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STATUTORY COMPLIANCE
& MISCELLANEOUS LICENSING
(SHARING & LEARNING PROGRAMME)
20th March, 2017
Presented by:-
Laws related to Working Hours, Conditions of Service and Employment such as:
Factories Act, 1948, Plantation Labour Act, 1951, Mines Act, 1952, Contract Labour (R & A) Act, 1970,
Building & Other Construction Workers (Regulation of Employment & Conditions of Service) Act, 1996,
Building and Other Construction Workers Welfare Cess Act, 1996, Cine-Workers and Cinema Theatre
Workers (Regulation of Employment) Act, 1981,, Industrial Employment (Standing Orders) Act 1946,
Mines and Mineral (Development and Regulation Act, 1957 etc.
Laws related to Deprived and Disadvantaged Sections of the Society such as:
Bonded Labour System (Abolition) Act, 1976, Child Labour (Prohibition & Regulation) Act 1986,
Employment
16 I & Labour Laws
THE MINIMUM WAGES ACT, 1948
Definition: An Act to provide for fixing minimum rates of wages in certain employments. It extends to the
whole of India. The appropriate govt fixes minimum rates of wages. The govt. review (at intervals not
exceeding five years) the minimum rates or so fixed and revised the minimum rates.
The Minimum Wages can be vary on basis of:
Different scheduled employments.
Different classes of work in the same scheduled employment.
Adults, adolescents, children and apprentices.
Different localities.
Procedure for fixing and revising minimum wages: In fixing minimum rates of wages in r/o any
scheduled employment or in revising minimum rates of wages, the appropriate Govt. shall either appoint as
many committees as it considers necessary and advise it in r/o such fixation or revision or by notification of
Gazette, publish its proposals for the information of persons and specify a date.
Appropriate Government: In relation to any scheduled employment carried on by or under the authority of
the Central Govt., a railway administration, a mine, oilfield or major port, any corporation established by
(Central Act), the Central Govt, and in relation to any other employment, the State Govt.
Cost of Living Index Number: The index number ascertained and declared by the competent authority by
notification in the Gazette to be the cost of living index number applicable to employees in such
employment.
WAGES: All remuneration (expressed in terms of money) payable to a person, but does not include:-
value of any house-accommodation, supply of light, water, medical attendance, other amenity/service
excluded by general / special order of the appropriate Govt.
contribution towards any Pension Fund/PF or under any social ins. scheme.
any travelling allowance or the value of any travelling concession;
Payment to person towards defray special expenses entailed on him by the nature of his employment.
Amount of any gratuity payable on discharge.
17 I Employment & Labour Laws
THE PAYMENT OF BONUS
ACT, 1965
Employment
18 I & Labour Laws
THE PAYMENT OF BONUS ACT, 1965
DEFINITION: An Act to provide for the payment of bonus to persons employed in certain establishments on
the basis of profits or on the basis of production or productivity and for matters connected.
CONCEPT OF BONUS: Bonus is a reward for good work or share of profit of the unit where the employee is
working. The practice of Bonus in India appears to have originated during 1st World War when certain textile
mills granted 10% of wages as War Bonus to their workers in 1917.
APPLICABILITY: To any Factory employing 10 or more persons where work is carried out with Power & also
to Other Establishments (established for purpose of profit) employing 20 or More persons. This Act extends to
the whole of India, wef-1965.
ELIGIBILITY: Every employee of wages upto Rs. 21000/-, shall be entitled for Bonus if the employee has
worked for not less than thirty working days in that year.
PAYMENT PERIOD: Bonus should be paid within a period of eight months of closing of the accounting year:
DISQUALIFICATION FOR BONUS: An Employee can be disqualified from receiving the Bonus under this Act,
if he is Dismissed from service for Fraud, Riotous or Violent Behavior while on the Premises of the
Establishment, or Theft, Misappropriation or Sabotage of any Property of the Establishment.
CALCULATION: Thought in general Bonus is calculated @ 8.33% of the annual earned wages. But
minimum Bonus should be paid Rs. Seven Thousand or the Minimum Wage for the employment, as fixed by
the Govt, whichever is higher. However, the company can pay higher Bonus as per company policy.
POWER OF EXEMPTION : If the appropriate Govt, having regard to the financial position and other relevant
circumstances of any establishment, is of opinion that it will not be in public interest to apply all or any of the
provisions of this Act, it may, by notification in the Official Gazette, exempt for a specified period (subject to
such conditions as it may think fit), such establishment from all or any of the provisions of this Act.
Employment
24 I & Labour Laws
THE MATERNITY BENEFIT ACT, 1961
DEFINITION: An Act to regulate the employment of women in certain establishments for certain periods
before and after child-birth and to provide for maternity and other benefits.
OBJECTIVE: The Maternity Benefit Act is provided to protect the dignity of motherhood by providing
the complete health care to the women & her child, when the woman is not able to perform her duty due
to her health condition. In the modern world, as the participation of women employees is growing, so the
need of the maternity & other benefits are common.
GUIDELINES: The woman should inform her employer (Manager/HR) Ten weeks before the date of
her expected delivery. She may ask the Employer to give her light work for a Month. She should give
written Notice about Seven (07) weeks before the date of her delivery that she will be on Maternity Leave.
No Employer can knowingly employed a woman in his establishment during the Eight weeks following
the day of her delivery or her miscarriage. When a woman absents under the provisions of this Act, it
shall be unlawful for her Employer to Discharge or Dismiss her during or on account of such absence.
APPLICABILITY: Every establishment being a factory, mine, establishment belonging to Govt., shop
or establishment within the meaning of any law in which ten or more persons are/were employed, on any
day of the preceding twelve months. The State Govt may, with the approval of the Central Govt, after
giving two months' notice, declare that all or partial provisions of this Act shall apply also to any other
establishment. The Act extends to whole of India. This Act is not apply where the ESIC Act is
applicable.
ELIGIBILITY: No woman shall be entitled to maternity benefit unless she has actually worked in an
establishment, for a period of not less than Eighty Four days in the twelve months immediately preceding
the date of her expected delivery.
DOCUMENTS (Registers): Every employer shall prepare and maintain such registers, records and
muster-rolls and in such manner as may be prescribed.
25 I Employment & Labour Laws
THE MATERNITY BENEFIT ACT, 1961
BENEFITS UNDER THE ACT:
Every woman shall be entitled for Twelve weeks payment (of which not more than six weeks shall precede
the date of her expected delivery) at the average daily wage rate (average of preceding 3 calendar months).
If a woman dies, the benefit shall be payable only for the days up to the day of her death. If the woman,
having been delivered a child, dies during her delivery or immediately after delivery, leaving behind in either
case the child, the employer is liable to pay the benefits for the entire period, but if the child also dies, then, for
the days up to the date of death of the Child.
In case of miscarriage, Six weeks leave with average pay from date of miscarriage.
Every woman delivered of a child who returns to duty after such delivery shall, in addition to the interval for
rest allowed to her, be allowed in the course of her daily work two breaks of prescribed duration for nursing the
child until the child attains the age of fifteen months.
Leave for a maximum period of one month with wages, in case of illness arising out of pregnancy, delivery,
premature birth of child, miscarriage or medical termination of pregnancy or tubectomy operation.
In case of tubectomy operation, a woman shall be 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.
Notice For Maternity Benefit:- A woman employee entitled to maternity benefit may give a notice in writing
(in the prescribed form) to her employer, stating as follows:
that her maternity benefit may be paid to her or to her nominee (to be specified in the notice);
that she will not work in any establishment during the period for which she receives maternity benefit; and
that she will be absent from work from such date (to be specified by her), which shall not be earlier than 6
weeks before the date of her expected delivery.
The notice may be given during the pregnancy or as soon as possible, after the delivery.
26 I Employment & Labour Laws
THE MATERNITY BENEFIT ACT, 1961
FORFEITURE OF MATERNITY BENEFITS.- If a woman works in any establishment after she has
been permitted by her employer to absent herself under the provisions of section 6 for any period during
such authorized absence, the employer can forfeit her claim to the maternity benefit for such period.
If the nature of work is of such nature the woman may work from home, the employer may allow her to do
so after availing the maternity benefit for such period the employer and the woman may mutually agree.
Every establishment having fifty or more employees shall have the crache facility within such distance as
may be prescribed, either separately or alongwith common facilities. The woman shall be allowed four visits
in the crache including rest allowed interval/s.
The employer shall intimate in writing and electronically to every woman at time of appointment about the
benefits available under the Act.
A woman who legally adopts a child below the age of three months or a commissioning mother shall be
entitled 12 weeks from the date child is handed over to the adopting mother or the commissioning mother,
as the case may be.
Every establishment shall intimate in writing and electronically to every woman at the time of her initial
appointment regarding every benefit available under the Act..
THE PAST SERVICE PENSION:- Those employees who were member to PF prior to 16th Nov 1995 (Pension
implementation) will be entitled to Past Service Pension as well. This is product of two factors mentioned as
Salary Factor & Service Factor (as per Table B) which are related to Salary as on 16th Nov 1995 and Total
service period at retirement age.
THE TOTAL PENSION:- The total pension is sum of Past Service Pension and Pension eligible
according to service after 16th Nov. 1995.
31 I Employment & Labour Laws
Employees' Provident Fund Scheme, 1952
Type of Pensions payable under The Employees' Pension Scheme, 1995
THE MONTHLY WIDOW/WIDOWER PENSION:- Applicable to the widow of deceased member. The
pension shall be payable upto the date of death of the widow or remarriage whichever is earlier.
MONTHLY CHILDREN PENSION:- Applicable to children of the deceased member (As per family
definition). The pension for each child shall be equal to 25 per cent of the amount admissible to the
widow/widower of the deceased member as monthly pension. Monthly children pension shall be
payable till the age of 25 years. The pension shall be admissible to maximum of two children at a time
and will run from the oldest to the youngest child in that order.
MONTHLY ORPHAN PENSION:- This pension is applicable If the deceased member is not survived
by any widow but is survived by children falling within the definition of family or if the widow pension is
not payable, the children shall be entitled to a monthly orphan pension equal to 75 per cent of the
amount of the monthly widow pension. The monthly orphan pension shall be admissible to a
maximum of 2 orphans at a time and shall run in order from the oldest to the youngest orphan.
Latest Updates:-
Withdrawal of exemption for NGOs (01.04.2015). Now NGOs also comes under preview of EPF.
EPFO Mobile Application. (Activation of UAN, Monthly remittance SMS alerts, latest updates).
All pensioners with a total service of 20 years (including Family Pension scheme 1971) will get an additional
weightage of 2 years in pensionable service.
MAJOR TERMS:-
LICENCE: Every organization who is running security agency business must obtain the license by the
appropriate government. No person shall carry on or commence the private security agency, unless he
holds a license issued under this Act:
Private Security: Security provided by a person, other than a public servant, to protect or guard any
person/ property or both (including the armored car service/s.)
Armored Car Service:- Providing secured transportation, protection and safeguarding of valuable
cargo, including the provision of cash services for automated teller machines ATMs), by means of
specially designed and constructed bullet-resistant armored vehicles and armored car guards. The
service provided by deployment of armed guards along with armored car and such other related
services.
Private Security Guard:-A person providing private security with or without arms to another person or
property or both and includes a supervisor.
License to be exhibited: Every private security agency shall exhibit its license or copy thereof in a
conspicuous place of its business.
SUEZ APPLICABILITY / PREVIEW ON THE ACT:- Our company engaged security personnel almost at
every site and offices. We must assure about the License, Wages Structure, Contract Labour Act, etc.
obligations and other Labour Laws about the security agency.
In HO we have placed contract for security and other support staff for which we have obtained RC as a
PRINCIPAL EMPLOYER. The contractor is also registered under the Act.
While placing WO at site we have to take care the same in r/o the Security Agency.
The security personnel deployed at site/Offices comes under Contract & Labour Act, as well. So the
related compliances should also be followed by the Security Agency