



141

Contract Labour (Regulation & Abolition) Act, 1970

Sl. No.






This Act Applies to:

Every establishment in which 20 or more workmen are employed or were employed on any

day of the preceding 12 months as Contract Labour.

2. Sec 7, & Rule 17 of Central

Rules.

Every establishment to which this Act applies shall apply for registration to the registering officer in Form I in triplicate. At present there is no uniform practice for registration under the aforesaid Act and circles

are registering under the State Government or the Central government depending on the

notices received from the labor department. A writ has been filed in the High Court at Delhi and Bangalore seeking clarification on the jurisdiction( whether State or Central) from the

court since notices have been received from the central and state authorities in many states

seeking registration under both departments. The outcome of the case will be intimated for compliance. At this point, it is necessary to ensure that every circle is registered under at

least one department )either state or central government department) pending issue of a

formal clarification or notification

Apply for the registration to the Registration Officer or Licensing Officer (Central or State Government) in Form I as applicable.

3. Sec 12, Sec 13 and Rule 21, Rule 25(ix)

No contractor shall be appointed unless he has obtained a license from the licensing authority to act as a contractor. The license has to be applied in Form IV. At the time of application by the contractor for license u/s 12, the contractor furnish the location of the establishment, nature of process and operation for which contract labour shall be employed. Principle Employer shall give a certificate in From V to the contractor to the effect that the applicant has been employed by him as a contractor and he shall be bound by all the provisions of the act and rules made there under. A copy of license shall prominently be displayed at every establishment where contract labour is employed.

While employing a contractor verify the license of the contractor. Furnish a Certificate in Form V to the contractor as required by the Section and Rule.

4. Sec 29 Every Principal Employer and every contractor shall maintain the Registers & Records containing the following:

(iv) Full particulars of the employee (v) The nature of work performed by Contract

Labour, (vi) The rate of wages paid to the contract labour.

Maintain the records and registers as required by the section. Exhibit the notice in the premises of the establishment as required.



142

Every Principal Employer and every Contractor shall exhibited in the premises of the establishment notices in the prescribed form containing particulars about: (iii) Hours of work. (iv) Nature of work

5. Rule 74

Every Principal Employer shall maintain a register of contracts in Form XII in respect of each registered establishment.

A register of Contractor is to be maintained in Form-XII.

6. Rule 73

The authorised representative of the Principal Employer shall certify at the end of the entries in Register of wages of the Contractor that the amount shown has been paid to the workmen concerned in his presence.

Certify at the end of the Register of Wages that the wages are paid in the presence of the authorised representative of the Principal Employer.

7. Sec. 16 & Rule-42

In every establishment where more than 100 Contract labour are employed and it is likely that work will continue for more than 6 months than an adequate canteen shall be provided by the contractor within sixty days from the date of commencement of the employment of Contract labour. If the Contractor fails to provide the canteen then principle employer shall provide the same.

If the contractor does not provide the canteen facility then provide for the same in the establishment.

8. Sec 17 & Rule 41.

In every establishment wherein contract labour is required to halt at night in connection with the work, the contractor shall provide for the rest rooms. If the said facility is not provided by the contractor then that should be provided by the Principal Employer

If the contractor does not provide the rest room facility then provide for the same in the establishment.

9. Rule 82(2)

Principal Employer has to send Annual Return in Form XXV in Duplicate on or before 15th February following the End of the Concerned year to Labour Commissioner.

Submit a return in Form XXV on or before 15th February following the end of the concerned year to the Labour Commissioner.

10. Rule 81(3)

Every Principal Employer shall with in 15 days of the commencement and completion of each contract work submit a return to the inspector intimating the actual date of commencement or completion of such contract work in Form-VIA.

Submit a return in form VIB within 15 days of commencement and completion of contract work to the inspector.



143

The Maternity Benefit Act, 1961

Sl. No.




1. 1(2) Applicability


2. Sec 5 A & 5B This Act is not applicable to an establishment in case ESI is applicable to it. However if any woman employee of company is not qualified to claim maternity benefit U/s. 50 of the ESI Act because her wages exceed Rs 6500/- p.m. [or the amount so specified U/s. 2(9) of the ESI Act] or for any other reason, then such woman employee is entitled to claim maternity benefit under this Act till she becomes qualified to claim maternity benefit under the ESI Act.

3. Sec 5(3) The maximum period for which a woman is entitled to the maternity leave is 12 weeks out of which not more than 6 weeks should precede the expected date of delivery

4. Sec 9 In case of miscarriage a woman shall be entitled to leave with wages at the rate of maternity benefit for a period of 6 weeks following the date of miscarriage.

5. Sec 9A In case of tubectomy operation woman shall be entitled to leave with wages at the rate of maternity benefit for a period of 2 weeks following the date of operation.

6. Sec 10 A woman suffering from illness arising out of pregnancy, delivery etc shall be entitled to leave with wages at the rate of maternity benefit for a maximum period of 1 month.

7. Sec 11 Every woman shall be allowed two breaks of a prescribed duration for nursing the child in the course of her daily work until the child attains the age of fifteen months.

8. Sec 8 Every Woman is entitled to a medical bonus of Rs. 250 if no prenatal confinement and postnatal care is provided for by the employer free of charge.

9. Sec 19

An abstract of the Act and Rules thereunder shall be exhibited at a conspicuous place in every establishment where women are employed

An abstract of the Act and Rules thereunder shall be exhibited at a conspicuous place in every establishment where women are employed



144

Air (Prevention And Control Of Pollution) Act, 1981

Sl. No.

Section / Clause

Ref.



1. Sec 2(a)

This Act is applicable where any Air Pollution occurs due to any air pollutant in the atmosphere from any plant used for any Industrial or Trade Purpose. ―Air Pollutant means any solid, liquid or Gaseous substance (including Noise) present in the atmosphere in such Concentration as may be or tend to be injurious to human beings or other living creatures or plants or property or environment.‖

2. Sec 21(1), Sec 19(1)

No person shall establish or operate any industrial plant in an Air Pollution Control Area without the previous approval of the State Board. The state Govt. after consultation with State Board may (i) Declare any area within the State as Air Pollution

Control Area. (ii) Alter any air pollution control area whether by way

of extension or reduction. The application for consent shall be accompanied by such fees as may be prescribed and shall be made in the prescribed form and shall contain the particulars of the industrial plant and such other particulars as may be prescribed.

Take the consent of the State Board in the prescribed form containing the particulars of the industrial plant if the industrial plant is to be established in the Air Pollution Control Area

3. Sec 21(5)

Every person to whom the consent is granted shall comply with the following conditions:-- (i) The control equipment shall be installed and

operated in the premises where the industry is carried on or propose to be carried on, of such specification as the State Board may approve.

(ii) The existing control equipment, if any, shall be altered or replaced in accordance with the directions of the Board.

(iii) The control equipment referred to in (I) &(ii) above shall be kept in good running condition.

(iv) Chimney, wherever necessary, shall be erected of such specification as the Board may approve.

Comply with the conditions as prescribed.

4. Sec 22

No person operating any industrial plant, in any air pollution control area shall discharge the emission of any air pollutant in excess of the standard laid down by the State Board.



145

5. Sec 23

Where in any area the emission of any air pollutant in the atmosphere, in excess of the prescribed standards laid by State Board, occurs or is apprehended to occur due to any accident or other unforeseen act or event, the person in charge of the place at which such discharge occurs or apprehended to occur shall intimate the fact of such occurrence to the State Board and such authorities or agencies as prescribed.

Where such an accident occurs, intimate to the State Board of the said accident.

6. Sec 24(2)

Any person operating any control equipment or any industrial plant, in an air pollution control area shall be bound to render all assistance to the inspector empowered by the State Board

Render all the assistance to the inspector empowered by the State Board.

Environment (Protection) Act, 1986

Sl. No.

Section / Clause

Ref.



1. Sec 2(b) This Act is applicable where any Environment Pollution occurs due to any Environmental Pollutant in the environment. ―Environmental Pollutant means any solid, liquid or Gaseous substance (including Noise) present in such Concentration as may be or tend to be injurious to environment.‖

2. Sec 7 No person operating any industrial plant shall discharge the emission of any environmental pollutant in excess of such standard as prescribed.

3. Sec 9 and Rule 12

Where the discharge of any environmental pollutant, in excess of the prescribed standards, occurs or is apprehended to occur due to any accident or other unforeseen act or event, the person in charge of the place at which such discharge occurs or apprehended to occur shall be bound to prevent the environmental pollution caused as a result of such discharge and shall intimate the fact of such occurrence to such authorities or agencies as prescribed. The prescribed authority shall be: 1. The officer in Charge of emergency or disaster relief

operation in a District or other region of a state or union Territory.

2. Central Board or state Board as the Case may be and its

regional officer having local Jurisdiction.

Where an accident occurs in respect of environmental pollutant intimation of the fact shall be given to the prescribed authority.

4. Sec 10(2) Any person carrying any industry, operation, or process of handling any hazardous substance shall be bound to render all assistance to the inspector empowered by the Central Govt.




146

5. Rule 14

Every person carrying on an industry, operation or process requiring consent under Sec 21(1) of the Air (prevention and Control of Pollution) Act, 1974 OR Sec 25 of the Water (Prevention and control of Pollution) Act, 1974 shall submit an environmental statement for the financial year ending on 31st Mar in From V to the concerned State Pollution Control Board on or before 30th Sept. each year.

Submit an environmental statement for the financial year ending on 31st Mar in From V to the concerned State Pollution Control Board on or before 30th Sept. each year.

Water (Prevention and Control of Pollution) Act, 1974

Sl.

No. Section / Clause

Ref.



1. Sec 24(1)(a)

No person shall knowingly cause any poisonous, noxious or polluting matter into any stream or well or sewer or on land determined in accordance with such standards as may be laid down by the state Board.

2. Sec 25(1)

No person shall without the previous consent of the State Board a) Establish any industry operation or process or any

treatment and disposal system or any extension or addition there to, which is likely to discharge sewage into a stream or well or sewer or on land or

b) Bring into use any new or altered outlet for discharge of sewage or

c) Begin to make any new discharge of sewage.

3. Sec.25(2) An application for the consent shall be made in such form, containing such particulars and shall be accompanied by such fees as may be prescribed.



147


Sl. No.

Section / Clause

Ref.



1. Sec 2(a)


2. Sec 21(1), Sec 19(1)

No person shall establish or operate any industrial plant in an Air Pollution Control Area without the previous approval of the State Board. The state Govt. after consultation with State Board may (iii) Declare any area within the State as Air Pollution

Control Area. (iv) Alter any air pollution control area whether by way



3. Sec 21(5)

Every person to whom the consent is granted shall comply with the following conditions:-- (v) The control equipment shall be installed and


(vi) The existing control equipment, if any, shall be altered or replaced in accordance with the directions of the Board.

(vii) The control equipment referred to in (I) &(ii) above shall be kept in good running condition.

(viii) Chimney, wherever necessary, shall be erected of such specification as the Board may approve.


4. Sec 22




148

5. Sec 23



6. Sec 24(2)




Sl. No.

Section / Clause

Ref.















149

5. Rule 14




Sl.


Ref.



1. Sec 24(1)(a)


2. Sec 25(1)

No person shall without the previous consent of the State Board d) Establish any industry operation or process or any


e) Bring into use any new or altered outlet for discharge of sewage or

f) Begin to make any new discharge of sewage.




150

PROFESSIONAL TAX

Sl. No.

Section / Clause

Ref.

Basic Requirement Of the Section Requirements For Implementing Complied with (Yes/No)

ANDHRA PRADESH

1. Sec 1

Persons whose salary or wages does not exceed rupees one thousand per month are exempt from the levy of profession tax.

2. Sec 2 As per definition of ‗Person‘, person does not include any person who earns wages on casual basis

3. Sec 5

Sec 10

Employer shall deduct the amount of tax under this act from the salary or wages of his employees at the time of payment of salary or wages. In case the employer doesn‘t deduct tax in such manner then employer has to pay such tax on behalf of the employees. The amount payable by the employer is to be deposited with the Deputy Commercial Tax Officer (DCTO) of the area where the organisation is registered under APGST, before the due date through following modes: A) Treasury Challan B) Bank draft C) Directly to PTO [Profession Tax Officer

(DCTO)] D) TWINS The payment shall be made: (a) Before 30th June, in respect of an assessee

who stands enrolled before the commencement of a year or is enrolled on or before the 31st May of a year.

(b) Within one month of the date of enrolment in respect of an assessee who is enrolled after the 31st May of a year.

Deduct the tax from the salary or wages at the rates prescribed in the First Schedule. (ANNEXED BELOW) The amount payable by the employer is to be deposited with the Deputy Commercial Tax Officer (DCTO) of the area where the organisation is registered under APGST, before the due date through following modes: A) Treasury Challan B) Bank draft C) Directly to PTO [Profession Tax Officer (DCTO)] D) TWINS



151

4. Sec 6(1)

Rule 3(1)

Every assessee liable to pay tax under section 5 shall obtain a certificate of registration from the assessing authority in the prescribed manner. An application for a certificate of registration shall be made in Form I. An applicant having places of work within the jurisdiction of different assessing authorities shall make an application for registration separately to each such authority in respect of his place of work, without the jurisdiction of that authority.

Make an application for Certificate of Registration in Form I and separate application to different assessing authorities for different places of business falling under their (Assessing Authority) jurisdiction.

5. Sec 7(1)

Every assessee registered under this Act, shall submit to the assessing authority a return in Form V, for such period or periods and by such dates as may be prescribed showing therein the salaries and wages paid by him and the amount of tax deducted by him in respect thereof.

File return in Form V for such period and by such dates as may be prescribed.

6. Rule 8

The holder of the certificate of registration shall display conspicuously at his place of work the certificate of registration or a copy thereof.

Display conspicuously the Certificate of Registration or a copy thereof at the place of work.

7. Rule 19

Rule 20

Every Collecting Agent shall maintain proper accounts of the tax and other amounts collected by him under the Act. He shall also maintain a register in Form XVII in which he shall enter the tax and other amounts as and when collected. Every employer liable to pay tax shall maintain a register in which there shall be entered the amount of salary and wages paid to each of the person in his employment and the said register shall contain a column in which there shall be shown the amount deducted from the salary and wages of the employee on account of the tax.

Maintain the registers as prescribed by the rules.

SCHEDULE FIRST

Sl. No. CLASS OF ASSESSEE RATE OF TAX Per month/ per annum

1.

Salary and wage earners: Such

persons whose monthly salaries or

NIL



152

wages

(i) Upto Rs. 1500 (ii) Range from Rs. 1501 – 2000 (iii) Range From Rs. 2001 – 3000 (iv) Range from Rs. 3001 – 4000 (v) Range from Rs. 4001 – 5000 (vi) Range from Rs. 5001 – 6000 (vii) Range from Rs. 6001 – 10000 (viii) Range from Rs. 10001 – 15000 (ix) Range from Rs. 15001 – 20000 (x) Range above Rs. 20000

Rs. 16/- p.m. Rs. 25/- p.m. Rs. 35/- p.m. Rs. 45/- p.m. Rs. 60/- p.m. Rs. 80/- p.m. Rs. 100/- p.m. Rs. 150/- p.m. Rs. 200/- p.m.

2.

Directors (other than those nominated by the Govt.) of the companies Registered under the Companies Act, 1956.

Rs. 2500/- p.a.

3. Employers of the establishment as defined under the Andhra Pradesh Shops and Establishment Act, 1988 (i) Where there are no employees (ii) Where not more than 5 employees

are employed (iii) Where more than 5 but not more

than 10 employees are employed. (iv) Where more than 10 but not more

than 20 employees are employed (v) Where more than 20 employees are

employed.

NIL Rs. 110/- p.a. Rs. 400/- p.a. Rs. 1000/- p.a. Rs. 2500/- p.a.

Sl. No.

Section / Clause

Ref.


MADHYA PRADESH



153

1. Sec 3 Incidence Of tax: Every person who carries on a trade either himself or by an agent or representative or who follows a profession or calling other than agriculture or who is in employment either wholly or in part in Madhya Pradesh and who falls under one or the other classes specified in the Schedule shall, on the basis specified in the Schedule in respect thereto be liable to pay tax at the rate mentioned against the class of such persons in column (3) of the said Schedule. Any person who is in employment in Madhya Pradesh shall be deemed to be in employment even though he may be absent therefrom on leave or otherwise.

2. Sec 4

Employer‘s Liability: The tax payable under this Act by any person earning a salary or wage shall be deducted monthly in the prescribed manner by his employer from the salary or wage payable to such person before such salary or wage is paid to him and such employer shall, irrespective of whether such deduction has been made or not, when the salary or wage is paid to such person, be liable to pay tax on behalf of all such persons. Where the person earning a wages or salaries:

(a) Is also covered by one or more entries in the schedule or

(b) Is simultaneously engaged in the employment of more than one employer,

Shall furnish to the employer a certificate in the prescribed form declaring that he shall obtain a certificate of enrollment and pay the tax himself, then the employer shall not deduct the tax from the salary or wages of such person

Deduct the amount of tax due from the wages or salaries of the employees before the payment of tax at the rates prescribed in the schedule ( Annexed below)



154

3. Sec 5 Computation of Income: For the purpose of computing the income of a person liable to pay tax, the following deductions shall be made from the gross income namely : (i) Salary or wage of other persons engaged by

him in the profession or calling (ii) Rent in respect of the building to house the

business as well as rent on account of machinery, furniture and other similar goods taken on lease or hire

(iii) all kinds of taxes; (iv) repairs and renewals of immovable property

let out on rent subject to a maximum of 6.25 per cent of the annual rental value;

(v) interest on borrowed capital; (vi) repairs of the building and rents of the

premises where the business is carried on (vii) electric charges in respect of business

premises where the business is carried on; (viii) such other deductions as may be prescribed.

Compute the income of the employees according to the section.

4. Sec 8 Rule 3

Rule 7

Registration: Every employer liable to pay tax under Section 4 shall obtain a certificate of registration from the Profession Tax Assessing Authority in such manner and form as may be prescribed within 30 days of becoming liable to pay tax. Application for registration shall be made in Form 1. Other persons carrying on specified professions covered by the schedule shall apply for registration in Form 3 to the assessing authority within 30 days of becoming liable to pay tax. The employer or the person holding a certificate of registration shall display conspicuously at his place of work the certificate of registration or a copy thereof issued by the Profession Tax Assessing Authority.

Apply for the registration within 30 days of becoming liable to pay tax in the time prescribed in the prescribed form.



155

5. Sec 9 Rule 11

Returns: Every employer registered under the Act shall furnish return in Form 7 for each quarter on or before the 15th of the month following the quarter to which such returns relates showing therein the salaries and wages paid by him during such quarter and the amount of tax deducted by him from the said salaries and wages. Provided that where an employer pays to his employee, salary or wages in respect of a month falling in any quarter on any date after the expiry of such quarter, then such payment and the tax deducted in respect thereof may be accounted for in the return for the quarter during which such payment has been made and tax deducted. Employer may make an application for filing annual return instead of quarterly return in Form 8 to the Profession Tax Commissioner

File the returns within the time prescribed.

6. Rule 13 The drawing and disbursing officers shall furnish to the Profession Tax Assessing Authority, having jurisdiction over their places of work, not later than 30th April, a certificate that the tax payable in respect of the employees for whom they drew the pay bills during the year immediately preceding has been deducted in accordance with the provisions of the Schedule appended to the Act.

File the certificate to the assessing authority on yearly basis within the time prescribed.

7. Sec 11 Assessment of tax: The amount of tax due from an employer or person under this Act shall be assessed separately for each year.

8. Sec 19 Rule 14

Books and Registers: Every employer responsible to deduct and pay tax shall maintain a register in which the amount of salary and wages paid to each of the persons in his employment and the amount deducted from the salary and wages of the employee on account of tax shall be entered.

Maintain the books and registers as prescribed.



156

9. Sec 12 Rule 15

Payment of Tax: The amount of tax deducted by an employer from the salary or wage of his employees shall be paid by treasury challan in From 10 within ten days of the end of the month for which the deduction has been made. The amount of tax due from persons other than employers shall be paid for every year : (a) In respect of a person registered before the

commencement of a year or registered on or before 31st August of a year – Before 30th September of the year.

(b) In respect of a person who is registered after 31

st

August of a year -- Within 30 days of the date of

registration.

Pay the amount of tax within the time prescribed.

Schedule of Rates of Tax on Professions, Trades, Callings and Employments


1. Persons in employment whose annual salary or wage - (i) Does not exceed Rs. 40,000 (ii) Exceeds Rs. 40,000 but does not

exceed Rs. 50,000. (iii) Exceeds Rs. 50,000 but does not

exceed Rs. 60,000 (iv) Exceeds Rs. 60,000 but does not

exceed Rs. 80,000 (v) Exceeds Rs. 80,000 but does not

exceed Rs. 1,00,000 (vi) Exceeds Rs. 1,00,000 but does not

exceed Rs. 1,50,000 (vii) Exceeds Rs. 1,50,000 Rs. 2500

NIL Rs. 360( Rs. 30 per month) Rs 720( Rs 60 per month) Rs 1080( Rs 90 per month) Rs 1800( Rs 150 per month) Rs. 2100( Rs 175 per month) Rs 2500.( Rs 208 per month)

2.

Wholetime Directors of the companies Registered under the Companies Act, 1956.

Rs. 2500/- p.a.

3. Employers of the Madhya Pradesh Shops and Establishment Act, 1958 (i) Where there are not more than 5

employees (ii) Where more than 5 but not more

than 10 employees are employed.

NIL Rs. 1000/- p.a.



157

(iii) Where more than 10 but not more than 15 employees are employed

(iv) Where more than 15 employees are employed.

Rs. 1500/- p.a. Rs. 2500/- p.a.

Sl. No.

Section / Clause

Ref.


RAJASTHAN

1. Sec 3

Levy Of Tax: There shall be levied and collected

a tax on professions, trades, callings and

employment at such rates not exceeding Rs 2500

per annum per individual as may be notified by

the State Govt. in the Official Gazette.



158

2. Sec 5




Shall furnish to the employer a certificate in the prescribed form declaring that he shall obtain a certificate of enrollment and pay the tax himself, then the employer shall not deduct the tax from the salary or wages of such person

Deduct the amount of tax due form the salary or wages of the employees each month at such rates as may be prescribed.

3. Sec 6 Rule 3

Rule 4

Rule 6

Registration: Every employer liable to pay tax shall obtain a certificate of registration from the Assessing Authority in such manner and form as may be prescribed within 30 days of becoming liable to pay tax. Application for registration shall be made in Form PT-1. Other persons carrying on specified professions covered by the schedule shall apply for registration in Form PT-3 to the assessing authority within 30 days of becoming liable to pay tax. The employer or the person holding a certificate of registration shall display conspicuously at his place of work the certificate of registration or a copy thereof issued by the Profession Tax Assessing Authority.

Apply for the registration to the prescribed authority and in the prescribed form within the time prescribed. Display conspicuously at his place of work the certificate of registration or a copy thereof issued by the Profession Tax Assessing Authority.

4. Sec 7 Rule 10

Payment of Tax and Returns: Every employer shall pay the amount of tax within 15 days of the

disbursements of wages or salaries in Form PT-12.

The returns shall be filed in Form PT-7 along with proof of payment of tax in Form PT-12. (a) Where the Tax liability of the employer is less

than Rs 10,000, he shall furnish the returns annually on or before 31st of March every year covering the period from March To February for each year.

(b) Where the tax liability is more than Rs 10, 000, he shall furnish the quarterly returns as per Annexure ‗A‘ below.

Pay the amount of tax within the time prescribed.



159

Annexure „A‟

Quarter Ending On Months in respect of which Salary/ Wages are to be paid and the amount of tax deducted

Due date of filing of Returns

30th June March To May 30th June

30th September June to August 30th September

31st December September to November 31st December

31st March December to February 31st March

5. Rule 18

Rule 19

The drawing and disbursing officers shall furnish to the Profession Tax Assessing Authority, having jurisdiction over their places of work, not later than 30th April, a certificate that the tax payable in respect of the employees for whom they drew the pay bills during the year immediately preceding has been deducted in accordance with the provisions of the Schedule appended to the Act. Every employer shall maintain and keep a register containing the amount of salary or wages paid and the amount of tax deducted and paid on account of each employee.

Furnish the certificate as prescribed to the assessing authority by 30th April each year certifying that the tax due has been deducted form the employees and has been paid to the credit of the Govt. in due time.

6. Rule 20 Payment of tax By persons other than employer: A person other than employer shall make payment of the tax within the period specified in the notification issued in this behalf by the Govt. in Form PT-12 which shall consists of 5 parts. Part I, II,III shall be retained by the person receiving the payment and Part IV and V shall be returned to the person depositing the tax. The taxpayer shall retain Part V with him and Part IV shall be submitted to the prescribed authority along with the return.

Pay the amount of tax due within the time prescribed.

Sl. No.

Section / Clause

Ref.


WEST BENGAL

1. Sec 3

Levy Of Tax: There shall be levied and collected

a tax on professions, trade, callings and

employment, in accordance with the provisions

of the Act.

Every person falling under classes mentioned in the schedule shall be liable to pay tax at the rate mentioned in such schedule (Annexed Below)



160

2. Sec 4




Shall furnish to the employer a certificate in the

prescribed form declaring that he shall obtain a

certificate of enrollment and pay the tax himself,

then the employer shall not deduct the tax from

the salary or wages of such person

Deduct the amount of tax due form the salary or wages of the employees each month at such rates as may be prescribed.

3. Sec 5 Rule 3

Registration: Every employer shall apply for registration to the prescribed authority in Form I within 90 days from the date of first becoming liable to pay tax. Every person who is required to obtain certificate of enrolment shall apply if Form II within 90 days of first becoming liable to pay tax.

Apply for the registration in prescribed form within time specified.

4. Sec 6 Rule 12

Return and Payment of Tax: Every employer shall furnish return quarterly in Form III within 30 days for the end of each quarter and such return shall be accompanied by a receipted challan showing payment of tax payable. The tax shall be paid as follows: 1. Where the tax payable in a year does not

exceeds Rs. 3,000 – Tax shall be paid quarterly before the date of filing of return.

2. Where the tax payable in a year exceeds Rs. 3,000 – Shall be paid monthly as follows:

(a) For the first two months of the quarter – within 21 days of the end of each months.

(b) For the third month – Before filing the return.

File the returns and pay the tax within time



161

5. Sec 8 Payment of tax by persons who has obtained certificate of enrolment: Tax shall be paid as follows: (c) In respect of a person registered before the

commencement of a year or registered on or before 31st August of a year – Before 30th September of the year.

(d) In respect of a person who is registered after 31

st

August of a year -- Within 30 days of the date of

registration.

6.

Sec 15 Rule 12A

Books and Accounts: Every employer responsible to deduct and pay tax shall maintain a register in Form XIV in which the amount of salary and wages paid to each of the persons in his employment and the amount deducted from the salary and wages of the employee on account of tax shall be entered.

Maintain the books and accounts as prescribed.

Schedule of Rates of Tax on Professions, Trades, Callings and Employments


1. Persons in employment whose monthly salary or wages are: (a) Rs. 1500 or less (b) Rs. 1500- 2000 (c) Rs.2001-3000 (d) Rs. 3001-5000 (e) Rs. 5001-6000 (f) Rs. 6001-7000 (g) Rs. 7001-8000 (h) Rs. 8001- 9000 (i) Rs. 9001-15000 (j) Rs. 15001-25000 (k) Rs. 25001-40000 (l) exceeding Rs 40001

NIL 18 p.m. 25 p.m. 30 p.m. 40 p.m. 45 p.m. 50 p.m. 90 p.m. 110 p.m. 130 p.m. 150 p.m. 200 p.m.

2. Dealers liable to pay tax under West Bengal Sales Tax Act or Central sales Tax Act whose turnover of sales is:



162

(1) Less than Rs 2 lakhs (2) Exceeding Rs 2 lakh but not exceeding

Rs 7.5 lakh. (3) Exceeding Rs 7.5 lakh but not exceeding

Rs 25 lakhs. (4) Above Rs 25 lakh but not exceeding Rs

50 lakh. (5) Above Rs 50 lakhs but not exceeding Rs

2 crore. (6) Above Rs 2 crore.

Rs 150 p.a. Rs. 300 p.a. Rs. 600 p.a. Rs 1200 p.a. Rs. 2000 p.a. Rs. 2500 p.a.

3.

Companies registered under Companies Act and carrying on any Profession Trade or calling

Rs. 2500/- p.a.

Sl. No.

Section / Clause

Ref.


GUJRAT

1 Sec 2 (d)

Person does not include any person who earns

wages on casual basis.



163

2 Sec 2 (g)

Salary or Wage includes any pay or wages,

dearness allowance and other remunerations

received by any person on regular basis whether

payable in cash or kind and also includes

perquisites and profits in lieu of salary, but does

not include any form of bonus or gratuity;

3 Sec 3 (2) Levy & charge of Tax

Every person engaged in any profession, trade calling or Employment and falling under one or the other classes mentioned in column 2 of Schedule I (Schedule I is given below) shall be liable to pay to the state Govt. the tax at the rate mentioned against the class of such person in column 3 of the said schedule.

4 Sec 3 (3)

Where a person falls under more than one entry

in schedule I, he shall be liable to pay to the

State Govt. the tax under such one of those

entries where the rate of tax specified is the

highest.

Pay tax at the highest rate in case chargeability is created under more than one entry in Schedule I.

5 Sec 4 Employer’s Liability to deduct & pay tax on

behalf of employees: The tax payable under this act by any person earning a salary or wage shall

be deducted by his employer from the salary or wage payable to such person,

before such salary or wage is paid to him, and such employer shall be liable

to pay tax on behalf of all such persons irrespective of the fact whether such

deduction has been made or not

Provided that where any person earning a salary or wage, who is covered by entry 1 to Schedule I - (b) is simultaneously engaged in employments of more than one employer, and such person furnishes to his employer or employers a declaration in the prescribed form to the effect that he has obtained a certificate of enrolment and that he shall pay the tax himself, no deduction or payment of tax shall be made by the employer or employers and such employer or employers, as the case may be, shall not be liable to pay the tax on behalf of such person.

Deduct tax from the salary or wage payable to the

employees.

Don‘t deduct tax from the salary or wages of the employees who have obtained certificate of enrolment and furnish declaration in For m-A.



164

5 Sec 5 (1)

Rule 3 (1)

Registration and Enrolment:

Every employer not being an officer of Govt. liable to pay tax u/s 4 shall obtain a certificate of registration from the prescribed authority in the prescribed manner. An application for obtaining a certificate of registration shall be made in For m I within 60 days from the date of publication of these rule in the official gazette, and in the case of an employer not engaged in any profession, trade, calling or employment on the date of the commencement of the Act, within 60 days from the date of commencement of his profession, trade, calling or employment and in case of a person becoming liable to pay tax at any time after the commencement of the act, within 60 days from the date of commencement of his becoming liable to pay tax An applicant having place of work within the jurisdictions of different prescribed authorities shall make an application for registration separately to each authority in respect of his place of work within the jurisdiction of that authority.

Obtain Certificate of Registration within the prescribed period and in the prescribed manner.

Different application to different prescribed authorities for different places of businesses.



165

6 Sec 5 (2)

Rule 4 (1)

Rule 4 (2)

Every person liable to pay tax under this act

(other than a person earning salary or wages, in

respect of whom the tax is payable by his

employer), shall obtain a certificate of enrolment

from the prescribed authority in the prescribed

manner.

An application for obtaining a certificate of enrolment shall be made in For m 3 within 60 days from the date of publication of these rule in the official gazette, and in the case of a person not engaged in any profession, trade, calling or employment on the date of the commencement of the Act, within 60days from the date of commencement of his profession, trade, calling or employment and in case of a person becoming liable to pay tax at any time after the commencement of the act, within 60 days from the date of commencement of his becoming liable to pay tax. An applicant having more than one place of work in the state of Gujrat, whether within the jurisdiction of the prescribed authority or outside such jurisdiction, shall be granted only one certificate of enrolment.

Where an applicant has more than one place of work within the state of Gujrat, he

shall make a single application in respect of all such palaces, name in such application one of such places as the principal place of work for the purposes of

these rules and submit such application to the prescribed authority in whose

jurisdiction the said principal place of work is situated.

Obtain Certificate of Enrolment within the prescribed period and prescribed manner. Make single application for Certificate of Enrolment to the prescribed authority of the principal place of business in case the applicant has more than one place of work within the state of Gujrat.

7 Sec 5 (3)

The prescribed authority shall mention in every

certificate of enrolment the amount of tax

payable by the holder according to Schedule I,

and the date by which it shall be paid, and such

certificate shall serve as a notice of demand.

Pay such amount of tax and within such period as prescribed in the Certificate of Enrolment.



166

8 Sec 6

Returns: (1) Every employer registered under this act shall furnish to the

prescribed authority a return in such form, for such periods and by

such dates as may be prescribed, showing therein the salaries and

wages paid by him and the amount of tax deducted by him in respect

thereof: provided that the commissioner may, subject to such terms

and conditions as may be prescribed, exempt any such employer from

furnishing such return or permit any such employer-

(i) to furnish them such different periods, or

(ii) to furnish a consolidated return relating to all or any of the places of work of the employer in the state where such employer carries on his employment, for the said period or for such different periods,

As he may direct to the prescribed authority. (2) Every such return shall accompany by a

proof of payment of tax.

Every employer shall furnish a return in Form 5 along with proof of payment to the prescribed authority within

15 days of the expiry of a previous month.

Rule 11 (2) Rule 11 (4)

The commissioner may on an application being made by an employer for

permission to furnish annual return, permit him to furnish returns subject to following conditions:

a) That the return shall be in Form 5-A b) That the employer shall pay into the government

treasury with in 15 days of the expiry of each previous month an amount equivalent to the tax payable at the rates prescribed in Schedule I.

c) The return shall be furnished before the last day of the month following the year to which the return relates.

On an application, the commissioner may by an order permit an employer having more than one place of work and registered with more than one prescribed authority, to furnish a consolidated return with any one of the prescribed authorities.

Permission to file annual return can be got subject to rule 11 (2) Permission to file Consolidated return for different places of work can be availed subject to rule 11 (4)

9 Sec 16 If the commissioner is satisfied that the books of accounts and other documents

maintained by an employer in the normal course of his business are not adequate for verification of the returns filed by the employer under this act, it shall be

lawful for the commissioner to direct the employer to maintain the books of

accounts or other documents in such manner as he may in writing direct and thereupon the employer shall maintain such books of accounts or other documents

accordingly.

Maintain books of accounts and other documents in such a manner that the information in the return can be verified.



167

SCHEDULE I (Rates of Tax on Professions, Trades. Callings and employments)

S.No. Classes of Assesses Tax

1 Salary or wage earners whose monthly salaries or wages are i) Less than Rs. 3000 ii) Rs. 3000 or more but less than Rs. 6000 iii) Rs. 6000 or more but less than Rs. 9000 iv) Rs. 9000 or more but less than Rs. 12000 v) Rs. 12000 or more

Nil Rs.20 per month Rs.40 per month Rs.60 per month Rs.80 per month

3 (v) Companies registered under the Companies Act, 1956 and engaged in any profession, trade or calling. a) Private limited companies b) public limited companies

Rs.500 every year Rs.1000 every year

6 Employers of establishments as defined in the Bombay Shops and establishments Act, 1948(not being dealers covered by entry 7), whereon an average employees employed in the establishment during a year are more than 5 per day, if the establishment is situated in a) a city b) a municipal borough, the population of which as ascertained at the last

preceding census is more than 100000 and in the area adjoining such municipal borough to the extent of 3 km from its limits

c) a specified area

Rs.250 every year Rs.200 every year Rs.150 every year

7 Dealers as defined in the Gujrat Sales Tax Act, 1969, whose annual gross turnover of all sales or of all purchases is- a) not more than 2.5 lacs b) >2.5 lacs but not more than Rs. 5 lacs c) > 5 lacs but not more than 10 lacs d) > 10 lacs

Nil Rs.250 every year Rs.500 every year Rs.1000 every year



168

Sl. No.

Section / Clause

Ref.


KARNATAKA

1 Sec 2(h)

Person does not include any person who earns

wages on casual basis.



169

2 Sec 3 (3)

Levy & Charge of Tax:

Every person who exercises any profession or

calling or is engaged in any trade or holds any

appointment, public or private, or is employed in

any manner in the state, specified in the second

column of the schedule(relevant part of the

schedule is reproduced below), shall be liable to

pay to the state govt. the tax at the rate

mentioned in the corresponding entry in the

third column of the said schedule:

Note:

i) No tax shall be payable by the persons

who have attained the age of 65 years. ii) No tax shall be payable by a person in respect

of any year if the period during which he exercises such profession or calling or is engaged in the trade or holds the appointment or is employed does not exceed 120 days in that year.

Professional tax shall be paid at the rate prescribed in the schedule subject to notes given.

3 Sec 4 Employer’s liability to deduct & pay tax:-

Employer shall deduct tax under the act from the salary or wages payable to his employees before such salaries or wages are paid to them and such employer whether any such deduction is made or not will be liable to pay tax on behalf of all such persons.

Deduct the tax from the wages & salaries of the employees before making payment.



170

4 Sec 5

Registration & enrolment:

(1) Every employer liable to pay tax u/s 4 shall obtain a certificate of registration from the assessing authority in the prescribed manner.

Rule 3(1): An employer having places of work within the jurisdiction of different assessing authorities shall make an application for registration separately to each such authority in respect of his place of work within the jurisdiction of that authority. (2) Every person liable to pay tax under this Act

(other than a person earning salary or wages, in respect of whom the tax is payable by the employer), shall obtain a certificate of enrolment from the assessing authority in the prescribed manner.

Rule 4(2): Where a person has more than one place of work within the State of Karnataka, he shall make a single application in respect of all such places, name in such application one of such place as the principal place of work for the purposes of these rules and submit such application to the assessing authority in whose jurisdiction the said principal place of work is situated. (3) Every employer or person required to obtain a

certificate of registration or enrolment shall, within 90 days from the date of commencement of this Act and in the case of an employer not engaged in any profession, trade, calling or employment on the date of the commencement of the Act, within 30days from the date of commencement of his profession, trade, calling or employment or in respect of a person referred to in sub-section (2) within 30 days of his becoming liable to pay tax at a rate higher or lower than the one mentioned in his certificate of enrolment, apply for a certificate of registration or enrolment, or revised certificate of enrolment, as the case may be, to the assessing authority in the prescribed form.

Apply for certificate of Registration and certificate of enrolment in form 1 & Form 2 respectively within the prescribed period.

5 Sec 6 Every employer registered under this Act shall

within 60 days of the expiry of the year, furnish to

the assessing authority a return (along with proof

of payment of tax) in the prescribed Form.

Submit a return in Form 5 within 60 days from the expiry of the year.



171

6 Sec 6-A

(1) Every employer registered under this Act,

shall furnish to the assessing authority

within 20 days of the expiry of a month, a

statement in the prescribed form. Provided that where the amount of tax deducted in a month is not more than Rs.5000, the registered employer shall furnish such statement within 20 days of expiry of a quarter. (2) The statement submitted under sub-section (1) shall be accompanied by a treasury challan in Form 9-A in proof of payment of the full amount of tax due according to the statement.

Submit a monthly statement in duplicate in form 5-A along with proof of payment to the assessing authority.

7 Sec 10

Payment of Tax by enrolled person:

(1) The tax payable under this Act by enrolled persons shall be paid into the treasury by challan in Form 9.

(2) The amount of tax due from enrolled persons for each year as specified in their enrolment certificates shall be paid,- (a) In respect of a person who stands enrolled

before the commencement of a year: Before the 30th April of that year.

(b) In respect of a person who is enrolled after the commencement of a year: Within 1 month from the date of enrolment.

Make payment of tax as specified in enrolment certificate within the period prescribed.

8 Sec 19

Accounts: (1) If the assessing officer is satisfied that the books of accounts and other

documents maintained by an employer in the normal course of his

business are not adequate for verification of the returns filed by the employer under the Act, it shall be Lawful for him to direct the employer

to maintain the books of accounts and other documents in the manner as

it may in writing direct and thereupon the employer shall within the time specified therein maintain such books of accounts or other documents

accordingly.

(1-A) The books of accounts and other documents maintained under sub-section shall be preserved for a period of 5 years from the close of the year to which they relate.

Maintain proper books of accounts & other documents so that return filed can be verified and maintain them for 5 years.

9 Rule 8 Exhibition of Certificate:

The holder of the certificate of registration or a certificate of enrolment, as the case may be, shall display conspicuously at his place of work the certificate of registration or certificate of enrolment or a copy thereof

Display conspicuously he certificate of registration or certificate of enrolment or a copy thereof at the place of work.



172

11 Rule 18

Every employer liable to pay tax shall maintain a

register in which shall be entered the amount of

salary and wages paid to each of the persons in

his employment and the said register shall

contain a column in which shall be shown the

amount deducted from the salary and wages of

the employee on account of the tax.

Maintain a register showing details as prescribed.

SCHEDULE Rates of Tax on Professions, Trades, Callings and Employments

S. No. Class of Persons Rate of Tax

1 Salary or Wage earners whose salary or wage or both, as the case may be, for a month is,- a) not less than Rs.3000 but less than Rs.5000 b) not less than Rs.5000 but less than Rs.8000 c) not less than Rs.8000 but less than Rs.10000 d) not less than Rs.10000 but less than Rs.15000 e) Rs.15000 and above

Rs.30 per month Rs.60 per month Rs.100 per month Rs.150 per month Rs.200 per month

13 Dealers registered or liable to be registered under the Karnataka Sales Tax Act, 1957 or the Karnataka Value Added Tax Act, 2003 whose total turnover in any year is,- a) upto Rs.2 lacs b) not less than Rs.2 lacs but less than Rs.10 lacs c) not less than Rs.10 lacs but less than Rs.25 lacs d) Rs.25 lacs or more

Nil Rs.1000 per annum Rs.1500 per annum Rs.2500 per annum

15 Employers of establishments defined under the Karnataka Shops & Commercial Establishments Act, 1961,- i) where there are no employees ii) where not more than 5 employees are employed iii) where more than 5, but not more than 10

employees are employed iv) where more than 10 employees are employed

Nil Rs.1000 per annum Rs.1500 per annum Rs.2500 per annum

25 Companies registered under the companies Act, 1956 and engaged in any profession, trade or calling

Rs.2500 per annum



173

52 Persons operating wireless services including pager service

Rs.2500 per annum

53 a) Persons operating mobile phone service b) Persons providing internet service running internet

cafes, information kiosks c) Persons operating e-commerce business

Rs.2500 per annum Rs.2500 per annum Rs.2500 per annum

61 Persons running IT call centres Rs.2500 per annum


Sl. No.

Section / Clause

Ref.



1. Sec 2(a)


2. Sec 21(1), Sec 19(1)

No person shall establish or operate any industrial plant in an Air Pollution Control Area without the previous approval of the State Board. The state Govt. after consultation with State Board may (v) Declare any area within the State as Air Pollution

Control Area. (vi) Alter any air pollution control area whether by way





174

3. Sec 21(5)

Every person to whom the consent is granted shall comply with the following conditions:-- (ix) The control equipment shall be installed and


(x) The existing control equipment, if any, shall be altered or replaced in accordance with the directions of the Board.

(xi) The control equipment referred to in (I) &(ii) above shall be kept in good running condition.

(xii) Chimney, wherever necessary, shall be erected of such specification as the Board may approve.


4. Sec 22


5. Sec 23



6. Sec 24(2)




Sl. No.

Section / Clause

Ref.







175









5. Rule 14




Sl.


Ref.



1. Sec 24(1)(a)




176

2. Sec 25(1)

No person shall without the previous consent of the State Board g) Establish any industry operation or process or any


h) Bring into use any new or altered outlet for discharge of sewage or

i) Begin to make any new discharge of sewage.




177

India Law Summary

1.Child labour:


















child labor.”

Young Workers




(d) a certificate of fitness granted with reference to him under section 69 is in the custody of the


(e) such child or adolescent carries while he is at work a token giving a reference to such

certificate..

(f) Document of Proof of Age








178



establishment.

The employer or the officer authorized by him in this behalf may before the date of birth of a workman is

entered in his service card, require him to supply:

(v) His matriculation or school leaving certificates granted by the Board of Secondary Education or


(vi) A certified copy of his date of birth as recorded in the registers of a municipality, local authority


(vii) In the absence of either of the aforesaid two categories of certificates, the employer or the officer




(viii) Where it is not applicable to obtain a certificate from a Government Medical Officer, an affidavit




Please do not quote this law for non- compliance issues related to proof of age (This law is only applicable

to union territories and central government undertakings like coal mines). You can quote the standing

order rules of the respective state.

For Example:

In accordance with Industrial employment (Standing Orders), Punjab Rules1978, Rules 4 A( iii)

Every workman shall indicate his exact date of the birth to the employer or the officer authorized by him in

this behalf, at the time of entering the service of establishment. The employer or the officer authorized by him

in this behalf may before the date of birth of a workman is entered in his service card, require him to supply:









(iv) Where it is not practicable to obtain a certificate from a Government Medical Officer, an affidavit




2.Forced Labour:-



179

The Constitution of India Part-III, Article 23

Prohibition of traffic in human beings and forced labour

(1) Traffic in human beings and beggar and other similar forms of forced labour are prohibited and any

contravention of this provision shall be an offence punishable in accordance with law. The Bonded labour system (Abolition) Act, 1976

In accordance with section 4 of the Act

(3) On the commencement of the Act, the bonded labour system shall stand abolished and every bonded

labourer shall on such commencement, stand freed and discharged from any obligation to render any

bonded labour.

(4) After the commencement of this Act, no person shall-

(a) Make any advance under, or in pursuance of, the bonded labour system, or

(b) Compel any person to render any bonded labour or other form of forced labour.

3.Discrimination: -


Equality before law The State shall not deny to any person equality before the law or the equal protection of the laws within the

territory of India.


Prohibition of discrimination on grounds of religion, race, caste, sex or place of birth


Abolition of Untouchability "Untouchability" is abolished and its practice in any form is forbidden. The enforcement of any disability

arising out of "Untouchability" shall be an offence punishable in accordance with law.

The Equal Remuneration Act, 1976 Section 4


similar nature

4. Freedom of Association: -

The Constitution of India Article 19(1)(c)

Freedom to form Union and Associations

The Trade Union Act, 1926 Section 17 & 18

Any seven or more members may by subscribing their names to the rules of the Trade Union and by otherwise

complying with the provisions of this Act can get itself registered under the Trade Union Act.



180

Section 17 : No office bearer or member of a registered trade Union shall be liable to punishment for

Criminal Conspiracy under Indian Penal Code,1860 in respect of any agreement between the members for

the purpose of furthering any such object of the trade union.

Section 18: No suit or other legal proceeding shall be maintainable in any civil court against any registered

union or any office bearer or member thereof in respect of any act done in contemplation or furtherance of a

trade dispute to which a member of a trade union is a party.

The Industrial dispute Act 1947, Section 24 T & U ,

No employer or workman or a trade union, whether registered or not, shall commit any act considered as

unfair labour practice. As per the prevailing Act of 1926, unfair labour practice includes:

iv) Threatening workman with discharge or dismissal if they join trade union

v) Threatening workmen of closure or lockout if a trade union is organized

vi) Granting wage increase during certain period to undermine trade union activities

5 Working Hours: -

The Factories Act, 1948


more than forty eight hours in a week.


more than nine hours in any day.

Chapter VI, SECTION 55(1) [The period of work] of adult workers in a factory each day shall be

so fixed that no period shall exceed 5 hours and that no worker shall work for more than 5 hours

before he has had an interval of rest of at half an hour.

Chapter VI, SECTION 56 The period of work of an adult worker in a factory shall be so arranged

that inclusive of his interval for rest shall not spread over more than 10.5 hours in any day.


No employee shall be required or allowed to work in any shop or commercial establishment for

more than nine hours in any day and forty eight hours in any week.

Prohibition on women workers

Factories Act, 1948,Chapter VI, SECTION 66(1) (b)



181

No woman shall be required or allowed to work in any factory except between the hours of 6a.m. and

7p.m.

Provision regarding exclusion of women from employment during night shifts held discriminatory and

unconstitutional as violative of Article 14, 15(1) and 19(1)(g) of the constitution. Vasanta vs. Union of India,

2001(2) LLJ 843 Mad.


No woman, not withstanding that such woman is a member of the family of the employer, shall be

required or allowed to work, whether as an employee or otherwise, in any establishment before 6.00

a.m.

No such woman shall be required or allowed to work in any establishment after 8.30 p.m.

Notice of Normal work Hours Chapter VI, Section 61(1)

There shall be displayed and correctly maintained in every factory in accordance with the provisions

of subsection 108, a notice of periods of work for adults, showing clearly for every day the periods

during which adult worker may be required to work.

Overtime Hours Limit

The Factories Act, 1948 Chapter VI, SECTION 64 (4)

i. the total number of hours of work in any day shall not exceed ten

ii. the spread over ,inclusive of intervals for rest shall not exceed twelve hours in any one day.

iii. the total number of hours of work in a week including overtime shall not exceed sixty.

iv. the total number of hours of overtime shall not exceed fifty for any one quarter

Weekly rest Day

The Factories Act, 1948;Chapter VI, SECTION 52 (1)

No adult worker shall be required or allowed to work in a factory on the first day of the week.[The worker

must get one day rest in a week]

6.Compensation and Benefits: -

The Minimum Wages Act, 1948, Section 12 (1)

Where in respect of any scheduled employment a notification under section 5 is in force, the employer shall

pay to every employee engaged in a scheduled employment under him, Wages at a rate not less than the

minimum rates of wages fixed by such notification for that class of employees in that employment without any

deductions except as may be authorized with such time and subject to such condition as may be prescribed.



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The Minimum Wages Act, 1948,Section 17 Where an employee employed on piecework for which minimum time rate and not minimum piece rate has

been fixed under this Act, the employer shall pay to such employee wages at not less than the minimum time

rate.

Constitution of Minimum Wages, The Minimum Wages Act, 1948,Section 2(h)

The following items shall not be regarded as part of the minimum wages:

a) The value of any house accommodation, supply of light, water, medical attendance.

b) the value of any amenity or any service excluded by general or special order of the

appropriate government.

c) any contribution paid by the employer to any pension fund or provident fund or under the

scheme of social insurance.

d) any travelling allowance or the value of any travelling concession.

e) Any sum paid to the person employed to defray special expense entailed on him by the nature

of his employment.

f) Any gratuity payable on discharge

Maintenance of records

The Minimum Wages Act, 1948,Section 18(1)

Every employer shall maintain such registers and records giving such particulars of employees employed by

him, the work performed by them, the wages paid to them, the receipts given by them, and in such particulars

and in such forms as may be prescribed.

Wage Records

The Payment of Wages Act, 1936[Section 13-A (2)]

Section 13-A(2) Every register and record required to be maintained under this section shall ,for the purpose

of this Act be preserved for a period of three years after the date of the last entry made therein.

Wage Slips

The Minimum Wages (Central) Rules, 1950

Section 26(2) A Wage Slips shall be issued by every employer to every person employed by him at least a day

prior to the disbursement of wages.

Section 26(3) every employer shall get the signature or thumb impression of every person employed on the

register of wage register of wages and slips.

Display of Minimum Wages , Minimum Wages (Central) Rules, 1950 Section 22



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Notices [Form IX- A] containing the minimum rates of wages fixed together with [abstract of] the

Act, Rules made there under and the name and the name and address of the Inspector shall be

displayed in English and in a language understood by majority of the workmen in the employment [at

the main entrance to the establishment and its office] and shall be maintained in a clean and legible

condition

The Payment of Wages Act, 1936

Section 3: Responsibility for payment of wages on the employer.

Duration of wage period The Payment of Wages Act, 1936 Section 4:

The wage period shall not exceed one month.

Date of Payment and mode of Payment Section 5:

payment of wages before 7th day after the last day of the wage period (less than1000 workers) and10

th day

in case of others (employing more than 1000 employees).

Section 6: All wages shall be paid in current coin or currency notes or in both

The Equal Remuneration

The Equal Remuneration Act, 1976, Section 4:


similar nature.

Payment for Overtime hours worked

The Factories Act, 1948, Chapter VI, SECTION 59(1)

where a worker works in a factory for more than nine hours in any day or for more than 48 hours in any

week, he shall in respect of overtime work, be entitled towages at the rate of twice his ordinary rate of wages.

Leave with Wages

The Factories Act, 1948, Chapter VIIISection 79(1)

Every worker who has worked for a period of 240 days or more in a factory during calendar year shall be

allowed during the subsequent calendar year leave with wages at the rate of one day for every twenty days of

work performed by him during the previous calendar year.

Permissible Deduction

The Payment of Wages Act, 1936, Section 7

Deduction from the wages of an employed person shall be made only with the provisions of this Act and may

be following kinds only: -

(m) Fines

(n) Deduction for absence from duty.



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(o) Deductions for damage to or loss of goods expressly entrusted to the employed person for custody or

loss of money for which he is required to account, where such damage or loss is directly attributable to

his neglect or default.

(p) Deduction for house accommodation supplied by the employer.

(q) Deductions for such amenities and services supplied by the employer.

(r) Deduction for recovery of advances of whatever nature and the interest due in respect thereof, or for

adjustment of over payments of wages.

(s) Deduction of Income tax payable by the employed person.

(t) Deduction required to made by order of a court or other authority competent to make such orders.

(u) Deductions for subscriptions to and for repayment of advances from the provident fund.

(v) Deduction for payment to cooperative societies approved by the state government.

(w) Deduction made for payment of premium on life insurance with the written authorization of the person

employed.

(x) Deduction made with the written authorization of the person employed for the payment of his

contribution to any fund constituted by the employer or the trade union registered under the Trade

Union Act, 1926.

Section 8 : (1) No fine shall be imposed on any employed person save in respect of such acts and omissions

on his part as the employer ,with the previous approval from the state government or of the prescribed

authority.

(2) A notice specifying such acts and omissions shall be exhibited in the prescribed manner on

the premises in which the employment is carried on.

(3) No fine shall be imposed on any employed person until he has been given an opportunity of

showing cause against fine, or other wise than in accordance with such procedure as may be

prescribed for the imposition of fines.

(4) The total amount of fine which may be imposed in any wage period on any employed person

shall not exceed an amount equal to three percent of the wages payable to him in respect of that

wage period.

Cost of Living:

The Minimum wages Act, 1948 is a central legislation which allows the respective state Government to fix

minimum wage for the workers based on the on the cost of living at that particular place. No worker should

be paid less than the minimum wage. The Wage committees revise the minimum wages after every six months.

Norms for fixation of minimum wages

The norms include those, which were recommended by the Indian labour Conference in its session held in

1957.

(i) 3 consumption units for one earner.

(ii) Minimum food requirement of 2700 calories per average Indian adult.

(iii) Clothing requirements of 72 yards per annum per family.

(iv) Rent corresponding to the minimum area provided for under Government’s Industrial Housing Scheme.



185

(v)Fuel, Lighting and other miscellaneous items of expenditure to constitute 20% of the total Minimum

Wages.

Other Parameters

(i) “Children education, medical requirement, minimum recreation including festivals/ ceremonies and

provision for old age, marriage etc should further constitute 25%of the total minimum wage. (ii) Local

condition and other factors influencing the wage rate.

Social Benefits

The Employees Provident Fund and Miscellaneous Provision Act, 1952

This Act is applicable to those employees whose basic wage is below 6500 INR per month.

The basic wage means all emoluments which are earned by an employee while on duty or on leave or on

holidays with wages in either case in accordance with the terms of employment and which are paid or

payable in cash to him.

This does not include:-

(iv) the cash value of any food concession.

(v) Any dearness allowance, overtime allowance, house rent allowance, bonus, commission or any

other similar allowance payable to the employee.

(vi) Any present made by the employer

The Employee and the Employer both contribute 12% of the basic wage towards this fund. This fund entitles

the employee for provident fund, the employees pension scheme and deposit linked insurance scheme.

The onus is on the employer to pay the employee’s due as well as the employer’s due to the provident fund

authorities in time, failing in which the employer has to pay the amount as well as the interest of 12% on the

amount.

The act does not apply to a newly setup establishment for an initial period of 3 years starting from the first

setting up of the establishment.

Employees Provident Fund Amending Act, 1963: Contractor‟s employees are eligible for provident fund benefits.

The Workmen’s Compensation Act, 1923

Chapter II,

Section 3: Employer liability for compensation (1) If personal injury is caused to a workman by accident

arising out of or in course of employment, his employer shall be liable to pay compensation.

Section10B: Reports of fatal accidents & serious bodily injuries to be sent to the commissioner within seven

days of such accident.

Section 12: Principal (employer) liable for the injuries caused to any person working under the contract.

Employees State Insurance Act, 1948

An Act to provide for certain benefits to employees in case of sickness, maternity and employment injury and

to make provision for certain other matters in relation thereto



186

It shall apply in the first instance to all factories (including factories belonging to government) other than

seasonal industries.

Seasonal industry means the factory engaged in the following manufacturing process

Cotton ginning

Cotton and jute pressing

Decortications of groundnuts

The manufacture of coffee, indigo, lac, rubber, sugar, tea or any other manufacturing process

related to or incidental to the the above processes

A factory, which is engaged for a period not exceeding seven months in a year.

This Act is applicable to those employees whose wage is below 6500 INR per month (Raised to INR 7500

from March, 2004 onwards).

Wages means all remuneration paid or payable in cash to an employee, if the terms of the contract of

employment, express or implied were fulfilled and includes [any payment to an employee In respect of any

period of authorized leave, lockout, strike which is not illegal or layoff and] other additional remuneration if

any (paid at intervals not exceeding two months) but does not include

Any contribution paid by the employer to any pension fund or provident fund under this Act.

Any traveling allowance or the value of the traveling concession

Any sum paid to the person employed to defray special expense entailed on him by the nature of

employment

Any gratuity payable on discharge.

Casual Employees are employees under this Act.

Part time employees are covered under this Act

Apprentice under the Apprenticeship Act not covered under this Act

The Act entitles the employees: -

(f) Medical benefits for self and the family members

(g) Sickness benefit

(h) Disablement benefit

(i) Maternity benefits for female employees

(j) Funeral expense in case of the death of the employee.

Gratuity,

Payment of Gratuity Act, 1972, section 6

Every employee is required to submit his nomination in the prescribed form in duplicate to his employer,

either personally or through Registered AD, within 30 days of the completion of one year of service.

Section 4A

Every employer has to obtain insurance for his liability to pay gratuity from the LIC

The Maternity Benefits

In accordance with the Maternity Benefit Act,1961A Female employee will be entitled to the maternity

benefits if she has actually worked in an establishment of the employer from whom she claims the maternity

benefits, for a period of not less than 80 days in the twelve months immediately preceding the date of her

expected delivery.

The female employee is entitled to:-

h) Maternity Leave: 12 weeks (6 weeks before the delivery and 6 weeks after the delivery)



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i) Maternity Benefit in case of death of the woman.

j) Payment of Medical Bonus of INR 250 if the employers do not provide for free prenatal and postnatal

confinement.

k) An additional leave of 6 weeks in case of miscarriage.

l) Two weeks leave with wages for Tubectomy operation.

m) One month leave in case of illness arising out of pregnancy, delivery, and premature birth of the child

or miscarriage.

n) Every woman delivered of a child who returns to duty after such delivery, in addition of interval of

rest allowed to her, be allowed in course of her daily work two breaks of her prescribed duration for

nursing the child until the child attains the age of fifteen months.

The Payment of Gratuity Act, 1972, Section 4 (1)

Gratuity shall be payable to an employee on the termination of his employment after he has rendered

continuous service for not less than five years-

(d) On his superannuation

(e) On his retirement or resignation, or

(f) On his death or disablement due to accident or disease

Section 4 A (1) With effect from such date as may be notified by the appropriate Government in this behalf,

every employer shall obtain an insurance in the manner prescribed, for his liability for payment towards

gratuity under this Act, from the LIC established under the Life Insurance Corporation of India Act (1956) or

any other prescribed insurer.

7.General Working facilities: -

Dining Room

The Factories Act, 1948,Chapter V

Section 47(1) In every factory wherein more than 150 workers are ordinarily employed adequate and

suitable shelters or rest rooms and suitable lunchroom, with provision for drinking water, where

workers can eat meals brought by them, shall be provided and maintained for the use of the workers.

Section47 (2) The shelters or rest rooms or lunchroom shall be sufficiently ventilated and shall be

maintained in a cool and clean condition.

Canteen

The Factories Act, 1948,Chapter V, Section 46

The [state] government may make rules requiring that in any specified factory wherein more than

250 workers are ordinarily employed, a canteen or canteens shall be provided and maintained by the

occupier for the use of the workers.

The canteen building shall be situated not less than 15feet from any Latrine, urinal, boiler

house, coal stocks, Ash dumps and any other source of dust, smoke or obnoxious fumes.



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The Drinking Water

The Factories Act, 1948,Chapter III, Section 46

Section 18(1)In every factory effective arrangement shall be made to provide and maintain at suitable

points conveniently situated for all workers employed therein a sufficient supply of wholesome

drinking water.

SECTION 18(2) All such points shall be legibly marked “Drinking Water” in a language understood

by majority of the workers employed in the factory and no such points shall be situated within (six

metres of any washing place, urinal, latrine, spittoon, open drain carrying sullage or effluents or any

other source of contamination) unless a shorter distance is approved in writing by the chief inspector.

Personal Protective equipments

The Factories Act, 1948, Chapter I, Section 7-A (1)

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 Fire Safety

The Factories Act, 1948, Chapter IV, Section 38 In every factory, all practicable measure shall be taken to prevent outbreak of fire and its spread,

both internally and externally and to provide and maintain

(c) Safe means of escape for all persons in the event of fire, and

(d) the necessary equipment and facilities for extinguishing fire.

a. SECTION 38 (2) effective measures shall be taken to ensure that in every factory all the workers are

familiar with the means of escape in case of fire and have been adequately trained in the routine to be

followed in such cases.

b. Fire fighting drills shall be held as often as necessary and at least once in every period of two

months.

Lighting facility

The Factories Act, 1948,Chapter III, Section 17(1)

In every part of a factory where the workers are working or passing there shall be provided and

maintained sufficient and suitable lighting, natural or artificial or both.

Overcrowding

The Factories Act, 1948, Chapter III, Section 16



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SECTION 16 (1) No room in any factory shall be overcrowded to an extent injurious to the health of

the workers employed therein.

SECTION 16 (2) Without prejudice to the generality of subsection (1) there shall be in every

workroom of a factory in existence on the commencement of this Act at least (9.9cubic metres) and of

a factory built after the commencement of this Act at least (14.2 cubic metres) of space for every

worker employed therein and for the purpose of this subsection no account shall be taken of any

space which is more than (4.2 metres) above the level of the floor of the room.

Fencing of Machinery

The Factories Act, 1948, Chapter IV, Section 21

In every factory the following, namely:-

(i) every moving part of a prime mover and every flywheel connected to a prime mover, whether the prime

mover or flywheel is in the engine house or not.

(ii) the headrace and the tailrace of every water wheel and water turbine.

(iii) any part of the stock bar which projects beyond the head stock of a lathe; and

(iv)Unless they are in such position or of such construction as to be safe to be every person employed in the

factory as they would be if they were securely fenced, the following namely-

(d) every part of an electric generator, a motor or rotary converter;

(e) every part of transmission machinery, and

(f) every dangerous part of any other machinery

shall be securely fenced by safeguards of substantial construction which [shall be constantly maintained and

kept in position] while the parts of the machinery they are fencing are in motion or in use.

SECTION 26(1) in all machinery driven by power and installed in any factory after the commencement of

this Act: -

(b) Every set screw, bolt or key on any revolving shaft, spindle, wheel or pinion shall be so sunk, encased

or otherwise effectively guarded as to prevent danger.

All spur, worm, and other toothed or friction gearing which does not require frequent adjustment while in

motion shall be completely encased, unless it is so situated as to be as safe as it would be if it were completely

encased.

The First Aid Boxes

The Factories Act, 1948,, ChapterV ,Section45

a. SECTION 45(1) There shall in every factory be provided and maintained so as to be readily accessible

during all working hours first aid boxes or cupboard equipped with the prescribed contents, and the

number of such boxes or cupboard to be provided and maintained shall not be less than one for every one

hundred and fifty workers ordinarily employed (at any one time) in the factory.

b. The first aid boxes or cupboard shall be distinctively marked with a red cross on white

background and shall contain the following equipment

For factories employing more than 50 people:-

24 small size sterilized dressing

12 medium size sterilized dressings.

12 large size sterilized dressing

12 large size sterilized burn dressing

One (200) ml bottle of centrimide solution (1%) or a suitable antiseptic solution.

One 200 ml bottle of Mercurochrome solution (2%) in water

Twelve (15ml) packets of sterilized cotton wool

One 120 ml bottle of salvolatile having the dose and mode of administration on the

label.



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One pair of scissors



12 pieces of sterilized eye pad in separate sealed packed.

A bottle containing 100 tablets (each of 5 grains) of Aspirin

One polyethylene wash bottle (500 cc) for washing eyes.



Six triangular bandages

One tourniquet

A supply of suitable splints

Two packets of safety pins

Kidney tray

A snakebite lancet

One (30ml) bottle containing potassium permanganate crystals

First aid leaflet issued by the Directorate general of Factory, Advise Service and labour institute,

Bombay

Ambulance Room

The Factories Act, 1948 Chapter V, Section 45(4)

In every factory wherein more than 500 are ordinarily employed there shall be provided and

maintained an ambulance room of the prescribed size, containing the prescribed equipment and in

the charge of such medical and nursing staff as may be prescribed and those facilities shall always

be made available during the working hours of the factory.

Latrines and urinals

The Factories Act,1948, ChapterIII ,Section19

Section 19(1) In every factory:-

(f) Sufficient latrine and urinal accommodation of prescribed types shall be provided conveniently

situated and accessible to workers at all times while there are at the factory.

(g) Separate enclosed accommodation shall be provided for male and female workers.

(h) Such accommodation shall be adequately lighted and ventilated.

(i) All such accommodation shall be maintained in a clean and sanitary condition at all times.

Latrine accommodation shall be provided in every factory on the following scale: - (a) Where women are employed, there shall be at least one latrine for every 25 women

(d) Where males are employed, there shall be at least one latrine for every 25 males provided that where

the number of males exceeds 100

It shall be sufficient if there is one latrine for every25 males up to the first 100 and one for every 50

thereafter.

Every Latrine shall be under cover and so partitioned off so as to secure privacy and shall have a

proper door and fastening.

Where workers of both sexes are employed, there shall be displayed outside each Latrine block a notice

in the language understood by majority of the workers indicating “For Men’s Only” and “For women’s



191

Only” as the case may be. The notice shall also bear the figure of a Man or of a woman, as the case may

be.

(Note: The number of toilets per worker may vary between state to state)

Crèche

The Factories Act,1948, ,Chapter V,Section 48

In every factory wherein more than 30 women workers are ordinarily employed there shall be provided and

maintained a suitable room or rooms for the use of children under the age of six years of such women.

Such rooms shall provide adequate accommodation, shall be adequately ventilated, shall be maintained in a

clean and sanitary condition and shall be under the charge of women trained in the care of the children and

infants.

Exception to crèche

The Karnataka Factories (Amendment) Rules, 2002

Rule 104-B. Exemption from the provision of crèche in certain cases:

(2) In factories where it is reasonably not practicable to provide and maintain crèche in accordance with

law, the chief inspector of factories from the provision of rules 101 to 104, if he is satisfied that

alternate arrangement made under sub rule (2) of this rule are ensured by the occupier of the factory.

Provided that the occupier of the factory shall:

(a) Obtain the consent of the employee

(b) Furnish full details of the places, owners or persons or Non government Organization who

are providing such crèche and the infrastructure facilities available therein

(c) Bear the cost incurred by the parent on the child.

(d) Furnish the information of the child as and when it is admitted and withdrawn.

8.Other laws:

License

The Factories Act, 1948,Chapter-I, Section 6

The state Government may make rules

(aa) requiring the previous permission in writing of the state government or chief Inspector to be obtained for

the site on which the factory is to be situated and for the construction or extension of any factory or class or

description of factories.

Apprentices Act, 1961

3. Qualifications for being engaged as an apprentice

A person shall not be qualified for being engaged as an apprentice to undergo apprenticeship training in any

designated trade, unless he-

(a) is not less than fourteen years of age, and

(b) satisfies such standards of education and physical fitness as may be prescribed

4. Contract of apprenticeship

(1) No person shall be engaged as an apprentice to undergo apprenticeship training in a designated trade

unless such person or, if he is minor, his guardian has entered into a contract of apprenticeship with the

employer.



192

(2) The apprenticeship training shall be deemed to have commenced on the date on which the contract of

apprenticeship has been entered into under sub-section (1).

(3) Every contract of apprenticeship may contain such terms and conditions as may be agreed to by the

parties to the contract:

PROVIDED that no such term or condition shall be inconsistent with any provision of this Act or any rule

made there under.

(4) Every contract of apprenticeship entered into under sub-section (1) shall be sent by the employer within

such period as may be prescribed to the Apprenticeship Adviser for registration.

(5) The Apprenticeship Adviser shall not register a contract of apprenticeship unless he is satisfied that the

person described as an apprentice in the contract is qualified under this Act for being engaged as an

apprentice to undergo apprenticeship training in the designated trade specified in the contract.

(6) Where the Central Government, after consulting the Central Apprenticeship Council, makes any rule

varying the terms and conditions of apprenticeship training of any category of apprentices undergoing such

training, then, the terms and conditions of every contract of apprenticeship relating to that category of

apprentices and subsisting immediately before the making of such rule shall be deemed to have been modified

accordingly].

Environmental,

The Environmental Protection (Regulation) Act 1986: -

Chapter III Section 7:No person carrying on any industry, operation or process shall

discharge or emit or permit to be discharged or emitted any environmental pollutant

in excess of such standards as may be prescribed.

Noise Pollution,

The Noise Pollution (Regulation and Control) Rules 2000, the ambient air quality standards for industrial

area are 75dB(A) leg during daytime and 70 dB (A) in the night.

Further the Noise Limit from domestic Appliances has been set as: -

(i)Window Air Conditioner 68 dB (A)

( ii) Air coolers- 60 dB (A)

(iii) Refrigerators 46 dB (A)

( iv) Textile Industry 85-90 dB(A), provided that when it is higher need

to provide ear plugs.

Water Pollution,

Water (Prevention and control of Pollution) Act, 1974,Section 24

(1) Subject to the provisions of this section --

(a) no person shall knowingly cause or permit any poisonous, noxious or polluting matter determined

in accordance with such standards as may be laid down by the State Board to enter (whether directly

or indirectly) into any [stream or well or sewer or on land]; or



193

(e) no person shall knowingly cause or permit to enter into any stream any other matter which may tend,

either directly or in combination with similar matters, to impede the proper flow of the water of the

stream in a manner leading or likely to lead to a substantial aggravation of pollution due to other

causes or of its consequences.

Restrictions on new outlets and new discharges, Section 25(1).

1) Subject to the provisions of this section, no person shall, without the previous consent of the State Board-

(a) establish or take any steps to establish any industry, operation or process, or any treatment and

disposal system or any extension or addition thereto, which is likely to discharge sewage or trade effluent into

a stream or well or sewer or on land (such discharge being hereafter in this section referred to as discharge of

sewage); or

(b) bring into use any new or altered outlet for the discharge of sewage; or

(c) begin to make any new discharge of sewage:

Disposal of hazardous waste

HAZARDOUS WASTES (MANAGEMENT AND HANDLING) RULES, 1989

[Notification No. SO 594(E), dated 28th. July, 1989]1

In exercise of the powers conferred by sections 6, 8, and 25 of the Environment (Protection) Act, 1986 (29 of

1986), the Central Government hereby makes the following rules, namely: -

4. Responsibility of the occupier for handling of wastes

(1) The occupier generating hazardous wastes listed in column (2) of the schedule in quantities equal to or

exceeding the limits given in column (3) of the said Schedule, shall take all practical steps to ensure that such

wastes are properly handled and disposed of without any adverse effects which may result from such wastes

and the occupier shall also be responsible for proper collection, reception, treatment, storage and disposal of

these wastes either himself or through the operator of facility.

9 Records and returns

(1) The occupier generating hazardous waste and operator of a facility for collection, reception, treatment,

transport, storage and disposal of hazardous waste shall maintain records of such operations in Form 3. (2) The occupier and operator of a facility shall send annual returns to the

2[State Pollution Control Board

or Committee] in Form 4.

SCHEDULE: CATEGORIES OF HAZARDOUS WASTES

[Rules 3(i), 3(n) and 4]

Waste categories Types of Wastes Regulatory quantities

(1) (2) (3)

Waste Category No. 1 Cyanide wastes 1 kilogramme per year

calculated as cyanide.



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Waste category No. 2 Metal finishing wastes 10 kilogrammes per year the



Waste Category No. 3 Waste containing water soluble

chemical compounds of lead,

copper, Zinc, Chromium, nickel,

selenium, Barium and antimony

10 kilogrammes per year the



Waste Category No. 4 Mercury, arsenic, thallium and

cadmium bearing wastes 5 kilogrammes per year the sum

of the specified substance


Waste Category No. 5 Non-halogenated hydrocarbons


calculated as non-halogenated

hydrocarbons.

Waste Category No. 6 Halogenated hydrocarbons


calculated as halogenated

hydrocarbons.

Waste Category No. 7 Wastes from paints, pigments

glue, varnish and printing ink 250 kilogrammes per year

calculated as oil or oil

emulsions.

Waste Category No. 8 Wastes from dyes and dye


inorganic chemical compounds


calculated as inorganic

chemicals.

Waste category No. 9 Wastes from dyes and dye


organic chemical compounds


calculated as organic chemicals.

Waste category No. 10 Waste oil and oil emulsions 1000 kilogrammes per year

calculated as oil and oil

emulsions.

Waste category No. 11 Tarry wastes from refining and

tar residues from distillation or

pyrolytic treatment


calculated as tar.

Waste category No. 12 Sludges arising from treatment

of waste waters containing

heavy metals, toxic organics,

oils, emulsions and spent

chemicals and incineration ash




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Waste Category No. 13 Phenols 5 kilogrammes per year

calculated as phenols.

Waste category No. 14 Asbestos 200 kilogrammes per year

calculated as asbestos.

Waste Category No.15 Wastes from manufacturing of

pesticides and harbicides and

residues from pesticides and

herbicides formulation units


calculated as pesticides and

their intermediate products

Waste category No. 16 Acid/ alkaline/ slurry wastes 700 kilogrammes per year

calculated as acids/ alkalies.

Waste category No. 17 Off-specification and discarded

products Irrespective of any quantity.

Waste category No. 18 Discarded container and

container liners of hazardous

and toxic chemicals and wastes


Boiler Certificate

Boiler’s Act,1923,

Section 2

(f) “boiler” means any closed vessel exceeding [22.75 litres] in capacity which is used expressly for

generating steam under pressure and includes any mounting or other fitting attached to such

vessel which is wholly or partly under pressure when steam is shut off;

(f)“steam-pipe” means any pipe through which steam passes from a boiler to a prime mover or

other user or both, if

(i)The pressure at which steam passes through such pipe exceeds 3.5 kilograms per square centimetre

above atmospheric pressure; or

(ii )Such Pipe exceeds 254 millimeters in internal diameter; and includes in either

case any connected fitting of a steam-pipe.

Section 6

Save as otherwise expressly provided in this Act, no owner of a boiler or permit it to be used ---

(a) unless it has been registered in accordance with the provisions of this Act;



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(b) in the case of any boiler which has been transferred from one State to another, until the transfer has been reported

in the prescribed manner;

(c) unless a certificate or provisional order authorising the use of the boiler is for the time being in force under this

Act;

(d) at a pressure higher than the maximum pressure recorded in such certificate or provisional order;

(j) where the State Government has rules requiring that boilers shall be in charge of

persons holding (certificates of proficiency or competency), unless the boiler is

in charge of a person holding the certificate required by such rules:

Provided that any boiler registered, or any boiler certified or licensed, under any Act hereby repealed shall be

deemed to have been registered or certified, as the case may be, under this Act.

NOISE LIMIT FOR GENERATOR SETS RUN WITH DIESEL

In accordance with MINISTRY OF ENVIRONMENTAND FOREST'S

NOTIFICATION

New Delhi, the 17th May 2002

G.S.R. 37I(E)- In exercise of the powers conferred by sections 6 and 25 of the Environment (Protection) Act,

1986 (29 of 1986), the Central Government hereby makes the following rules further to amend the

Environment (Protection) Rules, 1986, namely

1. (1) These rules may be called the Environment (Protection) second Amendment Rules, 2002.

SE 94. NOISE LIMIT FOR GENERATOR SETS RUN WITH DIESEL

1. Noise limit for diesel generator sets (upto 1000 KVA) manufactured on or after the 1st July, 2003.

The maximum permissible sound pressure level for new diesel generator (DG) sets with rated capacity up to

1000 KVA, manufactured on or after the 1st July, 2003 shall be 75 dB (A) at 1 metre from the enclosure

surface.

The diesel generator sets should be provided with integral acoustic enclosure at the manufacturing stage

itself

IT F6. Compliance with BIS specifications

All engines up to 20 kw (individually or as part of the product) shall carry ISI mark and meet relevant BIS

specifications (IS 1000 1).

OR FOREIGN TRADE (DEVELOPMENT AND REGULATION) ACT, 1992

[Act No. 22 of Year 1992]



197

7. Importer-Exporter Code Number

No person shall make any import or export except under an Importer-Exporter Code Number granted by the

Director General or the officer authorized by the Director General in this behalf, in accordance with the

procedure specified in this behalf by the Director General.

GCustoms Laws,

Customs Act, 1962, Section11E (1)

Every person who, on or after the notified date, owns, possesses, controls or acquires any notified goods

shall maintain (in such form and in such manner as may be specified by rules made in this behalf) a true and

complete account of such goods and shall, as often as he acquires or parts with any notified goods, made an

entry in the said account in relation to such acquisition or parting with, and shall also state therein the

particulars of the persons from whom such goods have been acquired or in whose favour such goods have

been parted with, as the case may be, and such account shall be kept, along with the goods, at the place of

storage of the notified goods to which such accounts relate:

Publication of name by company (Display of Notice Board)

Section 147, Companies Act, 1956

(1) Every company- (a) shall paint or affix its name and the address of its registered office, and keep the same painted or

affixed, on the outside of every office or place in which its business is carried on, in a conspicuous position, in

letters easily legible; and if the characters employed therefor are not those of the language or of one of the

languages in general use in that locality, also in the characters of that language or of one of those languages;

(b) shall have its name engraven in legible characters on its seal; and

(c) shall have its name and the address of its registered office mentioned in legible characters in all its

business letters, in all its bill heads and letter paper, and in all its notices and other official publications; and

also have its name so mentioned in all bills of exchange, hundies, promissory notes, endorsements, cheques

and orders for money or goods purporting to be signed by or on behalf of the company, and in all bills of

parcels, invoices, receipts and letters of credit of the company.

(2) If a company does not paint or affix its name and the address of its registered office], or keep the same

painted or affixed in the manner directed by clause (a) of sub-section (1), the company, and every officer of

the company who is in default, shall be punishable with fine which may extend to five hundred rupees for not

so painting or affixing its name and the address of its registered office, and for every day during which its

name and the address of its registered office, is not so kept painted or affixed.

(3) If a company fails to comply with clause (b) or clause (c) of sub-section (1), the company shall be

punishable with fine, which may extend to five thousand rupees. (4) If an officer of a company or any person on its behalf- (a) uses, or authorises the use of, any seal purporting to be a seal of the company whereon its name is

not engraven in the manner aforesaid;



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(b) issues or authorises the issue of, any business letter, bill head, letter paper, notice or other official

publication of the company wherein its name and the address of its registered office are not mentioned in the

manner aforesaid; (c) signs or authorises to be signed, on behalf of the company, any bill of exchange, hundi, promissory

note, endorsement, cheque or order for money or goods wherein its name is not mentioned in the manner

aforesaid; or (d) issues, or authorises the issue of, any bill of parcels, invoice, receipt or letter of credit of the

company, wherein its name is not mentioned in the manner aforesaid; such officer or person shall be punishable with fine which may extend to five thousand rupees, and shall

further be personally liable to the holder of the bill of exchange, hundi, promissory note, cheque or order for

money or goods, for the amount thereof, unless it is duly paid by the company.

The Contract labour (Regulation and abolition) Act, 1970

A person is said to be employed as a contract labour, in or in connection with the work of an establishment,

when he is hired for such work by or through a contactor, with or without the knowledge of the principal

employer.

The act extends to whole of India. It applies to_

(a) every establishment wherein 20 or more workmen are or were employed on any day of the

preceding 12 months as contract labour.

(b) Every contractor who employs or employed on any day of the preceding 12 months, 20 or

more workmen.

Section 7. Registration of Establishments

An establishment cannot employ contract labour if it does not hold a certificate of registration (Form 1)

Section 12; Licensing of the contractors

A contractor cannot engage contract labour without obtaining a license

THE NARCOTIC DRUGS AND PSYCHOTROPIC SUBSTANCES ACT, 1985

CHAPTER III PROHIBITION, CONTROL AND REGULATION

8. Prohibition of certain operations: No Person shall

4. cultivate any coca plant or gather any portion of coca plant; or

5. cultivate the opium poppy or any cannabis plant; or

6. produce, manufacture, possess, sell, purchase, transport, warehouse, use, consume, import inter-

State, export inter-State, import into India, export from India or transship any narcotic drug or

psychotropic substance,

notes



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However, they are not statutory provisions themselves (meaning that the „Standing Orders‟ even when

approved, do not become „law‟ in the sense in which Rules and Notifications issued under delegated

legislation become after they are published as prescribed.) - Rajasthan SRTC v. Krishna Kant - AIR 1995 SC

1715 = (1995) 5 SCC 75 = 71 FLR 211 = 87 FJR 204 = 1995 AIR SCW 2683 = 1995 LLR 481 (SC).



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CERTIFIED STANDING ORDERS

DAMANGANGA GARMENTS (A Unit of Sutlej Textiles & Industries Limited) Survey No. 234 (1 + 2), Village: Daheli Via: Bhilad, Tal. Umbergaon Dist. Valsad (Gujarat) For workman doing manual or technical wok. (1)These Orders shall apply to all workmen employed in the establishment to do manual

or technical work. (2) In these orders, unless the context requires otherwise: - (a)‗The establishment‘ means:- DAMANGANGA GARMENTS (A Unit of Sutlej Textiles & Industries Limited) Survey No. 234 (1 + 2), Village: Daheli Via: Bhilad, Tal. Umbergaon Dist. Valsad (Gujarat) (b)‗Manager‘ means the person for the time being managing the establishment and

includes any other officer duly authorized by the employer to act as manager, such authorization being notified to the workmen by displaying it on the notice board of the establishment.

(c) ‗Proprietor‘ means the person having ultimate control over the affairs of the establishment.

(d) ‗Ticket‘ includes an identity card, pass or token. (3) (1) Workman shall be classified, as: - (a) Permanent workman; (b) Probationers; (c) ‗Badlis‘ or substitutes; (d) Temporary workman; (e) Casual workman; and (f) Apprentices (2)(a)―Permanent workman‖ means a workman who has been employed on a

permanent basis or whose appointment has been confirmed in writing by the Manager or by a person authorized in this behalf by the Manager and includes a workman who has completed a probationary period of three months in the aggregate in the same or an other occupation in the establishment and an apprentice who is asked or appointed to work in the post of vacancy of a permanent workman for the purposes or payment of wages to him during the period he woks on such post or in such vacancy.



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(b) ‗Probationer‘ means a workman is provisionally employed to fill a permanent vacancy or post and who has not completed three months‘ service in the aggregate in the post.

(c)―Badli‘ or substitute‖ means a workman who is appointed to the post of permanent workman or probationer, who is temporarily absent and whose name is entered in the badli register.

(d)―Temporary workman‖ means a workman who has been appointed for a limited period for work which is of an essentially temporary nature, or who is employed temporarily as an additional workman in connection with temporary increase in work of a permanent nature.

(e)―Casual‘ workman‖ means a workman who is employed for work which is essentially of an occasional or casual nature.

(f) ―Apprentice‖ means a workman who is a learner and who may or may not be paid an allowance during the period of his training. Provided that no workman shall be classified as an apprentice if he has had training for an aggregate period of one year.

(4)If a permanent workman is employed as probationer in a new post, he may, at any

time during the probationary period, be reverted to his old permanent post by an order in writing signed by the Manager.

(5) (1) For each class of workman, specified I clause (1) of standing order – 3, a distinctive ticket shall be provided bearing the name of the class.

(2) Every workman shall be given a ticket bearing: - (i) the name of the department in which he is working; and (ii) his number.

(3)Every workman shall, when entering the establishment, deliver up his ticket at the place provided, and shall show his ticket whenever required (except when it is not in his possession by the reason of having been so delivered) to any person authorized by the Manager in this behalf.

(4) The days on which a ‗badli‘ works in the establishment shall be entered on his ticket.

(6) Notices showing the periods and hour of work for every class and group of workman

in the establishment and for each shift shall be displayed on notice boards maintained for the purpose in the departments concerned and at the time-keepers office or at or near the main entrance of the establishment.

(7) Notices specifying (a) the weekly holiday under Section-52 of the Factories Act, 1948, (b) the dates on which compensatory holidays, if any, under section-53 of the factories Act, 1948, will be allowed, and (c) the days on which wages are to be paid shall be displayed o the notice boards at the time-keeper‘s office at or near the main entrance of the establishment.

(8) Notices specifying the rates of wages, showing separately allowances, if any, payable to each class or workman and for each class of work shall be displayed in a conspicuous position in the departments in which the workmen concerned are working.

(9) (1) An unclaimed wage pay day for each work (i.e. a day o which wages due to a

workman but not paid on the usual pay day on account of their being unclaimed, are to



202

be paid) shall be notified on the notice board, along with the notices to be displayed under Standing Order 7.

(2)The unclaimed amount of wages due to a workman shall be paid on the days notified under this standing order and on the unclaimed wages pay day following the date on which a substantiated claim was presented by the workman, or on his behalf, by his legal representative.

(10)(1)(a) More than one shift may be worked in a department or section of a

department at the discretion of the Manager. (b) If more than one shift I worked in the establishment workman shall be

liable to be transferred form one shift to another. (c)Whenever an additional shift is started or shifts are altered or discontinued, a

seven days notice shall be given to the workman but if as a result of the discontinuance of the shift any permanent workman is likely to be discharged, a notice of one month shall be given.

(d)If as a result of discontinuance of shift working, any permanent workmen are likely to be discharged, they shall be discharged having regard to the length of their service in the establishment and the department and the occupation concerned, those with the shortest of service being discharged first.

(e)On re-starting a shift, notice thereof shall be given either in a newspaper having wide local circulation or by letters to individual workman concerned, and the workman discharged as a result of the discontinuance of the shift shall, if they present themselves within seven days of the publication of the notice o the posting of the length of their service I the establishment and the department and the occupation concerned.

(2) The Manager may close down any department or section of a department after

giving one month‘s notice to the workman. Before re-opening such department or section, as the case may be, seven days notice thereof shall be given either in a newspaper having wide local circulation or by letters to be individual workman concerned.

(3) The Manager may close down the whole establishment after giving one month‘s notice to the workman. Seven days‘ public notice of the re-starting of the establishment shall be given either in a newspaper having a wide local circulation or by letter to individual workman concerned.

(4) Notice of: - (i) Starting, re-starting, alteration and discontinuance of shift working (ii) the closure and re-opening of a department or section of department and (iii) the closure and re-opening of the establishment shall be displayed in the time-

keeper‘s office or at the main entrance to the establishment and at the gate or gates appointed under the standing order 16, and in the case of a department or section, also in the department concerned.

(5) On the re-opening of a department or section or the establishment, as the case may be, preference for employment will be given to the workmen whose services were



203

terminated on account of the closure, according to the length of their service in the establishment and the department and the occupation concerned, provided that they present themselves for service at the latest by the day of re-opening.

(11) 1) All workmen shall be at work in the establishment at the times fixed and notified. Workman attending late shall be liable to be shut out and treated as absent:

Provided that no workman who attends with 15 minutes of the starting time shall be shut out.

(2)Any workman who after delivering his ticket is found absent from his proper place of work during working hours without permission or without sufficient reason, shall be liable to be treated as absent for the period of his absence.

(12) Subject to the provisions of clause (1) of the tanding order 13, leave with wages and allowances shall be granted to all workman in accordance with the law applicable to the establishment in which such workmen are employed or any agreement or award for the time being in force, or the contract of service or any customs or usage of the establishment.

(13) (1) Grant of leave to a workman shall depend on the exigencies of the establishment and shall be at the discretion of the Manager.

(2)A workman who desires to obtain leave of absence applies in writing to the Manager or any officer appointed for the purpose by the Manager. Such application for leave shall be made at least seven days before the date, from which leave is to commence except in urgent cases or unforeseen circumstances when it is not possible to do so. The Manager or any officer empowered by him in this behalf shall issue orders on such application within three days of the presentation of the application and in case of an urgent nature immediately. If the leave asked for is granted, a leave pass showing the date from which is the leave of absence commences and the date on which is workman will have to resume duty, shall be issued to the workman. Where leave is refused or postponed, the fact of such refusal or postponement and the reasons therefore shall be recorded in writing a register to be maintained for the purpose, and if the workman so desires a copy of such entry in the register, shall be supplied to him.

(3) If a workman after proceeding on leave desires an extension thereof, he shall make an application for the purpose to the manager, in writing. A written reply conveying the grant or refusal of extension of leave shall be sent to the workman at the address given by him, if such reply is likely to reach him before the expiry of the leave originally granted to him.

(4) A workman remaining absent beyond the period of leave originally granted or subsequently extended, shall be liable to close his lien on his appointment unless he returns within eight days of the authority grating leave his inability to resume his duty immediately on the expiry of his leave. A workman who loses his lien under the provisions of his standing order but reports for duty within fifteen days of the expiry of hid leave (i) shall be kept as ‗badli‘ if he is so desires and his name shall thereupon be entered in the ‗badli‘ register, and (II) if no ‗badlis‘ are employed, his name shall be kept on a waiting list of person to be given preference for employment as an when suitable vacancies occur.

(14) (1) Every workman shall be entitled to casual leave.



204

(2) Casual leave shall be non-cumulative and no leave of any kind may be combined with casual leave.

(3) Except for emergency reasons casual shall be limited to three days at a time. Casual leave is intended to meet special or unforeseen circumstances for which provision cannot be made by exact rules.

(4) Holidays declared y the establishment ad weekly holidays may be prefixed or suffixed to casual leave.

(5) Ordinarily, the previous permission of the manager or of the head of the department shall be obtained before taking such leave. When this is not possible, the manager or the head of the department shall, as soon as may be practicable, be informed in writing or orally through any person of the absence from work and of the probable duration of such absence.

(15) Except in the case of casual workman, record shall be maintained in a register of all

leave of absence which is sanctioned, refused or postponed and reasons for refusal or postponement shall in every case be entered therein. The record shall be open to inspection by the workman concerned.

(16) No workman shall enter or leave the premises of the establishment except by the

gate or gates appointed for the purpose. (17)(1)Any workman may, when leaving the department or the premises of the

establishment be searched at the point of exit of the department or the establishment by the gate man or any person appointed by the manager for the purpose.

(2)Any female workman may be detained by the gateman or any person appointed by the manager for the purpose for search by a female searcher, if acting without malice he suspects that she is in wrongful possession of property belonging to the establishment.

(3)Every search shall be conducted in the presence of not less than two persons and a female workman shall not be searched in the presence of any male person, except with her consent.

(4)Subject to the provisions of the above clauses any member of a works committee constituted under the provisions of the industrial disputes Act, 1947, may be present at a search made under this standing order.

(18)(1)In the event of fire, catastrophe, breakdown of machinery, stoppage of power supply, anepidemis, civil commotion or other cause beyond the control of the manager, may at any time without notice or compensation in lieu of notice stop any machine or department wholly or partially or the whole part of the establishment for reasonable period.

(2)In the event of a stoppage under clause (i) during working hours the workman affected shall be notified, as soon as practicable, when the workman affected shall be notified, as soon as practicable, when work will be resumed and whether they are to remain or leave the establishment. The period of detention in the establishment shall not ordinarily exceed one hour after the commencement of the stoppage. If the period of detention does not exceed one hour, workman so detained shall not be paid for such period. If the period of detention in the establishment exceeds one hour, workman so detained shall be entitled to receive wages (including all allowances) for the whole of the



205

time during which they are detained I the establishment as workman of that stoppage. In the case of piece-rate workman, the average daily earnings for the previous month shall be taken to be the daily wages.

(3)Wherever practicable, reasonable notice shall be given of the resumption of normal work, and all such workmen laid off under this standing order who present themselves or work, when the work is resumed, shall be given preference for employment.

(4)All notices required to be given under this standing order shall be displayed on notice boards at the time-keepers office and at the main entrance to the establishment. Where a notice pertains to a particular department or departments only, it shall also be displayed in department concerned.

(19) In case where workman are laid off under standing order 18, they shall be

considered as temporarily unemployed and the period of such unemployment shall be treated as leave with pay to the extent such leave is admissible and leave without pay for the balance of the period. When, however, workman have to be laid off for an indefinite period exceeding two months, their service may be terminated after giving them due notice or pay in lieu thereof.

(20) Workman may be laid off due to shortage of orders, temporary curtailment of

production or similar reasons and consequent stoppage of any machine or department, for a period not exceeding six days in the aggregate (excluding statutory holidays), in any month, provided that seven days notice is given. A workman laid off under this standing order for more than five days in a month, may, on being laid off, leave his employment on intimation of his intention to do so.

(21)Notwithstanding anything contained in standing order 18, 19 and 20, the rights and

liabilities of employers ad workman in so far as they relate to lay off shall be determined in accordance with the provisions of chapter V-A of the Industrial Disputes Act, 1947. Provided that nothing contained in the said chapter shall have effect to derogate from any right which a workman has under the minimum wages Act 1948, or any notification or order issued there under or any award for the time being in operation on any contract with the employer.

(22)The Manager may, in the event of a strike affecting either wholly or partially any

section or department of the establishment close down either wholly or partially such section or department as well as ay other sections or departments affected by such closing down. The fact of such closure shall, as soon as practicable, be notified by notice displayed on the notice boards in the department concerned at the gate or gates appointed under Standing Order 16 and in the time keeper‘s office or at near main entrance of the establishment. The workman concerned shall also be notified by a general notice put up at the places where notices of the closure mentioned above are to be displayed, prior to the resumption of work as to when work will be resumed.

(23) (1) Subject to the provisions of the Industrial Disputes Act, 1947, the employment of

a permanent workman employed on rates other than the monthly rates of wages may be



206

terminated by given him fourteen days notice or by payment of thirteen days‘ wages (including all admissible allowances) in lieu of notice.

(2)Save as otherwise provided in these Standing Orders a permanent workman employed

on rates other than the monthly rates of wages desirous of leaving the service may do so by given the Manager fourteen days notice in writing.

(3)Where the employment of a workman is terminated under sub-rule (1) or where a workman leaves the service under sub-rule (2) and such workman draws wages on piece basis, wages shall be computed on the average daily earning of such workman for the days (4)he actually worked during the previous wage period.

The employment of a permanent workman employed o the monthly rates of wages may be terminated by giving him one month‘s notice or on payment of one month‘s wages (including all admissible allowances) in lieu of notice.

(4-A)The reasons for the termination of services of a permanent workman shall be recorded in writing and communicated to him, if he so desires, at the time of discharge, unless such communication, in the opinion of the Manager, is likely directly or indirectly to lay any person open to civil or criminal proceedings at the instance of the workman.

(5)Save a otherwise provided I these Standing Orders, a permanent workman employed on the monthly rates of wages, desirous of leaving the service shall give in writing one month‘s notice to the Manager of his intention to do so.

(6)If a permanent workman leaves the service without giving notice, no deduction on that account shall be made from his wages, but he shall be liable to e sued for damages.

(7)All clauses of workman other than those appointed on permanent basis, may leave their service or their service may be terminated without notice or pay in lieu of notice; provided that the services of a temporary workman shall not be terminated as a punishment unless he has been given an opportunity of explaining the charges of misconduct alleged against him in the manner prescribed in the Standing Order 25.

(8) When the employment of any workman is terminated, the wages earned by him shall be paid to him before the expiry of the second working day from the day on which this employment is terminated. In the case of workman leaving the service, the payment of the wages earned by him shall be paid within seven days from the date on which he leaves the services. All other sums due to a workman shall be paid before the expiry of one month from the date of termination of his service or as the case may be, from the date he left service.

(9) An order of termination of service shall be in writing and shall be signed by the

Manager and copy thereof shall be supplied to the workman concerned. In case of general retrenchment, closing down of department or termination of service as a result of a strike, no such order shall be given.

(24)The following acts and omissions on the part of a workman shall amount to

misconduct. (a) Willful insubordination or disobedience, whether or not in combination with another

or any lawful and reasonable order of a superior.



207

(b) Going on an illegal strike or abetting,inciting,instigating or acting in furtherance there of:,

(c) Willful showing down in performance of work, or abetment or instigation there of; (d) Theft, fraud or dishonesty in connection with the employers business of property

or theft of property of another workman within the premises of the establishment; (e) Taking or giving bribes or any illegal gratification; (f) Habitual absence without leave or absence without leave for more consecutive

days or overstaying the sanctioned leave without sufficient grounds or proper or satisfactory explanation;

(g) Late attendance on not less than four occasions within a month; (h) Habitual breach of any standing order or any law applicable to the establishment

or any rules made there under; (i) Collection without the permission of the Manager of any money within the

premises of the establishment except as sanctioned by any law for the time being enforce;

(j) Engaging in trade within the premises of the establishment; (k) Drunkness,riotous,disorderly or incident behavior on the premises of the

establishment; (l) Commission of any act subversive of discipline or good behavior on the premises

of the establishment; (m) Habitual neglect of work, or gross or habitual negligence; (n) Habitual breach of any rules or instructions for the maintenance of the cleanliness

of any portion of the establishment; (o) Habitual commission of any or omission for which a fine may be imposed under

the payment of wages Act-1936; (p) Canvassing for union membership the collection of union dues within the premises

of the establishment, except in accordance with any law with the permission of the Manager;

(q) Willful damage to work in processor to any property of establishment; (r) Holding meeting inside the premises of the establishment without the previous

permission of the Manager or except in accordance with the provisions of any law for the time being in force;

(s) Disclosing to any unauthorized person information in regard to the process of the

establishment which may come in to the possession of the workman in the course of his work;



208

(t) Gambling within the premises of the establishment; (u) Smoking or spiting on the premises of the establishment where it is prohibited by

the employer; (v) Failure to observe safety instruction notified by the employer or interference with

any safety device or equipment installed within the establishment; (w) Distributing, exhibiting within the premises of the establishment hand bills,

pamphlets, Posters and such other things or causing to be displayed by means of signs or writing or

other visible representation on any matter without previous sanction of the Manager; (x) Refusal to accept a charge-sheet, order or other communication served in

accordance with the standing order; (y) Unauthorized possession of any lethal weapon in the establishment. Explanation:- No act of misconduct which is committed on less than three occasions

within a space of one year shall be treated as habitual. (25) (1) A workman guilty of misconduct may be:- (a) Warned or censured, or (b) Fined, subject to and in accordance with the provisions of the payment of wages

Act -1936,or (c) Suspended by an order in writing signed by the Manager for a period not

exceeding four days, or (d) Dismissed without notice. (2) No order sub- clause (b) of clause (1) shall be made unless workman concerned Has been informed in writing of the alleged misconduct or given an opportunity to explain

the circumstances alleged against him. (3) No order dismissal under sub clause (d) of clause (1) shall be made except

after holding an enquiry against the workman concerned in respect of the alleged misconduct in the manner set fourth in clause (4).

(4) A workman against whom an enquiry has to be held shall be given a charge-sheet clearly setting forth the circumstances appearing against him and requiring explanation. He shall be given an opportunity to answer the charge and permitted to be defended by a workman working in the same department as himself .Except for reasons to be recorded in writing by the officer holding inquiry, the workman shall be permitted to produce witness in his defence and cross examine any witness on whose evidence lead on either side and the workman plea shall be recorded.

(5) A workman against whom any action is proposed to be taken under sub-clause (b),(c) or (d) of clause (1) may be suspended pending the enquiry or for the period, if any allowed to him for giving his explanation. The order of suspension may take effect immediately on its communication to the workman. If as a results of the enquiry held or



209

explanation tendered, it is decided not to take any action under clause(1) the workman shall be deemed to have been a duty and shall be entitled to fill wages and all privileges for the period of suspension.

(5-A) Subject to the provision s of the payment of Wages Act-1936,a workman who is suspended under clause (5) shall be paid a subsistence allowance during the period of his suspension at such rates as may be fixed by the suspending authority;

Provided the rate so fixed shall not be less than one –third of the basic wages and dearness allowance drawn by the workman immediately prior to his suspension;

Provided further that if it is decided not to take any action against the workman under clause (1) the workman shall be deemed to have been on duty and shall be entitled to full wages minus such subsistence allowance as he has already drawn and to all other privileges for the full period of suspension.

(6) In the awarding punishment under this standing order the manager shall take in to account the gravity of the misconduct, the previous record, if any, of the workman and any other extenuating of the aggravating circumstances that may exist.

(7) if the workman refuses to accept the charge–sheet, order or other communication served in accordance with these standing orders, and provided that he has been asked to accept the charge the charge- sheet in the presence of at least two witnesses he shall be told verbally the time and place at which the enquiry into his alleged misconduct is to be held and if he refuses or fails to attend at that time, the enquiry shall be concluded ex-part and the punishment awarded shall take account of misconduct under standing order 24 thus committed.

(26) A workman may be warned or censured or subject to and in accordance with the provision of the Payment of wages act-1936,fined for any of the following acts and omissions:-

(a) Absence without leave without sufficient cause; (b) Late attendance; (c) Negligence in performing duties; (d) Neglect of work; (e) Absence without leave or without sufficient cause from the appointed

place of work. (f) Entering or leaving or attending to enter or leave the premises of the

establishment expect by a gate or entrance appointed; (g) Committing nuisance in the premises of the establishment; (h) Breach of any rule or instruction for maintenance or running of any

department. (27) The age of retirement or superannuation of the workman be 58 years or such

other age may be agreed upon between the employer and workman by any agreement, settlement or award, which may be binding on the employer and the workman under any law for the time being in force.

(28) (1) Any workman desirous of the redress of a grievance arising out of his employment or relating to unfair treatment of wrongful exaction on the part of a superior shall, either himself or through a trade union of which he is member, submit a complaint to the Manager or any officer appointed by the Manager on this behalf.

(2)The manager or any such officer shall personally investigate the complaint at such times and places as he may fix then workman and –



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(i) Any other workman of his choice, or (ii) Where the complaint is made through a trade union, a member of the Union, shall have the right to be present at such investigation where the Complainant alleges unfair treatment or wrongful exaction on the part Of a superior a copy of the order finally made by the Manager shall be Supplied to the complainant if he asks for one. In the other cases the the decision of the investigating officer and the action, if any taken there on by the Manager shall be intimated to the complainant; Provided that complaints relating to assault or abuse by any person holding a supervisory position or refusal of an application for urgent leave shall be enquired into immediately by the Manager or such other officer Or officers as he may appoint. (29) The decision of the Manager upon any question arising out of, in connection

with, or incident to these Standing Order shall be subject to an appeal to the……*managing agent*.

(30) Every workman other than a casual workman who leaves services or retires, or is dismissed or discharged shall without avoidable delay be given a service certification if he asks for one.

(31) (a) Notice to be exhibited or given under these Standing orders shall be in English and also in the principal regional language of the district in the establishment is situated.

(b) (i) Any notice, charge-sheet, communication or intimation which is Personal, i.e. is meant for an individual workman and is given in Writing under these standing Orders, shall be in the language Understood by the workman concerned. (ii) Before such a notice, order, charge-sheet communication or intimation is handed over to the workman. it shall be read out an explained to him if he so desires. (32) Nothing contained in these standing orders shall operate in derogation of

any law for the time being in force or to the prejudice of any right under a Contract of service, custom or usage or an agreement, settelemnt or award applicable to the establishment.

(1) Miss. Sunitaben vasant bhai Warli. (2) Mrs.Rajeshriben kantibhai Patel (3) Mrs.Bhartiben Rajeshbhai Halpati. (4) Mr.Nilesh Kumar Maganbhai Machhi. (5) Mr. Alpesh Kumar Bhullabhai Mahyabanshi. FOR DAMANGANGA GARMENTS A UNIT OF SUTLEJ TEXTILES & INDUSTRIES LTD.



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SR.V.P.(OPERATIONS) (M.H. AMNDANI) CERTIFYING OFFICER & ASSISTANT COMMISSIONER OF LABOUR VALSAD (GUJARAT STATE)



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h.r. manual & compliance summary by sahdeo singh

Documents

human resource manual

human resource department

human resource management

singh sutlejs

corporate manpower plan

operations manual

human resources department

objective of hr policy