THE FACTORIES ACT, 1948

To set up a factory, the prior approval of the state government has to be obtained for the site on which the factory is to be situated and for the construction or extension of any factory. For this an application in the prescribed form has to be submitted to the Chief Inspector of Factories along with a flowchart of the manufacturing process describing the various stages of the process, plans and specifications for the construction in duplicate and other particulars that may be required. The occupier of a factory is also required to get the factory registered for obtaining a license for operating it and send a notice of occupation to the Chief Inspector of Factories, at least 15 days before he begins to occupy the factory. Renewal of license has to be applied for at least 30 days before expiry along with the prescribed fee (which is the same as for grant of license). By registering the factory, the occupier is required by law to undertake the following measures for ensuring the good health and physical condition of the workers: 1. Cleaning and Disposing of Wastes and Effluents: The occupier is required to keep the factory premises clean and free from waste and ensure that sweeping, removal of dirt and cleaning with disinfectant is done daily. 2. Ventilation, Temperature and Humidity: The factory premises should be adequately ventilated by circulation of fresh air and comfortable temperature should be maintained in every workroom. 3. Latrines, Urinals and Spittoons: Every factory should provide adequately lighted and ventilated latrines and urinals for male and female workers separately, and should be washed and cleaned with detergents and disinfectants. 4. Avoid Overcrowding: The workplace should not be overcrowded by workers, to an extent, it may be injurious to their health. Besides these, the Factory Act also requires a number of welfare amenities to be provided to the workers in a factory. Every factory is required to provide adequate and suitable facilities for: 1. Washing and drying of wet clothes and storing of clothes not worn during working hours. 2. Sitting arrangements for employees who are required to work in standing position in order that they may take short rests in the course of their work. 3. Readily available first-aid boxes (one box for every 150 workers) to be provided. 4. Ambulance rooms (when 500 or more persons are working in the factory) of the prescribed size, having equipment and medical and nursing staff as prescribed. 5. A canteen (when 250 or more workers are employed in the factory) that is suitably located and sufficiently lighted equipped with necessary furniture, utensils, etc. and operated on non-profit basis. 6. Crches (when 30 or more women workers are employed in the factory), which should be sufficiently lighted and maintained in a clean condition under the charge of women, trained in infant care. 7. If in a factory where 500 or more workers are employed, the employer has to appoint Welfare Officers as prescribed by the state government.

Display Notices, Maintain Registers and Submit Returns: 1. Notices: The occupier has to display a notice containing abstract of the provisions of the Act and the rules made there under, in the prescribed form, in English and in a language understood by the majority of the workers in the factory. 2. Registers: The occupier should maintain registers or records as may be prescribed by the state government in the rules. The registers generally prescribed are: Muster rolls (separate for adult workers and children) ; Register of Accidents and Dangerous Occurrences ; Inspection Book ; Overtime muster roll ; Salary register ; Fine deduction register ; Wage slips 3. Returns: The occupier is generally required to furnish certain returns such as Annual Return, Halfyearly Returns, which contain particulars relating to wages, leaves, holidays, etc.

THE PAYMENT OF WAGES ACT, 1936

Objective: This act guarantees the payment of wages on time and without any deductions except those authorized under the act. It regulates the payment of wages to certain classes of employed persons. Applicability: It extends to all the factories & industrial establishments in whole of India. Rights of the employees: Claims for non-payment of wages shall be filed before the CJM (claim authority) as follows: By employee himself in Form A. On behalf of employee by any other person in Form B. By group of employees in Form C. The claim should be filed in duplicate within 12 months from due date before CJM. Penalties are provided in the Act for violation. Appeal can be made against the orders of CJM to the court of small causes and district courts. Responsibility of Employer for payment of wages: Every employer shall be responsible for the payment to persons employed by him (except that on contract)of all wages required to be paid under this Act. Fixation of wage-periods: Every person responsible for the payment of wages under section 3 in respect of which such wages shall be payable. No wage-period shall exceed one month. Timely Payment of Wages: Wages must be paid (On a working day): 1. Before the expiry of the 7th day after the last day of the wage-period, if less than 1000 workmen are employed and in the other case on the 10th day. 2. In Current currency notes and by cheque or both by crediting the wages in the employees bank account after obtaining his written authority. 3. Before the expiry of the second day, to the person or employee whose employment is terminated.

Deductions from the wages of an employed person: Fines, absenteeism, damage to or loss of goods directly attributable to his neglect, services supplied by the employer, income-tax payable by the employee, premium for LIC policy on written authorization of the employed person, deductions made with the authorization of the employed person. Total amount of deductions should not exceed 75% of wages of the employee in any wage-period if whole or part of the deductions is meant for payments to co-operative societies, in other cases it should not exceed 50%. Levy of Fines: They should not exceed 3% of the wages in a month, be recovered within 90 days of the date of the act or omissions be imposed after a proper show cause procedure and cannot be imposed on an employed person of less than 15 years of age.

THE MINIMUM WAGES ACT, 1948

OBJECT: For fixing minimum rates of wages in certain employments. APPLICABILITY: It extends to the whole of India and applies to schedule Employments in respect of which minimum rates of wages have been fixed under this act. SCHEDULED EMPLOYMENTS: An employment specified in the schedule, or any process or branch of work forming part of such employment. FIXING OF MINIMUM RATES OF WAGES: 1. The appropriate government shall fix the minimum rates of wages payable to employees employed in a scheduled employment. 2. Revise the minimum rate of wages if necessary at intervals not exceeding five years. PAYMENT OF MINIMUM RATES OF WAGES: The employer shall pay to every employee in a scheduled employment under him-wages at the rate not less than the minimum rates of wages fixed under the Act. HOURS OF WORK, OVERTIME : The Act also provides for regulation or working hours, overtime, weekly holidays and overtime wages. Period and payment of wages, and deductions from wages are also regulated. CLAIMS UNDER THE ACT: This section makes provisions to appoint authorities to hear and decide all claims arising out of payment less than the minimum rates of wages or any other monetary payments due under the Act. The presiding officers of the Labor court and Deputy Labor Commissioners are the authorities appointed. WHO CAN FILE A CLAIM PETITION : The Employee, Any legal practitioner, Any Inspector

or Any person acting with the permission of the authority under Section-20 (I)
REGISTERS AND RECORDS

Every employer shall maintain the following registers and records as required under the Karnataka Minimum Wages Rules 1958 enacted vide section-30 of the Act. Register of wages in Form No. XI or Form XII; A muster-roll in Form No. VI; Register of fines, Form No. I; Register of deductions for damage or loss in Form No. II; Register of overtime in Form No. V; Visit book ; A wage slip in Form No. XIII shall be issued by every employer to every person employed by him at least a day prior to the disbursement of wages. ANNUAL RETURNS: Annual returns in Form III or Form III a as per rule 21 (4) (iii) shall be submitted to the Inspector before the first day of the February of the succeeding year. PRESERVATION OF REGISTERS: All the registers shall be preserved for a period of three years after the date of last entry made therein PENALITY: Any employer who contravenes any of the provisions of this Act other than those relating to Section 12 and 13 of any rule or any order made there under shall be punishable with fine, which may extend to Rs.500. Any employer who contravenes the provision relating to the payment of minimum rates of wages fixed (Section- 12) hours of work stipulated for constituting a normal working day as per section 13 shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to Rs. 500/- or with both.

THE PAYMENT OF BONUS ACT

Objective: The payment of Bonus Act provides for payment of bonus to persons employed in certain establishments of the basis of profits or on the basis of production. Applicability of the act : It extends to every factory wherein atleast 10 persons are employed with the aid of power or where 20 or more workmen are employed without the aid of power on any day during an accounting year.

Eligibility for bonus: Every employee receiving salary or wages upto RS. 3,500 p.m. and engaged in any kind of work whether skilled, unskilled, managerial, supervisory etc. is entitled to bonus for every accounting year if he has worked for at least 30 working days in that year.
Disqualification for bonus: Notwithstanding anything contained in the act, an employee shall be disqualified from receiving bonus, if he is dismissed from service for fraud or riotous or violent behavior while in the premises of the establishment. Minimum Bonus payable: The minimum bonus which an employer is required to pay even if he suffers losses during the accounting year or there is no allocable surplus is 8.33 % of the salary or wages during the accounting year, or Rs. 100 in case of employees above 15 years and Rs 60 in case of employees below 15 years, at the beginning of the accounting year, whichever is higher.

Maximum bonus payable: If in an accounting year, the allocable surplus, calculated after taking into account the amount set on or the amount set of exceeds the minimum bonus, the employer should pay bonus in proportion to the salary or wages earned by the employee in subject to a maximum of 20% of such salary or wages. Time limit for payment: The bonus should be paid in cash within 8 months from the close of the accounting year or within one month from the date of enforcement of the award or coming into operation of a settlement following an industrial dispute regarding payment of bonus. Duties of employer To pay the annual bonus as required under the Act; To submit an annual return of bonus paid to employees during the year, in Form D, to the Inspector, within 30 days of the expiry of the time limit specified for payment of bonus; to produce the registers/records as per mentioned in the law; To get his account audited as per the directions of a Labor Court/Tribunal or of any such other authority. Rights of employer To forfeit bonus of an employee, who has been dismissed from service for fraud or riotous behavior; to make permissible deductions from the bonus payable to an employee, such as, festival bonus paid and financial loss caused by misconduct of the employee; to refer any disputes relating to application or interpretation of any provision of the Act, to the Labor Court or Labor Tribunal.

Rights of employees: To claim bonus payable under the Act and to make an application to the Government, for the recovery of bonus due and unpaid, within one year of its becoming due; to refer any dispute to the Labor Court.

Penalties
Offences and penalties: For contravention of the provisions of the Act or rules the penalty is imprisonment upto 6 months or fine up to Rs.1000, or both. For failure to comply with the directions or requisitions made the penalty is imprisonment upto 6 months or fine up to Rs.1000, or both. Calculation of bonus: In case of an employee receiving salary or wages above Rs. 2,500 the bonus payable is to be calculated as if the salary or wages were Rs. 2,500 p.m. only.

THE PAYMENT OF GRATUITY ACT, 1972 Applicability of the act: The Act provides for the payment of gratuity to workers employed in every
factory employing 10 or more persons on any day of the proceeding 12 months. An establishment to which the Act has become applicable shall continue to be governed by the Act even if the number of persons employed falls below 10 at any subsequent stage.

Features of the act: All the employees are entitled to the payment of gratuity on completion of 5 years
of service. In case of death or disablement there is no minimum eligibility period. The amount of gratuity payable shall be at the rate of 17 days wages based on the rate of wages last drawn, for every completed year of service. The maximum amount of gratuity payable is Rs. 3, 50,000/-. Formula is - Last Wages *15*No. of services/26 RESPONSIBILITY OF THE EMPLOYER: It is the duty of the employer to determine the amount of gratuity as soon as it becomes payable and to give notice of the same to the person to whom gratuity is payable and also to the Controlling Authority. Failure to do so shall render him liable to pay the interest at the prevailing rate from time taken. RESPONSIBILITY OF THE EMPLOYEE: In case the employee is not paid the due amount of gratuity he should apply, ordinarily within thirty days, in Form-I to the employer. Is an employer fails to pay due gratuity even after the receipt of notice in Form-1, the claimant employee, may within ninety days of the occurrence of the case for the application, should apply in Form-IV, to the Controlling Authority for issuing direction to the employer. After conducting the enquiry as prescribed, the Controlling Authority will determine the amount payable and direct the employer to make the payment. Application for gratuity: 1. An employee who is eligible for payment of gratuity under the Act, shall apply, ordinarily within thirty days from the date the gratuity became payable, in Form 'I' to the employer: 2. A nominee of an employee who is eligible for payment of gratuity under the second provision to sub-section (1) of section 4 shall apply, ordinarily within thirty days from the date of gratuity became payable to him, in Form J to the employer: 3. A legal heir of an employee who is eligible for payment of gratuity under the second provision to sub-section (1) of section 4 shall apply, ordinarily within one year from the date of gratuity became payable to him, in Form 'K' to the employer. 4. Where gratuity becomes payable under the Act before the commencement of these rules, the periods of limitation specified in sub-rules (1),(2) and (3) shall be deemed to be operative from the date of such commencement. 5. An application for payment of gratuity filed after the expiry of the periods specified in this rule shall also be entertained by the employer, if the applicant adduces sufficient cause for the delay in preferring his claim, and no claim for gratuity under the Act shall be invalid merely because the claimant failed to present his application within the specified period. 6. An application under this rule shall be presented to the employer either by personal service or by registered post acknowledgement due Payment of gratuity: Gratuity shall be payable to an employee on the termination of his employment of his employment after he has rendered continuous service for not than five years - on his retirement or resignation, or on his death or disablement due to accident or disease.

Legal formalities under the act

Mode of payment: The gratuity payable under the Act shall be paid in cash. Provided that in case the eligible employee so desires and the amount of gratuity payable is less than one thousand rupees, payment may be made by postal money order after deducting the postal money order commission therefore from the amount payable. Notice of opening, change or closure of the establishment:

Within thirty days of the rules becoming applicable to an establishment, a notice in Form A shall be submitted by the employer to the controlling authority of the area. A notice in Form B shall be submitted by the employer to the controlling authority of the area within thirty days of any change in the name, address, employer or nature of business. Where an employer intends to close down the business he shall submit a notice in Form C to the controlling authority of the area at least sixty days before the intended closure.

Display of notice:

The employer shall display a notice at or near the main entrance of the establishment in bold letters in English and in a language understood by the majority of the employees specifying the name of officer with designation authorised by the employer to receive on his behalf notices under the Act or the rules. A fresh notice shall be displayed immediately after the notice referred to in sub-rule (1) becomes illegible or requires a change.

Nominations:

A nomination shall be in Form 'F' and submitted in duplicate by personal service by the employee, after taking proper receipt or by sending through registered post. 1. In the case of an employee who is already in employment for a year or more on the date of commencement of these rules, ordinarily, within ninety days from such date. 2. In the case of an employee who completes one year of service after the date of commencement of these rules, ordinarily within thirty days of the completion of one year of service.

Within thirty days of the receipt of nomination in Form 'F' under sub-rule (1), the employer shall get the service particulars of the employee, verified with reference to the records of the establishment and return to the employee, after obtaining a receipt thereof, the duplicate copy of the nomination in form 'F' duly attested by the employer as a token of recording of the nomination by the employer.

An employee who has no family at the time of making a nomination shall, within ninety days of acquiring a family submit in the manner specified in sub-rule (1), a fresh nomination, as required under sub-section (4) of section 6, duplicate in Form 'G' to the employer and thereafter the provisions of sub-rule (2).

A notice of modification of a nomination, including cases where a nominee predeceases an employee, shall be submitted in duplicate in Form 'H' to the employer in the manner specified in sub-rule (1), and thereafter the provisions of sub-rule (2) shall apply.

A nomination shall be signed by the employee or, if illiterate, shall bear his thumb impression, in the presence of two witnesses, who shall also sign a declaration to that effect in the nomination.

A nomination, shall take effect from the date of receipt thereof by the employer.

PENALTY: The Act provides that whoever makes false statement for the purpose of avoiding any payment shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to ten thousand rupees or with both. An employer who contravenes any provisions of the Act shall be liable for imprisonment for a term of not less than three months but which may extend to one year or with fine which shall not be less than ten thousand rupees but which may extend to twenty thousand rupees or with both. Where the offence relates to non-payment of gratuity the employer can be punished with imprisonment for a term which is not less than six months.

THE EMPLOYEES STATE INSURANCE ACT Objective of the act: ESI act is a major legislation on social security for industrial workers in India. The scheme is devised so as to provide social protection to workers in contingencies such as illness, or any other health risks due to employment injury or occupational hazards. Applicability of the act: It applies to all factories in India employing 10 or more persons and carrying on a manufacturing process with the aid of power or employing 20 or more persons and carrying on a manufacturing process without the aid of power. Employees entitled: Every employee, whether employed directly or through a contractor, who is in receipt of wages up to Rs. 6,500 p.m. is entitled to be insured under the E.S.I. Act. An employer/establishments covered under the E.S.I. Act is exempt from the provisions of Maternity Benefit Act and Workmens Compensation Act. Advantages to both the parties The Employees State Insurance Act provides for certain benefits to employees in case of sickness, maternity and employment injury. EMPLOYEES BENEFITS Sickness Benefit: Cash benefit for the period of sickness occurring during any benefit at the standard benefit rate, corresponding to his daily average wages: The contributions in respect of him are payable for not less than 78 days in the corresponding contribution period. In the case of a newly appointed employee, who has a shorter contribution period of less than 156 days, and if he pays contribution for not less than half the number of days available for working in such contribution period.

Maternity Benefit: A periodical cash benefit is payable to an insured woman employee, in case of miscarriage, medical termination of pregnancy, premature birth of a child, or sickness arising from pregnancy, etc., if the contributions, in respect of her were payable for atleast 70 days in the two immediately preceding contribution periods. The benefit is payable at twice the standard benefit rate or Rs. 20, whichever is higher, for all days on which she does not work for remuneration during the period prescribed as under. Medical Bonus: Rs. 250 on account of confinement expenses shall be paid to an insured woman and an insured person in respect of his wife, at a place where necessary medical facilities under ESI Scheme are not available. Disablement Benefit: Disablement benefit is payable in the form of cash installments, to an employee who is injured in the course of his employment and is, permanently or temporarily disabled. BENEFITS NOT TO BE COMBINED An employee shall not be entitled to receive for the same periodBoth sickness benefit and maternity benefit; or Both sickness benefit and disablement benefit for temporary disablement; or Both maternity benefit and disablement benefit for temporary disablement. The employee shall be entitled to choose any one of the aforesaid benefits, at his option. PAYMENT OF BENEFIT IN CASE OF DEATH: If an employee dies during any period for which he is entitled to a cash benefit, the amount of such benefit shall be payable up to and including the day of his death. The amount of benefit shall be paid to the nominee or, where there is no nomination, to the legal representative of the deceased employee. If an insured employee dies, the eldest surviving member of his family or the person who incurs the expenditure of funeral of the deceased employee is entitled to reimbursement of such expenditure subject to a maximum of Rs. 1,500. The claim for the payment of funeral expenses should be submitted in the prescribed form along with prescribed documents within 3 months of the death of the employee. Responsibilities of both the parties Employers contribution: 4.75% of the wages paid/payable in respect of every wage period. Employers contribution: 1.75% of their wages. But in case the "average daily wages in a wage period" are equal to or less than Rs. 40 employees are exempted from payment of their contribution. It is the employers responsibility to deposit his own as well as employees contributions in respect of all employees including the contract labor, into the E.S.I. Account. The employer may deduct the employees contribution from his wages in respect of the period for which the contribution is payable. OBLIGATIONS OF EMPLOYERS: The employer should get his factory registered with the E.S.I. Corporation within 15 days after the Act becomes applicable to it, and obtain the employers Code Number.

The employer should deposit the employees and his own contributions to the E.S.I. Account in the prescribed manner, whether he has sufficient resources or not, his liability under the Act cannot be disputed. The employer should not reduce the wages of an employee on account of the contribution payable by him The employer should report to the E.S.I. authorities of any accident in the place of employment, within 24 hours or immediately in case of serious or fatal accidents. He should make arrangements for first aid and transportation of the employee to the hospital. The employer should inform the local office and the nearest E.S.I. dispensary/hospital, in case of death of any employee, immediately. The employer must not put to work any sick employee and allow him leave, if he has been issued the prescribed certificate. OBLIGATIONS OF EMPLOYEES: Notice of injury: The insured employee who sustains an employment injury should give a notice of the same to the employer or manager, by means of entry in the Accident Book or otherwise in writing or even orally. This notice is very important for claiming the disablement benefit. Legal formalities / registers / documents under the act The employer should cause to be maintained the prescribed records/registers namely the register of employees, the inspection book and the accident book. Penalties The Employer/Company is empowered to pay penalties if any as follows: Period of delay in Payment of Contribution Rate of Damages/Penalties on amount due Upto less than 2 months 2months and above but less than 4 months 4 months and above but less than 6 months 6 months and above 5% 10% 15% 25%

THE WORKMENS COMPENSATION ACT

Objective / Importance / reason / need of the act

Workmens Compensation Act aims to provide workmen and/or their dependents some relief in case of accidents arising out of and in the course of employment and causing either death or disablement.

Employees entitled to compensation: Every employee (excluding casual employees), who suffers an injury in any accident arising out of and in the course of his employment. Features of the act:
The employer of any establishment covered under this Act, is required to compensate an employee:

Who has suffered an accident arising out of and in the course of his employment, resulting into death, permanent total disablement, permanent partial disablement, temporary disablement whether total or partial, who has contracted an occupational disease. However the employer shall not be liable:

In respect of any injury which does not result in the total or partial disablement of the workmen for a period exceeding three days In respect of any injury not resulting in death, caused by an accident which is directly attributable to the willful disobedience of the workman to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of workmen.

Duties of employers: To pay compensation for an accident suffered by an employee, in accordance with the Act. To submit a statement to the Commissioner (within 30 days of receiving the notice) in the prescribed form, giving the circumstances attending the death of a workman as result of an accident and indicating whether he is liable to deposit any compensation for the same. To submit accident report to the Commissioner in the prescribed form within 7 days of the accident, which results in death of a workman or a serious bodily injury to a workman. To maintain a notice book in the prescribed from at a place where it is readily accessible to the workman. To submit an annual return of accidents specifying the number of injuries for which compensation has been paid during the year, the amount of such compensation and other prescribed particulars. Duties of employees: To send a notice of the accident in the prescribed form, to the Commissioner and the employer, within such time as soon as it is practicable for him. The notice is precondition for the admission of the claim for compensation. To present himself for medical examination, if required by the employer.

Legal formalities under the act

When compensation to be deposited with commissioner: The amount of compensation is not payable to the workman directly. It is generally deposited along with the prescribed statement, with the Commissioner who will then pay it to the workman. Any payment made to the workman or his dependents, directly, in the following cases will not be deemed to be a payment of compensation: in case of death of the employee; in case of lump sum compensation payable to a woman or a minor or a person of unsound mind or whose entitlement to the compensation is in dispute or a person under a legal disability. Besides, compensation of Rs. 10 or more may be deposited with the Commissioner on behalf of the person entitled thereto. The receipt of deposit with the Commissioner shall be a sufficient proof of discharge of the employers liability.

REGISTRATION OF AGREEMENTS OF COMPENSATION: An agreement for payment of compensation which has been registered shall be enforceable under this act notwithstanding anything contained in the Indian Contract Act, where the amount payable as compensation has been settled by agreement a memorandum thereof shall be sent by the employer to the Commissioner, who shall, on being satisfied, record the memorandum in a registered manner. THE INDUSTRIAL DISPUTES ACT, 1947 This Act states the conditions for retrenchment of workers. It is necessary for factory owners to hire and fire so as to increase efficiency and productivity. Presently, a system of last come, first go exists where the employer is required to retrench the person last employed in any category unless he can prove that the employee retrenched is inefficient, unreliable or habitually irregular. Even then, no workman who has been in continuous service for at least one year can be retrenched until and unless the following conditions are met: 1. Notice/Notice Pay: The employer is required to serve three months notice to retrench the workman with reasons for the same, in the prescribed form, to every workman who is being retrenched. 2. Approval of the Government: The employer is required to obtain prior approval of the concerned governmental authority. Permission can be obtained by submitting an application in form within 60 days before the proposed retrenchment. The application should clearly state the reasons for the intended retrenchment. A copy of the application should be served simultaneously on the workman concerned. 3. Retrenchment Compensation: Where the approval of the government has been granted the workman being retrenched shall be entitled to receive retrenchment compensation.

THE TRADE UNIONS ACT, 1926 The Trade Unions Act, 1926 provides for registration of trade unions with a view to render lawful organisation of labor to enable collective bargaining. The Act extends to the whole of India and applies to all kinds of unions of workers and associations of employers, which aim at regularizing labor management relations. A Trade Union is a combination whether temporary or permanent, formed for regulating the relations not only between workmen and employers but also between workmen and workmen or between employers and employers. Registration: Registration of a trade union is not compulsory but is desirable since a registered trade union enjoys certain rights and privileges under the Act. Minimum seven workers of an establishment (or seven employers) can form a trade union and apply to the Registrar for it registration. The application for registration should be in the prescribed form and accompanied by the prescribed fee, a copy of the rules of the union signed by at least 7 members, and a statement containing (a)the names, addresses and occupations of the members making the application, (b)the name of the trade union and the addresses of its head office, and (c)the titles, names, ages, addresses and occupations of its office bearers. If the union has been in existence for more than a year, then a statement of its assets and liabilities in the prescribed form should be submitted along with the application. On being satisfied with all the requirements, the registrar shall register the trade union and issue a certificate of registration, which shall be conclusive evidence of its registration.

Dissolution of a trade union: A registered trade union can be dissolved in accordance with the rules of the union. A notice of dissolution signed by any seven members and the secretary of the union should be sent to the registrar within 14 days of the dissolution. On being satisfied the registrar shall register the notice and the union shall stand dissolved from the date Amalgamation of trade unions: Any registered trade union may amalgamate with any other union(s), provided that at least 50% of the members of each such union record their votes and at least 60% of the votes so recorded are in favor of amalgamation. A notice of amalgamation signed by the secretary and at least 7 members of each amalgamating union should be sent to the registrar, and the amalgamation shall be in operation after the Registrar registers the notice. MATERNITY BENEFIT ACT

Objective of the act: To protect the dignity of motherhood and of a new persons birth by providing for the full and healthy maintenance of the woman and her child at this important time when she is not working. Applicability of the act: It extends to the whole of India and applies to every factory where 10 or more persons are employed on any day of the preceding 12 months. However, the Act does not apply to any such factory to which the provisions of the Employees State Insurance Act are applicable for the time being. Features of the act: Every woman shall be entitled to, and her employer liable for, the payment of maternity benefit, which is the amount payable to her at the rate of the average daily wage for the period of her actual absence.
Period for which maternity benefit is allowed: The maximum period for which any woman shall be entitled to maternity benefit shall be 12 weeks in all whether taken before or after childbirth. However she cannot take more than six weeks before her expected delivery. Who is entitled to maternity benefit? Every woman employee, who has actually worked in the establishment for a period of at least 80 days during the 12 months immediately preceding the date of her expected delivery, is entitled to receive maternity benefit. The qualifying period of 80 days shall not apply to a woman who has immigrated into the State of Assam and was pregnant at the time of immigration. Legal formalities under the act Notice for maternity benefit: A woman employee entitled to maternity benefit may give a notice in writing (in the prescribed form) to her employer, stating as follows: That her maternity benefit may be paid to her or to her nominee (to be specified in the notice); That she will not work in any establishment during the period for which she receives maternity benefit

That she will be absent from work from such date (to be specified by her), which shall not be earlier than 6 weeks before the date of her expected delivery. The notice may be given during the pregnancy or as soon as possible, after the delivery. On receipt of the notice, the employer shall permit such woman to absent herself from work after the day of her delivery. The failure to give notice, however, does not disentitle the woman to the benefit of the Act.

Duties of employers: To pay maternity benefit and/or medical bonus and allow maternity leave and nursing breaks to the woman employees, in accordance with the provisions of the Act. Not to engage pregnant women and not to dismiss or discharge a pregnant woman employee during the period of maternity leave. Rights of employees: To make a complaint to the Inspector and claim the amount of maternity benefit improperly withheld by the employer. To appeal against an order of the employer depriving her of the maternity benefit or medical bonus or dismissing her from service, within 60 days of the service of such order. Penalties Penalties for contravention of act by employer: For failure to pay maternity benefit as provided for under the Act, the penalty is imprisonment upto one year and fine upto Rs. 5000. The minimum being 3 months and Rs. 2000 respectively. For dismissal or discharge of a woman as provided for under the Act, the penalty is imprisonment upto one year and fine upto Rs. 5000. The minimum being 3 months and Rs.2000 respectively.

THE EMPLOYEES PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952 The Employees Provident Funds and Miscellaneous Provisions Act, provides for compulsory contributory fund for the future of an employee after his retirement or for his dependents in case of his early death. It extends to the whole of India and is applicable to:

Every factory engaged in any industry specified in Schedule 1 in which 20 or more persons are employed. Every other establishment employing 20 or more persons or class of such establishments which the Central Govt. may notify.

Any other establishment so notified by the Central Government even if employing less than 20 persons. Employees entitled: Every employee, who is in receipt of wages upto Rs. 6,500 p.m., shall be eligible for becoming a member of the funds. Employers contribution: The employer is required to contribute the following amounts towards Employees Provident Fund and Pension Fund

a. In case of establishments employing less than 20 persons or a sick industrial (BIFR) company or
sick establishments 10% of the basic wages, dearness allowance and retaining allowance. b. In case of all other establishments employing 20 or more person-12% of the wages, D.A., etc. Where, the pay of an employee exceeds RS. 6500 p.m., the contribution payable to Pension Fund shall be limited to the amount payable on his pay of RS. 6500 only, however, the employees may voluntarily opt for the employers share of contributions on wages beyond the limit of RS. 6500 to be credited to the Pension Fund. Penalty for default in payment: If the employer defaults in making payment of any contribution, administrative charges, to the Fund, he shall be liable to pay, by way of penalty, damages at the following rates: Period of Default (i) Less than 2 months (ii) 2 months and above but less than 4 months (iii) 4 months and above but less than 6 months (iv) 6 months and above Rate of Damages (%p.a.) 17 22 27 37

INTEREST
The employer shall be liable to pay simple interest @ 12% p.a. on any amount due from him under the Act, from the date on which it becomes due till the date of its actual payment.

THE CONTRACT LABOUR (Regulations and Abolition) ACT, 1970 OBJECT: To regulate the employment of contract labor in certain establishments and to provide for its abolition in certain circumstances and for matters connected therewith. APPLICABILITY: It extends to the whole of India and applies to: Every establishment in which twenty or more persons are employed or were employed on any day of the preceding twelve months as contract labor. To every contractor who employs or who employed on any day of the preceding twelve months twenty or more workmen. WORKMEN: Any person employed in any factory to do any skilled or semi-skilled or unskilled, manual, supervisory, technical or clerical work for hire or reward whether the terms of the employment be expressed or implied but does not include: a. Persons employed mainly in a managerial or administrative capacity b. Persons being employed in a supervisory capacity draws wages exceeding Rs.500/ per month.

REGISTRATION OF ESTABLISHMENT: Every principal employer of an establishment shall make an application for registration in triplicate in Form No.1 to the registering officer of the area along with a treasury receipt showing payment of the prescribed fee. If the application for registration is complete in all respects, the registering officer shall register the establishment subject to rule 17 to 20 and issue a registration certificate in Form-II (Section 7 to 9 read with rule 17 to 20). PROHIBITION OF EMPLOYMENT OF CONTRACT LABOUR: The appropriate govt. is empowered to prohibit employment of contract labor in any process of operation or other work in any establishment after consultation with the Advisory Board. GRANT OF LICENCES: Every contractor shall make an application for the grant of a license in triplicate in Form No.IV along with a treasury receipt showing the prescribed fee to the licensing officer. The application shall also be accompanied by a certificate by the principle employer in Form-V. SECURITY: The contractor shall deposit a security amount at the rate of Rs.20 for each of the workman to be employed as a contract labor at the time of making application for license. RENEWAL OF LICENCE: Every contractor shall make an application for the Renewal of license in Form VII in triplicate along with the required fee not less Than thirty days before the expiry date. If the renewal application is not submitted within the time specified the contractor shall be liable to pay a fee of 25% in excess of the fee ordinary Payable. A duplicate certificate shall be issued on payment of Rs. 5/-

REGISTRATION FEE: As we have more than 500 workers in the factory so we will pay Rs 10,000 as registration fees.
LICENSING FEE/RENEWAL FEE: As we have more than 500 workers in the factory so we will

pay Rs 10,000 as licensing fee.

APPEAL: Any persons aggrieved by an order of the registering officer/Licensing officer may within 30 days from the date of communication of the order prefer an appeal to the appellate officer. LIABILITY OF PRINICPAL EMPLOYER: If any contractor does not provide the amenities prescribed above within 7 days from the commencement of the employment, the principle employer shall make provisions to provide it within 7 days. REGISTERS AND RECORDS: Every Principal employer shall maintain a register of contractors in Form No.12 Every contractor shall maintain a register of contract labors in Form No. 13 ; A muster-roll in Form-16 ; A register of wages in Form 17 ; A register of deductions, fines etc. in Form 20 ; A register of fines in Form 21 ; A register of advances in Form 22 ; A register of overtime in Form 23

Every contractor shall issue an employment card and is wages slip in Form 19 at least a day prior to the disbursement of wages in Form14 to each worker within 3 days of the employment of the worker and issue a service certificate in Form 15 on termination of his employment. ANNUAL RETURNS: Contractor shall send half yearly return in Form 24 in duplicate to the licensing officer not less than thirty days from the close of the half year. Principal employer shall send Annual Return in Form 25 in duplicate to the registering officer not later than the 15th February of the succeeding year. PENALITY: The offences relating to the obstruction to the inspector and refuses to produces the register and records etc. shall be punishable with imprisonment for a term which may extend to three months or with fine which may extend to Rs. 500/- or with both. Contraventions of provisions regarding employment of contract labor shall be punishable with imprisonment for a term which may extend to three months or with fine which may extend to Rs. 100/- for every day. Contraventions of the provisions of the Act or Rules in which no other penalties elsewhere provided, shall be punishable with imprisonment for a term which may extend to three months or with fine which may extend to Rs. 1,000/or with both. Responsibilities Principal Employer should ensure that the Contractor does the following: a. Pays the wages as determined by the Government or Commissioner of Labor., if any. b. In their absence pays fair wages to contract laborer. c. Provides the following facilities: Canteen (if employing 100 or more workmen in one place) and if the work is likely to last for 6 months or more ; Rest rooms where the workmen are required to halt at night and the work is likely to last for 3 months or more ; Requisite number of latrines and urinals - separate for men and women; Drinking water; Washing; First Aid; Crche e. Maintains various registers and records, displays notices, abstracts of the Acts, Rules etc. f. Issues employment card to his workmen, etc. Checklist for Principal Employer: 1. Registration of the Establishment. 2. Display of ate of wages, hours of work, wage period, date of payment of wages. 3. Maintenance and Preservation of Register of Contractor. 4. Filing of Return of Commencement and Completion of the Contract. 5. Filing of Annual Return. 6. Ensure provision that facilities of Canteen, Drinking Water, Washing, Rest Room, Latrines and Urinals, First Aid, Crche are provided by the Contractor. Checklist for Contractor: 1. Licensing. 2. Renewal of the License. 3. Maintenance of Register of Persons employed, Muster Roll, Register of wages, Register of Fines, etc.

4. Display of rate of wages, hours of work, wage period, date of payment of wages. 5. Employment card. 6. Service Certificates. 7. Half yearly return. Responsibility for payment of wages: 1. A contractor will be responsible for payment of wages to each worker employed by him as contract labor and such wages shall be paid before the expiry of such period. 2. Every principal employer shall nominate a representative duly authorized by him to be present by the contractor and it shall be the duty of such representative to certify the amount paid as wages in such manner as may be prescribed. 3. It shall be the duty of the contractor to ensure the disbursement of wages in the presence of the authorized representative of the principal employer. 4. In case the contractor fails to make payment of wages within the prescribed period, then the principal employer shall be liable to make payment of wages, to the contract labor employed by the contractor and recover the amount so paid from the contractor either by education from any amount payable to the contractor under any contract so as a debt payable by the contractor.

DISCIPLINARY PROCEDURE
Following are the Principles of Disciplinary Procedure which would be followed: No disciplinary action will be taken against any employee until his/her case has been fully investigated. At every stage during the procedure the employee will be given complete information about the action which would be taken against him. The employee would be given a complete chance to present his/her case. The employee will have the right of access to evidence being brought against him and the right to produce evidence of his own. At all stages the employee will have the right to be accompanied by a fellow employee of the Organization or staff or trade union representative who may be present during the disciplinary interview. No employee will be dismissed for a first breach of discipline except in the case of gross misconduct, when the penalty will be dismissal without notice or payment in lieu of notice. Following would be the procedure adopted buy the company against the employee who is liable to the disciplinary action taken against him: 1. Stage one: Verbal warning: In the first instance the employee would be given a verbal warning against his act of misconduct. Following are some cases which would merit a verbal warning: Persistent lateness ; Absenteeism ; Insubordination 2. Stage two: Formal written warning: A repetition of the offence or if there is no improvement or if the offence is considered sufficiently serious to warrant it, a formal written warning will be issued. A detailed account of the incident and action will be written. A copy of this will be issued to the employee together with the improvement required and the time scale. A further copy will

be held on the individuals personnel file. Following are some cases which would merit a Formal written warning: Misuse of organizations equipment; Smoking in prohibited areas; Unauthorized absence from work Any behavior likely to bring the Organizations reputation into disrepute 3. Stage three: Final written warning: A repetition of a previous offence will justify a final written warning. At this stage a detail of the incident and the action to which is employee is liable will be written and a copy of which will be issued to the employee together with the improvement required and the time scale. A member of the HR team will be present when the warning is given. No final warning shall be issued without the express authority of the appropriate Director. Following are some cases which would merit a Final written warning: Being unfit to work due to the influence of alcohol or un- prescribed drugs. Rude or offensive behavior to customers, external contacts or fellow employees. Acts of sexual harassment. Acts of racial harassment. 4. Stage four: Dismissal gross misconduct: In cases of gross misconduct, an employee may be dismissed (without notice in writing). No employee will be immediate dismissed without prior reference to the Chief Executive but in case hes not there then a employee will be suspended on full pay for up to 5 days pending a decision. The decision will be confirmed to the employee in writing together with details of the appeal procedure. Following are some cases which would merit a Immediate Dismissal: Theft on the Organizations premises; of the Organizations property or of any goods or property. Fraud resulting in the manipulation of the Organizations assets and materials. Verbal abuse likely to provoke a breach between the Organization and its external contacts; or likely to provoke a breach of normal office discipline and behavior. Fighting or attempting to injure another person. During the investigation of any alleged disciplinary offence, the Organization may suspend the employee on full pay until such time as the investigation is complete. Following would be some consideration to be made for the Appeal Procedure:

Appeals will not be heard until the foregoing procedures have been exhausted. An appeal against a disciplinary action must be made in writing within 7 days of the disciplinary action. The appeal should be made to the H.R manager, stating the reasons for non-acceptance of the action. The Manager will then carry out a full review of the facts, which may involve a further meeting with the employee and would reply in writing within 7 days of the appeal. The employee will have the right to appeal to either the H.R manager to whom the function is responsible or to the Chief Executive. An appeal against dismissal would be made to the Chief Executive who will carry out a full review of the facts and will reply in writing as soon as the review is completed. The employee will remain dismissed until the appeal procedure is completed. However, if the employee is re-

instated then the period of service will also be reinstated and the basic salary paid for the period between dismissal and reinstatement. Any appeal made out of the 7 days time limit will fail, unless there are exceptional reasons for the delay and the original decision stand.

ATTENDANCE MANAGEMENT PROGRAM Our company would follow the following two steps in our Attendance Management Program: 1. Development of information/communication systems 2. Taking appropriate group action Development of information/communication systems: The first step of an effective attendance management program is to identify specific areas, which are affecting attendance. The best way to find which specific areas are affecting absenteeism is open communication between managers, supervisors and employees. At times it is not really the physical realities of the work place that influence employees willingness to work but their perceptions of these realities. It is important that employees are encouraged to voice their concerns so their perceptions of the work place are clear and can be dealt with. Regularly scheduled department meetings are an excellent way to hear employee perceptions and concerns and also to communicate organizational goals. When employees are encouraged to make a difference they are less likely to withdraw their participation through absenteeism. Employees must not only be heard, they must be answered in such ways as to assure them their input is worthwhile. Taking appropriate group action: To realize the importance of Reduced Absenteeism, following points are kept in mind: 1. Develop ways for each and every employee to feel free to contribute ideas and suggestions. 2. Make each employee aware that they are a valued member of the "team", that they play an important role in our organization and that their attendance is critical. 3. Hold regular meetings, keep our staff informed and involved 4. Familiarize our self with community programs which we can recommend to an employee if he/she has a need for assistance (i.e. marital or financial counseling) 5. Awareness, commitment and involvement by all levels of staff.

ACT
THE PAYMENT OF WAGES ACT, 1936 THE MINIMUM WAGES ACT, 1948 THE PAYMENT OF BONUS ACT

Offences and penalties

Fine not less than Rs. 1000 to Rs.5000. On subsequent conviction fine not less than Rs.5000 and upto Rs.10000. For late payment of wages: imprisonment for 1 to 6 months & fine of Rs.2000 to Rs. 15000 & additional fine upto Rs.100 per day. Imprisonment for a term which may extend to six months or with fine which may extend to Rs. 500/- or with both. For contravention of the provisions of the Act or rules the penalty is imprisonment upto 6 months or fine up to Rs.1000, or both. For failure to comply with the directions or requisitions made the penalty is imprisonment upto 6 months or fine up to Rs.1000, or both. For the purpose of avoiding any payment imprisonment for upto six months or with fine upto ten thousand rupees or both. An employer who contravenes any provisions of the Act imprisonment for not less than three months which may extend to one year or with fine which shall not be less than ten thousand rupees but which may extend to twenty thousand rupees or with both. Period of delay in Payment of Contribution : Rate of Penalty on amount due Upto less than 2 months 5% 2 to 4 months 10% 4 to 6 months 15% 6 months and above25% In case of default by employer: 50% of the compensation amount plus interest to be paid.

THE PAYMENT OF GRATUITY ACT, 1972

THE EMPLOYEES STATE INSURANCE ACT WORKMENS COMPENSATION ACT

ACT
INDUSTRIAL DISPUTES ACT,1947 THE TRADE UNIONS ACT, 1926 MATERNITY BENEFIT ACT

Offences and penalties

Unfair labor practices: Imprisonment upto 6 months or fine upto Rs. 3000 Closure without 60days notice: Imprisonment upto 6 months or fine upto Rs.5000 For making false entry in general statement of sending returns: fine upto Rs. 500. On continuing fault: Rs.5 per week not exceeding Rs.5. Penalties for contravention of act by employer: For failure to pay maternity benefit as provided for under the Act, the penalty is imprisonment upto one year and fine upto Rs. 5000. The minimum being 3 months and Rs. 2000 respectively. For dismissal or discharge of a woman as provided for under the Act, the penalty is imprisonment upto one year and fine upto Rs. 5000. The minimum being 3 months and Rs.2000 respectively. If the employer defaults in making payment of any contribution: Period of Default Rate of Damages (%p.a.) Less than 2 months 17 2 to 4 months 22 4 to 6 months 27 6 months and above 37 Obstruction to the inspector and refusal to produce the register & records etc. shall be punishable with imprisonment for a term which may extend to 3 months or with fine which may extend to Rs. 500/- or both. Contraventions of provisions regarding employment of contract labor: imprisonment for upto 3 months or 3 fine upto Rs. 100/- per day. Contraventions of the provisions of the Act or Rules in which no other penalties elsewhere provided: imprisonment for a term which may extend to 3 months or with fine which may extend to Rs. 1,000/- or 3 both.

THE EMPLOYEES PF & MISC. PROVISIONS ACT, 1952

THE CONTRACT LABOUR ACT