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

1. any other allowance which the employee is for the time being entitled to

2. the value of house accommodation or of supply of light, water medical attendance or other ammenity or of any service or of any concessional supply of foodgrains or other articles.

3. any travelling concession

4. any Bonus (including incentive, production and attendance Bonus)

5. any contribution paid or payable by empoyer to any pension fund or PF

6. any retenchment compensation Gratuity or Ex gratia payment

7. any commission payable to the employee.

1. Every factory (as defined in Factories Act).

2. 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.

3. Special provisions with respect to certain establishments are provided

4. Employees employed through contractors on building operation.

Employees other than apprentice

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

2. Having salary/wages less than Rs. 10,000/-

3. For persons drawing salary between Rs. 3,500/- and
   Rs. 10,000/- per month, bonus will be based on salary of Rs. 3,500/- per month only.

1. Subject to provisions:- Minimum bonus shall be 8.33% of salary /wages earned or Rs. 100 whichever is higher .

2. If allocable suplus 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.

3. Customary bonus paid is deductible.

1. Computation of bonus is to be worked out as per schedules I to IV of the Act.

2. Records in Form Nos. ‘A’, ‘B’ & C’ are to be maintained.

3. Annual Return in Form ‘D’ to be filed.

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

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

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

1. Every factory (as defined in Factories Act) mine, oil field, plantation, port and railway company.

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

3. Any establishment employing 10 or more persons as may be notified by the Central Government.

1. Any person employed on wages (other than apprentice)

2. At the time of retirement/ resignation on superannuation, an employee should have rendered continuous service of not less than 5 years.

3. In case of death or disablement, the gratuity is payable even if he has not completed 5 years of service.

1. The quantum of gratuity is to be computed at the rate of 15 days wages based on the rate of wages last drawn by the employee concerned for every completed year of service or a part thereof 6 months.

2. The total amount of gratuity payable shall not exceed Rs. 10 lakhs. W.e.f. 24-5-2010

3. In case where higher benefit of gratuity is available under any gratuity scheme award or agreement, the employee will be entitled to higher benefits.

1. Employers other than Central Govt. or state Govt. obliged to obtain an insurance from LIC in prescribed manner for liability for payment of gratuity.

2. Establishments to which act applies must get registered with the controling Authority.

3. Once Act applies,it continues to apply even if employment strength falls below 10.

4. Calculation of Gratuity Monthly salary / 26 x 15 days x No. of years

Non payment of Gratuity payable under the Act
is punishable with imprisonment up to 2 years (minimum 6 months) and / or fine up to Rs. 20,000/- Other contraventions / offences attract imprisonment up to
1 year and / or fine up to 10,000/-. Or both.

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

1. Basic wages, D.A. value of free food or food allowances in lieu of whole or part of the wages, overtime, and other allowances,

2. 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,

3. Value of travelling concession,

4. Any commission payable on promotion of sales or business or both.

1. Any Bonus

2. 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 automic energy and space any domeshtic 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 persons who has been dismissed, discharge, retrenched but does not include a person who is employed mainly in managerial or administrative capacity and draws more than Rs.10,000/-p.m. (Amended w.e.f. 15-9-2010) and persons employed in defence /police force. (Amended w.e.f. 26.6.2006).

The Act restricts unfair labour practices, prescribed for regulating and governing cases of strikes, lock-out, lay-off, retrenchment and closure in certain establishments. Consequenses 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.

Establishment of Grievance Redressal Machinery in every Industrial Establishment employing 20 or more workmen.

1. 60 days notice to the Government for intended closure in Form No. XXIV-B under Sec. 25FFA if employing more than 50 workmen but less than 100 workmen

2. Application for prior permission of at least 90 days in Form
   XXIV-C to the Govt. when there are 100 or more workmen during preceding 12 months under
   S 25-O

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.

When there are more than 100 workmen during preceding 12 months under S. 25M

When there are more than 100 workmen during preceding 12 months under S. 25N

1. Under Sec. 25Q if an employer:

Contravens the provision of Sec. 25M (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. 1000/-

2. Under section 26 (2) if any employer commence continues or otherwise acts in furtherance of an illegal lockout.

Imprisonment up to one month or fine up to Rs.1000/-

3. If any person commits
   an unfair labour practice u/s. 25T, the Fifth Schedule Imprisonment up to six months or fine up to Rs.1,000/-

All emoluments earned while on duty on leave and holidays)

1. Every establishment which is a factory engaged in any industry specified in Schedule I and in which 20 or more persons are employed and

2. Any other establishment employing 20 or more persons, whom Central Govt. may, notify.

3. 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 person’s employment

1. Once the Act applies it continues to apply even if employment strength falls below 20.

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

3. Inspection Note book has to be maintained.

4. 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 imprisonment up to 3 years and fines up to
Rs. 10,000/-. If offence is repeated, imprisonment extend to 5 years but not less than 2 years in addition to fine of Rs. 25,000/- For any retrospective application, all dues have to be paid by employer with damages up to 100% of arrears.

1. 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

1. Where death results from injury, 50% of monthly Wages x relevant factor or Rs. 1,20,000/- whichever is more.

2. Where permanent total disablement results from injury 60% of monthly Wages x relevant factor or Rs. 1,40,000/- whichever is more

3. Relevant factor, which is dependent upon age of employee, ranges from 228.54 to 99.37.
   With effect from 18-1-2010

1. Any contract by a worker waiving his right to be compensated under this Act is null and void.

2. 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.

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

4. In case of fatal accident, payment of compensation to the dependent of a workman is to be made through Commissioner of Workmen’s Compensation

Compensation should be paid early – delay beyond 1 month attract interest @ 12% p.a. and penalty of up to 50% of the compensation. Certain other offences attract fine up to Rs. 5,000/-.

include :

1. 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

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

1. Contribution to PF, Pension or Gratuity payable on discharge,

2. Any travelling allowances or value of any travelling concession,

3. Sums to be defray special expenses by nature of employment.

1. All factories excluding seasonal factories

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

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

2. Shops employing 20 or more persons.

3. Any establishment specially notified by the Government.

1. Any person employed for wages (up to Rs.15,000/- w.e.f. 1.5.2010) in or in connection with the work of a factory or establishment and

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

3. Rate of contribution of the wages:

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

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

6. Date of submission of return :- within 42 days from the end of contribution period.

1. The following benefits are provided Sickness benefit, maternity, disablement, dependent, medical, and funeral expenses Rehabilitation allowance Cannot receive 2 benefits for same period.

2. Free medical treatment is offered. to employees and his family at hospital & dispensaries run by ESI Corporation

3. During sickness, an employee will receive wages as per standard benefit rate shown in the table.

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

5. Injury during / in course of employment resulting in temp. / permanent disablement entitles covered employee to regular pay.

6. Death during the course of employment entitles dependents to regular payment

7. One time payment of Rs. 5,000/- to help meet funeral expenses

8. Unemployment allowance to a member who has contributed minimum period of 5 years prior to loss of employment.

9. Payable till re-employed elsewhere (maximum 12 months period)

1. Once the Act applies it continues to apply even if employment strength falls below 20 /10

2. Register of employees is to be maintained Form 6 (Regulation 32)

3. Reports and Returns have to be filled as applicable.

As per notification dated 11.03.2008 employer employing 40 and more employees have to append a certificied by C.A in revised format of return. In case of below 40 employees certificate by employer.

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 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. 2,000/- to
Rs. 25,000/- and / or imprisonment 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.

Employees who :

1. have been members of the Employees Pension Scheme, 1971.

2. On or after 16.11.95 become members of employees P.F. Scheme, 1952.

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

1. Members

2. Heirs will be paid the pension as per the Scheme provided in the Rules.

1. To members - Superannuation pension, retiring pension or permanent total disablement pension.

2. To heirs - widow or widowers pension, children pension or orphan pension. Guardian pension, Nominee pension as per the scheme provided in the rules.

Beneficial Legislation

Imprisonment up to one year. Fine up to Rs. 5,000/- or both for the defaulter.

Includes :- All remuneration being expressed in terms of money including

HRA - Does Not Include :-

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

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

3. any travelling allowance or any value of travelling concession.

4. any sum paid to defray special expenses entitled due to nature of employment

5. any Gratuity payable on discharge

Any person who employs directly or through another person, whether for himself or for any other person employees 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.

1. 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.

2. Normal working day prescribed under the Act is 9 hours.

Imprisonment up to 5 years and / or fine up to Rs. 10,000/- is imposable for contravention or both

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

2. Payable under any Award or Settlement.

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

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

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

1. 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

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

Every person who is employed in any of the above mentioned etablishments and who is drawing less than
Rs. 10,000/- per month. (Amended w.e.f. 8.8.2007)

The Act provides for –

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

1. 7 days for Railways, Factory, Industrial or other establishment employing less than 1,000 workers

2. 10 days for other than persons stated in (I) above

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

2. Prevents unauthorised deductions being made from wages and charges of arbitrary fines.

1. Wages to be paid in current coin of currency. Written authorisation of employee necessary for payment by cheque /credit to Bank A/c.

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

3. Registers/records in Form Nos. I, II, III & IV to be kept for 3 years from last entry (If muster role cum wage register in Form
   No. II as per Maharashtra Minimum Wages Rule is maintained the above registers are not required to be maintained).

Section 1, sub-section (6 ): "One thousand six hundred rupees" is amended to "Six thousand five hundred rupees"

Penalties are from Rs.1,000/- to Rs. 22,500/- Repeat offences attract 1 to 6 months imprisonment

1. State of Maharashtra, Local Areas given in Schedule I, Areas where C.P. and Berar and Hyderabad Shops and Establisments Act were applicable before the amending Act of 1960.

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

3. Any class of establishment or persons by Notification (Section 5 )

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

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

Rs. 5,800/- ( Zone I )
Rs. 5,500/- ( Zone II )
Rs. 5,200/- ( Zone III )

Rs. 5,400/- ( Zone I )
Rs. 5,100/- ( Zone II )
Rs. 4,800/- ( Zone III )

Rs. 5,000/- ( Zone I )
Rs. 4,700/- ( Zone II )
Rs. 4,400/- ( Zone III )

Plus the Special allowance as may be declared by the Government of Maharashtra Special Allowance from 1-1-2011 to 30-6-2011.

Rs. 490.40 for all categories and all Zones.

1. 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 II - A ).

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

3. Overtime wages @ twice the ordinary rate for additional work. ( Section 63 ).

1. Change in particular of establishments to be communicated to inspector within 15 days for No. of employees and 30 days for other changes. ( Section 8 : Rule 8 : Sch II : Form E )

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

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

4. Maintanance of registers and records and display of notice.
   (Section 62 : Rule 20 : Form H-N)

5. For termination 30 days notice or wages in lieu of such notice who has completed 1 year or more and 14 days notice or wage in lieu of such notice who has completed 3 months or more.

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

7. 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.

1. Contravention of certain provisions of the Act - for each offence – fine from Rs.1,000 /- to 5,000 /-

2. Continued contravention of Section 7(1) after 10 days of conviction – fine of Rs. 100/- every day.

3. Contravention of Section 12 – fine of Rs. 1,000/- to Rs. 5,000/-

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

5. False entries by employer / manager in Registers etc. – fine of Rs.1,000/- to Rs. 5,000/- if both are liable then aggregate fine not to exceed Rs. 5,000/-.

6. Commission of offence for which once convicted - fine of Rs.1,000/- to Rs.5,000/-and for third conviction
   Rs. 1,000/- to Rs. 10,000/-.

7. Penalty for wilful obstruction of Inspector Rs. 100/- to Rs. 5,000/-.

Wages means Wages as defined in Sec. 2(vi) of the Payment of Wages Act, 1936 (4 of 936) and includes Bonus payable under The Payment of Bonus Act, 1952 (21 of 1965)

(Every factory as Defined in Factories Act)

Any establishment within the meaning of the Bombay Shops and Establishments Act, 1948 (Bom. LXXIX of 1948) which employs, or on working day during the preceding twelve months, employed five or more persons (including the Establishments which have been granted exemption partly or wholly under the proviso to section 4 of the Act.

Person who is employed for hire or reward to do any work skilled or unskilled manual, clerical, supervisory or technical in an establishment directly by the employer or through contractor or any other agency, but does not include any person –

1. who is employed in a managerial capacity;

2. who being employed in a supervisory city, draws wages exceeding three thousand rupees per mensem. or exercises powers Or carries out, either by the nature of the duties attached to the office, or by reason of the powers vested in him, functions mainly of a managerial nature or,

3. who is employed as an apprentice under the Apprentices Act, 1961 (52 of 1961).

All employees where the number is more than 5.

The amount so collected will be deposited with the Board on the 15th day of July and 15th day of January, as the case may be.

If an employee does not pay to the Board any amount of unpaid accumulations, or fines realized from the employees (for the amount of the employer’s and employees contributions under sec.6BB) within the time he is required by or under the provisions of this Act to pay it, the Welfare Commissioner may cause to be served a notice on such employer to the amount within the period specified- therein, which shall not be less than 30 days from the date of service of such notice.

Any sum payable (to the Board or) into the under this Act shall, without prejudice to other mode of recovery, or be recoverable on behalf of the Board as an arrear of Revenue.