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Act |
To Whom it applies (Employers) |
Beneficiaries under the Act
(Employees) |
Benefits |
Other Important Issues |
Penlaties |
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Payment of Bonus Act, 1965
Salary or wage :
includes
All remuneration other than overtime and includes DA, and
retention allowances
Does not include :
i) any other allowance which the employee is for the time
being entitled to;
ii) the value of house accommodation or of supply of light,
water medical attendance or other ammenity or of any service or of any
concessional supply of foodgrains or other articles.
iii) any travelling concession
iv) any Bonus (including incentive, production and
attendance Bonus
v) any contribution paid or payable by empoyer to any
pension fund or PF
vi) any retenchment compensation Gratuity or Ex gratia
payment
vii) any commission payable to the employee. |
a) Every factory (as defined in Factories Act).
b) Every other establishment in which 20 or more persons
(less than 20 but 10 or more if app. Govt. notifies) are employed on any day
during the accounting year.
c) Special provisions with respect to certain
establishments are provided
d) Employees employed through contractors on building
operation.
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Employees other than apprentice
a) Who have worked for more than 30 days in a financial
year.
b) Having salary / wages less than Rs. 10000/-
c) For persons drawing salary between Rs. 3500/- and
Rs. 10,000/- per month, bonus will be based on salary of
Rs. 3500/- per month only. |
a) Subject to provisions:- Minimum bonus shall be 8.33% of
salary /wages earned or Rs. 100 whichever is higher .
b ) If allocable suplus as computed under the Act exceeds
the amount of minimum bonus, then bonus shall be payable at higher rate
subject to a maximum 20% of salary / wages.
c) Customary bonus paid is deductible. |
a) Computation of bonus is to be worked out as per schedules
I to IV of the Act.
b) Records in form Nos. ‘A’, ‘B’ & C’ are to be maintained.
c) Annual Return in Form ‘D’ to be filed.
d) Bonus must be paid within a period of 8 months from the
close of accounting year. |
Imprisonment upto 6 months and / or fine upto Rs.1000/- or
both |
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Payment of Gratuity Act, 1972
Wages
Includes :
i) All emoluments earned by the employee while on duty or on leave
including DA,
Does not include :
Bonus, Commission, HRA, over time and any other allowance. |
a) Every factory (as defined in factories Act) mine, oil
field, plantation port and railway company. b) Every shop or establishment
to which shop and establishment Act of a state applies in which 10 or more
persons are employed on any day of the preceding 12 months.
c) Any establishment employing 10 or more persons as may be notified by
the central Government. |
a) Any person employed on wages (other than apprentice)
b) At the time of retirement/ resignation on superannuation, an employee
should have rendered continuous service of not less than 5 years.
c) In case of death or disablement, the gratuity is payable even if he
has not completed 5 years of service. |
a) The quantam of gratuity is to be computed at the rate of
15 days wages based on the rate of wages last drawn by the employee
concerned for every completed year of service of a part thereof 6 months.
b) The total amount of gratuity payable shall not exceeds Rs. 3.5 lakhs.
c) In case where higher benefit of gratuity is available under any
gratuity scheme award or agreement, the employee will be entitled to higher
benefits. |
a) Employers other than Central Govt. or state Govt. obliged
to obtain an insurance from LIC in prescribed manner for liability for
payment of gratuity. b) Establishments to which act applies must get
registered with the controling Authority.
c) Once Act applies,it continues to apply even if employment strength
falls below 10.
d) Calculation of Gratuity Monthly salary / 26 x 15 days x No. of years |
Non payment of Gratuity payable under the Act
is punishable with imprisonment up to 2 years (minimum 6 months) and / or
fine upto Rs. 20,000/- Other contraventions / offences attract imprisonment
up to 1year and / or fine up to 10,000/-. Or both. |
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Industrial Disputes Act, 1947 Wages :
Includes: All remuneration capable of being expressed in terms of
money like
i) Basic wages, D.A. value of free food or food allowances
in lieu of whole or part of the wages, overtime, and other allowances,
ii) Value of House accommodation, supply of light and water,
medical attendance or other amenities or any service or of any concessional
supply of food grains or other articles,
iii) Value of travelling concession,
iv) Any commission payable on promotion of sales or business
or both.
Does not include:
i) Any Bonus
ii) PF, Pension or Gratuity
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Any industry carried by or under authority of any dept.of
Central / State Govt. or local authority or any other industry ( excluding
any agricultural operations, hospitals/dispe-saries, educational, scientific
research or training institutions charitable/social/philanthropic
services,khadi or village industries,activities related to defence research
automic energy and space any domeshtic services,professional concern and
co.op.society/club employing less than 10 persons. Not applicable to dispute
arising after closure of the industry.
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Any person (including apprentice) employed in any industry
to do any manual, unskilled, skilled, teaching, operational, clerical,
Supervisory work for hire,reward and includes any such persons who has been
dismissed,discharge,retrenched but does not include aperson who is employed
mainly in managerial or administrative capacity and draws more than
Rs.6500/-p.m.and persons employed in defence /police force. (Amended w.e.f.
26.6.2006).
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The Act Restricts unfair labour practices, prescribed for
regulating and governing cases of strikes, lock-out, lay-off, retrenchment
and closure in certain establishments. Consequenses of the aforesaid
eventualities are provided towards employees as well as employer.
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The Act deals with industrial Disputes between employers and
employers or between employers and workmen or between workmen and workmen
which is connected with the employment or non employment or terms of
employment or with the conditions of labour of any person.
Such disputes are dealt by the authorities prescribed under
the act.
Certain mandates :
1) Mandatory requirement in case of closure of an
undertaking :-
a) 60 days notice to the government for intended closure in
Form no. XXIV-B under Sec. 25FFA if employing more than 50 workmen but less
than 100 workmen
b) Application for prior permission of at least 90 days in
form XXIV-C to the Govt. when there are 100 or more workmen during preceding
12 months under
S25-O
2) Mandatory provision concerning retrenchment of workmen,
compensation to be paid and other conditions:
a) worman must have worked for 240 days
b) Retrenchment compensation @15 days wages per every
completed year to be calculated on last drawn wages inclusive of allowances.
c) One month notice or wages in lieu thereof
d) Reasons for retrenchment
e) Complying with principle of ‘last come first go’
f) maintenance of seniority list at least 7 days in advance.
g) Sending of notice in Form XXIV to the secretary,
Government of Maharashtra.
3) Notice of change under S.9A:-
21 days notice is required to be given by an employer to the workmen
about changing the conditions of service as provided in IV schedule in Form
XXVII.
4) Prior Permisssion for Lay off :
When there are more than 100 workmen during preceding 12 months under S.
25M
5) Prior Permission for
retrenchment :-
When there are more than 100 workmen during preceding 12
months under S. 25N |
a) Under Sec. 25Q if an employer:-
Contravens the provision of Sec. 25M (lay off without prior
permission of the Government) or Sec. 25-N (Retrenchment without permission
etc.) Imprisonment up to one month or fine
up to Rs. 1000/-
b) Under section 26 (2) if any employer commence continues
or otherwise acts in furtherance of an illegal lockout.
Imprisonment up to one month or fine upto Rs.1000/-
c) If any person commits
an unfair labour practice u/s. 25T, the Fifth schedule Imprisonment up to
six month or fine up to Rs.1000/-
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Employees Provident Funds and Miscellaneous Provisions
Act, 1952 Bacis wages :-
Includes :-
All emoluments earned while on duty on leave and holidays)
Does not include :-
Value of food consession, DA, HRA, overtime allowance, any Bonus,
Commission or similar allowance. contribution is payable on D. A. also as
per sect. 6 of the Act |
a) Every establishment which is a factory engaged in
any industry specified in Schedule I and in which 20 or more persons are
employed and
b) Any other establishment employing 20 or more persons,
whom Central Govt. may, notify.
c) Any establishment employing even less than 20 can be covered by a
specific Central Govt. notification.
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Any person who is employed for wages in any kind of work of
an establishment or employed through contractor in or in connection with the
work of an establishment and whose wages do not exceed Rs. 6,500/- p.m.
However, an employee covered under the Act will continue to be covered under
the Act even if his wages exceed Rs. 6,500/- p.m. but will continue to get
benefits as if his wages were Rs. 6,500/- p.m.
In case of International workers PF is applicabale on entire
salary. As per notification dated 1st Oct, 2008. |
Employees covered enjoy a modicum of Social Security in the
form of an unattachable, unwithdrawable (except in severely restricted
circumstances like buying homes, marriage / death in family etc.) financial
nest egg to which employees and employers contribute equally throughout the
covered person’s employment
This sum is payable normally on retirement or death |
a) Once the Act applies it continues to apply even if
employment strength falls below 20.
b) Periodical returns have to be filed
under the Act.
c) Inspection Note book has to be maintained
d) The Employees’ pension scheme 1995 also applies w.e.f.
16.11.1995 |
Liable to be arrested without warrant. being a congnisable
offence Defaults by employer in paying contributions or inspection /
administration charge attract imprisonment upto 3 years and fines upto
Rs. 10,000/-. If offence is repeated, imprisonment extend to 5 years but not
less than 2 years in addition to fine of Rs. 25,000/- For any retrospective
application, all dues have to be paid by employer with damages upto 100% of
arrears. |
The Workmen’s Compensation
Act, 1923.Wages :-
Wages Include:
Any Privilege or benefit which is being capable of estimated in money,
other than travelling allowance or the value of travelling concession or a
contribution paid by the employer of a workman towards any pension or PF or
a sum paid to a workman to cover any special expenses entailed on him by the
nature of his employment. |
a) Employer includes any person whether incorporated or not
and any agent of employer and when services are temporarily lent or let on
hire to anotherperson, then means such other person. |
Any workman who is injured by accident arising out of and in
the course of his employment, or any workman, employed in specified list of
employment, contracts any disease specified therein as an occupational
disease peculiar to that occupation.
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Amount of compensation payable by the employer will be
a) Where death results from injury, 50% of monthly Wages x relevant factor
or Rs. 80,000/- whichever is more.
b) Where permanent total disablement results from injury 60%
of monthly Wages x relevant factor or Rs. 90,000/-whichever is more
c) Relevant factor, which is dependent upon age
of employee, ranges from 228.54 to 99.37.
If the monthly wages are more than Rs. 4000/- for the purpose of the
above calculation it is restricted to Rs. 4000/- |
a) Any contract by a worker waiving his right to
be compensated under this Act is null and void.
b) The intention of the Legislature and the circumstances
under which law was enacted is to be seen. It is interpreted in favour of
the weak.
c) Notice book is to be maintained. A statement, report and
a return is to be filed when applicable
d) In case of fatal accident, payment of compensation to the
dependent of a workman is to be made through Commissioner of Workmen’s
Compensation |
Compensation should be paid early – delay beyond 1 month
attract interest @ 12% p.a. and penalty of up to 50% of the compensation.
Certain other offences attract fine up to Rs. 5,000/-. |
The Employees’ State Insurance
Act, 1948.Wages :
include :
i) All remuneration paid or payable in cash to
the employee including payment in respect of period of authorised leave,
lock-out, strike which is not illegal or lay-off
ii) Other additional remuneration paid at interval not
exceeding 2 months
Does not include :
i) Contribution to PF, Pension or Gratuity payable on
discharge,
ii) Any travelling allowances or value of any travelling
concession,
iii) Sums to be defray special expenses by nature of
employment. |
a) All factories excluding seasonal factories
i) employing 10 or more persons if working with power.
ii) employing 20 or more persons if working without power.
b) Shops employing 20 or more persons.
c) Any establishment specially notified by the Government.
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a ) Any person employed for wages (up to Rs.10000/- w.e.f.
1.10.2006) in or in connection with the work of a factory or establishment
and
b) Any person who is directly employed by the employer in a
factory or through is agent on work which is ordinarily part of the work of
the factory or incidental to pupose of the factory.
c) Rate of contribution of the wages:
For Employer - 4.75%
For Employee - 1.75%
d) Contribution period :- 1st April to 30th September 1st
October to 31st March
e) Benefit period 1st January to 30th June/ 1st july to 31st
December
f) Date of submission of return :- within 42 days from the
end of contribution period.
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a) The following benefits are provided Sickness benefit,
maternity, disablement, dependent, medical, and funeral expenses
Rehabilitation allowance Cannot receive 2 benefits for same period.
b) Free medical treatment is offered. to employees and
his family at hospital & dispensaries run by ESI Corporation
c) During sickness, an employee will receive wages as per
standard benefit rate shown in the table.
d) Maternity benefits for 12 weeks of which not more than 6
weeks should be preceding confinement
e) Injury during / in course of employment resulting in
temp. / permanent disablement entitles covered employee to regular pay.
f) Death during the course of employment entitles dependents
to regular payment
g) One time payment of Rs. 2,500/- to help meet funeral
expenses
h) Unemployment allowance to a member who has contributed
minimum period of 5 years prior to loss of employment.
i) Payable till re-employed elsewhere (maximum 12 months
period) |
a) Once the Act applies it continues to apply even if
employment strength falls below 20 / 10
b) Register of employees is to be maintained Form 6
(Regulation 32)
c) Reports and Returns have to be filled as applicable.
As per notification dated 11.03.2008 employer employing 40 and more
employees have to append a certificied by C. A in revised format of return.
In case of below 40 employees certificate by employer.
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Under S.39 (5) (a) if the principal employer does not pay
any contribution on the due date :-
Payment of simple interest @12% p.a. or higher rate till
date of actual payment Interest recoverable as arrears of land revenue under
section 45-C
to 45-I
For varoius offences : An employer may be punished with fine
from Rs. 2000/- to
Rs. 25000/- and / or imprisonment from 6 months to 5 years
On failure by an employer to pay his contribution the ESIC
can recover the same as an arrear of land revenue.
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The employee’s Pension Scheme, 1995. |
Employees who :
i) have been members of the Employees Pention Scheme,
1971.
ii) On or after 16.11.95 become members of employees P.F.
Scheme, 1952.
iii) who have been members of the employees P. F. Scheme,
1952 opt to join within 6 months from 16.11.1995. |
a) Members
b) Heirs will be paid the pension as per the Scheme provided
in the Rules. |
a ) To members - Superannuation pension, retiring pension or
permanent total disablement pension.
b ) To heirs - widow or widowers pension, children pension
or orphan pension. Guardian pension, Nominee pension As per the
scheme provided in the rules. |
Benificial Legislation |
Imprisonment up to one year. Fine upto Rs. 5000/- or both
for the defaulter. |
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Minimum Wages Act, 1948. Wages :
Includes :- All Remuneration
being expressed in terms of money including
HRA - Does Not Include :-
i) Value of House Accommdation supply of light, water, medical
attendance.
ii) any other amenity or any service, excluded by an order of the
Appropriate Government.
iii) any travelling allowance or any value of travelling concession.
iv) any sum paid to defray special expenses entitled due to nature of
employment
v) any Gratuity payable on discharge |
Any person who employs directly or through another
person, wheather for himself or for any other person employes one or more
employees in any scheduld employment in respect of which minimum rates of
wages have been fixed under this Act. |
Any person who is employed for hire/reward to do any work in
a scheduled employment and includes an outdoor worker to whom any articles
or materials are given for doing some work either at home / any other
premises. |
The Act prescribes the minimum rates of wages payable to
employees for different scheduled employment, for different class or work
and for adults, adolescents, children and apprentices depending upon
different localities, for one or more wage periods; viz. by hour, by the
day, month or other large period. |
a ) Register of wages to be maintained at workspot in
prescribed forms. Such records to be preserved for 3 years from the time of
last entry made therein. b ) Normal working day prescribed under the Act
is 9 hours.
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Imprisonment up to 5 years and / or fine up to Rs.
10000/- is imposable for contravention or both |
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Payment of Wages Act, 1936. Wages
a ) Includes :-
i) All remuneration by way of salary or allowance capable of being
expressed in terms of money.
ii) Payable under any Award or Settlement.
iii) On account of overtime, holidays, leave, production, attendance,
bonus etc.
iv) Payable by reason of termination which dose not provide for the time
within which the payment is to be made.
v) To which the person employed is entitled under any scheme framed
hereunder any law for the time being in force.
b ) Dose Not Include
i) Bonus (wheather under a scheme of profit sharing or otherwise) which
dosen’t form part of remuneration payable under the terms of employment or
which is not payable under the Award
ii) Value of house accomadation or of light, water, medical attendance or
other amount or of any services excluded from the competition of wages by
the Government.
iii) P. F. and Gratuity
iv) Travelling allowance
v) Any sum paid to defray special expense due to nature of his employment |
a) Every person employed in any factory, upon any railway or
through sub-contractor in a railway and a person employed in an Industrial
or other establishment b) The State Government may by notification
extend the provision to any class persons employed in any establishment or
class of establishments.
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Every person who is employed in any of the above mentioned
etablishments and who is drawing less than
Rs. 6,500/- per month. (Amended w.e.f. 11.08.2005) |
The Act provides for –
a ) Regular and timely payment of wages. Specified day after last day of
the wages period in respect of which wages are payable are :
i) 7 days for Railways, Factory, Industrial or other establishment
employing less than 1,000 workers
ii) 10 days for other than persons stated in (I) above
iii) In case of termination of employment, the wages must be paid before
the expiry of the second working day from the day of termination
b ) Prevents unauthorised deductions being made from wages and charges of
arbitrary fines.
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a) Wages to be paid in current coin of currency.
Written authorisation of employee necessary for payment by cheque /credit to
Bank A/c.
b) Deductions cannot exceed 75% of wages for payment to co-op. Societies,
and 50% in other cases.
c) Registers/records in Form No. I, II, III & IV to be kept for 3 years
from last entry (If muster role cum wage register in form
No. II as per maharashtra Minimum wages rule is maintained the above
registers are not required to be maintain).
AMENDMENTS
Section 1, sub-section ( 6 ): "One thousand six hundred rupees" is
amended to "Six thousand five hundred rupees"
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Penalties are from Rs.1000/- to 22,500/- Repeat
offences attract 1 to 6 months imprisonment |
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The Bombay Shops & Establishment Act,1948 |
a ) State of Maharashtra, Local Areas given in Schedule I,
Areas where C.P. and Berar and Hyderabad Shops and Establisments Act were
applicable before the amending Act of 1960. b ) Local areas having
population more than / less than 25,000 by Notification ( Section 1 )
c ) Any class of establishment or persons by Notification (Section 5 )
Non-Applicability :
a ) Certain provisions of the Act in column III of Sch. II to
Establishments in Column II
( Section 4 )
b ) Factories to which the Factories Act is applicable. ( Section 17 )
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All Employees
MINIMUM WAGES TO BE PAID TO EMPLOYEES
W.E.F. 20.07.2004
( Basic wages ) Skilled :
Rs. 3330/- ( Zone I )
Rs. 3230/- ( Zone II )
Rs. 2930/- ( Zone III )
Semi-skilled
Rs. 3230/- ( Zone I )
Rs. 3130/- ( Zone II )
Rs. 2830/- ( Zone III )
Unskilled
Rs. 3130/- ( Zone I )
Rs. 3030/- ( Zone II )
Rs. 2730/- ( Zone III )
Plus the Special allowance as may be declared by the
Government of Maharashtra Special Allowance from 1.7.2009 to 31.12.2009.
Rs. 955.30 for all categories and all Zones.
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a) Right to leave if more than 3 months @ 5 days for 60 days
work and 21 days for 240 days work. 26th Jan, 1st May, 15th Aug. and 2nd
Oct. are paid holidays.
(Section 35 : Rule II - A ).b) Leave pay @ equal to average daily wage
for days actually worked in 3 months (Section 36).
c) Overtime wages @ twice the ordinery rate for additional work. (
Section 63 ).
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Obligation and liability of employer a) Change in
particular of establishments to be communicated to inspector within 15 days
for No. of employees and 30 days for other changes. ( Section 8 : Rule 8 :
Sch II : Form E )
b) Closing to be notified within 10 days to inspector ( Section 9 )
c) Register and other records
to be produced on demand
(Section 51).
d) Maintainance of registers and records and display of notice.
(Section 62 : Rule 20 : Form H-N)
e) For termination 30 days notice or wages in lieu of such notice who has
completed 1 year or more and 14 days noticeor wage in lieu of such notice
who has completed 3 months or more.
f ) Not to permit employee to work when he is on leave / or on holidays (
Section 65 ).
g ) Identity cards to employees in residential hotels etc. (Section 25).
Commercial establishment can be opened not earlier than
8-30 a.m. and closed not later than 9-30 p.m.
Limit of overtime work : The maximum limit for working overtime
shall not exceed three hours and the employer may, for the purpose of the
work beyond the said overtime hours, engage additional number of employees. |
a) Contravention of certain provisions of the act - for each
offence - fine from Rs.1000 /- to 5000 /-
b ) Continued contravention of Section 7( 1 ) after 10 days of conviction
- fine of Rs. 100/- every day.
c ) Contravention of Section 12 - fine of Rs. 1000/- to Rs. 5000/-
d ) Employee Contravening Section 18( 2 ) 24, 31 and 65 - fine of Rs.
500/- to Rs. 5000/- for each offence.
e ) False entries by employer / manager in Registers etc. – fine of
Rs.1000/- to Rs. 5000/- if both are liable then aggregate fine not to exceed
Rs. 5000/-.
f ) Commission of offence for which once convicted - fine of Rs.1000/- to
Rs.5000/-and for third conviction Rs. 1000/- to Rs. 10,000/-.
g) Penalty for wilful obstruction of Inspector Rs. 100/- to Rs. 5000/-. |
