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LABOUR LAWS,

STATUTORY COMPLIANCE
& MISCELLANEOUS LICENSING
(SHARING & LEARNING PROGRAMME)
20th March, 2017

Presented by:-

Pan Singh DANGWAL


Joint Manager (O&M)

SUEZ India Pvt. Ltd.


Unitech Business Park, Tower A,
2nd Floor, South City 1,
Gurgaon 122001, Haryana - INDIA
[M]: +91 9560476777
[E]: pan.singh@suez.com
INDEX FOR LABOUR LAWS PRESENTATION
Index for Labour Law Presentation

S. No. Description No. of Slides Slides from - to Rem.

1 Title & Trainer Short Title 1 Slide 01 - 01


2 Index Page 1 Slide 02 - 02
3 Origin of Labour Laws 3 Slide 03 - 05
4 Structure & Enforcement of Labour Laws in India 4 Slide 06 - 09
5 The Contract (Regulation and Abolition) Act, 1970 4 Slide 10 - 13
6 The Industrial Dispute Act, 1947 2 Slide 14 - 15
7 The Minimum Wages Act, 1948 2 Slide 16 - 17
8 The Payment of Bonus Act, 1965 3 Slide 18 - 20
9 The Payment of Gratuity Act, 1972 3 Slide 21 - 23
10 The Maternity Benefit Act, 1961 4 Slide 24 - 27
11 The Employees Provident Fund Act, 1952 7 Slide 28 - 34
12 The Employees State Insurance Act, 1948 3 Slide 35- 37
13 The Private Security Agency Act, 2005 3 Slide 38 - 40
14 The Factories Act, 1948 3 Slide 41 - 43
15 The Sexual Harrassment of Women at Workplace, 2013 5 Slide 44 - 48
16 The Employees Compensation Act, 1923 3 Slide 49 - 51
17 Questions & Answers 1 Slide 52 52
18 Thank you 1 Slide 53 - 53

2I Employment & Labour Laws


ORIGINS OF LABOUR LAWS
ORIGINS OF LABOUR LAWS
DEFINITION (NEED OF LABOUR LAWS):
The term labour means productive work especially physical work done for wages. Labour law also known as
employment law. The need of Labour Law arose due to the workers demand for better conditions, the right
to organize and the employers demands to restrict the powers of workers and to keep labour costs low.
Employers' costs can increase due to workers higher wages, or by imposing costly requirements, such as
health and safety or equal opportunities conditions. This led to a chaotic situation which required the
Intervention of Government. The labour law at any one time is therefore both the product of, and a
component of, struggles between different interests in society.
International Labour Organisation (ILO) was one of the first organizations to deal with labour issues. The
first annual conference (International Labour Conference, or ILC) began on 29th October 1919, which dealt
with hours of work in industry, unemployment, maternity protection, night work for women, minimum age etc
Purpose of labour legislation:- Labour legislation mainly deal with three crucial roles:
It establishes a legal system that facilitates productive individual and collective employment relationships,
By providing a framework within which employers, workers and their representatives can interact.
It provides a clear and constant reminder and guarantee of fundamental principles and rights at work which
have received broad social acceptance and establishes the processes.
INDTRUDOCTION OF LABOUR LAWS IN INDIA:
The law relating to labour and employment is also known as Industrial law in India. The History of Labour
Legislation in India can be traced back to the History of British Colonialism. The Factories Act was first
introduced in 1881 because of the pressure brought on the British Parliament by the textile moguls of
Manchester and Lancashire. Thus we received the first stipulation of Eight (08) Hours of work, the abolition
of Child Labour, the Restriction of Women in Night employment, and the introduction of Overtime Wages
for work beyond Eight Hours.

4I Employment & Labour Laws


EVOLUTION OF LABOUR LAWS IN INDIA
HIGHLIGHTS OF LABOUR POLICY IN INDIA: The main objectives of the Act:-
Creating New Jobs with New Social Security Schemes for workers, model Employee Employer
Relationships with Long Term Settlements. Statutory amendments for expediting & streamlining the
mechanism of Labour Judiciary. Efficient functioning of Labour Department. Modern Medical Facilities for
workers. Joint Cell of Labour & Industries Department to study changes in Laws & Rules.

IMPLEMENTATION OF LABOUR LAWS IN INDIA


The labour laws of independent India derive their origin, inspiration and strength from the below:-
partly from the views expressed by nationalist leaders during the days of national freedom struggle,
partly from the debates of the Constituent Assembly and partly from the provisions of the Constitution
partly from the International Conventions and Recommendations emerged from the United Nations.
Under the Constitution of India, Labour Law is a subject in the concurrent list where both the Central and
State Governments are competent to enact legislations. As a result, a large number of labour laws have
been enacted catering to different aspects of labour namely, occupational health, safety, employment,
training of apprentices, fixation, review and revision of minimum wages, mode of payment of wages,
payment of compensation to workmen who suffer injuries as a result of accidents or causing death or
disablement, bonded labour, contract labour, women labour and child labour, resolution and adjudication of
industrial disputes, provision of social security such as provident fund, employees state insurance, gratuity,
provision for payment of bonus, regulating the working conditions of certain specific categories of workmen
such as plantation labour, beedi workers etc.

5I Employment & Labour Laws


STRUCTURE OF LABOUR LAWS
IN INDIA
6I Employment & Labour Laws
LABOUR LAW STRUCTURE ON BASIS OF ENFORCEMENT
The process for implementation of labour & related laws can be categorized as follows:
1) Labour laws Enacted & Enforced by the Central Govt.
2) Labour laws enacted by Central Govt and enforced both by Central and State Govts.
3) Labour laws enacted by Central Govt and enforced by the State Govts.
4) Labour laws enacted & Enforced by the State Govts which apply to respective States.
1) Labour laws Enacted & Enforced by the Central Govt:-
The Employees State Insurance Act, 1948,
The Employees Provident Fund and Miscellaneous Provisions Act 1952,
The Dock Workers (Safety, Health and Welfare) Act, 1986,
The Mines Act 1952,
The Cine Workers Welfare (Cess) Act, 1981, (Act for Workers engaged in Cinema)
2) Labour Laws enacted by Central Govt and enforced both by Central and State Govts:-
The Building and Other Constructions Workers Act, 1996 (BOCW)
The Child Labour (Prohibition and Regulation) Act, 1986
The Contract Labour (Regulation and Abolition) Act, 1970
The Equal Remuneration Act, 1976, The Industrial Disputes Act, 1947
The Maternity Benefit Act, 1961, The Minimum Wages Act, 1948
The Payment of Bonus Act, 1965, The Payment of Gratuity Act, 1972
The Payment of Wages Act, 1936, The Apprentices Act, 1961
Private Security Agencies (Regulation) Act, 2005
Contd..
7I Employment & Labour Laws
STRUCTURE OF LABOUR LAW LEGISLATIONS
Labour laws enacted by Central Govt and enforced by the State Govts.
The Factories Act, 1948
The Motor Transport Workers Act, 1961
The Trade Unions Act, 1926 The Weekly Holidays Act, 1942
The Employees Compensation Act, 1923 (Formerly known as Workmens Comp. Act)
The Bonded Labour System (Abolition) Act, 1976, The Plantation Labour Act, 1951
The Sales Promotion Employees (Conditions of Service) Act, 1976
The Employment Exchange (Compulsory Notification of Vacancies) Act, 1959
The Beedi and Cigar Workers (Conditions of Employment) Act, 1966
4) Labour laws Enacted & Enforced by the State Govt (Being applicable to respective state only):-
The Delhi Hotels Act, 1949
The Jammu & Kashmir (Extension of Laws) Act, 1956
State Bank of Hydrabad Act, 1956
Manipur (Village Authorities in Hill Areas) Act, 1956
Delhi Development Act, 1957
Delhi Municipal Corporation Act, 1957
State Bank of India (Subsidiary Banks) Act, 1959
8I Employment & Labour Laws
CLASSIFICATION OF LABOUR LAWS
(COMPLIANCES & MISC. HEADS)
The LABOUR LAWS in India can be classified on basis of Compliances & Misc. Heads as well.

Laws related to Industrial Relations such as:


Trade Unions Act, 1926, Industrial Employment Standing Order Act, 1946, Industrial Disputes Act, 1947.

Laws related to Wages such as:


Payment of Wages Act, 1936, Minimum Wages Act, 1948, Payment of Bonus Act, 1965.,

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 Equality and Empowerment of Women such as:


Maternity Benefit Act, 1961, Equal Remuneration Act, 1976.

Laws related to Deprived and Disadvantaged Sections of the Society such as:
Bonded Labour System (Abolition) Act, 1976, Child Labour (Prohibition & Regulation) Act 1986,

Laws related to Social Security such as:


Employees Compensation Act, 1923., Employees State Insurance Act, 1948., Employees Provident
Fund & Miscellaneous Provisions Act, 1952., Payment of Gratuity Act, 1972
9I Employment & Labour Laws
THE CONTRACT
LABOUR (REGULATION
AND ABOLITION) ACT, 1970
Employment
10 I & Labour Laws
THE CONTRACT LABOUR (R&A) ACT, 1970
DEFINITION:-This is an act to regulate the employment of contract labour (through contractor) in certain
establishments (by the Principal Employer) and to provide for its abolition in certain circumstances and for
connected matters. The Act was enacted by Parliament in the Twenty-first Year of the Republic of India.
APPLICABILITY:- Every establishment in which 20 or more workmen are employed or were employed on
any day 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. It extends to the whole of India. In
Maharashtra the word 20 or more workmen has been substituted by 50 or more workmen (notification dtd.
05th Jan 2017).
MAJOR TERMS:-
PRINCIPAL EMPLOYER (PE):- The below can be deemed as Principal Employer:-
Any office or department of the Government or a local authority, the head of office/department or such
other officer as the Govt. may specify.
In a factory the owner or occupier of the factory (named as the manager under the Factories Act, 1948).
In a mine, the owner/or agent (named as the manager) of the mine.
In any other establishment, any person responsible for the supervision and control of the establishment.
Contractor:- A person who undertakes to produce a given result, other than a mere supply of goods, to any
establishment through contract labour or who supplies contract labour for any work of the establishment and
includes a sub-contractor.
Contract Labour: When workman is employed in connection with the work of an establishment and he is
hired through a contractor.
Recent Important Amendment
The Maharashtra Govt. issued a gazette on 05th Jan 2017, know as Contract Labour (Regulation and
Abolition) (Maharashtra Amendment) Act, 2016 in which the word 20 or more workmen has been
substituted by 50 or more workmen (in case of applicability of the Act in State Of Maharashtra).
Cont
11 I Employment & Labour Laws
THE CONTRACT LABOUR (R&A) ACT, 1970
Establishment: 1. Any office or dept. of the Govt. or a local authority, or
2. Any place where industry, trade, business, or occupation is carried on.
Workman: Any person employed in connection with the work of any establishment to do any skilled,
semiskilled or un-skilled manual, supervisory, or clerical work, whether the terms of employment be express
or implied. The Act, restricts the employment of women between 7:00pm & 6:00am.
Weekly off (Rest): After 6 days working, every labour is entitle to get one day rest (w/off). Usually it is
Sunday, but can be given on rotation basis.
PL (Privilege Leave): The calculation of PL is most likely industry, type of business related. Generally one
day PL is entitled for every twenty days of work performed by workmen during the calendar year.
Welfare and Health of Contract Labour:- These need to be provided at site: Rest Rooms, proper urinals
First-Aid Facilities.
Overtime (OT): Overtime refers to the time worked in excess of ones regular working hours which, in India,
is eight-nine hours per day and forty eight-fifty hours per week, depending upon the establishment. If
someone works for more than that regular working hours, one is eligible to get remuneration for that period
twice the normal wage.
RC (Registration Certificate): Every principal employer to which this Act applies is liable to make an
application to the registering officer in the prescribed manner for registration of the establishment.
Labour Licence: Every contractor (covered in the Act) is liable to obtain the Labour License from the Labour
Office of the area.
Labour Returns: In r/o the contractual labour (deployed at contract site) every PE - Contractor is bound to
submit Annual-Half Yearly Labour Returns.
Documentations:- Every PE and every contractor shall maintain such records and registers giving such
particulars of contract labour employed, the nature of work performed by the contract labour, the rates of
wages paid to the contract labour and such other particulars in such form as may be prescribed.

12 I Employment & Labour Laws


THE CONTRACT LABOUR (R&A) ACT, 1970
DOS AND DONTS FOR PRINCIPAL UNDER THE ACT:-
DOs
PE must obtain Registration Certificate (RC).
The invited BID must be clearly defined all statutory compliances (PF, ESI, Bonus, Gratuity, Wages etc.)
Ensure opening of Bank Accounts in r/o contractual labour, wages must be paid through Bank transfer.
Payment of Bonus once in a year to every deployed labour.
The Contractor should obtain Form-V from PE in the prescribed format.
Payment of notified Minimum Wages to the labours.
Both should submit Half Yearly / Annual Labour Return to Licensing Officer as specified in the ACT.
WC Policy must be taken in r/o employees who are not covered under ESI.
DONTs:-
Discourage employment of contract workers on permanent, perennial and regular nature of jobs.
Dont allow any contractor to work without a valid Labour License.
Never award / deploy any contract without a valid Agreement.
PE should comply with all Statutory obligation specified under the Act.
Should not employ any woman worker at night (Before 06:00 A.M. and After 07:00 P.M.).
Should not award/undertake any other job other than the license taken.
Not to employ sub-contractors unless specified by the PE in the Agreement.
Not to work beyond the number of persons mentioned in the License / Registration Certificate.
13 I Employment & Labour Laws
THE INDUSTRIAL
DISPUTES ACT, 1947
THE INDUSTRIAL DISPUTES ACT, 1947
DEFINITION: An Act to make provision for the investigation and settlement of industrial disputes, and for
certain other purposes. When issues of conflict are submitted to the management for negotiation, they take
the form of industrial disputes. In order to resolve such disputes the Act enacted. It extends to the whole of
India. The main objective of the Act is to prevent & resolve industrial disputes & Securing amity & good
relations between workers & management for common good.
MAJOR TERMS:
Industry: Means any business, trade, undertaking, manufacture or calling of employers and includes any
calling, service, employment, handicraft, or industrial occupation or avocation of workmen industrial.
Conflict: Conflict is inherent in industrial relations. Interest of labor and management usually opposes. The
prevailing unrest , work stoppages resulting from strikes or lock-outs , slowing down of production etc.
Workman: Any person (including an apprentice) employed in an industry to do any manual, unskilled,
skilled, clerical or supervisory work. Whether the terms of employment be express or implied and under the
this Act includes any such person who has been dismissed, discharged or retrenched in connection with an
industrial dispute or whose dismissal or retrenchment has led to the dispute.
Exclusions of Workman: The following are excluded as a workman- person who is employed mainly for
managerial-administrative capacity or employed in a supervisory capacity or exercises functions mainly of a
managerial nature. The workman is based on the nature of the duties performed and not the designation.
Industrial Dispute: Means any dispute or difference between employers and employers, or between
employers and workmen, or between workmen and workmen, which is connected with the employment or
non-employment or the terms of employment or with the conditions of labour or any person.
Works Committee: In the case of any establishment, employed one hundred or more workmen or have
been employed in the preceding twelve months, the appropriate Govt may by general or special order
require the employer to constitute in the prescribed manner a Works Committee consisting employers and
workmen representatives, however that the number of workmen representatives shall not be less than the
number of the employer representatives.
15 I Employment & Labour Laws
THE MINIMUM WAGES
ACT, 1948

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.

19 I Employment & Labour Laws


THE PAYMENT OF BONUS ACT, 1965
MAJOR TERMS:
Employee: Any person (other than an apprentice) employed on a monthly salary or wage to do any skilled or
unskilled manual, supervisory, managerial, technical or clerical, administrative work.
Working days:- In addition to regular working days it includes the days for which the employee: -
has been laid off under an agreement or by standing orders.
on leave with salary or wage.
absent due to temporary disablement (arising out of and during job).
on maternity leave with salary or wage during the accounting year.
Salary or Wage:-All remuneration (other than OT), of being expressed in terms of money, be payable in r/o
employment & includes D.A., but does not include
any other allowance which the employee is for the time being entitled to.
the value of any house accommodation or supply of light, water, medical.
amenity or of any service or of any concessional supply of foodgrains.
any travelling concession, any bonus, contribution to pension fund or PF.
any retrenchment compensation, gratuity, other retirement benefits.
any commission payable to the employee.

Recent Important Amendment under Bonus Act:-


The Bonus Wage Ceiling increased from Rs. 10,000.00 to Rs. 21,000.00. (Wef-01st Apr. 2014).
The minimum Bonus amount increased from Rs. 3,500.00 to Rs.7,000.00. The employer is bound to pay
bonus @ 8.33% (Basic+DA) or Rs. 7000.00 whichever is higher.

20 I Employment & Labour Laws


THE PAYMENT OF
GRATUITY ACT, 1972
THE PAYMENT OF GRATUITY ACT, 1972
DEFINITION: An act to provide for a scheme for the payment of gratuity to employees engaged in
Factories, Mines, Oilfields, Plantations, Ports, Railway Companies, Shops or Other Establishments and for
matters connected therewith or incidental thereto. This Act Extends to the whole of India except State of J&K.
Concept of Gratuity:-This is a Social Security enactment. Gratuity is derived from the word Gratuitous
which means Gift or Present. This is a retirement benefit being paid when the employee retires or leaves
the service, so that the employee can live comfortably after retirement.
Applicability: Every factory, mine, oilfield, plantation, port and railway, every shop or establishment within
the meaning of any law in which ten or more persons are employed, or were employed, on any day of the
preceding twelve months, or to such other establishments as the Central Govt. may, by notification, specify. If
once this Act has become applicable to any establishment, it shall continue to be governed by this Act even if
the number of persons employed become falls below ten.
Wages: Wages shall consist of Basic pay plus D.A. However, allowances like Bonus, Commission, HRA,
Overtime etc. are not to be considered for calculations of gratuity payable amount.
Eligibility:- Gratuity is payable to an employee who resigns after completing at least 5 years of service. For
Gratuity payment every employee is eligible irrespective of the salary.
Employee: Any Person (other than Apprentice) employed in any Establishment, Factory, Mine, Oilfield,
Plantation, Port, Railway Company or Shop, to do any Skilled, Semi-skilled or Unskilled, Manual, Supervisory,
Technical or Clerical work, whether terms of such employment are expressed or implied, and whether such
Person is Employed in a Managerial or Administrative capacity.
Gratuity is Payable on (a) Resignation (b) Termination on account of Death or Disablement due to Accident or
Disease (c) Retirement (d) Death. Normally, Gratuity is payable only after an Employee completes Five Years
of Continuous service. But In case of Death and Disablement, the condition of minimum 5 years service is
not applicable.

22 I Employment & Labour Laws


THE PAYMENT OF GRATUITY ACT, 1972
Formula for calculating Gratuity: Gratuity is payable @ 15 days wages for every completed year. If in last
year, the service is more than 6 months, it will be counted as full year for purpose of gratuity. It is applicable
only after of 5th year onwards. The general formula = 15/26*No. of service year*Last Wages drawn
In case of seasonal establishment, Gratuity is Payable @ 7 days wages for each season.
Maximum Gratuity Ceiling: The maximum tax free limit raised from 3.5 L to 10 L (wef-24th May 2010).
Compulsory Insurance for Gratuity Liability: Every Employer has to obtain an insurance in the manner
prescribed, for his Liability for payment towards the Gratuity under this Act, from the Life Insurance
Corporation of India established under the LIC of India Act or any other prescribed Insurer.
Nomination under the Act: Each Employee who has completed one year of service is required to make a
nomination for the purposes of gratuity in case of his death. There can be more than one nominee in Form
F. Nominees may be changed at any time by the employee, by giving a written notice to the employer.
Forfeiture of Gratuity: Gratuity can be forfeited where an employee has been terminated: (a) for any act,
willful omission or negligence causing any damage or loss to or destruction of any property belonging to the
employer, (b) for riotous or disorderly conduct or any act of violence on his part, (c) for any act which
constitutes an offence involving moral turpitude, provided the offence has been committed by him in the
course of his employment. However, the employer must terminate the services of the employee because of
this damage. The forfeiture can be done on three category misconduct @ (i) NIL, (ii) to the extent of loss or
damage and (iii) the whole amount of gratuity.
Recent Important Amendment (Proposals)
The Govt. has raised the maximum Tax Free Gratuity limit to Rs. 20 L in r/o Govt Employees, same has been
proposed to apply for private sector employees as well. Though official gazette yet to be issued. (as on 09 th
Mar 2017).
Though as per Act the eligibility is 5 year, but as per court verdict it can be 4 years and 240 days.

23 I Employment & Labour Laws


THE MATERNITY
BENEFIT ACT, 1961

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.

MAJOR PROPOSED AMENDMENTS IN THE ACT:


To increased the benefit period from Twelve weeks to Twenty Six Weeks (of which not more than eight
weeks shall precede the date of her expected delivery). The revision of twenty six weeks benefit has
been implemented in r/o employees covered under ESI Act.

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..

27 I Employment & Labour Laws


EMPLOYEES' PROVIDENT FUND
& MISC. PROVISION ACT', 1952
28 I Employment & Labour Laws
EMPLOYEES' PROVIDENT FUND SCHEME, 1952
DEFINITION: The EPF & MP Act, 1952 was enacted by Parliament and came into force w.e.f. 04th March,
1952. Presently, the following three schemes are in operation under the Act: Employees Provident Fund
Scheme, 1952., Employees Deposit Linked Insurance Scheme, 1976. Employees Pension Scheme, 1995.
(replacing the Family Pension Scheme, 1971). The EPFO, India, is one of the largest provident fund
institutions in the world in terms of members and volume of financial transactions.
APPLICABILITY: This Act applies to the whole India, (except Jammu & Kashmir). Every establishment
where 20 or more persons are deployed. Any establishment having less than 20 persons can be covered
voluntarily. The existing Wages ceiling limit for coverage under the Act, is Rs.15,000/- (Basic + DA) per
month.
Employee Eligibility:
Any person who is employed directly or employed through contractor.
Employees contribution up to a Salary (Basic+DA) less than Rs. 15000. (However, the employer can
deduct & deposit EPF on salary more than 15,000/-). But the Pension Fund will be calculated up to
15,000/- only (Maximum 1250/- monthly EPS can be deposited).
Interest is not given by EPFO on EPS (Employees Pension Scheme) amount.
Apprentices are not employees under the Act. Apprentices Remuneration is Stipend not wages.
Rate of Contribution:-Empl: 12% on Basic+DA, Empr: 13.36% on Basic+DA (Including Admin. charges)
Monthly Remittance of Contribution & Return of employees
Remittance of Contribution (PF Challan), for the previous month, on or before 15th of following month.
(earlier the due date was 15th + 5 days grace period). (WEF Jan16 contribution deposited in Feb16)
ECR (Electronic challan Remittance) copy with details of the employees deployed.

29 I Employment & Labour Laws


EMPLOYEES' PROVIDENT FUND SCHEME, 1952
BENEFITS:- The EPF is a vast benefitted scheme, some important summarized:-
Retirement:- Individual get lumpsum huge amount at the time of retirement from the service.
EDLI Benefit:- In case of death the family of deceased member get insurance amount from the EPFO
through their EDLI Scheme, 1971. They can get average twelve months wages (maximum 15K), multiplied by
thirty times plus 50% of the average balance in the Fund during preceding twelve month subject to a ceiling
of one lakh and fifty thousand rupees, subject to a total ceiling of six lakh rupees.
Loan:- Individual can take loan for various reason i.e. house-plot purchase/ construction, one month
hospitalization, major surgical operation & defined diseases, post metric education of children,
own/brothers'/sister's/children's marriage, repayment of home loan etc. There are different applicability and
limit for different kind on loan.
Tax benefit: Tax exemption is applicable on employees pf contribution u/s Sec 80 (C) up to 1.50 lac.
Attractive rate of interest:- The current rate of interest on PF is 8.65% (For FY 2016-2017). Earlier the
highest rate of interest was 12% (from 1989-1990 to 1999-2000).
Pension Scheme:- The scheme is applicable to members in which mainly two types of Pension is given by
EPFO namely Monthly Members Pension (being paid to member after attaining 10 years of service) & Widow
& Children Pension (Being paid to widow/widower and children after death of member).
(Pension Scheme is Explained Separately in Next Slides)
Recent Important Amendment
1. Wages Ceiling limit increased from Rs 6,500 to Rs 15000/- wef-01.09.2014 (Rs. 6500 was from 01.06.2001-31.08.2014).
2. The Empr. Contribution of 13.36% implemented wef-01.01.2015, earlier it was 13.61%.
3. Since earlier the calculation of wages and PF contributions, on three schemes, was done manually and remittance in
bank required additional time, hence 5 days grace period was allowed. Now all things are being done online instantly,
hence the grace period has been withdrawn wef Jan 16 contribution.
30 I Employment & Labour Laws
EMPLOYEES' PROVIDENT FUND SCHEME, 1952
THE EMPLOYEES' PENSION SCHEME, 1995:- THIS SCHEME COME INTO FORCE WEF 16TH NOV. 1995.

APPLICABILITY The Scheme shall apply to every employee


Who on or after the 16th Nov. 1995, becomes a member of the Provident Fund Scheme, 1952.
Who has been a member of the ceased Employees' Family Pension Scheme, 1971.
Who has been a member of the Provident Funds of factories and other exempted establishments.
A member shall continue to be member till he attains the age of 58 years or he avails the withdrawal benefit.
If any member resigned from the job and remain unemployed for 60 days and willing to withdraw his EPF, but
want to continue as EPS (Pension) member, he can apply for Scheme Certificate (which indicates the
pensionable service, the pensionable salary and the amount of pension due on the date of exit from the
employment). If he/she is subsequently employed in an establishment coverable under this Scheme, the earlier
service, as per the certificate, shall be included for pension along with the fresh pensionable service.
MEMBERS PENSION (Service after 16th Nov. 1995):- This is applicable, If the member has rendered
eligible 10 years service or more and retires on attaining the age of 58 years. The Formula is:-
THE PENSION CALCULATION IS AS FELLOW:- = Pensionable salary X Pensionable service
70

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.

RECENT IMPORTANT AMENDMENT:-


Two year weightage of service (in calculation of Pension) to the members with 20 or more
years of Pensionable Service. (This includes the service perior to 16th Nove 1995 as well).
The minimum monthly members pension shall be Rs. 1000/- (One Thousand).
The EDLI benefit increased to a maximum of Rs. 6 Lacs wef-24.05.16

32 I Employment & Labour Laws


EMPLOYEES' PROVIDENT FUND SCHEME, 1952, THE
EMPLOYEES' PENSION SCHEME, 1995
MAJOR TERMS:-
Excluded Employee:- The below mention to be treated as Excluded Employee.
(i) an employee who, withdrew the full amount of his Fund.
(ii) whose pay at the time (entitlement of become a member), exceeds Rs. 15000/- per month.
Family:- The below mentioned are defined as family:-
(i) In the case of a male member, his wife, his children, whether married or unmarried, his dependent
parents and his deceased sons widow and children.
(ii) In the case of a female member, her husband, children, whether married or unmarried, her
dependent parents, her husbands dependent parents and deceased sons widow and children.
Pensionable Service:- Service for which contributions have been received or are receivable.
Pensionable Salary:- Average monthly pay of the contributory period of service in the span of 60
months preceding the date of exit from the membership of the Employees' Pension Fund.
TDS on PF:- In case PF withdraw amount is more than Rs. 50,000, and the employee has worked
less than five years, the govt has notified TDS will be deducted at the rate of 10% provided PAN is
submitted. However, in case Form 15G (below 60 years) or 15H (above 60 years) is submitted by
the member, then TDS is not deducted. These forms are to declare that their income would not be
taxable after receiving payment of their PF accumulations from EPFO. TDS is deducted at the
maximum marginal rate of 34.608 % if PAN not submitted.
Cont..
33 I Employment & Labour Laws
EMPLOYEES' PROVIDENT FUND SCHEME, 1952, THE
EMPLOYEES' PENSION SCHEME, 1995
VPF - Voluntary Provident Fund:- The voluntary provident fund scheme is an extension of the EPF where
the applicants can invest above the 12% contribution that applies to their traditional EPF accounts. It is a
version of the traditional provident fund saving scheme wherein the subscriber periodically assign a specific
amount to his/her provident fund, voluntarily, as part of his/her VPF contribution. VPF helps the subscriber
with a sizable savings portfolio and provide a long term savings option for those big life milestones or other
planned financial contingencies. In recent times, Voluntary Provident Fund in India has proved to be quite a
popular savings instrument, especially amongst the employed sections of the society.
Benefits of Voluntary Provident Fund:- Safe Investment Option, Simple to Apply, High Rate of Interest, Potent
Saving Fund, Tax Savings, Easily Transferable.

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).

Settlement of Claims (Without employers Attestation).

Introduction of New Declaration Form (Form 11 ).

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.

34 I Employment & Labour Laws


EMPLOYEES'
STATE INSURANCE ACT
1948

35 I Employment & Labour Laws


EMPLOYEES' STATE INSURANCE ACT 1948
DEFINITION:- ESI Scheme is a self-financing, integrated and health insurance scheme. The scheme is
enacted to provide Social Security to workers and their dependents. This is to provide certain benefits to
employees in case of contingencies like sickness, maternity and employment injury, and Death or
Disablement due to an employment injury or Occupational hazard).
ESIC is an autonomous corporation under Ministry of Labour and Employment. It can acquire movable and
immovable property. The corporation can set up hospitals either independently or in collaboration with state
govt. or other private entities, but most of the dispensaries and hospitals are run by concerned state govts.
APPLICABILITY:-
Factories/Establishment using power and Employing ten (10) or more persons.
Non-seasonal and non-power using factories/establishments employing twenty (20) or more persons (shops
and establishments employing 10 or more employees are coverable under the Act wef 10.02.2011).
Employees of the Factories and Establishments in receipt of wages not exceeding Rs.21000 /- Per month are
covered under the Act. Since coverage under the ESI Act is by area based notifications, the area in which
an institution is located needs to be notified for coverage in the act.
A Chartered Accountants office/firm too.
However, apprentices are not deemed to be employees under the Act.
WAGES:- All remuneration paid/payable in cash to an employee, if the terms of the contract of employment,
were fulfilled and includes any payment in r/o any period of authorized leave, lock out, strike which is not
illegal and other additional remuneration, paid at intervals not exceeding two months, but does not include :-
Any contribution paid by the employer to any pension fund or Provident Fund.
Any traveling allowance or the value of any traveling concession.
Any sum paid to defray special expenses entailed on him by the nature of his employment or
Any gratuity payable on discharge.

36 I Employment & Labour Laws


EMPLOYEES' STATE INSURANCE ACT 1948
CONTRIBUTIONS: The Scheme is primarily funded by monthly contribution raised from Insured Employees
and their employers. The contributions are payable such as:-
1. Employees Contribution =1.75%, 2.Employers Contribution=4.75%, TOTAL (1+2) = 6.50%
Employees in receipt of an average daily wage of Rs. 137/- or Less, are exempted from Payment of their share
of contribution (w.e.f. 14.06.2016), but are entitled to all social security benefits under the Scheme.
Vide notification dated 06.10.2016, reduced contribution is applicable in r/o newly covered areas for the initial
24 months of coverage. In such case it will be 1% & 3 % in r/o Empl. and Empr. contributions respectively.
CONTRIBUTION & BENEFIT PERIODS: A six month time span from 1stApr-30th Sep. & 1stOct.-31st March.
Cash benefits under the scheme are generally linked with contributions paid. The benefit period starts three
months after the closure of a contribution period.
MAJOR USED TERMS:
I.P. - Insured Person, C.P.-Contribution Period/s Two Half Yearly Contribution Period (Apr-Sep & Oct-Mar).
B.P. Benefit Period The period for which the employee/family is taking benefit/s (medical, cash,
disablement, maternity, dependents, funeral etc).
COMPLIANCES:
The Compliances under the ESI Act have been made online mandatorily over the past few years and all
employers are required to file salary details online.
All Employers have been issued unique User-Ids and Passwords to logging on the ESIC portal. For New
Registrations, a temporary user ID can be generated by the Establishment itself,
BENEFITS: Medical Benefit, Disablement Benefits, Dependents Benefit, Maternity Benefit.

Recent Important Amendment


1 The Wage Ceiling under the Act increased to Rs. 21000 wef-01.01.2017, earlier it was Rs. 15000.
2 The Maternity Benefit has been extended to Twenty Six Weeks vide notification dtd. 20.01.2017.
37 I Employment & Labour Laws
PRIVATE SECURITY
AGENCIES (REGULATION)
ACT, 2005

38 I Employment & Labour Laws


PRIVATE SECURITY AGENCIES (REGULATION) ACT, 2005
DEFINITION: An Act to provide for the regulation of private security agencies and for matters connected
therewith or incidental thereto. It extends to the whole of India except the State of Jammu and Kashmir.
In order to meet the increasing demand of security services in industrial, municipal, residential areas and
corporate sector, in recent period lot of private security agencies have been emerged (recognized and
unrecognized). The agencies have been organized by Ex-serviceman (be it from Army, Navy, Air Force,
Police, Para Military, other govt security forces etc.) and Civil people management. In order to cap the
various compliances of the security agency in a single format, the PRIVATE SECURITY AGENCIES
(REGULATION) ACT, 2005 enacted by the govt.

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.)

Private Security Agency:


A person or body of persons other than a government agency, department or organization engaged in the
business of providing private security services including training to private security guards or their
supervisor or providing private security guards to any industrial or business undertaking or a company or
any other person or property.

39 I Employment & Labour Laws


PRIVATE SEACURITY AGENCIES (REGULATION) ACT, 2005
MAJOR TERMS:-

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

40 I Employment & Labour Laws


THE FACTORIES ACT-1948

41 I Employment & Labour Laws


THE FACTORIES ACT - 1948
DEFINITION: An Act to regulate the conditions of work in manufacturing establishments coming within the
definition of the term "factory" in the Act. The first Act, in India, relating to it was passed in 1881, followed by new
Acts in 1891, 1911, 1922, 1934 and 1948. The Act of 1948 is more comprehensive than the previous Acts. It
contains detailed provisions regarding the health, safety and welfare of workers, the working hours, age of workers,
leave with pay etc. The Act is based on the provisions of the Factories Act of Great Britain passed in 1937.
Applicability:- Any premises whereon persons working with the Aid of Power without Aid of Power, wherein
Manufacturing process is being carried on. It extends to whole of India , including the State of Jammu and
Kashmir and covers all Manufacturing processes & Establishments falling within the definition Factory.
Factory:- Any premises whereon ten or more workers are working, with the aid of power, or whereon twenty or
more working, without the aid of power is treated to be as Factory. But does not include a mine, a mobile unit
belonging to the armed forces of the Union, a railway running shed or a hotel, restaurant or eating place.
Manufacturing Process : Any process for making, altering, repairing, ornamenting, finishing, packing, oiling,
washing, cleaning, breaking up, demolishing, or otherwise treating or adapting any article or substance with a
view to its use for sale, transport, delivery or disposal, or pumping oil, water, sewage or any other substance, or
generating, transforming or transmitting power, or composing types for printing, printing by letter press,
lithography, book binding, constructing, reconstructing, repairing, refitting, finishing or breaking up ships or
vessels, preserving or storing any article in cold storage.
Approval, Licensing and Registration: It is necessary to obtain a license before a factory is started. The State
Govt may make rules for the purposes of this Act.
PROVISIONS REGARDING THE HEALTH OF WORKERS:-
Cleanliness:- The floors must be cleaned and free from dirt, drainage should be provided. Inside walls,
partitions and ceilings must be repainted at least once in five years (Sec. 11).
Disposal of wastes and effluents:- The waste materials must be effectively disposed (Sec. 12).
Ventilation and Temperature:- There must be provision for adequate ventilation by the circulation of fresh air:
The temperature must be kept at a comfortable level. Hot parts of machines must be 'separated and insulated.
42 I Employment & Labour Laws
THE FACTORIES ACT - 1948
Dust and Fume:- If the manufacturing process used/gives off injurious or offensive dust and fume, proper
steps must be taken. The exhaust fumes of engines must be conducted outside the factory (Sec. 14).
Artificial humidification- In any factory in which the humidity of the air is artificially increased, the water
used for the purpose shall be taken from a public supply, other source of drinking water, or shall be effectively
purified before it is so used. The State Govt can frame rules regarding the process. (Sec. 15)
Over Crowding:-There must be no overcrowding in a factory (Sec. 16).
Lighting:-Factories must be well lighted. Effective measures must be adopted to prevent glare or formation
of shadows which might cause eyestrain (Sec. 17).
Drinking water:-Arrangements must be made to provide a sufficient supply of wholesome drinking water. All
supply points of water must be marked "drinking water". No such points shall be within 20 ft. of any latrine,
washing place etc. Factories employing more than 250 workers must cool the water during the hot weather.
PROVISIONS REGARDING THE SAFETY OF WORKERS. The below must be taken for SAFETY:-
Fencing of Machinery:- All dangerous machinery must be securely fenced, (moving parts of prime movers
and flywheels connected to every prime mover, electric generators. Etc)
Work on or near machinery in motion:- Must be carried out only by specially trained adult male workers.
Revolving machinery:-Where grinding is carried on the maximum safe working speed of every revolving
machinery connected therewith must be notified. It must be noted the safe speed is not exceeded (Sec. 30).
Protection of eyes:- Effective screen or suitable goggles shall be provided to protect the eyes of the worker
from fragments thrown off in course of any manufacturing process and from excessive light if any.-Sec. 35.
SUEZ APPLICABILITY / PREVIEW ON THE ACT:-
In O&M we have taken Factory Act License for our PPCL, Rithala, Sonia Vihar, Okhla Plants. The license
under this Act is issued by the government in the name of the occupier of the establishment. For the
above plants, the license is issued in name of DJB/PPCL. Though we make compliances under the Act.
In case where Factory License is applicable the establishment is exempted form BOCW Act.

43 I Employment & Labour Laws


THE SEXUAL HARRASSMENT OF
WOMEN AT WORKPLACE ACT, 2013
THE SEXUAL HARRASSMENT OF WOMEN ACT, 2013
DEFINITION: The Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013 is a Act in India that seeks to protect women from sexual harassment at workplace. The
Act came into force from 9 December 2013. This is an Act to provide protection against sexual harassment of
women at workplace and for the prevention and redressal of complaints of sexual harassment. The Act will ensure
that women are protected against sexual harassment at all the work places, be it in public or private.
It proposed that sexual harassment be recognized as a violation of women`s fundamental right to equality and that
all workplaces/establishment/institutions be made accountable and responsible to uphold these rights.
The Supreme Court defined sexual harassment as any unwelcome, sexually determined physical, verbal, or non-
verbal conduct. Examples included sexually suggestive remarks about women, demands for sexual favours and
sexually offensive visuals in the workplace, making sexually coloured remarks, physical contact etc.
The Act placed responsibility on employers to ensure that women should not face a hostile environment, and
prohibited intimidation or victimization, including the complainant as well as witnesses.
APPLICABILITY:- The Act extends to the whole of India. It applies on :-
1) Any department, organization, undertaking, establishment, enterprise, institution, office, unit which is
established/owned, controlled wholly/substantially financed by funds provided by the appropriate Govt.
2) Any private sector organization, undertaking, enterprise, institution, establishment, society, trust, or service
provider carrying on commercial/professional, vocational, educational, industrial, health services or financial
activities including production, supply, sale, distribution or service, Hospitals or nursing homes.
3) Any sports institute, stadium, sports complex or competition or games venue whether residential or not used
for training, sports or other activities relating thereto.
4) Any place visited by the employee arising out of or during the course of employment including transportation
provided by the employer for undertaking such journey.
5) The Act covers a women, who is working on a dwelling place or house.
6) THE MANDATE:-Today, all workplaces in India are mandated by law to provide a safe and secure working
environment free from sexual harassment for all women.
45 I
Employment & Labour Laws
THE SEXUAL HARRASSMENT OF WOMEN ACT, 2013
ACT OF SEXUAL HARRASSMENT: The following circumstances may amount to sexual harassment:-
(i) implied or explicit promise of preferential treatment in her employment: or
(ii) implied or explicit threat of detrimental treatment in her employment; or
(iii) implied or explicit threat about her present or future employment status: or
(iv) interference with her work or creating an intimidating or offensive or hostile work environment for her; or
(v) humiliating treatment likely to affect her health or safety.
MAJOR TERMS:-
Aggrieved Women:- In relation to a workplace, a woman, of any age whether employed or not, who alleges
to have been subjected to any act of sexual harassment by the respondent, in relation to a dwelling place or
house, a woman of any age who is employed in such place or house.
Internal Complaint Committee (ICC):- Every employer is obliged to constitute an ICC through a written
order. The ICC will be composed of the following members:
1) Chairperson/Presiding Officer:-Women working at senior level as employee; if not available then nominated
from other office/units/ department/ workplace of the same employer.
2) Members (minimum):- Employees committed to the cause of women, having legal knowledge & experience.
3) Member:- From amongst NGO/associations committed to the cause of women or a person familiar with the
issue of Sexual Harassment.
Local Complaints Committee (LCC):- The District Officer will constitute an LCC in every district so as to
enable women in the unorganized sector or small establishments to work in an environment free of sexual
harassment. The LCC will receive complaints:
1) From women working in an organization having less than 10 workers.
2) When the complaint is against the employer himself.
3) From domestic workers.
Cont
46 I Employment & Labour Laws
THE SEXUAL HARRASSMENT OF WOMEN ACT, 2013
Unorganized Sector:- An enterprise (by individuals or self-employed) in which workers and engaged in the
production-sale of goods or providing service of any kind, where the number of worker is less than ten.
Sexual Harassment at Workplace Policy:- Employers/District Officers are responsible for complying with
prohibition, prevention and redress of sexual harassment. In practice, this means having a policy that:
1) Prohibits unwelcome behaviour that constitutes workplace sexual harassment.
2) Prevention of workplace sexual harassment through orientation, awareness and sensitization sessions.
3) Provides a detailed framework for redress.
Employer:- An employer refers to: 1)The head of the department, organization, undertaking, establishment,
enterprise, institution, office, branch of the Appro. Govt or local authority. 2) Any person (whether contractual
or not) responsible for the management, supervision, control of a designated workplace. 3) A person or a
household who employs or benefits from the employment of domestic worker / employees.
POLICIES AND PROCEDURES :- The process related to policies under the act comprises:-
Reporting Sexual Harassment:- The responsibilities and procedures for reporting allegations of sexual
harassment are as follows:- (1) An affected person is encouraged to report any instance of sexual harassment
to the first-line supervisor/manager, if feels uncomfortable should have the option of reporting the matter to the
HRD or OGC. (2) The individual may file a complaint of discrimination as an alternative to, or in addition to,
reporting the matter. (3) Within three working days of becoming aware of any occurrence or allegation(s) of
sexual harassment, a manager or supervisor must inform the Human Resources Director.
Conducting Fact-Finding Inquiries of Sexual Harassment:- (1) Allegations against Directors and Senior
Executive Service (SES):- The HRD will immediately inform the Chief of Staff of any allegation(s) of sexual
harassment involving any Director or SES Official. The Chief of Staff may conduct his or her internal
investigation where the circumstances warrant or may refer the matter to the Office of Equal Employment
Opportunity. (2) Allegations Against Other Persons:- HRD will arrange for an independent fact-finding inquiry or
take other appropriate action regarding allegations against persons other than those specified above.
47 I Employment & Labour Laws
THE SEXUAL HARRASSMENT OF WOMEN ACT, 2013
Responsibilities and Obligations:- All employees have specific responsibilities in this regards:-
(1) Managers and Supervisors:- In addition to being responsible for ensuring that the workplace is free from
sexual harassment, managers and supervisors must:
(a) Take immediate, appropriate steps to mitigate the alleged harassment. This may include separating the alleged
harasser from the affected person. This should be done in consultation with HRD and OGC.
(b) Within three (3) working days of becoming aware of the allegation(s), notify HRD.
(c) Inform the alleged harasser that an allegation has been made because of his or her conduct.
(d) Inform the alleged harasser that if he or she has committed the alleged offending conduct, or anything that
could be mistaken for it, that conduct should cease immediately.
(e) Periodically inform their employees that sexual harassment is prohibited conduct that will not be tolerated and
that disciplinary action, up to and including removal, will be taken against any person found to be guilty.
(2) Employees:- Each employee must: (a) Ensure that his or her conduct is not sexually offensive to other
employees, contractors, job applicants or the public.
(b) Cooperate with inquiries into complaints of alleged sexual harassment by providing information.
(c) Notify his or her immediate supervisor or higher-level management officials upon becoming aware of any
conduct or action that appears to constitute sexual harassment.
(d) Not engage in any intimidating or demeaning conduct against an affected person.
(3) Affected Person:- Any individual who believes he or she is affected by an unlawful act of sexual harassment
should do the following:
(a) Inform the alleged harasser that the conduct is unwelcome and that it should cease immediately.
(b) An affected person may report alleged harassment with or without requesting that the alleged harasser cease
the conduct, or Notifying the alleged harasser that a report will be made.
c) Document the circumstances of the alleged sexual harassment including any substance of any conversation.
(d) If the offending conduct continues after informing the alleged harasser or if the affected person chooses not to
confront the alleged harasser, the affected person should immediately report the matter to a supervisor/manager.
48 I Employment & Labour Laws
THE EMPLOYEES COMPENSATION
ACT - 1923
Employment
49 I & Labour Laws
THE EMPLOYEES COMPENSATION ACT - 1923
DEFINITION: The act was formerly known as WORKMENS COMPENSATION ACT 1923. This is an Act
to provide for the payment by certain classes of Employers to their workmen (Employee) of compensation
for injury by accident during the course of Employment. The Act is applicable all over the India & came into
force w.e.f. 01st July 1924. The Act is one of the important social security legislations. It aims at providing
financial protection to workmen and dependants by means of payment of compensation by the employers.
The Act provides Insurance for legal liability coverage for compensation to the employees for bodily injury or
death caused due to accidents / occupational diseases arising out of and in course of employment where the
employees are not eligible to be covered under ESI Act.
EMPLOYERS LIABILITY FOR COMPENSATION (ACCIDENTS) :-The employer of any establishment
covered under this Act, is required to compensate an employee:
Who has suffered an accident arising out of and in the course of his employment, resulting into (i) death, (ii)
permanent total disablement, (iii) permanent partial disablement, or (iv) temporary disablement whether total
or partial,
Who has contracted an occupational disease.
DISABLEMENT: Disablement is the loss of the earning capacity resulting from injury caused to a workman
by an accident. Disablements can be classified as:-
(a) Permanent, and (b) Temporary. It can further be classified into (i) Total, and (ii) Partial Disablement,
whether permanent or temporary is said to be total when it incapacitates a worker for all work he was capable
of doing at the time of the accident resulting in such disablement.
Total Permanent if a workman, as a result of an accident, suffers from the injury, or suffers from such
combination of injuries as would be the loss of earning capacity when totaled to one hundred per cent or
more. Disablement is said to be Partial Permanent when it reduces for all times, the earning capacity of a
workman in every employment, which he was capable of undertaking at the time of the accident. Cont..
50 I Employment & Labour Laws
THE EMPLOYEES COMPENSATION ACT - 1923
Total Temporary, when it reduces the earning capacity of a workman for all the time. Long life. Partial
Temporary, when it reduces the earning capacity of a workman for the time being and can be recovered after
certain period. The compensation payable on death from the injury, is (i) minimum of Rs.80,000 is increased
to Rs.120,000 or (ii) 50% of the monthly wages of deceased multiplied by the relevant factor.
W.C. Commissioner has the powers to award compensation for temporary disablement even though the
workman has claimed compensation for permanent disablement.
COMPENSATION AMOUNTS:-
The compensation payable on death from the injury, is (i) minimum of Rs.80,000 is increased to Rs.120,000 or
(ii) 50% of the monthly wages of deceased multiplied by the relevant factor.
the compensation payable on Permanent Total Disablement from the injury, is (i) minimum of Rs.90,000 is
increased to Rs.140,000 or (ii) 60% of the monthly wages of deceased multiplied by the relevant factor.
Clerks are now covered for compensation.
The limit of Funeral Expenses has been revised from Rs. 2,500 to Rs. 5,000.
DISALLOWANCE OF COMPENSATION: In Respect of Any Injury which does not result in the Total or
Partial Disablement of the Workman for a Period Exceeding Three (03) days. In Respect of Any injury, not
resulting in Death or Permanent Total Disablement (TPD), caused by an Accident which is directly attributable
to; (i) The Workman having been at the time thereof under the Influence of Drink or Drugs. (ii) The Willful
Disobedience of Workman to an order expressly given, or avoiding safety guidelines. (iii) The Willful Removal
or Disregard by the workman of any safety guard during On-Duty.
SUEZ APPLICABILITY / PREVIEW ON THE ACT:-
As the Act itself specified this Act is applicable for employees who are not eligible to be covered under
ESI Act. In O&M plants where the wages of any employee (third party personnel) exceeds the ESI Wage
Ceiling. In such case we obtain the Employees Compensation Policy which covers all risks which can
be occurred under the Act. If WC Policy is taken in r/o the deployed menpower than all compensation are
being paid by the Insurance Company.
51 I Employment & Labour Laws
Time for.

SEPARATE SHEET ATTACHED FOR Q & A

52 I Employment & Labour Laws


PAN SINGH DANGWAL
MBA (Fin.), B.Com
[M]: +91 95 604 76777 | [E]: pan.singh@suez.com

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