Ground work

Task to be completed
Dear Abhishek,
Thanks for coming in for the interview, we value your time.

We had a lengthy conversation regarding your specialization and the points exchanged during the interview process.
As we informed you earlier, we are looking mainly at someone who is well adept with the HR Policies and can at the same time
be hands on at People Management. We are going through change management currently as we discussed, and we admired
your out of the box philosophy when it comes to achieving results and driving proficiency.
We think we can definitely use these skillsets in the future however since today we are in the process of implementing systems,
we need to be able to justify our decision of hiring you.

We have therefore come up with a proposition, which you can go through and consider if you like.
This entails that we want to give you a chance to prove yourself and redeem yourself as worthy of the position that
we might offer you. In order to do so, we recommend that you take a month or so to self educate and amass knowledge
regarding the laws which govern the HR Industry (specific to U.P., Rajasthan and Punjab);
to be specific labor laws, industry laws, minimum wages act, factories act etc. You don’t have to learn everything,
just be knowledgeable enough in this sector to qualify for the position opening. Once you feel you are adequately prepared,
we can meet again for a second set of interview and thereafter take a decision which might be in both our interests.

Human Resource Policies, People Management, Labor Law, Industry Law, Factories Act, Minimum Wages
Contents
 Human Resource Policies

 Labor and factory legislations in India an overview

 Basic responsibilities of an employer towards workers

 The industrial employment (standing order) act

 The Maternity benefits

 Minimum Wages

 Bonus & Gratuity

 Employees' State Insurance & Employees provident fund

 Industrial dispute and concerned authorities

 Unfair labor practices on the part of employers

 Unfair labor practices on the part of employees including prohibition of strikes and lock outs
Human Resource Policies
Human resource policies are continuing guidelines on the approach of which an organization intends to adopt in managing its people. The
Human resource management consists of deliberate organizational activities designed to improve employee productivity and administration
through such means as recruitment, compensation, performance, evaluation, training, record keeping and compliance. HR policies should be
developed for key HR management functions covering eight commonly accepted responsibilities.
Labor Health, H.R. Human
Compensation and Employment Workplace Training and
manageme safety and information resource
benefits practices diversity development
nt security systems research

Refers to the An intersection

A safe work
An integrated variety of of human
Focused on environment is Methodology Emphasize on
set of differences resources and
employee a productive the
processes between information For evaluating
compensation Hiring Right one. No matter improvement of
that a individuals. technology the HR practices
and benefits Resources and the size or type performance of
company Diversity not through HR soft and
policy-making. take compete of the business, individuals,
uses to only includes ware. This performance
optimize the care of hire to workplace which
Can be tangible how individuals allows H.R. with the help of
productivity retire cycle safety eventually helps
and intangible identify Activities and real life case
of its procedures are a company to
both themselves but processes to studies
employees a necessity for improve.
also how others occur
all staff
perceive them electronically.
Labor and factory legislations in India an overview
The Factories act 1948 makes it obligatory on the part of the employer to provide for the health, safety and welfare of the
workers employed and applies to every factory wherein 10 or more workers are or were employed, if run with power and 20
or more workers are or were employed, if run without power and can be understand with below points.

Hours of work Overtime Weekly Women

Childe Labor Leaves
(Adult) Wages Holiday Employment

Not to exceed 48 1 day for every 20

No woman shall be
hours in a week or 9 days, provided 240
employed for more
hours in a day days of work during
No work for more than than 9 hours or in the
however can be given Twice the ordinary A child who has not preceding year,
10 days without a day night shifts until
exception where an rate of wages for attained the age of 15 Considering days of
of rest along with half protection of their
adult worker is overstaying at years is not permitted lay off, paid holidays
an hour break for 5 dignity and
engaged in urgent workplace to work or leaves days,
hours of work transportation from
repairs,
the factory premises Encashment of un-
But not applicable for to the nearest point of availed leave at the
supervisory staff. their residence are present rate of wages
made
Basic responsibilities of an employer towards workers

Clean Work Environment Employee Safety

 White washing at least once in every 14 months  Fencing of Machines and Moving parts of machines –
 Repainting or varnishing every 5 years spindles, gears, pulleys, belts etc
 Ensure proper disposal of wastes and effluents  Protection of eyes using screens or goggles from excessive
 Record the dates on which white washing, painting or light or infra-red or ultra violet radiations
varnishing done in a register in FORM 7  Precaution in case of Fire
 Ensure provision of sufficient number of Latrines and urinals  No woman or young person shall, unaided by another
– separate for gents and ladies person, lift, carry or move by hand or head any material or
 Ensure spittoons are provided at adequate places tool exceeding the maximum limit prescribed
 Ensure workplace has adequate ventilation  * Adult male 75 Kgs
 Avoid overcrowding – ensure 500 cubic feet of space for  * Adult female 30 Kgs
every worker without reference to any space which is more  * Adolescent male 30 Kgs
than 14 feet above the level of the floor of the room  * Adolescent female 20 Kgs
 Ensure proper lighting- artificial or natural or both  Safety Officer: Appoint a Safety Officer wherein 1000 or
 Ensure supply of uninterrupted supply of Drinking Water more workers are employed
 Where the no. of workers is more than 250, provision for
cold water in every lunch room, rest room and canteen shall
be ensured
Basic responsibilities of an employer towards workers cntd:
Employee Welfare
 Washing facility separately for women and men
 Separate rooms for men and women for drying of clothes
 Separate rest rooms for men and women
 First Aid boxes equipped with prescribed medicines
 Ambulance room where 500 or more are employed
 Canteen for use of workers where 250 or more are employed
(150 under Plantation Labor Act)
 Lunch room where 150 or more are employed
 Crèches where 30 or more women are employed
 Appoint WELFARE OFFICER (S) where 500 or more are
employed (300 under PLA)
 The duties, qualification and conditions of service of such
welfare officers shall be in accordance with the rules of the
respective State Govt.
 Notice of dangerous operations
Registers to be maintained
 Attendance Register/ Muster roll in form 25
 Register of Adult Workers in form 12
 Record of Lime washing, painting etc. in form 7
 Register of Compensatory Holidays in form 9
 Overtime Muster roll for Exempted workers in form 10
 Register of Leave with Wages in form 15
 Health Register in form 17 (in respect of persons employed in
occupations declared to be dangerous operations u/s 87)
 Register of Accidents and Dangerous Occurrences in form 26
 Particulars of Rooms in the factory in form 35
Important returns to be sent to the appropriate authorities
 Notice of accidents and dangerous occurrences resulting in death or bodily injury in form18
(similar to the one to be sent ESI Local Office under the ESI Act)
 Half yearly returns in form 22
 Annual returns in form 21
 Notice of change of Manager in form 23
 Details of closure in form 32
 Report of examination of Pressure Vessel or Plant in form 8
 Report of examination of Water sealed Gas holder in form 38
 Report of Examination of Hoist or Lift in form 41
 Certificate of Fitness for Dangerous Operations in form 39

Registers to be maintained by an employer

 Provide each employee a Leave Book- thick bound sheet- in FORM 16 (with similar entries as in Form 15)
 Provide each worker an Attendance Card in form 28 showing the particulars of employment
 Shall be substituted by Electronic cards
The industrial employment (standing order)

Definitions Significance

 Defines the terms and conditions of service between the
employer and his employees.
 Applies to every industrial establishment wherein 100 (in
some States 50)or more workers are employed
 The Act extends to the whole of India
Terms of appointment order issued to an employee cannot
circumvent the provisions of certified standing order. Therefore,
it is always desirable to get standing orders drafted and certified
as it regulates the relationship between the employer and the
employee

Standing Order drafted shall provide for

 Date on which the standing orders shall come in to force and shall remain in force
 Definitions
 Classification of workmen as Permanent, Probationer, Casual and Trainees
The Maternity benefits
The Maternity Benefit Act 1961 protects the employment of women during the time of her maternity and entitles her of a
'maternity benefit' – i.e. full paid absence from work – to take care for her child. The act is applicable to all establishments
employing 10 or more employees.
Employer's
Eligibility Responsibility Benefit
 No woman works during the six
weeks immediately following the  12 weeks leave of which not more
day of her delivery or her than 6 weeks shall precede the date
 Work of 160 days in the 12 months miscarriage of her expected delivery
immediately preceding the date of  No woman does any arduous work  The benefit to be paid @ average
delivery. during the period of ten weeks from rate of wages for the three months
 Leave days & lay offs taken as the expected date of delivery preceding her maternity leave
worked  Not to discharge or dismiss a woman  In case of miscarriage, 6 weeks leave
during her pregnancy with pay at the same rate as
applicable to maternity benefit
Minimum Wages
The Minimum Wages Act 1948 is an Act of Parliament concerning Indian labor law that sets the minimum wages that must be
paid to skilled and unskilled labors. The Indian Constitution has defined a 'living wage' that is the level of income for a worker
which will ensure a basic standard of living including good health, dignity, comfort, education and provide for any contingency.

History Objectives Features

 The initiative by Shri K.G.R .Choudhary
in 1920: set up boards for
determination of wages
 The International Labor Conference
adopted convention 26 and 30 in 1928
relating to wage fixing machinery in
trades or parts of trades
 A Minimum Wages Bill was introduced
in the Central Legislative Assembly on
11.4.46 and came into force with
effect from 15.3.48
 The Committee on Fair Wage was set
up in 1948 to provide guidelines for
wage structure
 To provide minimum wages to the
workers working in organized sector
 To stop exploitation of the workers
 To empower the government to take
steps for fixing minimum wages and to
revising it in a timely manner
 To apply this law on most of the
sections in organized sector
(scheduled employment)
 Minimum time rate of wages
 Minimum piece rate
 Guaranteed time rate
 Overtime rate for different
occupations, localities or classes of
work and for adults, adolescents,
children and apprentices
 Basic rate of wages and a cost of living
of allowances
 Basic rate of wages with or without the
cost of living allowance and the cash
value of the concessions in respect of
essential commodities supplied at
concessional rates
Minimum Wages- Important Points
 Eligible People:
• Permanent employees, contract employees, casual workers
• People on probation get fixed pay instead of minimum wages
• Trainees get stipend and not minimum wages
 Minimum wages: all remuneration capable of being paid in money terms for work done if terms of contract were fulfilled
 Consist of Basic + Dearness Allowance + House Rent Allowance
 Every 5 years, basic rates of every industry are decided by Minimum Wages Committee
 Dearness Allowance changes every six months and is decided by Government
 Minimum rates of wages may be fixed by the hour, day, month or such other larger wage period
 Payment of less than minimum wages is a punishable offence and may lead to imprisonment which may extend up to
6 months or fine which may extend up to INR 500/- or both

 Permissible deduction:

• Fines for absence from duty, damage caused to the property of the employer
• The amenities provided, like house accommodation Impotent Forms
• Recovery of advance or adjusting over payment of wages,
• Towards EPF, ESI, Labor Welfare Fund and similar deductions permitted under
• Any Act or the Standing Orders of the establishment
• For Life Insurance/ general insurance policies and Housing loan
 Bonus
The Payment of Bonus Act, 1965 provides for the payment of bonus to
persons employed in certain establishments, employing 20 or more persons,
on the basis of profits or on the basis of production or productivity and
matters connected there with
Eligibility:
• Employee whose salary/ wages does not exceed Rs 10000 per month
• who has worked in the establishment for not less than 30 days
• Not disqualified to claim bonus due to fraud, theft or any other misconduct
• Bonus of very person drawing salary between Rs 3500/- and Rs 10000/- per
month shall be calculated as if his salary were Rs 3500 pm
Calculation of working days:
• The days for which the worker has been laid off
• The days he has been on leave with pay
• The days he has been absent due to temporary disablement caused by an
employment injury
• The days a woman employee has been on maternity leave
Rate of Bonus:
• Minimum 8.33% & Maximum 20% of salary/wages
• Computation of bonus as per Schedule I to IV of the Act
• Adjust any interim bonus paid while making payment of the final bonus
The Bonus Act does not provide for any machinery to resolve disputes
relating to bonus, the Industrial Dispute Act shall be referred for this.
& Gratuity
Gratuity is a type of retirement benefit. It is a payment made with the
intention of helping an employee monetarily after his retirement and
applies to every factory, mine, plantation and other establishment
wherein 10 or more workers are employed
 Eligibility:
• Minimum five continuous years of service with the employer
• An employee is in service in a calendar year provided he has
worked for 190 days in case employee is employed below the ground
and 240 days in any other case
 Calculation of working days: Same as Bonus calculation
 Payment conditions: Gratuity is payable to an employee on termination
of his employment, on his superannuation, on his resignation, on his
death or disablement due to employment injury or disease
 Rate of gratuity: 15 days wages for every completed year of service
 Average Pay Calculation: The average pay of the monthly rated
employee shall be taken by dividing the monthly salary/ wages by 26
and not by 30
The payment of gratuity shall be forfeited in case of any damage or loss
caused by the employee to the property of the employer or/and employee
is terminated due to misconduct
 Employees' State Insurance
ESI is a self-financing social security and health insurance scheme for Indian
workers. This fund is managed by the Employees' State Insurance
Corporation (ESIC) according to rules and regulations stipulated in the ESI
Act 1948. ESIC is an autonomous corporation by a statutory creation under
Ministry of Labor and Employment, Government of India
Eligibility and application:
• Employee whose salary/ wages does not exceed Rs 25000 per month
• Applies to factories and establishments functioning in the notified area and
consisting of 10 or more employees
Contributions:
 Employees’ contribution . 1.75% of wages
 Employers’ contribution. 4.75 % of wages
Benefits:
• Medical Benefits, Sickness Benefit, Maternity Benefit,
• Disablement Benefit, Dependent benefit, Rehabilitation
Returns and records to be maintain/file:
• Form 7 (Register of Employees showing the details of Gross wages, ESI
contribution deducted, Contribution by the Employer and total for the
contribution period (six months)
• Accident book in form 15 & ESI Declaration in form 1,
• Return of declaration in form 3 & Contribution in form 6 for the
contribution period (with similar entries as in register of Form 7)
• Accident report in form 16. (similar to Form 18 to be furnished to the
Inspector of Factories and Boilers)
& Employees provident fund
The Employees' Provident Fund Organization (abbreviated to EPFO), is an
organization tasked to assist the Central Board of Trustees, a statutory
body formed by the Employees' Provident Fund and Miscellaneous
Provisions Act, 1952 and is under the administrative control of the
Ministry of Labor and Employment, Government of India
Applicability: Applies to all factories and establishments in which 20 or
more are employed
Exemption: Where employees get benefits in the nature of provident fund
or old age pension fund from the establishment which are not less favorable
than the benefits under the act
Beneficial schemes:
 Employees Provident Fund Scheme 1952
 Employees Pension Scheme 1995
 Employees Deposit Linked Insurance 1976
Membership:
 An employee at the time of joining the employment and getting wages
up to Rs.6500/- is required to become a member.
 An employee is eligible for membership of fund from the very first date
of joining a covered establishment.
Employees provident fund cntd..
Contribution, Employer’s duty & PF Benefit
Employees’ share : 12% of the Basic + DA
Employer’s contribution : 12% to be deposited as :
• 8.33% to be deposited in Pension Fund A/C No 10 and
• 3.67% to be deposited in Provident Fund A/C No 01 along with Employees’
share of 12%
Administration charges: 1.1% of the total wages/salary disbursed by deposit to
A/C No 02,
Employees Deposit Linked Insurance: 0.5% of the total wages/salary by
deposit to A/C No. 21 and
Administration of EDLI: 0.01% of the wages/ salary by deposit to A/C. No. 22
Employer to furnish information about:
(a) Ownership and names of responsible persons of the establishment.
(b) Declaration and nomination.
(c) Joining and leaving of service by the members in form 5 and form 10
respectively
(d) Form 12A with monthly challans of deposit.
(e) Form 9 for details of employees.
(f) Form 3A/6A at the end of the financial year.
(g) Any other information as may be required under Para 76 of the scheme
Provident fund benefit:
• Employer also contributes to Members’ PF @ 3.67% (1.67% in case of sick
industry - eg: beedi)
• EPFO guarantees the Employer contribution and Govt. gives a decent
interest to PF accumulations
• Member can withdraw from this accumulations to cater financial
exigencies in life - No need to refund unless misused
Pension and Death Benefit
Pension to Member
Pension to Family (on death of member)
Scheme Certificate:
• This Certificate shows the service & family details of a member
• This is issued if the member has not attained the age of 58 while leaving an
establishment and he applies for this certificate
• Member can surrender this certificate while joining another establishment
and the service stated in the certificate is added with the service he is
gaining from the new establishment.
• After attaining the age of 50 or above, the member can apply for Pension
by surrendering this scheme certificate (if total service is at least 10 years)
• This is a better choice than Withdrawal Benefit, that if a member dies
holding a valid scheme certificate, his family will get pension (Death when
NOT in service)
Withdrawal Benefit
• if not eligible for pension, member may withdraw the amount accumulated
in his pension account
• the calculation of this amount is based only on (i) Last average salary and
(ii) Service (Not based on actual amount available in Pension Fund
Account)
• No amount is taken from Member to give Pension to the Member.
Employer and Govt. contribute to Pension fund @8.33% and @1.16%
respectively
• EPFO guarantees pension to members, even if the Employer has not
contributed to Pension Fund.
• Pension calculation is similar to that of Govt. Employee
Death Benefit:
• PF, EDLI & Pension to family or Nominee
• No amount is taken from Member for EDLI, only employer contributions
• Nominee is determined as per the information submitted by member in
form-2
Industrial dispute and concerned authorities
Industrial dispute act, 1947 is an act to make provision for the investigation and settlement of industrial disputes, and for certain other purposes.
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 labor, of any person.

Authorities under this act:

 Works Committee:
 Where?: Establishments with 100 or more workers
 Members: Equal number of representatives of the Employer and Employees
 Objective: promotion of good relationship between employer and employee(s)

 Conciliation officers:
 Appointed by the appropriate Government
 Duty: Settlement of industrial disputes.
 Nature : Appointed for a specified area or for specified industries in a specified area or for one or more specified industries and either permanently or for a
limited period.

 Boards of Conciliation:
• Appointed by the appropriate Government as occasion arises for settlement of disputes.
• Board shall consist of an independent Chairman and two or four other members in equal numbers to represent the parties to the dispute

 Courts of Inquiry: Constituted by the appropriate Government as occasion arises for inquiring into any matter appearing to be connected with or relevant to
an industrial dispute

 Labor Courts: Constituted by the appropriate Govt. for the adjudication of industrial disputes relating to any matter specified in the Second Schedule and for
performing such other functions as may be assigned to them under this Act.
Industrial dispute and concerned authorities cntd..

 Tribunals: Constituted by the appropriate Govt. for the adjudication of industrial disputes relating to any matter specified in the Second Schedule or the Third
Schedule and for performing such other functions as may be assigned to them under this Act.

 National Tribunals: National Tribunals are constituted by the Central Government for the adjudication of industrial disputes which, in the
opinion of the Central Government, involve questions of national importance or are of such a nature that industrial establishments situated
in more than one State are likely to be interested in, or affected by such disputes.

Matters within the Jurisdiction of Labor Courts Matters within the Jurisdiction of Industrial Tribunals

 The propriety or legality of an order passed by an employer under  Wages, including the period and mode of payment
the standing orders
 Compensatory and other allowances
 The application and interpretation of standing order
 Hours of work and rest intervals
 Discharge or dismissal of workmen including re-instatement of, or
grant of relief to, workmen wrongfully dismissed  Leave with wages and holidays
 Withdrawal of any customary concession or privilege  Bonus, profit sharing, provident fund and gratuity
 Illegality or otherwise of a strike or lock-out; and  Shift working otherwise than in accordance with standing orders
 All matters other than those specified in the Third Schedule.  Classification by grades
 Rules of discipline
 Rationalisation
Unfair labor practices on the part of employers
1st
 Threatening workmen with discharge or dismissal, if they join a trade union
 Threatening a lock-out or closure, if a trade union is organised
 Granting wage increase to workmen at crucial periods of trade union
 An employer taking an active interest in organising a trade, union of his
workmen
 To establish employer-sponsored trade unions of workmen
 Discharging or punishing a workman, because he urged other workmen to
join or organise a trade union
 Discharging or dismissing a workman for taking part in any strike (not being
a strike which it deemed to be an illegal strike under this Act)
 Changing seniority rating of workmen because of trade union activities
 Refusing to promote workmen to higher posts on account of their trade
union activities
 Giving unmerited promotions to certain workmen with a view to creating
friction amongst other workmen
 Discharging office bearers or active members of the trade union on
account of their trade union activities
 To discharge or dismiss workmen by way of victimization
 By falsely implicating a workman in a criminal case on false or fabricated
evidence;
2nd
 To abolish the work of a regular nature being done by workmen, and to
give such work to contractors as a measure of breaking a strike
 To transfer a workman mala fide from one place to another, under the
excuse of following management policy
 To insist upon individual workmen, who are on a legal strike to sign a good
conduct bond, as a precondition to allowing them to resume work
 To show favoritism or partiality to one set of workers regardless of merit
 To discharge or discriminate against any workman for filing charges or
testifying against an employer in any enquiry or proceeding relating to any
industrial dispute
 To recruit workmen during a strike which is not an illegal strike
 Failure to implement award, settlement or agreement.
 To indulge in acts of force or violence
 To refuse to bargain collectively, in good faith with the recognised trade
unions
 Proposing or continuing a lock-out deemed to be illegal under this Act
 To employ workmen as "badlis" casuals or temporaries and to continue
them as such for years, with the object of depriving them of the status and
privileges of permanent workmen
Unfair labor practices on the part of employees including prohibition of
strikes and lock outs
Unfair 1st
 Advise, support or instigate any strike deemed to be illegal under
this Act
 Coerce workmen to join a trade union or refrain from joining any
trade union
 Picket in such a manner that non-striking workmen are physically
debarred from entering the work places
 Indulge in acts of force or violence or intimidation in connection
with a strike against non-striking workmen or against managerial
staff
 For a recognised union to refuse to bargain collectively in good
faith with the employer
 To indulge in coercive activities against certification of bargaining
representative
 To stage, encourage or instigate such forms of coercive actions as
willful "go slow", squat on the work premises or "gherao" of any
of the members of the managerial or other staff
2nd
 Not to strike without giving six weeks notice of strike and during
the pendency of any conciliation proceedings
 Not to declare lock-out without giving to the employees six weeks
notice of lock out and during the pendency of any conciliation
proceedings
 A strike or lock-out shall be illegal if it is commenced or declared
in contravention of the above
 Not to support of any illegal strike or lock-out
 To stage demonstrations at the residences of the employers or
the managerial staff members
 To motivate or indulge in willful damage to employer's property
 To indulge in acts of force or violence or to hold out threats of
intimidation against any workman with a view to preventing him
from attending work
 Thank You
Abhishek Tiwari
+91-7355659917
abhishekt691@gmail.com