ID,PF,MW,FACT,SO

7/29/2019 ID,PF,MW,FACT,SO.

1/84

A BRIEF CHECK LIST OF

LABOUR LAWS


2/84

EMPLOYEES PROVIDENTFUNDS & MISC. PROVISIONS

ACT, 1952


3/84

Eligibility

Any person who is employed for

work of an establishment oremployed through contractor in

or in connection with the work of

an establishment.


4/84

Applicability

Every establishment which isfactory engaged in any industryspecified in Schedule 1 and in which

20 or more persons are employed.

Any other establishment employing20 or more persons which Central


5/84

Government may, by notification,specify in this behalf.

Any establishment employingeven less than 20 persons can becovered voluntarily u/s 1(4) of the

Act.


6/84

Payment of Contribution

The employer shall pay the

contribution payable to the EPF,

and Employees Pension Fundin respect of the member of the

Employees Pension Fund employed

by him directly by or through acontractor.


7/84

Rates of Contribution

SCHEME EMPLOYEES

EMPLOYERS

CENTRALGOVTS

ProvidentFund

Scheme12% Amount >

8.33

Nil

Insurance

Scheme NIL 0.5 Nil

PensionScheme NIL 8.33 1.16%


8/84

Damages

Less than 2 months .@ 17% perannum

Two months and above but lessthan upto four months .@22% perannum

Four months and above but less

than upto six months .@ 27% perannum

Six months and above


9/84

Penal Provision

Liable to be arrested without warrantbeing a cognisable offence.

Defaults by employer in paying

contributions or inspection/administrative charges attract imprisonment upto 3

years and fines upto Rs.10,000 (S.14).

For any retrospective application, all dueshave to be paid by employer with

damages upto 100% of arrears.


10/84

FACTORIES ACT, 1948


11/84

Applicability of the Act

Any premises whereon 10 or

more persons with the aid of

power or 20 or more workersare/were without aid of power

working on any day preceding

12 months, wherein Manufacturing

process is being carried on.Sec.2(ii)


12/84

Objectives of the Act :-

To protect workers employed in factories againstindustrial occupational hazards

To protect human beings from being subjected to undulylong hours of bodily strain and manual labour

To provide healthy working conditions, safe workenvironment and welfare of employees

To regulate the condition of work in the manufacturing

establishment


13/84

DEFINITION

Factory :-

Any manufacturing process wherein ten ormore workers are working with aid of power

Any manufacturing process wherein twenty ormore workers are working without the aid of

power

Worker :-Any person employed directly or through anyagency including a contractor in any

manufacturing process

Contd.


14/84

Power :-

It means electrical energy or any other formof energy which is mechanically transmitted and

is not generated by human or animal agency.

Manufacturing

process :-

It includes following activities with a view tosale, transport, delivery or disposal.

Making

Altering

Repairing

Ornamenting

Finishing

Packing

Oiling

Washing

Cleaning

Demolishing

Contd.

Contd.


15/84

Hazardousprocess :-

It means any process or activity in a factory(list specified in the 1st Schedule of the Act),

unless special care is taken, raw material used

therein or intermediate or finished product,

bye-products wastes or effluent thereof would :

-cause material impairment to the health ofthe persons engaged

-result in the pollution of general environment

Contd.

Contd.


16/84

Occupier :-

The person who has ultimate control over theaffairs of the factory

N.B.-

1. In case of proprietorship firm, the Proprietor is the

Occupier

2. In case of partnership firm, anyone of the partnersbe the Occupier

3. In case of a company, any one of the Directors

shall be the Occupier4. In case of a Government owned factory, the

Person appointed by the concerned Government tomanage the affairs of the factory shall be theOccupier

Contd.

Contd.


17/84

Manager :-The person responsible to the occupier for theworking of the factory

N.B.-

As per case Law, person having power toemploy or dismiss persons working in thefactory and empowered to give promotionor inflict fines on them is the Manager

within the meaning of Factories Act, 1948

Contd.

Contd.


18/84

Competentperson :-

It means a person or an institution havingadequate qualification or facilities recognised by

the Chief Inspector of Factories to carry out tests

and examination of

-Pressure plants

-Lifting machines, chains, ropes and liftingtackles

-Structures / building in respect to its stability,etc.

Contd.

Contd.


19/84

Contd.

Inspector :- The Assistant Director of Factories, DeputyDirector of Factories, Joint Director of Factories

and Director of Factories shall be theINSPECTOR under the Act and Rules for their

respective jurisdiction.


20/84

RESPONSIBILITY OF THE OCCUPIER

Every Occupier shall ensure the health, safety and welfare

of all workers (both regular and contractor), while they are atwork

Provide such information, instruction, training andsupervision as are necessary to ensure safety, health and

welfare of workers

The Occupier shall prepare a written statement of hisgeneral policy with respect to health and safety of workers and

carry it out

The Occupier of a hazardous factory shall disclose allinformation regarding dangers including health hazards and

measures to overcome to all workers, Chief Inspector and the

Local AuthoritiesContd.


21/84

The Occupier of a hazardous factory shall draw up an

on-site emergency plan and detailed disaster control measuresof his factory and conduct periodical mock-drill to assess

preparedness

The Occupier of a factory employing 250 workers or more

and Occupier of an hazardous factory shall constitute a SafetyCommittee where matters relating to Safety shall be

discussed periodically and measures taken for correction

The Occupier of an hazardous factory or factory involving

dangerous operation shall carry out pre and periodical medicalexamination of his workers

The Occupier of a hazardous factory shall conduct internaland external safety audit periodically

Contd.


22/84

RESPONSIBILITY OF FACTORY MANAGER

The Factory Manager who is appointed by theOCCUPIERfor the working of the factory for the purpose

ofFactories Act and Rules is equally responsible in the face

of Law.

If the person designated as Factory Manager does notmanage the factory, any person found acting as Manager is

deemed to be the Factory Manager for the purpose of Law.

If no such person is found, the OCCUPIER shall bedeemed to be the Factory Manager.

Contd.


23/84

To submit notice of accident anddangerous occurrences to the

concerned authorities

To notify occupational disease ifdetected to the concerned

authorities

To maintain statutory records andregisters

Contd.

Specific responsibility of Factory Manager


24/84

The Inspector may within the locallimits for which he is appointed

Enter any place which he has reason to believe to be used as a factory

Make examination of the plant, machinery, article or substance to ascertain

status of provisions made under the Act and Rules

Enquire into any accident or dangerous occurrences, take statement of any

person for such enquiry

Require production of any register or document relating to the factory

Seize or take copies of any documents

Direct the occupier for compliance of provisions of the Statute in respect to

safety, health and welfare of persons

File prosecution in the Court of Law against Occupier, Manager or any person

associated with manufacturing process for contravention ofsafety Statute


25/84

Plant inspection


26/84

BOILER INSPECTOR inspecting tubes inside a boiler

C d


27/84

LICENSING AND REGISTRATION

The Occupier shall at least fifteen days before he begins to useany premises as a factory shall apply for registration and grant of

licence along with followings:

- Application in Form No.2 for registration and grant of licence

- Fees for registration of factory in shape of treasury chalan as perfee schedule

- Consent to operate issued by Orissa State Pollution ControlBoard in case of a polluting factory

- Safety policy of the factoryN.B.-

The licence is issued for a particular manufacturing process

indicating the maximum number of persons and installed power

which shall remain valid till 31st day of December of the year.

Contd.

C d


28/84

Contd.

RENEWAL OF LICENCE

The Occupier shall apply for renewal of licence on orbefore 31st October of each year along with

- Application in Form No.2 duly signed by the Occupierand Manager

- Renewal fee equal to licence fee paid in shape of treasurychalan

- Any application for renewal received between 1st ofNovember and 31st December shall require payment of 25%

extra fee towards penalty

- Any application for renewal received after 31st Decembershall require payment of 100% extra fee towards penal fee

N.B.:- The occupier shall have the option to apply for renewal of licence for a term

of five consecutive calendar years with five times of usual licence fee in vogue.

C d


29/84

Contd.

REFUSAL OF LICENCE

The Chief Inspector may refuse the renewal of licence on theground that the applicant has been guilty of repeated

contraventions of safety provisions of the Act or Rules or both or

the applicant has obtained the licence by fraud or by

misrepresentation :

Provided that before refusing any licence, the applicant shall begiven an opportunity to show causes as to why the licence shallnot be refused.

C td


30/84

Contd.

REVOCATION OF LICENCE

The Chief Inspector may, at any time before expiry of theperiod for which the licence has been granted or renewed,revoke the licence on any of the grounds as specified in

REFUSAL OF LICENCE or if ;

- there is imminent danger to life and property in the factory due

to explosive or inflammable dust, gas or fumes, and effectivemeasures in his option have not been taken to remove thedanger; and / or;

- employment of child worker below 14 years of age noticed;and / or;

- provisions prescribed in Chapter IVA of the Act are notcomplied :

Provided that before revoking the licence, the applicant shall begiven an opportunity to show cause as to why the licence shall

not be revoked.

C td


31/84

Contd.

PROHIBITION IN RUNNING OF A FACTORY

An Occupier shall not use any factory or carry on anymanufacturing process unless a licence has been issued and

is in force.

C td


32/84

Contd.

AMENDMENT OF LICENCE

No Occupier shall engage more manpower involvingexcess installed power than the licensed power. Prior

application shall be made by the Occupier for amendment

of licence. The application shall include -- Form No.2 duly filled in and signed by the Occupierand Manager

- Differential licence fee as per the fee scheduleapplicable and amendment fee of Rs.200=00 paid in

shape of treasury chalan

C td


33/84

Contd.

TRANSFER OF LICENCE

The transfer of licence from one Occupier to anotherrequires submission of following documents :

- Application in Form No.2 duly signed by the newOccupier and Manager

- Documents in support of the eligibility of newOccupier

- Fee amounting to Rs.200=00 towards transfer oflicence

C td


34/84

Contd.

APPROVAL OF EXTENSION PLAN

No registered factory shall be extended without priorapproval of extension plan. The application for extension

plan approval shall be made by the Occupier along with :

- application in Form No.1- layout plan showing the extended portion in colourcode along with plan, elevation and cross-section of

building / shed indicating plant, machinery, passage

way, ventilation, escape route, etc.

- fee @ half of licence fee or Rs.20,000=00whichever is lower paid in shape of treasury chalan


35/84

Employer to ensure health of


36/84

Employer to ensure health of

workers pertaining to

Cleanliness, Disposal of wastes andeffluents

controlling Ventilation, temperature, dust

and fumes Avoid overcrowding

Artificial humidification

Lighting

drinking water and Spittoons.

Secs. 11 to 20


37/84


38/84


39/84

APPOINTMENT OF SAFETY

OFFICER

For 1000 to 2000 workers=one s.o.

For every additional 2000 or

fraction there of=one additional s.o. Factories with hazardous or

dangerous process,for 500-1000=one s.o.

For every additional-1000 orfraction there of =one additionals.o.


40/84

Welfare Measures

Washing facilities

Facilities for storing and dryingclothing.

Facilities for sitting First-aid appliances one first aid

box not less than one for every 150

workers. Canteens when there are 250 or

more workers.


41/84

Shelters, rest rooms and lunch

rooms when there are 150 or more

workers. Crches when there are 30 or

more women workers.

Welfare officer when there are 500or more workers


42/84

Working Hours, Spread Over &

Overtime of Adult workers

Weekly hours not more than 48.

Daily hours, not more than 9 hours.

Intervals for rest at least hour onworking for 5 hours.

Spread over not more than 10hours.


43/84

Extra wages for overtime ,doublethan normal rate of wages.

Restrictions on employment ofwomen before 6AM and beyond 7PM.

Overlapping shifts prohibited.

Secs. 51, 54 to 56, 59 & 60

Contd.


44/84

Contd.

Overtime wages

A worker is entitled for overtime wages double his normal

wages for the hours of work exceeding 09 hours in a day or 48

hours in a week, subject to condition that

- the total number of hours of work in a week including

overtime do not exceed sixty hours

- the total number of hours of over time do not exceed fiftyhours in a quarter

Every worker having worked for 240 days or more in acalendar year is entitled for leave with wages in the subsequent

year @ one day for every twenty days work performed during

the previous year

Annual leave with wages


45/84

Employment of Young Persons

Prohibition of employment of youngchildren e.g. 14 years.

Non-adult workers to carry tokens e.g.

certificate of fitness.

Working hours for children not more than4 hrs. and not permitted to workduring night shift.

Secs. 51, 54 to 56, 59 & 60

Contd


46/84

Cont d.

Contd.

Occupational disease

A worker during course of his employment is likely to

contract any disease as specified in 3rd Schedule of

Factories Act.

The MANAGER of the factory is duty bound to Send

notice to the Chief Inspector of Factories forthwith in

case any notifiable occupational disease is detected by

the Medical Practitioner.

Contd


47/84

Cont d.

Notice of an accident or dangerous occurrence

Any fatal accident and dangerous occurrence shall bereported to the following authorities within 12 hours of

the occurrence

-Assistant Director of Factories and Boilers

- Director of Factories and Boilers- District Magistrate or Sub-Divisional Officer

- Local Police Station

- Relatives of the victim

The reports for other accidents where the victim isprevented from working for 48 hours or more due to the

bodily injury, to be submitted to the Asst. Director of

Factories and Boilers within 72 hours of the occurrence


48/84

OFFENCE PENALTIES

For contravention ofprovisions of the Actand Rules

On continuation ofcontravention

On contravention ofchapter IV pertaining

to safety ordangerous operations

Imprisonment up to2years or fine up toRs.1,00,000 or both

Rs.1000 per dayNot less thanRs.25000 in case ofdeath and not less

than Rs.5000 in caseof serious injury


49/84

OFFENCE PENALTY

SUBSEQUENTCONTRAVENTION OFSOME PROVISIONS.

OBSTRUCTING THEINSPECTOR

IMPRISONMENT UPTO 3 YEARS OR FINENOT LESS THAN

Rs.10,000 WHICHMAY EXTEND TORs2,00,000.

IMPRISONMENT UP

TO 6 MONTHS ORFINE UP TORs10,000OR BOTH


50/84

OFFENCE PENALTY

For contravention ofthe provisions ofSec.41B,41C,and41H pertaining to

compulsorydisclosure ofinformation of dangerby occupier, specific

responsibility ofoccupier or right ofworkers to work onimminent danger

Imprisonment up to7 years with fine upto Rs2,00,000 and oncontinuation, fine

@Rs 5000 per day.Imprisonment of 10years whencontravention

continues for oneyear


51/84

INDUSTRIAL DISPUTES ACT,

1947


52/84

Object of the Act

Provisions for investigation andsettlement of industrial disputesand for certain other purposes.


53/84


54/84

Lay off & Payment of Compensation

Conditions for Laying off

Failure, refusal or inability of anemployer to provide work due to

Shortage of coal, power or raw

material. Accumulation of stocks.

Breakdown of machinery.

Natural calamity.Sec.25-C


55/84

Prior Permission for Lay off

When there are more than 100

workmen during proceeding 12months.

Sec.25-M


56/84

Lay off Compensation

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.Sec.25-C


57/84

Prior Permission by the

Government for Retrenchment

When there are 100 or moreworkmen employed duringpreceding 12 months.

Three months notice or wagesthereto.

Form QA

Compensation @ 15 days wages. Sec. 25-N


58/84

Retrenchment of Workmen

Compensation & Conditions

Workman must have worked for 240 days.

Retrenchment compensation @ 15 days wages for

every completed year to be calculated at last drawnwages

One months notice or wages in lieu thereof.

Reasons for retrenchment

Complying with principle of last come first go.

Sending Form P to Labour Authorities.


59/84

Right of a Workman during Pendency

of Proceedings in High Court

Employer to pay last drawn wagesto workman to be reinstated, whenproceedings challenging the awardof his reinstatement are pending inthe higher Courts.

Sec.17B

Power of Labour Court to give


60/84

Power of Labour Court to give

Appropriate Relief

Labour Court/Industrial Tribunal can

Modify the punishment of dismissal

or discharge of workmen and giveappropriate relief includingreinstatement.

Sec.11A


61/84

Prohibition of unfair labour

practice either by employer or

workman or a trade union as

stipulated in fifth schedule

Both the employer and the Unioncan be punished. Sec.25-T


62/84

Closure of an Undertaking

60 days notice to the labour authorities forintended closure in Form QA. Sec.25FFA

Prior permission atleast 90 days before inForm O by the Government when there are100 or more workmen during preceding 12months.

Sec.25-O


63/84

Prohibition of Strikes & Lock Outs

Without giving to the employer notice ofstrike, as hereinafter provided, within sixweeks before striking.

Within fourteen days of giving such notice.

Before the expiry of the date of strikespecified in any such notice as aforesaid.

During the pendency of proceedings beforea Labour Court, Tribunal or NationalTribunal and two months, after theconclusion of such proceedings.


64/84


During the pendency of conciliationproceedings before:

i) a Board and seven days after theconclusion of such proceedings;

ii)before a conciliation officer and sevendays after the conclusion of suchproceedings


65/84

During the pendency of arbitrationproceedings before an arbitrator and twomonths after the conclusion of such

proceedings, where a notification has

been issued under Sub-Section(3A) ofsection 10A.

During any period in which a settlement

or award is in operation, in respect of anyof the matters covered by the settlementor award. Secs.22&23



66/84

Persons Bound by Settlement

When in the course of conciliationproceedings etc., all persons

working or joining subsequently.

Otherwise than in course ofsettlement upon the parties to thesettlement. Sec.18

P i d f O ti f


67/84

Period of Operation of

Settlements and Awards

A settlement for a period as agreedby the parties, or

Period of six months on signing ofsettlement.

An award for one year after itsenforcement. Sec.19


68/84

Offence Punishments

i) Committing unfair labourpractices

ii) Illegal strike and lock-outs

iii) Instigation etc. for illegalstrike or lock-outs.

iv) Giving financial aid to illegalstrikes and lock-outs.

vi) Breach of settlement oraward

vi) Disclosing confidentialinformation pertaining toSec.21

Imprisonment of up to 6months or with fine up toRs.3,000.

Imprisonment up to onemonth or with fine up toRs.50(Rs.1000 for lock-out) or with both.

Imprisonment up to 6months or with fine up toRs.1,000

Imprisonment for 6months or with fine up toRs.1,000

Imprisonment up to 6months or with fine.Oncontinuity of offence fineup to Rs.200 per day

Imprisonment upto 6months or with fine upto

Rs.1,000


69/84

Offence Punishment

vii) Closure without 60days notice under Sec.25FFA

viii) Contravention ofSec.33 pertaining tochange of conditions ofService during pendencyof dispute etc.

ix) When no penalty isprovided forcontravention

Imprisonment upto6 months or withfine upto Rs.5,000

Imprisonment upto6 months or fineupto Rs.1,000.

Fine upto Rs.100


70/84

STANDING ORDERS ACT, 1946

& THE RULES

Applicability of


71/84

Applicability of

the Act

Every industrial establishmentwherein 100 or more

Matters to be provided in


72/84

Matters to be provided in

Standing orders

Classification of workmen, e.g., whetherpermanent, temporary, apprentices,probationers, or badlis.

Manner of intimating to workmen periodsand hours of work, holidays, pay-daysand wage rates.

Shift working.

Attendance and late coming.


73/84

Conditions of, procedure in applying for,and the authority which may grant, leaveand holidays.

Requirement to enter premises by certaingates, and liability to search.

Closing and re-opening of sections of theindustrial establishments, and temporarystoppages of work and the right andliabilities of the employer and workmen

arising there from.


74/84

Termination of employment, andthe notice thereof to be given byemployer and workmen.

Suspension or dismissal for

misconduct, and acts or omissionswhich constitute misconduct.

Means of redressal for workmen against unfair


75/84

g

treatment or wrongful exactions by the employer or

his agents or servants.

Additional Matters

Service Record Matters relating toservice card, token tickets, certification ofservice, change of residential address ofworkers and record of age ConfirmationAge of retirement Transfer Medical aid incase of Accident ,Medical Examination,

Secrecy, Exclusive service.

Secs.2(g), 3(2) and Rule 2A


76/84

Payment of Subsistence Allowance to the

Suspended Workers

At the rate of fifty per cent, of the wageswhich the workman was entitled toimmediately proceeding the date of suchsuspension, for the first ninety days of

suspension.

At the rate of seventy-five percent of suchwages for the remaining period of suspensionif the delay in the completion of disciplinaryproceedings against such workman is notdirectly attributable to the conduct suchworkman. Sec.10-A

MINIMUM WAGES ACT 1948


77/84

MINIMUM WAGES ACT, 1948

Object of the Act

To provide for fixing minimum ratesof wages in certain employments

Minimum Rates of


78/84

Minimum Rates of

Wages

Such as Basic rates of wages etc.

Variable DA and Value of other

concessions etc. Sec. 4

Fixation of Minimum Rates of Wages


79/84

Fixation of Minimum Rates of Wages

The appropriate government to fixminimum rates of wages.

To make review at such intervals not

exceeding five years the minimum rates orso fixed and revised the minimum rates.

Government can also fix MinimumWages for

Time work Piece work at piece rate Piece work for the purpose of securing tosuch employees on a time work basis Overtime work done by employees for

piece work or time rate workers.

Overtime


80/84

Overtime

Where an employee,whose minimumwages has been fixed by the hour, by theday or by such a longer wage period,

works on any day in excess of the numberof hours constituting normal working day.

Employer shall pay for every hour or forpart of an hour so worked in excess at the

overtime rate i.e.double of the ordinaryrate of wages. Sec. 14

Fixing Hours for


81/84

Fixing Hours for

Normal Working

Shall constitute a normal workingday inclusive of one or morespecified intervals.

To provide for a day of rest in everyperiod of seven days withremuneration.

To provide for payment for work ona day of rest at a rate not less than

the overtime rate... Sec. 13

Maintenance of registers and


82/84

Maintenance of registers and

records

Register ofFines Form I Rule 21(4)

Annual Returns Form III Rule 21 (4-A)

Register for Overtime Form IV Rule 25

Register ofWagesForm X, WagesslipForm XI, Muster RollForm V Rule

26

claim application for less payment andclaim application u/s 20


83/84

Offence Punishment

For paying less thanminimum rates ofwages

For contravention ofany provisionspertaining to fixinghours for normal

working day etc.Sec. 20

Imprisonment upto 6months or with fineupto Rs.500/-

Imprisonment upto 6months or with fineupto Rs.500/-


84/84

Thank You

Navin Kumar.A