ppt on statutory compliances for hr

7/31/2019 PPT on Statutory Compliances for HR

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Meaning-:Statutory means "of or related to statutes," or what we normallycall laws or regulations. Compliance just means to comply withor adhere to. So statutory compliance means you are followingthe laws on a given issue.

The term is most often used with organizations, who mustfollow lots of regulations.

When they forget or refuse to follow some of those regulations,they are out of statutory compliance. A company that follows allthe rules, is in statutory compliance.

Purpose-:Safeguarding the employees and the enterprise from untowardrisks by managing and consulting on issues such as retirementbenefits and Taxation


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ESI

Provident Fund

Profession Tax

Gratuity

The Minimum Wages Act

The Maternity Benefit Act

The Payment Of Bonus Act

The Payment Of Wages Act


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Was originally applicable to non-seasonal factories using power andemploying 20 or more persons; but it is now applicable to non-seasonal powerusing factories employing 10 or more persons and non-power using factoriesemploying 20 or more persons

All the employees in the factories or establishments to which the Act appliesshall be insured under this Act

The contribution comprise of employers contribution and employeescontribution at a specified rate

Contribution rate : 1.75% - employees

4.75% -employers

The ceiling 10,000/- gross salary. After reaching the ceiling one will beexempted. (with effect from 1.10.2006)

Employer is liable to contribute & deduct specified rate of amount and submitit to the Corporation within 21 days.

Two contribution periods each of six months:

1st April to 30th Sept

1st Oct. to 31st March

Two corresponding benefit periods of six months :

1st January to 30th June1st July to 31st December


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PF and Miscellaneous Provisions Act, provides for compulsorycontributory fund for the future of an employee after his retirement orfor his dependents in case of his early death

It extends to the whole of India except the State of J&K

Every factory engaged in any industry specified in Schedule 1 in which20 or more persons are employed

Every other establishment employing 20 or more persons or class of suchestablishments which the Central Govt. may notify and any otherestablishment so notified by the Central Government even if employing

less than 20 persons

PF is contributed from both the sides @12% of the basic salary.Contribution for the purpose of Employees' pension Scheme is8.33% of (12% of employers contribution towards PF) or Rs.540/- whichever is less, will be transferred to Employees pension scheme and the

balance amount will go towards Employee PF.


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Professional tax or employment tax is a state-based tax. It is allowed as adeduction from the gross income before computing the tax.

Duration of deduction is half year-

1st day of April to 30th September

1st day of October to the 31stMarch of a year.

PT is deducted slab wise-1 to 2500-nil

2500 to 3500 -Rs 60

3501 to 5000 - Rs 120

5001 to 10000- Rs 175

and above 10000 Rs 200 per month except Rs 300 in the month of february

Each and every employee receiving pay from the revenue of the CentralGovernment or any State Government is entitled to pay profession tax

Any organization whether incorporated or not, which is owned orcontrolled by the Central Government or any State Government is eligibleto pay PT


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This act provides for fixing minimum rates of wages.Wages shall mean all remuneration payable to an employed person on the fulfillment ofthe contract employment and includes HRA.

It Includes(i) a basic rate of wages and special allowance call the cost of living allowance(ii) a basic rate with or without cost of living allowance plus any concession on the

supply of essential commodities.It excludes(i) The value of rent free accommodation, supply of light, water, medical .....(ii) Contributions paid by the employer towards the PF or any scheme of socialinsurance(iii) Travelling allowance / Travelling concession(iv) Gratuity

The appropriate government may fix-:

A minimum rate of wages for time work ("a minimum time rate").

A minimum rates of wages for piece work ("a minimum piece rate").

A minimum rate of wages on a time work basis ("a guaranteed time rate")

A minimum rate of overtime work done (a overtime rate")


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Penalty:-

The inspectorate staff of the Labour Department takes action on complaints receivedfrom workmen/Unions.

The penalty for violation of is fine of R.500/- or imprisonment upto a period of sixmonths or both.

If a worker gets less payment, he can also file a claim before the Competent Authorityappointed under the Act, which are Deputy Labour Commissioners for the respectivedistricts.

The authority can impose penalty up to 10 times the difference in minimum wages thatwas due and paid


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To regulate employment of women for certain periods before and afterchild birth and to provide for maternity benefit.

Payment of maternity benefit shall apply to women workers to whomESI Act does not apply.

The Act applies to all establishments in which ten or more people are

employed.The maternity benefit shall be at the rate of average daily wage for theperiod of actual absence. The maximum period of entitlement shall be12 weeks of which not less than 6 weeks shall precede the expected dateof delivery.

Maternity benefit shall be payable to employee or any other persons asper the nomination.

The Amount of benefit upto the period of expected delivery shall bepaid in advance. The balance due for the subsequent period shall bepaid within 48 hours from delivery of child.


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The Payment of Bonus Act imposes statutory liability upon theemployers of every establishment covered under the Act to pay bonusto their employees.

It provides for payment of minimum and maximum bonus and linkingthe payment of bonus with the production and productivity.

The Act applies to every factory where 10 or more workers are workingand every other establishment in which 20 or more persons areemployed, on any day during an accounting year

Every employee receiving salary or wages upto RS. 3,500 p.m. andengaged in any kind of work whether skilled, unskilled, managerial,supervisory etc. is entitled to bonus for every accounting year if he hasworked for at least 30 working days in that year

Penalty

The punishment provided for contravention of any provisions of theAct or any rule made there under is imprisonment for a term, whichmay extend for 6 months or with fine, which may extend to Rs. 1000/- or

with both.


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The present day legal climate is one ofuncertainty and confusion. In most cases, alaw comes to light only after its

contravention, resulting in severe penalties.Statutory Compliances is a must in keepingyou away from the long arm of the law!

ppt on statutory compliances for hr

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