FREQUENTLY

ASKED QUESTIONS
ON
LABOUR LAWS
1
TABLE OF CONTENTS
S.No Name of the Act Page
1.
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".
#.
$.
%.
&.
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1(.
11.
1.
The Pa)me*t of +,at-.t) Act/ 1'%
Em01o)ee2 Pe*2.o* Scheme/ 1''#
The Em01o)ee2 P,o3.4e*t F-*4 and MP Act, 1952
The Pa)me*t of Bo*-2 Act/ 1'$#
The 5ate,*.t) Be*ef.t Act/ 1'$1
The Co*t,act La6o-, Reg-1at.o* a*4
A6o1.t.o* Act/ 1'%(
The Em01o)ee2 State I*2-,a*ce Act/ 1'"&
I*4-2t,.a1 D.20-te Act/ 1'"%
The 5.*.m-m Wage2 Act/ 1'"&
The Pa)me*t of Wage2 Act/ 1'!$
Em01o)me*t of E7cha*ge2 Act/ 1'#'
T,a4e U*.o* Act/ 1'$
!
" 8 &
' 8 1%
1& 8 1'

( 8 1
8 !
" 8 !#
!$ 9 !&

!' 9 "1
" 9 "$
"% 9 "&
"'
2
T:E PAY5ENT OF +RATUITY ACT91'%
1. Whe* .2 g,at-.t) a001.ca61e to a* em01o)ee;
Ans: Gratuity is applicable to a permanent employee who completes 5 years of continuous service with the
oranisation!

. Wh.ch fo,m ha2 to 6e f.11e4 fo, *om.*at.o* of +,at-.t);
Ans: "orm " has to be filled for #omination of Gratuity!

!. <ho ca* 6e *om.*ate4 fo, +,at-.t);
Ans: $f employee is married than he%she can nominate spouse, if not then dependant parents!

". .f a* em01o)ee 4oe2 *ot ha3e 4e0e*4a*t 0a,e*t2 o, .2 *ot ma,,.e4/ ca* he=2he *om.*ate
h.2=he, 6,othe, o, 2.2te,;
Ans: &es he%she can do that, but sooner or later he%she ac'uires a family than the employee has to
communicate
the same to the () department to ma*e the necessary chanes in #omination!

#. Whe* .2 a* em01o)ee e1.g.61e fo, gett.*g g,at-.t);
Ans: +mployee has to complete continuous service of 5 years, but after the rulin of Madras (ih ,ourt if there
are 2-. wor*in days in the 5
th
year even then an employee is eliible for the ratuity!

$. What .f a* em01o)ee com01ete2 " )ea,2 > $ mo*th2 of 2e,3.ce/ .2 he e1.g.61e fo, +,at-.t);
Ans: #o, but where an employee has completed - years / 2-. days of continuous service in the 5th year he is
eliible for the Gratuity!

%. What .f a* em01o)ee 6efo,e com01et.*g # )ea,2 of co*t.*-e2 2e,3.ce e70.,e2/ .2 he e1.g.61e fo,
+,at-.t);
Ans: $n case the employee e0pires before completin 5 years and ratuity could be paid to the nominee of the
deceased employee provided the employee has completed a year of service!

&. What .2 the ma7.m-m +,at-.t) 0a)a61e to a* em01o)ee;
Ans: Ma0imum Gratuity payable to an employee is 1hree 2a*hs "ifty 1housand only!

'. I2 ,et,e*che4 em01o)ee e*t.t1e4 to g,at-.t);
Ans: &es, a retrenched employee is also entitled to ratuity!
Bac? to Co*te*t2 Page
3
E5PLOYEE PENSION SC:E5E/ 1''#.

1@ Who <.11 6e co3e,e4 6) the Pe*2.o* Scheme;
+very member of the ceased "amily Pension 3cheme 1941 and anyone who 5oins any covered
establishment on or after 16711795 is compulsorily to 5oin this scheme, provided his%her salary%wae is less
than )s! 65..%7 per month at the date of appointment!
@ What .2 a co3e,e4 e2ta61.2hme*t;
,overed establishment is an establishment belonin to the class of industries % other establishments,
which has been listed in the schedule appended to the +mployees8 Provident "und and Miscellaneous
Provisions Act 1952 and where 2. or more persons are employed!
!@ If em01o)ee <a2 a Fam.1) Pe*2.o* Scheme mem6e,. :e=She ha2 1eft o* 1!919'! a*4 he=2he .2
#" )ea,2 o14. :e=She ha2 ta?e* h.2 <.th4,a<a1 6e*ef.t. Ca* he=2he Ao.* the *e< 2cheme;
&es, by refundin withdrawal benefit toether with interest! 1hereafter, he%she will be entitled to receive
pension from ae 59, if he%she completes at least 1. years of contributory service by then!
"@ If em01o)ee .2 a Fam.1) Pe*2.o* Scheme 5em6e, a*4 he=2he ha2 ,et.,e4 afte, #& )ea,2 of age o*
1#9(19'". Ca* he=2he Ao.* the *e< 2cheme;
&es, anyone who has retired by reachin ae 59 between .17.-79: and 15711795 may 5oin the scheme by
returnin the withdrawal benefit alon with interest! (e will be paid pension with immediate effect, from
date of e0it provided he has rendered 1. years of contributory service!
#@ If em01o)ee .2 *ot a Fam.1) Pe*2.o* Scheme mem6e, a*4 he=2he .2 #$ )ea,2 of age/ Ca* he=2he
Ao.* Fam.1) Pe*2.o*;
&es, by divertin from his%her Provident "und balance, "amily Pension 3cheme contribution from date of
his%her 5oinin or .17.:741, whichever is later!
$@ Whethe, the Fam.1) Pe*2.o* Scheme mem6e, <ho ha2 atte*4e4 the age of #& )ea,2 6efo,e (19
("9'! a*4 ha2 1eft em01o)me*t afte, (19("9'! <.11 6e a4m.tte4 to the 2cheme a2 mem6e, of
Fam.1) Pe*2.o* Scheme/ 1'%1;
&es, he will be deemed to have retired after .17.-79:! ;n repayment of that withdrawal benefit which was
paid, Pension will be paid from same date, provided he has rendered 1. years of contributory service!
%@ I* ca2e Fam.1) Pe*2.o* mem6e, ha2 atta.*e4 the age of #& )ea,2 6et<ee* (19("9'! a*4 1$9119
'# the* .* that ca2e <hethe, a,,ea,2 of mo*th1) 5em6e, Pe*2.o* 6ecome 0a)a61e fo, the 0e,.o4
ea,1.e, tha* 1$9119'# ..e. f,om the 4ate of h.2=he, atta.*.*g the age of #& )ea,2 <h.ch .2 0,.o, to
1$9119'#;
#o, he%she will be deemed to have retired from 16711795 and pension paid accordinly!
&@ I2 em01o)ee the o*1) 6e*ef.c.a,) of F-*4;
<enefit will be paid to him%her and in his%her absence to his%her family!
'@ What .2 mea*t 6) BFam.1)C;
4
"amily means employees8 spouse and children below 25 years of ae!
1(@ S-00o2e a* em01o)ee 4oe2 *ot ha3e a Fam.1) a*4 he=2he 4.e2 6efo,e ,ece.3.*g 6e*ef.t. Doe2
h.2=he, 0e*2.o* get 1o2t;
#o, if he%she does not have a family, benefits will be paid to his%her nominee, who will receive the benefit in
his%her absence!
11@ S-00o2e mem6e, ha2 *ot *om.*ate4 a*)o*e.
1he pension % );, will be paid to the dependent parents!
1@ Ca* mem6e, cha*ge h.2=he, *om.*at.o*;
(e%3he can chane his%her nomination whenever he%she decides within the framewor* of rules for such
nomination! $n other words if he%she has a family, nomination should be in favour of a member=s> of the
family! $f he%she has no family he%she can nominate anyone he%she wishes!
1!@ :o< ma*) )ea,2 2e,3.ce .2 ,eD-.,e4 to 6e e1.g.61e to ,ece.3e mem6e, 0e*2.o*;
Minimum 1. years eliible service will entitle for member pension!
1"@ Em01o)ee .2 a mem6e, of Em01o)ee2E Pe*2.o* Scheme. :e=She ha2 1eft em01o)me*t at "& ),2.
of age a*4 & ),2. of 2e,3.ce. Whe* 2ha11 he=2he ,ece.3e h.2=he, 0e*2.o*;
(e%3he can ta*e either withdrawal benefit or can ta*e scheme certificate so that the 9 years service can be
added to any future service that he % she may put in, in any other covered establishment! <y virtue of bein
a holder of a scheme certificate, if the member dies before 59 years widow % widower and children shall be
entitled for pension!
1#@ What .2 0a2t 2e,3.ce 0e*2.o*;
1his pension is for the period of membership of the +mployees8 "amily Pension 3cheme, 1941!
1$@ Whe* 4oe2 a* em01o)ee 6ecome e1.g.61e to 6ecome a mem6e, of Em01o)ee2E P,o3.4e*t F-*4
Scheme/ 1'# a*4 Em01o)ee2E De0o2.t L.*?e4 I*2-,a*ce Scheme/ 1'%$;
An employee becomes a member of +mployees Provident "und =+mployees8 Provident "und> 3cheme,
1952 % +mployees ?eposit 2in*ed $nsurance =+mployees8 ?eposit 2in*ed $nsurance> 3cheme, 1946
immediately on 5oinin an establishment covered under the +mployees Provident "unds / Miscellaneous
Provision Act, 1952!
1%@ What .2 *om.*at.o*;
+very member has to ive the details of himself / details of the nominee for +mployees8 Provident "und /
+mployees8 ?eposit 2in*ed $nsurance 3chemes and details of family for +mployees Pension 3cheme,
1995 in form no! 2!
A member if, is havin a family can nominate any one or more persons to receive the Provident "und on
his death! $n case of him havin no family he can nominate any other person!
"amily for the purpose of +mployee Provident "und 3cheme852 means wife%husband, children, whether
married or unmarried, includin adopted children, if adoption is reconi@ed and dependant parents of
member!
+mployees ?eposit 2in*ed $nsurance 3cheme benefit will be paid to the nominee under +mployees
Provident "und 3cheme, 1952!
"or the purpose of +mployees Pension 3cheme, 1995 the member has to furnish the details, such as
name, relationship / ae of all the family members in the form no! 2! "amily for the purpose of +mployees
Pension 3cheme, 1995 means wife%husband / children! Ahenever member wants to ma*e a chane in the
5
nomination already made for Provident "und, or to update the details of family for +mployees Pension
3cheme, 1995, he has to send a revised form no! 2! 1he form no!2 is routed throuh the employer!
1&@ What a,e the 0e,.o4.ca1 ,et-,*2 to 6e 2e*t 6) a* em01o)e, to the P,o3.4e*t F-*4 Off.ce;
1he employer of an un7e0empted establishment has to forward the followin returns! 1hese returns will
include details re'uired under the three schemes namely, +mployees Provident "und 3cheme, 1952,
+mployee ?eposit 2in*ed $nsurance 3cheme, 1946 and +mployee Pension 3cheme, 1995!
a@ Fo,m9'FRe3.2e4@G
1he details of employees enrolled as members of +mployees8 Provident "und3852, +mployees8 ?eposit
2in*ed $nsurance846 / +mployees8 Pension 3cheme895 on coverae of the establishment7 1his is to be
submitted immediately after coverae, within 15 days of coverae!
6@ Fo,m91AG
1he details of the contributions recovered form the members / paid alon with details of employers8
contribution / administrative chares7 1his is to be submitted monthly by 25th of followin month!
c@ Fo,m9#G
1he details of the employees enrolled newly to the Provident "und7 1o be submitted alon with "orm712A
every month within 15 days of the followin month!
4@ Fo,m91(G
1he details of the employees leavin service durin the month7 1o be submitted alon with form712A!
e@ Cha11a*2G
1he triplicate copy of challans in to*en of havin remitted the Provident "und dues in the ban*7 to be
submitted alon with form712A every month!
f@ Fo,m9 FRe3.2e4@G
#omination form7 1o be submitted alon with form75%9!
g@ Fo,m9!AG
1he details of waes / contributions in respect of each member, to be prepared financial year wise7 1o be
submitted to the Provident "und office by :.th of April every year!
h@ Fo,m9$AG
&early consolidated statement of contributions7 1o be forwarded yearly alon with form7:A! $t should be
ensured that all the form7:A are entered in form76A, irrespective of whether the form7:A was forwarded for
the bro*en period and the total dues as per the form712A for the whole year arees with the total of form7
6A within :.th April!
.@ Fo,m9#AG
)eturn of ownership of the establishment7 1o be forwarded immediately after coverae / whenever there
is a chane in the ownership, it has to be intimated with in 15 days of chane!
A@ S0ec.me* 2.g*at-,eG
6
3pecimen sinature of the officer%officers who are authori@ed to sin the returns%documents relatin to
Provident "und forwarded immediately after coverae / whenever there is a chane in
authori@ed officer!
1'@ What .2 the 0,oce4-,e to 6e fo11o<e4 6) the mem6e, .f the em01o)e, .2 *ot atte2t.*g h.2 c1a.m
fo,m2;
$t is the duty of the employer under the Act / 3cheme to help +mployees8 Provident "und oranisation to
settle the Provident "und dues of his employees! (e has to complete the prescribed application within 5
days of receipt Bpara42 =5>C forms / hand over it to the member when he leaves the service! Ahen a
member finds difficult to et the form attested by the employer, he can et the attestation of any of the
followin officer / send to the Provident "und office!
5a*age, of a 6a*?.
B) a*) gaHette4 off.ce,.
5em6e, of the Ce*t,a1 Boa,4 of T,-2tee2. = Comm.ttee= Reg.o*a1 Comm.ttee FEm01o)ee2 BP,o3.4e*t
F-*4 O,ga*.Hat.o*@.
5ag.2t,ate= Po2t= S-6 Po2t 5a2te,= P,e2.4e*t of I.11age Pa*cha)at= Nota,) P-61.c.
(@ What .2 the mo4e of 0a)me*t of P,o3.4e*t F-*4 a*4 Em01o)ee2E De0o2.t L.*?e4 I*2-,a*ce
4-e2;
Provident "und / +mployees8 ?eposit 2in*ed $nsurance dues is paid by money order% by deposit in payees8
ban* a%c% throuh employer% by depositin the che'ue in payees8 name or part of amount in annuity
scheme in any nationali@ed ban*! Payment by money order is allowed where the amount is not more than
)s! 2...%7!
1@ What a,e the mo4a1.t.e2 to 6e fo11o<e4 fo, 0a)me*t th,o-gh cheD-e;
1he member has to open an account in the nationali@ed ban*, scheduled ban*, urban ban* or post office
savins ban*! (e has to furnish the details of ban* a%c no! with the full address of the ban* in application
form! An advance stamped receipt has also to be anne0ed in the form!
"or receipt of pension member%claimant has to open an account only in 3tate <an* of $ndia or Pun5ab
#ational <an*!
@ I* ca2e of ,et-,*.*g of cheD-e <hat .2 the 0,oce4-,e to 6e fo11o<e4;
Generally the che'ues are returned by the ban*ers when the a%c number is furnished incorrect or a%c has
been closed! ;n receipt of the che'ue from the ban*ers the Provident "und office will write to the member
/ employer about the fact / re'uest them to intimate the ban*, a%c number / detailed address! $n case, the
member comes to *now about returnin of the che'ue before this, he can write to the Provident "und office
throuh his former employer reardin his present address / ban* a%c number!
!@ What .2 the t.me ta?e* fo, 4.20o2a1 of the a001.cat.o* .* the P,o3.4e*t F-*4 off.ce;
1he claims received complete in all respects are disposed off within a ma0imum period of :. days from the
date of receipt of claims in the office! $n case the member is not hearin anythin about his application
within :. days, he can approach the Public )elation ;fficer!
"@ What .2 the 3o1-*ta,) ,ate of P,o3.4e*t F-*4 co*t,.6-t.o* 6) the mem6e,;
As per the Act, the member has to contribute at the rate of 1.D or 12D of his basic pay, ?!A! / retainin
allowance if any! $n case the member wants to contribute more than this, voluntarily he can do so at any
rate he desires! i!e! upto 1..D of basic and ?!A! <ut the employer is not bound to contribute at the
enhanced rate!
I*2t,-ct.o*2 fo, a mem6e, <h.1e 2e*4.*g a001.cat.o* to Em01o)ee2E P,o3.4e*t F-*4.
Ese the appropriate form for claimin Provident "und Pension, withdrawal benefit%scheme certificate,
+mployees8 ?eposit 2in*ed $nsurance benefit, etc! as iven below: 7
Fo,m91'G 1o claim final settlement of Provident "und by a member!
Fo,m9(G 1o claim Provident "und by nominee%leal heir on death of the member!
7
Fo,m91(9DG 1o claim pension! =$n duplicate: $f within state, $n triplicate: $f outside state!>
Fo,m91(9CG 1o claim withdrawal benefit%scheme certificate under +mployees8 Pension 3cheme 895!
Fo,m9#IFG 1o claim assurance benefit under +mployees8 ?eposit 2in*ed $nsurance 846 by
nominee%leal heir of a member!
Fo,m9!1G 1o claim temporary withdrawal%advance under +mployees8 Provident "und scheme
852!
Fo,m91!G 1o effect transfer of Provident "und%Pension from one A%, to another!
+nsure that all columns of the application are filled completely!
$nformation in the application form relatin to name, a%c no! should aree with the details available with
+mployees8 Provident "und ;rani@ationF which were furnished by the employer at the time of enrollin
to Provident "und!
Application should be sined by the member%claimant!
$t should be attested by the former employer! $n case attestation by the former employer is not
possible,
it should be ot attested by any other authori@ed official specified with application form!
Application for final settlement can be sent by a member on completion of 2 months from the date of
leavin service, if the reason for leavin service is other than superannuation, medical round,
retrenchment and G!)!3!% "emale members ettin married etc!
?esired mode of payment can be iven leibly, if the amount involved is more than )s! 2...%7! 1he
amount will be sent by deposit in payees8 ban* a%c! 1o facilitate this, <an* a%c no!, name and address
of the ban* should be furnished! An advance stamped receipt should also accompany this application!
Application may be supported by the return "orm71., showin the details of leavin service and details
of contribution for the year in "orm7:A, if not sent earlier by the employer!
3pecific additional re'uirements:
A@ Death ca2e2G
#ominee%leal heir should apply in "orm72. %"orm71.7? %"orm75$"!
$f the member has not e0ecuted any nomination, application should be supported by certificate
of family members issued by employer%revenue official%sworn in an affidavit by the family%
member%leal certificate from a court of law!
?eath certificate of the member!
,ertificate of the employer statin whether the death was while in service of the member or not!
B@ Pe*2.o* ca2e2G
Hoint photoraph of member%spouse or the claimant should accompany the application!
;ption for return of capital%commutation should be specified clearly!
?etails of non7contributory period durin the service, waes%salary for last 12 months should
also accompany, if not already sent!
?etails of the branch of the specified ban* may be iven leibly!
?ate of birth certificates of children
$n case of death away from service, an underta*in by the claimant to the effect that the
member was not wor*in % had not wor*ed in any other covered establishment after e0it from
the establishment on the basis of which pension is bein claimed!
Bac? to Co*te*t2 Page
8
T:E E5PLOYEE PROIIDENT FUND > 5P ACT/ 1'#
Q1@ What .2 the Co*t,.6-t.o* fo, P,o3.4e*t F-*4 6oth 6) the Em01o)e, > Em01o)ee;
Ans: 1he +mployee contributes 12D of his %her <asic 3alary / the same amount is contributed by the
+mployer!
Q@ I2 .t Com0-12o,) fo, the a11 the em01o)ee2 to co*t,.6-te to the P,o3.4e*t F-*4;
Ans: +mployees drawin basic salary upto )s 65..%7 have to compulsory contribute to the Provident fund and
employees drawin above )s 65.1%7 have an option to become member of the Provident "und!
Q!@ I2 .t 6e*ef.c.a1 fo, em01o)ee2 <ho 4,a< 2a1a,) a6o3e R2 $#(1=9 to 6ecome mem6e, of P,o3.4e*t
F-*4;
A*2G Ye2 6eca-2e 0,o3.4e*t f-*4 co*t,.6-t.o* 6) the em01o)e, > em01o)ee .2 *ot a ta7a61e .*come fo,
I*come Ta7 0-,0o2e.
Q"@ What .f a* em01o)ee <h.1e Ao.*.*g e2ta61.2hme*t ha2 a 6a2.c 2a1a,) of R2 "(( a*4 afte, 2ome
0e,.o4 of t.me h.2 6a2.c 2a1a,) .*c,ea2e2 a6o3e R2 $#(1=9/ 4oe2 he ha3e a* o0t.o* to te,m.*ate
h.2 mem6e, 2h.0 fo,m the P,o3.4e*t f-*4 act;
Ans: +mployee who while 5oinin the oranisation has a basic salary above )s 65.1%7 have an option to either
become or avoid becomin member of Provident fund but employees whose basic salary while 5oinin the
orani@ation is less then )s 65.1%7 but after some period of time their basic increases above )s 65.1%7
have
to compulsorily continue to be member of provident "und!

Q#@ What .2 the co*t,.6-t.o* 0e,ce*tage to the P,o3.4e*t f-*4 a*4 Pe*2.o* Scheme;
Ans: +mployeeIs contribution of 12D of basic salary is totally deposited in provident fund account
whereas out of +mployerIs contribution of 12D, :!64D is contributed to Provident fund and 9!::D is
deposited in Pension scheme!
Q$@ Wh.ch fo,m ha2 to 6e f.11e4 <h.1e 6ecom.*g mem6e, of 0,o3.4e*t f-*4;
Ans: #omination "orm #o 2 has to be filled to become a member of the Provident fund, form is available
with () department!
Q%@ Wh.ch fo,m ha2 to 6e f.11e4 <h.1e t,a*2fe,,.*g 0,o3.4e*t f-*4 4e0o2.t;
Ans: &ou 5ust have to fill form no 1: to transfer your P!" amount!
Q&@ What .2 the 0,o3.2.o* of the 2cheme .* the matte, of *om.*at.o* 6) a mem6e,;
Ans: +ach member has to ma*e a nomination to receive the amount standin to his credit in the fund in the
event of his death! $f he has a family, he has to nominate one or more person belonin to his family and
none other! $f he has no family he can nominate any person or persons of his choice but if he subse'uently
ac'uires family, such nomination becomes invalid and he will have to ma*e a fresh nomination of one or
more persons belonin to his family! &ou cannot ma*e your brother your nominee as per the Acts!
Q'@ Whe* .2 a* em01o)ee e1.g.61e to e*Ao) 0e*2.o* 2cheme;
Ans: "or an employee to become eliible for Pension fund, he has to complete membership of the "und for
1. &ears!
9
Q1(@ What 4oe2 .t mea* 6) co*t.*-o-2 2e,3.ce of te* )ea,2;
Ans : Ahen we say continuous service of 1. years in +mployee Pension "und, we mean to say that durin
services, for e!!, an employee who has wor*ed with J company for say : years, then he resined from
that oranisation and 5oined & company, wherein he wor*ed for 2 years, then resined from there to 5oin
establishment for 5 years but durin these 1. years of service he has not withdrawn but transferred his
+mployee pension fund, then we say continuous service of ten years!
Q11@ Whe* ca* a* em01o)ee a3a.1 the 6e*ef.t of Em01o)ee 0e*2.o* f-*4 2cheme <h.ch he ha2
co*t,.6-te4 4-,.*g h.2 te* )ea,2 of co*t.*-e2 2e,3.ce;
Ans: An employee can avail the benefit after completion of 59 years of service!
Q1@ What ha00e*2 to the 0,o3.4e*t f-*4 > Em01o)ee Pe*2.o* f-*4 .f a* em01o)ee <ho <a*t2 to
,e2.g* f,om the 2e,3.ce 6efo,e com01et.o* of te* )ea,2 of co*t.*-e2 2e,3.ce;
Ans: +mployee can withdraw the P" accumulations by fillin "orms 19 / 1. ,, which is available with the
() department!
Q1!@ What .2 th.2 1' > 1(C fo,m;
Ans: "orm #o 19 is for Provident fund withdrawal / "orm #o! 1. , is for Pension scheme withdrawal!
Q1"@ Do <e get a*) .*te,e2t o* the amo-*t/ <h.ch .2 4e0o2.te4/ .* the P,o3.4e*t F-*4 acco-*t;
Ans: ,ompound interest as declared by the Govt! is iven for
every year of service!
Q1#@ What .2 the acco-*t.*g )ea, fo, P,o3.4e*t f-*4 acco-*t;
Ans: Accountin year is from March to "ebruary!
Q1$@ What a,e the 6e*ef.t2 0,o3.4e4 -*4e, Em01o)ee P,o3.4e*t F-*4 Scheme;
Ans: 1wo *inds of benefits are provided under the scheme7
a> Aithdrawal benefit
b> <enefit of non 7)efundable advances
Q1&@ What .2 the 0-,0o2e of the Em01o)eeE2 Pe*2.o* Scheme;
Ans: 1he purpose of the scheme is to provide for
1> 3uperannuation pension!
2> )etirin Pension!
:> Permanent 1otal disablement Pension
3uperannuation Pension: Member who has rendered eliible service of 2. years and retires on attainin
the ae of 59 years!
)etirement Pension: member who has rendered eliible service of 2. years and retires or otherwise
ceases to be in employment before attainin the ae of 59 years!
3hort service Pension: Member has to render eliible service of 1. years and more but less than 2. years!
Q1'@ :o< m-ch t.me 4oe2 .t ta?e2 to ,ece.3e P.F > 0e*2.o* mo*e) .f a* em01o)ee ,e2.g*2 f,om the
Se,3.ce;
10
Ans: #ormally the procedure for receivin P!" / Pension money is, the employee has to fill 19 / 1. c "orm
and submit the same to P" ?es*, which is then submitted to the P!" office after two months, this two
months is nothin but a waitin period as the rules are that an employee should not be in employment for
two months after resinin if he has to withdraw his P!" amount! After completion of two months the form is
submitted to the reional provident fund ,ommissioner office after which the employee receives his
amount alon with interest within a period of 9. days!
Q(@ Do <e ,ece.3e mo*e) th,o-gh 0o2ta1 o,4e,;
Ans: Previously there was a procedure wherein member use to et P!" throuh Postal order but now while
submittin the P!" form withdrawal form you have to mention your savin <an* account #o! / the complete
address of the <an* where you hold the account!
Q1@ :o< <o-14 I ?*o< the amo-*t of acc-m-1at.o*2 .* m) PF acco-*t;
Ans: P" office sends an annual statement throuh the employer, which ives details about the P"
accumulations! 1he statement contains details li*e, ;penin balance, amount contributed durin the year,
withdrawal durin the year, interest earned and the closin balance in the P" account! 1his statement is
sent by the P" department on completion of the financial year!
Q@ <h.ch e2ta61.2hme*t2 a,e co3e,e4 6) the Act;
Ans: Any establishment, which employs 2. or more employees! +0cept apprentice and casual laborers,
every +mployee includin contract labour who is in receipt of <asicK ?A salary up to )s! 65.. p!m! is
covered by the Act!
Q!@ I* ca2e afte, ,eg.2te,.*g the e2ta61.2hme*t at a*) 0o.*t .* t.me/ the *-m6e, of em01o)ee2
<o,?.*g .* .t 6ecome2 1e22 tha* ( the* <.11 the Act a001);
Ans: Any establishment which has been covered under the Act once shall continue to be overned by
the Act even if the number of persons employed therein at any time falls below 2.!
Q"@ I2 the Act a001.ca61e to a facto,)/ <h.ch .2 c1o2e4 4o<* 6-t .2 em01o).*g a fe< em01o)ee2 to
1oo? afte, the a22et2 of the e2ta61.2hme*t;
Ans: #o, Ahere the establishment is closed down and only four security men are employed for *eepin a
watch over the assets and properties of the establishments, the Act would not be applicable!
Q#@ I2 a t,a.*ee a* em01o)ee -*4e, the Act;
Ans: &es, a trainee would be considered as an employee as per the Act but in case the trainee is an
apprentice under the Apprentice8s Act then he% she will not be considered as an employee under this Act!
Q$@ I2 .t 0o22.61e to a00ea1 the o,4e,2 of the Ce*t,a1 +o3e,*me*t o, the Ce*t,a1 P,o3.4e*t F-*4
Comm.22.o*e,;
Ans: &es, there is a body called as Provident "und Appellate 1ribunal where an employer can appeal!
Q%@ Who .2 the a-tho,.t) to 4ec.4e ,ega,4.*g the 4.20-te2 .f a*);
Ans: $n case there is a dispute reardin the applicability of the Act or the 'uantum of money to be
deducted etc! the authority to decide are the
i> ,entral Provident "und ,ommissioner,
ii> any Additional Provident "und ,ommissioner,
iii> any Additional ,entral Provident "und ,ommissioner
11
iv> any ?eputy Provident "und ,ommissioner
v> any )eional Provident "und ,ommissioner or
vi> any Assistant Provident "und ,ommissioner
Q&@ What .* ca2e the,e a,e <o,?e,2 .*3o13e4 a2 Co*t,act 1a6o-,;
Ans: $t is the responsibility of the ,ontractor to deduct the P" and submit a statement to the Principal
+mployer in the prescribed format by 4th of every month! 1he ,ompany becomes the Principal +mployer
would be responsible for the P" deduction of the wor*ers employed on contract basis!
Q'@ A,e the 0e,2o*2 em01o)e4 6) o, th,o-gh a co*t,acto, co3e,e4 -*4e, the Scheme;
Ans: Persons employed by or throuh a contractor are included in the definition of L employee L under the
+mployee8s Provident "inds Act, 1952, and as such, they are covered under the 3cheme!
Q!(@ I* ca2e the Co*t,acto, fa.12 to 4e4-ct a*4 2-6m.t the PF amo-*t f,om the co*t,act <o,?e,2
the* <hat .2 to 6e 4o*e;
A*2G The Com0a*) 6e.*g the P,.*c.0a1 em01o)e, .2 ,e20o*2.61e fo, the PF to 6e 4e4-cte4 f,om
the Co*t,act <o,?e,2 a2 <e11. I* ca2e the Co*t,acto,2 fa.12 to 4e4-ct a*4 2-6m.t the PF 4-e2 the*
the Com0a*) ha2 to 0a) the amo-*t a*4 ca* 1ate, o* ,eco3e, the amo-*t f,om the Co*t,acto,.
Q!1@ Co-14 the em01o)e, 6e 0-*.2he4 .* ca2e the ,em.tta*ce of co*t,.6-t.o* 6) h.m .2 4e1a)e4
.* a Ba*? o, 0o2t off.ce;
Ans: +mployer cannot be punished or penali@ed in case there is a delay in the remittance of the
contribution on account of delay in <an* or post office!
Q!@ What ha00e*2 .* ca2e the,e .2 a 2a1a,) ,e3.2.o* a*4 a ,a.2e .* the 6a2.c 2a1a,) of the em01o)ee
a*4 a,,ea,2 *ee4 to 6e 0a.4/ Do <e *ee4 to 4e4-ct PF f,om the a,,ea,2 a2 <e11;
Ans: Arrears are considered to be emoluments earned by the employee and P" is to be deducted from
such arrears!
Q!!@ I2 .t 0o22.61e fo, a* em01o)ee to co*t,.6-te at a h.ghe, ,ate of .*te,e2t tha* 1 J;
Ans: &es, if an employee desires to contribute an amount at a hiher rate of interest than 12 D of basic
salary then they can do so but it does not become obliatory for the employer to pay anythin above than
12 D! 1his is called voluntary contribution and a Hoint ?eclaration "orm needs to be filled up where the
employer and the employee both have to ive a declaration as to the rate at which P" would be
deducted!
Q!"@ What .2 the .*te,e2t o* the PF acc-m-1at.o*2;
Ans: ,ompound interest as declared by ,entral Govt! is paid on the amount standin to the credit of an
employee as on 1st April every year!
Bac? to Co*te*t2 Page
12
SPECIAL PROIISION FOR INTERNATIONAL WORKERS W.E.F 11
th
NOI ((&
1@ Who .2 a* I*te,*at.o*a1 <o,?e,;
An $nternational wor*er may be an $ndian wor*er or a forein national!
1his means an $ndian wor*er who has divided his%her career between $ndia and another country with whom
$ndia has entered into a bilateral 3ocial 3ecurity areement or a forein national wor*in in $ndia! =Para 2
ff>

@ Who .2 a* Be7c1-4e4 em01o)eeC -*4e, the2e 0,o3.2.o*2;
A Mdetached wor*erI posted in an establishment in $ndia but contributin to the social security proramme of
the source country in terms of the bilateral 3ocial 3ecurity areement sined between that country and
$ndia shall be an Me0cluded employeeI under these provisions! =Para 2 f>

!@ Who .2 a B4etache4 <o,?e,C;
An $nternational wor*er, bein not an $ndian employee, contributin to the social security proramme of the
source country in terms of the bilateral 3ocial 3ecurity areement sined between that country and $ndia
and e0empt from ma*in any contribution to the $ndian system for the period and terms as set out in such
an areement is a Mdetached wor*erI for the purpose of compliance under the $ndian system! =Para 2 f>
"@ What 4oe2 the te,m BI*4.a* em01o)eeC mea*;
An employee, holdin or entitled to hold an $ndian passport and employed by an establishment covered
under the +P" and MP Act, 1952 is an $ndian employee under the 3pecial provisions in respect of
$nternational wor*ers! BPara 2 ff =a>C
#@ Who a11 2ha11 6ecome the mem6e,2 of the f-*4;
a> +very $nternational wor*er, other than an Me0cluded employeeI 7 from 1st #ov!2..9!
b> +very e0cluded employee, on ceasin the status, 7 from the beinnin of the month followin that in
which he%she losses the status! =Para 26>

$@ Wh.ch catego,) of e2ta61.2hme*t2 2ha11 ta?e cog*.Ha*ce of the2e 0,o3.2.o*2;
All such establishments covered%coverable under the +mployeesI Provident "und and Miscellaneous
Provisions Act, 1952 that employ M$nternational wor*ersI either in $ndia or abroad shall ta*e coni@ance of
these provisions! =Para 26>
%@ Whethe, PF ,-1e2 <.11 a001) to a* em01o)ee .f h.2 2a1a,) .2 0a.4 o-t2.4e I*4.a;
&es, the provisions will apply irrespective of where the salary is paid! =Para :.>
&@ Whethe, PF <.11 6e 0a)a61e o*1) o* the 0a,t of 2a1a,) 0a.4 .* I*4.a .* ca2e of 201.t 0a),o11;
$n case of split payroll the contribution shall be paid on the total salary earned by the employee! =Para 29>
13
'@ B5o*th1) Pa)C fo, ca1c-1at.*g co*t,.6-t.o*2 to 6e 0a.4 -*4e, the Act;
1he monthly pay shall be the pay as specified under Para 29 of the +P" 3cheme, 1952, which covers:
N <asic waes =all emoluments paid or payable in cash while on duty or on leave % holiday e0cept ?earness
allowance, (ouse rent allowance, overtime allowance, bonus, commission or any other similar allowance
payable in respect of employment and any presents made by the employer>
N ?earness allowance =all cash payments by whatever name called paid to an employee on account of a
rise in the cost of livin>
N )etainin allowance
N ,ash value of any food concession
1(@ What 0o,t.o* of 2a1a,) o* <h.ch PF <o-14 6e 0a)a61e .* ca2e a* .*4.3.4-a1 ha2 m-1t.01e co-*t,)
,e20o*2.6.1.t.e2 a*4 20e*42 2ome 0a,t of h.2 t.me o-t2.4e I*4.a;
,ontribution is payable on the total salary payable on account of the employment of the employee
employed for waes by establishment covered in $ndia even for responsibility outside $ndia also!B3ection 2
=b>C
11@ I2 the,e a m.*.m-m 0e,.o4 of 4a)2 of 2ta) .* I*4.a/ <h.ch the em01o)ee ca* <o,? .* I*4.a
<.tho-t t,.gge,.*g PF com01.a*ce;
#o, there is no any minimum period of employment in $ndia is re'uired to be eliible for membership! +very
eliible $nternational wor*er has to be enrolled from the first date of his employment in $ndia!
1@ What co*2t.t-te2 the Pe*2.o*a61e 2e,3.ce;
1he service for which contributions are received and%or receivable as also the period of service rendered
and considered as eliible under a 3ocial 3ecurity Areement that may cover an $nternational wor*er!
=Para 1. of +P3>
1!@ :o< .2 Pe*2.o*a61e 2e,3.ce 4ete,m.*e4;
Ahile the period of service for which contributions are received under the +P3 will decide the 'uantum of
pension admissible, the period of service rendered under a relevant social security areement shall be
ta*en into account only for the purpose mentioned under such areement! =Para 1. of +P3>

1"@ I2 the,e a ca0 o* the 2a1a,) -0 to <h.ch the co*t,.6-t.o* ha2 to 6e ma4e 6) 6oth the em01o)e,
a2 <e11 a2 a* em01o)ee;
#o, there is no cap on the salary up to which the contribution has to be made by both the employer as well
as an employee!
1#@ I2 the,e a ca0 o* the 2a1a,) -0 to <h.ch the em01o)e,C2 2ha,e of co*t,.6-t.o* ha2 to 6e 4.3e,te4
to EPS;
&es, the cap on the salary up to which the employerIs share of contribution has to be diverted to +P3
remains at )s!65..! =Para : of +P3>
1$@ What .2 a 2oc.a1 2ec-,.t) ag,eeme*t FSSA@;
A social security areement is a bi7lateral instrument to protect the interests of the wor*ers in the host
country! $t bein a reciprocal arranement enerally provides for avoidance of no coverae or double
coverae and e'uality of treatment with the host country wor*ers!
14
1%@ What a,e the 0,o3.2.o*2 co3e,e4 .* a 2oc.a1 2ec-,.t) ag,eeme*t;
Generally a social security areement covers : provisions! 1hey are:
a@ Detachme*t
Applies to employees sent on postin in the host country, provided he%she is complyin under the social
security system of the home country!
6@ E70o,ta6.1.t) of Pe*2.o*
Provision for payment of pension benefits to the beneficiary choosin to reside in the territory of the home
country directly with out any reduction as also to a beneficiary choosin to reside in the territory of a third
country!
c@ P,o3.2.o* fo, tota1.2at.o* of Be*ef.t2
1he period of service rendered by an employee in the host country to be counted for the OeliibilityP
purpose and the payment may be restricted to the lenth of service, on pro7rata basis!

1&@ What .2 the 2tat-2 of the SSA2;
As of today, 3ocial security areements have been sined with <elium, "rance and Germany! <ut the
date of entry into force is yet to be notified! #eotiations are at various staes with 1he #etherlands, ,@ech
)epublic, (unary, #orway, 3wit@erland, 3weden, 2u0embour, E3A and Australia! Government level
tal*s are on with many other countries where si@able numbers of $ndian wor*ers are employed! Althouh
not a formal areement, there is a reciprocal arranement between $ndia and Qorea to settle the claims of
the employees on completion of employment in the host country
1'@ Sho-14 the e1.g.61e em01o)ee2 f,om Be1g.-m/ F,a*ce a*4 +e,ma*) co*t,.6-te -*4e, the S0ec.a1
0,o3.2.o*2 t.11 2-ch t.me the B4ate of effectC .2 *ot.f.e4;
&es, the $nternational wor*ers from <elium, "rance and Germany shall be enrolled as members of +P" till
such time the Mdate of effectI is notified by the Government of $ndia and after such wor*ers obtainin a
Mdetachment certificateI from the appropriate authority in their countries, respectively! 1ill the Mdate of effectI
is notified no $ndian employee posted to these countries and none of the employees from these countries
wor*in in $ndia shall be eliible for detachment status!
(@ I*4.a* em01o)ee2 <o,?.*g a6,oa4 a*4 co*t,.6-t.*g to Soc.a1 Sec-,.t) Scheme of that co-*t,)
<.th <hom I*4.a ha2 2oc.a1 2ec-,.t) ag,eeme*t. Sho-14 the) 6e co3e,e4 fo, PF .* I*4.a o, 2ho-14 6e
t,eate4 a2 e7c1-4e4 em01o)ee;
As of today the date of effect of the 33As is yet to be notified! 1herefore, a posted employee, whose name
is retained in the pay bill maintained by the employer in $ndia, shall be covered under +P"! $f an $ndian
employee is directly employed by a local employer abroad, such an employee shall be covered by the host
country leislations!
1@ Co-14 the te,m KI*4.a* em01o)eeK mea* a*) fo,e.g* *at.o*a1 <ho .2 4.,ect1) em01o)e4 6) a*
I*4.a* e2ta61.2hme*t ..e. a 0e,2o* <ho .2 .* I*4.a *ot -*4e, a 2eco*4me*t a,,a*geme*t o, a*)
4e0-tat.o* f,om a fo,e.g* em01o)e, 6-t h.,e4 4.,ect1) 6) the I*4.a* e2ta61.2hme*t -*4e, 1oca1 te,m2
a*4 2e,3.ce co*4.t.o*2;
1he term $ndian employee shall mean only such of those employees as e0plained under R!#o -! #o
forein national can be termed an $ndian employee!
15
@ Whethe, a Th.,4 Co-*t,)FC@ Nat.o*a1 4om.c.1e4 .* a co-*t,) FB@ <.th <h.ch I*4.a FA@ ha2 a 2oc.a1
2ec-,.t) ag,eeme*t .2 e1.g.61e fo, 6e*ef.t -*4e, the 2oc.a1 2ec-,.t) ag,eeme*t 6et<ee* I*4.a a*4
that co-*t,);
#ormally social security areements are sined to cover the M#ationalsI of the respective countries!
1herefore, the above employee may be eliible for the benefit provided that the 1hird country =,> has
sined an enablin areement with both $ndia =A> as well as the 3econd country =<>!
!@ I*4.a* em01o)ee2 <o,?.*g a6,oa4 a*4 co*t,.6-t.*g to Soc.a1 Sec-,.t) Scheme of that co-*t,)
<.th <hom I*4.a DOES NOT ha3e 2oc.a1 2ec-,.t) ag,eeme*t. Sho-14 the) 6e co3e,e4 fo, PF .* I*4.a
o, 2ho-14 6e t,eate4 a2 e7c1-4e4 em01o)ee;
A posted employee, who is drawin waes from the employer in $ndia, shall be covered under +P"! $f an
$ndian employee is directly employed by a local employer abroad, such an employee shall be covered by
the host country leislations!
"@ Fo,e.g* *at.o*a12 <ho a,e em01o)e4 .* I*4.a a*4 6e.*g 0a.4 .* fo,e.g* c-,,e*c)/ <hethe, to 6e
co3e,e4 o, *ot;
&es, $nternational wor*ers drawin salary in any currency and in any manner are to be covered! =3ection 2
f>!
#@ Fo,e.g*e,2 <ho a,e em01o)e4 4.,ect1) a2 a* em01o)ee 6) a* I*4.a* e2ta61.2hme*t a6,oa4 to 6e
co3e,e4 o, *ot;
1he local employees of an $ndian establishment enaed abroad shall be covered by the local leislations
$@ Co*2.4e,.*g that .* mo2t co-*t,.e2 .22-a*ce of <o,? 0e,m.t to a* .*4.3.4-a1 .2 a t,.gge, fo,
2oc.a1 2ec-,.t) com01.a*ce/ <hethe, the 0-,0o2e a*4 t)0e of 3.2a ..e. 6-2.*e22= em01o)me*t <.11 6e
a 4ete,m.*a*t fo, a 0e,2o* to 6e co*2.4e,e4 a2 a* I*te,*at.o*a1 Wo,?e,;
1he purpose of the visit of an individual is the main determinant for social security compliance! 1he type of
visa may help in determinin the purpose of visit! "or e0ample 7 a forein national comin in to $ndia under
an employment visa is wor*in in $ndia!
%@ Whethe, 6e*ef.t of ,ec.0,oc.t) ca* 6e e7te*4e4 to a* I*te,*at.o*a1 Wo,?e, .f h.2 home co-*t,)
0,o3.4e2 fo, e7em0t.o* f,om 2oc.a1 2ec-,.t) to I*4.a* *at.o*a12 go.*g to <o,? .* that co-*t,) -*4e,
.t2 4ome2t.c 1a< e3e* tho-gh the,e .2 *o 2oc.a1 2ec-,.t) ag,eeme*t <.th I*4.a;
$n the absence of a formal areement the benefit of reciprocity is available at the time of withdrawal of the
pension claim and not at the time of coverae! =Para 1- of +P3>
&@ Whe,e <.11 the 2-,3.3o, 6e*ef.t2 6e 4e1.3e,e4 .* ca2e of a co3e,e4 em01o)ee ho14.*g a 0a220o,t/
6e.*g othe, tha* a* I*4.a* 0a220o,t/ .22-e4 6) a co-*t,) <.th <h.ch I*4.a .2 *ot ha3.*g a SSA;
$n the absence of a 33A, the survivor benefits such as widow%widower pension, children %orphan pension,
nominee%parent pension, etc! as the case may be, shall be payable to a ban* account of the eliible
beneficiary in $ndia! =Para 1- of +P3>
'@ What .2 the c,.te,.o* fo, ,ece.3.*g the <.th4,a<a1 6e*ef.t fo, the 2e,3.ce2 of 1e22 tha* 1( )ea,2
-*4e, EPS/ 1''#;
$n respect of employees hailin from the countries with which $ndia has sined a 33A, the withdrawal
benefit shall be paid or accounted for as per the provisions of the 33A! $n all other cases, it shall be uided
by the principle of reciprocity with reference to the entitlement available to $ndian employees in the other
country! =Para 1- of +P3>
16
!(@ :o< 1o*g a* I*4.a* em01o)ee ,eta.*2 the 2tat-2 of LI*te,*at.o*a1 <o,?e,M;
An $ndian employee attains the status of O$nternational wor*erP only on account of his employment in a
country with which $ndia has sined a 33A! (e shall remain in that status till the time he avails the benefits
under a social security proramme covered under that 33A! =Para 2 f>
!1@ U*4e, <hat co*4.t.o* the co*t,.6-t.o*2 ,ece.3e4 .* the PF acco-*t a,e 0a)a61e a1o*g <.th
.*te,e2t;
1he full amount standin to the credit of a memberIs account is payable if any one of the circumstances
mentioned under Para 69 of the +P" 3cheme, 1952 is fulfilled
:2> $s there a cap on the salary up to which the contribution has to be made to +?2$ 3cheme by
both the employerS
Ye2/ the ca0 o* the 2a1a,) -0 to <h.ch co*t,.6-t.o* ha2 to 6e ma4e to EDLI Scheme
,ema.*2 -*cha*ge4 at R2.$#((!
Bac? to Co*te*t2 Page
17
T:E PAY5ENT OF BONUS ACT91'$#
Q1@ What a,e the o6Aect2 of the Act;

Ans: 1his act ensures that employees have a statutory riht to share the profits of the employer!
Q@ What .2 the m.*.m-m 6o*-2 0,e2c,.6e4 6) the Act;

Ans: 1he minimum bonus prescribed by the Act is 9!:: D of annual basic salary, which is e'uivalent to
one months basic salary or )s! 1.. whichever is hiher!

Q!@ What .2 the ma7.m-m 6o*-2 0a)a61e -*4e, the Act;

Ans: 1he ma0imum bonus payable under the Act is two and a half months basic salary or 2. D of annual
basic salary!
Q"@ What .2 the a001.ca6.1.t) of the act;
Ans: 1his Act is applicable to all establishments employin 2. or more persons!

Q#@ I* ca2e afte, ,eg.2te,.*g the e2ta61.2hme*t at a*) 0o.*t .* t.me/ the *-m6e, of em01o)ee2
<o,?.*g .* .t 6ecome2 1e22 tha* ( the* <.11 the Act a001);

Ans: Any establishment which has been covered under the Act once shall continue to be overned by the
Act even if the number of persons employed therein at any time falls below 2.!

Q$@ Who a,e e*t.t1e4 to 6e 0a.4 6o*-2;

Ans: Any employee who is drawin a salary or waes up to )s! 1.,... per month and who has wor*ed for
a minimum period of :. days in a year is entitled to bonus!

Q%@ I2 a ca2-a1 <o,?e, F<ho2e Ao6 .2 *ot th,o-gho-t the )ea, 6-t o*1) fo, a fe< mo*th2@ e*t.t1e4 to
6o*-2;

Ans: 1he only criteria for bein entitled to bonus is to complete minimum period of :. days of wor* in a
year to be eliible for bonus!

Q&@ Fo, the 0-,0o2e of th.2 Act/ <hat 4oe2 the te,m L<age2M .*c1-4e;

Ans: "or the purpose of this Act waes means <asic salary K ?! A! and does not include allowances,
overtime salary, ()A, bonus, ratuity, employer8s contribution to P"!
Q'@ What .2 the t.me 1.m.t fo, a* em01o)e, to 0a) the 6o*-2;
Ans: <onus must be paid within a period of 9 months from the close of the accountin year! $f an
employee does not et the bonus due to him, he can apply to the Government!

Q1(@ Wh) ha2 the Act 20ec.f.e4 the ma7.m-m a*4 m.*.m-m 1.m.t of the 6o*-2;
Ans: 1he principle behind fi0in the ma0imum and minimum limit of the bonus is that the rate of bonus
should not fluctuate from year to year!
Q11@ Ca* a* em01o)ee ho14 o, 4e4-ct the 6o*-2 0a)a61e to a* em01o)ee.

Ans: ;nly in case the employee is found uilty of misconduct causin financial loss to the employer, then
the employer can deduct the or hold the employee8s bonus!
Q1@ I* ca2e the,e .2 a 4.20-te ,ega,4.*g the 0a)me*t of 6o*-2 the* <he* .2 the 6o*-2 0a)a61e;

18
Ans: <onus is payable to the employee within :. days of settlement of such dispute!

Q1!@ Ca* the em01o)e, ha3e a* ag,eeme*t <.th the em01o)ee fo, a 4.ffe,e*t ,ate of 0a)me*t of
6o*-2;
Ans: &es, there can be an areement between the employer and the employee for a different rate of
payment of bonus but then they need to follow the Act,i!e!, Ma0imum of 2. D of basic / minimum of 9!::
D of basic salary!

Q1"@ Wh.ch e2ta61.2hme*t2 a,e e7em0t f,om 0a).*g 6o*-2 to .t2 em01o)ee2;
Ans: Any establishment which is newly set up is e0empted from payin bonus to its employees in the first
five years! $f however the employer ains profits in the first five years then he has to pay bonus to its
employees!

Q1#@ I* ca2e the,e .2 a cha*ge .* the o<*e,2h.0 of the e2ta61.2hme*t the* .2 the e2ta61.2hme*t e7em0t
f,om 0a).*g 6o*-2;

Ans: #o, even if the ownership of the establishment has chaned it will not be considered as a newly set
up establishment and has to pay bonus!

Q1$@ Whe* .2 the em01o)ee 4.2D-a1.f.e4 to ,ece.3e 6o*-2;

Ans: Any employee who is dismissed from the services on account of fraud, riotous or violent behaviour,
theft, misappropriation, or causes damae to company properties looses his claim on bonus!

Q1%@ I* ca2e the em01o)ee .2 e*t.t1e4 to 6o*-2 of 1a2t )ea, 6-t th.2 )ea, he= 2he .2 4.2m.22e4 o*
acco-*t of theft/ f,a-4 a*4 4.2ho*e2t) the* ca* the em01o)e, ho14 the em01o)eeE2 0,e3.o-2
6o*-2;
Ans: $n such a case the employer cannot hold the due bonus of the previous year!

Q1&@ If the em01o)ee .2 1a.4 off a*4 0a.4 1a) off <age2 the* .2 the em01o)ee e*t.t1e4 to 6o*-2 fo,
the 0e,.o4 he= 2he .2 1a.4 off;

Ans: $n case of lay off the employee receives lay off waes then these waes would be considered as
waes in the purview of this Act and the employer needs to pay bonus!

Q 1'@ I* ca2e the em01o)e, ha2 a 1ot of 6,a*che2= 4e0a,tme*t2 <h.ch a,e 20,ea4 o3e, ma*) 01ace2
o, 2tate2 the* <.11 .t co*2.4e,e4 a2 2e0a,ate e2ta61.2hme*t2 o, o*e 2.*g1e e2ta61.2hme*t;

Ans: $n such cases the establishment would be considered as one sinle establishment!unless a
separate balance sheet and profit or loss account is prepared!

Bac? to Co*te*t2 Page
19
T:E 5ATERNITY BENEFIT ACT91'$1
Q1@ What .2 the 0-,0o2e of th.2 Act;
Ans: 1he purpose of this Act is to reulate the employment of women wor*ers for certain period before
and after childbirth!
Q@ To <h.ch e2ta61.2hme*t2 .2 the Act a001.ca61e;
Ans: 1his Act is applicable to every establishment employin 1. or more persons!

Q!@ To <h.ch em01o)ee2 .2 the Act a001.ca61e;
Ans: 1his act is applicable to female employees who are employed whether on reular employment or on
casual basis!
Q"@ A,e 4a.1) <age2 em01o)ee2 e*t.t1e4 to mate,*.t) 6e*ef.t -*4e, th.2 Act;
Ans: "emale employees employed as casual employees% daily rated employees are also entitled to
maternity benefit under this Act!

Q#@ To <hom .2 the mate,*.t) 6e*ef.t 0a)a61e .* ca2e of 4eath of a* em01o)ee;
Ans: $n case of death of an employee maternity benefit is payable to the person nominated by or the
leal heir of the woman!

Q$@ Ca* a <oma* 6e te,m.*ate4 <he* 2he .2 o* mate,*.t) 1ea3e;
Ans: A woman cannot be terminated when she is on maternity leave!

Q%@ What .2 the 0e,.o4 fo, <h.ch a <oma* .2 e*t.t1e4 to mate,*.t) 6e*ef.t;
Ans: A woman is entitled to maternity benefit of 12 wee*s, si0 wee*s before and si0 wee*s after the due
date of delivery!

Q&@ What .2 the e1.g.6.1.t) of a* em01o)ee to c1a.m mate,*.t) 6e*ef.t;
Ans: Any woman who has wor*ed for more than 9. days durin the preceedin 12 months of the date of
delivery!
Q'@ What .2 the ,ate at <h.ch the <oma* .2 e*t.t1e4 to mate,*.t) 6e*ef.t;
Ans: )ate of Maternity benefit is the rate of averae daily wae for the period she has wor*ed!

Q1(@ What .2 mea*t 6) LA3e,age Da.1) Wage2M;
Ans: Averae daily waes means the averae of the women waes payable to her for the days on which
she has wor*ed durin the period of : calendar months immediately preceedin the date from which she
absents herself!
Q11@ What .2 the mate,*.t) 6o*-2 a <oma* .2 e*t.t1e4 to;
Ans: A woman is entitled to maternity bonus of 1... )upees in case no pre7natal or postnatal care is
provided by the employer!

Q1@ I2 me4.ca1 6o*-2 0a.4 o3e, a*4 a6o3e the mate,*.t) 6e*ef.t;
20
Ans: &es, Medical bonus of )s! 1... is provided over and above the maternity benefit!
Q1!@ I2 a <oma* e*t.t1e4 to a*) 1ea3e .* ca2e of .11*e22 a,.2.*g o-t of 0,eg*a*c) 4e1.3e,);
Ans: A woman is entitled to leave with waes up to ma0imum one month for illness arisin out of
prenancy, delivery, pre7mature birth or miscarriae!!

Q1"@ I2 a <oma* e*t.t1e4 to 1ea3e <.th <age2 fo, m.2ca,,.age;
Ans: $n case of miscarriae a woman is entitled to leave with waes at the rate of maternity benefit for a
period of 6 wee*s immediately followin the date of miscarriae!
Q1#@ What .2 the e*t.t1eme*t of a <oma* .* ca2e of 5TP F5e4.ca1 Te,m.*at.o* of P,eg*a*c)@;
Ans: $n case of M1P =Medical 1ermination of Prenancy> a woman is entitled to leave with waes at the
rate of maternity benefit for a period of 6 wee*s immediately followin the date of M1P!

Q1$@ I2 .t *ece22a,) fo, a <oma* to <o,? fo, &( 4a)2 .* the 0,ecee4.*g 1 mo*th2 to c1a.m 6e*ef.t
.* ca2e of 5TP o, m.2ca,,.age;
Ans: #o, there is no such condition laid out for a woman to claim benefit in case of M1P or miscarriae!
Q1%@ I* 6,.ef/ <hat a,e the o61.gat.o*2 of the em01o)e,;
Ans: 1he employer is re'uired to:
1!+0hibit an abstract of the Act in the establishments
2!Maintain a muster roll
:!3ubmit annual returns

Q1&@ What .2 the 1ea3e e*t.t1eme*t fo, t-6ectom) o0e,at.o*;
Ans: $n case of tubectomy operation, a woman is entitled to maternity benefit for a period of two wee*s
immediately followin the day of her operation!

Bac? to Co*te*t2 Page
T:E CONTRACT LABOUR RE+ULATION > ABOLITION ACT91'%(
Q1@ What .2 the 0o1.c) go3e,*.*g th.2 Act;
21
Ans: 1he policy of this Act is to prohibit the employment of contract labour in certain employments /
overn the wor*in conditions and provide health and welfare facilities to the ,ontract 2abour!

Q@ To <hom .2 th.2 Act a001.ca61e;
Ans: 1his Act is applicable to every establishment where 2. or more wor*men are employed as ,ontract
labour or every contractor employin 2. or more wor*men! $n certain 3tates it is applicable to 1. or more
wor*men! =3tate Amendments>!

Q!@ A,e the,e a*) e2ta61.2hme*t2 to <h.ch th.2 Act .2 *ot a001.ca61e;
Ans: 1his Act is not applicable to establishments performin wor* only of an intermittent or casual nature!

Q"@ What .2 the 0,.ma,) 4-t) of the co*t,acto,;
Ans: 1he primary duty of the ,ontractor is to obtain a license as per the Act

Q#@ What .2 the 0,.ma,) 4-t) of the 0,.*c.0a1 em01o)e,;
Ans: 1he principal employer needs to et his establishment reistered under the Act!

Q$@ What .2 the 0,oce4-,e fo, o6ta.*.*g a 1.ce*2e -*4e, the Act;
Ans: 1he contractor needs to apply in the prescribed format and pay the necessary fees and security
deposit to the 2icensin ;fficer under the Act! 1he security deposit is refundable!

Q% What a6o-t the 3a1.4.t) of the 1.ce*2e;
Ans: 1he license is valid for a year and it needs to be renewed every year! 1he application for license
should be made within 6. days of the date of e0piry of the license!

Q & What .* ca2e the ,eg.2t,at.o* ce,t.f.cate o, the 1.ce*2e .2 1o2t;
Ans: $n case of loss of the reistration certificate or the license a duplicate should be obtained from the
licensin officer on payment of prescribed fees!

Q' What .* ca2e the em01o)e, 4oe2*Ct ta?e the ce,t.f.cate of Reg.2t,at.o* ;
Ans: $n case the employer has not obtained the certificate of )eistration then he would be considered
as a Principal employer for all the wor*er employed as ,ontract labour!

Q1( What .2 the 1.a6.1.t) fo, the P,.*c.0a1 em01o)e, .* ca2e the co*t,acto, fa.12 to 0,o3.4e the 2a1a,)
a*4 <e1fa,e fac.1.t.e2 a2 0e, the Act;
Ans: 1he Principal +mployer would be responsible for the payment of waes to the ,ontract 2abour and
inurn the Principal +mployer can recover such amount from the payment due to the ,ontractor!

Q11 A2 0e, the Act <hat a,e the fac.1.t.e2/ <h.ch a,e to 6e 0,o3.4e4 to the co*t,act 1a6o-, > 6)
<hom;
22
Ans: A contractor is re'uired to provide canteens, rest room, latrines, urinals, drin*in waters, washin
facilities, and first aid bo0es to the contract labour / in case the contractor fails to provide these facilities
it is the responsibility of the principal employer to provide the same!

Q1. What a,e the 0o<e,2 of the .*20ecto,2 a00o.*te4 -*4e, the act;
Ans: An inspector can enter any premise where contract labour is employed and e0amine any reister,
record or notices! (e can e0amine any wor*man employed in the premise and as* them about their wor*
and payment! (e can also sei@e or ta*e copies of any reister, record of aes or notices!

Q1!. What ?.*4 of ,et-,*2 *ee4 to 6e 2-6m.tte4 6) the 0,.*c.0a1 em01o)e,;
Ans: 1he principal employer needs to send annual returns in the prescribed form to the reisterin officer
not later than 15th "eb of every year!

Q1". What ?.*4 of ,et-,*2 *ee4 to 6e 2-6m.tte4 6) the co*t,acto,;
Ans: +very contractor is re'uired to send to the licensin officer half yearly return in the prescribed form
not later than :1st Huly / :1Han of every year!

Bac? to Co*te*t2 Page
23
T:E E5PLOYEE STATE INSURANCE ACT/ 1'"&
1. What .2 E.S.I. Scheme;
$n addition to necessities of food, clothin, housin etc!, man needs security in times of physical and
economic distress conse'uent upon sic*ness, disablement etc! 1he +mployeesI 3tate $nsurance
3cheme is an interated measure of 3ocial $nsurance embodied in the +mployeesI 3tate $nsurance Act
and is desined to accomplish the tas* of protectin MemployeesI as defined in the +mployeesI 3tate
$nsurance Act aainst the ha@ards of sic*ness, maternity, disablement and death due to employment
in5ury and to provide medical care to insured persons and their families! 1he 3cheme covers employees
of non7seasonal power7usin factories employin 1. or more persons! 1here is, however, a built7in
provision for its e0tension to other establishments or classes of establishments, industrial, commercial,
aricultural or otherwise! 1he 3cheme has been proressively e0tended to cover employees in non7
power usin factories employin 2. or more persons and to commercial establishments!
. :o< 4oe2 the Em01o)ee2C State I*2-,a*ce Scheme a22.2t )o-;
1he dependence of an individual on cash income is a characteristic feature of modern economy! An
interruption of money income even for a small period is, therefore, a hardshipF a proloned loss of
income is indeed a catastrophe! <y comin forward to provide health protection and income maintenance
in a series of oft7e0perienced continencies li*e sic*ness, maternity, disablement and death due to
employment in5ury, the +mployeesI 3tate $nsurance 3cheme tends to ameliorate your economic an0iety
and to be a friend in need and distress!
!. Wh) .2 .t ca11e4 a :ea1th I*2-,a*ce Scheme;
1he +mployeesI 3tate $nsurance 3cheme performs a dual roleF by providin assistance in *ind =medical
care> it tries to restore your health and wor*in capacity and by assistance in cash =cash benefit> it tries
to sustain you when your income is interrupted! Aith a better and facile health protection, reater vitality,
and assurance of income7maintenance in times of need, it ma*es you every inch a better, a healthier,
secure wor*er and therefore, a happier man! 1he assistance comes to you not as an act of benevolence
but in virtue of an ac'uired riht!
". Who a4m.*.2te,2 the Em01o)ee2C State I*2-,a*ce Scheme;
1he +mployeesI 3tate $nsurance 3cheme is administered by a corporate body called the +mployeesI
3tate $nsurance ,orporation =+3$,>, which has members representin +mployees, +mployers, the
,entral Government, 3tate Governments, Medical Profession and the Parliament! 1he ?irector General
is the ,hief +0ecutive ;fficer of the ,orporation and is also an e07officio member of the ,orporation! 1he
other bodies at the national level are the 3tandin ,ommittee =a representative body of the ,orporation>
and the Medical <enefit ,ouncil, a speciali@ed body which advises the ,orporation on administration of
Medical <enefit! At the )eional and 2ocal levels, the )eional <oards and 2ocal ,ommittees have been
constituted! 1here is, thus, an association of interests and interest roups at all levels!
+3$, is the trustee of the interests of the insured persons! $t dischares its obliations and duties throuh
a networ* of )eional ;ffices and 2ocal ;ffices, (ospitals and ?ispensaries spread over the entire
country!
#. Whom 4oe2 the Scheme 0,otect;
1he 3cheme protects all OemployeesP enaed on a monthly remuneration not e0ceedin )s! 1.,...%7 in
a factory%establishment to which the Act applies! Persons employed for waes on any wor* connected
with the administration of the factory or establishment or any part, department or branch thereof or
purchase of raw materials, or distribution or sale of the product of a factory or establishment are also
covered! Mines, )ailway )unnin 3heds, #aval, Military and Air "orce Aor*shops and specified
seasonal factories are e0cluded! 1he scheme also provides full medical cover to the dependants of
insured persons! $n the event of death of an insured person due to employment in5ury dependants
become eliible to cash benefit!
$. Whe,e 4o Em01o)ee2C State I*2-,a*ce F-*42 come f,om;
24
1he +mployeesI 3tate $nsurance "unds are primarily built out of employers contribution and employees
contribution payable monthly as a fi0ed percentae of waes!
%. :o< a,e the em01o)ee2 ,eg.2te,e4 -*4e, the Scheme;
3imultaneously with his%her entry into employment in a covered factory or establishment, an employee is
re'uired to fill in a ?eclaration "orm! 1he employee is then allotted a )eistration #umber, which
distinuishes and identifies the person for the purposes of the 3cheme! A person is reistered once and
once only upon his entry in insurable employment!
&. What .2 a* I4e*t.t) Ca,4;
;n reistration every insured person is provided with a O1emporary $dentification ,ertificateP which is
valid ordinarily for a period of : months but may be e0tended, if necessary, for a further period of :
months! Aithin this period, the $nsured Person is iven a permanent Ofamily photo $dentity ,ardP in
e0chane for the ,ertificate! 1he $dentity ,ard serves as a means of identification and has to be
produced at the time of claimin medical care at the dispensary%clinic and cash benefit at the 2ocal ;ffice
of the ,orporation! $n the event of chane of employment, it should be produced before the new
employer as evidence of reistration under the 3cheme to prevent any duplicate reistration! 1he $dentity
,ard bears the sinatures%thumb impression of the insured person!
3ince medical benefit is also available to the families of insured persons, the particulars of family
members entitled to Medical <enefit are also iven in the $dentity ,ard affi0ed with a postcard si@e family
photo!
$f you lose your $dentity ,ard before it has run its normal life, a duplicate card is issued on payment as
prescribed!
'. What a,e the ,ate2 of co*t,.6-t.o*;
,ontributions payable in respect of an employee comprise of employerIs contribution and employeeIs
contribution prescribed in 3chedule $ of the Act!
An employee covered under the scheme has to contribute 1!45D of the waes whereasF an employer
contributes -!45D of the waes payable to an employee! 1he total contribution in respect of an employee
thus wor*s out to 6!5.D of the waes payable!
1(. Who .2 e7em0te4 f,om 0a)me*t of co*t,.6-t.o*;
+mployees earnin less than )s -.%7 a day are e0empted from payment of contribution! 1he employers
share of contribution is, however, payable!
11. :o< a,e the Co*t,.6-t.o*2 co11ecte4;
1he ,ontribution is deposited by the +mployer in cash or by che'ue at the desinated branches of some
nationali@ed ban*s! 1he responsibility for payment of all contributions is that of the employer with a riht
to deduct the +mployeesI share of contributions from employeesI waes relatin to the period in respect
of which the ,ontribution is payable!
1. What a,e BCo*t,.6-t.o* Pe,.o42C a*4 BBe*ef.t Pe,.o42;
Aor*ers, covered under the +3$ Act, are re'uired to pay contribution towards the scheme on a monthly
basis! A contribution period means a si07month time span from 1st April to :.th 3eptember and 1st
;ctober to :1st March! 1hus, in a financial year there are two contribution periods of si0 months duration!
,ash benefits under the scheme are enerally lin*ed with contributions paid! 1he benefit period starts
three months after the closure of a contribution period! 1he two types of periods are illucidated below: T
Co*t,.6-t.o* Pe,.o4 Co,,e20o*4.*g Be*ef.t 0e,.o4
1st April to :.th 3eptember 1st Hanuary to :.th Hune of the
"ollowin &ear
1st ;ctober to :1st March
1st Huly to :1st ?ecember
25
1!. What .2 a Loca1 Off.ce;
A networ* of 2ocal ;ffices has been established by the ,orporation in all implemented areas to disburse
all claims for sic*ness, maternity, disablement and dependentsI benefit! 1he 2ocal ;ffice also answers all
doubts and en'uiries and assists otherwise in fillin in claim forms and completin other action
necessary in connection with the settlement of claims! 1hese offices also interact with the employers of
the area! 1he 2ocal ;ffices are manaed by a Manaer and wor* under the direction and control of the
)eional ;ffices!
1". What 4oe2 BS.c?*e22 Be*ef.tC mea*;
3ic*ness sinifies a state of health necessitatin medical treatment and attendance and abstention from
wor* on medical rounds! "inancial support e0tended by the ,orporation is such a continency is called
3ic*ness <enefit!
1#. What a,e the Co*t,.6-to,) Co*4.t.o*2;
1he contribution condition re'uired to be fulfilled for admissibility of sic*ness benefit durin any benefit
period is that contributions should have been paid in respect of an insured person in the correspondin
contribution period for not less than 49 days!
1$. :o< m-ch .2 the Sta*4a,4 Be*ef.t Rate;
1he daily rate of 3ic*ness <enefit durin any benefit period is the Ostandard benefit rateP this rate
corresponds to the averae daily wae of an insured person durin the correspondin contribution period
and is rouhly half of the daily wae rate! <enefit is paid for 3undays also! 29 wae roups have been
evolved for wor*in out the daily rate of 3tandard 3ic*ness <enefit! 3tandard <enefit rates for 29 wae
roups are shown in Anne0ure MAI!
1%. What .2 the 4-,at.o* of S.c?*e22 Be*ef.t;
3ic*ness benefit is payable for a ma0imum period of 91 days in any two consecutive benefit periods!
<enefit is not paid for an initial waitin period of 2 days unless the insured person is certified sic* within
15 days of the last spell in which 3ic*ness <enefit was paid!
1&. What .2 E7te*4e4 S.c?*e22 Be*ef.t;
+0tended 3ic*ness <enefit is a ,ash <enefit paid for proloned illness due to any of the :- specified
diseases as mentioned below!
?iseases
1! 1uberculosis
2! 2eprosy
:! ,hronic +mphysema
-! <ronchiectasis
5! $nterstitial 2un disease
6! A$?3
4! Malinant ?iseases
9! ?iabetes Mellitus7with proliferate retinopathy%diabetic foot% nephropathy!
26
9! Monopleia
1.! (emipleia
11! Parapleia
12! (emiparesis
1:! $ntracranial space occupyin lesion
1-! 3pinal ,ord ,ompression
15! Par*insonIs disease
16! Myasthenia Gravis%#euromuscular ?ystrophies
14! $mmature ,ataract with vision 6%6. or less
19! ?etachment of )etina
19! Glaucoma
2.! ,oronary Artery ?iseases
21! ,onestive (eart "ailure72eft, )iht
22! ,ardiac valvular ?iseases with failure%complications
2:! ,ardiomyopathies
2-! (eat disease with surical intervention alon with complications
25! ,hronic ;bstructive 2on diseases =,;P?> with conestive heart failure =,or Pulmonale>
26! ,irrhosis of liver with ascitis%chronic active hepatitis =O,A(P>
24! ?islocation of vertebra%prolapse of intervertebral disc
29! #on union or delayed union of fracture
29! Post 1raumatic surical amputation of lower e0tremity
:.! ,ompound fracture with chronic osteomyelitis
:1! =a> 3chi@ophrenia
=b>+ndoenous depression
=c>Maniac ?epressive Psychosis =M?P>
=d>?ementia
:2!More than 2.D <urns with infection%complication
::!,hronic )enal "ailure
:-!)eynaudIs disease%<urerIs disease!
$n addition, e0tended sic*ness benefit may also be sanctioned by the prescribed authority, in case of
any rare disease or special circumstances on the recommendation of the specified authority!
1'. What a,e the Co*t,.6-to,) Co*4.t.o*2;
+0cept in case of disability from administration of drus%in5ections, the insured person should have been
in continuous employment for a period of 2 years and should have contributed for at least 156 days in -
precedin contribution periods!
(. :o< m-ch .2 the Be*ef.t ,ate;
1he daily rate of +0tended 3ic*ness <enefit is -.D more than the 3tandard 3ic*ness <enefit rate
admissible!
1. :o< 1o*g .2 the Be*ef.t a3a.1a61e;
After e0haustin 3ic*ness <enefit payable for 91 days the +3< is payable upto a further period of
12-%:.9 days that can be e0tended upto 2 years in special circumstances! 1hus, toether with the
3ic*ness <enefit for 91 days, it puts a claimant on benefit for an areate period -.. days for all
specified diseases and 2 years in chronic suitable cases on recommendation of competent authority!
. What .2 E*ha*ce4 S.c?*e22 Be*ef.t;
+nhanced 3ic*ness <enefit is cash benefit for the insured persons underoin sterili@ation operation of
vasectomy%tubectomy for family plannin!
a. What a,e the co*t,.6-to,) co*4.t.o*2;
1he contributory conditions are the same as for claimin sic*ness benefit!
b. :o< m-ch .2 the 6e*ef.t ,ate;
27
1he daily rate of this benefit is double the standard benefit rate! 3ay, not less than the daily wae!
c. :o< Lo*g .2 the 6e*ef.t a3a.1a61e;
1he benefit is available upto 4 days for vasectomy and upto 1- days for tubectomy operations! 1his
period can however be e0tended in cases of postoperative complications or sic*ness arisin out of these
sterili@ation operations! $ts duration is not counted towards the total number of 91 days for which the
sic*ness benefit is available durin any two consecutive benefit periods!
4. :o< to c1a.m S.c?*e22 Be*ef.t;
A claim for 3ic*ness <enefit should be supported by a Medical ,ertificate issued by an $nsurance
Medical ;fficer%$nsurance Medical Practitioner in the appropriate "orm! Medical ,ertificates are issued at
intervals of not more than seven days, e0cept in cases of proloned sic*ness, where 3pecial
$ntermediate ,ertificates may be issued at loner intervals not e0ceedin - wee*s! ;n the bac* of each
certificate, e0cept the 3pecial $ntermediate ,ertificate, a ,laim "orm is printed! 1he ,laim "orm is
essentially a declaration in reard to abstention of the claimant from wor* durin the period of claim!
3eparate ,laim "orms are also available!
1he ,laim "orm should bear sinatures%thumb impression of the claimant and should be submitted to the
2ocal ;ffice personally, by post, throuh a messener or by deposit in certificate bo0es, wherever
provided! All claims should preferably to submitted to the 2ocal ;ffice within three days! 1he )eceptionist
at the 2ocal ;ffice renders all assistance in fillin in the claim on your behalf!
!. What .2 BD.2a61eme*tC;
?isablement is a condition resultin from employment in5ury, which may be: T
=a>1emporary i!e! renderin an insured person incapable of wor* temporarily and necessitatin
medical treatmentF
=b> Permanent partial i!e! reducin the earnin capacity of the insured person enerally for every
employmentF
=c> Permanent total i!e! totally deprivin the insured person of the power to do all wor*!
". What co*2t.t-te2 a* LEm01o)me*t I*A-,);M
+mployment in5ury means a personal in5ury caused to an employee by an accident or occupational
disease arisin out of and in course of his employment in a factory or establishment covered under the
+mployeesI 3tate $nsurance Act!
1he law relatin to +mployment in5ury has been liberali@ed! #ow, an accident arisin in the course of
employment is presumed also to have arisen out of his employment if there is no evidence to the
contrary! "urther, an accident brouht about by willful disobedience, nelience or breach of reulations
etc! or an accident happenin while travelin in a transport provided by the employer or while meetin an
emerency is accepted sub5ect to certain conditions, to have arisen in the course of and out of
employment! $n5uries suffered while under the influence of drin*s and drus ta*e away the riht of the
employee to this benefit!
)oadside accident caused while commutin between place of residence and wor*place is also treated as
notional e0tension of employment for purpose of death or disablement benefit!
#. What a,e BOcc-0at.o*a1 D.2ea2e2C;
;ccupational ?iseases are such diseases as are susceptible of bein traced bac* to their occupational
oriin! 1hese are specified under 3chedule $$$ of the +mployeesI 3tate $nsurance Act, which enumerates
the compensable ;ccupational ?iseases and the correspondin industrial processes involvin e0posure
to the diseases are thus reconi@ed without any further evidence!
$. What a,e the Be*ef.t2 g,a*te4;
28
1emporary ?isablement <enefit is paid periodically in arrears as the evidence of incapacity =medical
certificate> is produced! Permanent total disablement and permanent partial disablement benefits are
paid in the form of pensions! ,urrent employment for waes or enaement in any ainful activities is no
bar to payment of permanent disablement benefits! An insured person sufferin from an occupationed
disease is also entitled to full medical care!
%. :o< m-ch .2 the Be*ef.t Rate;
1he daily benefit rate for permanent total disablement and temporary disablement is -.D more than the
3tandard 3ic*ness <enefit rate and is rouhly e'uivalent to about 4.D of the wae rate! "or permanent
partial disablement, the rate of benefit is proportionate to the percentae of loss of earnin capacity! 1he
benefit is paid for 3undays also!
&. What a,e the Co*t,.6-to,) Co*4.t.o*2;
1here are no 'ualifyin conditions as to the lenth of employment or the number of contributions paid!
Protection accrues from the very moment of entry into insurable employment!
'. What .2 the 4-,at.o* of Be*ef.t;
1emporary ?isablement <enefit is paid as lon as disablement lasts! 1here is a waitin period of : days
=e0cludin the day of accident>, but if incapacity e0ceeds this period, benefit is paid from the very first
day! 1he permanent disablement benefit is paid for the life7time of the beneficiary!
!(. :o< .2 Pe,ma*e*t D.2a61eme*t a22e22e4;
1here is indeed no way of ade'uately compensatin a permanently disabled employee and yet some
method of determinin whether an employment in5ury has resulted in permanent disablement and of
assessin the e0tent of permanent damae caused by that employment in5ury has to be adopted for the
purpose of determinin the scale of compensation for the loss of earnins! 1his is done by evaluatin
loss of earnin capacity with reference to eneral disability for all wor*! 1he evaluation is done by a
Medical <oard whose decision can be appealed aainst to a Medical Appeal 1ribunal presided over by a
5udicial officer, with a further riht of appeal to +mployeesI $nsurance ,ourt or directly to +mployeesI
$nsurance ,ourt! Pendin an appeal, payment for permanent loss of earnin capacity as recommended
by the Medical <oard is made, sub5ect to ad5ustment later! 2oss of waes and e0penditure on
conveyance occasioned by attendance before the Medical <oard are compensated by the ,orporation in
accordance with rates framed for the purpose!
Ahere the assessment of loss of earnin capacity by the Medical <oard is not of a final character, the
beneficiary is re'uired to appear aain before the Medical <oard for a review of the assessment!
!1. Ca* the 4ec.2.o*2 of 5e4.ca1 Boa,4 o, of 5e4.ca1 A00ea1 T,.6-*a1 6e ,e3.e<e4;
&es! $f the Medial <oard or the Medical Appeal 1ribunal is satisfied by fresh evidence that a decision was
iven because of non7disclosure or misrepresentation of a material fact, it can review its earlier decision
at any time! A Medical <oard can also review its earlier assessment of e0tent of disablement, if it is
satisfied that there has been substantial and unforeseen aravation of the results of the relevant in5ury
and substantial in5ustice would be done by not reviewin it! 3uch review, however, cannot be made
earlier than 5 years or in the case of the provisional assessment, earlier than 6 months of the date of
assessment to be reviewed!
!. I2 1-m0 2-m Be*ef.t a11o<e4 .* 01ace of Pe*2.o*;
29
&es! At the option of the beneficiary, permanent disablement pension, where the daily rate payable is not
sinificant, can be commuted for a lump sum payment sub5ect to the fulfillment of the followin two
conditions: T
=i> 1hat the permanent disablement has been assessed as final, and
=ii> 1he daily rate of permanent disablement does not e0ceed )s 5%7 and the total commuted value
does
not e0ceed )s :.,...%7 =effective from AprilT.:>!
!!. :o< to c1a.m BD.2a61eme*t Be*ef.tC;
Fa@ Tem0o,a,) D.2a61eme*tG
=i> #otice of the in5ury should be iven either orally or in writin personally or throuh an aent,
to the employer%foreman%duty supervisor or particulars of the in5ury should be entered in the
Accident <oo* *ept in the factory, personally or throuh an aent!
=ii> A medical certificate of incapacity should be obtained from the $nsurance Medical
;fficer%$nsurance Medical Practitioner!
=iii> 1he claim form printed on the bac* of the medical certificate should be filled in and
submitted promptly to 2ocal ;ffice alon with the medical certificate!
=iv> A final certificate should be obtained from the $nsurance Medical ;fficer%$nsurance Medical
Practitioner and submitted to the 2ocal ;ffice before resumption of duty!
F6@ Pe,ma*e*t D.2a61eme*tG
=i> $f sufferin from permanent effects of employment in5ury, the insured person should ma*e an
application to the )eional ;ffice of the ,orporation for reference of his case to the Medical <oard
=reference to the Medical <oard is made otherwise also by the )eional ;ffice>!
=ii> Ahere loss of earnin capacity has been assessed and communicated to the insured person, he
should submit a claim in the appropriate form to the 2ocal ;ffice!
=iii> After the claim has been admitted, the beneficiary should submit at si07monthly intervals =with the
claim for Hune and ?ecember every year> a life certificate in appropriate form duly attested by the
prescribed authority!
!". I2 the,e a*) 0,o3.2.o* fo, 0h)2.ca1 ,eha6.1.tat.o*;
&es! $nsured Persons who suffer physical disablement due to employment in5ury are provided artificial
appliances or other physical aids such as wheel chairs, crutches, dentures and spectacles etc!
!#. What a6o-t 3ocat.o*a1 ,eha6.1.tat.o*;
1he ,orporation at its cost arranes for the vocational rehabilitation of disabled insured persons provided
the disability has been assessed at above -. percent and the beneficiary is not over -5 years of ae!
1he trainin is provided at vocational rehabilitation centers run by the Govt! of $ndia etc! 1he fee,
travellin e0penses etc are borne by the ,orporation!
!$. What .2 BDe0e*4e*t2C Be*ef.tC;
?ependents <enefit is a monthly pension payable to the eliible dependents of an insured person who
dies as a result of an +mployment $n5ury or occupational disease!
!%. Who a,e the Be*ef.c.a,.e2 a*4 ho< 1o*g .2 the Be*ef.t a3a.1a61e;
30
?ependants entitled to the benefit could be: T
=a> Aidow%Aidows durin life or until remarriae:
=b> 2eitimate or adopted son until ae 19 or if leitimate son is infirm, till infirmity lastsF
=c> 2eitimate or adopted unmarried dauhter until ae 19 or until marriae, whichever is earlier, or if
infirm, till infirmity lasts and she continues to be unmarried!
$n the absence of any widow or leitimate child, the benefit is payable to a parent or randparent for life,
to any other male dependant until ae 19 or to an unmarried or widowed female dependant until ae 19!
!&. :o< m-ch .2 the Be*ef.t fo, each Be*ef.c.a,);
1he total divisible benefit is e'uivalent to the temporary disablement benefit rate =rouhly 4.D of the
wae rate>! 1he widow%widows share :%5th of the benefit and the leitimate or adopted son and dauhter
2%5th each of the benefit! $f the total benefit so divided e0ceeds the full rate, there is a proportionate
reduction in the respective shares of the beneficiaries!
!'. :o< to c1a.m BDe0e*4a*t2C Be*ef.tC;
1o establish title to ?ependantI <enefit, the followin documents should be submitted at the 2ocal
;ffice:T
=a> ,laim in the appropriate formF
=b> +vidence of death bein due to employment in5uryF
=c> Proof of relationship to the deceased supportin eliibility of the claimant as a OdependantPF
=d> +vidence of ae of the claimant=s> =certified copy of official record of birth, <aptismal reister,
school records, oriinal horoscope etcF
=e> ,ertificate of infirmity from Medical )eferee or any other prescribed authority in case of leitimate
infirm son or leitimate or adopted unmarried infirm
dauhter!
After the claim to ?ependantIs <enefit has been admitted, the beneficiary should submit at si07monthly
intervals =with the claim for Hune and ?ecember>, a declaration that he%she is alive and has not
married%remarried attained the prescribed ae%continues to be infirm, as the case may be duly attested
by the prescribed authority!
"(. Ca* De0e*4a*tC2 Be*ef.t 6e ,e3.e<e4;
&es! ?ependantIs <enefit once awarded can be reviewed by the ,orporation at any time if it is satisfied
on fresh evidence that the earlier decision was due to non7disclosure or misrepresentation of material
facts! $t can also be reviewed on birth, death, marriae, re7marriae and attainment of ae 19, by a
claimant! 1he benefit can be continued, increased, reduced or discontinued!
"1. What .2 5ate,*.t) Be*ef.t;
Maternity <enefit is cash payable to an insured woman for the specified period of abstention from wor*
for confinement or miscarriae or for sic*ness arisin out of prenancy, confinement, premature birth of
child or miscarriae! O,onfinementP connotes labour resultin in the delivery of a livin child or labour
after 26 wee*s of prenancy whether the resultant issue is alive or dead! OMiscarriaeP means e0pulsion
of the contents of a prenant uterus at any period prior to or durin 26th wee* of prenancy! ,riminal
abortion or miscarriae does not, however, entitle to benefit!
". What a,e the Co*t,.6-to,) Co*4.t.o*2;
1he contribution condition is the same as for 3ic*ness <enefit!
"!. :o< m-ch .2 the Be*ef.t;
31
1he daily benefit rate is double the 3ic*ness <enefit rate and is thus rouhly e'uivalent to the full waes!
<enefit is paid for 3undays also!
"". What .2 the 4-,at.o* of the Be*ef.t;
1he <enefit is paid as follows: T
=a> "or confinement: T
"or a total period or 12 wee*s beinnin not more than 6 wee*s before the e0pected date of
child birth! $f the insured woman dies durin confinement or within 6 wee*s thereafter, leavin behind the
livin child, the benefit continues to be payable for the whole of the period! <ut if the child also dead
durin that period, the benefit will be paid upto and includin the day of death of the child!
=b> "or Miscarriae: T
"or a period of 6 wee*s followin the date of miscarriae!
=c> "or 3ic*ness arisin out of prenancy, confinement, and premature birth of child or
miscarriae:T
"or an additional period of upto four wee*!
$n all the cases, the benefit is paid only if the insured woman does not wor* for remuneration durin the
period for which benefit is claimed! 1here is no waitin period!
"#. :o< to c1a.m 5ate,*.t) Be*ef.t;
Ahere an insured woman wishes to claim Maternity <enefit after confinement or for miscarriae, she
should obtain from the $nsurance Medical ;fficer%$nsurance Medical Practitioner, a certificate of
confinement or miscarriae and submit it to her 2ocal ;ffice personally or by post alon with a claim for
Maternity <enefit! 1he claim form also contains a declaration of abstention from wor*!
$f <enefit is desired before confinement, a #otice and ,ertificate of Prenancy and a ,ertificate of
+0pected ,onfinement obtained from the $nsurance medical ;fficer%$nsurance Medical Practitioner are
also re'uired to be submitted!
"or claimin <enefit in the event of death of an insured woman leavin behind a child, her nominee and if
there is no such nominee, her leal representative should submit personally or by post to the 2ocal ;ffice
of the deceased insured woman, a claim for the <enefit toether with a certificate of death of the insured
woman!
An insured woman claimin Maternity <enefit for 3ic*ness arisin out of prenancy, confinement,
premature birth of child or miscarriae should submit her claim in the manner as for sic*ness benefit!
Ahere a claim to Maternity <enefit is not submitted alon with prescribed certificates referred to above,
the ,orporation has the discretion to accept other evidence in lieu thereof!
"$. What .2 5e4.ca1 Bo*-2;
Medical <onus is lump sum payment made to an insured woman or the wife of an insured person in case
she does not avail medical facility from an +3$ hospital at the time of delivery of a child! 1his bonus of
)s! 25.%7 has been increased to )s! 1...%7 from 1st April 2..:!
"%. What .2 5e4.ca1 Be*ef.t;
Medical <enefit means medical care of insured persons and their families, wherever covered for medical
benefit!
"&. What 4oe2 5e4.ca1 Be*ef.t co*2.2t of;
1he standard medical care consists of out7door treatment, in7patient treatment, all necessary drus and
dressins, patholoical and radioloical specialist consultation and care, ante7natal and post natal care,
emerency treatment etc!
"'. Whe,e a,e Bo-t90at.e*tC 2e,3.ce2 0,o3.4e4;
32
;ut7door medical care is provided at 3tate $nsurance ?ispensaries or Mobile ?ispensaries manned by
full7time doctors =M3erviceI system> or at the private clinics of $nsurance Medical Practitioners =MPanelP
system>! 1he scope of medical services also includes simple antenatal and post7natal care for women,
family welfare plannin services and immuni@ation aainst the common infectious diseases!
1he 3cheme provides at the sole cost of the ,orporation, artificial limbs to insured persons who lose
their limbs due to employment in5ury or in certain circumstances otherwise also, dentures, spectacles
and hearin aids where the loss of teeth, impairment of eyesiht or hearin respectively is due to
employment in5ury!
#(. :o< a*4 <he,e a,e B.* 8 0at.e*tC Se,3.ce2 P,o3.4e4;
+3$, has a networ* of 1-1 hospitals countrywide! Ma5ority of these hospitals are administered by the
3tate Govts! $n T patient and dianostic services in basic specialties are available at these hospitals!
3tate schemes have also tie7up arranements with a number of Medical collees, ma5or state hospitals,
as well as, private hospitals for advanced treatment for malinant diseases and complicated surical
interventions!
#1. What a6o-t P,e3e*t.3e hea1th ca,e 2e,3.ce2;
+3$ 3cheme provides preventive health care services throuh the networ* of its dispensaries and
hospitals! 1hese include immuni@ation aainst some *iller diseases, pulse polio vaccination and family
welfare services etc! 1he scheme also participates in all ma5or national preventive health service
campains!
#. :o< 1o*g .2 5e4.ca1 Be*ef.t a3a.1a61e;
$nsured wor*er and the members of his family are eliible for medical care from the very first day of the
wor*er comin under +3$ 3cheme! 1he medical care includes primary medical care, dianostic services,
specialist consultations and indoor medical care! Ahenever the patient is not able to travel by
himself%herself, ambulance services are also provided! 1he $!P! or his family members are not re'uired to
pay for any of the services!
A wor*er who is covered under the 3cheme for the first time is eliible for medical care for a period of
three months! $f he%she continues in insurable employment for three months or more the medical care is
available to him%her till the start of the first benefit period! $f he%she contributes at least for 49 days in a
contribution period the eliibility is there upto the end of the correspondin benefit period!
A wor*er is also eliible for e0tended sic*ness benefit when he%she is sufferin from any one of the lon7
term :- diseases listed in the Act! 1his is admissible after the wor*er has been under +3$ coverae for at
least 2 years durin which he%she should have contributed at least for 156 days! Ahen these conditions
are satisfied medical benefit is admissible for a ma0imum period of 4:. days for the $!P! and his%her
family!
#!. What a,e F-*e,a1 e70e*2e2;
1his component consists of a lump sum payment towards the e0penditure on the funeral of the deceased
insured person!
#". What .2 the amo-*t 0a)a61e;
1he lump sum amount of this benefit is e'ual to the actual e0penditure, not e0ceedin )s! :...%7
towards the funeral of the deceased insured person!
##. A,e the,e a*) Co*t,.6-t.o* Co*4.t.o*2;
#o contribution condition is re'uired for this <enefit! 1he only condition for admissibility of this <enefit is
that the deceased person should have been an insured person at the time of his death! 1he "uneral
e0penses are thus payable in respect of an insured person in receipt of Permanent ?isablement <enefit
even if he may not be employed at the time of his death in a factory or establishment covered under the
+3$ Act!
#$. To <hom a,e the F-*e,a1 e70e*2e2 0a)a61e;
1he e0penses are payable to the eldest survivin member of the family of the deceased insured person!
$f the insured person did not have a family or if he was not livin with his family at the time of his death,
the benefit is payable to the person who actually incurs the e0penditure on the funeral of the deceased
insured person!
33
#%. :o< to c1a.m the F-*e,a1 e70e*2e2;
1o claim the e0penses, the claimant should submit his%her claim personally or by post to the 2ocal ;ffice
of the deceased insured person within three months, toether with the followin documents:T
=a> ?eath certificate as proof of death of the insured person issued by the $nsurance Medical
;fficer%$nsurance Medical Practitioner or such other Medical ;fficer of a hospital or other institution who
attended the insured person at the time of death or e0amined the body after the deathF =?eath certificate
issued by cremation%burial round or by Municipal authorities or certified copy of villae etc! death
records may also be accepted as evidence of death>F
=b> A declaration of the claimant, either
=i> 1hat he is the eldest survivin member of the family of the deceased insured person and incurred
e0penditure on the funeral of the deceased! or
=ii> $n case the claimant is other than the eldest survivin member of the family, that the deceased
insured person did not have a family or was not livin with his family at the time of his death and that
the claimant actually incurred e0penditure on the funeral of the deceased insured person! 1he
declaration should be countersined by a competent authority!
#&. D.2D-a1.f.cat.o* fo, 6e*ef.t2 .* ce,ta.* ca2e2G
A person who wor*s and receives waes on any day is not entitled to sic*ness benefit or maternity
benefit or temporary disablement benefit in respect of that day!
A recipient of sic*ness benefit or temporary disablement benefit must remain under medical treatment
and obey the instruction iven by his $nsurance Medical ;fficer! (e should not leave the area of
treatment without the permission of his medical officer and should present himself for e0amination by the
medical officer or any other person authori@ed by the ,orporation!
#'. Safeg-a,4.*g the ,.ght to Be*ef.tG
,ash benefits payable under the +mployeesI 3tate $nsurance Act are not liable to attachment or sale in
e0ecution of any court decree or order! Also, the riht to receive any benefit is not transferable or
assinable!
$(. P,otect.o* f,om D.2m.22a1/ 4.2cha,ge o, othe, P-*.2hme*t2G
An employee is protected aainst dismissal, dischare, or other punishments durin the followin
periods: T
=1> A period of 6 months in case of a recipient of disablement benefitF
=2> A period of 6 months in case an employee is under medical treatment for sic*ness or certified
illness
due to prenancy or confinementF
=:> A period of 12 months in case an employee is under medical treatment for 1!<! 2eprosy, Mental,
Malinant or any of the :- specified diseases!
$1. Rem.tta*ce of Ca2h Be*ef.t at the co2t of the Co,0o,at.o*G
At the option of the beneficiary, cash benefits under the +mployeesI 3tate $nsurance Act are remitted by
Money ;rders at the cost of the ,orporation, irrespective of the amount involved!
$. A4A-4.cat.o* 5ach.*e,)G
1o ma*e the riht of claimants effective, every claimant has a riht of raisin a dispute in the +mployeesI
$nsurance ,ourt! $t consists of a 5udicial officer appointed by the 3tate Government! 1he 5urisdiction of a
,ivil ,ourt is barred in all such cases!
$!. Re0a)me*t a*4 ,eco3e,) of Be*ef.t 0a)me*t2G
34
$f a person receives any benefit to which he is not leally entitled, he is liable to repay the value of any
such benefit to the ,orporation!
$#. P-*.2hme*t fo, fa12e 2tateme*t etc.G
Any false statement or false representation made or caused to be made for the purpose of obtainin
benefit wronfully etc! constitutes an offence under the +mployeesI 3tate $nsurance Act, punishable with
imprisonment upto three months or with fine upto five hundred rupees or both!
$$. T,eatme*t at o-t2tat.o*
$n case an insured wor*er leaves his station on duty or otherwise he%she is eliible for treatment at any
+3$ medical unit, sub5ect to production of identity card and a certificate from +mployer in "orm 1.5!
FOR BETTER AND QUICKER SERIICES
Please )emember
$dentity ,ard is your visa to social securityF protect it from loss or damae!
$n case of loss of $dentity ,ard, report the matter to your 2ocal ;ffice%?ispensary!
"ill in all ,laim "orms properlyF avoid mista*es!
,ount your money before leavin 2ocal ;ffice cash counter!
Apply for e0amination by Medical <oard immediately after your 1?< terminates!
"ollow referral procedures for treatment e0cept in emerencies, when time factor is critical!
$f you have a rievance, contact 2ocal ;ffice Manaer%?ispensary in chare to which you are attached
for 'uic* redressal!
<e courteous with +3$ staff and e0pect courtesy and compassion from them always!
Bac? to Co*te*t2 Page
35
INDUSTRIAL DISPUTE ACT/ 1'"%
1. What a,e I*4-2t,.a1 D.20-te2;
$ndustrial ?ispute means any dispute or differences between employers and employers or between
employers and wor*men or between wor*men and wor*men, which is connected with the employment or
non7employment or the terms of employment or with the conditions of labour of any person!
. What a,e the 4.ffe,e*t catego,.e2 of I*4-2t,.a1 D.20-te2;
1he 3econd 3chedule of the $!?! Act deals with matters within the 5urisdiction of 2abour ,ourts, which fall
under the cateory of )ihts ?isputes! 3uch disputes are as follows:
1! 1he propriety or leality of an order passed by an employer under the standin ordersF
2! 1he application and interpretation of standin orders, which reulate conditions of employment!
:! ?ischare or dismissal of wor*men includin reinstatement of, or rant of relief to, wor*men wronfully
dismissedF
-! Aithdrawal of any customary concession or privileeF
5! $lleality or otherwise of a stri*e or loc*7outF and
6! All matters other than those specified in the 1hird 3chedule!
1he 1hird 3chedule of the $!?! Act deals with matters within the 5urisdiction of $ndustrial 1ribunals which
could be classified as $nterest ?isputes! 1hese are as follows: 7
1! Aaes, includin the period and mode of paymentF
2! ,ompensatory and other allowancesF
:! (ours of wor* and rest intervalsF
-! 2eave with waes and holidaysF
5! <onus, profit sharin, provident fund and ratuityF
6! 3hift wor*in otherwise than in accordance with standin ordersF
4! ,lassification by radesF
9! )ules of disciplineF
9! )ationali@ationF
1.! )etrenchment of wor*men and closure of establishmentF and
11! Any other matter that may be prescribed!
!. Who ca* ,a.2e a* I*4-2t,.a1 D.20-te;
Any person who is a wor*man employed in an industry can raise an industrial dispute! A wor*man includes
any person =includin an apprentice> employed in an industry to do manual, uns*illed, s*illed, technical,
operational, clerical or supervisory wor* for hire or reward! $t e0cludes those employed in the Army, #avy,
Air "orce and in the police service, in manaerial or administrative capacity! $ndustry means any business,
trade, underta*in, manufacture or callin of employers and includes any callin, service, employment,
handicraft, or industrial occupation or avocation of wor*men!
". :o< to ,a.2e a* I*4-2t,.a1 D.20-te;
36
A wor*man can raise a dispute directly before a ,onciliation ;fficer in the case of dischare, dismissal,
retrenchment or any form of termination of service! $n all other cases listed at 2 above, the dispute has to
be raised by a Enion % Manaement!
#. Who a,e Co*c.1.at.o* Off.ce,2 a*4 <hat 4o the) 4o;
1he ;rani@ation of the ,hief 2abour ,ommissioner =,entral> acts as the primary conciliatory aency in
the ,entral Government for industrial disputes! 1here are the )eional 2abour ,ommissioners =,entral>
and Assistant 2abour ,ommissioners =,entral> who on behalf of the ,hief 2abour ,ommissioner =,entral>
act as ,onciliatory ;fficers in different parts of the country!
1he ,onciliation ;fficer ma*e efforts to resolve the dispute throuh settlement between the wor*men and
the manaement! 1he duties of ,onciliation ;fficers have been laid down under 3ection 12 of the $ndustrial
?isputes Act!
$. What ha00e*2 .f co*c.1.at.o* fa.12;
$n case of failure of conciliation =";,> a report is sent to Government =$) ?es*s in Ministry of 2abour>! 1he
Ministry of 2abour after considerin the ";, )eport e0ercises the powers available to it under 3ection 1.
of the $ndustrial ?isputes Act and either refers the dispute for ad5udication or refuses to do so! ?etails of
functions of $) ?es*s and reasons for declinin may be seen above!
1here are at present 14 ,entral Government $ndustrial 1ribunals7cum72abour ,ourts in different parts of
the country to whom industrial disputes could be referred for ad5udication! 1hese ,G1$s7cum72abour
,ourts are at #ew ?elhi, Mumbai =2 ,G$1s>, <analore, Qol*ata, Asansol, ?hanbad =2 ,G$1s>, Habalpur,
,handiarh, Qanpur, Haipur, 2uc*now, #apur, (yderabad, ,hennai and <hubaneshwar! ;ut of these
,G$1s, 2 ,G$1s namely Mumbai7$ and Qol*ata have been declared as #ational $ndustrial 1ribunals!
%. What ha00e*2 <he* the 4.20-te .2 ,efe,,e4 to La6o-, Co-,t;
After the matter is referred to any of the ,G$17cum72abour ,ourt, the ad5udication process beins! At the
end of the proceedins an Award is iven by the Presidin ;fficer!
1he Ministry of 2abour under 3ection 14 of the $!?! Act publishes the Award in the ;fficial Ga@ette within a
period of :. days from the date of receipt of the Award!
&. :o< .2 the A<a,4 .m01eme*te4;
An Award becomes enforceable on the e0piry of :. days from the date of its publication in the ;fficial
Ga@ette! 1he )eional 2abour ,ommissioner is the implementin authority of the Awards!
'. What a,e the 0,o3.2.o*2 fo, +e*e,a1 P,oh.6.t.o* of St,.?e2 a*4 Loc?o-t2;
#o wor*man who is employed in any industrial establishment shall o on stri*e in breach of contract and
no employer of any such wor*man shall declare a loc*out:
=a> ?urin the pendency of conciliation proceedins before a <oard and seven days after the conclusion of
such proceedins,
=b> ?urin the pendency of such proceedins before a 2abour ,ourt, 1ribunal or #ational 1ribunal and 2
months after the conclusion of such proceedins!
=c> ?urin the pendency of arbitration proceedins before an Arbitrator and 2 months after the conclusion
of such proceedins, where a notification has been issued!
=d> ?urin any period durin in which a settlement or Award is in operation in respect of any of the matters
covered by the settlement of Award!
1(. Doe2 the <o,?ma* ha3e the R.ght to go o* 2t,.?e <.th 0,o0e, *ot.ce .* P-61.c Ut.1.t) Se,3.ce2;
#o person employed in a Public Etility 3ervice can o on stri*e without ivin to the employer notice of
stri*eF
=a> Aithin 6 wee*s before stri*in!
=b> Aithin 1- days of ivin such notice!
=c> <efore the e0piry of the date of stri*e specified in such notice!
=d> ?urin the pendency of any conciliation proceedins before a ,onciliation ;fficer and 4 days after the
conclusion of such proceedins!
37
11. Doe2 the Em01o)e, ha3e the ,.ght to 1oc? o-t a*) P-61.c Ut.1.t) Se,3.ce;
#o employer carryin on any Public Etility service can loc*out any of his wor*man:
=i> Aithout ivin to them notice of loc*out provided within 6 wee*s before loc*in out!
=ii> Aithin 1- days of ivin such notice!
=iii> <efore e0piry of the date of loc*out specified in any such notice!
=iv> ?urin the pendency of any conciliation proceedins before a ,onciliation ;fficer and 4 days after the
conclusion of such proceedins!
1. What com0e*2at.o* <.11 a <o,?ma* get <he* 1a.4 off;
Ahenever a wor*man =other than a badli wor*man or a casual wor*man> whose name is borne on the
muster rolls of an industrial establishment employin 5. or more wor*men on an averae wor*in day and
who has completed not less than one year of continuous service under an employer laid off, whether
continuously or intermittently, he is to be paid by the employer for all days durin which he is so laid off,
e0cept for such wee*ly holidays as may intervene, compensation which shall be e'ual to fifty per cent of
the total of the basic waes and dearness allowance that would have been payable to him had he not been
so laid7off!
1!. What a,e the co*4.t.o*2 0,ece4e*t to ,et,e*chme*t of <o,?me*;
#o wor*men employed in any industry who has been in continuous service for not less than one year
under an employer can be retrenched by that employer until:
=a> 1he wor*man has to be iven one monthIs notice in writin indicatin the reasons for retrenchment or
the wor*man has to be paid in lieu of such notice, waes for the period of the notice!
=b> 1he wor*man has to be paid, at the time of retrenchment, compensation which is e'uivalent to fifteen
daysI averae pay =for every completed year of continuous service> or any part thereof in e0cess of si0
monthsF and
=c> #otice in the prescribed manner is to be served on the appropriate Government =or such authority as
may be specified by the appropriate Government by notification in the ;fficial Ga@ette>!
1". What com0e*2at.o* <.11 the <o,?ma* get <he* a* -*4e,ta?.*g c1o2e2 4o<*;
Ahere an underta*in is closed down for any reason whatsoever, every wor*man who has been in
continuous service for not less than one year in that underta*in immediately before such closure is
entitled to notice and compensation in accordance with the provisions as if the wor*man had been
retrenched!
Provided that where the underta*in is closed down on account of unavoidable circumstances beyond the
control of the employer, the compensation to be paid to the wor*man is not to e0ceed his averae pay for
three months!
Bac? to Co*te*t2 Page
T:E 5INI5U5 WA+ES ACT/ 1'"&
38
1. What .2 the o6Aect of the 5.*.m-m Wage2 Act/ 1'"&;
1he ob5ect of the Act is to provide for fi0in and revisin minimum waes in certain employments in order to
stop sweated labour and prevent the e0ploitation of unorani@ed labour!

. Wh.ch em01o)me*t2 a,e .*te*4e4 to 6e 6e*ef.te4 6) f.7at.o* of m.*.m-m ,ate2 of
<age2;
1he Government is re'uired to fi0 minimum rates of waes payable to employees employed
in the employments specified in Part $ or Part $$ of the 3chedule appended to the Act!
U3ection :V
:! I2 the 1.2t of em01o)me*t2 20ec.f.e4 .* the Sche4-1e to the Act e7ha-2t.3e;: 1he list is not an
e0haustive one! 1he appropriate Government can add any employment to either part of the 3chedule!
U3ection 24V

". I2 .t com0ete*t fo, a go3e,*me*t to 6,.*g a teache, <.th.* the 0-,3.e< of the Act 6) ame*4.*g the
Sche4-1e to the Act;
A teacher would not come within the definition of LemployeeL iven under 3ection 2=i> of the Act! $t is beyond
the competence of a Government to brin the teachers of an educational institution under the purview of
the Act!

#. I2 the Act a001.ca61e to 4a.1) ,ate4 em01o)ee2;
1he Act is e0pected to fi0 the minimum waes in respect of employees whether they are casual, daily
rated, temporary or permanent! 1he Act is applicable to daily rates employees also!

$. What .2 the 0,oce4-,e the +o3e,*me*t ha2 to fo11o< fo, f.7.*g a*4 ,e3.2.*g m.*.m-m <age2;: 1he
Government has to fi0 and revise minimum waes either7
a! <y appointin one or more committees and sub7committees consistin of representatives of employers and
employees and also of independent persons to hold necessary en'uiries and by ta*in into consideration
the advice tendered by the committee or committeesF or
b! <y formulatin and publishin its proposals and ta*in into consideration the representations received in
response to the proposals! U3ection 5V
%. I2 the ta2? of the +o3e,*me*t o3e, o*ce .t f.7e2 m.*.m-m ,ate2 of <age2 0a)a61e to em01o)ee2
em01o)e4 .* a 2che4-1e4 em01o)me*t;
1he tas* of the Government is not over once it fi0es minimum rates of waes payable to employees
employed in a scheduled employment! 1he minimum rates of waes of fi0ed are re'uired to be reviewed
and, if necessary, revised by the Government at intervals not e0ceedin five years! U3ection :=1>=b>V

&. I2 .t 0e,m.22.61e fo, the em01o)e, to 0a) m.*.m-m <age2 .* ?.*4;
As a rule minimum waes payable under the Act must be paid in cash! 1he employer, however, can pay
them in *ind with the permission of the appropriate Government! U3ection 11V

'. Ca* atte*4a*ce 6o*-2 6e t,eate4 a2 0a,t of the m.*.m-m <age f.7e4 -*4e, the Act;
Attendance bonus is in the nature of an incentive! $t is an additional payment made to the wor*men as a
means of increasin production! $t cannot be treated as part of the minimum wae fi0ed under the Act!

1(. Ca* the 2-001) of e22e*t.a1 commo4.t.e2 at co*ce22.o*a1 ,ate2 f,om 0a,t of the m.*.m-m <age;
3uch supply cannot form part of the minimum wae unless it is authori@ed by the appropriate Government
by a notification in the ;fficial Ga@ette under section 11=:> of the Act!

11. What .2 the o61.gat.o* of the em01o)e, .* ,e20ect of 0a)me*t of <age2 -*4e, the 5.*.m-m Wage2
Act/ 1'"&;
Ahere minimum waes are fi0ed and enforced under section 5 of the act in respect of any employment
covered by the Act, the employer is bound to pay to every employee enaed in that employment waes at
a rate not less than the minimum rate to fi0ed and enforced! U3ection 12V
39

1. I2 a* em01o)e,/ <ho .2 *ot 0a).*g 6a2.c <age2 a*4 co2t of 1.3.*g a11o<a*ce 2e0a,ate1) a2 f.7e4
-*4e, the Act 6-t <ho .2 0a).*g <age2 mo,e tha* 0,e2c,.6e4 m.*.m-m ,ate2 -*4e, the Act/
comm.tt.*g a*) .11ega1.t)S
1he minimum rate of waes fi0ed under the Act is remuneration payable to the wor*er as one pac*ae of
fi0ed amount, #either the scheme of the Act nor any provision of the Act provides that the rate of minimum
waes is to be split into basic waes and cost of livin allowance and therefore where an employer is
payin total sum which is hiher than the minimum rate of waes fi0ed under the Act includin cost of livin
allowance, the employer is not committin any illeality!

1!. What .2 the *-m6e, of ho-,2/ <h.ch co*2t.t-te2 a *o,ma1 <o,?.*g 4a) fo, the em01o)ee2 co3e,e4 6)
the Act;
A normal wor*in day prescribed for the employees covered by the Act is of 9 hours! U3ection 1: / Mah!
)ule 2-V

1". A,e the em01o)ee2 co3e,e4 6) the Act e*t.t1e4 to o3e,t.me <age2;
$f an employee covered by the Act wor*s for more than 9 hours on any day or -9 hours in any wee*, he is
in respect of overtime wor* entitled to waes at double the ordinary rate of waes! U3ection 1- / Mah! )ule
26V

1#. Ca* a* em01o)ee gett.*g <age2 h.ghe, tha* the m.*.m-m <age2 f.7e4 -*4e, the Act c1a.m o3e,t.me
<age2 -*4e, Sect.o* (F@ of the Act;
Ahere an employee ets waes hiher than the minimum waes fi0ed under the Act he cannot claim any
benefit under the Act!

1$. Ca* a* I*4-2t,.a1 T,.6-*a1 a4A-4.cate -0o* a 4.20-te ,e1at.*g to the f.7at.o* of <age2 of em01o)ee2
co3e,e4 -*4e, the Act;
3ection 2- of the Act does not bar the 5urisdiction of an $ndustrial 1ribunal to ad5udicate upon a dispute
relatin to the fi0ation of waes of employees covered under the Act!

1%. Ca* a* I*4-2t,.a1 T,.6-*a1 f.7 <age2 at ,ate2 h.ghe, tha* the ,ate2 of m.*.m-m <age2 f.7e4 -*4e,
the 5.*.m-m Wage2 Act;
An $ndustrial 1ribunal ad5udicatin a dispute relatin to waes is not bound by the minimum rates of waes
fi0ed under the Minimum Aaes Act and it is open to it to fi0 waes at rates hiher than the rates of
minimum waes fi0ed under the Act!

1&. What .2 the 0o2.t.o* of the em01o)e, <ho .2 -*a61e to 0a) m.*.m-m <age2 f.7e4 -*4e, the Act;
1he employer is bound pay minimum waes fi0ed under the Act and it is irrelevant whether he has the
capacity to pay them or not!

1'. What .2 the 0,oce4-,e the em01o)ee ha2 to fo11o< fo, ma?.*g a c1a.m -*4e, the Act;
1he procedure for ma*in a claim is as follows
a! An employee havin any claim under the Act has to ma*e an application to the Authority appointed
under
the Act!
b! 3uch application can be made by the employee himself, or any leal practitioner or any official of a
reistered trade union!
c! 3uch application has to be made within si0 months from the date on which the claim amount became
payable!
d! $n appropriate case the Authority can, over and above directin the payment of the difference between
minimum waes payable and waes actually paid, award compensation upto ten times the amount of
the difference!
e! 1he amount directed to be paid by the Authority can be recovered as if it were a fine imposed by a
Maistrate!
f! +very direction of the Authority will be final! U3ection 2.V
(. A,e the em01o)ee2 of a St-4e*t2E :o2te1 e*t.t1e4 to m.*.m-m ,ate2 of <age2 f.7e4 fo, hote12 a*4
,e2ta-,a*t2;
40
1he intension of the 2eislature was to include employment on hotels and restaurants under purview of the
Minimum Aaes Act! Ahen the 2eislature specifically omitted the term L3tudents8 (otelsL in the
3chedule, it thereby e0cludes it from the purview of the Minimum Aaes Act!

1. Ca* the A-tho,.t) a00o.*te4 -*4e, the Act to 4ec.4e the c1a.m2 of the em01o)ee2 a<a,4
com0e*2at.o* to the t-*e of te* t.me2 of the amo-*t of the 4.ffe,e*ce 6et<ee* <age2 0a)a61e a*4
<age2 act-a11) 0a.4/ .* e3e,) ca2e;
1he limit of Lten times the amount of such e0cessL mentioned in section 2.=:>=i> of the Act is the ma0imum
limit! Ahen the Authority awards heavy compensation under the said section, it must ive reasons for
doin so!

. :a2 a* em01o)ee to 0a) a*) co-,t9fee fo, ma?.*g a* a001.cat.o* to the A-tho,.t);
$n the 3tate of Maharashtra an employee is e0empted from payin any court7fee, other than the fee for
service of process, for ma*in such applicationF but at the same time the Government is empowered to
recover the amount of such court7fee from the employer if the employee succeeds in the application!
U3ection 21AV

!. Ca* a g,o-0 of em01o)ee2 ma?e a 2.*g1e a001.cat.o* fo, c1a.m.*g m.*.m-m <age2;
A sinle application can be made on behalf or in respect of any number of employees!

". I2 a* em01o)e, ,eD-.,e4 to ma.*ta.* a*) ,eg.2te, a*4 ,eco,4;
+very employer must maintain a muster7roll7cum7wae reister and also a bound inspection boo*! U)ule
24 / 29V

#. What a,e the offe*ce2 -*4e, the Act a*4 <hat .2 the 0-*.2hme*t fo, them;
$f any employer 7
a! pays to any employee less than the minimum rates of waes fi0ed for that employees8 class of wor*F or
b! contravenes any rule or order made by the appropriate Government under 3ection 1: reardin hours
of wor*F he would be punished with imprisonment upto five years or with fine upto )s! 1....!.. or with
both! 1he offences under 3ection 22 of this Act shall be coni@able and non7bailable! U3ection 22, 22<V

$. I2 .t 0e,m.22.61e fo, a* em01o)ee to ,eco3e, m.*.m-m <age2 0a)a61e -*4e, the Act 6) f.1.*g a 2-.t
.* a C.3.1 Co-,t;
1he Act prohibits ,ivil ,ourts from entertainin any suit for recovery of minimum waes payable under the
Act! U3ection 2-V

%. I2 .t 0e,m.22.61e fo, a* em01o)ee to ,e1.*D-.2h h.2 ,.ght2 -*4e, the Act;
An employee is prohibited from contractin out of the Act, i!e! from ivin up any of his rihts under the Act
and any contract or areement made by him relin'uishin or reducin his riht to a minimum rate of waes
or any privilee or concession accruin to him under the Act is null and void! U3ection 25V
Bac? to Co*te*t2 Page
T:E PAY5ENT OF WA+ES ACT/ 1'!$
1. What .2 the o6Aect of the Pa)me*t of Wage2 Act/ 1'!$;
1he main ob5ect of the Act is to avoid unnecessary delay in the payment of waes and to prevent
unauthori@ed deductions from the waes!
41

. What .2 the a001.ca6.1.t) of th.2 Act;
1his Act is applicable to employees with waes less than )s! 65.. per month!
!. What .2 the t.me 1a.4 o-t fo, em01o)e, to 0a) the <age2;
1he employer needs to pay waes to the employee within one month or even
on a wee*ly or fortnihtly basis!
". To <h.ch e2ta61.2hme*t2 .2 the Act a001.ca61e;
1he Act is applicable to the payment of waes to persons employed:
a! $n factoriesF
b! upon railwaysF
c. $n other establishments specified in sub7clauses =a> to => of section 2=ii> of the Act!
1he Act empowers the 3tate Government to e0tend its provisions to the persons employed in any
establishments over and above the aforesaid establishments! U3ection 1V
#. What ,eg.2te,2 a,e ,eD-.,e4 to 6e ma.*ta.*e4 6) the em01o)e,;
d! 1he employer needs to maintain the followin reisters:
e! 1> )eister of "ines
f! 2> )eister of waes
! :> )eister of deductions for damae or loss
h! -> )eister of advances made to the employees!
$. A,e a11 <age2 co3e,e4 o, 0,otecte4 6) the Act;
Aaes averain less than )s! 65..!.. per month only are covered or protected by the Act with effect
from 11th 3eptember 2..5! U3ection 1=6>V

%. A,e o3e,t.me <age2 to 6e ta?e* .*to acco-*t fo, 4ec.4.*g the a001.ca6.1.t) of the Act;
Aaes means contractual waes and not overtime waes! 1hey are not to be ta*en into account for
decidin the applicability of the Act in the conte0t of section 1=6> of the Act!

&. Ca* a*) em01o)e, f.7 a 0e,.o4 1o*ge, tha* o*e mo*th fo, 0a).*g <age2 to a 0e,2o* em01o)e4 6)
h.m;
1he period to be fi0ed for payin waes to an employed person must not e0ceed one month! 1hat means,
an employer can choose to pay waes to a person employed by him for a period of every wee* or every
fortniht, but not for a period of every two months or every three months, U3ection -V

'. What a,e the ,eD-.,eme*t2 of the Act .* ,e20ect of t.me of 0a)me*t of <age2;
1he followin are the re'uirements of the Act in respect of time of payment of waes:
a! Aaes must be paid on a wor*in day and not on a holiday!
b! +stablishments employin less than 1... persons must pay waes before the e0piry of the 4th day of
every month and other establishments must pay waes before the e0piry of the 1.th day of every
month!
c! Ahen the employment of any person is terminated, the waes earned by him must be paid before the
e0piry of the second wor*in day from the day of termination! U3ection 5V
1(. What a,e the ,eD-.,eme*t2 of the Act .* ,e20ect of metho4 of 0a)me*t of <age2;
42
Aaes must be paid in current coin or currency notes or in both and not in *ind! $t is, however, permissible
for an employer to pay waes by che'ue of by creditin them in the ban* account if so authori@ed in writin
by an employed person! U3ection 6V

11. What .2 the 0,o3.2.o* of the Act ,ega,4.*g 4e4-ct.o*2 f,om the <age2 0a)a61e to a* em01o)e4
0e,2o*;
1he Act prohibits all *inds of deductions e0cept those, which are authori@ed by or under the Act! U3ection 4V

1. What a,e the 0,o3.2.o*2 of the Act ,ega,4.*g the .m0o2.t.o* of f.*e2 o* the em01o)e4 0e,2o*;
a! 1he employer must e0hibit on his premises a list of acts or omissions for which fines can be imposed!
b! <efore imposin a fine on an employed person he must be iven an opportunity of showin cause
aainst the fine!
c! 1he amount of fine must not e0ceed : percent of the waes!
d! A fine cannot be imposed on an employed person who is under the ae of 15 years!
e! A fine cannot be recovered by installments or after 9. days from the day of the act or omission for
which it is imposed!
f! 1he moneys reali@ed from fines must be applied to purposes beneficial to employed persons! U3ection
9V
1!. I2 the em01o)e, f,ee to .m0o2e f.*e2 .* ,e20ect of a*) act of om.22.o* o* the 0a,t of em01o)e4
0e,2o*2;
"ines can be imposed in respect of only those acts or omissions of the employed persons which are
approved by the authority prescribed under section 9=1> of the Act! U)ules 1. to 12V

1". What .2 the 0,oce4-,e 0,e2c,.6e4 fo, the .m0o2.t.o* of f.*e a*4 fo, ma?.*g 4e4-ct.o*2 fo, 4amage
o, 1o22;
Any person desirin to impose a fine on an employed person or to ma*e a deduction for damae or loss
shall e0plain personally or in writin to the said person the act or omission, or damae or loss in respect of
which the fine or deduction is proposed to be imposed, and the amount of fine or deduction, which it is
proposed to impose, and shall hear his e0planation in the presence of at least one other person, or obtain it
in writin! U3ubsection 9=:>, 1.=17A> / )ule 15V

1#. A0a,t f,om the em01o)e, h.m2e1f/ <ho e12e .2 ,e20o*2.61e fo, the 0a)me*t to the 0e,2o*2 em01o)e4
6) h.m of <age2 ,eD-.,e4 to 6e 0a.4 -*4e, the Act;
a! $n factories, if any person has been named as the manaer of the factory, then the person so named is
also responsible for such payment!
b! $n industrial establishments, if there is a person responsible to the employer for the supervision and
control of the industrial establishment, then the person so responsible is also responsible for such
payment!
c! Epon railways, if the employer is the railway administration and the railway administration has
nominated a person in this behalf, then the person so nominated is also responsible for such payment!
U3ection :V

1$. What .2 the 0,oce4-,e a* em01o)e4 0e,2o* ha2 to fo11o< fo, c1a.m.*g 4e4-cte4 o, 4e1a)e4 <age2;
a!$f contrary to the provisions of the Act any deduction has been made from the waes of an employed
person or any payment of waes has been delayed, he has to ma*e an application for claimin the same
to the Authority appointed under the Act!
b!3uch application can be made by the employed person himself or a leal practitioner or an official of a
reistered trade union!
c! 3uch application has to be made within a period of 12 months from the date on which the date on which
the deduction from the waes was made or from the date on which the payment of the waes was due to
be made!
43
d!Ahen any application under 3ubsection =2> is entertained, the authority shall hear the applicant and the
employer or other person responsible for the payment of waes under 3ection :, or ive them an
opportunity of bein heard, and, after such further en'uiry, if any, as may be necessary, may, without
pre5udice to any other penalty to which such employer or other person is liable under this Act, direct the
refund to the employed person of the amount deducted, or the payment of the delayed waes, toether
with the payment of such compensation as the authority may thin* fit, not e0ceedin ten times the
amount deducted in the former case and not e0ceedin three thousand rupees but not less than one
thousand five hundred rupees in the latter, and even if the amount deducted or delayed waes are paid
before the disposal of the application, direct the payment of such compensation, as the authority may
thin* fit, not e0ceedin two thousand rupees!
e!1he amount directed to be paid by the Authority ca be recovered as if it were a fine!
f! $f the employed person is not satisfied with the order of the Authority, he himself or a leal practitioner or
an official of a reistered trade union, if the amount claimed by him is more than )s! 25!.., can, within :.
days from the date of the order prefer an appeal to the Appellate court! U3ubsection 15 / 14V
1%. Ca* the A-tho,.t) ,ef-2e to e*te,ta.* a* a001.cat.o* 0,e2e*te4 to .t;:
1he Authority may refuse to entertain an application presented to it, if after ivin the applicant an
opportunity of bein heard the Authority is satisfied, for reason to be recorded in writin that 7
a!1he applicant is not entitled to present an applicationF
b!1he application is barred by limitation, or
c! 1he applicant shows no sufficient cause for ma*in a direction under 3ection 15!
1he Authority may refuses to entertain an application presented to it if the application is insufficiently
stamped or otherwise incomplete! Ahen the Authority refuses to entertain an application for the said
reason, he shall return it with an indication of the defects! 1he application so refused may be presented
aain after the defects have been made ood! U)ule 4 or ,entral )ulesV

1&. If a*) em01o)ee .2 0,e3e*te4 f,om ma?.*g a* a001.cat.o* fo, 0a)me*t of 4e4-cte4 o, 4e1a)e4 <age2
<.th.* the 0,e2c,.6e4 0e,.o4 of 1.m.tat.o* of t<e13e mo*th2/ ca* the A-tho,.t) a4m.t h.2 a001.cat.o*
afte, the e70.,) of the 2a.4 0e,.o4;
Ender the second proviso to 3ection 15=2> of the Act the Authority is iven power to condone the delay in
ma*in the application within the said period if sufficient cause is shown by the applicant for not ma*in the
application within the said period!

1'. I2 .t co,,ect to co*te*4 that the e70,e22.o* Kte* t.me2 the amo-*t 4e4-cte4K a00ea,.*g .* Sect.o*
1#F!@ of the Act mea*2 that the com0e*2at.o* a<a,4e4 -*4e, that 2ect.o* m-2t 6e a1<a)2 .*
m-1t.01e2 of the <age2 4e4-cte4;
1he compensation awarded under section 15=:> may not be in multiples of the waes deducted! 1he
Authority is free to fi0 such compensation at the proportionate rate which it may thin* to be fair and 5ust
sub5ect to the ma0imum of ten times the amount deducted!

(. I2 the com0e*2at.o* a<a,4e4 -*4e, 2ect.o* 1#F!@ of the Act 0e*a1 o, .* the *at-,e of
,ecom0e*2at.o*;
,ompensation awarded under section 15=:> is not penal but is in the nature of a payment by way of
recompensation for loss or privation by reason of deduction from the waes paid!

1. Ca* a g,o-0 of em01o)e4 0e,2o*2 ma?e a 2.*g1e a001.cat.o* fo, c1a.m.*g 4e4-cte4 o, 4e1a)e4
<age2;
1his can be done if they are wor*in in the same establishment and if deductions have been made from
their waes for the same cause and durin the same waes period or if their waes have remained unpaid
for the same wae period! U3ection 16V

. :a2 the em01o)e4 0e,2o* to 0a) a*) co-,t9fee2 fo, ma?.*g a*4 a001.cat.o* fo, c1a.m.*g 4e4-cte4 o,
4e1a)e4 <age2;
$n the 3tate of Maharashtra and in some other 3tates the employed person is e0empted from payin any
,ourt7fees, other than fees for service of process, for ma*in such applicationF but at the same time the
44
Government is empowered to recover the amount of such court7fees from the employer of the employed
person if the employed person succeeds in the application! U3ection 15AV

!. Ca* the em01o)e, a12o 0,efe, a* a00ea1 aga.*2t the o,4e, of the A-tho,.t);
$f the employer is arieved by the order of the Authority, he also can, within :. days of the date of order,
prefer an appeal to the Appellate ,ourt if the amount ordered to be paid by him is more than )s! :..!.. or
the order imposes on him a financial liability of more than )s! 1...!..

#. If a* em01o)e, <a*t2 to f.1e a* a00ea1 aga.*2t a*) o,4e, of the A-tho,.t) 4.,ect.*g 0a)me*t of
<age2/ .2 he ,eD-.,e4 to com01) <.th a*) co*4.t.o* at the t.me of f.1.*g the a00ea1;
3ection 14=1A> of the Act provides that no such appeal shall lie unless the amount payable under the order
has been deposited by the employer with the Authority!

$. Ca* the amo-*t ,eD-.,e4 to 6e 4e0o2.te4 -*4e, Sect.o* 1%F1A@ 6e 0a.4 afte, the f.1.*g of the a00ea1;
1he amount re'uired to be deposited under 3ection 14=1A> must be paid at the time of filin of the appeal!
1he appeal filed un7accompanied by the certificate of deposit is not maintainable!

%. If a 0e,2o* .2 0,e3e*te4 f,om f.1.*g a* a00ea1 to the A00e11ate A-tho,.t) <.th.* the 0,e2c,.6e4 0e,.o4
of 1.m.tat.o* of th.,t) 4a)2/ ca* the A00e11ate Co-,t acce0t h.2 a00ea1 afte, the e70.,) of the 2a.4
0e,.o4;
1he Act ma*es no provision for condonation of the delay in filin the appeal!

&. If the em01o)e,/ .*2tea4 of a3a.1.*g of the ,eme4) of a00ea1 -*4e, 2ect.o* 1% of the Act/ f.1e2 a <,.t
0et.t.o* -*4e, A,t.c1e $=% of the Co*2t.t-t.o* of I*4.a/ .2 the <,.t 0et.t.o* ma.*ta.*a61e;
1he writ petition is not maintainable if by filin it the employer has deliberately chosen to circumvent the
provisions of law!

'. I2 .t com0ete*t fo, the A-tho,.t) to e*te,ta.* a*4 4ec.4e a* a001.cat.o* fo, 0a)me*t of 2-62.2te*ce
a11o<a*ce;
1he subsistence allowance payable to an employee placed under suspension pendin ?epartmental
+n'uiry is covered within the definition of waes iven under 3ection 2=6> of the Act and, therefore, the
Authority is competent to entertain and decide an application for payment of subsistence allowance!

!(. I2 .t com0ete*t fo, the A-tho,.t) -*4e, the Act to e7am.*e the A-2t.f.a6.1.t) of a* o,4e, of
2-20e*2.o*;
$f an order of suspension has been passed by an officer competent to pass it, the authority under the Act
cannot e0amine its validity to see as to whether it was 5ustified in law or not!

!1. Ca* the A-tho,.t) -*4e, the Pa)me*t of Wage2 Act 4ec.4e the D-e2t.o* of the 2tat-2 of a*
em01o)e4 0e,2o*;
1he Authority under the Payment of Aaes Act is a ,ourt of summary 5urisdiction havin powers to deal
with the simple matter of delay in payment of waes or deduction from waes! $t is not within the
competence of the Authority to decide the 'uestion of the status of an employed person, i!e!, whether he is
a Mistry or welder! 1he matter is a complicated 'uestion of law as also of fact!

!. Ca* the,e 6e attachme*t of 0,o0e,t) 0e*4.*g the 4.20o2a1 of a c1a.m fo, 4e4-cte4 o, 4e1a)e4
<age2;

1he Authority or the Appellate ,ourt can attach the property of an employer pendin the disposal of such
claim if it is satisfied that the employer is li*ely to evade payment of any amount that may be ordered to be
paid by it! U3ection 14AV
45

!!. Ca* a* em01o)ee f.1e a 2-.t aga.*2t h.2 em01o)e,92ee?.*g .*A-*ct.o* ,e2t,a.*.*g the em01o)e, f,om
ma?.*g a*) 4e4-ct.o*2 f,om h.2 <age2;
#o such suit can be filed because accordin to section 22=d> of the Act no ,ourt can entertain any suit for
the recovery of any deduction from waes insofar as the sum so claimed can be recovered by an
application under section 15 of the Act!

!". Ca* a*) em01o)e4 0e,2o* ,e1.*D-.2h h.2 ,.ght2 -*4e, the Act;
An employed person is prohibited from contractin out of the Act, i!e! from ivin up any riht conferred
upon him by the Act, and any contract or areement made by him relin'uishin such rihts is null and void!
U3ection 2:V

!#. I2 a* ag,eeme*t 6et<ee* a* em01o)e, a*4 h.2 em01o)ee2 a-tho,.H.*g the 4e4-ct.o* of -*.o*
2-62c,.0t.o* f,om the 2a1a,.e2 of the em01o)e, *-11 a*4 3o.4 -*4e, Sect.o* ! of the Act;
3uch areement bein beneficial and advantaeous to the employees is not null and void under 3ection 2:
of the Act!

!$. I2 a* em01o)e, ,eD-.,e4 to 4.201a) the a62t,act2 of the Act .* h.2 facto,) o, e2ta61.2hme*t;
+very employer must display in his factory or establishment a notice containin the abstracts of the Act
and the rules made there under in +nlish and also in the lanuae understood by the ma5ority or the
persons employed in the factory or establishment! U3ection 25V

"orm #o! G$ and )ule 2- reardin the display of the abstract of this Act has been deleted by Government
of Maharashtra vide notification date :.7Mar72..1 MGG Pt! $72! +0t! date :.7Mar72..1 P! 21:

!%. What .2 the ,e20o*2.6.1.t) of a* em01o)e, .* ,e20ect of <age2 ,ema.*.*g -*0a.4 o* acco-*t of the
4eath of a* em01o)e4 0e,2o* o* acco-*t of the <he,ea6o-t2 of a* em01o)e4 0e,2o* *ot 6e.*g
?*o<*;
An employer shall stand dischared of his liability to pay such waes if he pays them to the nominee of the
deceased person, and in case he is not able to do so, if he deposits them with the prescribed authority!
U3ection 25AV

!&. I2 4e4-ct.*g 2ome amo-*t o, -*.o* 1e3.e2 f,om <age2 of em01o)ee2 a*4 0a).*g the 2ame to the
-*.o* .*3a1.4 -*4e, 2ect.o* % of the Act;
$f such deduction and payment is made with the consent of the employees and % or with the approval of a
competent ,ourt, it is not invalid under 3ection 4 of the Act!

!'. What a,e the co*4.t.o*2 .m0o2e4 o* 4e4-ct.o*2 fo, ,eco3e,) of a43a*ce2 of <age2;
1! An advance of waes shall not e0ceed four months waes!
2! 1he advance may be recovered in installments by deduction from waes spread over not more
than 19
months!
:! #o installment shall e0ceed one7third of the waes for the month!
-! 1he rate of interest chared for advances shall not e0ceed 6 1%-D per annum! U)ule 19V
"(. A,e the 0,o3.2.o*2 of 2ect.o* 'F@ of the Pa)me*t of Wage2 Act 0e,m.tt.*g 4e4-ct.o* .* <age2 fo,
0a,t.c.0at.o* .* .11ega1 2t,.?e affecte4 6) the 0,o3.2.o*2 of 2ect.o* $ of the I*4-2t,.a1 D.20-te2 Act
0,o3.4.*g fo, 0e*a1t) fo, .11ega1 2t,.?e2;
46
1he Payment of Aaes Act and the $ndustrial ?isputes Act operate in different fields and the provisions of
section 26 of the $ndustrial ?isputes Act providin for penalty for illeal stri*es do not affect the riht of the
manaement to effect a cut in waes to the e0tent permitted by 3ection 9=2> of the Payment of Aaes Act!
Bac? to Co*te*t2 Page
47
T:E E5PLOY5ENT ENC:AN+ES ACTO1'#'
1. What .2 the o6Aect of th.2 Act ;

1his Act compels the employer to notify vacancies occurrin in his
establishment to the specified +mployment +0chanes!
. :o< 4oe2 .t he10 the em01o)e, ;
$t enables the employer to choose the best!
!. :o< 4oe2 .t he10 the 0e,2o* ;
$t provides an opportunity to the person to claim employment!
". I2 .t com0-12o,) fo, the em01o)e, to em01o) tho2e 20o*2o,e4 6)
Em01o)me*t E7cha*ge2 ;
#o, the employer is not oblied to select or employ a person from the
well!
#. Doe2 the Act a001) to each a*4 e3e,) 3aca*c) ;
1his act does not apply to vacancies in ariculture, domestic service,
uns*illed office wor*, employment connected with the staff of Parliament
and also to 5obs where the total duration is less than three months!
$. What .2 the ma**e, of *ot.f).*g the 3aca*c.e2 ;
#otification of vacancies should be in a prescribed form as specified in the
Act!
%. What .2 the t.me 1.m.t to *ot.f) the 3aca*c.e2 ;
15 days before the applicant is re'uired to come for an interview% written
test!
&. I2 the,e a 0,o3.2.o* of *ot.f).*g the 3aca*c.e2 .* Em01o)me*t
e7cha*ge2 o-t2.4e the 2tate ;
&es, $n case the employer thin*s that the choices would be better if he
notifies the vacancies on a state level then he can do so at the ,entral
+mployment +0chane or else he can notify at the local +mployment
+0chane!
'. What .2 the t.me 1.m.t fo, *ot.f).*g the 3aca*c.e2 .* ca2e of *ot.f).*g .* the
Ce*t,a1 Em01o)me*t E7cha*ge ;
1he time limit for notifyin the vacancies in the ,entral +mployment +0chane is
6. days prior to the date of dispatch of the particulars of interview% written test!
48
1(. B) <hat t.me 2ho-14 the em01o)e, a**o-*ce the ,e2-1t2 of the 2e1ect.o*;
An employer has to announce the results of the selection within 15 days of his date
of selection!
11. I2 the em01o)e, ,eD-.,e4 to 2-6m.t ,et-,*2;
&es, the employer needs to 'uarterly and biennial returns in the prescribed
forms to the local +mployment +0chane!
Bac? to Co*te*t2 Page
T,a4e U*.o* Act 91'$
1. :o< ma*) 0e,2o*2 ,eD-.,e4 .* a* .*4-2t,) fo, ,eg.2t,at.o* of a T,a4e U*.o*;
49
1.D or 1.. whichever is less enaed or employed in an establishment or industry!
. :o< ma*) 0e,2o*2 ,eD-.,e4 fo, ma?.*g a* a001.cat.o* fo, Reg.2t,at.o* of a T,a4e U*.o*
Minimum 3even!
!. P,oce4-,e fo, Reg.2t,at.o* of a T,a4e U*.o*
Application in form A
3chedule $
3chedule $$
<ye 7 law of the union
)esolution authori@in 4 members to ma*e an application
,hallans )eceipt for )s! 5..%7
". Whe,e to 2-6m.t the a001.cat.o*;
3ubmit the application before the Asst! 2abour ;fficer havin 5urisdiction over the area where the (ead
;ffice of the union is situated!
#. Ca* the em01o)e,2 fo,m a T,a4e U*.o*;
&es
$. A T,a4e U*.o*/ <h.ch ha2 a* .4e*t.ca1 *ame <.th a*othe,. W.11 .t 6e ,eg.2te,e4;
)eistrar of 1rade Enion shall not reister that union until they ma*e a chane in the identical name!
%. Reg.2t,a, of T,a4e U*.o* <.th4,e< a -*.o*C2 ,eg.2t,at.o* .* 3.e< of *o* 0e,fo,ma*ce of ce,ta.*
2tat-to,) 0,o3.2.o*2. I2 .t 0o22.61e;
)eistrar has the power only to cancel the reistration! (e cannot withdraw the order of reistration
issued by him!
&. Whe* ha00e*2 <he* mem6e,2h.0 fa112 4o<* afte, the 4ate of a001.cat.o*;
Application shall not become invalid!
'. Who .2 a 0,otecte4 <o,?ma*;
;ffice bearers of a reistered 1rade Enion are protected wor*men!
1O. Ca*ce1 the ,eg.2t,at.o* of a T,a4e U*.o* <he*.
1rade Enion ,ertificate obtained by fraud or mista*e!
,ontravened any provision of the 1rade Enion Act!
=Aith two months notice from the )eistrar>
11. Reg.2t,a,C2 4ec.2.o* *ot co,,ect/ <hom to a00ea1
Appeal to respective (ih ,ourt
1. What .2 the m.*.m-m age to 6e a mem6e, of T,a4e U*.o*;
;ne who attained the ae of 15 yearsS
1!. What .2 the m.*.m-m age to 6e a* off.ce 6ea,e,;
Attained the ae of 19 &ears!
1". Reg.2te,2 a*4 ,eco,42 to 6e ma.*ta.*e4 6)/ a T,a4e U*.o*
)eister of membership and subscription in "orm MMI
)eister of receipts and disbursement of eneral "und
Minutes boo* of the meetin stoc* reister
3ubscription receipt boo*!
Bac? to Co*te*t2 Page
50
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