| Act |
To whom it Applies ($Employers) |
Beneficiaries under the Act(Employees) |
Benefits |
Other Important issues |
Penalty |
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Payment of Bonus Act, 1965
Salary or wage :
includes
All remuneration other than overtime and includes DA, and
retention allowances
Does not include :
i) any other allowance which the employee is for the
time being entitled to
ii) the value of house accommodation 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.
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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
d) Employees employed through contractors on building operation
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Employees other than apprentice
a) Who have worked not less than 30 days in an
accounting year.
b) Having salary/wages less than
` 10,000/-
per month
c) For persons drawing salary between
` 3,500/-
and
`
10,000/- per month, bonus will be based on salary of
`
3,500/- per month only.
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a) Subject to provisions:- Minimum bonus shall be 8.33%
of salary /wages earned or Rs. 100 whichever is higher .
b ) 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.
c) Customary bonus paid is deductible.
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a) Computation of bonus is to be worked out as per
Schedules I to IV of the Act.
b) Records in Form Nos. ‘A’, ‘B’ & C’ are to be
maintained.
c) Annual Return in Form ‘D’ to be filed.
d) Bonus must be paid within a period of 8 months from the close of
accounting year.
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Imprisonment up to 6 months and / or fine up to
` 1,000/-
or both
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Payment of Gratuity Act, 1972
Wages
Includes :
i) All emoluments earned by the employee while on duty
or on leave including DA,
Does not include :
Bonus, Commission, HRA, overtime and any other allowance.
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a) Every factory (as defined in Factories Act) mine,
oil field, plantation, port and railway company.
b) 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.
c) Any establishment employing 10 or more persons as may be notified by
the Central Government.
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a) Any person employed on wages (other than apprentice)
b) At the time of retirement/ resignation on
superannuation, 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.
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a) Any person employed on wages (other than apprentice)
b) At the time of retirement/ resignation on
superannuation, 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) Any person
employed on wages (other than apprentice)
b) At the time of retirement/ resignation on
superannuation, an
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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.
d) Calculation of Gratuity Monthly salary / 26 x 15 days x No. of years
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Non payment of Gratuity payable under the Act
is punishable with imprisonment up to 2 years (minimum 6 months) and / or
fine up to `
20,000/- Other contraventions / offences attract imprisonment up to
1 year and / or fine up to
`
10,000/-. Or both.
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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
allowances 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
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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
domestic services, professional concern and co-op. society/club employing
less than 10 persons. Not applicable to dispute arising after closure of
the industry.
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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, discharged, retrenched but does not include a person
who is employed mainly in managerial or administrative capacity and draws
more than `
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).
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The Act restricts unfair labour practices, prescribed for
regulating and governing cases of strikes, lock-out, lay-off, retrenchment
and closure in certain establishments. Consequences of the aforesaid
eventualities are provided towards employees as well as employer.
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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.
Certain mandates :
1) Mandatory requirement in case of closure of an undertaking
:—
a) 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
b) 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
2) Mandatory provision concerning retrenchment of workmen,
compensation to be paid and other conditions:
a) worman 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) Days wage worked taking 26 not 30 days
d) One month notice or wages in lieu thereof
e) Reasons for retrenchment
f) Complying with principle of ‘last come first go’
g) Maintenance of seniority list at least 7 days in
advance.
h) 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 Permisssion 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
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a) Under Sec. 25Q if an employer:
Contravenes 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 and/or fine
up to Rs. 1000/-.
b) Under section 26(2) if any employer commence
continues or otherwise acts in furtherance of an illegal lockout.
Imprisonment up to one month and/or fine up to
`
1000/-.
c) If any person commits
an unfair labour practice u/s. 25T, the Fifth Schedule Imprisonment up to
six months and/or fine up to `
1,000/-.
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Employees Provident Funds and Miscellaneous Provisions Act,
1952
Bacis wages :-
Includes :-
All emoluments earned while on duty on leave and holidays)
Does not include :-
Value of food consession, DA, HRA, overtime allowance,
any Bonus, Commission or similar allowance. contribution is payable on D. A.
also as per sec. 6 of the Act
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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, whom Central Govt. may, notify.
c) Any establishment employing even less than 20 can be covered by a
specific Central Govt. notification.
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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
` 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 `
6,500/- p.m.
In case of International workers PF is applicabale on entire salary. As
per notification dated 1st Oct., 2008.
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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
This sum is payable normally on retirement or death
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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
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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
`
10,000/-. If offence is repeated, imprisonment extend to 5 years but not
less than 2 years in addition to fine of
` 25,000/-
For any retrospective application, all dues have to be paid by employer with
damages up to 100% of arrears.
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The Employees
Compensation Act, 1923
Wages :-
Wages Include:
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.
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a) 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.
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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.
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Amount of compensation payable by the employer will be
a) Where death results from injury, 50% of monthly
Wages [if monthly Wages > `
8000/- p.m. cap of
`
8000/-(2012)] x relevant factor or
`
1,20,000/- whichever is more.
b) Where permanent total disablement results from
injury 60% of monthly Wages [if monthly Wages >
` 8000/- p.m.
cap of
` 8000/-
(2012)] x relevant factor or
`
1,40,000/- whichever is more
c) Relevant factor, which is
dependent upon age of employee, ranges from 228.54 to 99.37.
With effect from 18-1-2010
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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 Workmen’s
Compensation
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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
` 5,000/-.
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The Employees’ State
Insurance Act, 1948
Wages :
include :
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 allowances or value of any
travelling concession,
iii) Sums to be defray special expenses by nature of employment.
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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 specially notified by the Government.
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a ) Any person employed for wages (up to
` 15,000/- p.m.
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:- within 42 days from the end of
contribution period.
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a) The following benefits are provided Sickness
benefit, maternity, disablement, dependent, medical, and funeral expenses
Rehabilitation allowance Cannot receive 2 benefits for same period.
b) Free medical treatment is offered. to employees
and his family at hospital & dispensaries run by ESI Corporation
c) During sickness, an employee will receive wages
as per standard benefit rate shown in the table.
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. / permanent disablement entitles covered employee to regular pay.
f) Death during the course of employment entitles
dependents to regular payment
g) One time payment of
` 5,000/- to
help meet funeral expenses
h) Unemployment allowance to a member who has
contributed minimum period of 5 years prior to loss of employment.
i) Payable till re-employed elsewhere (maximum 12 months period)
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a) Once the Act applies it continues to apply even if
employment strength falls below 20 /10
b) Register of employees is to be maintained Form 6
(Regulation 32)
c) 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.
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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 `
2,000/- to
` 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.
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The Employees' Pension Scheme, 1995
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Employees who :
-
have been members of the Employees‘ Pension Scheme,
1971.
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On or after 16.11.95 become members of employees P.F. Scheme, 1952.
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who have been members of the Employees P. F.
Scheme, 1952 opt to join within 6 months from 16.11.1995.
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-
Members
- Heirs will be paid the pension as per the Scheme provided in the
Rules.
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-
To members - Superannuation pension, retiring
pension or permanent total disablement pension.
- To heirs - widow or widowers pension, children pension or orphan
pension. Guardian pension, Nominee pension as per the scheme provided
in the rules.
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Beneficial Legislation
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Imprisonment up to one year. Fine up to
` 5,000/- or both
for the defaulter.
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Minimum Wages Act, 1948
Wages :
Includes :-
All remuneration being expressed in terms
of money including
HRA - Does Not Include :-
-
Value of House Accommodation supply of light, water,
medical attendance.
-
any other amenity or any service,
excluded by an order of the Appropriate Government.
-
any travelling allowance or any value of travelling concession.
-
any sum paid to defray special
expenses entitled due to nature of employment
- any Gratuity payable on discharge
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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.
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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.
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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.
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-
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.
- Normal working day prescribed under the Act is 9 hours.
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Imprisonment up to 5 years and / or fine up to
`
10,000/- is imposable for contravention or both
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Payment of Wages Act, 1936
Wages
a ) Includes :-
-
All remuneration by way of salary or allowance
capable of being expressed in terms of money.
- Payable under any Award or Settlement.
-
On account of overtime, holidays, leave,
production, attendance, bonus etc.
-
Payable by reason of termination which does not
provide for the time within which the payment is to be made.
-
To which the person employed is entitled under any
scheme framed hereunder any law for the time being in force.
b ) Does Not Include
-
Bonus (whether under a scheme of profit sharing or
otherwise) which doesn’t form part of remuneration payable under the terms
of employment or which is not payable under the Award
-
Value of house accommodation or of light, water,
medical attendance or other amount or of any services excluded from the
competition of wages by the Government.
-
P. F. and Gratuity
-
Travelling allowance
-
Any sum paid to defray special expense due to nature
of his employment
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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 persons employed in any establishment or class of establishments.
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Every person who is employed in any of the
above-mentioned etablishments and who is drawing less than
` 18,000/-
per month. (Vide Notification No. SO2260(E) dt. 11-9-2012)
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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 :
-
7 days for Railways, Factory, Industrial or other
establishment employing less than 1,000 workers
- 10 days for other than persons stated in (I) above
-
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.
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-
Wages to be paid in current coin of currency.
Written authorisation of employee necessary for payment by cheque /credit
to Bank A/c.
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Deductions cannot exceed 75% of wages for payment to
co-op.
Societies, and 50% in other cases.
- 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).
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Penalties are from
` 1,000/-
to `
22,500/- Repeat offences attract 1 to 6 months imprisonment
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The Bombay Shops & Establishments Act, 1948
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-
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.
-
Local areas having population more than/less than
25,000 by Notification (Section 1)
- Any class of establishment or persons by Notification (Section 5 )
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 –
(i) who is employed in a managerial capacity;
(ii) who being employed in a supervisory city, draws wages
exceeding three thousand five hundred 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,
(iii) who is employed as an apprentice under the
Apprentices Act, 1961 (52 of 1961).
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All Employees including apprentices and contract labour.
Minimum wages to be paid as per Notification issued by
Commissioner of Labour, published in Maharashtra Government Gazette.
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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).
-
Leave pay @ equal to average daily wage for days
actually worked in 3 months (Section 36).
- Overtime wages @ twice the
ordinary rate for additional work. (Section 63 ).
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Obligation and liability of
employer
-
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 )
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Closing to be notified within 10 days to inspector
(Section 9)
- Register and other records
to be produced on demand
(Section 51).
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Contravention of certain provisions of the Act -
for each offence – fine from `
1,000/- to
` 5,000/-
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Continued contravention of Section 7(1) after 10
days of conviction – fine of `
100/- every day.
- Contravention of Section 12 – fine of
` 1,000/- to
` 5,000/-
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