128
HAND BOOK ON CONTRACT LABOUR MANAGEMENT D S RAO

HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

Embed Size (px)

Citation preview

Page 1: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

HAND BOOK ON CONTRACT LABOUR

MANAGEMENT

D S RAO

Page 2: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

Foreword

There has been a paradigm shift in the economic scenario. Organizations are under unprecedented pressure to develop core competence to have competitive edge over their competitors. Economy and Efficiency is essence of business. Globalization, statutory compliances of labour laws, need of flexible and efficient employment/work-practices, increasing cut-throat competition and question of survival etc. has necessitated discovering alternative employment system, i.e., Contract Labour System, or outsourcing as some call it. But contract labour system has brought in with it new challenges, legal as well as practical; hence this system needs its thorough understanding before its correct application in order to derive optimum benefits out of it. The Hand Book on Contract Labour Management is a compilation of legislations whose compliances is essential with "Dos and Don'ts" for Principal employer, Returns and Registers under different acts, Samples of forms, Tips to read Challans for our young HR Executives. The handbook will bring awareness among HR executives and will serve as a ready reckoner to cross check with the different provisions under various acts. The Hand Book will give the readers an opportunity to get a thorough knowledge about the provisions and best use of the contract labour system, about its statutory compliances to avoid fines and prosecutions; and about bringing in a great difference in the working and profitability of the organization. Happy Reading

Page 3: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

INDEX

Chapter I : Introduction and Checklist 1 - 18 Chapter II : Gist of Acts 19 - 68 (a) The Contract Labour (Regulation & Abolition) Act, 1970 (b) The Payment of Wages Act, 1936; (c) The Minimum Wage Act, 1948; (d) The Employees' Provident Funds and Miscellaneous Provisions Act, 1952; The Employees' Pension Scheme, 1995. (e) The Employee's Compensation Act, 1923; (f) The Equal Remuneration Act, 1976; (g) The Child Labour (Prohibition & Regulation) Act, 1986; (h) Inter State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979; (e) The Employees' State Insurance Act, 1948; (f) Building and other Construction Workers (Regulation of (g) Employment and Conditions of Service) Act, 1996. (g) Building and other Construction Workers Welfare Cess Act., 1996; (h) The Payment of Bonus Act, 1965; (i) The Maternity Benefit Act; 1961; (j) The Industrial Disputes Act, 1947; (k) The Payment of Gratuity Act, 1972; (l) The Employees' Liability Act, 1938; (m) Factories Act, 1948; (n) The Trade Unions Act, 1926 (o) The Motor Transport Workers Act; 1961.

Page 4: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

Chapter III : Returns and Registers under different Acts 69 - 73 Chapter IV : Do's and Don'ts for Principal Employer 74 - 76 Chapter V : Internal Audit Forms 77 - 84 (a) PF (b) Contract Labour Chapter VI : Tips to read Provident Fund Challan, ESI Challan 85 - 98 Chapter VII : Samples of : 99 - 124

A) Appointment Letter B) Compliance Certificate C) Indemnity Bond D) Information about the Contractor

for issue of Form V E) List of Clauses to be incorporated

in O&M Contracts F) Contracting Closing Forms – CCP X & XI

Page 5: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

1  

CHAPTER – I

Outsourced workers are deployed by many firms in

different establishments. Outsourced workers are deployed in

large numbers by leading Contracting Establishments during

Construction & Erection works and few during O&M stage. An

organisation as a Principal Employer and the Contracting

Establishments need to comply with various statutory provisions

under different Acts. An effort has been made to develop a

check-list on various issues like Statutory Compliance, Safety,

Gate pass, Dealing with Accidents, Periodical Audits etc. as

part of Knowledge Management for use at NTPC.

The objective of the compilation is to bring awareness

among HR executives, evolve standard practices across the

organization, act a ready reckoner to cross-check with the

different provisions under various Acts, for system building and

for pro-active audit etc.

The check-list is illustrative. In case there are provisions

which are not in tune with extant Organization policy,

necessary approvals are to be obtained from Competent

Authority.

Page 6: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

2  

A. STATUTORY COMPLIANCE 1. Compliance of Provisions under the illustrative list of

Acts which are relevant during Construction & Erection and O&M stage.

(i) The Contract Labour (Regulation & Abolition)

Act, 1970 (ii) The Payment of Wages Act, 1936; (iii) The Minimum Wage Act, 1948; (iv) The Employees' Provident Funds and

Miscellaneous Provisions Act, 1952; The Employees' Pension Scheme, 1995.

(iv) The Employee's Compensation Act, 1923;

(v) The Equal Remuneration Act, 1976;

(vii) The Child Labour (Prohibition & Regulation) Act,

1986; (viii) Inter State Migrant Workmen (Regulation of

Employment and Conditions of Service) Act, 1979;

(ix) The Employees' State Insurance Act, 1948; (x) Building and other Construction Workers

(Regulation of Employment and Conditions of Service) Act, 1996.

(xi) Building and other Construction Workers Welfare

Cess Act., 1996;

Page 7: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

3  

(xii) The Payment of Bonus Act, 1965; (xiii) The Maternity Benefit Act; 1961; (xiv) The Industrial Disputes Act, 1947; (xv) The Payment of Gratuity Act, 1972; (xvi) The Employees' Liability Act, 1938; (xvii) Factories Act, 1948; (xviii) Indian Electricity Act 2003; its rules (xix) The Trade Unions Act, 1926 (xx) The Motor Transport Workers Act; 1961.

2. Registration as Principal Employer under the following Acts:

(a) Contract Labour (R&A) Act, 1970

(b) Inter-State Migrant Workmen ( RE & CS) Act, 1979 (To take care of labour working from other states)

(c) ESI Act 1948 (wherever applicable - ESI is

applicable wherever the area is notified) 3. Due diligence with respect to the Appropriate Govt. (As

of now it is Central Govt.) 4. Ensuring that security deposit by NTPC remitted has

taken into consideration the maximum no. of labour likely on a particular date (which is arrived at by envisaging the maximum demand for labour at the peak period), while Registering under the above Acts.

5. a) Ensure that contracts are only awarded to

Establishments which have independent PF/ESI codes.

Page 8: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

4  

b) Ensure that the contracting establishment is registered under BOCW Act (During Construction Stage).

6. a) Maintaining Form XII under CL Act by Principal

Employer and relevant registers by Contracting Establishments like Form XIII (Register of Workmen), Form XVIII (Form of Register of wages-cum-Muster roll), Form XIX (Wage Slip); Form XX (Register of Deductions for Damage or Lost); Form XXI (Register of Fines); Form XXII (Register of Advances), Form XXIII (Register of Overtime).

b) Contractor to send Half Yearly return to the

Licensing Authority in Form XXIV for the period Jan-June & July-Dec. as applicable.

c) To submit Annual returns as Principal Employer

to the Registering Officer for the year ending 31st Dec. by 15th Feb., following the end of the year to which it relates.

7. Similarly, relevant data under PF Act, ESI Act and other

Acts as at Page 69-73..

8. To declare 'Project In charge' as Principal Employer, if it is a Brownfield Project.

9. Initiate process for Factory license by submitting the

drawings for approval. to Directorate of Factories of the Respective State. (Check the procedure in each State, since Rules are different. For example Bihar has an Assessment Committee to recommend whereas majority of the other States do not have).

Page 9: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

5  

10. Do a proactive audit periodically on Contracting Establishment from HR vis-a-vis the formats enclosed (Chapter-V). It would help Contractors to be fully prepared for inspection by Labour/PF/ESI Authorities and are complying with the relevant provisions under these Acts.

11. Ensure display of rates of minimum wage, category-wise

at the entrance and strategic locations in English/local language along with the Statutory Authority's name and contact number as per relevant rules of the Contract Labour Act.

12. Ensure display of the notices as per Gratuity Act,

Payment of Wages Act, Bonus Act etc.

13. Finalise list of Closed holidays for contracting establishments and align with NTPC holidays list to the extent possible.

14. Update data regarding all Statutory Authorities to be

made available to CISF for allowing them for Inspection and to contractors while issuing Form-V.

15. Check up the applicable Schedule of Minimum Wages

as per the local rules and implement (e.g. Roads & Building Workers Minimum Wage Schedule or other schedules).

16. Collect the details of Revised rates of Minimum Wages

every six months and notify through the circular to all EICs/HODs. Ensure copy for F&A. Ensure that suitable changes are made in the Display Boards.

Page 10: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

6  

17. Ensure payment of wages is witnessed by EIC or his representative and ensure certification as per rules of CL Act in the wage register. Witnessing of wage payment is w.r.t. the actual amount paid as per extant minimum wages as mentioned in a particular column. It does not cast any obligations on Principal Employer.

18. Obtain certificate from Contractor through EIC that

PF/ESI amount is remitted as per enclosed performa, along with names of workers with each R.A. bill. (Page 104 - 105).

19. The following components (Statutory & Non-statutory)

may be loaded during preparation of the estimate:

% T&P 2 % T&P S. No. Description

USW SSW SW USW SSW SW

1. Min. wages per day 205.92 234.07 273.00 205.92 234.07 273.00

2. Contractors Profit @ 10% 20.59 23.41 27.30 20.59 23.41 27.30

3.

PF @ 13.61% including administrative charges

28.03 31.86 37.16 28.03 31.86 37.16

4. ESI @ 4.75% 9.78 11.12 12.97 9.78 11.12 12.97

5. Holiday Payment @ 2.95%

6.07 6.91 8.05 6.07 6.91 8.05

6. Retrenchment Benefit @ 4.92%

10.13 11.52 13.43 10.13 11.52 13.43

7. Annual Leave Payment @ 5% 10.30 11.70 13.65 10.30 11.70 13.65

8.

Bonus @ 8.33@ limited to a maximum of Rs.3500/- per annum

11.48 11.48 11.48

11.48 11.48 11.48

Page 11: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

7  

9. T&P 0.00 0.00 0.00 4.12 4.68 5.46

10. Safety @ Rs.3/- per Manday 3.00 3.00 3.00 3.00 3.00 3.00

11. Alllowances Rs.480/26* 18.46 18.46 18.46 18.46 18.46 18.46

12. Total Amount for One Manday

323.76 363.52 418.50 327.88 368.20 423.96

* Cost of Jaggery/Soap etc. based on agreement between

the Contractors and their Workers. * Uniform/Attire may be loaded as per Project For the purpose of clarity the definition of various

categories of workers is as below:

(a) "Unskilled Work" means work which involves simple operations requiring little or no skill or experience on the job.

(b) "Semi-skilled Work" means work which involves

some degree of skill or competence acquired through experience on the job and which is capable of being performed under the supervision or guidance of a skilled employee and include unskilled supervisory work.

(c) "Skilled Work" means work which involves skill

or competence acquired through experience on the job or through training as an apprentice in a technical or vocational institute.

(d) "Highly Skilled Work" means work which calls

for a degree of perfection and full competence in the performance of certain tasks including clerical work acquired through intensive technical

Page 12: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

8  

or professional training or practical work experience for certain reasonable period and also requires of an worker to assume full responsibility for the judgment or decision involved in the execution of these tasks.

20. Ensure that height allowance etc. is paid as per Central

rules for the workmen doing jobs at height. Must ensure loading in the estimate, as below:

(a) Where the Central Government has sanctioned

payment of winter allowance or hill allowance or any other special allowance shall be paid in addition to the minimum rates of wages fixed by the notification, an amount equal to 10 percent of the minimum rates of wages so fixed.

(b) Provided that in places, which are at a height of

over 6,000 feet, above sea level, 10% extra wages will be paid.

(c) Workers employed on high rise structures that is

on or above 30 feet height, even for an hour in a day shall be paid 20 percent extra wages of the minimum wages for the appropriate category.

(d) Workers employed on tunnel working shal be

paid 20 percent extra of the minimum wages under this notification for the appropriate category.

21. (a) Where in any area the minimum rates of wages

fixed by Central notification are lower than the minimum rates of wages fixed by the State Government for employees in employment, to which the State Government is the appropriate

Page 13: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

9  

Government, the rates of wages fixed by the State Government shall in respect of these area, be deemed to be the minimum rates of wages payable under contract notification.

(b) The minimum rates of wages include also the

wages for weekly day of rest. (c) The minimum rates of wages payable to disabled

employees shall be the same as payable to workers of the appropriate category.

(d) Men and women employees shall get the same

rates of wages for the same work or work of similar nature.

(e) Minimum rates of wages and special allowance

both constitute the minimum rates of wages to be enforceable under the Minimum Wages Act, 1948.

22. Incorporate penalty clause for non-payment of wages in

time and for non compliance of Statutory Rules in all Contracts based on the value of the Contract in standard terms and conditions.

23. Incorporate clause that payment is remitted to labour

through bank or ensure pre-paid cards upto Rs. 1 lakhs. Cash transactions should as far as possible limited to 15 days or below.

24. Ensure remittance of cess under BOCW act by

Contracting Establishments and ensure their insurance coverage etc. as applicable in few States like Andhra Pradesh.

Page 14: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

10  

25. Ensure that Appointment Order on Fixed Tenure basis is given by the Contracting Establishments to their Workers. Performa enclosed (Page 92 - 103).

26. Illustrative list of Do's and Don’t's as a Principal

Employer to be followed – Chapter-IV. 27. On completion of contract, send intimation of completion

of work by the Contracting Establishment to the Labour Authorities.

II. GATE PASS

1. Maintain CLMS package from day one – already

implemented in Projects like Kahalgaon, Korba etc. 2. (a) While issuing gate passes, get Safety Clearance

and ensure it is routed through EIC. Keep a copy for updation and send original to CISF for issuance of Gate Pass. Insist that names and particulars of the workers for whom Gate pass is being issued is also entered in Employee Register, (Form XIII of CL Act, 1970) before it is forwarded to CISF.

(b) Ensure that Contractor has got certification of

Medical fitness for all his workers and that they have attended Safety Induction programme before details are sent to CISF for issuance of gate pass.

3. Periodicity of Gate passes renewal for contract workers

may be restricted to once in 3 months. 4. For PSUs employees like BHEL, make provision for gate

pass validity for 6 months-1 year.

Page 15: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

11  

5. Do not permit and allow gate passes for vehicles without proper Registration Book. Third Party Insurance and Valid Driving License.

6. Do not allow any Construction Equipment to go out of

the Project premises without proper Material Gate Pass and the approval of Head of the Project.

7. Keep data base of Gate Pass like Locals; Non-locals;

PAPs-Village-wise, Skill-Wise, Category-wise. (Use CLMS)

8. In case Project area is not covered under ESI, ensure

that Employees' Compensation Insurance Cover is obtained within 7/15 working days after obtaining undertaking from Contractor duly routed through EIC. Issue temporary gate pass till then and subsequently process for Permanent Gate Pass.

9. Ensure that Insurance covers all the workmen as per

gate passes, since Insurance is not valid if coverage is limited to few workers e.g. if 50 workers are employed all should be covered; coverage for 10 workers is not valid, for reimbursement

10. Specimen signature of EIC to be forwarded to CISF,

who are authorized for material gate pass and photo gate passes with the approval BUH. Data to be updated periodically.

11. Gate passes may be serially numbered for easy

identification and retrieval. 12. Ensure that age of all Contract Labour is 18 years or

more. Ensure filling up of age and date of birth column

Page 16: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

12  

by the Contractors. Depute HR representative at Labour entry gate periodically for physical audit.

13. Develop colour scheme for gate passes, for easy

identification. For example separate colour for Managers/Supervisors; UPL vis-à-vis Non-UPL, Skilled, Semi-skilled, Unskilled etc. based upon site requirement.

14. In the event photo-gate pass is lost, ensure that

Contractor sends the information to the nearest Police Station by Registered Post.

15. Finalise the charges to be levied for issuance of

duplicate Gate-pass, and the charges levied should act as a deterrent for the loss.

16. The number of gate passes should not exceed the

number of labour mentioned in the contractor's license given under the CL (R&A) Act.

17. Ensure cancellation of Gate Passes of workers who

have left the premises periodically. 18. Ensure return of all original gate passes to CISF at the

end of contract, before issuing no dues by HR at the time of contract closing.

III. PROCEDURE FOR ISSUANCE OF FORM-V 1. Get relevant details from Contractors in the enclosed

format, before issuance of From-V (Page 112 - 116). As per rules separate license should be taken by the Contractor for each work.

Page 17: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

13  

2. In Corporate Awarded packages Principal Employer can issue Form-V to Sub-Contractor of the Main Contractor provided it is approved by NTPC-CC.. Get a copy of Sub-contractor approval granted by CC for records.

3. Take indemnity bond w.r.t. Sub-contractor from the

main contractor. Main contractor shall indemnity against any deviations of various legal obligations of the Sub-Contractor. For e.g. : BHEL is the main contractor and EDAC/Sunil Hi-Tech are its Sub-Contractor/s, BHEL has to give Indemnity Bond (Page 106 - 108).

IV BILL PAYMENT 1. Ensure that contractor submits PF/ESI challan of

previous month along with RA bill and the certificate as per performa and ensure a copy is obtained for records (Page 104 - 105). They are useful for PF inspection, clearance of final bill etc. Form 5, 10, 12A under PF & MP act to be obtained.

2. Tally PF challan, ESI challan along with wage register

once in a while. Instructions to read PF/ESI Challan along with sample enclosed (Chapter - VI). EIC should tally the challans on monthly basis.

V. CONTRACT CLOSING 1. Ensure that at the end of period of contract, EICs issues

a circular / communication seeking 'No dues' from all Departments and that the Contract is going to be closed.

2. Ensure and recheck that Contractor has upto date

entries in Form XIII (Register of Workmen) and retain a photocopy of all entries, duly certified by the Contractor.

Page 18: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

14  

3. Obtain PF/ESI challans and cross tally with Employee Register (Form XIII) / Undertaking obtained.

4. Ensure that the Contracting Establishment has a valid

labour license. 5. Ensure that relevant Contract Closing Certificates are

obtained i.e. – (i) CCP – 10 – Certificate regarding Labour Payments and Statutory Requirements (Page 121 - 122). (ii) CCP – 11 – No Demand Certificate by the Contractor (Page 123 - 124). Retain photocopies and send the original to F&A.

6. In case the Contracting Establishment is not awarded

the same work, ensure statutory benefit like Retrenchment Compensation, Bonus, Cash Compensation against unutilized Leave, OT etc. are paid. Worker-wise details may be obtained for records.

7. Ensure that Contractor or his authorized representative

(whose signature is valid in PF/ESI office) sign From XIII – Transfer of PF Form of each worker for transfer to the New Establishment or the withdrawal form. In case of withdrawal, there is a lock-in period of 60 days as per Act.

VI. SECURITY 1. In view of Security, install Door frame Metal Detectors

and have X-ray unit at the main entrance. 2. Please ensure that the details of all Contract Labour

along with their permanent addresses are sent to the nearest Police Station, under whose jurisdiction the Project/Station falls for Character and Antecedents

Page 19: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

15  

verification, either in person or through Registered Post A/D.

3. Introduce bio-metric/ bar code attendance linked to

CLMS for the purpose of security. VII DEALING WITH ACCIDENTS

1. On getting information about an accident gather all

relevant data.

(a) Ascertain on nature of injury: minor, major or fatal

(b) Collect details like:

(i) Name of the injured; (ii) Nature of injury; (iii) Contractor with whom he is employed with; (iv) Local or non-local; (v) Whether the injured moved for first aid to

Health Centre/Hospital; (vi) Whether any representative of contractor

accompanied him or not? Contractor representative's Mobile number;

(vii) Report from (a) Contractor (b) Safety

2. Inform Project Safety/Project-in-Charge/ EIC/ BUH.RHOHR/ RED/ ED (HR)/ Relevant Statutory Authorities like Factory Inspector/Police/Collector based on the nature of injury.

3. IR report to be given to CC/Reginal Hqr. in case of

major injuries/fatal accident.

Page 20: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

16  

4. Information to be gathered about IR situation at the work spot/premises.

5. Deploy CISF/Police (wherever necessary) to defuse any

untoward incident.

6. Photocopy of the gate pass of the injured to be collected by CISF from the Contractor in case of fatal accident for details. In case of non-availability gather/retrieve from data given by the Contractor while securing gate pass for labour.

7. Refer to the skill category while settling any

compensation.

8. Liaison for postmortem/transportation/funeral expenses/ expenses for the accompanied personnel in case of fatal accident with the Contractor/EIC.

9. Calculation of Employee's compensation : An illustration:

a) Fatal : 1. Age of the Deceased : 34 years

2. Wage of the deceased : Rs. 210/- per day (limited to Rs. 4000/-)*

* Notional wage is revised periodically. To check up the latest notional wage on periodical basis. Calculation is 50% of monthly wages X Age Factor Rs. 4000 x 50 x 199.40 = Rs.3,98,800/- 100

Page 21: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

17  

b) Non-Fatal : 1. Age : 40 yrs. Notional wage : Rs.4000/- Disability 10% Calculation is: 60% of monthly wages X % of disability X age factor =4000/- x 60/100 x 10/100 x 184.17 = Rs. 44201/- VIII. GENERAL 1. Establish a Contract Labour Cell at every Project/

Station.

2. Do not issue any performance certificate to any contract worker.

3. Performance certificate to the Contractor is issued by

Tech. Services/Contracts & Materials Deptt. on the recommendation of EIC.

4. FIR, in case of theft of contractor material within plant

premises is to be lodged by Contractor. Details to be given by the Contractor or his representative. Help/liaison can be rendered by CISF.

5. FIR in case of NTPC material inside/outside factory is to

be lodged by concerned officer, HR to liaison with Police to ensure lodging of FIR by concerned Officer.

6. Liaison on regular basis with Hon'ble MLA/MP;

Collector; Chief of Police; Land Acquisition Officer; Tehsildar; all Statutory Authorities; etc.

7. Keep all important contact numbers upto date.

Page 22: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

18  

8. Facilitate formation of body of Contractors or Nodal Agency, for the purpose of implementation of schemes like Jana Shree Bima Yojna for Workers.

9. Explore the possibility to engage a NGO in Greenfield

Projects to spread awareness on safety, Health and Environment in Labour Agglomeration and develop engagement models like sports etc.

10. Work space or space for Labour Colony within NTPC

owned land is to be earmarked by Technical Services, with a clause that the land to be restored to its original condition after the work of the contractor is over or on expiry of the tenure, whichever is earlier.

11. Develop daily/monthly MIS to record events during

Construction/Erection as well as O&M stage, for future reference and to identify regular defaulters on Statutory Compliance aspects etc.

12. In case of strike/bandh call by TUs/locals etc. ensure

that it is communicated well in advance to all EICs/Head of Project/Head of O&M/BUH/CISF and explore possibility to call the labour earlier than their stipulated time; explore alternate gates for entry; liaison with CISF/Policy for effective patrolling; law and order.

13. Ensure that Compulsory Annual medical check up for

workers in Hazardous Area is done as per directives of Hon'ble Supreme Court judgment.

14. Sample special conditions of contract (illustrative) for

O&M contractors is enclosed as Page 117 - 120.

Page 23: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

19  

CHAPTER – II

GIST OF ACTS

CONTRACT LABOUR (REGULATION & ABOLITION) ACT 1970

Objective of the Act • To regulate the employment of contract labour in certain

establishments and to provide for its abolition in certain circumstances and for matters connection therewith.

Applicability Sec.1 • Every establishment in which 20 or more work men are

employed or were employed on any of the preceding 12 months as contract labour.

• Every contractor who employs or who employed on any

day of the preceding twelve months 20 or more workmen.

Registration of Establishment Sec. 7 • Principal employer employing 20 or more workers

through the contractor or the contractor(s) on deposit of required fee in Form 1.

Page 24: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

20  

Revocation of Registration Sec.9 • When obtained by misrepresentation or suppression of

material facts etc. after giving opportunity to the principal employer to state their position.

Prohibition of employment of Contract Labour Sec. 10 • Only by the appropriate Government through issue of

notification after consultation with the Board can order the prohibition of employment of contract labour.

Licensing of Contractor Sec.12 – Rule 21 • Engaging 20 or more than 20 workers and on deposit of

requisite fee and application in Form IV. • Valid for specified period. To be renewed year after

year. Revocation or Suspension & Amendment of Licencses Sec. 14 • When obtained by misrepresentation or suppression of

material facts. • Failure of the contractor to comply with the conditions or

contravention of Act or the Rules.

Page 25: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

21  

Welfare measures to be taken by the Contractor Secs. 16 & 17 • Contract labour either one hundred or more employed

by a contractor for one or more canteens shall be provided and maintained.

• First aid facilities. • Number of rest rooms as required under the Act. • Drinking water, latrines, urinals and washing facilities. Liability of Principal Employer Sec. 20 • To ensure provision for canteen, rest rooms, sufficient

supply of drinking water, latrines and urinals, washing facilities.

• Principal employer entitled to recover from the

contractor for providing such amenities or to make deductions from amount payable.

Responsibility of Contractor for Payment of Wages Sec. 21, Rule 25 • To pay timely and to ensure the disbursement of wages

in the presence of the authorized representative of the principal employer, before the stipulated date.

• Rate of wages not less than the minimum wage rates as

fixed.

Page 26: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

22  

PAYMENT OF WAGES ACT, 1936 Objective of the Act • To regulate the payment of wages of certain classes of

employed persons. Applicability of the Act: • Factory, Industrial Establishment, Tramway service or

Motor Transport Service engaged in carrying passengers or goods or both by road for hire or reward, Air transport service, Dock, Wharf or Jetty, Inland vessel, mechanically propelled, Mine, quarry or oil-field, plantation, workshop or other establishment etc.

Coverage of Employees • Drawing average wage upto Rs. 10,000 per month. Time of payment of wages Sec. 5 • The wages of every person employed be paid: - When less than 1000 persons are employed,

shall be paid before the expiry of the 7th day of the following month.

- When more than 1000 workers, before the expiry

of the 10th day of the following month.

Page 27: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

23  

Wages to be paid in current coins or currency notes Sec. 6 • All wages shall be paid in current coins or currency

notes orin both. • After obtaining the authorization, either by cheque or by

crediting the wages in employee's bank account. Deduction made from wages Sec.7 • Deductions such as fine, deduction for amenities and

services supplied by the employer, advances paid, over payment of wages, loan granted for house building or other purposes, income tax payable, in pursuance of the order of the court, PF contributions, cooperative societies, premium for Life Insurance, contribution to any fund constituted by employer or a trade union, recovery of losses, ESI contributions etc.

Fines as prescribed by Sec. 8 • Not to be imposed unless the employer is given an

opportunity to show cause. • To record in the register.

Page 28: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

24  

Deduction for absence from duties for unauthorized absence Sec. 9 • Absence for whole or any part of the day

- If ten or more persons absent without reasonable cause, deduction of wages upto 8 days.

Deductions for services rendered Sec. 11 • When accommodation amenity or service has been

accepted by the employee.

Page 29: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

25  

MINIMUM WAGES ACT, 1948 Objective of the Act • To provide for fixing minimum rate of wages in certain

employments. Fixation of Minimum Rates of Wages Sec. 3 • The appropriate Government to fix minimum rates of

wages. The employees employed under part – I or part-II of Schedule.

• To make review at such intervals not exceeding five

years the minimum rates or so fixed and revised the minimum rates.

Government can also fix Minimum Wages for • Time work, piece work at piece rate, Piece work for the

purpose of securing to such employees on a time work basis, Overtime work done by employees for piece work or time rate workers.

Minimum Rates of Wages Sec. 4 • Such as : Basic of wages etc., Variable DA and Value of

other concessions etc.

Page 30: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

26  

Procedure for fixing and revising Minimum Rates of Wages Sec. 5 • Appointing Committee • Issue of Notification etc. Composition of Committee Sec. 9 • Representation of employer and employee in scheduled

employment in equal number and independent persons not exceeding 1/3rd or its total number one such person to be appointed by the Chairman.

Payment of Minimum Rates of Wages Sec. 12 • Employer to pay to every employee engaged in

scheduled employment a a rate not less than minimum rates of wages as fixed by Notification by not making deduction other than prescribed.

Fixing Hours for Normal Working Sec. 13 • Shall constitute a normal working day, inclusive of one

of more specified intervals. • To provide for a day of rest in every period of seven

days with remuneration.

Page 31: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

27  

• To provide for payment for work on a day of rest at a rate not less than the overtime rate.

Overtime Sec. 14 • To be fixed by the hour, by the day or by such a longer

wage-period works on any day in excess of the number of hours constituting a normal working day.

• Payment for every hour or for part of an hour so worked

in excess at the overtime rate double of the ordinary rate (1½ times for agriculture labour).

Wages of workers who work for less than normal working days Sec. 15 • Save as otherwise hereinafter provided, be entitled to

receive wages in respect of work done by him on that day as if he had worked for a full normal working day.

Maintenance of registers and records Sec. 18 • Register of Fines _ Form 1 Rule 21(4) • Annual Returns – Form III Rule 21 (4-A) • Register of Overtime – Form IV Rule 25 • Register of Wages – Form X, Wage slip – Form XI,

Muster Roll – Form V Rule 26 • Representation of register – for three years Rule 26-A.

Page 32: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

28  

EMPLOYEES' PROVIDENT FUND & MISC PROVISIONS ACT AND THE SCHEMES

Applicability • Every establishment which is a factory engaged in any

industry specified in Schedule 1 and in which 20 or more persons are employed.

• Any other establishment employing 20 or more persons

which Central Government may, by notification, specify in this behalf.

• Any establishment employing even less than 20 persons

can be covered voluntarily u/s 1(4) of the Act. Eligibility • Any person who is employed for work of an

establishment or employed through contractor in or in connection with the work of an establishment.

Rates of Contribution SCHEME EMPLOYEES EMPLOYER'S Provident Fund Scheme

12% Amount > 8.33% (in case where contribution is 12% or 10%) 10% (in case of certain establishments as per details given earlier.

Insurance Scheme Nil 0.5% Pension Scheme Nil 8.33%

(diverted out of Provident Fund Contributions)

Page 33: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

29  

Payment of Contribution • The employer shall pay the contribution payable to the

EPF, DLI and Employees' Pension Fund in respect of the member of the Employees' Pension Fund employed by him directly by or through a contractor.

• It shall be the responsibility of the principal employer to

pay the contributions payable to the EPF, DLI and Employees Pension Fund by himself in respect of the employees directly employed by him and also in respect of the employees employed by or through a contractor.

Clarification about Contribution • After revision in wage ceiling from Rs.5000 to Rs.6500

w.e.f. 1.6.2001 per month, the government will continue to contribute 1.16% upto the actual wage of maximum, Rs.6500 per month towards Employees' Pension Scheme. The employer's share in the Pension Scheme will be Rs.541 w.e.f. 1.6.2001.

• Under Employees' Deposit Linked Insurance Scheme

the contribution @ 0.50% is required to be paid upto a maximum limit of Rs.6500. The employer will pay administrative charge @ 0.01% on a maximum limit of Rs.6500.

• The employer will also pay administrative charges @

0.01% on maximum limit of Rs.6500 whereas an exempted establishment will pay inspection charges @ 0.005% on the total wages paid.

Page 34: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

30  

Notes: (1) The above clarification is given by taking wages upto a

maximum of Rs.6500 towards wage (Basic + DA).

(2) Since an excluded employee i.e. drawing wages more than Rs.6500 can also become member of the Fund and the Schemes on joint request and if, for instance, such an employee is getting Rs.10,000 per month, his share towards provident fund contribution will be Rs. 1200 e.g. 12% and employer's share towards provident fund contribution will be Rs.659 and Rs.541 towards Employees' Pension Fund.

Page 35: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

31  

EMPLOYEES' COMPENSATION ACT, 1923 Applicability • All over India Coverage of Employees • All employees in any capacity irrespective of their status

or salaries either directly or through contractor or a person recruited to work abroad.

• Employer's liability to pay compensation to an employee • On death or personal injury resulting into total or partial

disablement or occupational disease caused to a employee arising out of and during the course of employment.

When an employer is not liable for compensation Sec.3 (a) & (b) • In respect of any injury which does result in total or

partial disablement of the employee for a period exceeding three days.

• In respect of any injury, not resulting in death or permanent total disablement caused by an accident, which is directly attributable to: - The employee having been at the time thereof

under the influence of drink or drug; or

- Wilful disobedience of the workman to an order expressly given or to a rule expressly framed, for the purpose of securing the safety of employee, or

Page 36: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

32  

- Wilful removal of disregard by the employee of any safety guard or other device which he knew to have been provided for the purpose of securing the safety of employee.

Amount of compensation Sec. 4 • Where death of an employee results from the injury: an

amount equal to fifty per cent of the monthly wages of the deceased employee multiplied by the relevant factor or an amount of one lakh twenty thousand rupees whichever is more.

• Where permanent total disablement results from the

injury: an amount equal to sixty per cent of the monthly wages of the injured workman multiplied by the relevant factor or an amount of one lakh forty thousand rupees, whichever is more.

Notice of Accident Sec. 10 • As soon as practicable. Report of Accident Rule 11 Form EE – Sec. 10 B • Report of fatal accident and serious injury within 7 days

to the Commissioner (not applicable when ESI Act applies.)

Page 37: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

33  

EQUAL REMUNERATION ACT, 1976 Objective of the Act • To provide for the payment of equal remuneration to

men and women workers and for the prevention of discrimination, on the ground of sex, against women, in the matter of employment and for connected or incidental matters.

Act to have overriding effect Sec.3 • The provisions of this Act shall have effect

notwithstanding anything inconsistent therewith contained in any other law or in the terms of any award, agreement of contract of service, whether made before or after this Act.

Duty of employer to pay equal remuneration to men and women workers for same work Sec.4 • No employer shall pay to any worker, employed by him

in an establishment or employment, remuneration, cash or in kind, at rates less favourable than those at which remuneration is paid by him to the workers of the opposite sex for performing the same work or work of a similar nature.

No employer shall reduce the rate of remuneration. • Where the rates or remuneration payable before the

commencement of this Act for men and women workers

Page 38: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

34  

for the same work or work of a similar nature are different only on ground of sex, then the higher or the highest rate at which remuneration to be paid. Upto date register for all workers (Male/femle) employed in Form 'D' to be maintained.

Page 39: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

35  

THE CHILD LABOUR (PROHIBITION & REGULATION) ACT, 1986

Objective of the Act • To regulate the conditions of the work of the children in

certain employment. Definitions Sec. 2 • 'Child' means a person who has not completed his 14

years of age. • Establishment includes a shop, commercial

establishment, workshop, farm, residential hotel, restaurant, eating house, theatre or other place of public amusement or entertainment.

Prohibition of employment of children in certain occupations and processes Sec.3 • No child to be employed in occupation set forth in Part A

of the Schedule or any workshop wherein any of the processes set-forth in part B of the Schedule is carried on.

Dispute as to age Sec. 10 • In the absence of certificate of age, can be referred for

decision of prescribed medical authority.

Page 40: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

36  

Display of notice Sec. 12 • To contain abstract of section 3 pertaining to prohibition

of employment of children and the provisions for penalties.

Page 41: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

37  

INTER-STATE MIGRANT WORKMEN (REGULATION OF EMPLOYMENT AND CONDITIONS OF SERVICE ACT, 1979 Objective

An Act to regulate the employment of Inter-State Migrant workmen and to provide for their conditions of service and for matter connected therewith. Applicability: Every establishment in which five or more inter-state migrant workmen are employed or were employed on any day of the preceding twelve months. Sec. 2(e) : Inter-State Migrant Workman Person who is recruited by or through a contractor in one State under an agreement or other arrangement for employment in an establishment in another State, with or without knowledge of the Principal Employer. Sec. 6

Prohibition against employment of Inter-State Migrant workmen without registration. No Principal employer should engage without a certificate of registration in respect of such establishment issued under this Act. Sec. 13 : Wage Rates :

In no case be paid less than wages fixed under the Minimum Wages Act, 1948.

Page 42: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

38  

Sec. 14 : Displacement Allowance :

To be paid by the Contractor at the time of recruitment, equivalent to 50% of monthly wages payable to him or seventy five rupees whichever is higher. Sec. 15 : Journey Allowance Sum not less than the fare from the place of residence in his state to the place of work in the other State (for outward & return journey) and payment of wages during the period of journey as if he were on duty.

Page 43: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

39  

BUILDING AND OTHER CONSTRUCTION WORKERS (REGULATION OF EMPLOYMENT & CONDITIONS OF

SERVICE) ACT, 1996

Applicability Applied to every establishment which employs' or had employed on any day of the preceding twelve month, ten or more building workers in any building or other Construction Work. Definition : 2 (d): 'Building and other Construction Work' means the Construction, alteration, repairs, maintenance or demolition of or, in relation to, buildings etc. as may be specified in this behalf by appropriate Government by notification but does not include any building or other construction work to which the provision of the Factories Act, 1948 or the Mines Act, 1952 apply. 2 (i) : 'Employer' means the owner thereof, and includes, -

(i) Building or other construction work carried on by the department of the Govt. without any Contractor, the authority specified or the Head of the department.

(ii) If carried out by local authority or other establishment

without any contractor, the Chief Executive Officer of that authority or establishment.

(iii) In relation to a building or other construction work

carried on by or through a contractor, or by employment of building workers supplied by a contractor, the Contractor.

Page 44: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

40  

Sec. 7 : Registration of Establishment : Establishment to which this Act applies on its commencement, within a period of sixty days from such commencement. Sec. 12 : Registration of Building workers as beneficiaries : Every building worker who has completed 18 years of age, but has not completed sixty years of age, and who has been engaged in any building or other construction work for not less than ninty days during the preceding 12 months shall be eligible for registration as a beneficiary. Sec. 14 – Cessation as a beneficiary : On attaining the age of 60 years or when he is not engaged in building or construction work for not less than 90 days in a year. Sec. 15 – Register of Beneficiaries : Employer shall maintain a register in the form prescribed. Sec. 19: Prohibition of employment of certain persons in certain buildings or other construction work : Deaf, Defective vision, tendency to giddiness shall not be allowed in building or other construction work which is likely to involve a risk of any accident. Sec. 32-27 Drinking water, latrines, urinals, accommodation, crèches, first aid, canteen etc.

Page 45: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

41  

Sec. 38 : Safety Committee and Safety Workers: To constitute a Safety Committee wherein five hundred or more building workers are ordinarily employed and the employer shall appoint a Safety Officer. Sec. 39 : Notice of certain accidents : Any such accident (death or bodily injury) which prevents from working for a period of 48 hours or more, employee shall give notice to the appropriate authority.

Page 46: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

42  

BUILDING AND OTHER CONSTRUCTION WORKERS WELFARE CESS ACT, 1996

Objective : An Act to provide the levy and collection of a cess on the cost of construction incurred by the employees with a view to augmenting the resources of the Building and other Construction Workers Welfare Boards constituted under the Building and other Construction Workers (Regulation of Employment and Condition of Service) Act, 1996. Sec. 3 : Levy and collection of cess at such rate not exceeding two percent of the cost of construction incurred by an employee. Sec. 4 Furnishing of returns : As prescribed in manner and time. Sec. 5 Assessment of Cess : Authority or officer to whom or to which the return is to be furnished, after enquiry, assess the amount of cess payable by the employee. Sec. 10 Recovery of amount due under the Act : Any amount due under this Act (including any interest or penalty) from the employer may be recovered in the same manner as an arrear of land revenue.

Page 47: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

43  

EMPLOYEES' STATE INSURANCE ACT & THE SCHEME, 1948

Applicability of the Act & Scheme • Is extended in area-wise through notification to factories

using power and employing 10 or more persons and to non-power using manufacturing units and establishments employing 20 or more persons upto Rs.10,000/- per month w.e.f. 1.10.2006. It has also been extended upon shops, hotels, restaurants, roads motor transport undertakings, equipment maintenance staff in he hospitals. t

Coverage of employees • Drawing wages (w.e.f. 1.5.2010) upto Rs. 16,000/- per

month engaged either directly or through contractor. Rate of Contribution of the wages

Employers' – 4.75% Employees' – 1.75%

Remittance of contribution

• The total amount of contribution (employee's share and

employer's share) is to be deposited with the authorized bank through a challan in the prescribed form in quadruplicate on or before 21st of month following the alender month in which the wages fall due. c

Benefit to the employees under the Act

• Medical, sickness, extended sickness for certain

disease, enhanced sickness, old age care dependents maternity, besides funeral expenses, rehabilitation allowance, medical benefit to insured person and his or her spouse, medical bonus & physical aids.

Page 48: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

44  

PAYMENT OF BONUS ACT, 1965 Applicability of Act Sec. 1 • Every factory wherein 10 or more persons are employed

ith the aid of power or • An establishment in which 20 or more persons are

employed without the aid of power on any day during an accounting year.

Components of Bonus Sec.2 (21) • Salary or wages includes dearness allowance but no

other allowances e.g. over-time, house rent, incentive of commission.

Separate establishment Sec.3 • If profit and loss accounts are prepared and maintained

in respect of any such department or undertaking or branch, then such department or undertaking or branch is treated as a separate establishment.

Computation of gross profits Sec. 4 • For banking company, as per First Schedule.

Page 49: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

45  

• Others, as per Second Schedule. Computation of available surplus Sec. 5 • Income tax and direct taxes as payable. • Depreciation as per section 32 of Income Tax Act • Development rebate, investment or development

allowance. Eligibility of Bonus Sec. 8 • An employee will be entitled only when he has worked

for 30 working days in that year. Disqualification and Deduction of Bonus Sec. 9 & 18 • On dismissal of an employee for fraud; or • Riotous or violent behaviour while on the premises of

the establishment; or • Theft, misappropriation or sabotage of any property of

the establishment; or • Misconduct of causing financial loss to the employer to

the extent that bonus can be deducted for that year.

Page 50: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

46  

Payment of Minimum Bonus Sec. 10 • 8.33% of the salary or Rs.100 (on completion of 5 years

after 1st Accounting year even if there is no profit). Eligible Employees Sec. 12 • Employees drawing wages upto Rs. 10,000 per month

or less. • For calculation purposes Rs. ,500 per month maximum

will be taken even if an employee is drawing up to Rs. 10,000 per month.

Time Limit for Payment of Bonus Sec, 19 • Within 8 months from the close of accounting year. Submission of Return Rule 5 • In Form D to the Inspector within 30 days of the expiry

of time limit under Section 19.

Page 51: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

47  

MATERNITY BENEFIT ACT, 1961 Objective of the Act • To protect the dignity of motherhood and the dignity of a

new person's birth by providing for the full and healthy maintenance of the women and her child at this important time when she is not working.

Coverage of the Act Sec.3 • Upon all women employees either employed directly or

through contractor except domestic women employees employed in mines, factories, plantations and also in other establishments if the State Government so decides. Therefore, if the State Government decides to apply this Act to women employees in shops and commercial establishments, they also will get the benefit of this Act. Bihar, Punjab, Haryana, West Bengal, UP, Orissa and Andhra have done so.

Conditions for eligibility of benefits Sec. 5 • Women including temporary or unmarried are eligible for

maternity benefits when she is expecting a child and has worked for her employer for at least 80 days in the 12 months immediately preceding the date of her expected delivery.

Page 52: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

48  

Conditions for claiming Benefits Sec.5 • Ten weeks before the date of her expected delivery, she

may ask the employer to give her light work for a month. At that time she should produce a certificate that she is pregnant.

• She should give written notice to the employer about

seven week before the date of her delivery that she will be absent for six weeks before and after her delivery. She should also name the person to whom payment will be made in case she can not take it herself.

• She should take the payment for the first six weeks

before she goes on leave. • She will get payment for the six weeks after child birth

within 48 hours of giving proof that she has had a child. • She will be entitled to two nursing breaks of fifteen

minutes each in the course of her daily work till her child is fifteen months old.

• Her employer can not discharge her or change her

conditions of service while she is on maternity leave. Cash Benefits Sec. 7 & 8 • Leave with average pay for six weeks before the

delivery.

Page 53: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

49  

• Leave with average pay for six weeks after the delivery.

• A medical bonus of Rs.25, if the employer does not provide free medical care to the woman.

• An additional leave with pay up to one month if the woman shows proof of illness due to the pregnancy, delivery, miscarriage or premature birth.

• In case of miscarriage, six weeks leave with average pay from the date of miscarriage.

Non Cash Benefits/Privileges • Light work for ten weeks ( six weeks plus one month)

before the date of her expected delivery, if she asks for it.

• Two nursing breaks in the course of her daily work, until the child is 15 months old.

• No discharge of dismissal while she is on maternity leave.

• No change to her disadvantage in any of the condition of her employment while on maternity leave.

• Pregnant woman discharged or dismissed may still claim maternity benefits from the employer.

• Exception : Women dismissed for gross misconduct lose

their right under the Act for Maternity Benefit.

Page 54: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

50  

Leave for Miscarriage and Tubectomy Operation Sec. 9 & 13 • Leave with wages at the rate of maternity benefit, for a

period of six weeks immediately following the day of her miscarriage of her medical termination of pregnancy.

• Entitled to leave with wages at the rate of maternity

benefit for a period of two weeks immediately following the day of her tubectomy operation.

Leave for illness arising out of pregnancy etc. Sec. 10 • A woman suffering from illness arising out of pregnancy,

delivery, premature birth of child (miscarriage, medical termination of pregnancy of tubectomy operation) be entitled, in addition to the period of absence allowed to hr leave with wages at the rate of maternity benefit for a maximum period of one month.

Prohibition of dismissal during absence of pregnancy Sec. 12 • Discharge of dismissal during or on account of such

absence or to give notice of discharge or of dismissal on such a day that the notice will expire during such absence, or to vary to her disadvantage any of the conditions of her service.

• At the time during here pregnancy, if the woman but for

such discharge or dismissal would have been entitled to maternity benefit or medical bonus etc.

Page 55: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

51  

• Not barred in case of dismissal or gross misconduct. Forfeiture of maternity benefit Sec. 18 • If permitted by her employer to absent herself under the

provisions of section 6 of any period during such authorized absence, she shall forfeit her claim to the maternity benefit for such period.

• For discharging or dismissing such a woman during or

on account of her absence from work, the employer shall be punishable with imprisonment which shall not be less than 3 months, but it will extend to one year and with fine, not exceeding Rs. 5,000.

Failure of Display Extract of Act. Sec. 19 • Imprisonment may extent to one year or fine.

Page 56: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

52  

INDUSTRIAL DISPUTES ACT, 1947 Objective of the Act • Provisions for investigation and settlement of industrial

disputes and for certain other purposes. Definitions Sec.2(j) • Industry – has attained wide meaning than defined

except for domestic employment. Sec.3 • Works Committee – Joint Committee with equal number

of employers' and employees representatives for discussion of certain common problems.

Sec. 4 • Conciliation – is an attempt by a third party in helping to

settle the disputes. Sec.7, 7A & 7B • Adjudication – Labour Court, Industrial Tribunal or

National Tribunal to hear and decide the dispute.

Page 57: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

53  

Lay off and Payment of Compensation Sec.2 (kkk) Conditions for laying of • Failure, refusal or inability of an employer to provide

work due to:

- Shortage of coal, power or raw material. - Accumulation of stocks. - Breakdown of machinery. - Natural calamity.

Notice of Change Sec. 9 A • 21 days by an employer to workmen about changing the

conditions of service as provided in IV Schedule. Prohibition of Strikes and Lock Outs Secs. 22 & 23 • Without giving to the employer notice of strike as

hereinafter provided, within six weeks before striking. • Within fourteen days of giving such notice. • Before the expiry of the date of strike specified in any

such notice as aforesaid. • During the pendency of any conciliation of proceedings

before a conciliation officer and seven days after the conclusion of such proceedings.

Page 58: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

54  

• During the pendency of proceedings before a Labour Court, Tribunal or National Tribunal and two months, after the conclusion of such proceedings.

• During the pendency of arbitration proceedings before

and arbitrator and two months after the conclusion of such proceedings, where a notification has been issued under the sub-section (3A) of Section 10A.

• During any period in which a settlement or award is in

operation, in respect of any of the maters covered by the settlement or award.

Lay Off Compesation Sec. 25-C • Payment of wages except for intervening weekly holiday

compensation 50% of total or basic wages and DA for a period of lay off upto maximum 45 days in a year.

Retrenchment of Workmen Compensation and Conditions Secs. 25F & 25G • Workmen must have worked for 240 days. • Retrenchment compensation @ 15 days' wages for

every completed year to be calculated at last drawn wages.

• One month's notice or wages in lieu thereof. • Reasons for retrenchment. • Complying with principle of 'last come first go'. • Sending From P to Labour Authorities.

Page 59: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

55  

Prior Permission for Lay Off Sec. 25-M When there are more than 100 workmen during preceding 12 months. Prior Permission by the Government for Retrenchment Sec. 25-N • When there are more than 100 (in UP 300 or more)

workmen during preceding 12 months. • Three months' notice or wages thereto. • Form QA • Compensation @ 15 days' wages. Prohibition of unfair labour practice either by employer or workman or a trade union as stipulated in Fifth Schedule Sec. 25-T • Both the employer and the Union can be punished. Conditions of service etc. to remain unchanged under certain circumstances during pendency of proceedings Sec.33 • Not to alter to the prejudice of workmen concerned the

condition of service. • To seek express permission of the concerned authority

by paying one month's wages on dismissal, discharge or punish a protected workmen concerned with the dispute.

Page 60: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

56  

• To seek approval of the authority by paying one month's wages before altering condition of service dismissing or discharging of punishing a workman.

Recognition of Protected Workman Sec. 33(4) • One percent of the total number of workman employed

therein subject to a minimum number of five and maximum of 100 workmen.

Page 61: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

57  

PAYMENT OF GRATUITY ACT, 1972 Applicability Sec. 1 • Every factory, mine, oil field, plantation, port, railways,

company, shop, establishment or educational institutions employing 10 or more employees.

Sect. 2(e) Employees • All employees including a teacher irrespective of status

of salary. Qualifying period • On rendering of 5 years' service, either termination,

resignation or retirement. Entitlement • On completion of five years' service except in case of

death or disablement. Wages for calculation Sec. 2(e) • @ 15 days' wages for every completed year as if the

month comprises of 26 days at the last drawn wages.

Page 62: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

58  

Sec. 4(3) • Total ceiling – Rs. 10,00,000/-. Sec. 4(6) Forfeiture of Gratuity • On termination of an employee for moral turpitude or

riotous or disorderly behaviours. • Wholly or partially for willfully causing loss, destruction

of property etc. Rule 4 – Display of Notice • On conspicuous place at the main entrance in English

language or the language understood by majority of employees of the factory etc.

Sec. 6 : Rule 6 : Nomination • To be obtained by employer after expiry of one year's

service, in Form 'F'. Rule 9 : Mode of Payment • Cash or, if so desired, by Bank Draft or Cheque.

Page 63: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

59  

EMPLOYERS' LIABILITY ACT, 1938 Objective of the Act • The Employers' Liability Act was passed with the

primary object of prohibiting certain defences as pleaded in suits for damages in respect of injuries sustained by workmen under common law.

Extension of the Act Sec. 1(2) • The Employers' Liability Act extends to the whole of

India. Definitions Sec. 2(b) • Workman : A workman is a person who has

apprenticeship with an employer. This contract of service or apprenticeship is for manual labour or clerical work or for any other purpose. This contract may be made expressly or by implication or orally or in writing.

• Employer : Employer is generally a person who give

employment and directs the manner in which the work is to be done and exercises control and supervision over the work done or to be done. The definition of employer includes (i) any body of persons, whether incorporated or note (ii) the legal representatives of a deceased employer. Where the services of a workman are temporarily lent or let on hire to another person by the person with whom the workman has entered into a

Page 64: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

60  

contract of service or apprenticeship, the employer means such person to whom the services of the workman are lent or let on hire.

Page 65: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

61  

FACTORIES ACT, 1948 Applicability of the Act Sec.2 (ii) • Any premises whereon 10 or more persons with the aid

of power or 20 or more workers are/were without aid of power working on any day preceding 12 months, wherein manufacturing process is being carried on.

Registration & Renewal of Factories Sec. 6 • To be granted by Chief Inspector of Factories on

submission of prescribed form, fee and plan. Provisions on Health Secs. 11 to 20 • Employer to ensure health of workers pertaining to

cleanliness, disposal of wastes and effluents, ventilation and temperature, dust and fume, overcrowding, artificial humidification, lighting, drinking water, spittoons.

Safety Measures Sec. 21 to 28 • Fencing of machinery. • Work on or near machinery in motion. • Employment prohibition of young persons on dangerous

machines

Page 66: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

62  

• Striking gear and devices for cutting off power. Welfare Measures Secs. 42 to 49 • Washing facilities • Facilities of storing and drying clothing • Facilities for sitting • First-aid appliance – one first aid box (not less than one)

for every 150 workers. • Shelters, rest rooms and lunch rooms when there are

150 or more workers. • Creches when there are 30 or more women workers. • Welfare office when there are 500 or more workers. Working Hours, Spread Over and Overtime of Adults Secs. 51, 54 to 56, 59 & 60 • Weekly hours not more than 48. • Daily hours not more than 9 hours • Intervals for rest at least ½ an hour on working for 5

hours • Spread over not more than 10½. • Overlapping shifts prohibited. • Extra wages for overtime double than normal rate of

wages • Restrictions on employment of women before 6 AM and

beyond 7 PM.

Page 67: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

63  

Employment of Young Persons Secs. 67,68 & 71 • Prohibition ofo employment of young children e.f. 14

years • Non-adult workers to carry tokens e.g. certificate of

fitness. • Working hours for children not more than 4½ hrs. and

not permitted to work during night shift.

Page 68: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

64  

TRADE UNIONS ACT, 1926 Objective of the Act • To provide for the registration of Trade Union and in

certain respects to define the law relating to registered Trade Unions.

Registration of trade union Sec. 4 • Any 7 or more members of a trade union may, by

subscribing their names to the rules of the trade union and its compliance.

• There should be at least 10% or 100 of the workmen,

whichever is less, engaged or employed in the establishment or industry with which it is connected.

• It has on the date of making application not less than 7

persons as its members, who are workmen engaged or employed in the establishment or industry with which it is connected.

Application for registration Sec, 5 • Prescribed form with following details: - Names, occupations and addresses the members' place

of work - Address of its head office; and - Names, ages, addresses and occupations of its office

bearers.

Page 69: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

65  

Minimum requirements for membership of Trade Union Sec.9-A • Not less than 10% or 100 of the workmen, whichever is

less, subject to a minimum of 7, engaged or employed in an establishment etc.

Cancelling of registration Sec. 10 • If the certificate has been obtained by fraud or mistake

or it has ceased to exist or has willfully contravened any provision of this Act.

• It it ceases to have the requisite number of members. Criminal conspiracy in trade disputes Sec. 17 • No office-bearer or member of a registered trade union

shall be liable to punishment under sub-section (2) of conspiracy u/s120B of IPC in respect of any agreement made between the members for the purpose of furthering any such object of the Trade Union.

Disqualification of office-bearers of Trade Union Sec. 21A • Has not attained the age of 18 years • Conviction for an offence involving moral turpitude. • Not applicable when 5 years have elapsed.

Page 70: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

66  

MOTOR TRANSPORT WORKERS ACT 1961 Objective of the Act • To provide for the welfare of motor transport workers

and to regulate the conditions of their work. Applicability of the Act Sec. 1 • To every motor transport undertaking employing five or

more motor transport workers or by a notification issued by the State Government.

Running Time Sec. 2(1) • In relation to a working day means the time from the

moment a transport vehicle starts functioning Registration of motor transport undertaking Sec.3 • On an application for the registration of a Motor

Transport Undertaking to the prescribed authority. Canteens Sec. 8 • Where there are 100 or more workers

Page 71: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

67  

Rest room(s) Sec.9 • Wherein such workers are to halt at night. Medical facilities Sec. 11 • To be readily available at operating centres and halting

points. First aid facilities Sec. 12 • To be readily accessible during working hours a first aid

box equipped with prescribed contents. Hours of work for adolescents Sec. 14 • Not more than 6 hours a day including rest for ½ hour. • Not to work between 10 p.m and 6 a.m. Daily Intervals for rest Sec. 15 • After 5 hours working for at least ½ hour for an adult

working and to be allowed rest of at least 9 consecutive hours between the termination of duty on any day and the commencement of day on the following day.

Page 72: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

68  

Notice of hours of work Sec. 18 • To be displayed and correctly maintained by the

employers. Weekly rest Sec. 19 • A day of rest in every period of 7th day. Compensatory day of rest Sec. 20 • Within that particular month. Payment of wages Sec. 26 • As per the provisions of the Payment of Wages Act,

1948, extra wages for overtime twice his ordinary rates of wages

Page 73: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

69  

CHAPTER III

RETURNS AND REGISTERS UNDER DIFFERENT ACTS

PF ACT 1. Declaration by persons

already employed at the time of notification of the Fund and including nomination – Form 2.

2. Employee Contribution

Card – Form 3 A 3. Form 5 : Details of

employees qualifying to become members of the Fund for the first time during the preceding month along with declaration in Form – 2.

4. Form 10 – Employees

leaving service of the employer during the preceding month,

5. Form A – Annual

Contribution Statement. 6. Form 12 A – Statement

of contribution for the month of ______.

EPS' 95

1. Form – 3 : Consolidated return of Employees who are entitled and required to become members of the Pension fund on the date Pension Scheme comes into force.

2. Form – 4 : Return of

Employees entitled for membership of the Employees Pension Fund during the month ________.

3. Form 5 – Return of members leaving service during the month of _______.

4. Form 6 – Statement of contribution for the

month of __________.

5. Form 7 – Contribution card for the members for the year ______.

Page 74: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

70  

7. PF Inspection Book

6. Form 8 Annual statement of contribution for the currency period from_________.

ESI 1. Form 01A : Form of

Annual Information of Factory (covered under ESI Act)

2. Form 2 - Addition/

deletion in Family Declaration form.

3. Form 4 – Identity Card 4. Form 4 A : Family

Identity Card 5. Form 6 : Register of

employees

Maternity Benefit Act, 1961 1. Display of Act under Sec.

19 in Form K

2. Annual return in Form B and submission on or before 21st January in respect of the preceding year.

Payment of Bonus Act, 1965

1. Maintenance of Register (a) Form A - Computation of

allocable surplus (b) Form B - Set on & set off

of the allocable surplus (c) Form C – Amount of

bonus due to each employee

Equal Remuneration Act, 1976

Maintain register in relation to workers in Form- 'D'

Page 75: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

71  

2. Annual return – Form D - within 30 days after the expiry of time limit (Within eight months of the accounting year)

Minimum Wages Act,

1948 1. Notices in Form IX-A

containing the minimum rates of wages fixed together with extract of Act + name and address of the Inspector in English / language understood by majority of workers at the main entrance.

2. Form – I : Register of

fines 3. Form – III - Annual

Return by Employer on or before 1st February

4. Form IV - OT register of

workers 5. Form XI – Wage slip

Inter State Migrant Workmen Act 1. Form X – Particulars in

respect of recruitment and employment of migrant workmen

2. Form XI – Return to be

sent by the Contractor – within 15 days from the date the migrant workmen ceases to be employed

3. Form XII – Register of

contractors (Principal Employer)

4. From XIII : Register of

workmen employed by contractor.

5. Form XV: Displacement

& outward journey allowance sheet.

6. Form XVI : Return

journey allowance register

Page 76: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

72  

7. Form XVII : Muster-roll 8. Form XVIII :Register of

wages 9. Form XIX : Register of

deductions for damage or loss

10. Form XX : Register of

Fines 11. Form XXI : Register of

advance 12. Form XXII :Register of

overtime 13. Form XXIII : Half yearly

return (in duplicate) within 30 days of close of half year

14. Form XXV : Annual

Return of Principal Employer by 15th Feb.

BOCW (ROE & COS) Act,

1966 1. Form 1 : Registration No.

under BOCW (ROE & COS) Act, 1966

Building & Other Costruction Workers Welfare Cess Act Rule 4 : Cess levied to be paid within thirty days of completion of

Page 77: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

73  

2. Notice of stoppage or reduction of work.

Rule 240 : Register of persons

employed as Building Workers (Form XV)

Rule 241 : Muster roll (XVI); Wage

register (XVII) for damage or loss; Register of advances (XXI); Register of Overtime (XXII)

Rule 242 : Returns – Annual (XXV) by

15th Feb.

the Construction of the Project or within 30 days of the date on which assessment of cess payable is finalized. Rule 6 : Information to be furnished by the employee within 30 days of commencement of work in Form-I.

Rule 9 (1) : Notice of stoppage or reduction of work.

Page 78: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

74  

CHAPTER IV

DOs and DON'Ts "For Principal Employer"

1. The establishment in the first instance, must ensure that

they have got a registration certificate from the competent authority as provided under section 7 of Contract Labour (Regulation & Abolition) Act, 1970 before proceedings to engage the contract labour.

2. The establishment must ensure that they issue

certificate in Form V to the contractor for obtaining license as provided under section 12 of the Act.

3. It must be ensured that the Contractor who is employing

more than 20 persons has a valid license issued in his name by the competent authority as provided under the Act.

4. The payment of wages to the employees, employed by

the contractor is disbursed to his employees by the contractor himself or his nominee on or before 7th of every month and principal employer has to depute his representative to be present and sign the payment register in token of having disbursed the salary in his presence by the contractor.

5. There should not be any supervision and control by the

principal employer in respect of employees employed by the contractor to fulfill the obligation of the contract.

6. The work for which contract labour is engaged is not of

perennial nature.

Page 79: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

75  

7. Discipline of the employees of the contractor in the discharge of duties must be regulated by the contractor and not by the principal employer.

8. Leave to the employees of contractor must be

sanctioned by the contractor and not by the principal employer.

9. No advance should be paid by the principal employer to

the Contractor's employees directly. Only contractor must regulate the same.

10. Maintenance of all types of record in respect of the

employees employed by the contractor should be his own responsibility and principal employer should not intervene in such matters.

11. Dictum of the Supreme Court judgment in Hussainbhai's

case (supra) must be adhered to in drafting the agreement for the contract.

12. If the establishment is covered by the Employees'

Provident Fund and Miscellaenous Provision Act and the Employee's State Insurance Act, then preference should be given to those contractors who have their own code number under these Acts.

13. The establishment must ensure compliance of the

obligation pertaining to the various provisions regarding amenities and benefits as prescribed under the Act.

14. The establishment must ensure the submission of

annual return to the prescribed authority in the prescribed form under the Act.

Page 80: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

76  

15. The preference should be given to a contractor, who has got the contract in similar concern of the same type.

16. If the contractor has similar type of contract in different

concerned, the he should try to transfer the employee from one establishment to another establishment. Hence the contract employees can be transferable. This is with a view that the contractor should not employ the contract workmen in the same establishment for not more than a certain stipulated period.

17. The contractor shall determine the mode, method and

manner of working. The Company shall not interfere in regard to the same.

18. The contractor shall employ the workforce according to

his requirement but he shall not in any case exceed the number of workmen shown in the license or do any other work what is not given in the license.

19. The company shall ensure while making payment to the

contractor that the contractor has paid the employees' provident fund and ESI contributions deductions both of employees and of contractor on the time (along with copy of challan paid).

20. The Company shall check up that the contractor renews

his license from time to time..

Page 81: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

77  

CHAPTER V

A. INTERNAL AUDIT FORM FOR PF ACT INTERNAL INSPECTION REPORT Name of the Establishment : Name of the Sub-Contractor: Date of Inspection: Inspected by :

CHECKLIST FOR

EMPLOYEES' PROVIDENT FUND SCHEME

1. Whether contribution payable by the employer / employee at the rate deposited from day one of employment

Yes / No

2. No. of employees (a) Actual : (b) Covered:

3. Do the details tally in wage/muster register

Yes/No

4. Date of payment of PF contribution of the latest month

5. Whether declaration by the employee and his nominee obtained in From – 2, duly signed in Form-2 for sending it to Commissioner (Cl.33)

Yes/No

6. Whether the employer prepared a Contribution Card in Form-3 / Form 3A in respect of every employee in his employment at the commencement of the scheme

Yes/No

Page 82: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

78  

7. Whether return sent to Commissioner within 15 days of the close of each month – Return in Form 5 – employees qualifying to become members of the Fund during the preceding month – declaration in Form 2 forwarded by such qualifying employees {36(2)(a)}

Yes/No

8. Whether list of employees leaving the service of the employer during the preceding month sent {36(2)(b)}

Yes/No

9. Whether Inspection Notebook maintained {36(4)}

Yes/No

10. Whether contractor has submitted a statement of recoveries of contribution in respect of employees employed by or through him to the Principal Employer within 7 days of close of every month {36(b)}

Yes/No

11. (a) Whether Account Numbers allotted to each qualifying employees (b) whether employer communicated the number to each employee (Cl.37)

Yes/No

12. Whether Payment of contribution make including administrative charges within 15 days of close of every month by separate bank drafts / cheques

Yes/No

13. Whether employer forwarded Monthly Abstract to RPFC within 25 days of close of month, showing the aggregate amount of

Yes/No

Page 83: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

79  

recoveries made from the wages of all members + aggregate amount contributed by the employer {38(20}

14. Annual Contribution Statement in Form 6A is sent or not within one month {38(3)} and retained duplicate copy

Yes/No

15. Whether Contribution Card maintained and details entered in respect of employee (40)

Yes/No

16. Whether each member declared nomination in Form-3

Yes/No

17. Whether Annual Statement of members account received from Commissioner and distributed

Yes/No

Corrective action commitment given by Representative of Contracting Establishment: I have understood the non-conformities and I promise to take corrective action within 10 (ten) days and to submit a compliance report to Engineer-in-Charge/ HOHR, NTPC Signature of the Representative Signature of NTPC Representative of Contracting Establishment Name : ________________ Name ______________________ Designation:______________ Designation: _________________

Page 84: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

80  

B. INTERNAL AUDIT FOR CONTRACT LABOUR ACT INTERNAL INSPECTION REPORT Name of the Establishment : Name of the Sub-Contractor: Date of Inspection: Inspected by :

CHECKLIST

1. Whether Labour License obtained

Yes/No

2. If yes, validity of Labour License

From;_____________ To : _______________

3. No. of maximum labour to be deployed

As per license:_______ Actual : ____________

4. Whether employing more than 20 women

Yes/No

5. If yes, whether crèche is extended as per norms

Yes/No

6. Whether commencement of each notified to the Labour Authorities within 15 days

Yes/No

7. Date of commencement of work

8. Whether wholesome drinking water, sufficient number of latrines / urinals, washing facilities and first aid facilities provided within 7 days of commencement of employment of contract labour.

Yes/No

Page 85: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

81  

9. Whether rest room is extended

Yes/No

10. a) Whether rest room has adequate drinking water facility

b) Whether there is separate rest room for women

Yes/No

Yes/No

11. Whether canteen provided by contractor (No. of workmen should be more than 100) within sixty days

Yes/No

12. Whether changes of food stuffs / beverages etc., are served on the basis of 'No Profit – No Loss'

Yes/No

12(a) Whether rates are conspicuously displayed

Yes/No

13. Whether one latrine is provided for every 25 males

Yes/No

13(a) Whether one latrine is provided for every 25 females

Yes/No

14. Whether adequate & separate washing facilities exist for men / women

Yes/No

15. Whether first aid box is provided (one for every 150 contract labour)

Yes/No

Wages 16. Whether wage period is

fixed by the contractor and intimated

Yes/No

17(a) Whether wages are paid before 7th (if less than 1000 contract labour)

Yes/No

Page 86: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

82  

17(b) Date of payment of last wages

Yes/No

18(a) Whether wages are paid before 10th (if more than 1000 contract labour)

Yes/No

18(b) Date of payment of last wages

19 Whether notice showing the wage period and place and time of disbursement displayed at the place of work

Yes/No

19(a) Whether a copy sent to Principal Employer under acknowledgement

Yes/No

20 Whether Principal Employer's authorized representative witness the wages payment

Yes/No

21 Whether the contract labourer required to work for more than 9 hours in any day excluding the period of rest interval, is being paid @ twice his ordinary rate of wages

Yes/No

22 Whether the Establishment has declared 8 holidays in the calendar year (including 26th Jan., 15th Aug., 2nd Oct. 1st May before end November in consultation with Labourers and copy sent to Labour Authorities by 5th December.

Yes/No

Page 87: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

83  

23. When a workman is entitled to Holiday, is required or allowed to work on any Holiday, at his option: (a) paid twice the wages (or)(b) wages for such day and

avail himself of a substituted Holiday with wages on one of the seven days immediately before or after the day on which he so works.

Yes/No

24. Is the worker given one day leave with wages for every 20 days of actual work performed by him

Yes/No

Registers and Records 25. Whether Employment Card

in Form XIV extended to each worker within 3 days of employment of the worker

Yes/No

26. Whether the following are maintained:

(a) Muster Roll – Form XVI Yes/No (b) Register of Wages –

Form XVII or XVIII Yes/No

(c) Register of deductions for damage or loss – Form XX

Yes/No

(d) Register of Fines – Form XXI

Yes/No

(e) Register of Advances – Form XXII

Yes/No

Page 88: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

84  

(f) Register of Overtime – Form XXIII

Yes/No

27. Whether wage slips extended in Form XIX to workmen at least a day prior to disbursement of wages

Yes/No

28. Whether thumb impression / signature obtained in the Register of Wages or Muster Roll cum Wage Register

Yes/No

29. Whether abstract of rules displayed in English/Hindi/Regional Language

Yes No

30. Whether all registers/records required under the Act are kept in work place (or) within a radius of 3 km.

Yes/No

31. Whether Half Yearly return in Form – XXIV in duplicate submitted within 30 days from close of the half year.

Yes/No

Corrective action commitment given by Representative of Contracting Establishment: I have understood the non-conformities and I promise to take corrective action with 10 (ten) days and to submit a compliance report to Engineer-in-Charge/ HOHR, NTPC Signature of Representative Signature of NTPC Representative Of Contracting Establishment Name ________________ Name __________________ Designation : ____________ Designation :_____________

Page 89: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

85  

CHAPTER VI

TIPS TO READ PROVIDENT FUND CHALLAN

While executing contract, one of the thrust areas identified by NTPC is to ensure regular payment of Provident Fund by the contractor with respect to his employees. NTPC insists that each contracting establishment should have the independent PF Code Number. In terms of the General / Special Conditions of Contract, the contractor has to submit PF Challan for previous month along with RA bills forwarded to Engineer-in-Charge. It is observed that most of the times, the concerned Executive does not know the details or the relevance of figures in the PF Challan. Hence we are detailing as what is to be checked by the EIC to ensure that the obligations under PF Act are met by the contracting establishments and there is no problem in future for the concerned department as well as NTPC. (i) The Establishment Code should match with PF Code

submitted at the time of award of contract. The Establishment Code is usually written as AP/xxxx. It denotes the code has been allotted in the Andhra Pradesh. In case of Uttar Pradesh it shall be UP/xxxxx and so one (Refer –(1) on the corner of PF Challan for easy identification.

(ii) Please ensure that it is paid for the relevant month and

year (Refer- (2). (iii) Total number of subscribers (Refer – (3) : Total number

of subscribers should be same against all accounts in

Page 90: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

86  

the challan. In order to ensure that the subscribers include the personnel working at NTPC site, it is advised that along with wage register against whom the PF amount deduction has been made and remitted to the concerned RPFC, detailing the amount remitted against each employee and indicating the individual account number. The individual account number of each employee shall read as AP/xxxxx (PF Code of the (oganisation) / zzzzz (Account No. of Individual). In case, if an organization with multiple units like KBL/ Jyothi have remitted the amount say at Pune / Baroda, the details of wages paid, PF amount deducted / remitted, PF A/c Number may be obtained along with certification that the employees working at NTPC ______ are covered and necessary remittance have been made. (Refer Compliance Certificate).

For example, in case of NTPC, it shall be read as E/Dl/4070/zzzzzz E - Exempted Establishment DL - Delhi 4070 - Code allotted to NTPC zzzzz - Individual Account Number

(iv) Total Wage Payment (Refer – (4) : The contracting

establishment / employer has to deduct 12% (present rate) of the wages and remit to the concerned PF Authority. The % should be the same in all accounts, in order to ensure that the exact amount is remitted. It is to be insisted upon by the concerned executive that the wage sheet duly signed by the employees of the contracting establishment is given to NTPC.

The amount so remitted by the contracting

establishment for all employees should tally with the

Page 91: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

87  

sum of amount deducted against each employee. Please refer encircled (7)in wage sheet. The amount is remitted on line.

(v) The PF amount is remitted under different accounts viz.

Account No.1, Account No. 2, Account No. 10, Account No. 21, Account No. 22. The details of accounts are enumerated subsequently (Refer-(5).

(vi) In Part-01, there are different heads like Employer's

share of contribution, employee share of contribution, administrative charges, penal damages, misc payments etc. (Refer – (6).

(vii) Under Account No. 1, 3.67% of wages is remitted as

employer share of contribution towards Provident Fund. Whereas 12% of wages is remitted under employee share of contribution. The amount of employer's share contribution should tally with the same so deducted against PF from each individual employee. Please refer wage sheet and encircled portion (7).

(viii) 8.33% of the total wage is remitted in Account No. 10

towards EPS 95 ( in local parlance Government Pension Scheme). This amount is only remitted from the employer's share and no employee share is noticed against this account ( Refer – (8).

(ix) Account No. 2 is Administrative Charges @ 1.1% of

wages, which is collected by RPFC for running their establishment from all establishments covered under PF Act (Refer-(9).

(x) Account no. 21 is against Employee Deposit Linked

Insurance (EDLI) at 0.5% of the wages. (Refer-(10). It provides for the 'Assurance Benefit' , payable on death

Page 92: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

88  

of the employee while in service. It is linked to average balance in the PF Account of the employee.

(xi) Account No. 22 is Administrative Charges @ 0.001% of

wages in respect of EDLI. (Refer – 11). (xii) Penal damages are paid in cash the establishment does

not remit the PF amounts (employees & employers) / inspection charges etc., and as indicated by PF authorities (refer – 12).

(xiii) The depositor should be the Authorised Person of the

company to remit the money. (xiv) The amount should be deposited on or before 15th of

every month. A grade period of 5 days exist in the scheme.

(xv) Kindly ensure that the above is followed by all

contracting establishments since we are loading PF in our estimate and are reimbursing the entire amount to the contractor as per terms and conditions.

Apart from the above, EIC may keep the photocopies of the following: 1. Code Allotment Letter from concerned RPFC for

reference.

2. Form-2 (Revised) – for giving nomination for PF and Pension and details of the members of the family of each employee.

Page 93: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

89  

FACTS WHICH EICs SHALL KNOW 1. Members are informed of the balance of their PF

accumulations every year through the Annual Provident Fund Statement of Accounts (Form-23). Upon receipt of statement it is possible to cross check the total amount mentioned therein with that of the monthly challan produced earlier. Now a days it is available on line.

2. Member can avail advances / withdrawals for marriage,

house construction etc., through From-31. 3. On retirement or leaving the services, PF accumulations

can be withdrawn by Form-19. 4. For premature settlement of PF Accumulations, Two

Months waiting period from date of leaving service is compulsory.

5. In case of premature death, the Provident Fund is

payable to Nominee's or family members, through Form-20 immediately.

6. A member of the Provident Fund is also a member of

Insurance Sheme. 7. In case of death of an employee while in service, upto

Rs. 60,000/- (Rupees Sixty thousand only) is payable to Nominee / Family members, through From-5 IF.

8. No contribution is required to be paid by the employee

for the insurance benefit. On behalf of the employee, the employer is required to pay the contribution.

9. A member of Provident Fund also acquires membership

under Pension Scheme. 10. No separate amount of contribution is payable by the

employee towards Pension Fund.

Page 94: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

90  

11. The pensionery benefits is not related to quantum of contribution paid and no individual account is kept for Pension contribution. Hence no annual statement is supplied for Pension Account.

12. Pension is based on the service, age and wage of an

employee at the time of his leaving the service. 13. The payment of Pension is guaranteed and assured

even in cases where the employer fails to deposit the Pension contribution.

14. An employee is eligible for pension with minimum 10

years of pensionable service. 15. The Pension is payable on attaining the age of 58 yeas,

whether he is in service or superannuated. DETAILS OF FORMS FOR THE USE OF MEMBERS Form 2 (Revised) - For giving Nomination for

Provident Fund and Pension and details of the members of the family.

Form 13 (Revised) - To transfer the Provident Fund

Account on joining another establishment.

Form 31 - To avail advance / withdrawal for

various purpose. Form 19 - To withdraw Provident Fund

amount by a Member

Page 95: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

91  

Form 20 - To withdraw Provident Fund account of a deceased member by a nominee / family members

Form 23 - Provident Fund Annual Statement

of Account to be supplied by the Commissioner every year through employer to the subscribers

Form 10-C (EPS) - To receive Scheme Certificate /

Withdrawal Benefit Form 10-D (EPS) - To claim Pension under

Employees' Pension Scheme'95 Form 5 (IF) - To claim Assurance Benefit under

Employees' Deposit Linked Insurance Scheme, 1976

Page 96: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

92  

TIPS TO READ ESI CHALLAN Employees' State Insurance Scheme of India (ESI Scheme) is applicable to NTPC, wherever the area is notified. Having read tips of reading PF Challan, it is more easier to read ESI Challan. ESI Scheme is mainly financed by contributions raised by employees covered under the scheme and their employers, as a fixed percentage of wages. 1. The establishment code should match the ESI code

submitted at the time of award of the contract [Refer – ESI(1).

2. Please ensure that it is paid for the relevant month and

year [Refer –ESI(2)]. 3. The employer will deposit both employees' and

employers' contribution as per specific rates within 21 days of the following month. Remittance is on line now.

4. Total wages paid shall be referred in the wage sheet just

life in PF [Refer – ESI(3)]. 5. Employees' contribution shall be 1.75% of the wages.

The EIC should collect the details of Account Code under ESI under which remittance is made against the employee. [Refer – ESI(4)].

6. Employer's contribution is 4.75% of the wages for which

no deduction from employee shall be made by the employer since it is loaded in NTPC estimate and is being reimbursed. Refer – ESI(5)].

7. The depositor should be the authorized person of the

company to remit he money.

Page 97: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

93  

EIC may keep a photo copy of Code Allotment Letter issued to the contractor by concerned ESI Office for reference. SOCIAL SECURITY BENEFITS TO THE EMPLOYEES 1. Medical Benefit for self & dependents 2. Sickness Benefit (Cash) 3. Enhanced Sickness benefit (Cash) 4. Maternity Benefit 5. Disablement Benefit (Cash) 6. Dependants' Benefit (Cash) 7. Other benefits such as Funeral expenses; Vocational

Rehabilitation; Free supply of physical aids & appliances; Preventive Health Care Services; Confinement Allowance

Page 98: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

94  

RIGHTS AND DUTIES OF EMPLOYERS - The employer will collect temporary identity card from

the Local Office concerned followed by permanent photo identity cards and pass them on to the employees concerned.

- The employer will maintain an Accident Book and submit

accident reports to the Local Office, involving insured worker(s) on the job, within 24 hours of an accident.

SAFEGUARDS FOR INSURED EMPLOYEES a) Right to receive payment of any benefit under the Act

that shall not be transferable or assignable. b) Cash benefits payable under the act are not liable for

attachment or sale in execution of any decree or order of any court.

c) Employer shall no dismiss, discharge or reduce the

wages or otherwise punish a covered employee during the period he / she is in receipt of Sickness Benefit or Maternity Benefit etc.

d) By reason of his liability to pay his share of contribution

under the ESI Act, no employer shall directly or indirectly reduce the wages of a covered employee.

e) Right to register their grievances / complaints at any

level for immediate redressal. f) Right to approach ESI Court against any action /

decision of the Medical Board etc.

Page 99: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

95  

g) Right to approach ESI Court against any action / decision of the Medical Board etc.

Actions to be taken by the Employer / Employee 1. Registration of family members by the every individual

person in Form-1A. Subsequent to furnishing all particulars, the employer should submit the same to the appropriate office within 10 days.

2. Change in family members shall be intimated by

individual person in Form-2 within 15 days to the employer / authority.

3. Appropriate Office shall arrange identity card in Form-4

for each person who is insured and it shall include the particulars of the family members entitled to various benefits under Regulation No. 95A. (EIC should collect such cards and keep a copy in records for ready reference).

Page 100: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

96  

Page 101: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

97  

Page 102: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

98  

Page 103: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

99  

CHAPTER VII

SAMPLE FORMATS

Date Employee Name Dear

Appointment Letter We are pleased to appoint you in our organization as ____________ subject to the following terms and conditions: 1. Your contract will commence from__________ during

which you will render services to our Client at their premises subject to the terms and conditions of this appointment letter executed by you on _______________ and in accordance to the instructions received by you from us or any other authorized person and will be bound by our and the client's rules and regulations.

2. Your salary will be as per the Annexure attached. The

salary and the reimbursements, if any will be paid by __________________________________________ by (Contractor's name) way of cheque or transfer to your bank account.

3. You hereby agree to be liable for the following terms

and conditions:

(i) Fully perform the services, in a professional manner, at the Client's location during the term of the work assignment.

Page 104: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

100  

(ii) During the terms of the work assignment, render services exclusively to the client and such performance shall not be inconsistent with any obligation you may have to other third parties.

(iii) Not engage in any conduct which is detrimental

to the interest of the Client or ___________-______________________________________.

(Contractor's name)

(iv) Extend all cooperation to the Client's employees, consultants, representatives, etc. and do all such things as may be necessary and comply with all terms of the Appointment letter so as to effectively undertake the work.

(v) Report and be present at the designation location during the working hours assigned to you and abide by the rules and regulations as required by the Client.

(vi) Comply with safety, health and other rules and

regulations of ___________________________ (Contractor's Name) and our Client that you have been made aware

of.

(viii) During the course of your contract, you can be transferred to a location within the territory of India as and when required by ______________ (Contractor's Name) for executing the services provided herein.

Page 105: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

101  

4. During the term of the appointment, either party may terminate the Work Assignment Letter by issuing 30 days notice in writing or payment thereof.

5. Termination of this letter of appointment shall not effect

the obligations of the parties that have been incurred prior to such termination and _____________________ (Contractor's name) shall promptly settle all your dues after making the applicable deductions.

6. You agree to defend, indemnify and hold

__________________________________ or the Client (Contractor's name) harmless from any and all claims, damages, liability,

attorneys fees and expenses on account of your failure to satisfy any of your obligations under this work assignment letter or for misconduct or for violation of any law or creation of any legal liability by you.

7. This appointment letter shall be governed by the laws of India. 8. You will be entitled to an employer's contribution of

Provident Fund to the extent of 12% of your basic salary and applicable ESI contribution. You will also be covered under Medical and Accident Insurance and will be entitled to all other statutory benefits whichever is applicable during the contract period. It is hereby clarified that if you fail to submit the ESIC, PF, Gratuity nomination forms together with any other document as required under the applicable labour legislations. ______________________________ shall not incur (Contractor's Name)

any liability with regards to any Claims under the said applicable labour legislations.

Page 106: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

102  

9. In addition to the terms contained herein, your relationship with _______________________________

(Contractor's Name) may be subject to such other additional terms and

conditions as may be communicated to you from time to time in writing by ________________________ and you

(Contractor's Name) hereby agree to have read and clearly understood the

terms of employment provided in the Service Rules, which is attached herein.

We at _____________ would like to create an environment and (Contractor's Name) culture committed to co-operation, quality and responsiveness

that permeates every activity. Please return the copy of the Offer Letter enclosed after affixing

your signature at the appropriate place on the Office Copy in token of your having read, agreed, fully understood and accepted the terms and conditions of appointment. In case we do not receive your acknowledgement copy within a period of 15 days from the date of joining, your assignment at _______________ with the acceptance of your first salary from

(Contractor's Name) ______________ will be conclusive proof of your acceptance in

(Contractor's Name) accordance of terms and conditions.

ENDORSEMENT

I hereby confirm acceptance of the above assignment, on the terms and conditions stipulated therein.

Page 107: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

103  

For _____________________ Contractor's Name ____________________ Authorized Signatory ___________________ Signature _____________________ Date : Name

Salary Annexure

Page 108: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

104  

COMPLIANCE CERTIFICATE

We hereby undertaking that the following statutory payment has been remitted to respective Authorities in respect of ________________________ Contractor's Name/UPL which includes our associates deputed to client named below for the month of ______________ Name of the Client : NTPC ___________________ (Project/Station) Client ID : (Optional) _________________

Page 109: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

105  

ILLUSTRATIVE EXAMPLE

Provident Fund

No. of Associates

PF Wages

EPS Cap Wages

Employee's PF (12%)

VPF Employer's PF (3.67%)

Employer's PS (8.33%)

Inspection Charges

EDLI EDLI Admin

Total

29 209601 187114 25153 0 9578 15575 2306 948 19 53578 ESIC Professional Tax No. of Associates

ESI Wages

Employee Contribution[1.75%]

Employer Contribution[4.75%)

Total No. of Associates

Amount

21 215411 3779 10240 14019 The above details are true and correct to the best of our knowledge, belief and information. For ___________________________ (Contractor's Name / UPL) Authorised Signatory

Page 110: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

106  

SAMPLE INDEMNITY BOND This indemnity bond is made on 21st Decmber, 2009 by M/s S. Chenna Reddly Plot No. 303, Fridaus Kaveri Court, Mettuguda, Hyderabad (hereinafter called the Contractor) which expression shall include its successor and its assigns) in favour of M/s NTPC Ltd. incorporated under the Companies Act, 1956 having its Registered Office at SCOPE Complex, Core No. 7, Institutional Area, Lodhi Road, New Delhi – 110 003 (hereinafter called the NTPC, which expression shall include its successors and assigns.) Whereas NTPC has awarded a contract for the Construction of Railway formation in filling/cutting, roads, drains and its ancillary works for proposed augmentation of Railway infrastructure for Stage II to S. Chenna Raddy (hereinafter call the S. Chenna Reddy, which expression shall include its successors and assigns) a who in turn awarded the Construction of Railway formation in filling/cutting, roads, drains and its anciliary works for proposed augmentation of Railway Infrastrcucture for Stage II vide its LOA & WO No. RITES/BBSR/NTPC-Simhadri/EW/2009/1811, dated 10th December, 2009 (hereinafter called the CONTRACT). Whereas the responsibility of the aforesaid contractor for execution of the aforesaid work is absolute, any action/omission of their sub contractor as aforesaid contractor at the helms of the affairs for execution of the work and therefore the said contractor shall remain liable for discharge of his obligation for compliance arising out of executing the job in so far as it relates to all the labour laws and other laws and statutory provisions in force from time to time and as applicable to them, so that NTPC is not put any liability for their Contractors' and sub-contractors' act and omission.

Page 111: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

107  

NOW THEREFORE, this indemnity bond witnessed as follows: That for the purpose of performance of the contract, the CONTRACTOR here undertakes to indemnify an shall keep NTPC indemnified against all liabilities towards the payment / statutory deductions, compensation (if any), other allowances as required to be paid under any law in fore/agreement, not only top the labourers engaged by him but also to the labour engaged by the sub-contractor more specifically under the provision of payment of Wages Act, Minimum Wages Act, Employees Compensation Act, EPF and MP Act, ESI Act, Contract Labour (R&A), Act etc. in the performance of the said contract. Further the contractor agrees to undertake the liabilities towards the sub-contractor on a late date, even after completion of the aforesaid contract. That the contractor is obliged and shall remain absolutely responsible to discharge his liabilities towards compliance with all the labour laws for the performance of the contract being executed by him and by his sub-contractors. That understood and specifically agreed to by the contractor that non-observance of the obligations under this indemnity bond by the contractor shall inter-alia constitute a criminal breach of trust on the part of the contractor for all intents and purposes including legal/penal consequences thereof. That this Indemnity bond is irrevocable and if at any time financial loss occurs to NTPC, on account of any action/inaction regarding the labour laws and other laws statutory provisions in force from time to time and as applicable to the contractor/sub-contractor, then the contractor agrees to compensate NTPC for such financial loss. The contractor binds himself and undertakes to compensate such loss and shall pay the amount

Page 112: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

108  

for financial loss to NTPC, without any demur, reservations or protest. This is without prejudice to any other right or remedy that may be available to NTPC, against the contractor under this contract or Indemnity bond. Now the condition of this bond is that, if the contractor duly and punctually complies with all the terms and conditions of this bond to the satisfaction of NTPC, then the above bond shall be void, but otherwise it shall remain in full force and virtue. In witness whereof the contractor has hereunto set its hand through its authorized representative under the common seal of the contractor the day, month and year above mentioned. Witness & address particulars (Signature of the Contractor) 1. Signature : ______________ Name

Name : ______________ Address: _____________:

Adress : _______________ ____________________

_______________________ _____________________ 2. Signature : _____________ Tel No./Mob.No. ______

_______________________ _____________________

Page 113: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

109  

INFORMATION ABOUT THE CONTRACTOR FOR ISSUE OF FORM-V

S. No.

Description Details

1. Name of the Contractor / Firm

1 (a).

Permanent & Complete Postal Address

1 (b) Local Address 2. Name of the work 3. LOA No. & Date 4. Value of the Contract 5. Duration of the contract From_________to_______

(or)_______ months 6. Name of the

Representative of the Contractor/ Firm/ Site In-Charge

6(a) Telephone Numbers (O) ____________ (R) _____________ (Mob.)___________

7. Max. no. of contract labour proposed to be deployed on any day during the execution of the contract including contractor's regular employees

On regular { } + On contract { } = Total { } USK________, SSL:_______. SK______ Highly SK/Sup:_______

8. Details of PF PF Code No. __________ Issued by the RPF Commissioner ________-

Page 114: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

110  

9. Details of ESI ESI Code No. __________ Obtained from :_________

10. Group Insurance Insurance Policy No.___________ Name of Insurance Co._________ Validity: From ______ to _______ No. of Labourers covered : ________

11. Service Tax No. 12. PAN No. 13 Whether the contractor

intend to employ Migrant Labour as defined in Inter-state Migrant Workers Act? If yes, furnish the details such as (a) Name of the contractor employee Father's Name (c) skilled/ Unskilled (d) Male/Female in a

separate annexure apart from submitting application for license under Inter-state Migrant Workers Act & Rules.

Yes/No

Page 115: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

111  

This report is to issue Form-V under the Contract Labour (R&A) Act to enable us for obtaining license. I also undertake the responsibility on behalf of the contractor/ agency to obtain the license and also maintain all other required provisions and formalities contemplated not only under this Act but also as provided in all other relevant statures including Inter-State Migrant Workers Act etc. Company Seal : Signature of the Contractor Date : Recommendations by the HOD: The details given by the contractor are certified. The establishment engaged for the job indicated as above is inside the plant / outside the plant premises. Date : Signature of HOD

Page 116: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

112  

UNDERTAKING BY THE CONTRCTOR We, ___________________________, a contractor of NTPC, undertake to maintain all records etc., to be maintained under the following Acts. A. Under Contract Labour (R&A) Act, 1970 and the Central

Labour (R&A) Rules (Central) 1971 and Amendment thereof from time to time viz.

1. Notice of Commencement / Completion of Contract work

(Foorm VI-A) 2. Register of Workmen Employed – Form XII 3. Employment Card – Form XIV (Rule 76) 4. Register of advances – Form XXII – Rule 789i) 9(a)(II) 5. Half yearly return (to be submitted latest by July for the

half year Jan. _____to June____________and latest by Jan.________ for the half year July________ to Dec.______________).

6. Display of Notice Board in English / Hindi / ( as given below) with Abstract of CL(R&A) Act & Central Rules (English / Hindi).

a) Name of the Contractor : b) Name of the Principal Employer : NTPC

Limited _________ c) Minimum Rate of wages fixed

USK:__________ , SSK : _______ d) Normal Hours of Work : e) Wage period : f) Date of payment : g) Place & Time of disbursement of wages: h) Weekly rest : i) Date, time & place of payments of unpaid

wages:

Page 117: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

113  

j) Name & address of Inspector : S/Shri

1. 2. 3. (Signature of the Contractor)

B. The Minimum Wages Act 1948 and the Minimum

Wages notified by the Competent Authority under this Act and Records viz.,

1. Muster Roll (Form-V) 2. Register of Wages (Form-X) 3. Register of Fines (Form-D) 4. Register of Deduction of Damages or Loss

(Form-II) 5. Register of D.T. (Form IV) 6. Wage slips (Form XI) Rule 21(4)

C. EPF & MP Act 1952 and MPF Scheme 1952 and the

Employees' Pension Scheme, 1995 D. Employees' Compensation Act, 1923

E. Payment of Wages Act, 1936

F. Maternity Benefit Act, 1961

G. Payment of Bonus Act, 1965

H. Industrial Disputes Act, 1947

I. ESI Act, 1948

Page 118: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

114  

J. Equal Remuneration Act, 1976

K. Interstate Migrant Workmen Act, 1979

L. The Child Labour (P&R) Act, 1986

M. Payment of Gratuity Act, 1972

And all other statutory Acts/Provisions applicable to Contract Labour

(Signature of the Contractor

Name : _________________

Designation: ______________

Company's Seal

Page 119: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

115  

CHECK LIST WHILE FORWARDING CONTRACTOR'S APPLICATION FOR PERMANENT GATE PASSES O&M

CONTRACTS

Name of the Package : LOA No. & Date : Name of EIC / Dept. : No. of workers deployed : 1. Whether Contractor has obtained Labour License : Yes; No Dated: 2. Whether proof of the following enclosed (copies) a) Group Insurance : Yes/No b) PF Code Allotment Letter : Yes/No c) ESI Code Allotment Letter : Yes/No d) Service Tax Code Allotment Letter : Yes No e) Pan Code Photocopy : Yes/No 3. Whether clearance from Safety obtained after : Yes/No Induction training 4. Whether Medical Certificate of all Contract : Yes for __ Workers enclosed workers 5. Whether birth certificate of all contract : Yes for Enclosed __ workers

Page 120: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

116  

6. Whether valid T&P certificate submitted to : Yes/No EIC 7. Whether Bank A/c Nos. of worker submitted : Yes/No 8. Whether contractor has brought Muster Card : Yes/No With in-time / out-time & entered details in Employee Register (Form XIII) 9. Whether temporary and permanent address : Yes/No Incorporated in the application 10. Remarks __________________________________________________ Sign. Employee who verified Sign of EIC Verified at HR Sign: Name Name Emp. No. Emp. No.

Page 121: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

117  

LIST OF CLAUSES TO BE INCORPORATED IN O&M CONTRACTS

S. No. Proposed & Finalised Clauses

1.0 • The contractor shall submit an application form with requisite details for issue of Form-v through EIC before commencement of work as per the sample.

• On receipt of the required information at HR, Employee Relations Section/ Contract Labour Management Cell shall issue Form V which shall be submitted by the contracting establishment to appropriate Government as notified from time to time by HR Department for issue of license.

• Subsequent to issue of Labour License by the appropriate Government Authority, photocopy of the same shall be provided to OHR Deptt. / EIC for their record and reference.

• At no time, contracting establishment shall apply for more number of gate passes than the number of labour for which the License is obtained.

2. • The Contractor shall submit proof of Group

Insurance/ PF Code/ ESI Code/ Service Tax Code and PAN allotted to him under the relevant Acts to HR/ EIC before commencement of work.

3.0

• Initially the contractor shall be permitted to deploy their staff and contract workers on temporary gate pass for a period of 7 days for which the application shall be routed through EIC in triplicate. The contractor shall take action for permanent gate pass within these 7 days including clearance from Safety Department after initial induction training.

Page 122: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

118  

• Medical certificate for each worker has to be submitted by the agency at the time of Safety Induction Training (SIT).

• Valid T&P test certificate to be submitted to EIC at the time of SIT for allowing them inside the Plant. Electrical T&Ps shall be tested and certified by Elect. Maintenance Department with sticker.

• The duration of temporary pass is only for the SIT which can be maximum seven (7) days. Immediately after SIT, the agency should obtain permanent gate passes and then start the job.

4.0 • The contractor shall remit the monthly wages to

the Bank Account of the employee and submit the proof of transfer of amount to EIC / HR. Further, the contractor has to issue pay slips for each month to the contract workers.

5.0 • Each contractor while employing a worker shall

record IN-TIME & OUT_TIME in the Muster Card / Register to establish the actual time of working of the employee.

6.0 • In order to ensure statutory compliance of PF &

ESI, payment of Minimum Wages, each contractor shall submit copy of PF / ESI Challan along with Muster and Wage Register and details of PF & ESI account of the individual worker for the preceding month to be EIC before release of RA bill. The copies of same shall also be submitted to F&A / HR Department as per the sample Compliance Certificate while seeking release of bill/renewal of the gate passes every month to F&A / once in three months to HR for records to answer queries from Statutory

Page 123: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

119  

Authorities. At the end of financial year, contractor should also distribute Annual PF Statement – Form 23 too the workers after obtaining it from the concerned RPFC. Copies of Annual Statements so disbursed shall also be submitted to EIC/HR closure of the contract and release of SD / Final Bill.

7.0 • Each contractor at the time of preparation of

permanent gate pass incorporate temporary and permanent address and also give an undertaking about the character and antecedents of the worker along with Bio-data Form (this is to ensure that no child labour is engaged as per SA 8000 requirement). In case it is not available, the contractor shall submit an Affidavit by the concerned worker regarding proof of his age. The application shall be forwarded through EIC to HR Department for onward transmission to CISF for issue of the gate pass.

8.0 • Workers deployed in NTPC canteen as well as in

the canteens of contracting establishments shall undergo compulsory medical check up at lease once in a year, copy of which shall be submitted to EIC.

9.0 • In all the contracts, Principal Employer shall

have the right to deposit the Workmen's Compensation in case of a contractor does not settle the same within seven days of its becoming due and deduct from the RA bills of the Contractor without any further correspondence.

Page 124: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

120  

10.0 • It shall be the responsibility of the contractor to absorb the burden of extra payment to contract workers an account of rise in minimum wages / ceiling of bonus, allowances etc., notified by any Statutory Authority and Contractor shall have no extra claim on this account with NTPC except in cases where specific provision for reimbursement of Statutory Wages is available in Tender Document and subsequent Purchase Order.

11.0 • Preference shall be given by the contractors to PAPs/ Land Losers/ Locals from neighbouring villages while employing labourers. 50% of the labourers to be deployed in unskilled category shall be reserved for the above category.

12.0 • ESI card for the contract workers shall be provided by the contractor within 30 days of employment. Copies of the card shall be submitted to HR / EIC for reference etc. In case the same is extended, EIC shall have the discretion to withhold certain amount till such time compliance is reported.

Page 125: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

121  

PERFORMA OF CERTIFICATE REGARDING LABOUR PAYMENTS AND STATUTORY REQUIREMENTS TO BE

FURNISHED BY CONTRACTOR.

(TO BE ISSUED BY THE CONTRACTOR)

CERTIFICATE NO. CCP-10

NAME OF PACKAGE

LETTER OF AWARD/ CONTRACT No.

NAME OF CONTRACTOR

PROJECT

This is to certify that we have made all labour payments

including PF Liabilities in respect of the above mentioned

LOA/Contract and no other payments in this regard is pending

from us.

Further we confirm that all statutory requirements have been

complied with by us and in case any default is reported against

us, we shall be solely responsible for the same.

Date:

Page 126: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

122  

Place: New Delhi (SIGNATURE) (NAME) (DESIGNATION)

(COMPANY SEAL)

Page 127: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

123  

PERFORMA OF “NO DEMAND CERTIFICATE” BY CONTRACTOR

(TO BE ISSUED BY THE CONTRACTOR)

CERTIFICATE NO. CCP -11

NAME OF PACKAGE

LETTER OF AWARD/ CONTRACT No.

NAME OF CONTRACTOR

PROJECT

We, M/s (Contractor) do hereby acknowledge and confirm that we have received the full and final payment due and payable to us from NTPC Ltd. In respect of our aforesaid LOA/Contract PO No. ____ including amendments, if any, issued by NTPC Ltd., to our entire satisfaction and we further confirm that we have no claim whatsoever pending with NTPC Ltd., under the said Contract.

Notwithstanding any protest recorded by us in any correspondence, documents, measurement books, and/or final bills etc., we waive all our right to lodge any claims or protest in future under this contract.

Page 128: HAND BOOK ON CONTRACT LABOUR MANAGEMENTacolabz.com/erhq/Uploads/KnowledgeBank/KnowledgeBank1.pdf · (iv) The Employee's Compensation Act, ... registered under BOCW Act ... Maintaining

    

124  

We are issuing this “NO DEMAND CERTIFICATE” in favour of NTPC Ltd. with full acknowledge and with our free consent without any undue influence, misrepresentation, coercion etc. Date: Place: New Delhi (SIGNATURE) (NAME) ______ (DESIGNATION) (COMPANY SEAL)

For Any suggestions/improvements please mail to [email protected]

References :

1. Industrial Law - Sh. P.L. Malik

2. Labour Laws - Sh. H.L. Kumar