IMPORTANT DUE DATES UNDER DIRECT TAXES

LABOUR LAWS

ActTo whom it applies (Employers)Beneficiaries under the Act (Employees)BenefitsOther Important IssuesPenalties

The Bombay Shops & Establishments Act, 1948a. State of Maharashtra, Local Areas given in Schedule I, Areas where C.P. and Berar and Hyderabad Shops and Establishments Act were applicable before the amending Act of 1960 .

b. Local areas having population more than /less than 25,000 by Notification (Section 1)

c. Any class of establishments or persons by Notification (Section 5) .

Non-applicability :

a. Certain provisions of the Act in Column III of Sch..II to Establishments in Column II (Section 4)

b. Factories to which the Factories Act is applicable. (Section 17).

All employees

MINMUM WAGES TO BE PAID TO EMPLOYEES W.E.F. 20.07.2004

(Basic wage) Skilled:

Rs 3330/- ( Zone I)

Rs. 3230/- ( Zone II)

Rs. 2930/- ( Zone III)

Semi-skilled

Rs 3230/- (Zone I)

Rs. 3130/- (Zone II)

Rs. 2830/- (Zone III)

Unskilled

Rs 3130/- (Zone I)

Rs. 3030/- (Zone II)

Rs. 2730/- (Zone III)

Plus the Special allowance as may be declared by the Government of Maharashtra

a. Right to leave if more than 3 months @ 5 days for 60 days work and 21 days for 240 days work. 26th Jan., 1st May, 15th Aug. and 2nd Oct. are paid holidays. (Section 35 : Rule 11-A).

b. Leave pay @ equal to average daily wage for days actually worked in 3 months (Section 36).

c. Overtime wages @ twice the ordinary rate for additional work. (Section 63). Obligation and liability of employer

a. Change in particulars of establishments to be communicated to inspector with in 15 days for no. of employees and 30 days for other changes. (Section 8: Rule 8: Sch.II: Form E).

b. Closing to be notified within 10 days to inspector (Section 9).

c. Register and other records to be produced on demand. (Section 51).

d. Maintenance of registers and records and display of notices. (Section 62:Rule 20: form H-N) .

e. Notice of termination to be given to employee with service of 3 months to 1 year 14 days (Section 66).

f. Not to permit employee to work when he is on leave/or on holidays. (Section 65).

g. Identity cards to employees in residential hotels etc. (Section 25).

Commercial establishment can be opened not earlier than 8-30 a.m. and closed not later than 9-30 p.m

Limit of overtime work: The maximum limit for working overtime shall not exceed three hours and the employer may, for the purpose of the work beyond the said overtime hours, engage additional number of employees. a. Contravention of certain provisions of the Act for each offence fine from Rs.1000/- to 5000/-.

b. Continued contra-vention of Section 7(1) after 10 days of conviction fine of Rs. 100/- every day.

c. Contravention of Section 12 fine of Rs.1000/- to 5000/-.

d. Employee contra-vening Sections 18 (2), 24, 31 and 65 fine of Rs.500/- to 5000/- for each offence.

e. False entries by employer / manager in Registers etc. fine of Rs.1000/- to 5000/- if both are liable then aggregate fine not to exceed Rs. 5000/-.

f. Commission of offence for which once convicted fine of Rs.1000/- to 5000/- and for third conviction 1000/- to 10,000/-.

g. Penalty for wilful obstruction of Inspector Rs.100/- to 5000/-

Payment of Bonus Act, 1965.

Salary or Wage:

Includes

All remuneration other than overtime, and includes DA, and retention allowance

Does not include:

i. Any other allowance which the employee is for the time being entitled to;

ii. the value of house accommoda-tion or of supply of light, water medical attendance or other amenity or of any service or of any concessional supply of foodgrains or other articles.

iii. Any travelling concession

iv. any Bonus (including incentive, production and attendance Bonus,

v. any contribution paid or payable by employer to any pension fund or PF

vi. Any Retrenchment compensation, Gratuity or Ex gratia payment,

vii. any commission payable to the employee a. Every factory (as defined in Factories Act).

b. Every other establishment in which 20 or more persons (less than 20 but 10 or more if app. Govt. notifies) are employed on any day during the accounting year.

c. Special provisions with respect to certain establishments are provided

Employees other than apprentice

a. Who have worked for more than 30 days in a year.

b. Having salary/wages less than Rs.3,500/-

c. For persons drawing salary between Rs.2,501 and Rs.3,500 per month, bonus will be based on salary of Rs.2,500/- only. a. Subject to Provisions:- Minimum bonus shall be 8.33% of salary/ wages earned or Rs.100 whichever is higher.

b. If allocable surplus as computed under the Act exceeds the amount of minimum bonus, then bonus shall be payable at higher rate subject to a maximum 20% of salary/wages.

c. Customary bonus paid is deductible. a. Computation of Bonus is to be worked out as per Schedule I to IV of the Act.

b. Records in Form No.A, B & C are to be maintained.

c. Annual Return in Form D to be filed.

d. Bonus must be paid in cash.

e. Bonus must be paid within a period of 8 months from the close of accounting year.

Imprisonment up to 6 months and/or fine up to Rs.1,000/-. or both.

Payment of Gratuity Act, 1972.

Wages: Includes:

1. All emoluments earned by the employee while on duty or on leave, including DA,

Does not include;

Bonus, commission, HRA, Over-time and any other allowance.a. Every factory (as defined in Factories Act), mine, oil field, plantations, port and railway company.

b. Every shop or establishment to which Shop & Establishment Act of a state applies in which 10 or more persons are employed on any day of the preceding 12 months.

c. Any establishment employing 10 or more persons as may be notified by the Central Government. a. Any person employed on wages (other than apprentice).

b. At the tine of retirement / resignation/on superannua-tion, an employee should have rendered continuous service of not less than 5 years.

c. In case of death or disablement, the gratuity is payable, even if he has not completed 5 years of service.a. The quantum of gratuity is to be computed at the rate of 15 days wages based on rate of wages last drawn by the employee concerned for every completed year of service or a part thereof exceeding 6 months.

b. The total amount of gratuity payable shall not exceed Rs.3.5 lakhs.

c. In case where higher benefit of gratuity is available under any gratuity scheme, award or agreement, the employee will be entitled to higher benefits.a. Employers other than Central Govt. or State Govt. obliged to obtain an insurance from LIC in prescribed manner for liability for payment of gratuity.

b. Establishments to which Act applies must get registered with the Controlling Authority.

c. Once Act applies, it continues to apply even if employment strength falls below 10.Non payment of Gratuity payable under the Act is punishable with imprison-ment up to 2 years (minimum 6 months) and/or fine up to Rs.20,000. Other contraventions/offences attract imprison-ment upto 1 year and/or fine up to Rs.10,000/-.

Payment of Wages Act, 1936.

Wages

a) Includes :-

i. All remuneration by way of salary or allowance capable of being expressed in terms of money.

ii. Payable under any Award or Settlement,

iii. On account of overtime, holidays, leave, production, attendance bonus etc.,

iv. Payable by reason of termination which does not provide for the time within which the payment is to be made,

v. To which the person employed is entitled under any scheme framed hereunder any law for the time being in force.

b) Does not include

i. Bonus (whether under a scheme of profit sharing or otherwise) which doest form part of remuneration payable under the terms of employment or which is not payable under the Award

ii. Value of house accommodation or of light, water, medical attendance or other amount or of any service excluded from the competition of wages by the Government,

iii. P.F., and Gratuity,

iv. Travelling allowance

v. Any sum paid to defray special expense due to nature of his employment.a. Every person employed in any factory, upon any railway or through sub-contractor in a railway and a person employed in an Industrial or other establishment.

b. The State Government may by notification extend the provision to any class of persons employed in any establishment or class of establishments.

Every person who is employed in any of the above mentioned establishments and who is drawing less than Rs.6,500/- per month. (amended W.e.f. 11.08.2005) The Act provides for

a. Regular and timely payment of wages. Specified day after last day of the wages period in respect of which wages are payable are:

i. 7 days for Railways, Factory, Industrial or other establishment employing less than 1000 workers.

ii. ii) 10 days for other than persons stated in (I) above.

iii. In case of termination of employment, the wages must be paid before the expiry of the second working day from the day of termination.

b. Prevents unauthorised deductions being made from wages and charges of arbitrary fines. a. Wages to be paid in current coin of currency. Written authorisation of employee necessary for payment by cheque /credit to Bank A/c.

b. Deductions cannot exceed 75% of wages for payment to co-op. Societies, and 50% in other cases.

c. Registers/records in Form No.I, II, III. IV to be kept for 3 years from last entry.

d. Annual Return in Form V (in Maharashtra) regarding persons drawing gross wages below Rs.1,000/- p.m. to be filed.

AMENDMENTS

Section 1, sub-section (6): "One thousand six hundred rupees" is amended to "Six thousand five hundred rupees" Penalties are from Rs.500 22,500. Repeat offences attract 1 to 6 months imprisonment

Industrial Disputes Act, 1947

Wages:

Includes: All remuneration capable of being expressed in terms of money like

i. Basic wages, D.A., Value of Free food or food allowance in lieu of whole or part of the wages, overtime, and other allowances,

ii. Value of House Accommodation, supply of light and water, medical attendance or other amenities or any service or of any concessional supply of food grains or other articles,

iii. Value of travelling concession,

iv. any commission payable on promotion of sales or business or both

Does not include:-

i. Any Bonus,

ii. PF, Pension or Gratuity Any industry carried by or under authority of any dept. of Central/State Govt. or local authority or any other industry (excluding any agricultural operations, hospitals/ dispensaries, educational, scientific research or training institutions charitable/social/ philanthropic services, khadi or village industries, activities related to defence, research, atomic energy and space, any domestic services, professional concern and co-op.society/club employing less than 10 persons. Not applicable to dispute arising after closure of the industry. Any person (including apprentice) employed in any industry to do any manual, unskilled, skilled, teaching, operational, clerical, supervisory work for hire, reward and includes any such person who has been dismissed, discharged, retrenched but does not include a person who is employed mainly in managerial or administrative capacity and draws more than Rs.1,600/- p.m. and persons employed in defence/police force. The Act restricts unfair labour practices, prescribed for regulating and governing cases of strikes, lock-outs, lay-off, retrenchment and closure in certain establishments. Consequences of the aforesaid eventualities are provided towards employees as well as employer. The Act deals with Industrial Disputes between employers and employers or between employers and workmen or between workmen and workmen which is connected with the employment or non-employment or terms of employment or with the conditions of labour of any person. Such disputes are dealt by the authorities prescribed under the Act Certain Mandates:

1. Mandatory requirement in case of closure of an undertaking :- a. 60 days notice to the Government for intended closure in Form XXIVB under S. 25FFA if employing more than 50 workmen but less than 100 workmen.

b. Application for prior permission of at least 90 days in Form XXIV-C to the Government when there are 100 or more workmen during preceding 12 months under S.25-O. 2. Mandatory provision concerning retrenchment of workmen, compensation to be paid and other conditions:- a. Workman must have worked for 240 days.

b. Retrenchment compensation @ 15 days wages per every completed year to be calculated on last drawn wages inclusive of allowances.

c. One month notice or wages in lieu thereof.

d. Reasons for retrenchment.

e. Complying with principle of last come first go.

f. Maintenance of seniority list at least 7 days in advance.

g. Sending of notice in Form XXIV to the Secretary, Government of Maharashtra.

3. Notice of change under S.9A:- 21 days notice is required to be given by an employer to the workmen about changing the conditions of service as provided in IV Schedule in Form XXVII.

4. Prior permission for Lay off:- When there are more than 100 workmen during preceding 12 months under S. 25M. 5. Prior permission for Retrenchment :- When there are more than 100 workmen during preceding 12 months under S. 25N. a. Under Sec. 25Q if an employer :- Contravenes the provision of Sec. 25-M (lay off without prior permission of the government) or Sec. 25-N (Retrenchment without Permission etc.) Imprisonment up to one month or fine up to Rs.1,000/-

b. Under Sec.26(2) if any employer comm-ence, continues or otherwise acts in furtherance of an illegal lockout. Imprisonment up to one month or fine up to Rs.1,000/-

c. If any person:- commits an unfair labour practice u/s. 25-T, the fifth ScheduleImprisonment up to six months or fine up to Rs.1,000/-

Minimum Wages Act, 1948.

Wages:

Includes:- All remuneration being expressed in terms of money including HRA does not include:-

i. Value of House Accommodation , supply of light, water, medical attendance,

ii. any other amenity or any service, excluded by an order of the Appropriate Government.

iii. any travelling allowance or any value of travelling concession,

iv. any sum paid to defray special expenses entailed due to nature of employment

v. any Gratuity payable on discharge.Any person who directly or through another person, whether for himself or for any other person employs one or more employees in any scheduled employment in respect of which minimum rates of wages have been fixed under this Act. Any person who is employed for hire/reward to do any work in a scheduled employment and includes an outdoor worker to whom any articles or materials are given for doing some work either at home/any other premises. The Act prescribes the minimum rates of wages payable to employees for different scheduled employment, for different class or work and for adults, adolescents, children and apprentices depending upon different localities, for one or more wage periods; viz. by hour, by the day, month or other large period.a. Its a beneficial legislation and be given widest meaning so long as language is capable of bearing such a construction.

b. Register of Wages to be maintained at workspot in prescribed forms. Such records to be preserved for 3 years from the time of last entry made therein.

c. Normal working day prescribed under the Act is 9 hours. Imprisonment up to 6 months and/or fine up to Rs.500 is imposable for contravention.

Employees Provident Funds and Miscellaneous Provisions Act, 1952.

Basic Wage:-

Includes:-

All emoluments earned while on duty, on leave and holidays),

Does not include:-

Value of food concession, DA, HRA, Overtime allowance, any Bonus, Commission or similar allowance,a. Every establishment which is a factory engaged in any industry specified in Schedule I and in which 20 or more persons are employed and

b. Any other establishment employing 20 or more persons which Central Govt. may, notify (it shall not apply to any other new establishment for a period of 3 years).

c. Any establishment employing even less than 20 can be covered by a specific Central Govt. notification. Any person who is employed for wages in any kind of work of an establishment or employed through contractor in or in connection with the work of an establishment and whose wages do not exceed Rs.6,500/- p.m.. However, an employee covered under the Act will continue to be covered under the Act even if his wages exceed Rs.6,500/- p.m. but will continue to get benefits as if his wages were Rs.6,500/- p.m.Employees covered enjoy a modicum of Social Security in the form of an unattachable, unwithdrawable (except in severely restricted circumstances like buying homes, marriage/death in family etc.) financial nest egg to which employees and employers contribute equally throughout the covered persons employment. This sum is payable normally on retirement or death.a. Once the Act applies it continues to apply even if employment strength falls below 20.

b. Periodical returns have to be filed under the Act.

c. Inspection Note book has to be maintained.

d. The Employees pension scheme 1995 also applies w.e.f. 16.11.1995.Liable to be arrested without warrant being a congnisable offence. Defaults by employer in paying contributions or inspection/administration charge attract imprison-ment upto 3 years and fines upto Rs.10,000/-. If offence is repeated, imprisonment extend to 5 years but not less than 2 years in addition to fine of Rs.25000. For any retrospective application, all dues have to be paid by employer with damages upto 100% of arrears.

The Workmens Compensation Act, 1923.

Wages:-

Includes:-

Any Privilege or benefit which is being capable of estimated in money, other than travelling allowance or the value of travelling concession or a contribution paid by the employer of a workman towards any pension or PF or a sum paid to a workman to cover any special expenses entailed on him by the nature of his employment. Employer includes any person whether incorporated or not and any agent of employer and when services are temporarily lent or let on hire to another person, then means such other person.Any workman who is injured by accident arising out of and in the course of his employment, or any workman, employed in specified list of employment, contracts any disease specified therein as an occupational disease peculiar to that occupation.Amount of compensation payable by the employer will be

a. where death results from injury, 50% of monthly wages x relevant factor or Rs. 80,000/- whichever is more.

b. where permanent total disablement results from injury 60% of monthly wages x relevant factor or Rs.90,000/- whichever is more.

Relevant factor which is dependent upon age of employee, ranges from 228.54 to 99.37.

If the monthly wages are more than Rs.4000/- for the purpose of the above calculation it is restricted to Rs.4000/-.a. Any contract by a worker waiving his right to be compensated under this Act is null and void.

b. The intention of the Legislature and the circumstances under which law was enacted is to be seen. It is interpreted in favour of the weak.

c. Notice book is to be maintained. A statement, report and a return is to be filed when applicable.

d. In case of fatal accident, payment of compensation to the dependent of a workman is to be made through Commissioner of Workmens Compensation.Compensation should be paid early delay beyond 1 month attract interest @ 6% p.a. and penalty of up to 50% of the compensation. Certain other offences attract fine up to Rs.5000/-.

The Employees State Insurance Act, 1948.

Wages :

Includes:

i. All remuneration paid or payable in cash to the employee including payment in respect of period of authorised leave, lock-out, Strike which is not illegal or lay-off

ii. Other additional remuneration paid at interval not exceeding 2 months

Does not Include:

i. Contribution to PF, pension, or Gratuity payable on discharge,

ii. Any travelling allowance or value of any traveling concession,

iii. sums paid to defray special expenses by nature of employment.a. All factories excluding seasonal factories

i. employing 10 or more persons if working with power.

ii. employing 20 or more persons if working without power.

b. Shops employing 20 or more persons.

c. Any establishment specifically notified by the Government.

a. Any person employed for wages (up to Rs.7500/- w.e.f. 1.4.2004) in or in connection with the work of a factory or establishment and

b. Any person who is directly employed by the employer in a factory or through his agent on work which is ordinarily part of the work of the factory or incidental to purpose of the factory.

c. Rate of contribution of the wages :- For employer 4.75% For employee 1.75%

d. Contribution period :- 1st April to 30th September 1st October to 31st March

e. Benefit period 1st January to 30th June/1st July to 31st December

f. Date of submission of return:- 11th November and 12th Maya. The following 6 kinds of benefits are provided under the Act: sickness benefit, maternity benefit, disablement benefit, dependent benefit, medical benefit, funeral expenses. Cannot receive 2 benefits for same period.

b. Free medical treatment is offered to employees at hospital & dispensaries run by ESI Corporation.

c. During sickness, an employee will receive 7/12th of normal wages payable to him.

d. Maternity benefits for 12 weeks of which not more than 6 weeks should be preceding confinement.

e. Injury during/in course of employment resulting in temp./perm. Disablement entitles covered employee to regular pay.

f. Death during the course of employment entitles depen-dents to regular payment

g. 0ne time payment of Rs.2,500/- to help meet funeral expenses. a. Once the Act applies it continues to apply even if employment strength falls below 20.

b. Register of Employees is to be maintained.

c. Reports and Returns have to be filed as applicable.Under S.39(5)(a) if the principal employer does not pay any contribution on the due date:-

Payment of simple interest @ 12% p.a. or higher rate till the date of actual payment. Interest recoverable as arrears of land revenue under Sections 45-C to 45-I

For various offences:An employer may be punished with fine from Rs. 2000/- to Rs.25000/- and/or impri-sonment from 6 months to 5 years.

On failure by an employer to pay his contribution, the ESIC can recover the same as an arrear of land revenue.

The Employees Pension Scheme, 1995. Employees who:

i. have been members of the Employees Pension Scheme, 1977.

ii. on or after 16.11.95 become members of Employees P.F. Scheme, 1952.

iii. who have been members of the Employees P.F. Scheme, 1952 opt to join within 6 months from 16.11.1995.a. Members

b. Heirs will be paid the pension as per the scheme provided in the Rules. a. To members Super-annuation pension, retiring pension or permanent total disablement pension.

b. To heirs widow or widowers pension, children pension or orphan pension. As per the scheme provided in the rules. Beneficial Legislation.Imprisonment up to one year. Fine up to Rs.5000 or both for the defaulter.

Important Dates for Employers to remember for making Statutory Deductions and for filing Returns under various Labour LawsName of the Act Date

P.F. Act

Pay P.F. Deductions Before 15th of the following month.

Submit monthly returnsBefore 25th of the following month.

ESI Act

Make paymentBefore 21st of the following month.

Professions Tax Act

Employers to submit Form III & Pay tax

Deducted from employees wagesBefore month end

Maternity Benefit Act

Submit Return in Form XIBefore 15th of the following month.

I.D. Act

Submit Return in Form XVBefore 21st Jan.

Employment Exchanges Act

Submit Return in Form ER/1 Before 31st Jan.

Contract Labour Act

Submit Annual Return in Form XXBefore 31st Jan.

Factories Act

Submit Annual Return in Form 27Before 1st Feb.

Workmens Compensation Act

Submit Annual ReturnBefore 1st Feb.

The Payment of Wages Act

Submit Return in Form VBefore 15th Jan.