The Maharashtra Shops and Establishments Act, 1948 regulates the condition of work and employment in shops, commercial establishment, residential hotels, restaurants, eating houses, theatres, other places of public amusement or entertainment and other establishments. S&E Act mandatorily requires every establishments covered under this Act to obtain Registration Certificate.

Applicability

The Act is applicable to local areas, specified in Schedule I in the State of Maharashtra.

Coverage

The Act, through various provisions makes it clear that it is applicable to Shops and Commercial establishments, residential hotels restaurants eating hotels , theatres or other places of public amusement and entertainment located in such local areas as may be notified

Registration

Every establishment shall send to the Inspector of the local area concerned a statement, in a prescribed Form A, together with such fees, within 30 days from the date of commencement of work .

1) Approval of Factory Building plan and machinery layout from Director Industrial Safety and Health, Inspection, Settlement of accident etc.

2) Guidance in preparation of:

• leave with wages register
• Leave Cards of individual Employee
• Register of adult and child workers
• Accident Register
• Report of Accident in Form No.24 A
• Notice of poisoning of disease
• Medical examination of workers
• Obtaining testing Reports of compressor, chain-pullies, hoist, boiler, lifting tackles, Machines, ropes, Report of examination of gas-holder from competent person
• Obtaining Building Stability Certificate from Competent Authority
• Reply of inspection remarks of factory Inspector
• Renewal of Factory License, Annual Return etc.

The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 is an important legislation which plays a significant role in the sphere of Labour Law. The Act came into existence in 1952 which assures essential Provident Fund, Employees Pension Scheme and Deposit Linked Insurance in factories and other establishments for the benefits of employees. This brief covers, Applicability, Eligibility, PF Contributions and other relevant provisions that are key to EPF Act

Applicability

• Applies to establishment/factory in Schedule I, employing 20 or more person [Section 1(3)(a)]
• The Central Government by notification may apply it to establishments employing 20 or more person [Section 1(3)(b)]
• By agreement between the employer and the employees [Section 14]
• Continues to apply to the establishment even if number falls below 20 [Section 1(5)]
• Central Government can also apply by notification to establishments employing less than 20 employees [Proviso to Sect5ion 1(3)]

Eligibility

Any person who is employed for work of an establishment or employed through contractor in or in connection with the work of an establishment

Benefits

• Employees covered enjoy a benefit of Social Security in the form of an unattachable and unwithdrawable (except in severely restricted circumstances like buying house, marriage/education, etc.) financial nest/egg to which employees and employer contribute equally throughout the covered persons' employment.
• The sum is normally payable on retirement or death.
• Other benefits includes employees' Pension Schemes and Employees' Deposite Linked Insurance Scheme.

Payment Of Contribution

• The employer shall pay the contribution payable to the Employees' Pension Fund in respect of the member of the Employees' Pension Fund employed by him directly or by or through a contractor.
• It shall be the responsibility of the principal employer to pay the contributions Payable to the Employees' Pension Fund by himself in respect of the employees directly employed by him and also in respect of the employees employed by or through a contractor

Interest

Employer liable to pay 12% simple interest or higher rate on amount due from due date till payment

Damages

Can be recovered under Section 14B for the default in paying the contribution as specified para 32A

PERIODS	RATE %
Less than 2 months	5
2 months and above but less than 4 months	10
4 months and above but less than 6 months	15
6 months and above but less than 6 months	25

Non-Applicability Establishments

• Registered under the Co-operative Society's Act or any relating law employing less than 50 persons.
• Belonging or under the Government's Control whose employees entitled to benefits as per the Government's Rule or Scheme.

The Employees' State Insurance Act, 1948 is devised so as to provide social protection to workers in contingencies such as illness, long term sickness or any other health risk due to exposure to employment injury or occupational hazards. ESI Act is the first of its kind in India as it introduces the compulsory insurance of a specified class of wage earners against certain inevitable risk and to uphold the human dignity of fellow feelings in contingencies, such as death, disease or physical disability. Employees' State Insurance Corporation i.e. ESIC is a Government body formed by the Ministry of Labour and Employment, India which dedicatedly operates under this Act.

Applicablity

• This Act is extended in area wise to factories using power and employing 10 or more persons and non-power using manufacturing units and establishments employing 20 or more person upto Rs 21,000.00 per month w.e.f. 1st January 2017.
• It has also been extended upon shops, hotel, restaurants, roads, motor transport undertaking, equipment maintenance staff in hospitals.
• The factories and establishments shall continue to be administered by this Act despite the number of persons employed therein at any time falls below the aforesaid limit.
• Employees employed by a contractor are directly covered under ESI Act and the Schemes thereto.

Coverage

The ESI Act covers employees earning wages upto Rs. 21000.00 per month, engaged either directly or through contractor

Benefit

Therapeutic, sickness, extended illness for certain disease, enhanced sickness, old age care dependents, maternity, beside funeral expenses, rehabilitation allowance, medical advantage to insured person and his or her spouse, medical bonus & Physical Aids.

Rate Of Contribution Of The Wages

• Employers' 4.75%
• Employees' 1.75%

Contribution Period

• 1st April to 30th September
• 1st October to 31st March

Manner And Time Limit For Making Payment Of Contribution

The total amount of contribution (employee's share and employer's share) is to be deposited with the authorized bank through a challan in the prescribed form in quadruplicate on or before 21st of month following the calendar month in which the wages fall due.

Benefit Period

If a person joined insurable employment for the first time, say on 5th January, his first contribution period will be from 5th January to 31st March and his corresponding first benefit will be from 5th October to 31st December.

The main object of Contract Labour (Regulation & Abolition) Act, 1970 is to govern the employment of contract labour in certain establishment and to provide for its abolition is certain situation and for matters connected therewith. Every Principal Employer covered are required to obtain Registration Certificate under CLRA and every Contractor covered under this Act are required to obtain Contract Licence

Applicability The Contract Labour (Regulation and Abolition), Act, 1970 applies to:

• Establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months, as a contractor
• Contractor who employs or who employed 20 or more workmen on any day of the preceding 12 months (Section 1)

The main object of Contract Labour (Regulation & Abolition) Act, 1970 is to govern the employment of contract labour in certain establishment and to provide for its abolition is certain situation and for matters connected therewith. Every Principal Employer covered are required to obtain Registration Certificate under CLRA and every Contractor covered under this Act are required to obtain Contract Licence

Registration Registration By Principal Employer

• Principal Employer means the owner or occupier or the person who executes ultimate control and supervision and manages the affairs of the establishment
• Every Principal Employer is required to register his establishment under the Act and obtain the Certificate of Registration
• For this purpose the Principal Employer shall make an application in Form I in triplicate with other relevant documents as may be prescribed in the Act, to the Registering officer , within the stipulated time (Section 7)

Registration (Licence) by the Contractor

• Contractor in relation to the establishment means a person who undertakes to produce a given result for the establishment other than a mere supply of goods or articles of manufacture to such establishment, through contract labour or who supplies contract labour for any work of the establishment and includes a sub-contractor
• Every Contractor is required to obtain licence before executing any work through contract labour
• For this purpose the an application in Form IV is required to be submitted in triplicate, along with other relevant prescribed documents, to the Licensing Officer of the area in which the Principal Employer's establishment is located (Section 12, Rule 21)

Effect Of Non-Registration

If the Principal Employer does not get registration under Section 7 and /or the contractor does not get the licence under Section 121 of the Contract Labour (R&A) Act, 1970, then the person appointed by the Contractor shall be deemed to be the direct employee of the Principal Employer

LIABILITY OF PRINCIPAL EMPLOYER The Principal Employer must ensure the following:

• Facilities for canteen, restrooms, sufficient supply of drinking water, latrines and urinals, washing
• To recover from the contractor for providing such amenities or to make deductions from amount payable (Section 20)

Reponsibility Of The Contractor For Payment Of Wages The Contractor must ensure the following:

• Pay wages on time
• Disbursement of wages in the presence of authorized representative of the principal employer
• Rates of wages not less than the rates as fixed or prevailing in such employment as fixed by the agreement

Registers Principal Employer

• Maintenance of register of contractors in respect of every establishment in Form XII(Rule 74)
Contractor
• Maintain register of workers for each registered establishment in Form XIII
• Issue an Employment Card to each worker in Form XIV
• Issue Service Certificate to every workman on his termination in Form XV (Rules 75, 76 & 77)

Returns For Principal Employer

• Annual Return Form XXV in duplicate is required to be submitted before 15th Feb following the end of the concerned year

The Maharashtra State Tax On Professions, Trades, Callings And Employments Act, 1975
The Maharashtra State Tax on Profession, Trade, Callings and Employment Act, 1975 provides for levy and collection of Profession Tax. Under Maharashtra Profession Tax Act, every covered establishment is required to obtain PT Registration Certificate and PT Enrollment Certificate

Short Title, Extent And Commencement
• This Act maybe called the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975.
• It extends to the whole of the State of Maharashtra.

It shall be deemed to have come into force on the 1st day of April 1975.

THE MAHARASHTRA STATE TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENTS ACT, 1975
The Maharashtra State Tax on Profession, Trade, Callings and Employment Act, 1975 provides for levy and collection of Profession Tax. Under Maharashtra Profession Tax Act, every covered establishment is required to obtain PT Registration Certificate and PT Enrollment Certificate

Levy And Charge Of Tax
• Subject to the provisions of article 276 of the Constitution of India and of this Act, there shall be levied and collected a tax on professions, trades, callings and employments for the benefit of the State.
• Every person excluding firms (whether registered under the Indian Partnership Act, 1932, or not) and Hindu undivided family engaged actively or otherwise in any profession, trade, calling or employment and falling under one or the other of classes mentioned in the second column of Schedule I shall be liable to pay to the State Government the tax at the rate mentioned against the class of such persons in the third column of the said Schedule:

Provided that, the tax so payable in respect of any one person shall not exceed two thousand and five hundred rupees in any year: Provided further that, entry 23 in Schedule I shall apply only to such classes of persons as may be specified by the State Government by notification in the Official Gazette, from time to time

Provided that, the tax so payable in respect of any one person shall not exceed two thousand and five hundred rupees in any year: Provided further that, entry 23 in Schedule I shall apply only to such classes of persons as may be specified by the State Government by notification in the Official Gazette, from time to time

Employer's Liability To Deduct And 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, irrespective of whether such deduction has been made or not, when the salary or wage is paid to such persons, be liable to pay tax on behalf of all such persons: Provided that, if the employer is an officer of Government the State Government may, notwithstanding anything contained in this. Act; prescribe by rules the manner in which such employer shall discharge the said liability:

Provided further that, where any person earning a salary or wage -

• is also covered by one or more entries other than entry 1 in Schedule I and the rate of tax under any such other entry is more than the rate of tax under entry 1 in that Schedule, or
• is simultaneously engaged in employment of more than one employer, and such person furnishes to his employer or employers a certificate in the prescribed form declaring inter alia, that he Shall get enrolled under sub-section (2) of section 5 and pay the tax himself, than the employer or employers of such person shall not deduct the tax from the salary or wage payable to such person and such employer or employers, as the case may be, shall not be liable to pay tax on behalf of such person.

Registration And Enrolment:

• Every employer (not being an officer of Government liable to pay tax under section 4, or under sub-section (5) of section 10A shall obtain a certificate of registration from the prescribed authority in the prescribed manner.
• 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.
• Notwithstanding anything contained in this section and the last preceding section, Where person is a citizen of India and is in employment of any diplomatic or consular office or trade commissioner of any foreign country situated in any part of the State, such person, if liable to pay tax, shall obtain a certificate of enrolment as provided in sub-section (2) and pay the tax himself.

Payment Of Tax

• the tax payable under this Act shall be paid in the prescribed manner.
• The amount of tax due from enrolled persons for each year as specified in their enrollment certificates shall be paid:—

a)	in respect of a person who stands enrolled before the commencement of a year or is enrolled on or before the 31st May of a year	Before 30th June of that year or such later date as the Commissioner may by notification in the Official Gazette, specify in respect of that year.
b)	in respect of a person who is enrolled after the 31 st May of a year	Within one month of the date of enrolment.
c)	In respect of a person who is enrolled and the rate of tax at which he is liable to pay tax is revised.	Within one month of the date of such revision.

• (a) Subject to the rules, any person holding a certificate of enrollment and liable to pay tax at the rate of rupees 1700, 2200 or as the case may be, 2500 per annum, may discharge his liability for payment of tax under this Act for a total continuous period of five years by making payment in advance of a lump sum amount equal to four times of such rate of tax on or before the 30th June of the year
• (b) If any such lump sum payment is not made on or before Such date, but is made on or before the end of the year, such person shall be liable to pay an additional lump sum amount for the period of delay at the rate of rupees 200/- per month, in addition to the amount of lump sum payable under clause (a)
• (c) Any increase or decrease in the rate of tax shall not vary the liability of tax payable by such person who has paid such lump sum amount in lieu of tax.

Penalty For Non-Payment Of Tax
If an enrolled person or a registered employer fails, without reasonable cause, to make payment of any amount of tax, within the required time or date as specified in the notice of demand, the prescribed authority may, after giving him a reasonable opportunity of being heard, impose upon him a penalty equal to ten per cent, of the amount of tax due.

An Act to provide for the constitution of a fund for the financing of activities to promote welfare of labour in the state of Maharashtra. This Act constitutes a board called Maharashtra Labour Welfare Board which looks after the duties assigned to it in relation to Labour Welfare Fund i.e. LWF

Applicability:

• It is applicable to the whole of Maharashtra
• It is applicable to a factory, tramway or motor transport service or establishment under Maharashtra Shops Act, employing five or more workmen located in such area to which the Act is made applicable by the notification of the Government
• Even though the number of employees falls below five, the establishment is remain covered under the Act

An Act to provide for the constitution of a fund for the financing of activities to promote welfare of labour in the state of Maharashtra. This Act constitutes a board called Maharashtra Labour Welfare Board which looks after the duties assigned to it in relation to Labour Welfare Fund i.e. LWF

Section 3: Welfare Board Labour Welfare Board consist of:

• Fines from employees
• Unpaid accumulations
• Penal Interests
• Contribution paid under Section 6BB
• any donation
• any fund transferred under Section 7
• any sum borrowed under Section 8
• any loan, grant in aid, subsidy by the State Government

Unpaid Accumulation

• If an Employee's wage is unpaid due to any reason and such amount is not claimed by such employee or any of his Legal Heir (in case of his death) within the period of three years from the date on which it became due then employer needs to deposit such unpaid accumulations to the Maharashtra Labour Welfare Board as mentioned in Section 2(10) read with Section 3(1) & Section 6A of the Bombay Labour Welfare Funds Act, 1953
• In this regard, the liability in respect of aforesaid accumulation shall be deposited to the Maharashtra Labour Welfare Board in Cheque / Demand Draft along with the statement of unpaid accumulations in the below format (payment due to the employees but not made to them within a period of three year from the date on which they became due):
• If there is no unpaid accumulation as defined under Section 2(10), no such amount is required to be deposited and therefore no relevant statement of unclaimed accumulation is required to be submitted to the Board

Contribution

• By employer, employees and State Government
• Payable every six months in respect of every employee and employees at the following rates
  • In respect of employee whose name stands on the register of the establishmen as on 30th June, and on every 31st December and
• Employees drawing wages upto and inclusive of Rs 3000 .….Rs.6/-
• Employees drawing wages exceeding Rs 3000 – Rs12/
  • In respect of employer for employees referred above, thrice the amount payable by them

Employer to pay contribution before 15th day of July and 15th day of January to the Board by cheque, money order or in cash

Minimum Wages Act, 1948

has been enacted to provide for fixing minimum rates of wages in certain employments and the provisions of the Act are intended to achieve the object of doing social justice to the workers employed in the scheduled employments by prescribing Rates of Minimum Wages i.e. Basic and DA. The Rates of Basic and Dearness Allowances are subject to periodical change by the Appropriate Government

Applicability

The Act applies to employments mentioned in Part I and Part II of Schedule, and as per Section 27

Fixing And Revising The Rates Of Minimum Wages

• The minimum rates of wages may be fixed by the notification by the Appropriate Government for different scheduled employments, different classes of work in the same scheduled employment, adults, adolescents, children and apprentices and for different localities
• Appropriate Government shall fix wages for employments in Part I or II of schedule by notification and revise the rates at intervals of not more than 5 years
• Minimum rates for- Time work, Piece work, Guaranteed time rate, Overtime work
• Wage Period: Wage can be paid by - Hours, day, month, etc

Minimum Wages Minimum Wages consists of following components:

• Basic rates of Wages and Special allowance linked to cost of living index - (BASIC + DA)
• Basic rates of wages with or without cost of living allowance and cash value of concession
• All inclusive rate - basic rate, cost of living allowance or cash value of concession (Total Salary including DA should not be less than Minimum Wages) (Section 4)

Overtime

To be fixed by the hour, by the day or by such a longer wage period works on any day in excess of the number of hours constituting normal working day. Payment for every hour or for part of an hour so worked in excess at the overtime rate double of the ordinary rate of (2 times or for agriculture labour) (Section 5)

Overtime

To be fixed by the hour, by the day or by such a longer wage period works on any day in excess of the number of hours constituting normal working day. Payment for every hour or for part of an hour so worked in excess at the overtime rate double of the ordinary rate of (2 times or for agriculture labour) (Section 5)

Procedure For Fixing The Minimum Rate Of Wages

The Appropriate Government appoints committees and sub-committees to hold necessary enquiries and advise it on fixing the minimum rate of wages and it appoints Advisory Board to co-ordinate the work of committees and sub-committees

Time Of Payment Of Wages The minimum wages are to be paid as under:

• An employer shall not delay unduly the payment of wages to his employees.
• In case of an establishment, employing less one thousand persons, the wages are to paid before the expiry of seventh day
• In any other case, before the expiry of tenth day after the last day of the wage period

Employer's Duties

• To pay wages as prescribed not less than the minimum rate without deductions except those authorized (Section 12)
• Pay overtime as per the rate fixed to the employee
• Overtime wage is double the ordinary wages
• Employee in public motor transport 1 1/2 ordinary wages, agriculture work, if more than 7 hours in a day then 1 1/2 ordinary wages
• To maintain registers and records containing details of employees as specified
• To exhibit notices containing prescribed particulars in the prescribed manner

Coverage Of Employees

Employees drawing wages up to Rs 24000 per month are covered under the Act as amended with effect from 2018

Time Of Payment Of Wages

• An employer shall not delay unduly the payment of wages to his employees.
• In case of an establishment, employing less one thousand persons, the wages are to paid before the expiry of seventh day
• In any other case, before the expiry of tenth day after the last day of the wage period (Section 5)

Payment Of Wages To An Employee Whose Services Were Ternminated

Where the services of an employee are terminated by the employer, his wages become payable before the expiry of the second working day from the day on which the employment is terminated

Manner Of Payment Of Wages

• The Act stipulates that all wages are to be paid in current coins or coin or currency notes or in both but not by way of cheque or by crediting to the account of the employee (Section 6)
• Further, all payments of wages are to be made on a working day [Section 5(4)]

Employer's Liability

• Every employer shall fix wage period
• Every employer shall ensure that wages are paid within the periods prescribed under the Act
• He shall ensure that wages are paid in current coin or current notes
• He shall pay wages on working days
• He shall extend all co-operation necessary to the Inspectors for conducting enquiry and afford all facilities to him for making entry, inspection, supervision, examination or enquiry under this Act
• He shall display a notice containing an abstract of the Act and the rules in English and in the language of majority of employees
• Every employer shall maintain records and registers in the prescribed form containing particulars of persons employed, work performed, wages paid deductions effected and receipts given by them
• He shall preserve the records fot s period of three years

Payment of Wages Act regulates and governs payment of wages. The Act provides for responsibility of payment of wages, disbursement of wages, period of wages, fixation of wage period, time and mode of payment of wages, wage cycle etc.

Applicability - The Act applies:

• To every establishment covered by the Maharashtra Shops and Establishments Act, 1948
• To Factories, Railways etc.
• Industrial establishment mentioned in Section 2(ii)(a) to (g)
• By notification under Section 2(ii)(h)

The Act does not apply to employees drawing wages more than Rs 24000 per month [Section 1(6)]

Coverage Of Employees

Employees drawing wages up to Rs 24000 per month are covered under the Act as amended with effect from 2018

Time Of Payment Of Wages

• An employer shall not delay unduly the payment of wages to his employees.
• In case of an establishment, employing less one thousand persons, the wages are to paid before the expiry of seventh day
• In any other case, before the expiry of tenth day after the last day of the wage period (Section 5)

Payment Of Wages To An Employee Whose Services Were Ternminated

Where the services of an employee are terminated by the employer, his wages become payable before the expiry of the second working day from the day on which the employment is terminated

Manner Of Payment Of Wages

• The Act stipulates that all wages are to be paid in current coins or coin or currency notes or in both but not by way of cheque or by crediting to the account of the employee (Section 6)
• Further, all payments of wages are to be made on a working day [Section 5(4)]

Employer's Liability

• Every employer shall fix wage period
• Every employer shall ensure that wages are paid within the periods prescribed under the Act
• He shall ensure that wages are paid in current coin or current notes
• He shall pay wages on working days
• He shall extend all co-operation necessary to the Inspectors for conducting enquiry and afford all facilities to him for making entry, inspection, supervision, examination or enquiry under this Act
• He shall display a notice containing an abstract of the Act and the rules in English and in the language of majority of employees
• Every employer shall maintain records and registers in the prescribed form containing particulars of persons employed, work performed, wages paid deductions effected and receipts given by them
• He shall preserve the records fot s period of three

The Payment of Bonus Act, 1965 is enacted to provide for the payment of statutory bonus to persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matters connected therewith. The Act also provides for minimum bonus and maximum bonus payable to the eligible employees

Applicability:The Act is applicable to:

• Every factory where in 10 or more persons are employed with the aid of power; or
• Establishment in which 20 or more persons are employed without the aid of power on any day during an accounting year (Section 1)

Establishment

Establishments includes Departments, undertakings and branches etc

Eligibility

• Employees drawing wages up to ( before amendment - Rs 10000) after amendment Rs 21000 per month
• Minimum Bonus is 8.33% of the Salary
• Maximum Bonus id 20% of the Salary
• CAP for calculating bonus (before amendment - Rs 3500 per month) after amendment Rs 7000 per month or the rate of minimum wages, whichever is higher
• An employee will be entitled to get bonus only when he has worked for not less than 30 working days in the relevant accounting year

Time Limit For Payment Of Bonus

• Within 8 months from the closing of the accounting year
• If disputed then within 1 month from the date on which award becomes enforceable

Disqualification & Deduction Of Bonus - On dismissal of an employee for:

• Fraud; or
• riotous or violent behavior while in the premises of the establishment; or
• theft, misappropriation or sabotage of any property of the establishment or
  • Misconduct of causing financial loss to the Employer to the extent that bonus can be deducted for that year (Section 9 & 18)

Computation Of Gross Profit

• For banking company, as per First Schedule
• Others, as per Second Schedule (Section 4)

Set-Off And Set-On

As per Schedule IV (Section 15)

Components Of Bonus

Salary or wages includes dearness allowance but no other allowances e.g. overtime, house rent, incentive or commission. [(Section 2 (21)]

Employer's Duties

• Every employer shall pay either minimum bonus or maximum bonus in lieu thereof to every eligible employee
• In the State of Maharashtra the employer shall pay the bonus in A/c payee cheque or by the way of crediting the same to the bank A/c of the employee (Section 11A)
• He shall pay bonus within 8 months from the close of the accounting year unless such period is extended by the appropriate Government (Section 19)
• Every employer shall maintain the following records/registers (Section 26):
  • A register showing allocable surplus in Form A
  • A register showing the set on and set off of the allocable surplus under Section 15 in Form B
  • A register showing the details of the bonus disbursed with the deductions under Section 17 & 18, in Form C
• Every employer shall send a Return in Form D to the Inspector within 30 days of the time limit specified under Section 19
• Ever employer shall maje available all information or records/ registers sought by the Inspectors in connection with compliance of the Act (Section 27)

Penalty

Salary or wages includes dearness allowance but no other allowances e.g. overtime, house rent, incentive or commission. [(Section 2 (21)]

The Payment of Gratuity Act, 1972 deals with provisions for gratuity and imposes duty upon every establishment covered under this Act to provide benefits under this Act to all the eligible employees

Applicability

• This Act applies to every shops or establishments within the meaning of any law for the time being in force in a State, in which 10 or more persons are employed or were employed on any day of the preceding 12 months
• A shop or establishment to which this Act has become applicable shall continue to be government under this Act notwithstanding the number of persons employed therein at any time after it has become applicable

Eligibility

• Every employee shall be eligible for the gratuity if he/she has completed 5 years of continuous service
• If the person has worked for 5 years and 6 months, then he is deemed to have worked for 6 years but less than 6 months not to be considered
• The gratuity shall be payable to an employee on termination of his employment after he has rendered continuous service for not less than 5 years or,
  • On his superannuation, or
  • On his retirement, or where his death or total disablement the condition of 5 years complete service will not be applicable
  • o For every completed year of service or part thereof in excess of six months the employer shall pay gratuity to an employee at the rate of fifteen days’ wages based on the rate of wages last drawn by the employee concerned

Nomination

• The employee who intends to nominate shall have completed one year or service
• He shall make such nomination within thirty days of completion of one year service in Form F in duplicate and either personally deliver it to the employer or send it by registered post with acknowledgement due
• The employer after verifying the employee’s details in nomination form shall record the nomination after acknowledging receipt thereof to the employee
• An employee who has no family at the time of nomination can make nomination in favor of any person or persons but if he acquires a family thereafter, he has to make a fresh nomination in Form G within ninety days in duplicate in favor of one or more members of family of one or more members of his family
• An employee who intends to modify his nomination, can do so, after giving written notice to the employer in Form H
• A nomination or fresh nomination or modification of nomination shall be duly signed by the employee or shall bear his thumb impression (if illiterate) in the presence of two witnesses (Section 6 r/w Rule 6)

Mode Of Payment Of Gratuity

• Gratuity amount shall be paid in cash or
• Be sent by demand draft or by bank cheque to the employee, nominee or legal heir as the case may be or
• Be sent by money order, if gratuity amount is less than Rupees 1000 or
• In case of minor, the controlling authority shall invest the gratuity amount in SBI or its subsidiaries or nationalized bank (Rule 9)

Responsibilities Of Employer

• Employer shall submit details regarding its opening in Form A to the controlling authority, within 30 days of the Act becoming applicable to the establishment (Rule 3)
• Employer shall submit details to the Controlling Authority in Form C, within 60 days before the intended closure of the establishment (Rule 3)
• Employer shall intimate change in name, address, employer or nature of business to the Controlling Authority in Form B (Rule 3)
• Employer has to register his establishment with the Controlling authority. (Section 4-A)y
• If the employer has their own gratuity fund then her shall have to obtain the insurance cover as laid down under Section 4-A of the Act
• The amount of the gratuity shall be determined in terms of Section 7 of the Act
• Employer shall issue the notice of the payment to employee within the stipulated period and pay the gratuity within the prescribed time as per Section 8 read with Rule 7
• In case of the default by the employer, he is required to pay simple interest at the prescribed rate [Section7(3A)]
• He is required to furnish such information or such records and registers as are called for by the Inspector for inspection
• Employer shall display an abstract of the Act and Rules in Form U in English or such other language which can be understood by the employees (Rule 20)
• No deduction shall be made in the gratuity which is not permissible under the Act [Section 4(6)]

The object of the Maternity Benefit Act, 1961 is to protect the dignity of motherhood by providing for the full and healthy maintenance of woman and her child when she is not working. Therefore this Act was passed aiming at a uniform maternity benefit all over the country providing Maternity Leave to all eligible female employees

ApplicabilityThe Maternity Benefit Act, 19 applies to:

• Factory, Mines, Plantation, Government Establishment, Exhibition of equestrian, Acrobatics & other performances
• Shops and establishments with 10 or more person employed
• By Notification to other establishments, Industrial, commercial, agricultural or otherwise after giving not less than months’ notice

Eligibility

Every women shall be eligible for maternity benefit when she is expecting a child and has worked for her employer for at least 80 days in the 12 months immediately preceding the date of her expected delivery (Section 5)

Conditions For Claiming Benefit

• Twelve weeks before the date of her expected delivery, she may ask the employer to give her light work for a month. At that time she should produce a certificate that she is pregnant
• She should give written notice to the employer about seven weeks before the date of her delivery that she will be absent for six weeks before and after her delivery. She should also name the person to whom payment will be made in case she cannot take it herself
• She should take the payment for the first six weeks before she goes on leave
• She will get payment for the six weeks after child-birth within 48 hours of giving proof that she has had a child
• She will be entitled to two nursing breaks of fifteen minutes each in the course of her daily work till her child is fifteen months old
• Her employer cannot discharge her or change her conditions of service while she is on maternity leave (Section 5)

Period Of Maternity Benefit

• It shall be twenty - six weeks of which not more than eight weeks shall precede the date of her expected delivery and the remaining eighteen weeks can be availed after delivery [Section 5(3)]
• The Section does not, however make it compulsory that the women employee shall necessarily avail eight weeks leave preceding the delivery. It only forbids her not to take more than eight weeks maternity leave if she intends to proceed on leave prior to delivery. It is open to her to avail leave for less number of days also. However the total period of leave admissible to her under the Act is twenty-six weeks

Cash Benefit

• Leave with average pay for eight weeks before the delivery
• Leave with average pay for eighteen weeks after the delivery
• A medical bonus of Rs. 3500.00 if the employer does not provide free medical care to the womanAn additional leave with up to one month if woman shows proof of illness due to pregnancy, delivery, miscarriage or premature birth She will get payment for the six weeks after child-birth within 48 hours of giving proof that she has had a child
• In case of miscarriage, twelve weeks leave with average pay from the date of miscarriage

He object of this Act is to provide for minimum HRA is to workmen working in the industries in Maharashtra and to deal with several other matters connect to it

Applicability

• It is applicable to every factory as defined under Factories Act or an establishment in an industry in the areas in Maharashtra in which the Act is in force in respect of which the State Government is the Appropriate Government or to which the Maharashtra Industrial Relations Act is applicable
• Such factory or establishments shall employ 50 or more workmen.
• The Act can also be made applicable to a factory or establishment with less than fifty workmen, if the State Government issues notification to that effect
• The Act continues to be applicable eve if the number of employees fall below the prescribed number

Computation Of Hra

• Every workmen is entitled at the rate of 5% of the wages payable to him during the month of his service or Rs 20 whichever is higher and shall be payable within 10 days of the following month
• Wages means Basic + DA (Dearness Allowances)
• The payment of HRA is to be made in cheque along with his monthly wages

The Industrial Employment (Standing Orders) Act, 1946 is Central enactment with an object to have a uniform Standing Order providing for the matters enumerated in Schedule to the Act and the provisions of the proposed Standing Orders should be in line with the Model Standing Order

Applicability Of The Act

• Every industrial establishment wherein 100 or more (in many states it is 50 or more)
• Any industry covered by the Bombay Industrial Relations Act, 1946
• Any industrial establishment covered by M.P Industrial Employment (Standing Orders) Act, 1981 (Section 1)

Conditions For Certification Of Standing Orders

• Every matter to be sort our as per Schedule and Rule 2A
• The standing orders to be in conformity with the provisions of the Act

Submission Of Draft Standing Orders

• Within six months from the date when the Act became applicable to an industrial establishment
• Five copies of the Draft Standing Orders are to be submitted to the Certifying Officer under the Act (Section 3)

Procedure For Certification Of The Standing Orders

• The Certifying Officer to forward a copy of draft standing orders to the trade union, or in the absence of the union, to the workmen of the industry.
• The trade union or the other representatives, as the case may be, are to be heard (Section 5)

Matters To Be Provided In Standing Orders

• Classification of workmen, e.g., whether permanent, temporary, apprentices, probationers, or badlis.
• Manner of intimating to workmen periods and hours of work, holidays, pay-days and wage rates.
• Shift working
• Attendance and late coming.
• Conditions of, procedure in applying for, and the authority which may grant, leave and holidays.
• Requirement to enter premises by certain gates, and liability to search.
• Closing and re-opening of sections of the industrial establishments, and temporary stoppages of work and the right and liabilities of the employer and workmen arising therefrom
• Termination of employment, and the notice thereof to be given by employer and workmen.
• Suspension or dismissal for misconduct, and acts or omissions which constitute misconduct.
• Means of redressal for workmen against unfair treatment or wrongful exactions by the employer or his agents or servants.
• Additional Matters
  • Service Record – Matters relating to service card, token tickets, certification of service, change of residential address of workers and record of age
  • Confirmation
  • Age of retirement
  • Transfer
  • Medical aid in case of Accident
  • Medical Examination
  • Secrecy Exclusive service [Section 2(g), 3(2) and Rule 2A]

Date Of Operation Of Standing Orders

On the date of expiry of 30 days from certification or on the expiry of 7 days from authentication of Standing Orders (Section 7)

Posting Of Standing Orders

The text of the standing orders as finally certified shall prominently be posted in English or in the language understood by majority of workmen on special board at or near the entrance for majority of workers (Section 9)

Temporary Application Of Model Standing Orders

Temporary application of mod standing orders shall be deemed to be adopted till the standing orders as submitted are certified. (Section 12-A)

Penalty

• Failure of employer to submit draft Standing Orders fine of Rs.5000 and Rs.200 for every day on continuation of offence.
• Fine of Rs.100 on contravention and on continuation of offence Rs.25 for every day (Section 13)

Object Of The Act

The Act aims to promote new manpower at skills and improvement and refinement of old skills through theoretical and practical training in various trades and occupation. The Act envisages to regulate and control the Apprenticeship Training in trade and to supplement the availability of the technical persons for the Industry. Apprentice Board called Board of Apprenticeship Training has been formed with an aim to upgrade and improve fresh engineers placing them in Job Training in actual working environment apprentices under the provisions of this Act.

Applicability

The Act shall be applicable only to those area or industry within the meaning of Section 2(k) of the Act as notified by the Central Government or to any special apprenticeship scheme for imparting training to apprentices as notified by Central Government [Section 1(4)(a) and (c)]. Thus it is not applicable to any area or the industry without Government Notification.

Apprentice

An apprentice means a person who is undergoing an apprenticeship under a contract of apprenticeship. [Section 2(aa)]

Eligibility Criteria

A per shall fulfill the following criteria/qualifications to appointed as an apprentice: (a) He shall not be less than 14 years of age (b) He shall fulfill standards of education and physical fitness specified under Rule 3 r/w Schedule I, IA and 4 respectively r/w schedule II (Section 3)

An Apprentice Is Not A Worker

Section 18 of the Act lays down that every apprentice undergoing apprenticeship training in a designated trade in an establishment shall be a trainee and not a worker and it further states that the provisions of any laws pertaining to Labour does not apply to an apprentice, except certain specified provisions of the Factories Act, 1948, Mines Act, 1952 and Employees’ Compensation Act, 1923 for the welfare of the apprentices (Section 18 r/w Section14 and 16)

Obligation Of The Employer In Engaging Apprentice

• The person appointed as the apprentice shall fulfill all the educational and physical fitness qualification as prescribed under the Act
• Apprentice shall enter into the Contract of Apprenticeship with the employer. In case of the minor, the guardian shall so execute the contract (Rule 6)
• The employer shall send a copy of the Contract to the Apprenticeship Advisor for registration
• He shall adhere to the period of apprenticeship training specified under the Act (Section 9) (Rule 7 & 8) (Schedule I-B)
• The employer shall adhere to the health and safety and welfare of the apprentices (Section 14)
• The employer shall adhere to the hours of work, overtime, leave and holidays (Section 14 r/w Rule 12 & 13)
• He has to compensate for any injury caused to the apprentice during the training in terms of Employees’ Compensation Act, 1923
• The employer shall pay the stipend to the apprentice at such rate as may be prescribed under the Rule 11 (Section 13)
• The employer shall maintain the records and the registers as stipulated under Rule 14
• Reply of inspection remarks of factory Inspector
• The employer shall maintain the record of the work and studies undertaken by the apprentice (Rule 14)

Obligation Of The Apprentice

Every apprentice or graduate or technician apprentice shall attend practical and instructional training, follow lawful orders of the employers and superior, carry out obligation under the contract of apprenticeship (Section 12)

The Employment Exchanges (Compulsor Notification Of Vacancies) Act, 1959

The object of this Act is to provide for Compulsory Vacancy Notification to employment exchanges

Applicability

The Appropriate Government by the Notification in the Official Gazette, appoint in this behalf for such State and different dates may be appointed for different States or for different areas of a State

When Not ApplicableThe Act is not applicable to following:

• Any employment in agriculture, horticulture etc.
• Any employment in domestic services.
• Any employment, the total duration of which is less than three months
• Any employment to do unskilled office work
• Any employment connected with the Staff of Parliament

Filing Of Vacancy Notification

The Appropriate Government by the Notification in the Official Gazette require that form such date as may be specified be Notification, the every establishment in the Private Sector or every establishment pertaining to any class or category of establishments in Private Sector shall, furnish such information or return as may be prescribed in relation to vacancies that have occurred or are about to occur in that establishment to such Employment exchanges as may be prescribed, and the employer shall thereupon comply with such requisition

Time Limit For Notification Of Vacancies

Vacancies, required to be notified to the Local Employment Exchange, shall be notified at least one week before the date on which applicant will be interviewed or tested, where interviews or tests are held, or on the date on which vacancies are intended to be filled, if no interviews or tests are held

Return

• An employer shall furnish to all the Local Empoyment Exchange, Quarterly Return in Form ER-I and Biennial returns in Form ER-II.
• Quarterly Returns shall be furnished within 30 days of the due dates , namely 31st March, 30thJune, 30th September and 31st December
• Biennial Returns shall be furnished within 30 days of the due date as notified in the Official Gazette

The Equal Remuneration Act is a gift of "the International Women's Year" to women workers. It is enacted to give effect to the provision of Article 39 of the Constitution of India which contains a directive principle of equal pay for equal work for both men and women. The Act provides for the payment of equal remuneration to men and women workers for the same work or work of a similar nature and for the prevention of discrimination on the ground of sex against women in the matter of employment. The main provisions of the Act are as follows.

Applicability

Applies to "establishments" and 'employment' form the date this Act came into force to such employment and establishment and establishments to men and women workers. Does not apply when special treatment is given to women on account of any law, in respect of child birth, marriage death and retirement [Section 2(6) & Section 4]

Equal Pay For Equal Work:

No employer shall pay to any worker employed by him remuneration at rates less favourable than those at which remuneration is paid by him to the workers of the opposite sex for performing the same work or work of similar nature. [Section 4(1)]

No Discrimination To Be Made While Recruiting Men And Women:

No employer shall make any discrimination against women while making recruitment for the same work or work of a similar nature. (Section 5)

Exceptions:

The provisions of the Act shall be inapplicable when special treatment is given to women under any law or when special treatment is accorded to women in connection with the birth of a child. [Section 15]

Claims And Complaints:

• Complaints with regard to the contravention of any provision of the Act and claims arising out of non-payment of wages at equal rates to men and women workers for the same work or work of similar nature shall be heard and decided by an authority appointed by the appropriate Government. An appeal shall lie against any order of the authority to an appellate authority appointed by the appropriate Government (Section 7)
• Monies due from an employer arising of the decision of the authority or the appellate authority can be recovered by making an application under Section 33-C(1) of the Industrial Disputes Act, 1947. [Section 7(8)]

Penalties

If any employer (a) makes any recruitment in contravention of the provisions of the Act, or (b) makes any payment of remuneration at unequal rates to men and women workers, for the same work or work of a similar nature, or (c) makes any discrimination between men and women workers in contravention of the provisions of the Act, he would be punished with fine upto Rs. 10000.00 (Section 10)

Object Of The Act

The object of the Act is to provide protection against sexual harassment of women at workplace and for the redressal of complaints of sexual harassment requiring employer to constitute Internal Complaint Committee in this regard

Definition

• Section 2(d): “District Officer” means an officer notified under section 5
• Section 2(f): “Employee” means person employed at a workplace for any work on regular, temporary, ad hoc or daily wage basis, either directly or through an agent, including a contractor, with or, without the knowledge of the principal employer, whether. for remuneration or not, or working on a voluntary basis or otherwise, whether the terms of employment are express or implied and includes a co-worker, a contract worker, probationer, trainee, apprentice or called by any other such name;
• Section 2(g): “employer” means
  • in relation to any department, organisation, undertaking,. establishment, enterprise, institution, oflice, branch or unit of the appropriate Government or a local authority, the head of that department, organisation, undertaking, establishment. enterprise, institution, office, branch or unit or such.othcr officer as the appropriate Government or the local authority, as the case may be, may by an order specify in this behalf;
  • in any workplace not covered under sub-clause (i), any person responsible for the management, supervision and control of the workplace
  • Explanation.-- For the purposes of this sub-clause "management" includes the person or board or committee responsible for formulation and administration of polices for such organisation:
  • Transfer
  • in relation to workplace covered under sub-clauses (i) and (ii), the person discharging contractual obligations with respect to his or her employees;
  • in relation to a dwelling place or house, a person or a household who employs or benefits from the employment of domestic worker, irrespective of the number, time period or type of such worker employed, or the nature of the employment or activities performed by the domestic worker;
• Section 2(h): “Internal Complaint Committee” means Internal Complaint Committee constituted under Section 4
• Section 2(n): “Sexual Harassment” includes any one or more of the following unwelcome acts or behavior (whether directly or by implication) namely:
  • physical contact and advances; or
  • a demand or request for sexual favours; or
  • making sexually coloured remarks; or
  • showing pornography; or
  • any other unwelcome physical, verbal or non-verbal conduct of sexual nature;
• Section 2(b): "appropriate Government" means- (i) in relation to a workplace which is established, owned, controlled or wholly or substantially financed by funds provided directly or indirectly-
  • by the Central Government or the Union territory administration, the Central Government;
  • by the State Government, the State Government;
• in relation to any workplace not covered under sub-clause (i) and falling within its territory, the State Government

Internal Complaint Committee

• Every employer of a workplace shall, by an order in writing, constitute a Committee to be known as the “Internal Complaints Committee"
• If the offices or administrative units of the workplace are located at different places or divisional or sub-divisional level, the Internal Complaint Committee shall be constituted at all administrative units or offices
  MEMBERS OF THE INTERNAL COMPLAINT COMMITTEE
  • The Internal Committee shall consist following members to be nominated by the employer namely: (a) a Presiding officer who shall he & woman employed at a senior level at workplace from amongst the employees Provided that in case a senior level woman employee is not available, the Presiding Officer shall be nominated from other offices or administrative units of the workplace referred to in sub-section (1)
  • one member from amongst non-governmental organizations or associations committed to the cause of women or a person familiar with the issues relating to sexual harassment Provided that at least one-half of the total Members so nominated shall be women [Section 4(2)a, b and c]
  • TENURE OF THE INTERNAL COMPLAINT COMMITTEE - The Presiding Officer and every Member of the Internal Committee shall hold the office for such period not exceeding three years, from the date of their nomination as may be specified by the employer [Section 4 (3)]
  • ALLOWANCE OF THE MEMBERS OF THE INTERNAL COMPLAINT COMMITTEE
    • The member appointed from amongst the non-governmental organizations or associations shall be paid fees or allowances for holding the proceedings of the Internal Committee. (Section 4(4) of the Act)
    • Section 3 of the Rules elaborates that the member appointed from amongst the non-government organizations shall be entitled to an allowance of Rs 200 per day for holding the proceedings of the Internal Committee. Reimbursement of travel cost incurred in travelling by train in 3rd AC or AC bus and auto rickshaw or taxi or the actual amount spent by him/her, whichever is less will also be done.

Complaint

• Any aggrieved woman may make, in writing, a complaint of sexual harassment at workplace to the Internal Committee if so constituted, or the Local Committee, in case it is not so constituted, within a period of three months from the date of incident and in case of a series of incidents, within a period of three months from the date of last incident
• Provided that where such complaint cannot be made in writing, the Presiding Officer or any Member of the Internal Committee or the Chairperson or any Member of the Local Committee, as the case may be, shall render all reasonable assistance to the woman for making the complaint in writing:
• Provided further that the Internal Committee or, as the case may be, the Local Committee may, for the reasons to be recorded in writing, extend the time limit not exceeding three months, if it is satisfied that the circumstances were such which prevented the woman from filing a complaint within the said period
• Where the aggrieved woman is unable to make a complaint on account of her physical or mental incapacity or death or otherwise, her legal heir or such other person as may be prescribed may make a complaint under this section(Section 9)

Preparation Of Annual Return

- The Annual Report which the Complaints Committee shall prepare under Section 21, shall have the following details:

• Number of complaints of sexual harassment received in the year
• Number of complaints disposed off during the year
• Number of cases pending for more than ninety days
• Number of workshops or awareness programme against sexual harassment carried out
• Nature of action taken by the employer of the District Officer (Rule 14)

Penalty

• If employer fails to:
  MEMBERS OF THE INTERNAL COMPLAINT COMMITTEE
  • Constitute an Internal Complaint Committee under Section 4 of the Act]
  • Take actions under Section 13, 14 & 22
  • ontravenes or attempts to contravene or abet contravention of other provisions of this Act or any Rules made thereunder

He shall be punishable with fine which may extend to fifty thousand rupees

• If any employer, after having been previously convicted of an offence punishable under this Act subsequently commits and is convicted of the same offence shall be liable to-
  • twice the punishment, which might have been imposed on a first conviction, subject to the punishment being maximum provided for the same offence:
    Provided that in case a higher punishment is prescribed under any other law for the time being in force, tor the offence for which the accused is being prosecuted, the court shall take due cognizance of the same while awarding the punishment;
  • cancellation of his license or withdrawal, or non-renewal, or approval, or cancellation of the registration, as the case may be, by the Government or local authority required for carrying on his business or activity. (Section 26)

Applicability

• The Act applies to persons employed in shops, restaurants and theatres
• The Act becomes applicable in a State only by way of the State Government Notification
• The Act excludes persons employed in a confidential capacity or in a position of management as per object of the Act (Section 1)

Non-Entitlement

To persons whose total period of employment in week including authorized leave is less than six days and those in confidential capacity and those who entitle to an additional holiday in shop and those who have a whole holiday on the day on which the shop has remained closed in terms of Section 3

Holiday In Shops , Restaurants And Theatres

NThe Holidays shall be declared as under:

Types of Establishment	No. of Holidays in a Week	Additional Holidays
Shops	To be closed on one day of the week (Section 3) or grant a holiday in a week (Section 4)	Half-day in the afternoon in a week (as notified by the State Government) (Section 5)
Restaurants and Theatre	Restaurants and Theatre Shall grant a holiday in a week (Section 4)	Shall grant a holiday in a week (Section 4) Half-day in the afternoon in a week (as notified by the State Government) (Section5)

Other requirements to be complied with:

• The shopkeeper shall specify the days on which the shops remains closed for a whole day or for half-day as the case may be through a notice to be exhibited in a conspicuous place. (Section 3 & Section 5)
• The shopkeeper shall not alter the day of closure more often except once in three months (Section 3)

Deduction Or Abetement Of Wages

There should not be any deduction or abatement of wages on account of closure of shops or holiday for the whole day or for half-day irrespective of the fact that a person in employed on the basis that no wages are payable to him for a holiday for the whole day or for the part of the day (Section 6)

Penalties

For failure to close shop or grant one day holiday or half-day holiday under Section 3, 4 & 5, or deducting wages for such holiday or failure to maintain registers or display notices under Section 10(2)(c), the penalty in fine upto Rs 25 for the offences for the first time and Rupees 250 for the second and third

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